Modifications to Business Financing Agreement. 1) The following defined terms in Section 12.1, entitled “Definitions”, are hereby amended or inserted as follows:
Modifications to Business Financing Agreement. 1) The following subsection is hereby added to Section 1:
Modifications to Business Financing Agreement. (i) Section 1.7 of the Business Financing Agreement is hereby amended in its entirety as follows:
Modifications to Business Financing Agreement. A. Section 4.15(a) is amended and restated in its entirety to read as follows:
(a) Quick Ratio, measured monthly of not less than 0.65 to 1.00 for each monthly measuring period from February 1, 2017 through December 31, 2017; and not less than 0.75 to 1.00 for each monthly measuring period on and after January 1, 2018.
B. Section 4.15(b)(ii) is amended and restated in its entirety to read as follows:
Modifications to Business Financing Agreement. A. Lender hereby accepts Borrowers’ financial projections for 2018 which were delivered to Lender prior to the date hereof, and the parties hereby acknowledge and agree that such projections shall be used to determine Borrowers’ compliance with Section 4.15(b) beginning with the period ending March 31, 2018.
B. Section 4.15(a) is amended and restated in its entirety to read as follows:
(a) Quick Ratio, measured monthly of not less than 0.60 to 1.00 for each monthly measuring period from February 1, 2018 through November 30, 2018; and not less than 0.70 to 1.00 for each monthly measuring period on and after December 1, 2018.
C. Section 4.15(b)(ii) is amended and restated in its entirety to read as follows:
Modifications to Business Financing Agreement. 1) Effective as of the date here of, the following defined terms in Section 1.1 are amended to read as follows:
Modifications to Business Financing Agreement i) Section 4.10 of the Business Financing Agreement is hereby deleted in its entirety and replaced with the following: “Maintain its primary depository and operating accounts with Lender and, in the case of any deposit accounts not maintained with Lender, grant to Lender a first priority perfected security interest in and “control” (within the meaning of Section 9104 of the California Uniform Commercial Code) of such deposit account pursuant to documentation acceptable to Lender. Notwithstanding the foregoing, Borrowers may maintain one account in the United Kingdom with NatWest Bank, provided that at no time shall the balance of such account exceed $50,000.”
ii) Section 4.15 of the Business Financing Agreement is hereby deleted in its entirety and replaced by the following:
Modifications to Business Financing Agreement. Borrower and Lender desire to amend the Business Financing Agreement whereby Lender will make Advances under this Agreement to Borrower in an aggregate amount of up to $2,000,000.00, provided that the aggregate amount of Advances under this Agreement and Formula Advances and Nonformula Advances under the Original Credit Agreement must not exceed $8,000,000.00 at any one time.
1) The following defined terms in Section 1.1 are hereby amended to read as follows:
Modifications to Business Financing Agreement i. Section 1.2 of the Business Financing Agreement is amended by adding the following sentence at the end thereof: Lender shall have no obligation to finance any Eligible Unbilled Receivable at any time (including at any time prior to the Unbilled Sublimit Termination Date), but may finance any Eligible Unbilled Receivables in its sole discretion.
ii. The following term and its definition set forth in Section 14.1 of the Business Financing Agreement are amended in their entirety and replaced with the following:
Modifications to Business Financing Agreement. 1) The defined term “Credit Limit” is hereby amended to read as follows:
