EXHIBIT 4.22
[LETTERHEAD OF SOUTHTRUST BANK]
March 26, 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 South Trust 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 reference 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 fiscal period
ending December 31, 2000.
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 December 31, 2000:
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; and
3. Breach of Financial Covenant to a Minimum Tangible Net Worth of $4,100,000;
and
4. Breach of Financial Covenant not to exceed Capital Expenditures purchases of
$1,600,000 for the fiscal year.
Except to the extent set forth herein, the Loan Agreement together with all
other documents
Color Imaging, Inc.
Financial Covenant Waiver
March 26, 2001
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 and remedies under the loan documents with respect to any
future defaults. In consideration of the foregoing, Borrower shall pay lender a
fee of $10,000.
/s/ Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
Group Vice President
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