EXHIBIT 4.23
[LETTERHEAD OF [Logo for SouthTrust Bank]
SOUTHTRUST BANK]
May 8, 2001
Xx. Xxxxxx X. Xxx Xxxxxxx
CFO
Color Imaging, Inc.
0000 Xxxxxxxxx Xxxxxxxxxx Xxxx.
Xxxxx 000
Xxxxxxxx, Xxxxxxx 00000
RE: Loan and Security Agreement (the "Loan Agreement") dated as of May 5,
2000, as amended, among SouthTrustBank ("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 referenced Loan Agreement. All capitalized terms used
herein shall have the same meanings as set forth in the Loan Agreement.
Borrower has requested Lender to waive the right to exercise Lenders remedies
under the Loan Documents in regard to Borrower's violation of certain financial
covenants contained in Article VI of the Loan Agreement for the quarter ended
March 31, 2001.
Lender, 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 March 31, 2001:
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 maintain a minimum Tangible Net Worth of
$4,100,000; and
4. Breach of Financial Covenant to maintain a maximum Debt to Tangible Net
Worth of 3.50:1.0.
Color Imaging, Inc.
Financial Covenant Waiver
May 8, 2001
Except to the extent set forth herein, the Loan Agreement together with all
other documents 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 its rights and remedies under the loan
documents with respect to any future defaults.
/s/ Xxxxxxx X. Xxxxxxx
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Xxxxxxx X. Xxxxxxx
Group Vice President
