HSBC
October 13, 2000
Bert E. Brodsky, Chairman
Sandsport Data Services, Inc.
26 Harbor Park Drive
Port Washington, NY 11050
Re: Your waiver request dated 10/6/00
Dear Mr. Brodsky:
We have reviewed your request for a waiver and amendment of the covenant
pertaining to the Net Worth requirement contained within the Second Amendment
dated as of February 14, 2000 to the Loan Agreement dated as of April 18, 1997
(the "Agreement") between Sandsport Data Services, Inc. and HSBC Bank USA,
formerly known as Marine Midland Bank (the "Bank"), for the period ended May 31,
2000.
Please be advised that the Bank agrees to waive non-compliance with the above
covenant to the extent of such non-compliance for the period ended May 31, 2000.
Additionally, the Bank has agreed to amend the Net Worth covenant, which
requires an increase of $75,000.00 as of each fiscal year end, to an increase of
$25,000.00 as of each fiscal year end.
This waiver and amendment are effective only in this instance and for the
purpose for which they are given. All other terms and conditions contained in
the Agreement remain in full force and effect. No waiver of any single breach or
default under the Agreement shall be deemed a waiver of any other breach or
default.
Kindly execute and return to the Bank, as soon as possible, an acknowledgment
copy of this letter which will become effective upon the Bank's receipt of such
acknowledgement copy.
Sincerely,
HSBC Bank USA
/s/Gary Sarro
Gary Sarro
Vice President
Sandsport Data Services, Inc.
/s/Bert E. Brodsky 10/16/00
Bert E. Brodsky, Chairman Date
