April 23, 2007
Exhibit 10.6
April 23, 2007
Xx. Xxxxx X. Xxxxxxxx
President and Chief Executive Office
Xx. Xxxxx Xxxxx
Vice President and Chief Financial Officer
Iridex Corporation
0000 Xxxxx Xxxxx
Xxxxxxxx Xxxx, XX 00000-0000
President and Chief Executive Office
Xx. Xxxxx Xxxxx
Vice President and Chief Financial Officer
Iridex Corporation
0000 Xxxxx Xxxxx
Xxxxxxxx Xxxx, XX 00000-0000
Re: BUSINESS LOAN AND SECURITY AGREEMENT (the “Domestic Agreement”) dated as of January 16, 2007,
and EXPORT-IMPORT BANK LOAN AND SECURITY AGREEMENT (the “Exim Agreement”) dated as of January 16,
2007
Dear Xxxxx and Xxxxx:
As required by the terms of each of the Domestic Agreement and the Exim Agreement between Iridex
Corporation (“Borrower”) and Mid-Peninsula Bank, part of Greater Bay Bank N.A. (“Bank”), the
following covenants had not been met as of March 31, 2007:
• | Minimum Tangible Net Worth Requirement. Section 8.5(b) of the Domestic Agreement, and Section 6.8(a) of the Exim Agreement both require that Borrower have a minimum Tangible Net Worth of not less than $15,500,000.00 measured as of March 31, 2007. | ||
• | Minimum Debt Service Ratio. Section 8.5(c)(2) of the Domestic Agreement, and Section 6.8(c)(ii) of the Exim Agreement both require that Borrower maintain a Debt Service Ratio of 1.750 to 1.000 to be measured quarterly on a year-to-date basis beginning at March 31, 2007. |
Bank hereby waives the default under each of the Domestic Agreement and the Exim Agreement
resulting from Borrower’s non-compliance at March 31, 2007, with the minimum Tangible Net Worth
covenants referenced above, and further waives the default under each of the Domestic Agreement and
the Exim Agreement resulting from Borrower’s non-compliance for the year-to-date period ended March
31, 2007, with the minimum Debt Service Ratio covenants referenced above.
Please note that the Bank’s decision does not constitute a waiver of any other breach of any other
provisions of either of the Domestic Agreement or the Exim Agreement, or any subsequent breach of
either of the above-described covenants, and the Bank reserves all rights and remedies available to
the Bank.
Sincerely,
/s/ Xxxxx Xxxxx
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Xxxxx Xxxxx Senior Vice President |