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EXHIBIT 10
AMENDMENT NO. ELEVEN TO THE LOAN
AND SECURITY AGREEMENT
CONCURRENT COMPUTER CORPORATION
This Amendment No. Eleven To The Loan And Security Agreement (this
"Amendment") is entered into as of the 19th day of September, 1996, by and
between CONCURRENT COMPUTER CORPORATION, a Delaware corporation ("Borrower"),
with its chief executive office located at 0000 X. Xxxxxxx Xxxxx Xxxx, Xxxx
Xxxxxxxxxx, Xxxxxxx 00000 and FOOTHILL CAPITAL CORPORATION, a California
corporation ("Foothill"), with a place of business located at 00000 Xxxxx
Xxxxxx Xxxxxxxxx, Xxxxx 0000, Xxx Xxxxxxx, Xxxxxxxxxx 00000-0000, in light of
the following facts:
FACTS
FACT ONE: Foothill and Borrower have previously entered into that
certain Loan And Security Agreement, dated as of June 29, 1995 (as amended and
the "Agreement").
FACT TWO: Foothill and Borrower desires to further amend the
Agreement as provided herein. Terms defined in the Agreement which are used
herein shall have the same meanings as set forth in the Agreement, unless
otherwise specified.
NOW, THEREFORE, Foothill and Borrower hereby modify and amend the
Agreement as follows:
1. Section 6.12 of the Agreement is hereby amended and restated in its
entirety to read as follows:
"6.12 FINANCIAL CONVENTS. Borrower shall maintain:
(a) Current Ratio. A ratio of Consolidated Current Assets
divided by Consolidated Current Liabilities of at least six tenths to one
(0.60 : 1.0), and commencing March 31, 1997 at least seven tenths to one
(0.70 : 1.0), measured on a fiscal quarter-end basis;
(b) Total Liabilities to Tangible Net Worth Ratio. A ratio of
Borrower's total liabilities divided by Tangible Net Worth of not more than the
following, measured on a fiscal quarter-end basis:
(i) forty-eight to one (48 : 1.0) for the fiscal
quarter-end September 30, 1996;
(ii) twenty five to one (25 : 1.0) for the fiscal
quarter-end December 31, 1996; and
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(iii) fifteen to one (15 : 1.0) for the fiscal quarter-end
March 31, 1996, and shall continue thereafter;
(c) Tangible Net Worth. Tangible Net Worth measured on a
fiscal quarter-end basis of not less than the following:
(i) Zero Dollars ($0.00) for the fiscal quarter-end
September 30, 1996;
(ii) One Million Five Hundred Thousand Dollars
($1,500,000) for the fiscal quarter-end December 31, 1996;
(iii) Three Million Dollars ($3,000,000) for the fiscal
quarter-end March 31, 1997; and
(iv) Four Million Dollars ($4,000,000) for the fiscal
quarter-end June 30, 1997, and shall continue thereafter;
(d) Total Obligations to Annualized Service Revenues. A ratio
of the total amount outstanding under Section 2.1 and the Term Note divided by
the Annualized Service Revenues of not more than 0.35:1, as measured on a
fiscal quarter-end basis.
2. Foothill shall charge Borrower's loan account a fee in the amount
of Two Thousand Dollars ($2,000). Said fee shall be fully-earned,
non-refundable, and due and payable on the date Borrower's loan account is
charged.
3. In the event of a conflict between the terms and provisions of
this Amendment and the terms and provisions of the Agreement, the terms and
provisions of this Amendment shall govern. In all other respects, the
Agreement, as supplemented, amended and modified, shall remain in full force
and effect.
IN WITNESS WHEREOF, Borrower and Foothill have executed this Amendment
as of the day and year first written above.
FOOTHILL CAPITAL CORPORATION CONCURRENT COMPUTER
CORPORATION
By /s/ Xxxx X. Xxxxxxxx By /s/ Xxxxxx Xxxxxxxxxxx
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Xxxx X. Xxxxxxxx Xxxxxx Xxxxxxxxxxx
Its Assistant Vice President Its Vice President & Treasurer
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