In reference to the Loan Agreement ("Agreement") dated March 3, 1997
between Union Bank of California, N.A. ("Bank") and P-Com, a Delaware
Corporation, ("Borrower") for a loan in the amount of Seventeen Million
Five Hundred Thousand Dollars ($17,500,000), the Bank and Borrower desire
to amend the Agreement. This amendment shall be called the First
Amendment to the Agreement. Initially capitalized terms used herein
which are not otherwise defined shall have the meaning assigned thereto
in the Agreement.
Amendments to the Agreement :
SECTION 4. Affirmative Covenants
Subsection 4.7 Quick Ratio, line 2, of the Agreement is hereby
amended by substituting "1.30:1.00" for 1.75:1.00"
Subsection 4.8 Tangible Net Worth
a) line 2, of the Agreement is hereby amended by substituting
"Eighty Five Million Dollars ($85,000,000)" for "One Hundred Million Dollars
($100,000,000)
b) lines 3 and 4, of the Agreement is hereby amended by
substituting "one hundred percent (100%)" for "ninety percent (90%)"
Subsection 4.9 Debt to Tangible Net Worth, line 2, of the
Agreement is hereby amended by substituting "0.60:1.0" for "0.5:1.00."
SECTION 5. Negative Covenants
Subsection 5.7 Capital Expenditures,
a) line 2, of the Agreement is hereby amended by substituting
"Fifteen Million Dollars ($15,000,000)" for "Ten Million Dollars
($10,000,000)
b) line 3, of the Agreement is hereby amended by substituting
"Seven Million Five Hundred Thousand Dollars ($7,500,000)" for "Five
Million Dollars ($5,000,000)"
This First Amendment shall become effective and retroactive to April
1, 1997, when the Bank shall have received the acknowledgment copy of
this First Amendment executed by the Borrower on or before May 20, 1997.
Except as specifically amended hereby, the Agreement shall remain in
full force and effect and is hereby ratified and confirmed. This First
Amendment shall not be a waiver of any existing default or breach of a
condition to covenant unless specified herein.
Very truly yours,
Union Bank of California, N.A.
By: /s/ Xxxx Xxxxx
-------------------------
Xxxx Xxxxx
Vice President
By: /s/ Xxxxx Xxxxx
-------------------------
Xxxxx Xxxxx
Vice President
Agreed and Accepted this day 13th
of May 1997.
P-Com, Inc.
By: /s/ Xxxxxxx Sophie
-------------------------
Name: Xxxxxxx Sophie
Title: CFO/VP Finance
