SECOND MODIFICATION OF BUSINESS LOAN AGREEMENT
THIS AGREEMENT is made this 5th day of September, 2003, between Commerce Bank/Shore, N.A., whose address is 1701
Route 70 East, Cherry Hill, New Jersey 08054 (hereinafter, the “Bank”) and Tellium, Inc., a Delaware corporation, whose address
is 2 Crescent Place, Oceanport, New Jersey 07757 (the “Borrower”).
BACKGROUND STATEMENT OF FACTS
On June 1, 2000, Borrower and Bank executed a Business Loan Agreement as subsequently amended by a Rider to
Business Loan Agreement dated July 30, 2001, as further amended by a Modification Of Business Loan Agreement dated June
30, 2003 (the “Loan Agreement”) which set forth the terms and conditions of a certain revolving line of credit loan described
therein from the Bank to the Borrower in the original principal amount of up to $10,000,000.00 (the “Loan”); (Note: All undefined
capitalized words used herein shall have the same meaning as set forth in the Loan Agreement.).
The Loan is evidenced by a Promissory Note in the original principal amount of up to $10,000,000.00 dated June 1, 2000,
which was subsequently amended by a Rider to Promissory Note dated July 30, 2001, as Amendment To Promissory Note dated
September 1, 2001 and a Second Amendment To Promissory Note dated June 30, 2003 (the “Note”).
The Borrower has previously requested extensions of the term of the Loan and the Bank has granted each such request.
The Borrower has now requested an additional extension and modification of the terms of the Loan.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Term :
The parties agree that the term of the Loan shall be extended to expire on January 1, 2004.
2. Collateral :
Notwithstanding anything to the contrary contained in this Agreement, the parties agree that all collateral, including
Commerce Bank Certificate of Deposit #14827, shall remain pledged to the Bank as collateral for the Loan.
3. Fees :
The parties agree to