continued improvements in desktop and enterprise computing price to performance ratios

EX-10.73 6 f88421exv10w73.txt EXHIBIT 10.73 Exhibit 10.73 The Bank of Nova Scotia 10 Collyer Quay #15-01 Ocean Building Singapore 049315 Tel: (65) 535 8688 Fax: (65) 438-3314 (Credit & Marketing) [SCOTIABANK LOGO] January 16, 2003 Maxtor Peripherals (S) Pte Ltd No. 2 Ang Mo Kio Street 63 Ang Mo Kio Street Park 3 Singapore 569111 Attention: Mr. Tiong Chi Sieng, Vice President - Finance Ms. Tan Hui Yah, Director - Finance Dear Sirs: BANK GUARANTEE FACILITY OF SGD17,250,000 DELETION OF THE CONSOLIDATED TANGIBLE NETWORTH COVENANT 1. We refer to the long-term Bank Guarantee Facility of up to SGD17,250,000 (current outstanding amount) ("the Facility") granted under the Guarantee Facility Agreement dated 31 August 1999 as amended by our letter dated 13 September 1999, an Amendment Agreement dated 23 February 2001 a Supplemental Agreement dated 2 May 2001, a Second Supplementary Agreement dated 29 January 2002 and our Amendment Letters dated 15 February 2002, 20 June 2002 and 22 October 2002 (the Guarantee Facility Agreement as amended, "the Facility Agreement"), and the Security Over Cash Agreement dated 8 September 1999. 2. Subject to your Company's acceptance of this letter, we are pleased to advise that at your request, The Bank of Nova Scotia, Singapore Branch ("the Bank"), shall delete the Consolidated Tangible Networth covenant under Clause 15.1.2 of the Facility Agreement. 3. Save for the above, all other terms and conditions stipulated in the Facility Letter and security document stated in Paragraph 1 above shall remain unchanged. 4. An Amendment Fee of US$5,000 (to be billed in SGD equivalence) shall be payable to the Bank after your acceptance of this Letter but no later than 30 January 2003. Maxtor Peripherals (S) Pte Ltd January 16,2003 Bank Guarantee Facility Of SGD17,250,000 _____________________________________________________________________________ 5. This letter shall supercede our letter dated 7 January 2003. If the above are acceptable, please sign and return to us the enclosed copy of this Amendment Letter together with your Company's Board Resolution accepting this Amendment Letter by 30 January 2003, after which this offer shall lapse unless an extension is granted by the Bank in writing. Yours faithfully, /s/ Wah Sun Seong Koon Wah Sun Seong Koon Country Head, VP & Branch Manager We hereby accept and further undertake to observe all the terms and conditions set out and incorporated in this letter. We also hereby confirm that the existing charges over cash deposits under the Security Over Cash Agreement dated 8 September 1999 shall continue to secure the aforesaid all monies payable in connection with the Facility notwithstanding the amendments set out above, or in the subsequent legal documentation (if any). MAXTOR PERIPHERALS (S)PTE LTD /s/ TIONG CHI SIENG Tiong Chi Sieng, Vice President, Finance Company Stamp & Authorized Signatory(ies) 29 January 2003 for and on behalf of Maxtor Peripherals (S)Pte Ltd Date .