Exhibit 10.35
AMENDMENT TO BUSINESS LOAN AGREEMENT
This Agreement is made between Bank of America National Trust and Savings
Association, doing business as Seafirst Bank ('Bank"), and Data 1/0 Corporation,
a Washington Corporation ('Borrower"). Bank and Borrower are parties to a
Business Loan Agreement dated May 14, 1996, as amended on May 13, 1997 and May
29, 1998, and wish to make certain revisions to their loan arrangements as set
forth in that Agreement. Upon execution hereof, that Agreement shall be amended
as follows effective immediately:
Part A: Total Amount Available is hereby amended as follows
The maximum amount Borrower may borrow, repay and reborrow shall be
decreased to Four Million Dollars ($4,000,000.00) from the previous maximum
amount of Eight Million Dollars ($8,000,000.00).
Part A: Interest Rate is hereby amended as follows
The spread over the adjusted LIBOR rate shall be increased to 2.50% from
1.10%.
Part B, Section 3.9 is hereby amended to list Borrower's chief place of business
as follows:
Data 1/0 Corporation
00000 Xxxxxxx Xxxx X. X.
P. 0. Xxx 00000
Xxxxxxx, XX 00000-0000
Part 8, Section 4.2 is hereby amended in its entirety as follows:
Maintain quick assets in an amount at least equal to 1. 1 0 times current
liabilities. Quick assets shall be defined as current assets less total
inventory. Current assets and current liabilities shall be determined in
accordance with generally accepted accounting principles and practices,
consistently applied;
Part B, Section 4.3 is hereby amended as follows.
The minimum amount of tangible net worth shall be reduced to $15,000,000
from $25,000,000.
Part B, Section 4.15 is hereby amended as follows:
The minimum amount of Liquidity shall be increased to $6,000,000 from
$3,000,000.
Part B, Section 5.2 is hereby added in its entirety as follows:
Borrower will not, without the prior written consent of Bank, mortgage,
assign, or otherwise encumber any of Borrowee's assets, nor sell, transfer
or otherwise hypothecate any such assets except in the ordinary course of
business. For purposes of this paragraph, the sale or assignment of
accounts receivable, or the granting of a security interest therein, shall
be deemed the incurring of indebtedness for borrowed money;
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Part B, Section 5.5 is hereby added in its entirety as follows:
Borrower will not, without the prior written consent of Bank, make any loan
or advance to any person(s) or purchase or otherwise acquire the capital
stock, assets or obligations of, or any interest in, any person, except:
(a) commercial bank time deposits, (b) marketable general obligations of
the United States or a State, or marketable obligations fully guarantied by
the United States, (c) short-term commercial paper with the highest rating
of a generally recognized rating service, and (d) other investments related
to the Borrowee's business which do not, in the aggregate, exceed the sum
of $4,500,000 during the fiscal year 1999 or any year thereafter;
Except as specifically set forth herein, all provisions of the Agreement remain
in full force and effect.
This Amendment to Business Loan Agreement is executed by the parties on this
31day of December, 1998.
SEAFIRST BANK
Western Commercial Banking Division
By: //S//XXXXXX X. XXXXX
Xxxxxx X. Xxxxx
Vice President
DATA 1/0 CORPORATION
By: //S//XXXX X. XXXXXX
Xxxx X. Xxxxxx
Vice President & Chief Financial Officer
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