[GRAPHIC OMITTED]
January 7, 1997
Xxxxx Xxxxxxx
XX Xxxxxxx & Company, Inc.
1999 Avenue of the Stars #1950
Los Angeles, CA 90067
RE: AMENDMENT TO LOAN AGREEMENT AND PROMISSORY NOTE WITH PREFERRED TELECOM, INC.
Dear Xx. Xxxxxxx:
Pursuant to our discussions, this letter will serve as confirmation of our
agreement to amend the prior Loan Agreement and Promissory Note entered into by
and between Bisbro Investments Company Ltd. ("Bisbro") and Preferred Telecom,
Inc. ("Preferred"), dated November 12, 1996 ("Loan Agreement" and "Note").
For and in consideration of the additional $50,000 contributed by First Capital
Financial Services Corporation ("First Capital"), Preferred and Bisbro hereby
consent and agree that all references to the loan amount of $100,000 shall be
amended to read "$150,000" and said $50,000 contribution will be governed by the
same Loan Agreement and Note as referred to above, and First Capital will be
granted the same rights proportionately thereof, including but not limited to a
proportionate share of the rights in the collateral, and warrants issued
pursuant thereto.
This letter will also acknowledge and confirm that the Secured Promissory Note
dated December 1, 1996 in the amount of $50,000 is canceled and superseded by
this letter, and that the Loan Agreement now consists of a total obligation by
Preferred to Bisbro and First Capital in the total amount of $150,000 plus
applicable interest, options and warrants, in consideration for $100,000
tendered on November 12, 1996, and $50,000 on December 27, 1996.
Very truly yours,
Xxxx X. Xxxxxx
AGREED AND ACCEPTED:
Bisbro Investments Company Ltd. Preferred Telecom, Inc.
Xxxxx Al-Rezaihan Xxxxxx X. Xxxxx, President & C.O.O.
G. Xxx Xxxxxx, Chairman & C.E.O.
0000 XXXX XXXXXXXX XXXXXX x XXXXX 000 x XXXXXXXXX o COLORADO o 80112
PHONE 000.000.0000 o FAX 000.000.0000 CORPDAL:61691.1 26287-00001
