Loan Modification Agreement between RBC Centura Bank and WidePoint Corporation (February 7, 2005)

Contract Categories: Business Finance › Modification Agreements
Summary

This agreement modifies the terms of a $5,000,000 line of credit provided by RBC Centura Bank to WidePoint Corporation and its subsidiaries. The main change is to the financial covenant regarding the ratio of funded debt to EBITDA, which is now set at a maximum of 3.0 to 1.0, calculated on an annualized year-to-date basis. The agreement requires acceptance by WidePoint and its subsidiaries and is effective upon execution by all parties.

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EX-10.49 3 w10076exv10w49.htm EXHIBIT 10.49 exv10w49  

Exhibit 10.49

February 7, 2005

James McCubbin
Vice President, Chief Financial Officer
WidePoint Corporation
One Lincoln Centre
18W140 Butterfield Road, Suite 1100
Oakbrook Terrace, Illinois 60181

Re: Modification of $5,000,000 Line of Credit to WidePoint Corporation

Dear Jim:

As described below, RBC Centura Bank agrees to modify the existing terms of the $5,000,000 Line of Credit (“Loan”) to WidePoint Corporation (“Borrower”) evidenced by a Commitment Letter dated October 12, 2004 as well as Loan Documents including a Commercial Promissory Note, Loan and Security Agreement, and Unconditional Guaranty and Security Agreement all dated October 22, 2004, and any replacements, modifications, or amendments thereto.

Loan Modification(s):

The Funded Debt to EBITDA Ratio in the Financial Covenants section of the Commitment Letter dated October 12, 2004 shall be deleted and replaced with the following:

“The Borrower and Guarantors on a combined basis shall maintain a ratio of Funded Debt to EBITDA, calculated on an annualized year-to-date basis, of not greater than 3.0 to 1.0. For the year 2004, year-to-date shall be defined as the period from when the Borrower acquired Operational Research Consultants, Inc. until December 31, 2004. ”

Section 6.8.1. Funded Debt to EBITDA of the Loan and Security Agreement dated October 22, 2004 shall be deleted and replaced with the following:

“Borrower and its Subsidiaries shall maintain as of the end of each fiscal quarter, on a consolidated basis in accordance with GAAP, a ratio of Funded Debt to EBITDA, calculated on an annualized year-to-date basis, of not greater than 3.0 to 1. ” For the year 2004, year-to-date shall be defined as the period from when the Borrower acquired Operational Research Consultants, Inc. until December 31, 2004. ”

 

 

If the above modifications are acceptable, then please indicate your acceptance by having all of the appropriate parties execute their acceptance below and by returning this executed letter to me.

Please call me at ###-###-#### if you have any questions.

Sincerely,

         
RBC CENTURA BANK    
 
        
By:
        
         
Print Name: Greg D. Wheeless    
Title: Northern Virginia Market Executive    
 
        
ACCEPTED AND AGREED TO:    
 
        
Borrower:    
 
        
Company Name: WidePoint Corporation    
By:
        
 
       
Name: James McCubbin    
Title: Secretary, Vice President, & CFO    
Date:
        
 
       

Corporate Guarantor(s) – existing subsidiaries:

                 
Company Name: WidePoint IL, Inc.       Company Name: WP NBIL Inc.
By:
          By:    
 
               
Name: James McCubbin       Name: James McCubbin
Title: Secretary, Vice President, & CFO       Title: Secretary, Vice President, & CFO
Date:
          Date:    
 
               
 
                
Company Name: Chesapeake Government Technologies, Inc.       Company Name: Operational Research Consultants, Inc.
By:
          By:    
 
               
Name: James McCubbin       Name: James McCubbin
Title: Secretary, Vice President, & CFO       Title: Secretary, Treasurer
Date:
          Date:    
 
               

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