Exhibit 10.22
May 15, 2000
Xx. Xxxxxxx Xxxxxxxxx
Transgenomic Inc
0000 X 00 Xx
Xxxxx, XX 00000
Dear Xxxx:
First National Bank of Omaha officially waives Transgenomic's non-compliance
with the following covenants as defined in the Loan Agreement dated March 8,
2000, as amended from time to time, as of the company's quarterly statement
dated March 31, 2000:
1. Covenant requiring Borrower to maintain a maximum Debt to Tangible Net
Worth of not more than 1.5:1.0. As of 3-31-2000 the company's Debt to
Tangible Net Worth was 1.87:1.0.
2. Covenant requiring Borrower to maintain a minimum Working Capital of
$3,000,000. As of 3-31-2000 the Borrower's Working Capital was
$2,643,493.
3. Covenant requiring Borrower to maintain Borrowing Base in excess of
balance due Bank. The Borrower exceeded the Borrowing Base by
$295,431.
This waiver is based on the Borrower's internally prepared March 31, 2000
balance sheet and operating statement. This letter does NOT waive Borrower's
obligation to perform any other covenants or requirements contained in the said
Loan Agreement, nor does it constitute a waiver of the above covenants for any
future date. The above waiver is limited to the compliance measured as to the
above covenants, as of March 31, 2000.
Sincerely,
/s/ Xxxx XxXxxxxx
Vice President
