Exhibit 10.68

CHANGE IN TERMS AGREEMENT

Principal
$3,000,000.00

 

Loan Date
03-16-2004

 

Maturity
05-17-2005

 

Loan No
112458756

 

Call/Coll
        2000

 

Account

 

Officer
016

 

Initials

 

References in the shaded area are for Lender’s use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

Borrower:

Fresh Choice, Inc.

 

Lender:

Mid-Peninsula Bank – part of Greater Bay Bank N.A.

 

485 Cochrane Circle

 

 

Palo Alto Office

 

Morgan Hill, CA  95037

 

 

420 Cowper Street

 

 

 

 

Palo Alto, CA  94301

 

 

 

 

 

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Principal Amount:  $3,000,000.00

Initial Rate:  4.500%

Date of Agreement:  March 16, 2004

DESCRIPTION OF EXISTING INDEBTEDNESS.  Promissory Note dated October 5, 2001 in
the original principal amount of $2,000,000.00 (the “Note”) subsequently
modified by a Change in Terms Agreement dated June 3, 2002.

DESCRIPTION OF COLLATERAL.  The Collateral as described in that certain Pledge
Agreement dated October 5, 2001.

DESCRIPTION OF CHANGE IN TERMS.  The maximum amount of the Note is hereby
increased from $2,000,000.00 to $3,000,000,00

The maturity date of the Note is hereby extended from June 3, 2004 to May 17,
2005.

The Revolving Loan Agreement dated October 5, 2001 (as amended June 3, 2002 and
subsequently amended as of December 10, 2002, April 7, 2003, August 13, 2003 and
November 19, 2003) as follows:

4.7          Net Worth Ratio.  At all times, maintain a ratio of Debt to
Tangible Net Worth of not greater than 1.00 to 1.00 during the twelve month
period beginning March 16, 2004.

4.8          Other Ratio.  Maintain a ratio, as of the end of each fiscal
quarter of Borrower, as measured on a rolling four fiscal quarter basis, of (x)
the amount of Borrower’s annual Net Income adjusted to exclude any non-cash
income and to exclude expenses for interest, taxes, depreciation, amortization,
asset impairment, and restaurant opening costs; less the amount of dividends and
distributions paid to shareholders of Borrower, to (y) the amount of current
portion of long-term obligations as reflected on Borrower’s most recent balance
sheet date plus the amount of the interest expense for the preceding four fiscal
quarters, that is equal or greater than 1.50 to 1.00.  Except as provided above,
all computations made to determine compliance with the requirements contained in
this paragraph shall be made in accordance with generally accepted accounting
principles, applied on a consistent basis, and certified by Borrower as being
true and correct.

4.9          Capital Expenditures.  Not to make Total Capital Expenditures in
excess of $4,000,000 during the fiscal year ending December 26, 2004.

4.10        Total Shareholder Equity.  Maintain at all times a Tangible Net
Worth in excess of $15,000,000.00

All other terms and conditions remain the same.

CONTINUING VALIDITY.  Except as expressly changed by this Agreement, the terms
of the original obligation or obligations, including all agreements evidenced or
securing the obligation(s), remain unchanged and in full force and effect. 
Consent by Lender to this Agreement does not wave Lender’s right to strict
performance of the obligation(s) as changed, nor obligate Lender to make any
future change in terms.  Nothing in this Agreement will constitute a
satisfaction of the obligation(s).  It is the intention of Lender to retain as
liable parties all makers and endorsers of the original obligation(s), including
accommodation parties, unless a party is expressly released by Lender in
writing.  Any maker or endorser, including accommodation makers, will not be
released by virtue of this Agreement.  If any person who signed the original
obligation does not sign this Agreement below, then all persons signing below
acknowledge that this Agreement is given conditionally, based on the
representation to Lender that the non-signing party consents to the changes and
provisions of this Agreement or otherwise will not be released by it.  This
waiver applies not only to any initial extension, modification or release, but
also to all such subsequent actions.

PRIOR TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS AGREEMENT.  BORROWER AGREES TO THE TERMS OF THE AGREEMENT.

BORROWER:

 

 

FRESH CHOICE, INC.

 

 

By:

          /s/  David E. Pertl                    3/22/04

 

 

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  David E. Pertl, Sr. Vice President & C.F.O.

 

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LASER PRO Lending, Ver. 5.23.30.04 Copr. Harland Financial Solutions, Inc. 1997,
2004. All Rights Reserved. - CA E:\CFI\LPL\D20C.FC TR-6373

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