Exhibit 10.7

October 15, 2004

 
Lyndon A. Smith, President
Employer Plan Services, Inc.
2180 N. Loop West, #400
Houston, Texas 77018    

 
Re:
Line of Credit Loan

_______________________

Dear Mr. Smith:

The Promissory Note executed by Employer Plan Services, Inc. (“Borrower”) to
Brokers National Life Assurance Company (“Lender”) dated October 15, 2002 in the
principal amount of $200,000 is due to expire on October 15, 2004. Additional
security for the payment of the note has been provided by the Borrower's
stockholders, Lyndon A. Smith and Sally A. Dwyer (the “Guarantors”) in the form
of a Commercial Guaranty executed by each of the Guarantors and dated October
15, 2002. At your request, we have agreed to extend and renew the note for an
additional term with payments to be made as follows: interest only on the
outstanding principal balance until August 1, 2005; thereafter the note will be
paid in 60 equal monthly installments of principal and interest until paid in
full beginning August 15, 2005. All terms, provisions and conditions of the
note, promises, agreements, undertakings, security agreements, or other
documents or commitments and Commercial Guaranty, or any combination of those
actions or documents, shall remain the same and shall continue in full force and
effect until the outstanding principal balance and accrued interest shall be
paid in full. The undersigned Guarantors, as owners of all of the issued and
outstanding capital stock of the Borrower and as the sole members of the Board
of Directors of the Borrower, hereby certify, agree to the terms of this letter
agreement and do hereby represent and warrant that all corporate action
necessary to enter into and execute this Letter Agreement has been taken, and
that they are duly authorized to execute this Letter Agreement on behalf of the
Borrower. If this letter correctly sets forth our agreements and understandings,
please affix your signatures to a copy of this letter and return it to the
undersigned.

Yours very truly,

BROKERS NATIONAL LIFE
ASSURANCE COMPANY
 
/s/ Barry N. Shamas
                                      
                                      Barry N. Shamas
Executive Vice President

 

ACKNOWLEDGMENT OF AGREEMENT:

EMPLOYER PLAN SERVICES, INC.

By: /s/ Lyndon A. Smith
____________________________
Lyndon A. Smith
President and Director

By: /s/ Sally A. Dwyer
_______________________________
Sally A. Dwyer
Vice President and Director

GUARANTORS:

By: /s/ Lyndon A. Smith
_______________________________
Lyndon A. Smith

By: /s/ Sally A. Dwyer
_______________________________
Sally A. Dwyer

 
E-33

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