Amendment No. 1 to Security Agreement between CAPCO Financial Company and CCI Telecom, Inc. (July 18, 2005)

Summary

This amendment updates the security agreement between CAPCO Financial Company (a division of Greater Bay Bank N.A.) and CCI Telecom, Inc. It changes the requirement for handling returns, allowances, or credits on accounts sold to CAPCO. Now, CCI Telecom must notify CAPCO within two business days of any such changes, instead of needing prior written approval. The amendment applies to invoices purchased after July 18, 2005. All other terms of the original agreement remain unchanged.

EX-10.8 11 doc11.txt EXHIBIT 10.8 CAPCO FINANCIAL AMENDMENT #1 ------------ TO CAPCO SECURITY AGREEMENT --------------------------- JULY 18, 2005 ------------- CLIENT COVENANTS: - ----------------- PARAGRAPH 13B AS FOLLOWS: All Accounts sold to CAPCO are an accurate statement of a bonafide sale, delivery and acceptance of merchandise, or performance of service by CLIENT to / for Account-debtor. Accounts are not contingent upon the fulfillment by CLIENT and each Account-debtor's business is believed to be solvent. The terms for payment of said Accounts are Net 30 days or as expressly set forth on the face ------------------------------------------------- of said sold and assigned Accounts, and the payment of said Accounts are not - ---------------------------------------------------------------------------- contingent upon the fulfillment by CLIENT of any further performance of any - --------------------------------------------------------------------------- nature whatsoever. CLIENT shall accept no returns and shall grant no allowances - ------------------------------------------------------------------------------- or credits to any sold and Assigned Account of any Account-debtor without the - ----------------------------------------------------------------------------- prior written approval of CAPCO. - -------------------------------- IS REPLACED BY: All Accounts sold to CAPCO are an accurate statement of a bonafide sale, delivery and acceptance of merchandise, or performance of service by CLIENT to / for Account-debtor. Accounts are not contingent upon the fulfillment by CLIENT and each Account-debtor's business is believed to be solvent. The terms for payment of said Accounts are Net 30 days or as expressly set forth on the face ------------------------------------------------- of said sold and assigned Accounts, and the payment of said Accounts are not - ---------------------------------------------------------------------------- contingent upon the fulfillment by CLIENT of any further performance of any - --------------------------------------------------------------------------- nature whatsoever. CLIENT must notify CAPCO within 2 business days of any - ------------------------------------------------------------------------- returns, allowances or credits to any sold and Assigned Account of any - ---------------------------------------------------------------------- Account-debtor. - --------------- This amendment is effective and applicable to invoices purchased after July 18, 2005. All other terms, covenants and conditions will remain in effect and unchanged. CAPCO FINANCIAL COMPANY- A DIVISION OF GREATER BAY BANK N.A. By: /s/ [Illegible] ------------------------------------ Title: AVP --------------------------------- CCI TELECOM, INC. By: /s/ Ray J Ber ------------------------------------ Title: VP & CFO --------------------------------- Date: 7-26-05 ---------------------------------- Form Date 6/97