Exhibit 10.4
July 10, 0000
X.X. Xxxxxxx Xxxxxx, Ltd.
0000 Xxxxxx Xxxx, Xxxxx 000 Xxxx
Xxxx Xxxxx, Xxxxxxx 00000
Attn: Xxxx Xxxxxxxxx, CEO
Re: Notice of Event of Default under Loan and Security Agreement
Dear Xx. Xxxxxxxxx:
Reference is made to the Loan and Security Agreement dated as
of December 19, 2002 (as amended, restated, supplemented and modified from time
to time, the "Loan Agreement") between U.S. Plastic Lumber, Ltd., a Delaware
corporation ("Company"), and Guaranty Business Credit Corporation, a Delaware
corporation ("GBCC"). Terms used herein with initial capital letters, to the
extent not otherwise defined herein, shall have the meanings given in the Loan
Agreement.
Notice is hereby given that one or more Events of Default
exist and are continuing due to Company's failure to comply with the terms and
conditions of: (a) the Company's failure to maintain Senior Debt Service
Coverage for the month of May, 2003 as required by Section 7.3 of the Loan
Agreement and (b) the Company's failure to maintain Total Debt Service Coverage
for the month of May, 2003 as required by Section 7.4 of the Loan Agreement
As a result of these Events of Default, GBCC reserves the
right to resort to all remedies available under the Loan Agreement and at law,
including without limitation terminating the Loan Agreement and declaring all
Obligations immediately due and payable. Any forbearance by GBCC in immediately
exercising such rights and remedies shall not constitute a waiver or
modification thereof.
Please call me if you wish to discuss the foregoing.
Very truly yours,
Guaranty Business Credit Corporation
Xxxx Xxxxxxx
cc: U.S. Plastic Lumber Corp.
0000 Xxxxxx Xxxx, Xxxxx 0000
Xxxx Xxxxx, XX 00000
U.S. Plastic Lumber Finance Corporation
0000 Xxxxxx Xxxx, Xxxxx 0000
Xxxx Xxxxx, XX 00000
U.S. Plastic Lumber IP Corporation
0000 Xxxxxx Xxxx, Xxxxx 0000
Xxxx Xxxxx, XX 00000
