First Modification to Security Agreement
This First Modification to Security Agreement (this "Modification") is entered
into by and between BrightStar Information Technology Services, Inc. and
BrightStar Information Technology Group, Inc. ("Borrower") and BFI Business
Finance ("Lender") as of this 10th day of November 2003, at San Jose,
California.
RECITALS
A. Lender and Borrower have previously entered into or are concurrently herewith
entering into a Security Agreement (the "Agreement") dated December 16, 2002.
B. Lender and Borrower may have previously executed one or more Modifications to
Security Agreement (the "Previous Modification(s)").
C. Borrower has requested, and Lender has agreed, to modify the Agreement as set
forth below.
AGREEMENT
For good and valuable consideration, the parties agree as set forth
below:
1. Incorporation by Reference. The Agreement and the Previous
Modification(s), if any, as modified hereby and the Recitals are
incorporated herein by this reference.
2. Effective Date. The terms of this Modification shall be in full
force and effect as of October 31, 2003.
3. Modification to Agreement. The Agreement is hereby modified to
amend and restate the section(s) referenced below:
Section 3. Advances hereunder shall bear interest, on the
average daily outstanding balance, at the rate of Four
percentage point(s) (4.0%) per annum over and above the rate
announced as the "prime" rate in the Western Edition of the
Wall Street Journal which is in effect from time to time (the
"Prime Rate"); provided that the Prime Rate shall at all times
be deemed to be not less than four and one quarter percent
(4.25%) per annum (the "Deemed Prime Rate") and provided that
the minimum amount of interest payable together with the
Administrative Fees as defined in paragraph 4 hereof shall in
no event be less than Two Thousand Three Hundred Seventy Five
and 00/100 Dollars ($2,375.00) per month (the "Minimum Monthly
Interest Payment"). In the event that the Prime Rate is
changed, the adjustment in the interest rate charged shall be
made on the day such change occurs. The Prime Rate is a rate
used by certain financial institutions as one of their index
rates and serves as a basis upon which effective rates of
interest are calculated for loans making reference thereto and
may not be the lowest of such financial institutions' index
rates. Interest shall be computed on the basis of a 360-day
year for the actual number of days elapsed. Interest shall be
due and payable monthly on the first day of each month, and if
not so paid, shall bear interest at the rate hereinabove
specified. At Lender's option, accrued interest may be charged
as an Advance under this Agreement. Notwithstanding anything
to the contrary contained in this Agreement, no payment made
by check shall be deemed made until three (3) business days
after receipt thereof by Lender, to allow for and subject to,
clearance of such checks.
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Section 39. Intentionally left blank.
4. Fee. At the time of execution of the Modification, Borrower agrees
to pay a one-time fee in the amount of ----------N/A----------.
5. Legal Effect. Except as specifically set forth in this
Modification, all of the terms and conditions of the Agreement
remain in full force and effect.
6. Integration. This is an integrated Modification and supersedes all
prior negotiations and agreements regarding the subject matter
hereof. All amendments hereto must be in writing and signed by the
parties.
IN WITNESS WHEREOF, the parties have executed this First Modification to
Security Agreement as of the date first set forth above.
BFI Business Finance BrightStar Information Technology Services, Inc
--------------------- ------------------------
By: Xxxxx Xxxxxx By: Xxxxxx X. Xxxxx
Its: President Its: C.E.O.
BrightStar Information Technology Group, Inc
--------------------------------------------
By: Xxxxxx x. Xxxxx
Its: C. E.O.
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