Document:

SVB Amendment dated 5/3/05

Exhibit
10.6

Silicon
Valley Bank 

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:
      May 3, 2005

THIS
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 May 1, 2005. (Capitalized terms used but not defined in
this Amendment, shall have the meanings set forth in the Loan
Agreement.)

1. 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 July
31, 2005.

2. 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. 

3. 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.

4. 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 Chadha 

      President
      

       

      By/s/
      Davinder Sethi 

      Secretary
      or Ass't Secretary
	
      Silicon:

       

      SILICON
      VALLEY BANK

       

       

      By
      /s/ John Willard

      Title
      VP

       

	
      Borrower:

       

      RIXON
      NETWORKS, INC.

       

       

      By
      /s/Kanwar Chadha

      President
      

       

      By
      /s/ Davinder Sethi

      Secretary
      or Ass't Secretary
	
      Borrower:

       

      SYNC
      RESEARCH, INC.

       

       

      By
      /s/Kanwar Chadha

        President
      

       

      By
      /s/ Davinder Sethi 

      Secretary
      or Ass't Secretary 

	
      Borrower:

       

      TORREY
      PINES NETWORKS, INC.

       

       

      By
      /s/Kanwar Chadha 

      President
      

       

      By/s/
      Davinder Sethi 

      Secretary
      or Ass't Secretary
	
      Borrower:

       

      MICROTEK
      SYSTEMS, INC.

       

       

      By
      /s/Kanwar Chadha CEO

       

      By
      /s/ Davinder Sethi 

      Secretary
      or Ass't SecretaryEarnings release for Fiscal 2005

Exhibit
10.7

 Contact
Information:

Jim
Loofbourrow

Entrada
Networks

(858)
597-1102 x108

jloofbourrow@entradanet.com

Entrada
Networks Announces Fourth Quarter & Year End Results

 

    San Diego,
CA-
(Business Wire)- May 16, 2005-- Entrada Networks, Inc. (OTCBB: ESAN) enabling
the future of data convergence through high-speed networking and storage
solutions, announced today results for the fourth quarter and fiscal year ended
January 31, 2005. 

    Entrada
reported revenues for the fourth quarter ended January 31, 2005 of $1.14
million, compared with $0.5 million for the fourth quarter of the prior fiscal
year, an increase of 116%. The Company reported a net loss of $1.5 million, or
$0.10 per share, compared with a net loss of $1.4 million, or $0.10 per share,
in the comparable quarter of the prior fiscal year. 

    For the year
ended January 31, 2005, the Company reported revenues of $4.1 million, or a
revenue decline of 34% when compared with total revenues of $6.2 million for the
prior fiscal year. The Company reported a net loss of $3.9 million or $0.26 per
share, compared with a net loss of $2.0 million, or a loss of $0.15 per share in
the prior fiscal year. 

    The financial
results for the fourth quarter and the fiscal year ended January 31, 2005,
include the operations of Microtek Systems, Inc., which the Company acquired
through its subsidiary Torrey Pines Networks, Inc. on May 14, 2004. With the
addition of Microtek the Company has grown to employ 30 people across three
locations: San Diego and Lake Forest in California, and Milwaukee, Wisconsin

    The decline
in annual revenue reflects the loss of business from Cisco Systems partly offset
by the revenues attained from the acquisition of Microtek Systems from May 2004.
The inclusion of Microtek Systems and the cost containment measures helped the
Company to improve or maintain (based on the inclusion of write downs in
inventory in the prior year) its gross profit margin despite the temporal
decline in annual revenue. The increase in net loss for the fiscal year ended
January 31, 2005 primarily reflects the $1.4 million of charges attributable to
interest expense and expenses related to the value of warrants issued in
connection with debt financing arrangements and service contracts, and other
charges and fees associated with debt financings as well as the acquisition of
Microtek Systems. 

Letter
To The Shareholders from Dr. Kanwar J.S. Chadha,
Chairman

Dear
Entrada Shareholders,

Fiscal
year 2005, ended January 31, 2005, was marked by a unique set of challenges. We
started the year with a significantly reduced revenue base resulting from the
loss of Cisco Systems’ business in the prior year. While we were mitigating the
impact on our business through cost and expense reductions, it became imperative
to grow our revenue base and grow quickly.

We
aggressively pursued our strategy to acquire and develop companies that
specialize in storage based applications, such as security and disaster
recovery, and provide solutions and services that inherently show recurring
revenue stream and higher profit margins. The first step in the implementation
of our strategy was manifest when, through our Torrey Pines subsidiary, we
acquired Microtek Systems, Inc., in May 2004. Microtek Systems is a leading
provider of security, digital imaging, information infrastructures and storage
solutions to customers primarily in the mid-west.

 

Today,
the focal point of our business development efforts are in our Torrey Pines
subsidiary.  We have announced the availability of a sixteen channel Metro
Area Transport Platform based on Coarse Wave Division Multiplexing (CWDM)
technology. Our line of CWDM products, including 8 and 16 channel modules that
support 2.5 Gbps data rates, provide passive optical network service operators a
cost effective means to support high bandwidth build-outs in enterprise access
and metropolitan area networks. This product family offers a robust solution and
compelling value in applications as diverse as connecting data centers and post
production facilities of film studios, and aggregating data and video traffic
for universities, corporate campuses and cable operators. And, most importantly,
we have started shipping our SilverlineTM-CWDM-400, an 8-channel 4-port product
line, to a number of significant customers. 

In our
legacy businesses, we continue to manufacture and sell a line of fast and
gigabit Ethernet adapter cards, as well as routers, service channel and data
channel units, to large networking OEMs. And, we continue to manufacture, sell
and service a line of frame relay access devices and routers to financial
institutions. You can learn more about our products and services by visiting us
at www.EntradaNetworks.com
..

Looking
ahead, we have embarked on a major effort to establish and build a storage
centric business through Torrey Pines. We are engaged in establishing this
business organically, as well as we are talking to select acquisition
candidates. In parallel, we are seeking additional financing that shall provide
for development and working capital, acquisition financing, and the retirement
of the $1.8 million debt that we raised in the last fiscal year.

     

Thank you
for your continued support.

Sincerely,

 

Kanwar
J.S. Chadha, Ph. D.

Chairman,
President & CEO

About
Entrada Networks, Inc.

Entrada
Networks is enabling the future of high-speed data convergence by developing
networking solutions that carry business information, filmed entertainment and
other traffic across broad geographical areas. Entrada develops and markets
products and solutions in the storage networking and network connectivity
industries through several subsidiaries, each bringing best-of-breed technology
solutions for mission-critical networking applications for the entertainment
industry, higher education, cable operators and the world's largest corporate
data systems. Entrada's operating subsidiaries include Torrey Pines Networks,
Inc., Rixon Networks, Inc., Microtek Systems Inc., and Sync Research, Inc.
Torrey Pines Networks specializes in the design and development of its storage
and metropolitan area networks transport product line, SilverlineTM, which is
primarily designed to: 1) interconnect geographically separate data centers and
post production facilities of film studios; and 2) aggregate different types of
data or video traffic for university campuses, cable operators or companies with
a significant price/feature advantage. Microtek Systems provides security,
digital imaging, storage and disaster recovery solutions to address the needs of
Fortune 5000 companies. Rixon Networks manufactures and sells Fast Ethernet and
Gigabit Ethernet adapter cards that are purchased by large networking original
equipment manufacturers as original equipment for servers, and other computer
and telecommunications products. Sync Research manufactures and services frame
relay products for some of the major financial institutions in the U.S and
abroad. Entrada is headquartered in San Diego, CA. For more company information
please visit http://www.EntradaNetworks.com/

Safe
Harbor

Except
for the historical information contained herein, the matters set forth in this
press release, including statements as to management's intentions, hopes,
beliefs, expectations, representations, projections, plans or predictions of the
future, are forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995. Since these forward-looking statements involve risks and uncertainties and
are subject to change at any time, Entrada Networks' actual results could differ
materially from expected results. These forward-looking statements speak only as
of the date hereof. Entrada Networks undertakes no obligation to publicly update
or revise forward-looking statements, whether as a result of new information or
otherwise. Various factors could cause actual results to differ materially, such
as the risk factors listed from time to time in Entrada Networks' filings with
the SEC, including but not limited to Entrada Networks' Form 10-K for the fiscal
year ended January 31, 2004, filed with the SEC on May 14, 2004, and subsequent
quarterly reports on Form 10-QSB.

	
      ENTRADA
      NETWORKS, INC.
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      AND
      SUBSIDIARIES
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      CONSOLIDATED
      STATEMENTS OF OPERATIONS 
	 	 	 	 	 	 
	
      (In
      Thousands, except per share amounts)
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
       
	 	
      Three
      months ended 
	
      Twelve
      months ended

	
       
	 	 	
      January
      31, 
	 	 	 	 	 	
      January
      31,
	 	 	 	 
	 	 	 	
      2005
	 	 	
      2004
	 	 	
      2005
	 	 	
      2004
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
      NET
      REVENUES
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
          
      PRODUCT
	 	
      $
	
      854
	 	
      $
	
      298
	 	
      $
	
      2,623
	 	
      $
	
      5,224
	 
	
          
      SERVICES
	 	
      $
	
      287
	 	 	
      231
      
	 	
      $
	
      1,501
	 	 	
      997
      
	 
	
               
      TOTAL NET REVENUES
	 	 	
      1,141
      
	 	 	
      529
      
	 	 	
      4,124
      
	 	 	
      6,221
      
	 
	
      COST
      OF REVENUE
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
          
      PRODUCT
	 	
      $
	
      463
	 	 	
      1,433
      
	 	
      $
	
      1,769
	 	 	
      4,532
      
	 
	
          
      SERVICES
	 	
      $
	
      132
	 	 	
      79
      
	 	
      $
	
      685
	 	 	
      326
      
	 
	
               
      TOTAL COST OF REVENUE
	 	 	
      595
      
	 	 	
      1,512
      
	 	 	
      2,454
      
	 	 	
      4,858
      
	 
	
      GROSS
      PROFIT
	 	 	
      546
      
	 	 	
      (983
	
      )
	 	
      1,670
      
	 	 	
      1,363
      
	 
	
      OPERATING
      EXPENSES
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
          
      Selling and marketing
	 	
      $
	
      141
	 	 	
      66
      
	 	
      $
	
      696
	 	 	
      456
      
	 
	
          
      Engineering, research and development
	 	
      $
	
      176
	 	 	
      209
      
	 	
      $
	
      853
	 	 	
      1,150
      
	 
	
          
      General and administrative
	 	
      $
	
      902
	 	 	
      237
      
	 	
      $
	
      2,601
	 	 	
      1,457
      
	 
	
          
      Other operating expenses
	 	
      $
	
      -
	 	 	
      0
      
	 	
      $
	
      -
	 	 	
      341
      
	 
	
               
      TOTAL OPERATING EXPENSES
	 	 	
      1,219
      
	 	 	
      512
      
	 	 	
      4,150
      
	 	 	
      3,404
      
	 
	
      LOSS
      FROM OPERATIONS
	 	 	
      (673
	
      )
	 	
      (1,495
	
      )
	 	
      (2,480
	
      )
	 	
      (2,041
	
      )

	
      OTHER
      CHARGES/ INCOME
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
          
      Interest expense, net
	 	
      $
	
      (836
	
      )
	 	
      (1
	
      )
	
      $
	
      (1,399
	
      )
	 	
      (14
	
      )

	
          
      Other income
	 	
      $
	
      26
	 	 	
      55
      
	 	
      $
	
      27
	 	 	
      71
      
	 
	
                TOTAL
      OTHER CHARGES/ INCOME
	 	 	
      (810
	
      )
	 	
      54
      
	 	 	
      (1,372
	
      )
	 	
      57
      
	 
	
       

      NET
      LOSS
	 	
      $
	
      (1,483
	
      )
	
      $
	
      (1,441
	
      )
	
      $
	
      (3,852
	
      )
	
      $
	
      (1,984
	
      )

	
       

      LOSS
      PER COMMON SHARE:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	
        
      WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
	 	 	 	 	 	 	 	 	 
	
          
      BASIC
	 	 	
      15,430
	 	 	
      13,901
	 	 	
      14,907
	 	 	
      13,528
	 
	
          
      DILUTED
	 	 	
      15,430
	 	 	
      13,901
	 	 	
      14,982
	 	 	
      13,528
	 
	
       
      BASIC AND DILUTED NET LOSS PER COMMON SHARE
	 	 	 	 	 	 	 	 	 
	
          
      BASIC
	 	 	
      (0.10
	
      )
	 	
      (0.10
	
      )
	 	
      (0.26
	
      )
	 	
      (0.15
	
      )

	
          
      DILUTED
	 	 	
      (0.10
	
      )
	 	
      (0.10
	
      )
	 	
      (0.26
	
      )
	 	
      (0.15
	
      )

	
      ENTRADA
      NETWORKS, INC.
	 	 	 	 	 	 	 
	
      AND
      SUBSIDIARIES
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
      CONSOLIDATED
      BALANCE SHEETS
	 	 	 	 	 	 	 
	
      (In
      Thousands)
	 	 	 	 	 	 	 
	
       
	 	 	
      January
      31, 2005 
	 	 	
      January
      31, 2004
	 
	
      ASSETS
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
      CURRENT
      ASSETS
	 	 	 	 	 	 	 
	
          
      Cash and equivalents
	 	
      $
	
      148
	 	
      $
	
      72
	 
	
          
      Short-term investments
	 	
      $
	
      -
	 	 	
      -
	 
	
          
      Accounts receivable, net
	 	
      $
	
      596
	 	 	
      561
      
	 
	
          
      Inventory, net
	 	
      $
	
      2,154
	 	 	
      2,294
      
	 
	
          
      Deferred costs 
	 	 	
      960
	 	 	 	 
	
       

          
      Prepaid expenses and other current assets
	 	
      $
	
      444
	 	 	
      350
      
	 
	
               
      TOTAL CURRENT ASSETS
	 	 	
      4,302
      
	 	 	
      3,277
      
	 
	
      PROPERTY
      AND EQUIPMENT, NET
	 	
      $
	
      496
	 	 	
      590
      
	 
	
      GOODWILL
	 	
      $
	
      1,135
	 	 	 	 
	OTHER
      ASSETS	 	 	 	 	 	 	 
	
          
      Deposits
	 	
      $
	
      23
	 	 	
      39
      
	 
	
               
      TOTAL OTHER ASSETS
	 	 	
      23
      
	 	 	
      39
      
	 
	
      TOTAL
      ASSETS
	 	$
	
      5,956
	 	$
	
      3,906
	 
	
      LIABILITIES
      AND STOCKHOLDERS' EQUITY
	 	 	 	 	 	 	 
	
      CURRENT
      LIABILITIES
	 	 	 	 	 	 	 
	
          
      Short-term debt
	 	 	 	 	 	 	 
	
          
      Bank
	 	
      $
	
      295
	 	 	
      65
      
	 
	
          
      Other
	 	
      $
	
      1,819
	 	 	
      
	 
	
               
      Total Short Term Debt
	 	 	
      2,114
      
	 	 	
      65
      
	 
	
          
      Current maturities of long term debt
	 	
      $
	
      -
	 	 	
      -
      
	 
	
          
      Accounts payable
	 	
      $
	
      691
	 	 	
      383
      
	 
	
          
      Deferred Revenue
	 	
      $
	
      1,135
	 	 	
      394
	 
	
          
      Other current and accrued liabilities
	 	
      $
	
      498
	 	 	
      265
      
	 
	
               
      TOTAL CURRENT LIABILITIES
	 	 	
      4,438
      
	 	 	
      1,107
      
	 
	
      TOTAL
      LIABILITIES
	 	 	
      4,438
      
	 	 	
      1,107
      
	 
	
      STOCKHOLDERS'
      EQUITY
	 	 	 	 	 	 	 
	
          
      Common stock, $.001 par value;150,000 shares authorized; 15,430
      shares
	 	 	 
	
               
      issued and outstanding at January 31, 2005; 13,901 shares
      issued
	 	 	 	 	 	 	 
	
               
      and outstanding at January 31, 2004
	 	
      $
	
      14
	 	 	
      13
      
	 
	
          
      Treasury Stock
	 	
      $
	
      (26
	
      )
	 	
      (127
	
      )

	
          
      Additional paid-in capital
	 	
      $
	
      54,523
	 	 	
      52,001
      
	 
	
          
      Accumulated deficit
	 	
      $
	
      (52,993
	
      )
	 	
      (49,088
	
      )

	 	 	 	 	 	 	 	 
	
      TOTAL
      STOCKHOLDERS' EQUITY
	 	 	
      1,518
      
	 	 	
      2,799
      
	 
	
       

      TOTAL
      LIABILITIES AND STOCKHOLDERS' EQUITY
	 	$
	
      5,956
	 	$
	
      3,906

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]