EX-10.1






Exhibit 10.1




THIRD AMENDMENT TO CREDIT AGREEMENT




THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”), dated as of January 12, 2005,
among FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC., a Delaware corporation (“Holdings”), FAIRCHILD
SEMICONDUCTOR CORPORATION, a Delaware corporation (the “Borrower), the lenders party to the Credit
Agreement referred to below from time to time (the “Lenders”), and DEUTSCHE BANK TRUST COMPANY
AMERICAS, as Administrative Agent (in such capacity, the “Administrative Agent”). Unless otherwise
defined herein, capitalized terms used herein and defined in the Credit Agreement are used herein
as therein defined.



W I T N E S S E T H:




WHEREAS, Holdings, the Borrower, the Lenders, the Administrative Agent, the Syndication Agent
and the Co-Documentation Agents have entered into a Credit Agreement, dated as of June 19, 2003 (as
amended, modified or supplemented through, but not including, the date hereof, the “Credit
Agreement”); and



WHEREAS, subject to the terms and conditions set forth below, the parties hereto wish to amend
and/or modify certain provisions of the Credit Agreement as provided herein;




NOW, THEREFORE, it is agreed;



A. Amendments and Consent to the Credit Agreement



1. Section 1.01 of the Credit Agreement is hereby amended by inserting the following new
clause (g) at the end thereof:



“(g) On the Third Amendment Effective Date, all outstanding B-2 Term Loans of
each Lender that has theretofore executed and delivered a counterpart of the Third
Amendment to the Administrative Agent in accordance with the terms thereof (each
such Lender, a “Third Amendment Consenting Lender” and, collectively, the “Third
Amendment Consenting Lenders”) shall be automatically converted into new term loans
hereunder (each such term loan, a “Converted B-3 Term Loan” and, collectively, the
“Converted B-3 Term Loans”). On or after the Third Amendment Effective Date, each
Third Amendment Consenting Lender which holds a B-2 Term Note shall be entitled to
surrender such B-2 Term Note to the Borrower against delivery of a B-3 Term Note
completed in conformity with Section 1.05; provided that if any such B-2 Term Note
is not so surrendered, then from and after the Third Amendment Effective Date such
B-2 Term Note shall be deemed to evidence the Converted B-3 Term Loans into which
the B-2 Term Loans theretofore evidenced by such B-2 Term Note have been converted.
Subject to and upon the terms and conditions set forth herein, each Lender with a
B-3 Term Loan Commitment severally agrees to make a term loan or term loans (each,
an “Additional B-3 Term Loan” and, collectively, the “Additional B-3 Term Loans”
and, together with the Converted B-3 Term Loans, the “B-3 Term Loans”) to the
Borrower, which Additional B-3 Term Loans shall be incurred pursuant to a single
drawing on the Third Amendment Effective Date. All B-3 Term Loans (i) shall be
denominated in Dollars, (ii) except as hereinafter provided, shall, at the option of
the Borrower, be incurred and maintained as, and/or converted into, Base Rate Loans
or Eurodollar Loans, provided that, except as otherwise specifically
provided in Section 1.10(b), all B-3 Term Loans comprising the same Borrowing shall
at all times be of the same Type, and (iii) shall be made by each such Lender in
that aggregate principal amount which equals the B-3 Term Loan Commitment of such
Lender on the Third Amendment Effective Date. Once repaid, B-3 Term Loans incurred
hereunder may not be reborrowed. Notwithstanding anything to the contrary contained
in this Agreement (including, without limitation, in Section 4.02), the proceeds of
the Additional B-3 Term Loans shall be immediately applied by the Borrower to repay
all outstanding B-2 Term Loans of Third Amendment Non-Consenting Lenders (if any) on
the Third Amendment Effective Date before being used for the other purposes set
forth in Section 7.08(a).”



2. Section 1.03(a) of the Credit Agreement is hereby amended by inserting the text “, B-3 Term
Loans” immediately after the text “B-2 Term Loans” appearing in clause (iii) of the second sentence
of said Section.



3. Section 1.05(a) of the Credit Agreement is hereby amended by (i) deleting the word “and”
appearing at the end of clause (iv) of said Section and (ii) inserting the following new clause
(vi) immediately before the period appearing at the end of said Section:



“, and (vi) in the case of B-3 Term Loans, by a promissory note duly executed and
delivered by the Borrower substantially in the form of Exhibit B-6, with blanks
appropriately completed in conformity herewith (each a “B-3 Term Note” and,
collectively, the “B-3 Term Notes”)”.



4. Section 1.05(b) of the Credit Agreement is hereby amended by inserting the following new
sub-clause (D) at the end thereof.



“(D) The B-3 Term Note issued to each Lender that has a B-3 Term Loan
Commitment or outstanding B-3 Term Loans shall (i) be executed by the Borrower, (ii)
be payable to such Lender or its registered assigns and be dated the Third Amendment
Effective Date (or, if issued after the Third Amendment Effective Date, be dated the
date of issuance thereof), (iii) be in a stated principal amount equal to the B-3
Term Loans of such Lender on the Third Amendment Effective Date after giving effect
to any Additional B-3 Term Loans made by such Lender on such date (or, if issued
after the Third Amendment Effective Date, be in a stated principal amount equal to
the outstanding B-3 Term Loans of such Lender at such time) and be payable in the
outstanding principal amount of B-3 Term Loans evidenced thereby, (iv) mature on the
B-3 Term Loan Maturity Date, (v) bear interest as provided in the appropriate clause
of Section 1.08 in respect of the Base Rate Loans and Eurodollar Loans, as the case
may be, evidenced thereby, (vi) be subject to voluntary prepayment as provided in
Section 4.01, and mandatory repayment as provided in Section 4.02, and (vii) be
entitled to the benefits of this Agreement and the other Credit Documents.”



5. Section 1.07 of the Credit Agreement is hereby amended by (i) inserting the text “, B-3
Term Loans” immediately after the text “B-2 Term Loans” appearing in the first sentence of said
Section and (ii) inserting the text “, B-3 Term Loan Commitments” immediately after the text “B-2
Term Loan Commitments” appearing in the first sentence of said Section.



6. Section 3.03 of the Credit Agreement is hereby amended by inserting the following new
clause (f) at the end of said Section:



“(f) In addition to any other mandatory commitment reductions pursuant to this
Section 3.03, the Total B-3 Term Loan Commitment (and the B-3 Term Loan Commitment
of each Lender) shall terminate in its entirety on the Third Amendment Effective
Date (after giving effect to the incurrence of B-3 Term Loans on such date).”



7. Section 4.01(a) of the Credit Agreement is hereby amended by (i) inserting the text “ B-3
Term Loans,” immediately after the text “B-2 Term Loans,” appearing in clause (i) of said Section,
(ii) deleting the text “or B-2 Term Loans” appearing in clause (ii)(x) of said Section and
inserting the text “, B-2 Term Loans or B-3 Term Loans” in lieu thereof, (iii) deleting the word
“and” appearing at the end of clause (v) of said Section and (iv) inserting the text “; and (vii)
each voluntary prepayment of B-3 Term Loans pursuant to this Section 4.01(a) shall be applied to
reduce the then remaining B-3 Scheduled Repayments on a pro rata basis (based upon
the then remaining unpaid principal amounts of such B-3 Scheduled Repayments after giving effect to
all prior reductions thereto)” immediately after clause (vi) of said Section.



8. Section 4.01(b) of the Credit Agreement is hereby amended by inserting the following new
sentence at the end thereof:



“Each prepayment of any B-3 Term Loans pursuant to this Section 4.01(b) shall be
applied to reduce the then remaining B-3 Scheduled Repayments of the B-3 Term Loans
on a pro rata basis (based upon the then remaining unpaid principal amounts of such
B-3 Scheduled Repayments after giving effect to all prior reductions thereto).”



9. Section 4.02(b) of the Credit Agreement is hereby amended by inserting the following new
sub-clause (iv) at the end of said Section:



“(iv) In addition to any other mandatory repayments pursuant to this Section
4.02, on each date set forth below (each, a “B-3 Scheduled Repayment Date”), the
Borrower shall be required to repay that principal amount of B-3 Term Loans, to the
extent then outstanding, as is set forth below opposite each such date (each such
repayment, as the same may be reduced as provided in Sections 4.01(a), 4.01(b) or
4.02(g), a “B-3 Scheduled Repayment”):



	 	 	 	 	 
	B-3 Scheduled Repayment Date	 	Amount
	March 31, 2005

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2005

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2005

	 	$	1,125,000	 
	 
	 	 	 	 
	December 31, 2005

	 	$	1,125,000	 
	 
	 	 	 	 
	March 31, 2006

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2006

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2006

	 	$	1,125,000	 
	 
	 	 	 	 
	December 31, 2006

	 	$	1,125,000	 
	 
	 	 	 	 
	March 31, 2007

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2007

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2007

	 	$	1,125,000	 
	 
	 	 	 	 
	December 31, 2007

	 	$	1,125,000	 
	 
	 	 	 	 
	March 31, 2008

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2008

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2008

	 	$	1,125,000	 
	 
	 	 	 	 
	December 31, 2008

	 	$	1,125,000	 
	 
	 	 	 	 
	March 31, 2009

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2009

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2009

	 	$	1,125,000	 
	 
	 	 	 	 
	December 31, 2009

	 	$	1,125,000	 
	 
	 	 	 	 
	March 31, 2010

	 	$	1,125,000	 
	 
	 	 	 	 
	June 30, 2010

	 	$	1,125,000	 
	 
	 	 	 	 
	September 30, 2010

	 	$	1,125,000	 
	 
	 	 	 	 
	B-3 Term Loan Maturity Date

	 	$	424,125,000”.	 







10. Section 4.02(e) of the Credit Agreement is hereby amended by deleting the amount
“$25,000,000” appearing therein and inserting the amount “$50,000,000” in lieu thereof.



11. Sections 4.02(c), 4.02(d), 4.02(e) and 4.02(f) of the Credit Agreement are each hereby
amended by (i) deleting the word “or” immediately before sub-clause (II) each place such word
appears in each such Section and (ii) inserting the following new text immediately after the text
“outstanding B-2 Term Loans” each place such text appears in each such Section:



“,or (III) the Third Amendment Effective Date, outstanding B-3 Term Loans.”



12. Section 4.02(g) of the Credit Agreement is hereby amended by inserting the following new
sentence at the end thereof:



“The amount of each principal repayment of B-3 Term Loans made as required by
Sections 4.02(c), (d), (e) and (f) shall be applied to reduce the then remaining B-3
Scheduled Repayments on a pro rata basis (based upon the then
remaining unpaid principal amounts of such B-3 Scheduled Repayments after giving
effect to all prior reductions thereto).”



13. Section 4.02(i) of the Credit Agreement is hereby amended by (i) deleting the word “and”
appearing at the end of clause (v) thereof and inserting the text “, (vi) all then outstanding B-3
Term Loans shall be repaid in full on the B-3 Term Loan Maturity Date and” in lieu thereof and (ii)
re-designating clause (vi) thereof as clause “(vii)”.



14. Section 7.08(a) of the Credit Agreement is hereby amended by inserting the following new
sentence at the end of said Section:



“All proceeds of the Additional B-3 Term Loans will be used by the Borrower (i)
first, to repay outstanding B-2 Term Loans of Third Amendment Non-Consenting Lenders
(if any) on the Third Amendment Effective Date, and (ii) second, to defease and
redeem the outstanding 10-1/2% Senior Subordinated Notes as contemplated by Section
B.5(iv) of the Third Amendment.”



15. The proviso appearing in the last sentence of Section 8.01(i) of the Credit Agreement is
hereby amended by inserting the text “and prior to the Third Amendment Effective Date” immediately
after the words “the Second Amendment Effective Date” appearing in clause (y) thereof.



16. Section 9.01 of the Credit Agreement is hereby amended by (i) deleting the word “and”
appearing at the end of clause (xviii) thereof, (ii) inserting the text “and the following
paragraph (xx), in each case” immediately after the text “paragraphs (i) through (xviii)” appearing
in clause (xix) thereof, (iii) deleting the period appearing at the end of clause (xix) thereof and
inserting “; and” in lieu thereof and (iv) inserting the following new clause (xx) at the end
thereof:



“(xx) licenses and sublicenses of intellectual property among the Borrower and its
Wholly-Owned Subsidiaries.”



17. Section 9.02(v) of the Credit Agreement is hereby amended by deleting the amount
“$25,000,000” appearing therein and inserting the amount “$50,000,000” in lieu thereof.



18. Section 9.02(xi) of the Credit Agreement is hereby amended by (i) deleting the number “45”
appearing therein and inserting the number “90” in lieu thereof and (ii) deleting the word “and”
appearing at the end thereof.



19. Section 9.02 of the Credit Agreement is hereby further amended by (i) deleting the
period appearing at the end of clause (xii) thereof and inserting “; and” in lieu thereof
and (ii) inserting the following new clause (xiii) at the end thereof:




“(xiii) the Borrower and its Subsidiaries may grant licenses or sublicenses of
intellectual property to the Borrower and its Wholly-Owned Subsidiaries so long as no such
grant otherwise restricts any Credit Party’s right to grant a Lien on such intellectual
property in favor of the Collateral Agent.”



20. Section 9.05(xi) of the Credit Agreement is hereby amended by deleting the amount
“$250,000,000” appearing therein and inserting the amount “$300,000,000” in lieu thereof.



21. Section 9.05 of the Credit Agreement is hereby further amended by (i) deleting the word
“and” appearing at the end of clause (xii) thereof, (ii) deleting the period appearing at the end
of clause (xiii) thereof and inserting “; and” in lieu thereof and (iii) inserting the following
new clause (xiv) at the end thereof:



“(xiv) the Borrower and its Wholly-Owned Subsidiaries may make Investments
consisting of inventory and other working capital to Wholly-Owned Subsidiaries of
the Borrower organized under the laws of Bermuda and Singapore in an aggregate
amount not to exceed $300,000,000 from and after the Third Amendment Effective
Date.”



22. Section 9.08 of the Credit Agreement is hereby amended by deleting the amount
“$65,000,000” appearing therein and inserting the amount “$30,000,000” in lieu thereof.



23. Section 9.09 of the Credit Agreement is hereby amended by deleting the text “2.00:1.00”
appearing therein and inserting the text “2.75:1.00” in lieu thereof.



24. Section 9.10(i) of the Credit Agreement is hereby amended by deleting sub-clauses (y) and
(z) of the proviso thereof and inserting the following new sub-clause (y) in lieu thereof:



“and (y) the Borrower may redeem or otherwise repurchase outstanding Subordinated
Notes so long as at the time of each such redemption or other repurchase and after
giving effect thereto (i) the Borrower and its Wholly-Owned Subsidiaries hold
Unrestricted cash and Cash Equivalents of at least $250,000,000 and (ii) no
Revolving Loans or Swingline Loans are outstanding;”.



25. The definition of “Additional Permitted Subordinated Debt” appearing in Section 11.01 of
the Credit Agreement is hereby amended by deleting the text “B-2 Term Loan Maturity Date” appearing
in clause (ii) thereof and inserting the text “B-3 Term Loan Maturity Date” in lieu thereof.



26. The definition of “Applicable Margin” appearing in Section 11.01 of the Credit Agreement
is hereby amended by (i) deleting the word “and” appearing at the end of clause (i) of said
definition, (ii) inserting the text “(iv) in respect of B-3 Term Loans that are maintained as (x)
Base Rate Loans, a percentage per annum equal to 0.75%, and (y) Eurodollar Loans, a percentage per
annum equal to 1.75%,” immediately following clause (iii) of said definition and (iii)
re-designating clause “(iv)” of said definition as clause “(v)”.



27. The definition of “Commitment” appearing in Section 11.01 of the Credit Agreement is
hereby amended by inserting the text “, a B-3 Term Loan Commitment” immediately after the text “B-2
Term Loan Commitment” appearing in said definition.



28. The definition of “Cash Equivalents” appearing in Section 11.01 of the Credit Agreement is
hereby amended by deleting the words “one year” appearing in clauses (i) and (ii) thereof and
inserting the words “three years” in lieu thereof.



29. The definition of “Eurodollar Rate” appearing in Section 11.01 of the Credit Agreement is
hereby amended by (i) inserting the text “(A) with respect to Revolving Loans that are maintained
as Eurodollar Loans,” immediately following the text “shall mean” appearing before sub-clause (a)
thereof and (ii) inserting the following new clause (B) at the end of said definition:



“, and (B) with respect to any Term Loan that is maintained as a Eurodollar Loan for
any Interest Period, (a) the LIBOR rate appearing on Page 3750 of the Dow Jones
Telerate Screen (or on any successor or substitute page of such Screen, or any
successor to or substitute for such Screen, providing rate quotations comparable to
those currently provided on such page of such Screen, as determined by the
Administrative Agent from time to time for purposes of providing quotations of
interest rates applicable to dollar deposits in the interbank Eurodollar market) at
approximately 11:00 A.M. (New York time) on the applicable Interest Determination
Date, as the rate for Dollar deposits with a maturity comparable to such Interest
Period, provided that in the event that such rate is not available at such
time for any reason, then this component of the “Eurodollar Rate” with respect to
such Eurodollar Loan for such Interest Period shall be the offered quotation to
first-class banks in the New York interbank Eurodollar market by the Administrative
Agent for Dollar deposits of amounts in immediately available funds comparable to
the outstanding principal amount of the Eurodollar Loan of the Administrative Agent
with maturities comparable to the Interest Period applicable to such Eurodollar Loan
commencing two Business Days thereafter as of 10:00 A.M. (New York time) on the
applicable Interest Determination Date, divided (and rounded upward to the next
whole multiple of 1/16 of 1%) by (b) a percentage equal to 100% minus the then
stated maximum rate of all reserve requirements (including, without limitation, any
marginal, emergency, supplemental, special or other reserves required by applicable
law) applicable to any member bank of the Federal Reserve System in respect of
Eurocurrency funding or liabilities as defined in Regulation D.



30. The definition of “Lender Default” appearing in Section 11.01 of the Credit Agreement is
hereby amended by inserting the text “, 1.01(g)” immediately after the text “1.01(f)” appearing in
said definition.



31. The definition of “Loan” appearing in Section 11.01 of the Credit Agreement is hereby
amended by inserting the text “each B-3 Term Loan,” immediately after the text “B-2 Term Loan,”
appearing in said definition.



32. The definition of “Maturity Date” appearing in Section 11.01 of the Credit Agreement is
hereby amended by inserting the text “the B-3 Term Loan Maturity Date,” immediately after the text
“B-2 Term Loan Maturity Date,” appearing in said definition.



33. The definition of “Minimum Borrowing Amount” appearing in Section 11.01 of the Credit
Agreement is hereby amended by (i) deleting the word “and” appearing at the end of clause (iv) of
said definition and (ii) inserting the text “, and (vi) for B-3 Term Loans, $5,000,000” immediately
after clause (v) appearing in said definition.



34. The definition of “Note” appearing in Section 11.01 of the Credit Agreement is hereby
amended by inserting the text “each B-3 Term Note,” immediately after the text “each




B-2 Term Note,” appearing in said definition.



35. The definition of “Qualified Preferred Stock” appearing in Section 11.01 of the Credit
Agreement is hereby amended by deleting the text “B-2 Term Loan Maturity Date” appearing in clause
(v) thereof and inserting the text “B-3 Term Loan Maturity Date” in lieu thereof.



36. The definition of “Required Lenders” appearing in Section 11.01 of the Credit Agreement is
hereby amended by (i) inserting the text “, B-3 Term Loans” immediately after the text “B-2 Term
Loans” the first place such text appears in said definition and (ii) deleting the text “and B-2
Term Loans” appearing in clause (i) of said definition and inserting the text “, B-1 Term Loans,
B-2 Term Loans and B-3 Term Loans” in lieu thereof.



37. The definition of “Tranche” appearing in Section 11.01 of the Credit Agreement is hereby
amended by (i) deleting the word “five” appearing in said definition and inserting the text “six”
in lieu thereof and (ii) inserting the text “B-3 Term Loans,” immediately after the text “B-2 Term
Loans,” appearing in said definition.



38. Section 11.01 of the Credit Agreement is hereby further amended by inserting in the
appropriate alphabetical order the following new definitions:



“Additional B-3 Term Loans” shall have the meaning provided in Section 1.01(g).



“B-3 Scheduled Repayment” shall have the meaning provided in Section 4.02(b).



“B-3 Scheduled Repayment Date” shall have the meaning provided in Section
4.02(b).



“B-3 Term Loan” shall have the meaning provided in Section 1.01(g).



“B-3 Term Loan Commitment” shall mean, for each Lender, the amount set forth
opposite such Lender’s name in Schedule I directly below the column entitled “B-3
Term Loan Commitment,” as the same may be terminated pursuant to Sections 3.03
and/or 10. Notwithstanding the foregoing, if on the Third Amendment Effective Date
(immediately prior to the incurrence of Additional B-3 Term Loans on such date) the
sum of the B-3 Term Loan Commitments plus the aggregate principal amount of
Converted B-3 Term Loans would exceed the aggregate outstanding principal amount of
the B-2 Term Loans immediately prior to the Third Amendment Effective Date by more
than $154,500,000, then the B-3 Term Loan Commitments of the Lenders shall be
reduced by an amount equal to such excess (with such reduction to apply to
proportionately reduce the B-3 Term Loan Commitment of each Lender).



“B-3 Term Loan Maturity Date” shall mean December 31, 2010.



“B-3 Term Note” shall have the meaning provided in Section 1.05(a).



“Converted B-3 Term Loans” shall have the meaning provided in Section 1.01(g).



“Restricted” shall mean, when referring to cash or Cash Equivalents of the
Borrower or any of its Wholly-Owned Subsidiaries, that such cash or Cash Equivalents
(i) appears (or would be required to appear) as “restricted” on a consolidated
balance sheet of the Borrower or of any such Wholly-Owned Subsidiary, (ii) are
subject to a Lien in favor of any Person other than the Collateral Agent for the
benefit of the Secured Creditors or (iii) are not otherwise generally available for
use by the Borrower or any of its Wholly-Owned Subsidiaries.



“Third Amendment” shall mean the Third Amendment to this Agreement, dated as of
January 12, 2005.



“Third Amendment Consenting Lenders” shall have the meaning provided in Section
1.01(g).



“Third Amendment Effective Date” shall have the meaning provided in the Third
Amendment.



“Third Amendment Non-Consenting Lender” shall mean each Lender with outstanding
B-2 Term Loans that is not a Third Amendment Consenting Lender.



“Total B-3 Term Loan Commitment” shall mean, at any time, the sum of the B-3
Term Loan Commitments of each of the Lenders at such time.



“Unrestricted” shall mean, when referring to cash or Cash Equivalents of the
Borrower or any of its Wholly-Owned Subsidiaries, that such cash or Cash Equivalents
are not Restricted.



39. Section 13.04(b) of the Credit Agreement is hereby amended by deleting the text “or
outstanding B-2 Term Loans” appearing in clause (ii)(y) of said Section and inserting the text “,
outstanding B-2 Term Loans or outstanding B-3 Term Loans” in lieu thereof.



40. Schedule I to the Credit Agreement is hereby amended by adding thereto the information set
forth on Schedule I attached hereto.



41. Exhibit A-1 to the Credit Agreement is hereby amended by inserting the text “[B-3 Term
Loans]” immediately after the text “[B-2 Term Loans] appearing in said Exhibit.



42. The Credit Agreement is hereby further amended by adding Exhibit B-6 thereto in the form
of Exhibit B-6 attached hereto.



43. Exhibit O to the Credit Agreement is hereby amended by deleting same in its entirety and
inserting in lieu thereof a new Exhibit O in the form of Exhibit O attached hereto.



44. Notwithstanding anything to the contrary contained in the Credit Agreement, the Lenders
hereby agree that the first Interest Period on or after the Third Amendment Effective Date with
respect to the B-3 Term Loans may have an Interest Period of less than one month.



B. Miscellaneous Provisions



1. In order to induce the Lenders to enter into this Third Amendment, each of Holdings and the
Borrower hereby represents and warrants to each of the Lenders that immediately after giving effect
to this Third Amendment (i) all of the representations and warranties contained in the Credit
Agreement and in the other Credit Documents are true and correct in all material respects on and as
of the Third Amendment Effective Date (as defined below) (unless such representations and
warranties relate to a specific earlier date, in which case such representations and warranties
shall be true and correct in all material respects as of such earlier date) and (ii) there exists
no Default or Event of Default on the Third Amendment Effective Date.



2. This Third Amendment is limited as specified and shall not constitute a modification,
acceptance or waiver of any other provision of the Credit Agreement or any other Credit Document.



3. This Third Amendment may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which counterparts when executed and delivered
shall be an original, but all of which shall together constitute one and the same instrument. A
complete set of counterparts executed by all the parties hereto shall be lodged with Holdings, the
Borrower and the Administrative Agent.



4. THIS THIRD AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.



5. This Third Amendment shall become effective on the date (the “Third Amendment Effective
Date”) when:



(i) Holdings, the Borrower, each Subsidiary Guarantor, the Required Lenders
and each Lender with a B-3 Term Loan Commitment shall have signed a counterpart
hereof (whether the same or different counterparts) and shall have delivered
(including by way of facsimile transmission) the same to the Administrative Agent
at the Notice Office (but only so long as Third Amendment Consenting Lenders
holding outstanding B-2 Term Loans in an aggregate principal amount which, when
added to the remainder of (x) the aggregate amount of B-3 Term Loan Commitments of
the Lenders minus (y) $154,500,000, equals at least the aggregate outstanding
principal amount of B-2 Term Loans on the Third Amendment Effective Date (before
giving effect to the incurrence (including by way of conversion of B-2 Term Loans)
of B-3 Term Loans on such date) shall have signed a counterpart of this Third
Amendment);



(ii) there shall have been delivered to the Administrative Agent for the
account of each of the Lenders that have requested same an appropriate B-3 Term
Note executed by the Borrower in each case in the amount, maturity and otherwise as
provided in the Credit Agreement;



(iii) all accrued and unpaid interest on all B-2 Term Loans shall have been
paid in full and all costs of the type described in Section 1.11 of the Credit
Agreement shall have been paid in full in connection with the repayment and/or
conversion of the B-2 Term Loans on the Third Amendment Effective Date;



(iv) the Administrative Agent shall have received a certificate, dated the
Third Amendment Effective Date and signed on behalf of the Borrower by the
treasurer of the Borrower and also by any of the chairman of the board, the
president, any vice president or the secretary of the Borrower, (x) certifying on
behalf of the Borrower that the incurrence of all Additional B-3 Term Loans on the
Third Amendment Effective Date is permitted under (and does not violate the
provisions of) the 10-1/2% Senior Subordinated Note Indenture and setting forth in
reasonable detail the reasons therefor and (y) containing financial calculations
(in reasonable detail) demonstrating that the Consolidated Coverage Ratio (as
defined in the 10-1/2% Senior Subordinated Note Indenture) exceeds 2.0 to 1.0 (after
giving effect to the incurrence of all Additional B-3 Term Loans on the Third
Amendment Effective Date);



(v) on the Third Amendment Effective Date (and concurrently with the
incurrence of Additional B-3 Term Loans under the Credit Agreement), (I) the
Borrower shall have delivered to the trustee for the 10-1/2% Senior Subordinated
Notes (the “Trustee”) an irrevocable notice of redemption for at least $145,000,000
in aggregate principal amount of outstanding 10-1/2% Senior Subordinated Notes in
accordance with the terms of the 10-1/2% Senior Subordinated Note Indenture (which
redemption date shall be no later than 45 days after the Third Amendment Effective
Date), (II) the Borrower shall have irrevocably deposited with the Trustee cash in
an amount sufficient to redeem at least $145,000,000 in aggregate principal amount
of outstanding 10-1/2% Senior Subordinated Notes on the applicable redemption date
set forth in the irrevocable notice of redemption referred to above, (III) the
Borrower shall have irrevocably instructed the Trustee in writing to apply the
funds referred for in preceding clause (II) to the redemption of such outstanding
10-1/2% Senior Subordinated Notes, and (IV) the Administrative Agent shall have
received evidence, in form and substance reasonably satisfactory to it, that the
matters set forth in preceding clauses (I) through (III) have been satisfied;



(vi) the Administrative Agent shall have received one or more opinions of
counsel to the Credit Parties, each in form and substance reasonably satisfactory
to the Administrative Agent, with respect to the transactions contemplated by this
Amendment;



(vii) the Administrative Agent shall have received from each Credit Party
certified copies of resolutions of their respective Boards of Directors (or the
equivalent governing body) or statements of unanimous written consent in lieu
thereof of each such Credit Party with respect to the matters set forth in this
Amendment and the transactions contemplated herein, and such resolutions or
statements, as the case may be, shall be in form and substance reasonably
satisfactory to the Administrative Agent; and



(viii) each of Holdings and the Borrower shall have paid to the Administrative
Agent and the Lenders all fees and reasonable out-of-pocket costs and expenses
(including, without limitation, the reasonable legal fees and expenses of White &
Case LLP and the fee set forth in Section B.6 below) payable to the Administrative
Agent and the Lenders to the extent then due.



6. The Borrower hereby covenants and agrees, so long as the Third Amendment Effective Date
occurs, to pay to each Lender which has executed and delivered to the Administrative Agent (or its
designee) a counterpart hereof by the later to occur of (x) 3:00 P.M. (New York time) on January
12, 2005 or (y) the close of business on the Third Amendment Effective Date (such later date, the
“Outside Date”), a non-refundable cash amendment fee equal to 0.05% of the sum of (x) its Revolving
Loan Commitment as in effect on the Third Amendment Effective Date and (y) the aggregate principal
amount of its Converted B-3 Term Loans outstanding on the Third Amendment Effective Date, which fee
shall not be subject to counterclaim or set-off, or be otherwise affected by, any claim or dispute
relating to any other matter and shall be paid by the Borrower to the Administrative Agent for
distribution to such Lenders on the Third Amendment Effective Date.



7. By executing and delivering a counterpart hereof, each Credit Party hereby agrees that all
Loans (including, without limitation, the B-3 Term Loans) shall be fully guaranteed pursuant to the
Guaranties in accordance with the terms and provisions thereof and shall be fully secured pursuant
to the applicable Security Documents.



8. From and after the Third Amendment Effective Date, all references in the Credit Agreement
and in the other Credit Documents to the Credit Agreement shall be deemed to be referenced to the
Credit Agreement as modified hereby.



* * *




1




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



FAIRCHILD SEMICONDUCTOR




INTERNATIONAL, INC.



By: /s/ Peter Groth




	 	 	 	Name: Peter Groth

Title: Vice President and Corporate Treasurer





FAIRCHILD SEMICONDUCTOR




CORPORATION



By: /s/ Peter Groth




	 	 	 	Name: Peter Groth

Title: Vice President and Corporate Treasurer





FAIRCHILD SEMICONDUCTOR CORPORATION OF CALIFORNIA


KOTA MICROCIRCUITS, INC.


QT OPTOELECTRONICS, INC.


QT OPTOELECTRONICS



By: /s/ Peter Groth




	 	 	 	Name: Peter Groth

Title: Vice President and Corporate Treasurer





DEUTSCHE BANK TRUST COMPANY AMERICAS, Individually and as Administrative Agent



By: /s/ Paul O’Leary




	 	 	 	Name: Paul O’Leary

Title: Vice President




2










SIGNATURE PAGE TO THE THIRD AMENDMENT, DATED AS JANUARY 12,
2005, TO THE CREDIT AGREEMENT, DATED AS OF JUNE 19, 2003,
AMONG FAIRCHILD SEMICONDUCTOR INTERNATIONAL, INC., FAIRCHILD
SEMICONDUCTOR CORPORATION, VARIOUS LENDERS, DEUTSCHE BANK
TRUST COMPANY AMERICAS, AS ADMINISTRATIVE AGENT, BANK OF
AMERICA N.A. (F/K/A FLEET NATIONAL BANK), AS SYNDICATION
AGENT, AND CREDIT SUISSE FIRST BOSTON, LEHMAN COMMERCIAL
PAPER INC. AND MORGAN STANLEY SENIOR FUNDING, INC., AS
CO-DOCUMENTATION AGENTS




NAME OF INSTITUTION:




By:




Name:


Title:




[Signatures of other members of lending syndicate omitted.]



3




SCHEDULE I




	 	 	 	 	 
	Lender	 	B-3 Term Loan Commitment
	Deutsche Bank Trust Company Americas
	 	$	153,498,685.30	 







4




EXHIBIT B-6




FORM OF B-3 TERM NOTE




$_____ New York, New York




[Date]




FOR VALUE RECEIVED, FAIRCHILD SEMICONDUCTOR CORPORATION, a Delaware corporation (the
“Borrower”), hereby promises to pay to      or its registered assigns (the “Lender”), in
lawful money of the United States of America in immediately available funds, at the office of
Deutsche Bank Trust Company Americas (the “Administrative Agent”) initially located at 90 Hudson
Street, Jersey City, New Jersey 07302 on the B-3 Term Loan Maturity Date (as defined in the Credit
Agreement referred to below) the principal sum of      DOLLARS ($     ) or, if less, the
aggregate unpaid principal amount of all B-3 Term Loans (as defined in the Credit Agreement) made
by the Lender pursuant to the Credit Agreement.



The Borrower also promises to pay interest on the unpaid principal amount hereof in like money
at said office from the date hereof until paid at the rates and at the times provided in Section
1.08 of the Credit Agreement.



This Note is one of the B-3 Term Notes referred to in the Credit Agreement, dated as of June
19, 2003, among Fairchild Semiconductor International, Inc., the Borrower, the lenders from time to
time party thereto (including the Lender), the Administrative Agent, Bank of America N.A (f/k/a
Fleet National Bank), as Syndication Agent, and Credit Suisse First Boston, Lehman Commercial Paper
Inc. and Morgan Stanley Senior Funding, Inc., as Co-Documentation Agents (as amended, modified or
supplemented from time to time, the “Credit Agreement”), and is entitled to the benefits thereof
and of the other Credit Documents (as defined in the Credit Agreement). This Note is secured by
the Security Documents (as defined in the Credit Agreement) and is entitled to the benefits of the
Guaranties (as defined in the Credit Agreement). This Note is subject to voluntary prepayment and
mandatory repayment prior to the B-3 Term Loan Maturity Date, in whole or in part, as provided in
the Credit Agreement.



If an Event of Default (as defined in the Credit Agreement) shall occur and be continuing, the
principal of and accrued interest on this Note may become or be declared to be due and payable in
the manner and with the effect provided in the Credit Agreement.



The Borrower hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.



THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW
YORK.




FAIRCHILD SEMICONDUCTOR CORPORATION




By:




Name:


Title:



5




FORM OF ASSIGNMENT




AND




ASSUMPTION AGREEMENT1




This Assignment and Assumption Agreement (the “Assignment”), is dated as of the Effective Date
set forth below and is entered into by and between the Assignor identified in item 1 below (the
“Assignor”) and [[the] [each] Assignee identified in item [2] [3] below ([the] [each an]
“Assignee”). [It is understood and agreed that the rights and obligations of such Assignee
hereunder are several and not joint]. Capitalized terms used herein but not defined herein shall
have the meanings given to them in the Credit Agreement identified below (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), receipt of a copy of
which is hereby acknowledged by [the] [each] Assignee. The Standard Terms and Conditions set forth
in Annex 1 hereto (the “Standard Terms and Conditions”) are hereby agreed to and incorporated
herein by reference and made a part of this Assignment as if set forth herein in full.



For an agreed consideration, the Assignor hereby irrevocably sells and assigns to [the] [each]
Assignee, and [the] [each] Assignee hereby irrevocably purchases and assumes from the Assignor,
subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of
the Effective Date inserted by the Administrative Agent as contemplated below, the interest in and
to all of the Assignor’s rights and obligations under the Credit Agreement and any other documents
or instruments delivered pursuant thereto that represents the amount and percentage interest
identified below of all of the Assignor’s outstanding rights and obligations under the respective
Tranches identified below (including, to the extent included in any such Tranches, Letters of
Credit and Swingline Loans) (the “Assigned Interest”). [Such] [Each] sale and assignment is
without recourse to the Assignor and, except as expressly provided in this Assignment, without
representation or warranty by the Assignor.



	 	 	 	 	 
	[1.]

	 	Assignor:
	 	

	
 
	 	 	 	 
	[2.]

	 	Assignee: 2
	 	

	
 
	 	 	 	 
	[2.][3.]

[3.]

	 	Credit Agreement:

Assigned Interest: 3
	 	Credit Agreement, dated

as of June 19, 2003,

among Fairchild

Semiconductor

International, Inc.,

Fairchild Semiconductor

Corporation, the Lenders

party thereto from time

to time, Deutsche Bank

Trust Company Americas,

as Administrative Agent,

Bank of America N.A.

(f/k/a Fleet National

Bank), as Syndication

Agent, and Credit Suisse

First Boston, Lehman

Commercial Paper Inc. and

Morgan Stanley Senior

Funding, Inc., as

Co-Documentation Agents

(such Credit Agreement,

as in affect on the date

of this Assignment, being

herein called the “Credit

Agreement”).










	 	 	 	 	 	 	 	 	 
	 	 	 	 	Aggregate Amount of	 	Amount of	 	Percentage of
	 	 	 	 	Commitment/Loans	 	Commitment/ Loans	 	Assigned
	
 
	 	Tranche Assigned
	 	for All Lenders
	 	Assigned
	 	Commitment/ Loans4
	 
	 	 	 	 	 	 	 	 
	[Name of

Assignee]

	 	

	 	

$     
	 	

$     
	 	

     %
	 
	 	 	 	 	 	 	 	 
	[Name of Assignee]

	 	 	 	$     
	 	$     
	 	     %







[4.] Assigned Interest:5



	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	Percentage of

	 
	 	Aggregate Amount of             
	 	Amount of                       
	 	Assigned

	Tranche
	 	Commitment/Loans                
	 	Commitment/Loans                
	 	Commitment/Loan

	Assigned
	 	for All Lenders                 
	 	Assigned                        
	 		6	
	Revolving Loan
Commitment/
Revolving Loans
	 	$			 	$			 	$		
	Term Loans
	 	$			 	$			 	$		
	B-1Term Loans
	 	$			 	$			 	$		
	B-2 Term Loans
	 	$			 	$			 	$		
	B-3 Term Loans
	 	$			 	$			 	$		







Effective Date      ,      , 200     .




Payment Instructions:




Attention:




Reference:




Address for Notices:




Relationship Contact:




The terms set forth in this Assignment are hereby agreed to:



ASSIGNOR



[NAME OF ASSIGNOR]



By:




Name:




Title:



ASSIGNEE7


[NAME OF ASSIGNEE]



By:




Name:


Title:



[Consented to and]8 Accepted:


Deutsche Bank Trust Company Americas,




as Administrative Agent



By:




Name:




Title:



[Consented to:



Fairchild Semiconductor Corporation



By:




Name:




Title:]9



6



Fairchild Semiconductor Corporation




CREDIT AGREEMENT




STANDARD TERMS AND CONDITIONS FOR ASSIGNMENT




AND ASSUMPTION AGREEMENT





1. Representations and Warranties.



1.1. Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver this Assignment and to consummate the transactions
contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with any Credit Document, (ii) the
execution, legality, validity, enforceability, genuineness, sufficiency or value of the Credit
Agreement, any other Credit Document or any other instrument or document delivered pursuant
thereto, other than this Assignment, or any collateral thereunder, (iii) the financial condition of
Holdings or any of its Subsidiaries or Affiliates or any other Person obligated in respect of any
Credit Document or (iv) the performance or observance by Holdings or any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations under any Credit Documents.



1.2. Assignee. [The] [Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
to consummate the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of an Eligible Transferee under the Credit Agreement,
(iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement and, to the extent of the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most
recent financial statements delivered pursuant to Section 7.05(a) thereof, as applicable, and such
other documents and information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assignment and to purchase the Assigned Interest on the basis of which
it has made such analysis and decision and (v) if it is organized under the laws of a jurisdiction
outside the United States, attached to this Assignment is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by [the]
[each] Assignee; and (b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own credit decisions in taking or
not taking action under the Credit Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Credit Documents are required to be
performed by it as a Lender.



2. Payment. From and after the Effective Date, the Administrative Agent shall make
all payment in respect to the Assigned Interest (including payments of principal, interest, fees
and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective
Date and to [the] [each] Assignee for amounts which have accrued from and after the Effective Date.



3. General Provisions. This Assignment shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and assigns. This Assignment may be
executed in any number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment by telecopy shall be effective as
delivery of a manually executed counterpart of the Assignment. THIS ASSIGNMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK (INCLUDING
SECTION 5-1401 OF THE GENERAL OBLIGATIONS).



1 This form of Assignment and Assumption
Agreement should be used by Lenders for an assignment to a single Assignee or
to funds managed by the same or related investment managers.



2 Item 2 should list the Assignee if the form
is used for a single Assignee. In the case of an assignment to funds managed
by the same or related investment managers, the Assignees should be listed in
the table under bracketed item 3.



3 Insert this chart if this Form of Assignment
and Acceptance is being used for assignment to funds managed by the same or
related investment managers.



4 Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder for the respective
Tranche.



5 Insert this chart if this Form of Assignment
and Acceptance is being used by a Lender for an assignment to a single
Assignee.



6Set forth, to at least 9 decimals, as a
percentage of the Commitment/Loans of all Lenders thereunder.



7 Add additional signature blocks, as
needed, if this Form of Assignment and Assumption Agreement is being used by
funds managed by the same or related investment managers.



8Insert only if assignment is being made
pursuant to Section 13.04(b)(y) of the Credit Agreement.



9Insert only if assignment is being made
pursuant to Section 13.04(b)(y) of the Credit Agreement and then only so long
as no Default under Section 10.01 or 10.05 of the Credit Agreement exists
and/or no Event of Default exists.




7