July 5, 1996
Greyrock Business Credit,
a Division of NationsCredit Commercial Corporation
000 X. Xxxxxxxxxxx Xxxx. Suite 200
El Segundo, CA 90245
Gentlemen:
Reference is made to the Loan and Security Agreement between us (the "Loan
Agreement") and the documents and agreements relating thereto (collectively, the
"Loan Documents").
Based on the environmental reports we provided to you with respect to the
real property subject to the Deeds of Trust in your favor, and the analysis
thereof by your environmental consultant, it appears that certain remedial
environmental work is needed. You have also requested that we provide you with
a Hazardous Substances Indemnity Agreement on your standard form.
In order not to hold up the closing of the Loan pursuant to the Loan
Documents, this will confirm that you may withhold a reserve, from the Loans
that would otherwise be available to us under the Loan Documents, in the amount
of $65,000, which reserve will be held until we have completed the remedial work
recommended by your consultant. We will also provide you with the Hazardous
Substances Indemnity Agreement within ten days after the date hereof, with any
changes thereto as you and we may negotiate in good faith.
Sincerely yours,
QAD, INC.
By
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Title
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Accepted and agreed:
GREYROCK BUSINESS CREDIT,
a Division of NationsCredit Commercial Corporation
By
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