August 13, 2003 David E. Pertl, Senior Vice President & Chief Financial Officer Fresh Choice, Inc.
Exhibit 10.63
August 13, 2003
Xxxxx X. Xxxxx, Senior Vice President & Chief Financial Officer
Fresh Choice, Inc.
000 Xxxxxxxx Xxxxxx
Xxxxxx Xxxx, Xx 00000
Dear Xxxxx,
In response to your recent request, Mid-Peninsula Bank, subject to your acceptance and acknowledgement, hereby agrees to amend our Commercial Deed Of Trust, Financing Statement, Security Agreement and Fixture Filing (with Assignment Of Rents and Leases) dated August 13, 2001, as follows:
• Section 10.3 Minimum Ratio.
Trustor shall maintain a ratio, as of the end of each fiscal year of Trustor, of (x) the amount of Trustor’s annual Net Income adjusted to exclude any non-cash income and to exclude expenses for interest, taxes, depreciation, amortization, asset impairment, and restaurant opening costs; less the amount of dividends and distributions paid to shareholders of Trustor, to (y) the amount of the current portion of long-term obligations plus the amount of the annual interest expense for the fiscal year, that is equal to or greater than 2.00 to 1. Except as provided above, all computations made to determine compliance with the requirements contained in this paragraph shall be based on Trustor’s most recent annual financial statements, and shall be made in accordance with generally accepted accounting principles, applied on a consistent basis, and certified by Trustor as being true and correct.
Please sign and return the acknowledgement copy to this letter to me to confirm your acceptance of the above modifications on behalf of Fresh Choice, Inc. In addition, your acknowledgement will confirm to Mid-Peninsula Bank that, except as expressly changed by this agreement, the terms of the original obligations of Fresh Choice, Inc. to Mid-Peninsula Bank, including all agreements evidencing or securing the obligations, remain unchanged and in full force and effect.
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Sincerely, |
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/s/ Xxx Xxxxxxxx |
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Xxx Xxxxxxxx |
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Senior Vice President |
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Acknowledged and Accepted by: |
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Fresh Choice, Inc. |
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By: |
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/s/ Xxxxx X. Xxxxx |
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Xxxxx X. Xxxxx, Senior Vice President & Chief Financial Officer |
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