To: ▇▇▇ ▇▇▇▇▇▇▇▇▇, Titan Corporation (Titan)
From: ▇▇▇ ▇▇▇▇▇, Charter Financial, Inc. (Charter)
Date: August 13, 1996
RE: Rider to Loan and Security Agreement No 2566 Dated December 29, 1995
(the Agreement) between The Titan Corporation d/b/a Titan Scan Systems
("Debtor") and Capital Associates International, Inc. ("Capital") and
assigned to Charter Financial, Inc. (Secured Party).
In consideration of your request to partially delay the funds due under the
above referenced Rider as a result of the sale of the electronics division, it
is agreed that Titan will wire transfer to Charter on August 14, 1996 the sum
of $460,000, which payment shall be applied as a prepayment of the 77th, 78th,
79th, 80th, 81st, and 82nd installments due under the Agreement, and a partial
prepayment of the 76th monthly installment due under the Agreement.
On September 2, 1996, Titan will issue in the name of Charter a letter of
credit in the amount of $300,000.
In the event that on or before November 15, 1996 Titan has raised $10 million
of Additional Capital, then the letter of credit of $300,000 issued to Charter
on September 2, 1996 will be reduced to $129,000.
In the event that Titan does not raise $10 million of Additional Capital by
November 15, 1996, then the letter of credit of $300,000 issued to Charter on
September 2, 1996 will be increased to $620,000 on or before November 15,
1996.
A formal Rider to the Loan and Security Agreement will be sent to you for
signature, reflecting the above changes to the original Rider which you agree
to sign.
Upon receipt by Charter of the wire transfer of $460,000 on August 14, 1996
and a signed copy of this memo by an authorized officer of Titan, Titan will
be in compliance through June 30, 1996 of the previously referenced Loan and
Security Agreement.
Very truly yours,
AGREED AND ACCEPTED
Titan Corporation d/b/a Titan Scan Systems
/s/
▇▇▇▇ ▇. ▇▇▇▇▇, ▇▇. BY: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
Executive Vice President TITLE: Sr. VP and CFO
DATE:
