Document:

EX-10.20

 

Exhibit 10 (20)

SUMMARY OF 2005 SALARIES
OF NAMED EXECUTIVE OFFICERS

The following table sets forth the current base salaries provided to the Company’s CEO and four
most highly compensated executive officers:

	 	 	 	 	 
	Executive Officer	 	Current Salary	 
	Andrew B. Schmitt
	 	$	425,000	 
	Eric R. Despain
	 	$	220,000	 
	Jerry W. Fanska
	 	$	212,000	 
	Steven F. Crooke
	 	$	200,000	 
	Gregory F. Aluce
	 	$	190,000	 

Executive officers are also eligible to receive a bonus each year under the Company’s Executive
Incentive Compensation Plan (the “IC Plan”). The bonuses paid to the Company’s CEO and four most
highly compensated executive officers for the fiscal year ended January 31, 2005 are as shown in
the following table:

	 	 	 	 	 
	Executive Officer	 	FY 2005 Bonus	 
	Andrew B. Schmitt
	 	$	204,077	 
	Eric R. Despain
	 	$	115,506	 
	Jerry W. Fanska
	 	$	76,529	 
	Steven F. Crooke
	 	$	64,755	 
	Gregory F. Aluce
	 	$	63,431	 

The Company adopted the IC Plan in fiscal 1993. Each of the Company’s executive officers, including
the Named Executive Officers, is eligible to participate in the IC Plan. Under the IC Plan, each
participant will be eligible for an annual cash bonus in a target amount (the “Target Bonus”) equal
to a percentage (50% in the case of Mr. Schmitt and 37.5% in the case of the other Named Executive
Officers) of such participant’s base compensation. The Target Bonus will be adjusted (up or down)
based upon the performance of the Company as compared to certain goals included in the business
plan adopted and approved by the Board of Directors. In no event, however, can a participant’s
annual cash bonus under the IC Plan exceed 100% of such participant’s base compensation for the
relevant year. No bonus will be payable should performance be equal to or below 80% of the relevant
goals established by the business plan. In addition, the formula bonus derived as described in the
preceding sentences can be further adjusted (up or down) at the discretion of the Board of
Directors by up to one-third of the Target Bonus. All or part of an employee’s incentive
compensation under the IC Plan may, at the discretion of the Board of Directors, be paid in the
form of shares of the Company’s common stock which may consist of authorized but unissued shares of
common stock or shares of common stock reacquired by the Company on the open market.

A Form 8-K will be filed to report the goals set by the Compensation Committee of the Board of
Directors for the executive officers to qualify for a bonus under the IC Plan for the fiscal year
ended January 31, 2006.SVB Amendment dated 4/5/05

Exhibit
10.5

Silicon
Valley Bank

Limited
Forbearance and Amendment to Loan Documents

	
      Borrower:
	
      Entrada
      Networks, Inc.

	 	
      Rixon
      Networks, Inc. (fka Entrada Networks-AJ, Inc.)

	 	
      Sync
      Research, Inc.

	 	
      Torrey
      Pines Networks, Inc.

	 	
      Microtek
      Systems, Inc.

	 	 

Date:  April
5, 2005

THIS
LIMITED FORBEARANCE AND AMENDMENT TO LOAN DOCUMENTS is
entered into between Silicon Valley Bank (“Silicon”) and the borrower named
above (“Borrower”).

The
Parties agree to amend the Loan and Security Agreement between them, dated
December 14, 2004 (as otherwise amended, if at all, the “Loan Agreement”), as
follows, effective as of March 31, 2005. (Capitalized terms used but not defined
in this Amendment, shall have the meanings set forth in the Loan
Agreement.)

1. Limited
Forbearance re Compliance Regarding Monthly Financial Statement Reporting
Requirement. Reference
is hereby made to the reporting requirements set forth in Section 6.2(a)(i) of
the Loan Agreement (the “Monthly Financial Statement Reporting Requirement”).
Borrower has failed to comply with the Monthly Financial Statement Reporting
Requirement by failing to provide its financial statements for the month ending
February 28, 2005 in the manner prescribed by the Monthly Financial Statement
Reporting Requirement (the “Reporting Default”). Borrower hereby acknowledges
the foregoing Reporting Default. Silicon hereby agrees to forbear from
exercising its rights and remedies arising from the Reporting Default until the
earlier of the following (the “Forbearance Period”): (i) April 15, 2005 or (ii)
the occurrence of an Event of Default (other than the Reporting Default) under
the Loan Agreement. It is understood by the parties hereto, however, that such
forbearance does not constitute a waiver or forbearance of any other default
under, or any other provision or term of, the Loan Agreement or any related
document, nor an agreement by Silicon to waive or forbear from exercising its
rights and remedies in the future regarding the Reporting Default or any other
defaults under, or any other provision or term of, the Loan
Agreement.

2. Modified
Maximum Advances. Section
2.1.1(b) of the Loan Agreement is hereby amended to read as
follows:

(b) Maximum
Advances. The
aggregate face amount of all Financed Receivables outstanding at any time may
not exceed the Facility Amount, and Bank shall have no obligation to make
Advances in excess of Five Hundred Thousand Dollars ($500,000) in the aggregate
at any time outstanding.

3. Modified
Applicable Rate. The
Applicable Rate set forth in Section 13.1 of the Loan Agreement is hereby
amended to read as follows: 

“Applicable
Rate” is a per
annum rate equal to the Prime Rate plus eight percent (8.0%).

4. Modified
Facility Amount. The
Facility Amount set forth in Section 13.1 of the Loan Agreement is hereby
amended to read as follows: 

“Facility
Amount”
is Six
Hundred Twenty-Five Thousand Dollars ($625,000).

5. Modified
Maturity Date. The
Maturity Date set forth in Section 13.1 of the Loan Agreement is hereby amended
to read as follows: 

“Maturity
Date”
is April 30,
2005.

6. Fee.
In
consideration for Silicon entering into this Amendment, Borrower shall
concurrently pay Silicon a fee in the amount of $1,000, which shall be
non-refundable and in addition to all interest and other fees payable to Silicon
under the Loan Documents. Silicon is authorized to charge said fee to Borrower’s
loan account. 

7. Representations
True. Borrower
represents and warrants to Silicon that all representations and warranties set
forth in the Loan Agreement, as amended hereby, are true and correct.

8. General
Provisions. This
Amendment, the Loan Agreement, any prior written amendments to the Loan
Agreement signed by Silicon and Borrower, and the other written documents and
agreements between Silicon and Borrower set forth in full all of the
representations and agreements of the parties with respect to the subject matter
hereof and supersede all prior discussions, representations, agreements and
under-standings between the parties with respect to the subject hereof. Except
as herein expressly amended, all of the terms and provisions of the Loan
Agreement, and all other documents and agreements between Silicon and Borrower
shall continue in full force and effect and the same are hereby ratified and
confirmed. 

	
       

      Borrower:

       

      ENTRADA
      NETWORKS, INC.

       

       

      By
      /s/ Kanwar J. S. Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Ass't
      Secretary
	
      Silicon:

       

      SILICON
      VALLEY BANK

       

       

      By
      /s/ Jeffery Strawn

      Title
      Senior Vice President

       

	
       

      Borrower:

       

      RIXON
      NETWORKS, INC.

       

       

      By
      /s/ Kanwar J. S. Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Ass't
      Secretary
	
       

      Borrower:

       

      SYNC
      RESEARCH, INC.

       

       

      By
      /s/ Kanwar J. S. Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Ass't
      Secretary

	
       

      Borrower:

       

      TORREY
      PINES NETWORKS, INC.

       

       

      By
      /s/ Kanwar J. S. Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Ass't
      Secretary
	
       

      Borrower:

       

      MICROTEK
      SYSTEMS, INC.

       

       

      By
      /s/ Kanwar J. S. Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Ass't
      Secretary

--4th Loan Amendment

Exhibit
10.16

FOURTH
AMENDMENT TO TERM CREDIT AGREEMENT

 

THIS
FOURTH AMENDMENT TO TERM CREDIT AGREEMENT ("Fourth Amendment")
is made and entered into as of March 30, 2005 by and among ENTRADA NETWORKS,
INC., a Delaware corporation ("Borrower"), HONG KONG LEAGUE CENTRAL
CREDIT UNION, in its capacity as a lender under the Credit Agreement (as
hereinafter
defined) ("Hong Kong League"), HIT CREDIT UNION, in its capacity as a lender
under the
Credit Agreement ("HIT"), BRIGHTLINE BRIDGE PARTNERS I, LLC, in its capacity
as a lender under the Credit Agreement ("Brightline"), MATTHEW MCGOVERN
("McGovern"),
in his capacity as a lender under the Credit Agreement, (Hong Kong League,
HIT,
Brightline and McGovern shall herein be collectively referred to as the
"Lenders" and, individually, as a "Lender") and SBI ADVISORS, LLC, a California
limited liability company, in its
capacity as agent for Lenders ("Agent"), and is made with reference to the
following:

 

A. Agent,
Hong Kong League, HIT, Shelly Singhal ("Singhal"), and Borrower have
entered
into that certain Term Credit Agreement, dated as of January 30, 2004, as
amended by the First
Amendment to Term Credit Agreement, dated May 14, 2004, as further amended by
the Second
Amendment to Term Credit Agreement, dated October 1, 2004, and as further
amended by the
Third Amendment to Term Credit Agreement, dated January 29, 2005 (as the same
may hereafter
be amended, modified, extended and/or restated from time to time, the "Credit
Agreement").
Pursuant to the Credit Agreement, Hong Kong League, HIT, Brightline, Buttles,
McGovern
and Singhal have made certain Term Loans to Borrower, the repayment of which
Term
Loans is secured by certain assets of Borrower pledged to Agent for the ratable
benefit of Lenders
pursuant to the Security Agreement (as hereinafter defined).

 

B. Borrower
has requested that the Maturity Date (as defined in Section
2(b) of the
Credit
Agreement) be extended to July
31,
2005.

 

C. Lenders
have agreed to amend the Credit Agreement to extend the Maturity Date
to
July
31,
2005.

 

D. Borrower
has requested that the interest rate be reduced to 10% per annum and
the
balance of 14% to be Paid In Kind ("PIK"). The PIK shall be computed and
compounded monthly. The Lenders have agreed to amend the Credit Agreement as
such. 

 

E. As a
condition to the execution of this Fourth Amendment by Borrower, Trilogy
Capital Partners has offered to cancel its letter of engagement dated
November
10, 2004, return all fees paid to it by the Borrower for the months of January
2005 and
February 2005, and the 10,000,000 warrants issued to it on November 10, 2004.
The Borrower
shall hereby and separately notify Trilogy Capital Partners ("Trilogy") that it
accepts its offer fully. Lenders agree to provide reasonable efforts to Borrower
to facilitate the return of the
Trilogy warrants and fees; however, Borrower acknowledges and understands that
Lenders and Agent
have no authority to bind or enter into any agreements on behalf of Trilogy, and
that neither
Lender or Agent have any ability to cause Trilogy to return said warrants or
fees, and that Lender has any interest or ownership in Trilogy.

 

F.
 Upon
repayment of all amounts payable under the terms of the Term Notes, a portion of
any unexercised Warrants issued to SBI Advisors, LLC or its designees will be
returned to the Borrower on terms more particularly described herein.

 

NOW,
THEREFORE, in consideration of the premises and the agreements, conditions and
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as
follows:

 

1. Terms
Defined in Credit Agreement.
All
capitalized terms used in this Fourth  Amendment
and not otherwise defined herein shall have the meanings assigned to them in
the

 Credit
Agreement.

 

2. For
purposes hereof, "Fourth Effective Date" means the date on which each of the
 conditions
set forth in Section
6 hereof is
fully satisfied to the satisfaction of Agent in its sole and
absolute discretion.

 

3. Effective
as of the Fourth Effective Date, the following terms are added to Section
1 of the
Credit Agreement in their proper alphabetical sequence:

 

"Fourth
Amendment" means
that certain Fourth Amendment to Term Credit
Agreement dated as of March 30,
2005, by and among the Borrower, the Lenders named therein, and the
Agent.

 

"Fourth
Effective Date" means
the date on which each of the conditions set forth
in Section
5 of the
Fourth Amendment is fully satisfied to the satisfaction
of Agent in its sole and absolute discretion.

 

4. Effective
as of the Fourth Effective Date, Section
2(b) of the
Credit Agreement is hereby
deleted in it entirety and the following is inserted in lieu
thereof:

 

"Term.
 All
unpaid principal and accrued but unpaid interest of the Term Loan
shall, subject to subsection (c) below, be payable in full on July
31,
2005 (the
"Maturity Date")."

 

5. Conditions
Precedent. The
satisfaction of the following shall be conditions precedent
to the effectiveness of this Fourth Amendment:

 

5.1
Amendment.
Agent
shall have received this Fourth Amendment, duly executed by
Borrower. 

 

5.2
  Representations
and Warranties. Each
representation and warranty made by
Borrower in Section
3 of the
Credit Agreement shall be true and correct on and as of the Fourth Effective
Date as though made as of the Fourth Effective Date, except to the extent such
representations and warranties relate solely to an earlier date.

 6. General
Amendment. Effective
as of the Fourth Effective Date, the Credit Agreement,
the Security Agreement, and each document delivered to Lenders in
connection

therewith
(collectively, the "Loan Documents") are hereby further amended and modified to
the extent
necessary to give effect to the terms and conditions of the amendments to the
Credit Agreement
effected by the Fourth Amendment.

 

7. Upon
repayment of all amounts payable under the terms of the Term Notes, Lenders will
retain 5,000,000
Warrants issued to SBI Advisors, LLC or its designees, and the balance of
unexercised Warrants held by such parties at the time of repayment of the Term
Notes will be returned to Borrower. These
parties and their warrants holdings are as follows: (1) 3,500,000 with McGovern
Living Trust; (2) 3,650,000 with Jon Buttles; (3) 3,250,000 with David F. Evans;
and (4) 3,500,000 with Crestwood Children’s Trust. The
warrants retained by SBI or its designees shall be the then lowest priced
warrants owned by SBI Advisors, LLC or its designees.

 

 8. Full
Force and Effect. Effective as of the Fourth Effective Date, each of the Loan
Documents is hereby amended such that all references to the Credit Agreement
contained in any such
documents shall be deemed to be references to the Credit Agreement, as further
amended by this
Fourth Amendment. Except as
amended hereby, the Credit Agreement and the other Loan Documents shall remain
unaltered and in full force and effect, and each party to this Fourth Amendment
agrees that this Fourth Amendment represents the entire agreement of the parties
with
regard to the subject matter hereof, and Borrower waives any and all claims or
defenses relating to the repayment of the Term Loans.
Further, except for the repayment of debt owing by Borrower as set forth herein,
the parties (including those persons or entities set forth in paragraph 7
hereof), for themselves and
any
persons
which they control within the meaning of the Securities Act of 1933, as amended,
and their respective officer, directors, employees, attorneys, agents,
successors and representatives hereby fully, completely and forever discharge
and release each other from any and all claims, demands, obligations,
liabilities, indebtedness, breaches of duty, acts, omissions, misfeasance,
malfeasance, causes of action, and expenses of every type, kind, nature,
description or
character,
and irrespective of how, why or by reason of what facts, whether known or
unknown, suspected or unsuspected, liquidated or unliquidated, each as though
fully set forth herein at length, arising prior
to the
date hereof.

With
regard to the releases set forth immediately above, the parties specifically
waive the provisions of California
Civil Code §1542, which
provides:

"A
general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the
debtor."

 

Each of
the parties acknowledges that they may hereafter discover facts different from
or in addition to those which it now knows or believes to be true with respect
to the released claims, and each of the parties hereby assumes the risk that
this agreement will constitute a waiver of causes of action arising out of the
released claims, regardless of their nature or value, which subsequently may
become known to that party. Each of the parties hereby agrees that this
agreement and the releases provided for herein shall remain in effect in all
respects and shall not be subject to termination or rescission, notwithstanding
the existence or discovery of such different or additional facts, provided,
however, that the promises, warranties, covenants, and obligations contained
herein shall survive the releases set forth herein. Each of the parties
acknowledges that in entering into the releases set forth in this paragraph 8,
they have not relied on any representations of any other party except as
specifically set forth in this Fourth Amendment.

9. Counterparts.
This Fourth Amendment may be executed in multiple counterparts, each of
which shall constitute an original and all of which, taken together, shall
constitute but one and
the same instrument.

 

10. Governing
Law. This Fourth Amendment shall be governed by, and construed in accordance
with, the laws of the State of California.

(Signature
Page to Follow)

IN
WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment by their
respective duly authorized officers as of the date first above
written.

 

	 
	
      "BORROWER"

	 
	
      ENTRADA
      NETWORKS, INC., a Delaware corporation

	 
	
      By:
       /s/
      Kanwar J. S. Chadha

	
      Name: Kanwar
      J. S. Chadha

	
      Its: President
      & CEO

	 
	 
	
      "AGENT"

	 
	
      SBI
      ADVISORS, LLC, solely in its capacity as Agent hereunder

	 
	
      By:
      /s/
      Shelly
      Singhal

	
      Name:
      Shelly
      Singhal 

	
      Its:
      Manager

	 
	
      "HONG
      KONG LEAGUE"

	 
	
      HONG
      KONG LEAGUE CENTRAL CREDIT UNION

	 
	
      By:
      /s/
      Shelly Singhal

	
      Name:
      Shelly
      Singhal 

	
      Its:
      Agent

	 
	 
	
      "HIT”

	
      HIT
      CREDIT UNION

	
      By:
      /s/
      Shelly Singhal

	
      Name:
      Shelly
      Singhal 

	
      Its:
      Agent

	 
	 
	
      "BRIGHTLINE"

	 
	
      BRIGHTLINE
      BRIDGE PARTNERS I, LLC

	
      By:
       /s/
      Jon Buttles

	
      Name: Jon
      Buttles

	
      Its:
      Manager

	 
	 
      ”MCGOVERN"

	
      /s/
      Matthew McGovern

	
      MATTHEW
      MCGOVERN

	
      Acknowledged
      and Agreed:

	 
	 
	
      /s/
      Jon Buttles 

	
      JON
      BUTTLES

	 
	 
	
      /s/
      David F. Evans

	
      DAVID
      F. EVANS

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