Amendment to Loan Agreement
Borrower: Pilot Network Services, Inc.
Address: 0000 Xxxxxx Xxxxxxx Xxxxxxx
Xxxxxxx, Xxxxxxxxxx 00000
Date: January 9,2001
THIS AMENDMENT TO LOAN AGREEMENT is entered into between GREYROCK CAPITAL.
a Division of Banc of America Commercial Finance Corporation ("Greyrock"), whose
address is 00000 Xxxxxxxx Xxxx., Xxxxx 0000, Xxx Xxxxxxx, XX 00000 and
the borrower named above ("Borrower").
The Parties agree to amend the Loan and Security Agreement between them,
dated November 9, 1999 (the "Loan Agreement") as follows. (This Amendment, the
Loan Agreement, all prior written amendments to the foregoing, signed by
Greyrock and the Borrower, and all other written documents and agreements
between Greyrock and the Borrower are referred to herein collectively as the
"Loan Documents". Capitalized terms used but not defined in this Amendment,
shall have the meanings set forth in the Loan Agreement.)
1. Modification to Financial Covenant. Section 8 (2) of the Schedule to
the Loan Agreement, which presently reads:
"(1) Cash on Hand. Borrower shall maintain cash on hand of not
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less than the following amounts at the following dates, and shall
provide evidence of the same to Greyrock, reasonably satisfactory to
Greyrock, by the said dates:
at 10/31/00: $4,250,000
at 11/17/00: $4,500,000
at 11/30/00: $4,500,000
at 12/15/00: $4,500,000
at 12/31/00: $3,750,000
at 01/12/01: $4,000,000
at 01/31/01: $3,500,000."
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Greyrock Capital Amendment and Extension Agreement
__________________________________________________________
is amended to read as follows:
"(1) Cash on Hand. Borrower shall maintain cash on hand of not
---------------
less than the following amounts at the following dates, and shall
provide evidence of the same to Greyrock, reasonably satisfactory to
Greyrock, by the said dates:
at 10/31/00: $4,250,000
at 11/17/00: $4,500,000
at 11/30/00: $4,500,000
at 12/15/00: $4,500,000
at 12/31/00: $2,250,000
at 01/12/01: $2,750,000
at 01/31/01: $2,500,000."
2. Representations True. Borrower represents and warrants to Greyrock
that all representations and warranties set forth in the Loan Agreement, as
amended hereby, are true and correct.
3. General Provisions. This Amendment, the Loan Agreement, the Note,
and the other Loan Documents set forth in full all of the representations and
agreements of the parties with respect to the subject matter hereof and
supersede all prior discussions, representations. agreements and understandings
between the parties with respect to the subject hereof. Nothing herein
constitutes a waiver of any default or Event of Default, known or unknown which
may exist. Except as herein expressly amended, all of the terms and provisions
of the Loan Agreement, the Note and the other Loan Documents shall continue in
full force and effect and the same are hereby ratified and confirmed.
Borrower: Greyrock:
PILOT NETWORK SERVICES, INC. GREYROCK CAPITAL,
a Division of Banc of America Commercial
Finance Corporation
By /S/ Xxxxxxxx Xxxxxxx
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President or Vice President
By /S/ Xxxxxxxxx Wail
---------------------------------
By /S/ Title VP
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Secretary or Ass't Secretary
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