EXHIBIT 10
AMENDMENT NO. TWELVE TO THE LOAN
AND SECURITY AGREEMENT
CONCURRENT COMPUTER CORPORATION
This Amendment No. Twelve To The Loan And Security Agreement (this
"Amendment") is entered into as of this 21st day of October, 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
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FACT ONE: Foothill and Borrower have previously entered into that
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certain Loan And Security Agreement, dated as of June 29, 1995 (as amended and
supplemented, the "Agreement").
FACT TWO: Foothill and Borrower desires to further amend the
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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. Subsection (g) of the Definition "Eligible Accounts" under Section
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1.1 of the Agreement, is hereby amended in its entirety to read as follows:
"(g) Accounts with respect to an Account Debtor whose total obligations owing
to Borrower exceed ten percent (10%) of all Eligible Accounts, to the extent
of the obligations owing by such Account Debtor in excess of such percentage,
and with respect to Cyberguard Corporation, whose total obligations to
Borrower exceed fifteen percent (15%) from October 15, 1996 through December
28, 1996 and shall revert to ten percent (10%); provided, however that
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accounts owed by the Illinois Department of Public Aid, Loral, Lockheed,
Airinc, Boeing Co., Grumman Aircraft, Xxxxxx Xxxxxxxx Corp., Xxxxxx Aircraft,
Xxxxxx Training Inc., ABB Combustion Engineering, and other accounts that may
be approved from time to time by Foothill may be eligible up to a maximum, per
Account Debtor, of fifteen percent (15%) of all Eligible Accounts, so long as
they are otherwise eligible hereunder;"
2. Notwithstanding anything to the contrary of Subsection (e) of the
Definition of "Eligible Accounts" in Section 1.1 of the Agreement, commencing
October 15, 1996 through December 31, 1996, the dollar amount shall read
$1,500,000. Effective, January 1, 1997, dollar amount shall revert to
$1,000,000.
3. As a condition subsequent to the effectiveness of Foothill's
agreement to temporarily increase Cyberguard Corporation's concentration limit
from ten percent (10%) to fifteen percent (15%), Foothill shall institute a
contra reserve of Ten Thousand Dollars ($10,000) per week to Borrower's
ineligible calculation through December 31, 1996. Beginning January 1, 1997,
one hundred percent (100%) of any remaining Cybergard Corporation contras will
be considered ineligible.
4. Foothill shall charge Borrower's loan account a fee in the amount
of Fifteen Thousand Five Hundred Dollars ($15,500). Said fee shall be
fully-earned, non-refundable, and due and payable on the date Borrower's loan
account is charged.
5. 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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