December 31, 1999
JACO ELECTRONICS, INC.
000 Xxxx Xxxxxx
Xxxxxxxxx, XX 00000
NEXUS CUSTOM ELECTRONICS, INC.
Xxxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Gentlemen:
Reference is made to the Second Restated and Amended Loan and Security
Agreement between us bearing an effective date of September 13, 1995, as amended
and supplemented (the "Agreement"). All initially capitalized terms not
otherwise defined herein shall have such meaning as are ascribed to them under
the Agreement.
It is hereby agreed by and between us that the Agreement is hereby
amended effective December 31, 1999, as follows:
1. The first sentence of Paragraph 17(d) is amended to read in its
entirety as follows:
"Maintain at all times a ratio of consolidated
current assets of Debtor and its Subsidiaries to
consolidated current liabilities of Debtor and its
Subsidiaries of not less than 1.5 to 1.0."
2. The first sentence of Paragraph 18(e) is amended to read in its
entirety as follows:
"Permit at any time the ratio of Indebtedness to
Tangible Net Worth to be greater than 1.60 to 1.0;
"Indebtedness" shall mean consolidated total
liabilities of Debtor and its Subsidiaries determined
in accordance with generally accepted accounting
principles consistently applied."
Except as herein specifically amended, the Agreement shall remain in
full force and effect in accordance with its original terms, except as
previously amended.
If the foregoing accurately reflects our understanding, kindly
sign the enclosed copy of this letter and return it to our office as soon as
practicable.
Very truly yours,
GMAC COMMERCIAL CREDIT LLC,successor
by merger to BNY FINANCIAL CORPORATION,
successor in interest to THE BANK OF
NEW YORK COMMERCIAL CORPORATION,
as Agent and Lender
By: /s/ Xxxxxx Murray_
Title: Senior Vice President
FLEET BANK, N.A. f/k/a
NATWEST BANK N.A., as Lender
By: /s/ Xxxxx Aliceberg
Title: Vice President
ACCEPTED & AGREED TO:
JACO ELECTRONICS, INC.
By:/s/ Xxxxxxx X. Xxxx
Title: Vice President
NEXUS CUSTOM ELECTRONICS, INC.
By:/s/ Xxxxxxx X. Xxxx
Title: Vice President
