Exhibit 99.1
COMPUTER SOFTWARE INNOVATIONS, INC.
1661 E. Main Street, Suite A
Easley, SC 29642
June 30, 2005
RBC Centura Bank
531 South Main Street, 2nd Floor
Greenville, SC 29601
Attention: Mr. Charles Arndt
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Re:
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Loan Agreement
(Revolving Line of Credit) (the “Loan
Agreement”)
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Dated March 14, 2005
between
RBC Centura Bank (the
“Bank”) and
Computer Software Innovations, Inc.
(“CSI”)
Dear Mr. Arndt:
This letter is being provided to you
in connection with the above-referenced Loan Agreement between the
Bank and CSI. Under Article VIII of the Loan Agreement and the
Bank’s Commitment Letter to CSI dated February 22, 2005 (the
“Commitment Letter”), CSI agreed to observe certain
financial covenants, including, but not limited to, a covenant that
at the closing of the Revolving Line of Credit under the Loan
Agreement, CSI would have a minimum tangible net worth of $600,000,
inclusive of subordinated debt to CSI shareholders, specifically
subordinate to the Bank (the “Net Worth
Covenant”).
In a previous letter to you dated
May 19, 2005, we indicated that we had been advised by our
accountants that due to the classification of certain outstanding
warrants to Barron Partners, LP, CSI was perhaps out of compliance
with the Net Worth Covenant under the Loan Agreement and the
Commitment Letter. By way of background, in February of 2005, CSI
issued 7,217,736 warrants to Barron Partners, LP as part of a
preferred stock financing. The warrants have a term of five years.
CSI used a fair value opt
