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Exhibit 10.21
[UNION BANK OF CALIFORNIA LOGO]
May 26, 1999
Xxxxx Xxxxxx
President
Ever-tek Computer Corporation
0000 Xxxxxx Xxxxxxx Xx.
Xxxxxxxxx, XX 00000
Dear Xxxxx:
Re: Third Amendment ("Amendment") to the Business Loan Agreement dated
September 15, 1998 (all prior Amendments, this Amendment, and the Business
Loan Agreement together called the "Agreement")
Dear Xxxxx:
In reference to the Agreement between Union Bank of California, N.A.
("Bank") and Ever-tek Computer Corporation ("Borrower"), the Bank and Borrower
desire to amend the Agreement. Capitalized terms used herein which are not
otherwise defined shall have the meaning given them in the Agreement.
Amendments to the Agreement
(a) Section 4.1 (b) Tangible Net Worth of the Agreement is hereby amended
by substituting the amount of "$2,400,000" for the amount of "$3,000,000".
(b) Section 4.1 (c) Total Liabilities to Tangible Net Worth of the
Agreement is hereby amended by substituting the ratio of "1.25:1" for the
ratio of "1.0:1".
(c) Section 4.1 (a) Quick ratio of the Agreement is hereby amended by
substituting the ratio of "0.47:1 increasing to 1.0:1 by June 30, 1999" for
the ratio of "1.0:1".
(d) Section 4.16 of the Agreement is hereby amended by substituting the
amount of "$200,000" for the amount of "$25,000".
(e) Section 4.17 of the Agreement is hereby amended by substituting the
amount of "$175,000" for the amount of "$25,000".
Except as specifically amended hereby, the Agreement shall remain in full
force and effect and is hereby ratified and confirmed. This Amendment shall not
be a waiver of any existing or future default or breach of a condition or
covenant unless specified herein.
This Amendment shall become effective when the Bank shall have received
the acknowledgment copy of this Amendment executed by the Borrower on or before
June 10, 1999.
Very truly yours,
UNION BANK OF CALIFORNIA, N.A.
By: /s/ Xxxxxxx Xxxxxxxx
-----------------------------
Title: Vice President
Agreed and Accepted to this ______ day of _____, 1998.
Ever-tek Computer Corporation
By: /s/ Xxxxx Xxxxxx
-----------------------------
Title: President
