Amendment to Loan and Security Agreement between Pilot Network Services, Inc. and Greyrock Capital

Summary

This amendment updates the loan agreement between Pilot Network Services, Inc. and Greyrock Capital, a division of Banc of America Commercial Finance Corporation. The main change is a reduction in the required minimum cash on hand that Pilot Network Services must maintain at specified dates. All other terms of the original loan agreement remain in effect. The amendment confirms that all representations and warranties are still true, and it does not waive any existing defaults. Both parties have agreed to these changes as of January 9, 2001.

EX-10.3 3 0003.txt Amendment to Loan Agreement Borrower: Pilot Network Services, Inc. Address: 1080 Marina Village Parkway Alameda, California 94501 Date: January 9,2001 THIS AMENDMENT TO LOAN AGREEMENT is entered into between GREYROCK CAPITAL. a Division of Banc of America Commercial Finance Corporation ("Greyrock"), whose address is 10880 Wilshire Blvd., Suite 1850, Los Angeles, CA 90024 and the borrower named above ("Borrower"). The Parties agree to amend the Loan and Security Agreement between them, dated November 9, 1999 (the "Loan Agreement") as follows. (This Amendment, the Loan Agreement, all prior written amendments to the foregoing, signed by Greyrock and the Borrower, and all other written documents and agreements between Greyrock and the Borrower are referred to herein collectively as the "Loan Documents". Capitalized terms used but not defined in this Amendment, shall have the meanings set forth in the Loan Agreement.) 1. Modification to Financial Covenant. Section 8 (2) of the Schedule to the Loan Agreement, which presently reads: "(1) Cash on Hand. Borrower shall maintain cash on hand of not --------------- less than the following amounts at the following dates, and shall provide evidence of the same to Greyrock, reasonably satisfactory to Greyrock, by the said dates: at 10/31/00: $4,250,000 at 11/17/00: $4,500,000 at 11/30/00: $4,500,000 at 12/15/00: $4,500,000 at 12/31/00: $3,750,000 at 01/12/01: $4,000,000 at 01/31/01: $3,500,000." -1- Greyrock Capital Amendment and Extension Agreement __________________________________________________________ is amended to read as follows: "(1) Cash on Hand. Borrower shall maintain cash on hand of not --------------- less than the following amounts at the following dates, and shall provide evidence of the same to Greyrock, reasonably satisfactory to Greyrock, by the said dates: at 10/31/00: $4,250,000 at 11/17/00: $4,500,000 at 11/30/00: $4,500,000 at 12/15/00: $4,500,000 at 12/31/00: $2,250,000 at 01/12/01: $2,750,000 at 01/31/01: $2,500,000." 2. Representations True. Borrower represents and warrants to Greyrock that all representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct. 3. General Provisions. This Amendment, the Loan Agreement, the Note, and the other Loan Documents set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and supersede all prior discussions, representations. agreements and understandings between the parties with respect to the subject hereof. Nothing herein constitutes a waiver of any default or Event of Default, known or unknown which may exist. Except as herein expressly amended, all of the terms and provisions of the Loan Agreement, the Note and the other Loan Documents shall continue in full force and effect and the same are hereby ratified and confirmed. Borrower: Greyrock: PILOT NETWORK SERVICES, INC. GREYROCK CAPITAL, a Division of Banc of America Commercial Finance Corporation By /S/ Marketta Silvera --------------------------------- President or Vice President By /S/ Stephanie Wail --------------------------------- By /S/ Title VP --------------------------------- ------------------------------ Secretary or Ass't Secretary -2-