Supplemental Agreement to Loan and Security Agreement between Chyron Corporation and Silicon Valley Bank
Chyron Corporation and Silicon Valley Bank have agreed to additional terms related to their existing Loan and Security Agreement. Chyron is allowed to keep investment accounts at Merrill Lynch and C.E. Unterberg, Towbin, but must limit the value in these accounts to $150,000 and $10,000, respectively. If these limits are exceeded, Chyron must transfer the excess to the Bank within three days. Failure to comply will be considered a default under the Loan Agreement, with no notice or grace period.
As of April 29, 2004
Chyron Corporation
5 Hub Drive
Melville, New York 11747
Gentlemen:
Chyron Corporation (the "Borrower") is this day entering into a Loan and Security Agreement (the "Loan Agreement") with Silicon Valley Bank (the "Bank"). All capitalized terms used herein have the same meanings herein as in the Loan Agreement.
This letter is intended to set forth certain additional terms and conditions (the "Supplemental Agreements") which the Borrower is obligated to comply with in connection with the loan arrangement evidenced by the Loan Agreement. Specifically:
1. The Borrower has advised the Bank that it intends to maintain its investment accounts with Merrill Lynch and C.E. Unterberg, Towbin (CEUT).
2. The Bank has agreed to allow the Borrower to maintain such accounts provided that the Borrower hereby agrees that it shall (i) maintain assets with a value of no more than $150,000.00 at any one time in its Merrill Lynch account and, (ii) maintain assets with a value of no more than $10,000.00 at any one time in its C.E. Unterberg, Towbin (CEUT) account. To the extent the value of any such account exceeds the respective maximum amount set forth above, the Borrower shall, within three days, cause such excess assets and/or funds to be transferred to the Bank or its affiliate.
The failure of the Borrower to comply with the foregoing provisions shall constitute an Event of Default under the Loan Agreement, without any notice or grace period.
If the foregoing correctly sets forth our understanding, please indicate your assent below.
| Very truly yours, |
| SILICON VALLEY BANK, d/b/a Silicon |
| Valley East |
| By: /s/ Nancy E. Funkhouser |
| Nancy E. Funkhouser |
| Title: VP |
| AGREED: |
| CHYRON CORPORATION |
| By: /s/ Gerald J. Kieliszak |
| Gerald J. Kieliszak |
| Title: Sr. Vice President & CFO |
