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EXHIBIT 10.26
Comerica Bank-California 00 Xxxx Xxxxxxx Xxxx
Xxx Xxxx, Xxxxxxxxxx 00000
(000) 000 0000
MODIFICATION TO LOAN & SECURITY AGREEMENT
This Second Modification to Revolving Loan & Security Agreement (this
Modification") is entered into by and between Versant Object Technology
Corporation ("Borrower") and Comerica Bank-California ("Bank") as of this 11th
day of August, 1998 at San Jose, California.
RECITALS
A. Bank and Borrower have previously entered into or are concurrently
herewith entering into a Revolving Loan & Security Agreement (Accounts &
Inventory) (the "Agreement") dated May 15, 1997.
B. Borrower has requested, and Bank has agreed, to modify the Agreement
as set forth below.
AGREEMENT
For good and valuable consideration, the parties agree as set forth below:
Incorporation by Reference The Agreement as modified hereby and the
Recitals are incorporated herein by this reference.
Section 1.12
(c) Accounts with respect to which the
account debtor is not a resident of
the United States, allowing 80% and up
to $2,000,000.00 advance against
Foreign Accounts Receivable include
FCIA insurance, subject to new equity
raised.
Section 6.17b Tangible Effective Net Worth in
an amount not less than $7,000,000.00,
to increase by 50% of quarterly net
profit after tax and 100% of any
equity and subordinated debt raised.
Section 6.17d a quick ratio of cash plus securities
plus Receivables to Current
Liabilities of greater than 1.30:1.00.
Section 6.17e a ratio of Total Liabilities
(less debt subordinated to Bank) to
Tangible Effective Net Worth of less
than 1.30:1.00.
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Section 6.17f a ratio of Cash Flow to Fixed Charges
is suspended until March 31, 1999.
Section 6.17m Operating Profit of greater than
($2,000,000.00) for quarter ending
September 30, 1998; greater than
($500,000.00) for quarter ending
December 31, 1998, including
write-offs for Soft Mountain
acquisition up to $1,500,000.00.
Section 6.17n Minimum $5,000,000.00 new Equity to be
raised by September 15, 1998
Legal Effect. Except as specifically set forth in this Modification, all of
the terms and conditions of the Agreement remain in full force and effect.
Integration This is an integrated Modification and supersedes all prior
negotiations and agreements regarding the subject matter hereof. All amendments
hereto must be in writing and signed by the parties.
IN WITNESS WHEREOF, the parties have agreed as of the date first set forth
above.
BORROWER:
VERSANT OBJECT TECHNOLOGY CORPORATION COMERICA BANK-CALIFORNIA
BY. BY.
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TITLE: CFO TITLE: XXXX XXXXXX, VICE PRESIDENT
