Surge Components, Inc.
Exhibit 10.16
May 2, 2005
Surge Components, Inc.
00 Xxxx Xxxxxx Xxxx.
Xxxx Xxxx, XX 00000
Gentlemen:
Reference is made to the Financing Agreement entered into between us dated July 2, 2002, as amended and/or supplemented (the "Financing Agreement").
This will confirm that, effective May 1, 2005, the Financing Agreement is hereby amended as follows:
The following is added as the last sentence of Section 3.1:
"Notwithstanding the foregoing, Borrower agrees to pay to Lender each month interest (computed on the basis of the actual number of days elapsed over a year of 360 days) on the amount of Over-advance, if any, in the Loan Account during the preceding month, at a rate of three percent (3%) per annum in excess of the Effective Rate.
Except as hereinabove specifically set forth, the Financing Agreement shall continue unmodified.
| Very truly yours, | |||
| XXXXXXXXX & XXXXXXXXX, INC. | |||
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By:
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| AGREED: | Xxxxx X. Xxxxxxxxxxxx | |||
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Senior Vice President
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| SURGE COMPONENTS INC. | ||||
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