THIRD AMENDMENT
TO
THIRD AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
(this “Amendment”) is entered into this 10th day of February 2016, by and
between SILICON VALLEY BANK, a California banking corporation (“Bank”) and
QUICKLOGIC CORPORATION, a Delaware corporation (“Borrower”) whose address is
1277 New Orleans Drive, Sunnyvale, CA 94089-1138.
RECITALS
A.    Bank and Borrower have entered into that certain Third Amended and
Restated Loan and Security Agreement dated as of June 30, 2014, as amended by
that certain First Amendment to Third Amended and Restated Loan and Security
Agreement dated as of September 26, 2014 and that certain Second Amendment to
Third Amended and Restated Loan and Security Agreement dated as of September 25,
2015 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement”).
B.    Bank has extended credit to Borrower for the purposes permitted in the
Loan Agreement.
C.    Borrower has requested that Bank amend the Loan Agreement to make certain
revisions, each as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but
only to the extent, in accordance with the terms, subject to the conditions and
in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, and intending to be legally bound, the parties hereto agree as
follows:
1.Definitions. Capitalized terms used but not defined in this Amendment shall
have the meanings given to them in the Loan Agreement.
2.    Amendments to Loan Agreement.

2.1    Section 6.8 (Financial Covenants). Section 6.8 of the Loan Agreement is
hereby amended and restated in its entirety and replaced with the following:

1
BN 20141340v4

--------------------------------------------------------------------------------

“6.8    Financial Covenants. Borrower will comply with each of the following
financial covenants:
(a)    Tangible Net Worth. A Tangible Net Worth, tested as of the last day of
each month, of at least the amount set forth below in the applicable row:
Test Date
Tangible Net Worth
February 29, 2016
The amount equal to the sum of:
(i) $12,000,000 plus 
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower
March 31, 2016
The amount equal to the sum of:
(i) $12,000,000 plus 
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower
April 30, 2016 through
June 30, 2016
The amount equal to the sum of:
(i) $10,000,000 plus
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower
July 31, 2016 through
September 30, 2016
The amount equal to the sum of:
(i) $8,000,000 plus
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower
October 31, 2016 through
December 31, 2016
The amount equal to the sum of:
(i) $6,000,000 plus
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower
January 31, 2017 through
March 31, 2017
The amount equal to the sum of:
(i) $4,000,000 plus
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower

2
BN 20141340v4

--------------------------------------------------------------------------------

April 30, 2017 through
June 30, 2017
The amount equal to the sum of:
(i) $8,000,000 plus
(ii) 50% of the amount of all proceeds from any equity issuance of Borrower,
plus 
(iii) 50% of the amount of all proceeds from any investment of Borrower

(b)    Quick Ratio (Adjusted). Borrower will maintain a ratio, tested as of the
last day of each month, of (a) Quick Assets to (b) the result of (i) Current
Liabilities minus (ii) the current portion of Deferred Revenue plus (iii) the
long-term portion of the Obligations, of at least the amount set forth below in
the applicable row.

Test Date
Quick Ratio (Adjusted)

February 29, 2016 through
March 31, 2016
2.00 to 1.00
April 30, 2016 through
June 30, 2016
2.00 to 1.00
July 31, 2016 through
September 30, 2016
1.50 to 1.00
October 31, 2016 through
December 31, 2016
1.50 to 1.00
January 31, 2017 through
March 31, 2017
1.25 to 1.00
April 30, 2017 through
June 30, 2017
1.25 to 1.00

(c)    Cash. Unrestricted cash or Cash Equivalents at Bank or at any of Bank’s
Affiliates at all times in an amount of at least $6,000,000.”
2.2    Section 13 (Definitions).

3
BN 20141340v4

--------------------------------------------------------------------------------

(a)    Current Liabilities. The definition of “Current Liabilities” set forth in
Section 13.1 of the Loan Agreement is hereby amended and restated in its
entirety and replaced with the following
““Current Liabilities” are all obligations and liabilities of Borrower to Bank,
plus, without duplication, (i) the aggregate face value of all outstanding
letters of credit, and (ii) the aggregate amount of Borrower’s Total Liabilities
that mature within one (1) year.”
2.3    Exhibits. Exhibit C of the Loan Agreement is hereby amended and restated
in its entirety with Exhibit C set forth in Exhibit A attached hereto.  
3.    Limitation of Amendments.
3.1    The amendments set forth in Section 2, above, are effective for the
purposes set forth herein and shall be limited precisely as written and shall
not be deemed to (a) be a consent to any amendment, waiver or modification of
any other term or condition of any Loan Document, or (b) otherwise prejudice any
right or remedy which Bank may now have or may have in the future under or in
connection with any Loan Document.
3.2    This Amendment shall be construed in connection with and as part of the
Loan Documents and all terms, conditions, representations, warranties, covenants
and agreements set forth in the Loan Documents, except as herein amended, are
hereby ratified and confirmed and shall remain in full force and effect.
4.    Representations and Warranties. To induce Bank to enter into this
Amendment, Borrower hereby represents and warrants to Bank as follows:
4.1    Immediately after giving effect to this Amendment (a) the representations
and warranties contained in the Loan Documents are true, accurate and complete
in all material respects as of the date hereof (except to the extent such
representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;
4.2    Borrower has the power and authority to execute and deliver this
Amendment and to perform its obligations under the Loan Agreement, as amended by
this Amendment;
4.3    The organizational documents of Borrower delivered to Bank on the Closing
Date remain true, accurate and complete and have not been amended, supplemented
or restated and are and continue to be in full force and effect;
4.4    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, have been duly authorized;
4.5    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, do not

4
BN 20141340v4

--------------------------------------------------------------------------------

and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower,
(c) any order, judgment or decree of any court or other governmental or public
body or authority, or subdivision thereof, binding on Borrower, or (d) the
organizational documents of Borrower;
4.6    The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended
by this Amendment, do not require any order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or
exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except as already has been obtained or
made; and
4.7    This Amendment has been duly executed and delivered by Borrower and is
the binding obligation of Borrower, enforceable against Borrower in accordance
with its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium or other similar laws of
general application and equitable principles relating to or affecting creditors’
rights.
5.    Integration. This Amendment and the Loan Documents represent the entire
agreement about this subject matter and supersede prior negotiations or
agreements. All prior agreements, understandings, representations, warranties,
and negotiations between the parties about the subject matter of this Amendment
and the Loan Documents merge into this Amendment and the Loan Documents.
6.    Counterparts. This Amendment may be executed in any number of counterparts
and all of such counterparts taken together shall be deemed to constitute one
and the same instrument.
7.    Effectiveness. This Amendment shall be deemed effective upon the due
execution and delivery to Bank of this Amendment by each party hereto.
[Signature Pages Follow]

5
BN 20141340v4

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

BANK
BORROWER

SILICON VALLEY BANK

//sd//:  Wendy Wong_______________________
Name: Wendy Wong_____________________
Title:  Vice President_____________________

QUICKLOGIC CORPORATION

//sd//:  Suping (Sue) Cheung
Name: _Suping (Sue) Cheung
Title:  Principal Accounting Officer and Corporate Controller

 

    
THIRD AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

--------------------------------------------------------------------------------

EXHIBIT A

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE
QUICKLOGIC CORPORATION
TO:
SILICON VALLEY BANK

3003 Tasman Drive
Santa Clara, CA 95054

FROM:
QUICKLOGIC CORPORATION

1227 Orleans Drive
Sunnyvale, CA 94089-1138

The undersigned authorized officer (“Officer”) of QuickLogic Corporation
(“Borrower”) certifies that under the terms and conditions of the Third Amended
and Restated Loan and Security Agreement between Borrower and Silicon Valley
Bank (as amended, restated, supplemented or other modified from time to time,
the “Agreement”), (i) Borrower is in complete compliance for the period ending
_______________ with all required covenants except as noted below and (ii) all
representations and warranties in the Agreement are true and correct in all
material respects on this date, except for representations and warranties made
as of a specific earlier date, which are to be true and correct in all material
respects as of such earlier date. Attached are the required documents supporting
the certification. The Officer certifies that these are prepared in accordance
with Generally Accepted Accounting Principles (GAAP) consistently applied from
one period to the next except as explained in an accompanying letter, footnotes
or year-end adjustments. The Officer acknowledges that no borrowings may be
requested at any time or date of determination that Borrower is not in
compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.
Please indicate compliance status by circling Yes/No under “Complies” column.
Reporting and Financial Covenants
Required
Complies
Monthly financial statements, Compliance Certificate
Monthly within 45 days
Yes
No
Board Approved Projections
Annual within 60 days of FYE or the date provided to Borrowers’ Board
Yes
No
Accounts Payable and Accounts Receivable Listings
Within 30 days of the end of each month
Yes
No
10-Q, 10-K, and 8-K
Within 5 days after filing with SEC
Yes
No
Minimum Tangible Net Worth
Monthly; ≥ [______]
Yes
No
Quick Ratio Adjusted
Monthly; ≥ [______]
Yes
No
Minimum Cash
Monthly; ≥ $6,000,000
Yes
No
Have there been updates to Borrower’s intellectual property, if appropriate?
Yes
No

Exhibit A
BN 20141340v4

--------------------------------------------------------------------------------

The following financial covenant analys[is][es] and information set forth in
Schedule 1 attached hereto are true and accurate as of the date of this
Certificate.

The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”)

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

[Signature page follows]

QUICKLOGIC CORPORATION

By:                  
Name:                  
Title:                  

BANK USE ONLY

Received by:            
AUTHORIZED SIGNER
Date:                  

Verified:               
AUTHORIZED SIGNER
Date:                  

Compliance Status: Yes No

Exhibit A
BN 20141340v4

--------------------------------------------------------------------------------

Schedule 1 to Compliance Certificate
Financial Covenants of Borrower

Calculations as of:    ____________________

I.    TANGIBLE NET WORTH (Section 6.8(a))

Required:             

A.

Applicable Amount from Section 6.8(a)

$[__,000,000]
B.
50% of proceeds from any equity issuance of Borrower
$__________
C.
50% of proceeds from any investments of Borrower
$__________
D.
Required Amount (line A + line B + line C)
$__________

Actual:

E.
Borrower’s actual Tangible Net Worth
$__________
 
 
 

Is line E equal to or greater than line D?

¨ No, not in compliance    ¨ Yes, in compliance

II.    ADJUSTED QUICK RATIO (Section 6.8(b))

Required: Insert Applicable Amount from Section 6.8(b)                $_________
Actual:

Exhibit A
BN 20141340v4

--------------------------------------------------------------------------------

A.
Aggregate value of the unrestricted cash and cash equivalents of
Borrower and its Subsidiaries held at Bank
$__________
B.
Aggregate value of the net billed accounts receivable of Borrower
and its Subsidiaries
$__________
C.
Aggregate value of the Investments with maturities of fewer than 12 months of
Borrower and its Subsidiaries held at Bank or its affiliates
$__________
D.
Quick Assets (the sum of lines A through C)
$__________
E.
Current Liabilities
$__________
F.
the current portion of Deferred Revenue
$__________
G.
the long-term portion of the aggregate value of Obligations to Bank
$__________
H.
line E minus line F plus line G minus
$__________
J.
Quick Ratio (line D divided by line H)
$__________

Is line J equal to or greater than amount required pursuant to Section 6.8(b)?

¨ No, not in compliance    ¨ Yes, in compliance

III.    CASH (Section 6.8(c))

Required:    $6,000,000

Actual:

A.
Value of Line III. (Cash)
$__________

Is line A equal to or greater than $6,000,000?

¨ No, not in compliance    ¨ Yes, in compliance

Exhibit A
BN 20141340v4

--------------------------------------------------------------------------------

[modifieddocumentthird_image1.jpg]

PRO FORMA INVOICE FOR LOAN CHARGES

BORROWER:
QUICKLOGIC CORPORATION

LOAN OFFICER:        ____________

DATE:                ____________

Loan Fee    $_____
Documentation Fee    _____

TOTAL FEES DUE    $______

{ } A check for the total amount is attached.

{ } Debit DDA # __________________ for the total amount.

    

BORROWER:

                    
Authorized Signer        (Date)

SILICON VALLEY BANK

                    
Loan Officer Signature        (Date)