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EXHIBIT 10.4(E)
NORWEST BANKS Norwest Bank Texas, South Central
Post Office Box 2019 Austin, Texas 78768-2019
512/479-0011
September 30, 1997
Xxxx Van der Xxxxx
Surrey, Inc.
00000 Xxxxxx Xxx Xxxx
Xxxxxxx, XX 00000
Re: Line of Credit Loan Agreement
Gentlemen:
Your line of credit in the amount of $800,000.00 has been approved subject to
modification of your existing Loan Agreement. This letter serves to document
your agreement of modification to the SBA Authorization and Loan Agreement
executed by Xxx Xxxxxx on October 17, 1994 and your agreement to the Amendment
by my letter dated August 13, 1997.
This modification to the Loan Agreement consists of two covenants. The first
is officers' salaries are limited to $250,000.00 annually and the second is
financial covenants will be monitored quarterly. The financial covenants are
a) debt/worth ratio of less that 3.5:1, b) current ratio greater that 1.25:1,
c) minimum net worth requirement of $1,000M, and d) minimum DSCR of 1.25:1 on a
traditional cash flow basis. Please calculate these ratios and include on your
Borrowing Base Certificate. Availability under the line of $800,000 remains at
70% of eligible receivables less than 60 days old.
We appreciate your business and look forward to our continued association.
Regards,
/s/ Xxxx X. Xxxxxxx
Xxxx X. Xxxxxxx
Vice President
Agreed:
/s/ Xxxx van der Xxxxx /s/ Xxxxx van der Xxxxx
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Xxxx van der Xxxxx, President Xxxxx van der Xxxxx, Vice President
