1 EXHIBIT 10.4(E) NORWEST BANKS Norwest Bank Texas, South Central Post Office Box 2019 Austin, Texas 78768-2019 512/479-0011 August 13, 1997 James K. Olson John Van der Hagen Surrey, Inc. 13110 Trails End Road Leander, TX 78641 Re: Line of Credit Loan Agreement Gentlemen: Your line of credit in the amount of $500,000.00 has been approved subject to modification of your existing Loan Agreement. This letter serves to document your agreement of modification to the SBA Authorization and Loan Agreement executed by Dan Cifers on October 17, 1994 and your agreement to the Amendment by my letter dated August 29, 1996. This modification to the Loan Agreement consists of two covenants. The first is officers' salaries are limited to $250,000.00 annually and the second is financial covenants will be monitored quarterly. The financial covenants are a) debt/worth ratio of less that 3.5:1, b) current ratio greater that 1.25:1, c) minimum net worth requirement of $1,000M, and d) minimum DSCR of 1.25:1 on a traditional cash flow basis. Please calculate these ratios and include on your Borrowing Base Certificate. Availability under the line of $500,000 remains at 70% of eligible receivables less than 60 days old. We appreciate your business and look forward to our continued association. Regards, /s/ Paul J. Holubec Paul J. Holubec Vice President Agreed: /s/ James K. Olson /s/ John van der Hagen - ---------------------------- ----------------------------- James K. Olson, CEO John Van der Hagen, President