Exhibit 4.24
[LETTERHEAD OF SOUTHTRUST BANK]
August 13, 2001
Xx. Xxxxxx X. Xxx Xxxxxxx
CFO
Color Imaging, Inc.
0000 Xxxxxxxxx Xxxxxxxxxx Xxxx.
Suite 100
Norcross, Georgia 30071
RE: Loan and Security Agreement (the "Loan Agreement") dated as of May 5,
2000, as amended, among SouthTrust Bank ("Lender") and collectively as
"Borrower", Color Image, Inc., Color Imaging, Inc., Logical Imaging
Solutions, Inc. and Alorex Corp.
Dear Van:
Please refer to the above referenced Loan Agreement. All capitalized terms used
herein shall have the same meanings as set forth in the Loan Agreement.
Xxxxxxxx has requested Xxxxxx to waive the right to exercise Lenders remedies
under the Loan Documents in regard to Xxxxxxxx's violation of certain financial
covenants contained in Article VI of the loan Agreement for the quarter ended
June 30, 2001.
Xxxxxx, subject to the terms of this letter, agrees to waive the right to
exercise its remedies solely for the following covenant defaults (collectively,
the "Specified Defaults") occurring as of June 30, 2001:
1. Breach of Financial Covenant to maintain a minimum Fixed Charge Ratio of
1.20:1; and
2. Breach of Financial Covenant to maintain a maximum ratio of Funded Debt to
EBITDA of not more than 4.0:1.
Except to the extent set forth herein, the Loan Agreement together with all
other documents remain in full force and effect without amendment or waiver.
Further, this waiver constitutes a waiver of the specific violations and dates
listed herein and does not constitute a waiver of any future violations of the
Loan Agreement. The bank retains its rights and remedies under the loan
documents with respect to any future defaults.
Color Imaging, Inc.
Financial Covenant Waiver
August 13, 2001
/s/ Xxxxx X. Xxxxx
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Xxxxx X. Xxxxx
Commercial Loan Officer
[LOGO] SouthTrust Bank, N.A.
