Marine Midland Bank [LOGO]
▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
University-▇▇▇▇▇▇ Office
March 27, 1998
▇▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Four Corners Financial Corporation
▇▇ ▇▇▇▇ ▇▇▇▇ ▇▇.
▇▇▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
RE: Waiver Covenants
Dear ▇▇. ▇▇▇▇▇▇▇▇:
We refer to a 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 financial
covenants for the period ending December 31, 1997.
Working Capital: The requirement for working capital was $20,000 actual
($41,569).
Current Ratio: The required ratio of current assets to current liabilities is
1.1, actual .96.
Liabilities to Tangible Net Worth: Required ratio was 1.90, actual 4.1.
Capital Expenditures not to exceed $25,000, actual expended $35,407.
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 the Agreement shall be deemed a
waiver of any other breach or default.
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ Member HSBC Group
March 27, 1998
Page 2
Kindly execute and return to the Bank as soon as possible, an acknowledgement of
this letter which will be become effective upon Banks receipt of such
acknowledgement.
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ (PRP)
--------------------------------
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
Vice President and Manager
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
--------------------------------
▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
Executive Vice President
Four Corners Financial Corporations
RM/sab
