Amendment to Business Loan Agreement between Standard Federal Bank N.A. and United American Healthcare Corporation

Summary

This amendment, dated October 11, 2002, modifies the business loan agreement between Standard Federal Bank N.A. and United American Healthcare Corporation. The bank waives certain financial covenants for the quarter ending June 30, 2002, and sets new requirements for debt service coverage and net worth for subsequent periods. United American Healthcare Corporation must meet these updated financial conditions to remain in compliance with the loan terms.

EX-10.60 3 k72128exv10w60.txt AMENDMENT OF BUSINESS LOAN AGREEMENT EXHIBIT 10.60 RALPH P. BINGGESER Vice President Commercial Banking STANDARD FEDERAL BANK N.A. [STANDARD FEDERAL 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 Mr. Gregory H. Moses, Jr., President and Chief Executive Officer United American Healthcare Corporation 1155 Brewery Park Boulevard Suite 200 Detroit, MI ###-###-#### Dear Mr. Moses, Effective October 3, 2002, Standard Federal Bank waived the financial covenants for the fourth quarter period ending June 30, 2002. Standard Federal Bank will amend financial covenants for the succeeding periods under the amended business loan agreement dated November 29, 2001, section III.A, (1) and (2) as follows: - - 1.30x debt service coverage measured quarterly for the periods ending 9/30/02, 12/31/02, 3/31/03, and then on a trailing 4-quarter basis thereafter beginning 6/30/03. - - A net worth covenant of $1.8 million for the period ending 9/30/02, $6.0 million as of 12/31/02, and $8.0 million thereafter beginning 3/31/03. Please advise if there are any questions. Best regards, /s/ Ralph P. Binggeser Ralph P. Binggeser Vice President AGREED TO BY UNITED AMERICAN HEALTHCARE CORPORATION /s/ Gregory H. Moses, Jr. - ------------------------------- President and Chief Executive Officer Dated: October 11, 2002