Amendment to Revolving Loan Agreement between Mid-Peninsula Bank and Fresh Choice, Inc.
Mid-Peninsula Bank and Fresh Choice, Inc. have agreed to amend their existing Revolving Loan Agreement. The amendments require Fresh Choice, Inc. to maintain a minimum Tangible Net Worth of $20,500,000 for the year starting June 3, 2002, and $22,000,000 for the year starting June 3, 2003. Additionally, the definition of annual earnings for certain financial ratios now includes asset impairment expenses. These changes are effective as of December 10, 2002.
December 10, 2002
David E. Pertl, Senior Vice President & CFO
Fresh Choice, Inc.
485 Cochrane Circle
Morgan Hill, Ca 95037
Dear Dave,
In response to your letter of December 6, 2002 Mid-Peninsula Bank hereby agrees to amend our Revolving Loan Agreement dated October 5, 2001 as amended June 3, 2002 as follows:
• Section 4.10 Total Shareholder Equity
“Maintain at all times a Tangible Net Worth in excess of $20,500,000.00 during the twelve month beginning June 3, 2002; and during the twelve month beginning June 3, 2003 maintain at all times a Tangible Net Worth in excess of $22,000,000.00”.
• Section 4.8 Other Ratio
The term “asset impairment” is inserted in the phase “annual earnings before interest, taxes, depreciation and amortization expenses” so that it reads “annual earnings before interest, taxes, depreciation, asset impairment and amortization expenses”.
Regards,
/s/ Joe Stafford
Joe Stafford
Senior Vice President
