Marine Midland Bank
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Business Lending Center
March 21, 1997
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Four Corners Financial Corporation
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RE: Waiver Covenants
Dear ▇▇. ▇▇▇▇▇▇▇▇:
We refer to that certain Revolving Credit and Term Loan Agreement (The
Agreement), dated December 13, 1995, between Marine Midland Bank (The "Bank")
and Four Corners Financial Corporation (The Borrower). Unless otherwise defined
herein, the terms defined in the Agreement are used herein as therein defined.
The Borrower hereby requests that the Bank waive the following covenants for the
period ending December 31, 1995:
Working Capital: The requirement for working capital was $20,000, actual
($116,812).
Current Ratio: The required ratio of current asset to current liabilities of
1.1, actual .84.
Tangible Net Worth: The required tangible net worth was $400,000, actual
$350,823.
Liabilities to Tangible Net Worth: Required ratio was 1.90, actual 2.49.
Net Income: Required net income was $110,000, actual $85,718.
Debt Service Ratio: The required ratio ws 1.75, actual 1.74.
March 21, 1997
Page 2
We understand that this waiver is effective only in this instance and for the
purpose for which it is given. All other terms and conditions in the Agreement
continue to remain in full force and effect. We further understand that no
waiver of any single breach of default under this Agreement shall be deemed a
waiver of any other breach or default.
Kindly execute and return to the Bank as soon as possible, an acknowledgement of
this letter which will become efective upon Banks receipt of such
acknowledgement.
By: /s/ ▇▇▇▇▇ Mastradonato
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▇▇▇▇▇ Mastradonato
Vice President
and Manager
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Executive Vice President
Four Corners Financial Corporation
RM/sab
