AMENDMENT TO
LOAN AGREEMENT
Amendment #1
Dated August 26, 1996
The LOAN AGREEMENT dated August 26, 1996 (the "Agreement"), between Concord
Growth Corporation, a California corporation, and information Systems Consulting
Corp., a corporation; and
The LOAN AGREEMENT dated August 26, 1996 (the "Agreement'), between Concord
Growth Corporation, a California corporation, and Preferred Funding Corporation,
a corporation, are hereby amended in the specific sections(s) as follows:
Section 1.2 ELIGIBLE ACCOUNTS. Notwithstanding the terms set forth
herein, Subsection (cc) has been added to read:
(cc) Eligible Accounts shall include, the aggregate
amount of all accounts owed by U. S. Sprint and
American Airlines and/or their affiliates that
does not each exceed forty percent (40%) of the
aggregate amount of all otherwise Eligible
Accounts.
Section 1.3 ACCOMMODATIONS.
(a) Advances under the Accommodation Note shall be
paid by Lender directly to equipment vendors upon
receipt of (i) a bona fide purchase order or
invoice issued by said vendor; and (ii) subject
to Section 5.4(a).
Section 3.1 DELIVERY OF INVOICES. Notwithstanding the terms set forth
herein, Subsection
(a) has been added to read:
(a) Borrower shall submit to Lender Bills of Sale for
equipment purchased from Advances under the
Accommodation Note within seven (7) days from
date of purchase.
Section 5.4 DELIVERY OF AGINGS AND FINANCIAL INFORMATION.
Notwithstanding the terms set forth herein, Subsection
(a) has been added to read:
(a) Borrower shall deliver to Lender on or before the
thirtieth day (30) day of each month, Accounts
Receivable Aging Report from the preceding month
for Management Alliance Corporation ("MAC"),
which shall be provided by MAC and its lender,
Metro Factors, evidencing unencumbered eligible
Accounts Receivable equal to or greater than 150%
of the Accommodation Advances.
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Section 5.8 FINANCIAL COVENANTS. Notwithstanding the terms set forth
herein, Subsection
(f) has been added to read:
(f) Borrower shall notify Lender in writing within
fifteen (15) days of the occurrence of the
Inter-company accounts receivable exceeding
$2,000,000.
Section 6.1 EVENTS OF DEFAULT. Notwithstanding the terms set forth
herein, Subsection (o) has been added to read:
(o) A default under MAC's agreement with its lender,
Metro Factors, shall constitute a default under
Borrower's Accommodation facility with Lender.
THE AMENDMENT AFFECTS ONLY THE ABOVE LISTED SECTION(S) OF THE AGREEMENT AND ALL
OTHER PROVISIONS OF THE AGREEMENT SHALL REMAIN UNCHANGED AND IN FORCE AS WRITTEN
OR THEREAFTER AMENDED IN WRITING.
This Amendment shall become effective when it is accepted and executed by an
authorized officer of Lender.
AGREED:
BORROWER:
INFORMATION SYSTEMS CONSULTING CORP.
BY:
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(PRINT NAME AND TITLE)
DATE:
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BORROWER:
PREFERRED FUNDING CORPORATION
BY:
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(PRINT NAME AND TITLE)
DATE:
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2
ACCEPTED:
LENDER:
CONCORD GROWTH CORPORATION
BY:
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(PRINT NAME AND TITLE)
DATE:
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