EXHIBIT 10.17
AMENDMENT TO BUSINESS LOAN AGREEMENT
This Amendment to Business Loan Agreement and Master Revolving Note (this
"Amendment"), effective as of October 13, 2000, is entered into by and between
Comerica Bank-California ("Bank") and Taitron Components Incorporated, a
California corporation ("Borrower").
Bank and Borrower are parties to that certain Business Loan Agreement dated
as of May 6, 1997 (as heretofore amended, together with the Addendum attached to
and made a part thereof, the "Business Loan Agreement"). In connection with the
Business Loan Agreement, Borrower entered into that certain Master Revolving
Note dated May 6, 1997 in the maximum principal amount of $16,000,000 (the
"Revolving Note") and that certain Addendum to Master Revolving Note dated as of
May 6, 1997 (the "Note Addendum").
Borrower has requested, and Bank has agreed, to make certain amendments to
the Business Loan Agreement, as set forth below.
For good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Bank and Borrower agree as follows:
1. Section 2(a) of the Addendum to the Business Loan Agreement is hereby
amended and restated to read in full as follows:
(a) Tangible Effective Net Worth in an amount not less than (i)
$25,350,000 at any time prior to December 31, 2000 and (ii) from and after
December 31, 2000, the sum of $25,350,000 plus 100% of net income for each
fiscal year, commencing with fiscal year 2000 (net income being determined
in accordance with GAAP, but excluding stock repurchases and dividends,
provided that in no event shall such net income be deemed to be less than
zero).
2. Section 2(b) of the Addendum to the Business Loan Agreement is hereby
amended and restated to read in full as follows:
(d) A ratio of Current Assets to Current Liabilities of not less than
2.0 : 1.0.
3. Bank hereby waives any Default or Event of Default to the extent
arising solely under Section 8(m) of the Business Loan Agreement by virtue of
having repaid the outstanding indebtedness under the Subordinated Note prior to
the date hereof.
4. Borrower and Bank hereby affirm that each of the Business Loan
Agreement, the Revolving Note and the Note Addendum remains in full force and
effect without modification except as expressly provided in this Amendment.
IN WITNESS WHEREOF, Borrower and Bank have duly executed and delivered this
Amendment as of the date first written above.
TAITRON COMPONENTS INCORPORATED COMERICA BANK-CALIFORNIA
By: /s/ Xxxxxxx Xxxx By: /s/ Xxxxx Xxxxx
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