Document:

Waiver, Consent, Amendment Number One to Credit Agreement

 Exhibit 10.28 
 WAIVER, CONSENT, AMENDMENT NUMBER ONE TO CREDIT AGREEMENT AND 
 AMENDMENT NUMBER ONE TO SECURITY AGREEMENT 
 This WAIVER, CONSENT, AMENDMENT NUMBER ONE TO CREDIT AGREEMENT
AND AMENDMENT NUMBER ONE TO SECURITY AGREEMENT (this “Amendment”), dated as of December 31, 2009, is entered into by and among POWERWAVE TECHNOLOGIES, INC., a Delaware corporation (“Borrower”), the
lenders identified on the signature pages hereof (such lenders, and the other lenders party to the below-defined Credit Agreement, together with their respective successors and permitted assigns, are referred to hereinafter each individually as a
“Lender” and collectively as the “Lenders”), and WELLS FARGO FOOTHILL, LLC, a Delaware limited liability company, as the arranger and administrative agent for the Lenders (“Agent”), and in
light of the following: 
 W I T N E S S E T H 
 WHEREAS, Borrower, Lenders, and Agent are parties to that certain Credit Agreement, dated as of April 3, 2009 (as amended,
restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS,
Borrower and Agent are parties to that certain Security Agreement, dated as of April 3, 2009 (as amended, restated, supplemented, or otherwise modified from time to time, the “Security Agreement”); 
 WHEREAS, Borrower has informed Agent that the following Events of Default have occurred and are continuing under
Section 8.2(a) of the Credit Agreement (collectively, the “Designated Events of Default”): (a) on August 24, 2009, Powerwave Technologies (Wuxi) Co. Ltd. declared and paid a dividend of $17,294,236.53 to
Powerwave Overseas Holdings Limited (“POHL”) in violation of Section 6.9 of the Credit Agreement, (b) on September 25, 2009, Powerwave Comtek OY. declared and paid a dividend of EUR 15,700,000 to POHL in
violation of Section 6.9 of the Credit Agreement, (c) on December 1, 2009, POHL repurchased 4,725,161 shares of its common Stock held by Powerwave Technologies Sweden AB for £4,725,161 in violation of
Section 6.9 of the Credit Agreement, (d) Borrower failed to deliver to Agent the Collateral reporting required by clauses (b) – (f) of Schedule 5.2 of the Credit Agreement for the week commencing on
November 30, 2009, the week commencing on December 7, 2009, the week commencing on December 14, 2009, and the week commencing on December 21, 2009, and (e) Borrower failed to deliver to Agent certain pledge agreements,
pledged interests addendum and/or appropriate certificates and powers or financing statements, hypothecating at least 65% of the total outstanding voting Stock of Powerwave Technologies (Thailand) Ltd. (collectively, the
“Deliverables”) by the deadline set forth in Section 5.11(b) of the Credit Agreement; 
 WHEREAS, Borrower has requested that Agent and Lenders (a) waive the Designated Events of Default; and (b) extend the deadline set forth in Section 5.11(b) of the Credit Agreement for the delivery of the
Deliverables to Agent; 
 WHEREAS, Borrower has requested that Agent and Lenders make certain amendments to the Credit
Agreement and the Security Agreement; and 
 WHEREAS, upon the terms and conditions set forth herein, the parties hereby
agree to amend the Credit Agreement and Security Agreement as follows. 
  

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 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein
contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Defined Terms. Capitalized terms used herein without definition shall have the meanings ascribed thereto in the Credit Agreement, as amended hereby. 
 2. Amendments to Credit Agreement. 
 (a) Schedule 1.1 to the Credit Agreement is hereby amended by amending and restating the definition of “EBITDA” as follows: 
 ““EBITDA” means, with respect to any fiscal period, determined on a consolidated basis in accordance with GAAP,
Borrower’s consolidated net earnings (or loss) for such period, minus, extraordinary gains, foreign currency translation gains, and interest income for such period, plus, (a) non-cash extraordinary losses, non-cash restructuring charges,
and non-cash impairment charges for such period, (b) interest expense for such period, (c) income taxes for such period, (d) depreciation and amortization for such period, (e) non-cash stock compensation charges for such period,
(f) cash restructuring charges for the fiscal year 2009 in an aggregate amount not to exceed $3,000,000, and (g) foreign currency translation losses for such period; provided that, anything to the contrary contained in the foregoing
notwithstanding, the calculation of Borrower’s consolidated net earnings (or loss) for any period shall not include any of Borrower’s gains resulting from its repurchase of the 1.875% Convertible Notes or the 3.875% Convertible
Notes.” 
 (b) The definition of “Permitted Intercompany Advances” appearing in Schedule 1.1 to the
Credit Agreement is hereby amended by (i) deleting the phrase “$20,000,000” appearing therein and (ii) replacing such phrase with “$15,000,000”. 
 (c) Section 7(a) of the Credit Agreement is hereby amended by amending and restating the table in such section in its entirety
as follows: 
  

			
	 “Applicable Amount
	 	 Applicable Period

	$27,000,000	 	For the 12 month period ended April 4, 2010
	$28,000,000	 	For the 12 month period ended July 4, 2010
	$27,000,000	 	For the 12 month period ended October 3, 2010
	$29,000,000	 	For the 12 month period ended January 2, 2011 and for each 12 month period ended as of the end of each fiscal quarter
thereafter”

  

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 (d) Section 9.1 of the Credit Agreement is hereby amended by adding the
following sentence immediately after clause (b) thereof: 
 “Upon the occurrence and during the continuation of an
Event of Default, upon the instruction of the Required Lenders, Agent shall exercise all other rights and remedies available to it or the Lenders under the Loan Documents or under applicable law.” 
 (e) Section 15.1 of the Credit Agreement is hereby amended by amending and restating the first sentence thereof as follows:

 “Each Lender hereby designates and appoints WFF as its agent under this Agreement and the other Loan Documents and each
Lender hereby irrevocably authorizes Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto. Agent agrees to act as agent for and on behalf of the
Lenders (and the Bank Product Providers) on the conditions contained in this Section 15.” 
 (f) Schedule
5.2 to the Credit Agreement is hereby amended by (i) deleting the reference to “$20,000,000” appearing therein and (b) replacing such phrase with “$15,000,000”. 
 3. Amendment to Security Agreement. The definition of “Triggering Event” appearing in Section 1.1(eee)
of the Security Agreement is hereby amended by (i) deleting the reference to “$20,000,000” appearing therein and (ii) replacing such phrase with “$15,000,000”. 
 4. Waiver. The provisions of the Credit Agreement and the other Loan Documents to the contrary notwithstanding, and subject to the
satisfaction of the conditions precedent set forth in Section 6 hereof, Agent and the undersigned Lenders hereby (a) waive the Designated Events of Default and (b) extend the deadline set forth in Section 5.11 of
the Credit Agreement for the delivery to Agent of the Deliverables to January 15, 2010; provided, however, nothing herein, nor any communications among Borrower, Agent, or any Lender, shall be deemed a waiver with respect to any
Events of Default, other than the Designated Events of Default, or any future failure of Borrower to comply fully with any provision of the Credit Agreement or any provision of any other Loan Document, and in no event shall this waiver be deemed to
be a waiver of enforcement of any of Agent’s or Lenders’ rights or remedies under the Credit Agreement and the other Loan Documents, at law (including under the Code), in equity, or otherwise including, without limitation, the right to
declare all Obligations immediately due and payable pursuant to Section 9.1 of the Credit Agreement, with respect to any other Defaults or Events of Default now existing or hereafter arising. Except as expressly provided herein, Agent
and each Lender hereby reserves and preserves all of its rights and remedies against Borrower under the Credit Agreement and the other Loan Documents, at law (including under the Code), in equity, or otherwise including, without limitation, the
right to declare all Obligations immediately due and payable pursuant to Section 9.1 of the Credit Agreement. 
 5.
Consent. The provisions of the Credit Agreement and the other Loan Documents to the contrary notwithstanding, and subject to the satisfaction of the conditions precedent set forth in Section 6 hereof, Agent and the undersigned
Lenders hereby consent to (a) the payment of a non-cash dividend by Powerwave Hungary Kft to POHL in the form of forgiveness of the intercompany loan owed by POHL to Powerwave Hungary Kft, (b) the payment of a non-cash dividend by
Powerwave Technologies Germany GmbH to Powerwave Technologies Sweden AB in the form of forgiveness of the intercompany loan owed by Powerwave Technologies Sweden AB to Powerwave Technologies Germany GmbH, (c) the payment of non-cash capital
contributions by Powerwave Technologies Sweden AB to Powerwave Technologies Brazil Comercio de Equipamentos de Telecomunicacao Ltda and LGP Telecom Ltda. in the form of forgiveness of the intercompany loans owed by Powerwave Technologies Brazil
Comercio de Equipamentos de Telecomunicacao Ltda and LGP Telecom Ltda. to Powerwave Technologies Sweden AB. 
  

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 6. Conditions Precedent to the Effectiveness of this Amendment. The effectiveness of
this Amendment (and the Consent contained within this Amendment) is subject to the fulfillment, to the reasonable satisfaction of Agent (or a written waiver by Agent) of each of the following conditions: 
 (a) Agent shall have received, in immediately available funds, the Amendment Fee referred to in Section 9(b) hereof; 

(b) Agent shall have received this Amendment, duly executed by the parties hereto, and the same shall be in full force and effect;

 (c) After giving effect to this Amendment, the representations and warranties herein and in the Credit Agreement and the
other Loan Documents shall be true, correct, and complete in all material respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date);

 (d) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein shall have been issued and remain in force by any Governmental Authority against Borrower, Agent, or any Lender; and 
 (e) After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing or shall result from the consummation of the transactions contemplated herein. 

7. Representations and Warranties. Borrower hereby represents and warrants to Agent and the Lenders as follows: 
 (a) The execution, delivery, and performance by it of this Amendment and the other Loan Documents to which it is a party (i) have been
duly authorized by all necessary action, (ii) do not and will not (A) violate any material provision of any federal, state, or local law or regulation applicable to it or its Subsidiaries, the Governing Documents of it or its Subsidiaries,
or any order, judgment, or decree of any court or other Governmental Authority binding on it or its Subsidiaries, (B) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Material
Contract (other than the Convertible Notes Documents) of it or its Subsidiaries except to the extent that any such conflict, breach or default could not individually or in the aggregate reasonably be expected to have a Material Adverse Change,
(C) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any Convertible Notes Documents, (D) result in or require the creation or imposition of any Lien of any nature whatsoever
upon any assets of any Loan Party, other than Permitted Liens, (E) require any approval of any Loan Party’s interestholders or any approval or consent of any Person under any Material Contract (other than the Convertible Notes Documents)
of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and, in the case of Material Contracts, for consents or approvals, the failure to obtain could not individually or in the aggregate
reasonably be expected to cause a Material Adverse Change or (F) require any approval of any Person under any Convertible Notes Documents, other than consents or approvals that have been obtained and that are still in force and effect.

 (b) The execution, delivery, and performance by it of this Amendment do not and will not require any registration with,
consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than (i) consents or approvals that have been obtained and that are still in

  

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force and effect, (ii) filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Agent for filing or recordation, and (iii) filings to be made with
the Securities and Exchange Commission in connection with Borrower’s reporting obligations pursuant to the Securities Exchange Act of 1934, as amended. 
 (c) This Amendment, and each other Loan Document to which it is or will be a party, when duly executed and delivered by it, will be the legally valid and binding obligation of Borrower, enforceable
against Borrower in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors’ rights
generally. 
 (d) No injunction, writ, restraining order, or other order of any nature prohibiting, directly or indirectly, the
consummation of the transactions contemplated herein has been issued and remains in force by any Governmental Authority against Borrower. 
 (e) No Default or Event of Default has occurred and is continuing as of the date of the effectiveness of this Amendment. 
 (f) The representations and warranties set forth in this Amendment, the Credit Agreement, as amended by this Amendment and after giving effect hereto, and the other Loan Documents to which it is a party
are true, complete, and correct in all material respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties relate solely to an earlier date in which case such representations and
warranties shall be true, correct and complete in all material respects as of such earlier date). 
 (g) This Amendment has been
entered into without force or duress, of the free will of such Person, and the decision of such Person to enter into this Amendment is a fully informed decision and such Person is aware of all legal and other ramifications of such decision.

 (h) It has read and understands this Amendment, has consulted with and been represented by independent legal counsel of its
own choosing in negotiations for and the preparation of this Amendment, has read this Amendment in full and final form, and has been advised by its counsel of its rights and obligations hereunder. 
 8. Acknowledgments. Borrower hereby acknowledges, confirms and agrees that 
 (a) as of December 31, 2009, the aggregate outstanding principal amount of the Loans under the Credit Agreement was $5,184,036.72 and
that such principal amount is payable pursuant to the Credit Agreement as modified hereby without defense, offset, withholding, counterclaim, or deduction of any kind; 
 (b) Agent, for itself and for the benefit of the Lenders, has and shall continue to have valid, enforceable and perfected first-priority liens upon and security interests in substantially all of the
assets of Borrower (subject only to Permitted Liens), granted to Agent, for itself and the benefit of the Lenders, pursuant to the Loan Documents; and 
 (c)(i) each of the Loan Documents to which it is a party has been duly executed and delivered to the Agent and the Lenders thereto by Borrower, and each is in full force and effect as of the date hereof,
(ii) the agreements and obligations of Borrower contained in such documents and in this Agreement constitute the legal, valid and binding obligations of Borrower and guaranteed indebtedness of Borrower, enforceable against Borrower in
accordance with their respective terms, except as such

  

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enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity, and as of the date
hereof Borrower has no valid defense to the enforcement of the Obligations, and (iii) Agent and each Lender are and shall be entitled to the rights, remedies and benefits provided for in the Loan Documents and under applicable law or at equity.

 9. Payment of Costs and Fees. 
 (a) Borrower shall pay to Agent all reasonable out-of-pocket costs and expenses of the Lender Group (including, without limitation, the reasonable fees and disbursements of outside counsel to Agent and
each Lender) incurred in connection with the preparation, negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto. 
 (b) Borrower shall pay to Agent an amendment fee in the amount of $35,000 (“Amendment Fee”) which Amendment Fee shall be retained by Agent (solely for its account and for the account of
its Affiliates that are Lenders, but not for the account of any other Lender). Such Amendment Fee shall be fully earned and non-refundable on the date hereof. 
 10. Choice of Law and Venue; Jury Trial Waiver. 
 (a) THE VALIDITY OF THIS
AGREEMENT, THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF, AND THE RIGHTS OF THE PARTIES HERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR RELATED HERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF CALIFORNIA. 
 (b) THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS
AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA; PROVIDED, HOWEVER, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. BORROWER AND EACH MEMBER OF THE LENDER GROUP
WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 9. 
 (c) TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO
A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY
CLAIMS. BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  

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 11. Release. 
 (a) Effective on the date hereof, Borrower, for itself and on behalf of its successors, assigns, and officers, directors, employees, agents
and attorneys, and any Person acting for or on behalf of, or claiming through it, hereby waives, releases, remises and forever discharges Agent and each Lender, each of their respective Affiliates, and each of their respective successors in title,
past, present and future officers, directors, employees, limited partners, general partners, investors, attorneys, assigns, subsidiaries, shareholders, trustees, agents and other professionals and all other persons and entities to whom Agent or any
Lender would be liable if such persons or entities were found to be liable to Borrower (each a “Releasee” and collectively, the “Releasees”), from any and all past, present and future claims, suits, liens, lawsuits,
adverse consequences, amounts paid in settlement, debts, deficiencies, diminution in value, disbursements, demands, obligations, liabilities, causes of action, damages, losses, costs and expenses of any kind or character, whether based in equity,
law, contract, tort, implied or express warranty, strict liability, criminal or civil statute or common law (each a “Claim” and collectively, the “Claims”), whether known or unknown, fixed or contingent, direct,
indirect, or derivative, asserted or unasserted, matured or unmatured, foreseen or unforseen, past or present, liquidated or unliquidated, suspected or unsuspected, which Borrower ever had from the beginning of the world to the date hereof, now has,
or might hereafter have against any such Releasee which relates, directly or indirectly to the Credit Agreement, any other Loan Document, or to any acts or omissions of any such Releasee with respect to the Credit Agreement or any other Loan
Document, or to the lender-borrower relationship evidenced by the Loan Documents. As to each and every claim released hereunder, Borrower hereby represents that it has received the advice of legal counsel with regard to the releases contained
herein, and having been so advised, specifically waives the benefit of the provisions of Section 1542 of the Civil Code of California which provides as follows: 
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH A CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM, MUST HAVE MATERIALLY AFFECTED
HIS SETTLEMENT WITH THE DEBTOR.” 
 (b) As to each and every claim released hereunder, Borrower also waives the benefit of
each other similar provision of applicable federal or state law, if any, pertaining to general releases after having been advised by its legal counsel with respect thereto. 
 (c) Borrower acknowledges that it may hereafter discover facts different from or in addition to those now known or believed to be true with
respect to such claims, demands, or causes of action and agrees that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts. Borrower understands, acknowledges and agrees that the
release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such
release. 
 (d) Borrower, for itself and on behalf of its successors, assigns, and officers, directors, employees, agents and
attorneys, and any Person acting for or on behalf of, or claiming through it, hereby absolutely, unconditionally and irrevocably, covenants and agrees with and in favor of each Releasee above that it will not sue (at law, in equity, in any
regulatory proceeding or otherwise) any Releasee on the basis of any claim released, remised and discharged by such Person pursuant to the above release. Borrower further agrees that it shall not dispute the validity or enforceability of the Credit
Agreement or any of the other Loan Documents or any of its obligations thereunder, or the validity, priority, enforceability or the extent of Agent’s Lien on any item of Collateral under the Credit Agreement or the other Loan Documents. If
Borrower or any of its successors, assigns, or officers,

  

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directors, employees, agents or attorneys, or any Person acting for or on behalf of, or claiming through them violate the foregoing covenant, such Person, for itself and its successors, assigns
and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys’ fees and costs incurred by such Releasee as a result of such violation. 
 12. Reaffirmation of Obligations. Borrower hereby reaffirms and its obligations under each Loan Document to which it is a party.
Borrower hereby further ratifies and reaffirms the validity and enforceability of all of the Liens and security interests heretofore granted, pursuant to and in connection with the Security Agreement or any other Loan Document, to Agent, as
collateral security for the obligations under the loan documents in accordance with their respective terms, and acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security for such obligations,
continue to be and remain Collateral for such obligations from and after the date hereof. 
 13. Effect on Loan
Documents. 
 (a) The Credit Agreement and the Security Agreement, each as amended hereby, and each of the other Loan
Documents shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects. The execution, delivery, and performance of this Amendment shall not operate, except as expressly
set forth herein, as a modification or waiver of any right, power, or remedy of Agent or any Lender under the Credit Agreement or any other Loan Document. The waivers, consents and modifications herein are limited to the specifics hereof (including
facts or occurrences on which the same are based), shall not apply with respect to any facts or occurrences other than those on which the same are based, shall not excuse any non-compliance with the Loan Documents (other than as specified herein),
and shall not operate as a consent to any matter under the Loan Documents (other than as specified herein). Except for the amendments to the Credit Agreement and the Security Agreement expressly set forth herein, the Credit Agreement, the Security
Agreement and other Loan Documents shall remain unchanged and in full force and effect. Except as provided herein, the execution, delivery and performance of this Amendment shall not operate as a waiver of or as an amendment of, any right, power or
remedy of the Lenders in effect prior to the date hereof. The amendments set forth herein are limited to the specifics hereof and shall neither excuse any future non-compliance with the Credit Agreement or the Security Agreement, nor operate as a
waiver of any Default or Event of Default. To the extent any terms or provisions of this Amendment conflict with those of the Credit Agreement, the Security Agreement or other Loan Documents, the terms and provisions of this Amendment shall control.

 (b) Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement and the Security Agreement to
“this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Credit Agreement or the Security Agreement, and each reference in the other Loan Documents to “the Credit
Agreement”, “the Security Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Credit Agreement or the Security Agreement, shall mean and be a reference to the Credit
Agreement or the Security Agreement, as applicable, as modified and amended hereby. 
 (c) To the extent that any terms and
conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to
reflect the terms and conditions of the Credit Agreement as modified or amended hereby. 
 (d) This Amendment is a Loan
Document. 
  

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 (e) Unless the context of this Amendment clearly requires otherwise, references to the
plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning
represented by the phrase “and/or”. 
 14. Ratification. Borrower hereby restates, ratifies and reaffirms each
and every term and condition set forth in the Credit Agreement and the Loan Documents effect as of the date hereof and as amended hereby. 
 15. Entire Agreement. This Amendment, and terms and provisions hereof, the Credit Agreement and the other Loan Documents constitute the entire understanding and agreement between the parties hereto
with respect to the subject matter hereof and supersedes any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or implied, oral or written. 
 16. Integration. This Amendment, together with the other Loan Documents, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof. 
 17. Amendments. This Amendment cannot be altered, amended, changed or modified in any respect or particular unless each such alteration, amendment, change or modification shall have been agreed to
by each of the parties and reduced to writing in its entirety and signed and delivered by Borrower and the Required Lenders. 
 18. Counterpart Execution. This Amendment may be executed in any number of counterparts, all of which when taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by
signing any such counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile or electronic mail shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed
counterpart of this Amendment by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and
binding effect of this Amendment. 
 19. Severability. In case any provision in this Amendment shall be invalid, illegal
or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 [signature pages follow] 
  

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 IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above
written. 
  

			
	POWERWAVE TECHNOLOGIES, INC.,
	 a Delaware corporation,
 as Borrower

		
	By:	 	  

	Name:	 	
	Title:	 	

 [SIGNATURE PAGE TO WAIVER, CONSENT, AMENDMENT NUMBER ONE TO CREDIT AGREEMENT 
 AND AMENDMENT NUMBER ONE TO SECURITY AGREEMENT WAIVER] 

			
	 WELLS FARGO FOOTHILL, LLC,

	 a Delaware limited liability company,
 as Agent and as a Lender

		
	By:	 	  

	Name:	 	
	Title:	 	

 [SIGNATURE PAGE TO WAIVER, CONSENT, AMENDMENT NUMBER ONE TO CREDIT AGREEMENT 
 AND AMENDMENT NUMBER ONE TO SECURITY AGREEMENT WAIVER]exhibit101.htm

     

    

    TEMPUR-PEDIC
INTERNATIONAL INC.

    LONG-TERM INCENTIVE
PLAN

    

    Terms
and Conditions

    

    Adopted:  January
13, 2010

     

    I. Purpose
and Plan Overview

     

    The
purpose of this Long-Term Incentive Plan (the “LTI Plan”) of
Tempur-Pedic International Inc. (“Tempur-Pedic” or the
“Company”) is
to attract and retain the best possible executive talent, to motivate the
executive officers and employees of the Company and its Affiliates to attain
long-term objectives and strategic initiatives of the Company, and to further
align their interests with those of the stockholders of the
Company.  This LTI Plan is established under the Company’s Amended and
Restated 2003 Equity Incentive Plan, as amended from time to time (the “2003 EIP”), and
amounts paid under this LTI Plan are generally intended to qualify as
performance-based compensation under Section 162(m) of the Code.

     

    This LTI
Plan is an important variable component of the total compensation package for
the executive officers and certain employees of the Company and its Affiliates
who may be designated from time to time for participation in this LTI
Plan.  Awards under this LTI Plan may be made contingent upon the
achievement of certain financial objectives of the Company over a designated
period, as established by the Committee.

     

    The
primary concept of this LTI Plan is to establish Performance Metrics for each
Designated Period and provide for the payment of a target Award based on the
achievement of those Performance Metrics.  The actual Award paid may
be higher or lower than the target Award, based on actual performance against
the Performance Metrics.  The Designated Periods with respect to
successive Awards may be overlapping.

     

    II. Definitions

     

    Capitalized
terms used but not defined herein shall have the meaning assigned under the 2003
EIP.  As used in this
LTI Plan, the following terms shall have the following meanings:

     

    “Designated Period”
means, with respect to any Award, the period during which the achievement of the
Performance Metrics are measured.

     

    “Determination Date”
means, with respect to any Award, the earliest of (i) the 90th day after the
beginning of the Designated Period applicable to such Award, (ii) the date on
which 25% or more of the Designated Period applicable to such Award will have
been completed and (iii) the last date in the Designated Period applicable to
such Award on which achievement of the applicable Performance Metrics for such
Award remains substantially uncertain to be met.

     

    “Final Award” means a
bonus awarded and paid to a Participant for services to the Company during a
Designated Period that is based upon achievement of pre-established Performance
Metrics by the Company, a Subsidiary, a division or business unit of the Company
or the Participant.

     

    “Performance” means
the level of achievement by the Company, its Subsidiaries, divisions and
business units or the Participant of the Performance Metrics established by the
Committee pursuant to Section 5.2.

     

    “Performance Metrics”
means with respect to any Award, the performance metrics established by the
Committee with respect to such Award pursuant to Section 5.2.

     

    “Settlement Date”
means the date on which the Committee or the Board shall make the final
determination and certification of the Participant’s achievement of the
Performance Metrics for the applicable Designated Period and the amounts payable
under the Award.

     

    “Shares” means shares
of the Stock issued pursuant to a Target Award.

     

    “Subsidiary” means any
corporation or other entity of which 50% or more of the outstanding voting stock
or voting ownership interest is directly or indirectly owned or controlled by
the Company or by one or more Subsidiaries of the Company.

     

    “Target Award” means
the target award, expressed as a number of shares, established by the Committee
or the Board for each Participant under Section 5.1.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    III. Administration

     

    This LTI
Plan shall be administered by the Committee; provided, however, that at
any time and on any one or more occasions the Board may itself exercise any of
the powers and responsibilities assigned the Committee under this LTI Plan and
when so acting shall have the benefit of all of the provisions of this LTI Plan
pertaining to the Committee’s exercise of its authorities
hereunder.  Subject to the provisions of this LTI Plan, the Committee
shall also have complete authority to interpret this LTI Plan, to prescribe,
amend and rescind rules and regulations relating to it, to determine the terms
and provisions of the respective Award Agreements (which need not be identical),
and to make all other determinations necessary or advisable for the
administration of this LTI Plan. The Committee’s determinations made in good
faith on matters referred to in this LTI Plan shall be final, binding and
conclusive on all persons having or claiming any interest under this LTI Plan or
an Award made pursuant to this LTI Plan.

     

    The
Committee may grant from time to time and at any time prior to the termination
of this LTI Plan one or more Awards, either alone or in combination with any
other Awards, to the chief executive officer, executive officers and any
employee of Company and its Affiliates.

     

    The
Committee shall have the authority under Section 7.8 of the 2003 EIP with
respect to this Plan and Participants outside the United States.

     

    IV. Participation

     

    For each
Designated Period, the Committee shall select the Participants for the
Designated Period.  The Committee may limit the number of executive
officers and employees who will be Participants for a Designated
Period.  Executive officers and employees shall be designated as
Participants by the Determination Date; provided, that an executive
officer or employee who is first employed by the Company during any Designated
Period or who is assigned new duties during any Designated Period may be
designated as a Participant for a Designated Period commencing on the date the
executive officer or employee assumes his new duties through the end of the
Designated Period.

     

    Selection
as a Participant for a Designated Period or part thereof by the Committee is
limited to that Designated Period and does not guarantee or assure any person of
selection as a Participant for any other Designated Period.  An
eligible executive officer and employee will be a Participant for a Designated
Period only if designated as a Participant by the Committee for such Designated
Period.

     

    V. Designation
of Terms of Target Awards and Performance Metrics

     

    5.1 Designation of
Terms.  The Committee shall establish goals for each
Participant or group of Participants for the Designated Period in the manner and
within the time limits specified in this Section V.  For each
Participant or group of Participants for each Designated Period or part thereof,
the Committee shall specify:

              (a) The
Participants for such Designated Period.

          

              (b) The
length of the Designated Period.

     

              (c) The
Performance Metrics for such Designated Period (which may be different for
different Participants for such Designated Period).

     

              (d) Whether
the Final Award will be earned solely based on the Performance measured at the
end of the Designated Period, or will be earned in increments based on
Performance during periods within the Designated Period.

     

              (e) A Target
Award, expressed as a number of Shares, with actual Shares earned based on the
achievement of the Performance Metrics for the applicable Designated
Period.

     

              (f) The Final
Award levels, expressed as a percentage of the Target Award, that shall be paid
to the Participant at specified levels of Performance based on the Performance
Metrics established by the Committee pursuant to paragraph (c)
 above.

     

              (g) Any
specific conditions under which a Final Award specified under (f) above may
be reduced or forfeited (but not increased).

     

              (h)   Any
adjustments that may be applied in the event of change of control, extraordinary
events, death, total disability, and other termination of employment with the
Company or its Affiliates.

     

             (i) The
Participant’s obligation to pay all federal, state, local or other taxes
attributable to Awards under this LTI Plan, and the Participant’s ability to
satisfy such obligations pursuant to a Share withholding, deduction from payroll
or otherwise.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The Final
Award levels specified under paragraph (f) above may be expressed either as
(i) a matrix of percentages of the Target Award that will be paid at
specified levels of Performance or (ii) a mathematical formula that
determines the percentage of the Target Award that will be paid at varying
levels of Performance.

     

    5.2 Performance Metrics; Measurement of
Performance.  The Performance Metrics shall be the metrics
selected by the Committee by the Determination Date, provided that in selecting
Performance Metrics for Qualified Performance Based Awards, the Committee shall
select the Performance Metrics as specified in the 2003 EIP, from one or more of
the following:  pre- or after-tax net earnings, sales growth,
operating earnings, operating cash flow, return on net assets, return on
stockholders’ equity, return on assets, return on capital, Stock price growth,
stockholder returns, gross or net profit margin, earnings per share, price per
share of Stock, and market share, any of which may be measured either in
absolute terms or as compared to any incremental increase or as compared to
results of a peer group.  These metrics may be measured against
pre-determined levels or the Company’s relative performance when compared to a
pre-established peer group.  The Committee has full discretion to
select the length and kind of any applicable Performance Metrics and whether the
Performance Metrics are to apply to the Company, a Subsidiary or any division or
business unit or to the individual.

     

    5.3 Final Award Conditioned on
Performance.  Payment of a Final Award to a Participant for a
Designated Period or part thereof under this LTI Plan shall be entirely
contingent upon the Performance Metrics established by the Committee pursuant to
this Section V as they may be adjusted pursuant to Section
6.2.  Except as provided in the first paragraph of Section V, the
Performance Metrics and Target Award shall be established not later than the
Determination Date.

     

    5.4 Stock Subject to this LTI
Plan.  At no time shall the maximum number of shares of Stock
granted pursuant to or subject to outstanding Awards granted under this LTI Plan
exceed the number of shares of Stock set forth in Section 4 of the 2003 EIP;
subject, however, to
the provisions of Section 8 of the 2003 EIP.  The maximum payment
to any one person for a Designated Period is the number of shares of Stock set
forth in Section 4 of the 2003 EIP, or if the Award is settled in cash, that
number of shares multiplied by the Market Value of the Stock as the date the
Qualified Performance Based Award is granted.

     

    VI. Determination
and Payment of Final Awards

     

    6.1 Committee Certification. The
Final Award for each eligible Participant for a Designated Period or part
thereof shall be determined on the basis of the Target Award and the Performance
Metrics established by the Committee pursuant to Section V.  The
Committee shall determine on the Settlement Date, and shall certify in writing
prior to payment of any Final Award, the extent to which the Performance for the
Designated Period or part thereof satisfied the Performance Metrics established
by the Committee for the period.  Approved minutes or a written
consent of the Committee shall constitute sufficient written certification for
this purpose.

     

    6.2 Extraordinary
Events.  During the applicable Designated Period, pursuant to
Section 8 of the 2003 EIP, the Committee in its discretion may adjust the
Performance Metrics and Target Award for extraordinary events or accounting
adjustments resulting from significant asset purchases or dispositions, a Change
of Control, or other events not contemplated or otherwise considered by the
Committee or the Board when the Performance Metrics and Target Awards were
established; provided
however, that the Performance Metrics and Target Awards for a Qualified
Performance Based Award shall not be adjusted if the effect would be to increase
the amount of any Final Award other than for events specifically identified in
the Award Agreement at the time of grant.

     

    6.3 Manner of and Time
Payment.  If set forth in the Award Agreement, the Committee
may, in its sole discretion, determine to pay all or part of a Participant’s
Final Award in the form of a cash payment equivalent to the Shares calculated as
set forth in the Award Agreement.  Otherwise each Participant will
receive the applicable Final Award in Shares.  In the event of
settlement in Shares, the Shares will be granted under the 2003
EIP.  The Company will make the payment of Shares or (where relevant)
cash as soon as feasible following the Settlement Date; provided, however, in no
event will the Final Award be paid later than the fifteenth day of the third
month following the end of the last fiscal year in the Designated Period, or
following the end of any earlier fiscal year in the Designated Period in which
any pro rata portion of a Final Award may have been earned based on the terms of
the Award Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    VII. General
Provisions

     

    7.1 Benefits Not Guaranteed.
Neither the establishment nor maintenance of this LTI Plan nor participation in
this LTI Plan shall provide any guarantee or other assurance that any Final
Award will be payable under the 2003 EIP.

     

    7.2 No Employment Right.
Participation in this LTI Plan shall not be construed as constituting a
commitment, guarantee, agreement or understanding of any kind that the Company
or any Subsidiary will continue to employ any individual and this LTI Plan shall
not be construed or applied as an employment contract or obligation. Nothing in
this LTI Plan shall abridge or diminish the rights of the Company or any
Subsidiary to determine the terms and conditions of employment of any
Participant, officer or other employee or to terminate the employment of any
Participant, officer or other employee with or without reason at any
time.

     

    7.3 No Assignment or Transfer.
Neither a Participant nor any other representative of a Participant shall have
any right to assign, transfer, attach or hypothecate any amount or credit,
potential payment or right to future payments of any amount or credit or any
other benefit provided under this LTI Plan but any Participant may designate a
beneficiary or beneficiaries to receive such shares as the Participant may
designate of any Final Award earned but unpaid at the time of his or her death
by written notice to the Committee.  Payment of any amount due or to
become due under this LTI Plan shall not be subject to the claims of creditors
of the Participant or to execution by attachment or garnishment or any other
legal or equitable proceeding or process.

     

    7.4 No Limit on Other Compensation
Arrangements. Nothing contained in this LTI Plan shall prevent the
Company or any Subsidiary from adopting or continuing in effect other or
additional compensation arrangements. A Participant may have other targets under
other plans of the Company or any Subsidiary.  However, no payment
under any other plan or arrangement shall be contingent upon failure to attain
the Performance Metrics for payment of a Final Award under this LTI
Plan.

     

    7.5 Withholding and Payroll
Taxes. The Company shall be entitled to deduct from any payment made
under this LTI Plan or from any other compensation then or thereafter due any
Participant all amounts required by federal, state, local and foreign tax laws
to be withheld and shall subject any payments made under this LTI Plan to all
applicable payroll taxes and assessments.

     

    7.6 Governing Law. The validity,
construction and effect of this LTI Plan shall be determined in accordance with
the laws of the State of Delaware and applicable federal law.

     

    7.7 Severability. In the event
any provision of this LTI Plan shall be held illegal or invalid for any reason,
the remaining provisions of this LTI Plan shall not be affected and this LTI
Plan shall be construed and enforced as if the illegal or invalid provision had
not been included.

     

    VIII. Termination
and Amendment

     

    The Board
may terminate this LTI Plan at any time or may from time to time amend this LTI
Plan as it deems proper and in the best interests of the
Company.  Except as set forth in Section 6.2, no amendment adopted
after the Determination Date of a Designated Period may directly or indirectly
increase the amount of any Target Award, or alter the objective criteria in a
manner which will increase any Target Award, for that Designated Period or part
thereof.  Unless the Board otherwise expressly provides, the
termination or amendment of this LTI Plan shall not affect the terms of any
Award outstanding on the date of such termination or amendment.  In
any case, no termination or amendment of this LTI Plan may, without the consent
of any recipient of an Award granted hereunder, adversely affect the rights of
the recipient under such Award.

     

    IX. Duration
of this LTI Plan

     

    Unless
this LTI Plan shall have been earlier terminated by the Board, and subject to
the term and duration of the 2003 EIP, Awards may be granted under this LTI Plan
at any time in the period commencing on the date of approval of this LTI Plan by
the Board and ending upon the expiration of the 2003 EIP.  Awards
granted pursuant to this LTI Plan within that period shall not expire solely by
reason of the termination of this LTI Plan.  However, no Award may be
made pursuant to this LTI Plan after the expiration of the 2003
EIP.

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