May 5, 1998
Oregon Baking Company dba Xxxxxx Baking
0000 XX Xxxxxx
Xxxxxxxx, XX 00000
Attn: Xxxxxx Xxxxxxxxxx
RE: Letter of Credit Number SVB98IS0928
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Dear Mr. Wasserteil:
Reference is made to that certain Security Agreement (the "Security Agreement")
dated April 28, 1998 between Oregon Baking Company dba Xxxxxx Baking ("Xxxxxx")
and Xxxxxx Financial Leasing, Inc. ("Xxxxxx") and the related Promissory Notes
(the "Notes") executed by Xxxxxx" pursuant to which Xxxxxx agreed to provide
certain financing for Xxxxxx. Reference is further made to that certain Letter
of Credit dated MAY 11 , 1998 in favor of Xxxxxx in the amount of $325,000. Said
Letter of Credit serves as additional collateral to secure the financing
provided by Xxxxxx.
Xxxxxx has requested that Xxxxxx agree to a reduction of the principal amount of
the Letter of Credit and Xxxxxx has agreed to certain reductions as specified
below upon the following terms and conditions being met by Xxxxxx.
1. Provided Xxxxxx remits each of the first twelve monthly installments due
under the Notes on a timely basis, and provided that no default has occurred
during such time period under the Agreement or Notes, Xxxxxx will reduce the
Letter of Credit to $250,000.00.
2. Provided Xxxxxx remits each of the first twenty-four monthly installments due
under the Notes on a timely basis, and provided that no default has occurred
during such time period, under the agreement or Notes, Xxxxxx will reduce the
Letter of Credit to $75,000.00.
3. Provided Xxxxxx remits each of the first thirty-six monthly installments due
under the notes on a timely basis, and provided that no default has occurred
during such time period, under the Agreement or Notes, Xxxxxx will reduce the
Letter of Credit to $75,000.00.
4. Provided Xxxxxx remits each of the first forty-eight monthly installments due
under the Notes on a timely basis, and provided that no default has occurred
during such time period under the Agreement or Notes, Xxxxxx will return the
Letter of Credit.
5. Each Installment shall be deemed timely paid if received by Xxxxxx within
fifteen (15) days of the due date therefor. Any installment paid via check or
other instrument shall not be deemed timely paid, regardless of the date of
receipt of such check or other instrument, if the same shall not be timely
honored.
Notwithstanding the foregoing, nothing herein shall serve as a release of or an
agreement to release any other Collateral by Xxxxxx nor shall Xxxxxx be required
to look to the Letter of Credit before pursuing any other persons or any other
property that serves as Collateral for the financing provided by Xxxxxx.
If the foregoing is consistent with your understanding of our agreement, please
indicate your agreement in the place and manner provided below.
Sincerely
XXXXXX FINANCIAL LEASING, INC.
By: /s/ Xxxxx X. Xxxxxxxxx
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Xxxxx X. Xxxxxxxxx, Vice President
ACCEPTED AND AGREED:
OREGON BAKING COMPANY DBA XXXXXX BAKING
By /s/ Xxxxxx Xxxxxxxxxx
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Xxxxxx Xxxxxxxxxx, Secretary
