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                                                                    EXHIBIT 10.1

                           LOAN MODIFICATION AGREEMENT

This Loan Modification Agreement is entered into as of June 18, 2003, by and
between Stratex Networks, Inc. (the "Borrower") and Silicon Valley Bank
("Bank").

1.       DESCRIPTION OF EXISTING OBLIGATIONS: Among other Obligations which may
be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among
other documents, a Loan and Security Agreement, dated January 21, 2003, as
amended or modified from time to time, (the "Loan Agreement"). The Loan
Agreement provides for, among other things, a Committed Revolving Line in the
original principal amount of Twenty Two Million Five Hundred Thousand Dollars
($22,500,000). Defined terms used but not otherwise defined herein shall have
the same meanings as set forth in the Loan Agreement.

Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as
the "Obligations."

2.       DESCRIPTION OF COLLATERAL: Repayment of the Obligations is secured by
the Collateral as described in the Loan Agreement.

Hereinafter, the above-described security documents and guaranties, together
will all other documents securing repayment of the Obligations shall be referred
to as the "Security Documents". Hereinafter, the Security Documents, together
will all other documents evidencing or securing the Obligations shall be
referred to as the "Existing Loan Documents".

3.       DESCRIPTION OF CHANGE IN TERMS:

         A.       Modification(s) to Loan Agreement.

                  1.       Letter (a) under Section 6.7 entitled "Financial
                           Covenants" is hereby amended to read as follows:

                           Tangible Net Worth. As measured at the last day of
                           each fiscal quarter of Borrower, Tangible Net worth
                           of at least $90,000,000.

4.       CONSISTENT CHANGES. The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

5.       NO DEFENSES OF BORROWER. Borrower (and each guarantor and pledgor
signing below) agrees that, as of the date hereof, it has no defenses against
paying any of the Obligations.

6.       CONTINUING VALIDITY. Borrower (and each guarantor and pledgor signing
below) understands and agrees that in modifying the existing Indebtedness, Bank
is relying upon Borrower's representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank's agreement to modifications
to the existing Obligations pursuant to this Loan Modification Agreement in no
way shall obligate Bank to make any future modifications to the Obligations.
Nothing in this Loan Modification Agreement shall constitute a satisfaction of
the Obligations. It is the intention of Bank and Borrower to retain as liable
parties all makers and endorsers of Existing Loan Documents, unless the party is
expressly released by Bank in writing. Unless expressly released herein, no
maker, endorser, or guarantor will be released by virtue of this Loan
Modification Agreement. The terms of this paragraph apply not only to this Loan
Modification Agreement, but also to all subsequent loan modification agreements.

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         This Loan Modification Agreement is executed as of the date first
written above.

BORROWER:                                    BANK:

STRATEX NETWORKS, INC.                       SILICON VALLEY BANK

By:  /s/ Carl A. Thomsen                   By:    /s/ Tom Smith
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Carl A. Thomsen                              Name: Tom Smith

Senior Vice President, CFO and Secretary     Title: Senior Relationship Manager

By: /s/ Carol A. Goudey
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Carol A. Goudey

Treasurer and Assistant Secretary