Amendment of Business Loan Agreement

EX-10.61 3 k72813exv10w61.txt AMENDMENT OF BUSINESS LOAN AGREEMENT EXHIBIT 10.61 RALPH P. BINGGESER Vice President Commercial Banking - -------------------------------------------------------------------------------- STANDARD FEDERAL BANK N.A. [STANDARD FEDERAL BANK LOGO] Member of the ABN AMRO Group 2600 West Big Beaver Road 2nd Floor, M0900-290 Troy, Michigan 48084-3318 248 ###-###-#### 248 ###-###-#### October 11, 2002 United American Healthcare Corporation 1155 Brewery Park Blvd., Suite 200 Detroit, Michigan 48207 Attn: Gregory Moses William E. Jackson II Re: Covenant Modifications Dear Mr. Moses and Mr. Jackson: This letter will document our agreement to modify certain of the financial covenants contained in the Business Loan Agreement, dated September 25, 2000, as amended November 29, 2001 (the "Loan Agreement"), between Standard Federal Bank N.A., a national banking association ("Bank"), and United American Healthcare Corporation, a Michigan corporation ("Borrower"). We have agreed that the Debt Service Coverage ratio covenant, provided for in Section III.A.1) of the Loan Agreement, will be measured on a quarterly basis for the fiscal quarters ending September 30, 2002, December 31, 2002 and March 31, 2003 and on a trailing four quarters basis as of the end of each fiscal quarter ending on or after June 30, 2003. We have also agreed to modify the Net Worth covenant, provided for in Section III.A.2) of the Loan Agreement, to require the Borrower to maintain a Net Worth, as defined in the Loan Agreement, of not less than $1,800,000.00 as of September 30, 2002, not less than $6,000,000.00 as of December 31, 2002, and not less than $8,000,000.00 as of the end of each fiscal quarter ending on or after March 31, 2003. You have also agreed to pay a $5,000.00 modification fee in consideration of these covenant modifications. Please indicate your agreement to the terms outlined in this letter by signing a copy of this letter where indicated below and returning it, together with the modification fee, to me. These modifications will be effective upon our receipt of the signed copy of this letter and the modification fee. If you have any questions or comments concerning this matter, please do not hesitate to contact me. Very truly yours, /s/ Ralph P. Binggeser Ralph P. Binggeser Vice President The terms of the foregoing letter are accepted and agreed to by: United American Healthcare Corporation, a Michigan corporation By: /s/ Gregory Moses ---------------------------------------- Gregory Moses Its: President/Chief Executive Officer By: /s/ William E. Jackson II ---------------------------------------- William E. Jackson II Its: Chief Financial Officer