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EXHIBIT 10.24
[Union Bank of California letterhead]
Commercial Markets Group
July 16, 1999
Xx. Xxxxx Xxxxxx
President
Ever-tek Computer Corporation
0000 Xxxxxx Xxxxxxx Xx.
Xxxxxxxxx, XX 00000
Re: Fifth Amendment ("Amendment") to the Business Loan Agreement
dated September 15, 1998 (all prior Amendments, this
Amendment, and the Fifth Agreement together called the
"Agreement")
Dear Xxxxx:
In reference to the Agreement defined above between Union Bank of California,
N.A. ("Bank") and Evertek Computer Corporation ("Borrower"), the Bank and
Borrower desire to amend the Agreement and waive a breach of the Agreement.
Capitalized terms used herein which are not otherwise defined shall have the
meaning given them in the Agreement.
1. Amendments to the Agreement
(a) Section 1.5 Subordination of the Agreement is hereby added
in its entirety as follows: "Certain other obligations of
Borrower are and shall be during the term of the Loan
subordinated, to the repayment of the Loan and all other
obligations of Borrower to Bank, pursuant to one or more
subordination agreements in favor of Bank executed and
delivered by: Xxxxx Xxxxxx."
2. Waiver
(a) Bank hereby waives Borrower's breach of section 4.1
(a) Quick Ratio of the Agreement occurring prior to
July 1, 1999. Any further breach of the Section is
not waived.
(b) Bank hereby waives Borrower's breach of section 4.1
(c) Total Liabilities to Tangible Net Worth of the
Agreement occurring prior to July 1, 1999. Any
further breach of the Section is not waived.
Except as specifically amended hereby, the Agreement shall remain in full force
and effect and is hereby ratified and confirmed. This Amendment and Waiver
shall not be a waiver of any existing or future default or breach of a
condition to covenant and unless specified herein.
This Amendment shall become effective when the Bank shall have received the
acknowledgment copy of this Amendment and Waiver executed by the Borrower all
of which must be received before July 31, 1999.
Very truly yours,
UNION BANK OF CALIFORNIA, N.A.
By: (illegible)
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Title: Vice President
Agreed and Accepted to this ___ day of July, 1999.
Evertek Computer Corporation
By: Xxxxx Xxxxxx
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Title: President
