EXHIBIT 10.48
July 30, 1999
Wilson Cheung
Chief Financial Officer
Network Peripherals, Inc.
1371 McCarthy blvd.
Milpitas, CA 95035
Re: Credit Agreement Dated as of October 2, 1996 By and Among Network
Peripherals, Inc. and Sumitomo Bank of California (Now known as California
Bank & Trust) as Agent as amended from time to time ("Agreement").
The Agreement is hereby supplemented, amended and modified as follows, which
terms shall supersede and prevail over any existing and conflicting provisions
thereof:
(a) The term "Letter of Credit Maturity Date" and "Maturity Date" in Section
1.1 of the Agreement are hereby deleted and replaced with the following:
Letter of Credit Maturity Date. Means February 28, 2000.
Maturity Date. Means October 31, 1999.
All other terms and conditions of the Agreement or related documents remain in
full force and effect and are unmodified by this letter. Please execute this
Letter Agreement below and return it to us via fax and mail (original) at your
earliest convenience.
Sincerely,
California Bank & Trust (f/k/a Sumitomo Bank of California)
a California Banking Corporation
By: /s/ Thomas Paton
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Thomas C. Paton
Vice President and Sr. Relationship Manager
Network Peripherals, Inc.
a Delaware Corporation
By: /s/ Wilson Cheung
-------------------------------------------
Wilson Cheung
Chief Financial Officer
October 29, 1999
Wilson Cheung
Chief Financial Officer
Network Peripherals, Inc.
1371 McCarthy blvd.
Milpitas, CA 95035
Re: Credit Agreement Dated as of October 2, 1996 By and Among Network
Peripherals, Inc. and Sumitomo Bank of California (Now known as California
Bank & Trust) as Agent as amended from time to time ("Agreement").
Whereas:
Pursuant to Section 5.7 (f) as added by the Third Modification Agreement dated
August 18, 1998, for the fiscal quarters ending June 30, 1999 and September 30,
1999, Network Peripherals, Inc. was in violation of the Cash Position covenant;
and pursuant to Section 5.7(b) of the Agreement, for the fiscal quarters ending
March 31, 1999, June 30, 1999, and September 30, 1999, Network Peripherals, Inc.
was in violation of the Profitability Covenant; and pursuant to Section 5.7 (d)
of the Agreement, for the fiscal quarters ending March 31, 1999, June 30, 1999
and September 30, 1999, Network Peripherals, Inc. was in violation of the
Consolidated Tangible Net Worth Covenant.
California Bank & Trust hereby waives compliance with these covenants for the
specific periods mentioned above only.
The Agreement is hereby supplemented, amended and modified as follows, which
terms shall supersede and prevail over any existing and conflicting provisions
thereof:
(a) The term "Letter of Credit Maturity Date" and "Maturity Date" in Section 1.
1 of the Agreement are hereby deleted and replaced with the following:
Letter of Credit Maturity Date, Means September 30, 2000.
Maturity Date. Means May 31, 2000.
(b) Sections 5.7 (a), 5.7 (b), 5.7 (c), 5.7 (d) and 5.7 (e) of the Agreement
are deleted.
(c) Section 5.7 (f) as added by the Third Modification Agreement dated August
18, 1998 is deleted and replaced with the following:
(f) Cash Position. Borrower shall maintain a consolidated cash
position on its balance sheet of at least $8,000,000.00
All other terms and conditions of the Agreement or related documents remain in
full force and effect and are unmodified by this letter. Please execute this
Letter Agreement below and return it to us via fax and mail (original) at your
earliest convenience.
Sincerely,
California Bank & Trust (f/k/a Sumitomo Bank of California)
a California Banking Corporation
By: /s/ Thomas Paton
-------------------------------------------
Thomas C. Paton, Jr.
Vice President and Manager
Network Peripherals, Inc.
a Delaware Corporation
By: /s/ Wilson Cheung
-------------------------------------------
Wilson Cheung
Chief Financial Officer