Document:

Credit Agreement dated April 3, 2009

  
 CREDIT AGREEMENT 
 by and among 
 POWERWAVE TECHNOLOGIES, INC. 
 as Borrower, 
 THE LENDERS THAT ARE SIGNATORIES HERETO 
 as the Lenders, 
 and 
 WELLS FARGO FOOTHILL, LLC 
 as the Arranger and Administrative Agent 
 Dated as of April 3, 2009 
  
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	 1.
	 	 DEFINITIONS AND CONSTRUCTION.
	  	1
				
		 	 1.1
	  	 Definitions.
	  	1
				
		 	 1.2
	  	 Accounting Terms.
	  	1
				
		 	 1.3
	  	 Code.
	  	1
				
		 	 1.4
	  	 Construction
	  	1
				
		 	 1.5
	  	 Schedules and Exhibits
	  	2
			
	 2.
	 	 LOAN AND TERMS OF PAYMENT
	  	2
				
		 	 2.1
	  	 Revolver Advances
	  	2
				
		 	 2.2
	  	 Intentionally Omitted
	  	2
				
		 	 2.3
	  	 Borrowing Procedures and Settlements
	  	2
				
		 	 2.4
	  	 Payments; Reductions of Commitments; Prepayments
	  	6
				
		 	 2.5
	  	 Overadvances
	  	9
				
		 	 2.6
	  	 Interest Rates and Letter of Credit Fee: Rates, Payments, and Calculations
	  	9
				
		 	 2.7
	  	 Crediting Payments
	  	10
				
		 	 2.8
	  	 Designated Account
	  	10
				
		 	 2.9
	  	 Maintenance of Loan Account; Statements of Obligations
	  	10
				
		 	 2.10
	  	 Fees
	  	10
				
		 	 2.11
	  	 Letters of Credit
	  	11
				
		 	 2.12
	  	 LIBOR Option
	  	13
				
		 	 2.13
	  	 Capital Requirements
	  	15
			
	 3.
	 	 CONDITIONS; TERM OF AGREEMENT
	  	17
				
		 	 3.1
	  	 Conditions Precedent to the Initial Extension of Credit
	  	17
				
		 	 3.2
	  	 Conditions Precedent to all Extensions of Credit
	  	17
				
		 	 3.3
	  	 Term
	  	17
				
		 	 3.4
	  	 Effect of Termination
	  	17
				
		 	 3.5
	  	 Early Termination by Borrower
	  	18
				
		 	 3.6
	  	 Conditions Subsequent.
	  	18
			
	 4.
	 	 REPRESENTATIONS AND WARRANTIES
	  	18
				
		 	 4.1
	  	 Due Organization and Qualification; Subsidiaries
	  	19
				
		 	 4.2
	  	 Due Authorization; No Conflict
	  	19
				
		 	 4.3
	  	 Governmental Consents
	  	20
				
		 	 4.4
	  	 Binding Obligations; Perfected Liens
	  	20
				
		 	 4.5
	  	 Title to Assets; No Encumbrances
	  	20

  

 i 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	 4.6
	  	 Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort
Claims
	  	20
				
		 	 4.7
	  	 Litigation
	  	20
				
		 	 4.8
	  	 Compliance with Laws
	  	21
				
		 	 4.9
	  	 No Material Adverse Change
	  	21
				
		 	 4.10
	  	 Fraudulent Transfer
	  	21
				
		 	 4.11
	  	 Employee Benefits
	  	21
				
		 	 4.12
	  	 Environmental Condition
	  	21
				
		 	 4.13
	  	 Intellectual Property
	  	21
				
		 	 4.14
	  	 Leases
	  	22
				
		 	 4.15
	  	 Deposit Accounts and Securities Accounts
	  	22
				
		 	 4.16
	  	 Complete Disclosure
	  	22
				
		 	 4.17
	  	 Material Contracts
	  	22
				
		 	 4.18
	  	 Patriot Act
	  	22
				
		 	 4.19
	  	 Indebtedness
	  	22
				
		 	 4.20
	  	 Payment of Taxes
	  	23
				
		 	 4.21
	  	 Margin Stock
	  	23
				
		 	 4.22
	  	 Governmental Regulation
	  	23
				
		 	 4.23
	  	 OFAC
	  	23
				
		 	 4.24
	  	 Eligible Accounts and Eligible Foreign Accounts
	  	23
				
		 	 4.25
	  	 Location of Inventory and Equipment
	  	24
				
		 	 4.26
	  	 Inventory Records
	  	24
				
		 	 4.27
	  	 Convertible Notes Documents
	  	24
			
	 5.
	 	 AFFIRMATIVE COVENANTS
	  	24
				
		 	 5.1
	  	 Financial Statements, Reports, Certificates
	  	25
				
		 	 5.2
	  	 Collateral Reporting
	  	25
				
		 	 5.3
	  	 Existence
	  	25
				
		 	 5.4
	  	 Maintenance of Properties
	  	25
				
		 	 5.5
	  	 Taxes
	  	25
				
		 	 5.6
	  	 Insurance
	  	25
				
		 	 5.7
	  	 Inspection
	  	26
				
		 	 5.8
	  	 Compliance with Laws
	  	26
				
		 	 5.9
	  	 Environmental
	  	26
				
		 	 5.10
	  	 Disclosure Updates
	  	26

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	 5.11
	  	 Formation of Subsidiaries
	  	26
				
		 	 5.12
	  	 Further Assurances
	  	27
				
		 	 5.13
	  	 Lender Meetings
	  	28
				
		 	 5.14
	  	 Material Contracts
	  	28
				
		 	 5.15
	  	 Location of Inventory and Equipment
	  	28
				
		 	 5.16
	  	 Anti-Assignment Provisions; Purchase Orders
	  	28
			
	 6.
	 	 NEGATIVE COVENANTS
	  	28
				
		 	 6.1
	  	 Indebtedness
	  	28
				
		 	 6.2
	  	 Liens
	  	29
				
		 	 6.3
	  	 Restrictions on Fundamental Changes
	  	29
				
		 	 6.4
	  	 Disposal of Assets
	  	29
				
		 	 6.5
	  	 Change Name
	  	29
				
		 	 6.6
	  	 Nature of Business
	  	29
				
		 	 6.7
	  	 Prepayments and Amendments
	  	29
				
		 	 6.8
	  	 Change of Control
	  	30
				
		 	 6.9
	  	 Distributions
	  	30
				
		 	 6.10
	  	 Accounting Methods
	  	31
				
		 	 6.11
	  	 Investments
	  	31
				
		 	 6.12
	  	 Transactions with Affiliates
	  	31
				
		 	 6.13
	  	 Use of Proceeds
	  	31
				
		 	 6.14
	  	 Consignments
	  	31
				
		 	 6.15
	  	 Inventory and Equipment with Bailees
	  	32
			
	 7.
	 	 FINANCIAL COVENANTS
	  	32
			
	 8.
	 	 EVENTS OF DEFAULT
	  	33
			
	 9.
	 	 RIGHTS AND REMEDIES
	  	34
				
		 	 9.1
	  	 Rights and Remedies
	  	34
				
		 	 9.2
	  	 Remedies Cumulative
	  	34
			
	 10.
	 	 WAIVERS; INDEMNIFICATION
	  	34
				
		 	 10.1
	  	 Demand; Protest; etc
	  	35
				
		 	 10.2
	  	 The Lender Group’s Liability for Collateral
	  	35
				
		 	 10.3
	  	 Indemnification
	  	35
			
	 11.
	 	 NOTICES
	  	35
			
	 12.
	 	 CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER
	  	36

  

 iii 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
	 13.
	 	 ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS
	  	37
				
		 	 13.1
	  	 Assignments and Participations
	  	37
				
		 	 13.2
	  	 Successors
	  	39
			
	 14.
	 	 AMENDMENTS; WAIVERS
	  	39
				
		 	 14.1
	  	 Amendments and Waivers
	  	39
				
		 	 14.2
	  	 Replacement of Holdout Lender
	  	40
				
		 	 14.3
	  	 No Waivers; Cumulative Remedies
	  	41
			
	 15.
	 	 AGENT; THE LENDER GROUP
	  	41
				
		 	 15.1
	  	 Appointment and Authorization of Agent
	  	41
				
		 	 15.2
	  	 Delegation of Duties
	  	42
				
		 	 15.3
	  	 Liability of Agent
	  	42
				
		 	 15.4
	  	 Reliance by Agent
	  	42
				
		 	 15.5
	  	 Notice of Default or Event of Default
	  	42
				
		 	 15.6
	  	 Credit Decision
	  	43
				
		 	 15.7
	  	 Costs and Expenses; Indemnification
	  	43
				
		 	 15.8
	  	 Agent in Individual Capacity
	  	44
				
		 	 15.9
	  	 Successor Agent
	  	44
				
		 	 15.10
	  	 Lender in Individual Capacity
	  	44
				
		 	 15.11
	  	 Collateral Matters
	  	45
				
		 	 15.12
	  	 Restrictions on Actions by Lenders; Sharing of Payments
	  	45
				
		 	 15.13
	  	 Agency for Perfection
	  	46
				
		 	 15.14
	  	 Payments by Agent to the Lenders
	  	46
				
		 	 15.15
	  	 Concerning the Collateral and Related Loan Documents
	  	46
				
		 	 15.16
	  	 Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
	  	46
				
		 	 15.17
	  	 Several Obligations; No Liability
	  	47
			
	 16.
	 	 WITHHOLDING TAXES
	  	47
			
	 17.
	 	 GENERAL PROVISIONS
	  	49
				
		 	 17.1
	  	 Effectiveness
	  	49
				
		 	 17.2
	  	 Section Headings
	  	49
				
		 	 17.3
	  	 Interpretation
	  	49
				
		 	 17.4
	  	 Severability of Provisions
	  	50
				
		 	 17.5
	  	 Bank Product Providers
	  	50
				
		 	 17.7
	  	 Counterparts; Electronic Execution
	  	50

  

 iv 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	 17.8
	  	 Revival and Reinstatement of Obligations
	  	50
				
		 	 17.9
	  	 Confidentiality
	  	50
				
		 	 17.13
	  	 Integration
	  	51

  

 v 

 CREDIT AGREEMENT 
 THIS CREDIT AGREEMENT (this “Agreement”), is entered into as of April 3, 2009, by and among the lenders identified on the signature pages hereof (such lenders, together with their
respective successors and permitted assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), WELLS FARGO FOOTHILL, LLC, a Delaware limited liability company, as
the arranger and administrative agent for the Lenders (in such capacity, together with its successors and assigns in such capacity, “Agent”), and POWERWAVE TECHNOLOGIES, INC., a Delaware corporation
(“Borrower”). 
 The parties agree as follows: 
  

	1.	DEFINITIONS AND CONSTRUCTION. 

 1.1
Definitions. Capitalized terms used in this Agreement shall have the meanings specified therefor on Schedule 1.1. 
 1.2
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. When used herein, the term “financial statements” shall include the notes and schedules thereto. Whenever the term
“Borrower” is used in respect of a financial covenant or a related definition, it shall be understood to mean Borrower and its Subsidiaries on a consolidated basis, unless the context clearly requires otherwise. 
 1.3 Code. Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth in the Code unless otherwise
defined herein; provided, however, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of the
Code shall govern. 
 1.4 Construction. Unless the context of this Agreement or any other Loan Document 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.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement or any other Loan Document refer to this Agreement
or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Agreement or in any other Loan Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements,
substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth
herein). The words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract
rights. Any reference herein or in any other Loan Document to the satisfaction or repayment in full of the Obligations shall mean the repayment in full in cash (or, in the case of Letters of Credit or Bank Products, providing Letter of Credit
Collateralization) of all Obligations other than unasserted contingent indemnification Obligations and other than any Bank Product Obligations that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding and that are
not required by the provisions of this Agreement to be repaid or cash collateralized. Any reference herein to any Person shall be construed to include such Person’s successors and assigns. Any requirement of a writing contained herein or in any
other Loan Document shall be satisfied by the transmission of a Record. 

 1.5 Schedules and Exhibits. All of the schedules and exhibits attached to this Agreement
shall be deemed incorporated herein by reference. 
  

	2.	LOAN AND TERMS OF PAYMENT. 

 2.1 Revolver
Advances. 
 (a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender with a
Commitment agrees (severally, not jointly or jointly and severally) to make advances (“Advances”) to Borrower in an amount at any one time outstanding not to exceed such Lender’s Pro Rata Share of an amount equal to the
lesser of (i) the Maximum Revolver Amount less the Letter of Credit Usage at such time, and (ii) the Borrowing Base at such time less the Letter of Credit Usage at such time. 
 (b) Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any
time during the term of this Agreement. The outstanding principal amount of the Advances, together with interest accrued thereon, shall be due and payable on the Maturity Date or, if earlier, on the date on which they are declared due and payable
pursuant to the terms of this Agreement. 
 (c) Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have
the right to establish reserves against the Borrowing Base in such amounts, and with respect to such matters, as Agent in its Permitted Discretion shall deem necessary or appropriate, including (i) reserves for the variance risk implied in the
foreign currency of any Eligible Account, Eligible Foreign Account, or Letter of Credit payable in such foreign currency, (ii) reserves with respect to sums that Borrower or its Subsidiaries are required to pay under any Section of this
Agreement or any other Loan Document (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, and (ii) reserves with respect to amounts owing by
Borrower or its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have a priority superior to the
Agent’s Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable
law) in and to such item of the Collateral; provided that Agent shall not have the right to impose reserves against the Borrowing Base in respect of Permitted Indebtedness incurred by Borrower or one of its Subsidiaries unless an Event of
Default has occurred and is continuing or a default in respect of such Indebtedness has occurred and is continuing. 
 2.2
Intentionally Omitted. 
 2.3 Borrowing Procedures and Settlements. 
 (a) Procedure for Borrowing. Each Borrowing shall be made by a written request by an Authorized Person delivered to Agent. Unless Swing Lender is
not obligated to make a Swing Loan pursuant to Section 2.3(b) below, such notice must be received by Agent no later than 10:00 a.m. (California time) on the Business Day that is the requested Funding Date specifying (i) the amount
of such Borrowing, and (ii) the requested Funding Date, which shall be a Business Day; provided, however, that if Swing Lender is not obligated to make a Swing Loan as to a requested Borrowing, such notice must be received by
Agent no later than 10:00 a.m. (California time) on the Business Day prior to the date that is the requested Funding Date. At Agent’s election, in lieu of delivering the above-described written request, any Authorized Person may give Agent
telephonic notice of such request by the required time. In such circumstances, Borrower agrees that any such telephonic notice will be confirmed in writing within 24 hours of the giving of such telephonic notice, but the failure to provide such
written confirmation shall not affect the validity of the request. 
 (b) Making of Swing Loans. In the case of a request for an
Advance and so long as either (i) the aggregate amount of Swing Loans made since the last Settlement Date, minus the amount of 

  

 - 2 - 

 
Collections or payments applied to Swing Loans since the last Settlement Date, plus the amount of the requested Advance does not exceed $10,000,000, or
(ii) Swing Lender, in its sole discretion, shall agree to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender shall make an Advance in the amount of such Borrowing (any such Advance made solely by Swing Lender pursuant to
this Section 2.3(b) being referred to as a “Swing Loan” and such Advances being referred to collectively as “Swing Loans”) available to Borrower on the Funding Date applicable thereto by transferring
immediately available funds to Borrower’s Designated Account. Each Swing Loan shall be deemed to be an Advance hereunder and shall be subject to all the terms and conditions applicable to other Advances, except that all payments on any Swing
Loan shall be payable to Swing Lender solely for its own account. Subject to the provisions of Section 2.3(d)(ii), Swing Lender shall not make and shall not be obligated to make any Swing Loan if Swing Lender has actual knowledge that
(i) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing, or (ii) the requested Borrowing would exceed the Availability on
such Funding Date. Swing Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in Section 3 have been satisfied on the Funding Date applicable thereto prior to making any Swing Loan.
The Swing Loans shall be secured by the Agent’s Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. 
 (c) Making of Loans. 
 (i) In the
event that Swing Lender is not obligated to make a Swing Loan, then promptly after receipt of a request for a Borrowing pursuant to Section 2.3(a), Agent shall notify the Lenders, not later than 1:00 p.m. (California time) on the
Business Day immediately preceding the Funding Date applicable thereto, by telecopy, telephone, or other similar form of transmission, of the requested Borrowing. Each Lender shall make the amount of such Lender’s Pro Rata Share of the
requested Borrowing available to Agent in immediately available funds, to Agent’s Account, not later than 10:00 a.m. (California time) on the Funding Date applicable thereto. After Agent’s receipt of the proceeds of such Advances, Agent
shall make the proceeds thereof available to Borrower on the applicable Funding Date by transferring immediately available funds equal to such proceeds received by Agent to the Designated Account; provided, however, that, subject to
the provisions of Section 2.3(d)(ii), Agent shall not request any Lender to make, and no Lender shall have the obligation to make, any Advance if Agent shall have actual knowledge that (1) one or more of the applicable conditions
precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2) the requested Borrowing would exceed the Availability on such Funding
Date. 
 (ii) Unless Agent receives notice from a Lender prior to 9:00 a.m. (California time) on the date of a Borrowing, that such Lender
will not make available as and when required hereunder to Agent for the account of Borrower the amount of that Lender’s Pro Rata Share of the Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent in
immediately available funds on the Funding Date and Agent may (but shall not be so required), in reliance upon such assumption, make available to Borrower on such date a corresponding amount. If any Lender shall not have made its full amount
available to Agent in immediately available funds and if Agent in such circumstances has made available to Borrower such amount, that Lender shall on the Business Day following such Funding Date make such amount available to Agent, together with
interest at the Defaulting Lender Rate for each day during such period. A notice submitted by Agent to any Lender with respect to amounts owing under this subsection shall be conclusive, absent manifest error. If such amount is so made available,
such payment to Agent shall constitute such Lender’s Advance on the date of Borrowing for all purposes of this Agreement. If such amount is not made available to Agent on the Business Day following the Funding Date, Agent will notify Borrower
of such failure to fund and, upon demand by Agent, Borrower shall pay such amount to Agent for Agent’s account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate
applicable at the time to the Advances composing such Borrowing. The failure of any Lender to make any Advance on any Funding Date shall not relieve any other Lender of any obligation 

  

 - 3 - 

 
hereunder to make an Advance on such Funding Date, but no Lender shall be responsible for the failure of any other Lender to make the Advance to be made by
such other Lender on any Funding Date. 
 (iii) Agent shall not be obligated to transfer to a Defaulting Lender any payments made by
Borrower to Agent for the Defaulting Lender’s benefit, and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments to each other non-Defaulting Lender member of the Lender Group ratably in accordance
with their Commitments (but only to the extent that such Defaulting Lender’s Advance was funded by the other members of the Lender Group) or, if so directed by Borrower and if no Default or Event of Default has occurred and is continuing (and
to the extent such Defaulting Lender’s Advance was not funded by the Lender Group), retain same to be re-advanced to Borrower as if such Defaulting Lender had made Advances to Borrower. Subject to the foregoing, Agent may hold and, in its
Permitted Discretion, re-lend to Borrower for the account of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender. Solely for the purposes of voting or consenting to matters
with respect to the Loan Documents, such Defaulting Lender shall be deemed not to be a “Lender” and such Lender’s Commitment shall be deemed to be zero. This Section shall remain effective with respect to such Lender until
(x) the Obligations under this Agreement shall have been declared or shall have become immediately due and payable, (y) the non-Defaulting Lenders, Agent, and Borrower shall have waived such Defaulting Lender’s default in writing, or
(z) the Defaulting Lender makes its Pro Rata Share of the applicable Advance and pays to Agent all amounts owing by Defaulting Lender in respect thereof. The operation of this Section shall not be construed to increase or otherwise affect the
Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by Borrower of its duties and obligations hereunder to
Agent or to the Lenders other than such Defaulting Lender. Any such failure to fund by any Defaulting Lender shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle Borrower at its option, upon written notice
to Agent, to arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to Agent. In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall
have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have executed and delivered such document if
it fails to do so) subject only to being repaid its share of the outstanding Obligations (other than Bank Product Obligations, but including an assumption of its Pro Rata Share of the Risk Participation Liability) without any premium or penalty of
any kind whatsoever; provided, however, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups’ or Borrower’s rights or remedies against any
such Defaulting Lender arising out of or in relation to such failure to fund. 
 (d) Protective Advances and Optional Overadvances.

 (i) Agent hereby is authorized by Borrower and the Lenders, from time to time in Agent’s sole discretion, (A) after the
occurrence and during the continuance of a Default or an Event of Default, or (B) at any time that any of the other applicable conditions precedent set forth in Section 3 are not satisfied, to make Advances to Borrower on behalf of
the Lenders that Agent, in its Permitted Discretion deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance the likelihood of repayment of the Obligations (other than the Bank
Product Obligations) (any of the Advances described in this Section 2.3(d)(i) shall be referred to as “Protective Advances”). 
 (ii) Any contrary provision of this Agreement notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as applicable, and either Agent or Swing Lender, as applicable, may, but is not obligated to,
knowingly and intentionally, continue to make Advances (including Swing Loans) to Borrower notwithstanding that an Overadvance exists or thereby would be created, so long as (A) after giving effect to such Advances, the outstanding Revolver
Usage does not exceed the Borrowing Base by more than $5,000,000, and (B) after giving effect to such Advances, the outstanding Revolver Usage (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group
Expenses) does not exceed 

  

 - 4 - 

 
the Maximum Revolver Amount. In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by the immediately foregoing
provisions, regardless of the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable (and prior to making any (or any additional) intentional Overadvances (except for and excluding amounts charged to the Loan
Account for interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in imminent harm to the Collateral or its value), and the Lenders with Commitments thereupon shall, together with Agent, jointly determine
the terms of arrangements that shall be implemented with Borrower intended to reduce, within a reasonable time, the outstanding principal amount of the Advances to Borrower to an amount permitted by the preceding sentence. In such circumstances, if
any Lender with a Commitment objects to the proposed terms of reduction or repayment of any Overadvance, the terms of reduction or repayment thereof shall be implemented according to the determination of the Required Lenders. Each Lender with a
Commitment shall be obligated to settle with Agent as provided in Section 2.3(e) for the amount of such Lender’s Pro Rata Share of any unintentional Overadvances by Agent reported to such Lender, any intentional Overadvances made as
permitted under this Section 2.3(d)(ii), and any Overadvances resulting from the charging to the Loan Account of interest, fees, or Lender Group Expenses. 
 (iii) Each Protective Advance and each Overadvance shall be deemed to be an Advance hereunder, except that no Protective Advance or Overadvance shall be eligible to be a LIBOR Rate Loan and, prior to Settlement
therefor, all payments on the Protective Advances shall be payable to Agent solely for its own account. The Protective Advances and Overadvances shall be repayable on demand, secured by the Agent’s Liens, constitute Obligations hereunder, and
bear interest at the rate applicable from time to time to Advances that are Base Rate Loans. The provisions of this Section 2.3(d) are for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not intended to benefit
Borrower in any way. 
 (e) Settlement. It is agreed that each Lender’s funded portion of the Advances is intended by the Lenders
to equal, at all times, such Lender’s Pro Rata Share of the outstanding Advances. Such agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of Borrower) that in order to
facilitate the administration of this Agreement and the other Loan Documents, settlement among the Lenders as to the Advances, the Swing Loans, and the Protective Advances shall take place on a periodic basis in accordance with the following
provisions: 
 (i) Agent shall request settlement (“Settlement”) with the Lenders on a weekly basis, or on a more frequent
basis if so determined by Agent (1) on behalf of Swing Lender, with respect to the outstanding Swing Loans, (2) for itself, with respect to the outstanding Protective Advances, and (3) with respect to Borrower’s or its
Subsidiaries’ Collections or payments received, as to each by notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 2:00 p.m. (California time) on the Business Day
immediately prior to the date of such requested Settlement (the date of such requested Settlement being the “Settlement Date”). Such notice of a Settlement Date shall include a summary statement of the amount of outstanding
Advances, Swing Loans, and Protective Advances for the period since the prior Settlement Date. Subject to the terms and conditions contained herein (including Section 2.3(c)(iii)): (y) if a Lender’s balance of the Advances
(including Swing Loans and Protective Advances) exceeds such Lender’s Pro Rata Share of the Advances (including Swing Loans and Protective Advances) as of a Settlement Date, then Agent shall, by no later than 12:00 p.m. (California time) on the
Settlement Date, transfer in immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement Date, its Pro Rata Share
of the Advances (including Swing Loans and Protective Advances), and (z) if a Lender’s balance of the Advances (including Swing Loans and Protective Advances) is less than such Lender’s Pro Rata Share of the Advances (including Swing
Loans and Protective Advances) as of a Settlement Date, such Lender shall no later than 12:00 p.m. (California time) on the Settlement Date transfer in immediately available funds to the Agent’s Account, an amount such that each such Lender
shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of the Advances (including Swing Loans and Protective Advances). Such amounts made available to Agent under clause (z) of the immediately preceding sentence
shall be applied against the amounts of the applicable Swing Loans or Protective Advances and, together with the portion of 

  

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such Swing Loans or Protective Advances representing Swing Lender’s Pro Rata Share thereof, shall constitute Advances of such Lenders. If any such
amount is not made available to Agent by any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its account such amount on demand from such Lender together with
interest thereon at the Defaulting Lender Rate. 
 (ii) In determining whether a Lender’s balance of the Advances, Swing Loans, and
Protective Advances is less than, equal to, or greater than such Lender’s Pro Rata Share of the Advances, Swing Loans, and Protective Advances as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to such balance the
portion of payments actually received in good funds by Agent with respect to principal, interest, fees payable by Borrower and allocable to the Lenders hereunder, and proceeds of Collateral. 
 (iii) Between Settlement Dates, Agent, to the extent Protective Advances or Swing Loans are outstanding, may pay over to Agent or Swing Lender, as
applicable, any Collections or payments received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Advances, for application to the Protective Advances or Swing Loans. Between Settlement Dates,
Agent, to the extent no Protective Advances or Swing Loans are outstanding, may pay over to Swing Lender any Collections or payments received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the
Advances, for application to Swing Lender’s Pro Rata Share of the Advances. If, as of any Settlement Date, Collections or payments of Borrower or its Subsidiaries received since the then immediately preceding Settlement Date have been applied
to Swing Lender’s Pro Rata Share of the Advances other than to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the Lenders, and Agent shall pay to the Lenders, to be applied to the
outstanding Advances of such Lenders, an amount such that each Lender shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the Advances. During the period between Settlement Dates, Swing Lender with respect to
Swing Loans, Agent with respect to Protective Advances, and each Lender (subject to the effect of agreements between Agent and individual Lenders) with respect to the Advances other than Swing Loans and Protective Advances, shall be entitled to
interest at the applicable rate or rates payable under this Agreement on the daily amount of funds employed by Swing Lender, Agent, or the Lenders, as applicable. 
 (f) Notation. Agent, as a non-fiduciary agent for Borrower, shall maintain a register showing the principal amount of the Advances owing to each Lender, including the Swing Loans owing to Swing Lender, and
Protective Advances owing to Agent, and the interests therein of each Lender, from time to time and such records shall, absent manifest error, conclusively be presumed to be correct and accurate. 
 (g) Lenders’ Failure to Perform. All Advances (other than Swing Loans and Protective Advances) shall be made by the Lenders contemporaneously
and in accordance with their Pro Rata Shares. It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Advance (or other extension of credit) hereunder, nor shall any
Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse any other Lender from
its obligations hereunder. 
 2.4 Payments; Reductions of Commitments; Prepayments. 
 (a) Payments by Borrower. 
 (i) Except
as otherwise expressly provided herein, all payments by Borrower shall be made to Agent’s Account for the account of the Lender Group and shall be made in immediately available funds, no later than 11:00 a.m. (California time) on the date
specified herein. Any payment received by Agent later than 11:00 a.m. (California time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business
Day. 
  

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 (ii) Unless Agent receives notice from Borrower prior to the date on which any payment is due to the
Lenders that Borrower will not make such payment in full as and when required, Agent may assume that Borrower has made (or will make) such payment in full to Agent on such date in immediately available funds and Agent may (but shall not be so
required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent Borrower does not make such payment in full to Agent on the date when due, each Lender
severally shall repay to Agent on demand such amount distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the date repaid. 
 (b) Apportionment and Application. 
 (i) So long as no Application Event has occurred and is continuing and except as otherwise provided with respect to Defaulting Lenders, all principal and interest payments shall be apportioned ratably among the Lenders (according to the
unpaid principal balance of the Obligations to which such payments relate held by each Lender) and all payments of fees and expenses (other than fees or expenses that are for Agent’s separate account) shall be apportioned ratably among the
Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee or expense relates. All payments to be made hereunder by Borrower shall be remitted to Agent and all (subject to Section 2.4(b)(iv)) such
payments, and all proceeds of Collateral received by Agent, shall be applied, so long as no Application Event has occurred and is continuing, to reduce the balance of the Advances outstanding and, thereafter, to Borrower (to be wired to the
Designated Account) or such other Person entitled thereto under applicable law. 
 (ii) At any time that an Application Event has occurred
and is continuing and except as otherwise provided with respect to Defaulting Lenders, all payments remitted to Agent and all proceeds of Collateral received by Agent shall be applied as follows: 
 (A) first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Agent under the Loan Documents,
until paid in full, 
 (B) second, to pay any fees or premiums then due to Agent under the Loan Documents until paid in full,

 (C) third, to pay interest due in respect of all Protective Advances until paid in full, 
 (D) fourth, to pay the principal of all Protective Advances until paid in full, 
 (E) fifth, ratably to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to any of the Lenders
under the Loan Documents, until paid in full, 
 (F) sixth, ratably to pay any fees or premiums then due to any of the Lenders under
the Loan Documents until paid in full, 
 (G) seventh, ratably to pay interest due in respect of the Advances (other than Protective
Advances) and the Swing Loans until paid in full, 
 (H) eighth, ratably (i) to pay the principal of all Swing Loans until paid
in full, (ii) to pay the principal of all Advances until paid in full, (iii) to Agent, to be held by Agent, for the benefit of Issuing Lender and those Lenders having a share of the Risk Participation Liability, as cash collateral in an
amount up to 105% of the Letter of Credit Usage, and (iv) to Agent, to be held by Agent, for the benefit of the Bank Product Providers, as cash collateral in an amount up to the amount the Bank Product 

  

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Providers reasonably determine to be the credit exposure of Borrower and its Subsidiaries in respect of Bank Products, 
 (I) ninth, to pay any other Obligations, and 
 (J) tenth, to Borrower (to be wired to the Designated Account) or such other Person entitled thereto under applicable law. 
 (iii) Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as
provided in Section 2.3(e). 
 (iv) In each instance, so long as no Application Event has occurred and is continuing,
Section 2.4(b)(i) shall not apply to any payment made by Borrower to Agent and specified by Borrower to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement or any other
Loan Document. 
 (v) For purposes of Section 2.4(b)(ii), “paid in full” means payment in cash of all amounts owing
under the Loan Documents, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense
reimbursements, whether or not any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding. 
 (vi) In the event of a direct conflict between the priority provisions of this Section 2.4 and any other provision contained in any other Loan Document, it is the intention of the parties hereto that such provisions be read
together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.4 shall
control and govern. 
 (c) Reduction of Commitments. 
 (i) Commitments. The Commitments shall terminate on the Maturity Date. Borrower may reduce the Commitments on any date to an amount not less than the greater of (A) $25,000,000, and (B) sum of
(x) the Revolver Usage as of such date, plus (y) the principal amount of all Advances not yet made as to which a request has been given by Borrower under Section 2.3(a), plus (z) the amount of all Letters of Credit not yet
issued as to which a request has been given by Borrower pursuant to Section 2.11(a). Each such reduction shall be in an amount which is an integral multiple of $1,000,000, shall be made by providing not less than 10 Business Days prior
written notice to Agent and shall be irrevocable. Once reduced, the Commitments may not be increased. Each such reduction of the Commitments shall reduce the Commitments of each Lender proportionately in accordance with its Pro Rata Share thereof.

 (ii) Intentionally Omitted. 
 (d) Optional Prepayments. 
 (i) Advances. Borrower may prepay the principal of any Advance at any time in whole or in
part. 
 (ii) Intentionally Omitted. 
  

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 (e) Intentionally Omitted. 
 (f) Intentionally Omitted. 
 2.5
Overadvances. If, at any time or for any reason, the amount of Obligations owed by Borrower to the Lender Group pursuant to Section 2.1 or Section 2.11 is greater than any of the limitations set forth in
Section 2.1 or Section 2.11, as applicable (an “Overadvance”), Borrower shall immediately pay to Agent, in cash, the amount of such excess, which amount shall be used by Agent to reduce the Obligations in
accordance with the priorities set forth in Section 2.4(b). Borrower promises to pay the Obligations (including principal, interest, fees, costs, and expenses) in Dollars in full on the Maturity Date or, if earlier, on the date on which
the Obligations are declared due and payable pursuant to the terms of this Agreement. 
 2.6 Interest Rates and Letter of Credit Fee:
Rates, Payments, and Calculations. 
 (a) Interest Rates. Except as provided in Section 2.6(c), all Obligations (except
for undrawn Letters of Credit and except for Bank Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof as follows: 
 (i) if the relevant Obligation is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the Margin, and 
 (ii) otherwise, at a per annum rate equal to the Base Rate plus the Margin. 
 (b) Letter of Credit Fee. Borrower shall pay Agent (for the ratable benefit of the Lenders with a Commitment, subject to any agreements between
Agent and individual Lenders), a Letter of Credit fee (in addition to the charges, commissions, fees, and costs set forth in Section 2.11(e)) which shall accrue at a per annum rate equal to the Margin times the Daily Balance of the
undrawn amount of all outstanding Letters of Credit. 
 (c) Default Rate. Upon the occurrence and during the continuation of an Event
of Default and at the election of the Required Lenders, 
 (i) all Obligations (except for undrawn Letters of Credit and except for Bank
Product Obligations) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest on the Daily Balance thereof at a per annum rate equal to 2 percentage points above the per annum rate otherwise applicable hereunder,
and 
 (ii) the Letter of Credit fee provided for in Section 2.6(b) shall be increased to 2 percentage points above the per
annum rate otherwise applicable hereunder. 
 (d) Payment. Except as provided to the contrary in Section 2.10 or
Section 2.12(a), interest, Letter of Credit fees, and all other fees payable hereunder shall be due and payable, in arrears, on the first day of each month at any time that Obligations or Commitments are outstanding. Borrower hereby
authorizes Agent, from time to time without prior notice to Borrower, to charge all interest and fees (when due and payable), all Lender Group Expenses (as and when incurred), all charges, commissions, fees, and costs provided for in
Section 2.11(e) (as and when accrued or incurred), all fees and costs provided for in Section 2.10 (as and when accrued or incurred), and all other payments as and when due and payable under any Loan Document (including any
amounts due and payable to the Bank Product Providers in respect of Bank Products) to the Loan Account, which amounts thereafter shall constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate
Loans. Any interest not paid when due shall be compounded by being charged to the Loan Account and shall thereafter constitute Advances hereunder and shall accrue interest at the rate then applicable to Advances that are Base Rate Loans. 

 

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 (e) Computation. All interest and fees chargeable under the Loan Documents shall be computed on
the basis of a 360 day year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue. In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon
the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate. 
 (f)
Intent to Limit Charges to Maximum Lawful Rate. In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of
competent jurisdiction shall, in a final determination, deem applicable. Borrower and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it;
provided, however, that, anything contained herein to the contrary notwithstanding, if said rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of
this Agreement, Borrower is and shall be liable only for the payment of such maximum as allowed by law, and payment received from Borrower in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the
Obligations to the extent of such excess. 
 2.7 Crediting Payments. The receipt of any payment item by Agent shall not be
considered a payment on account unless such payment item is a wire transfer of immediately available federal funds made to the Agent’s Account or unless and until such payment item is honored when presented for payment. Should any payment item
not be honored when presented for payment, then Borrower shall be deemed not to have made such payment and interest shall be calculated accordingly. Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received
by Agent only if it is received into the Agent’s Account on a Business Day on or before 11:00 a.m. (California time). If any payment item is received into the Agent’s Account on a non-Business Day or after 11:00 a.m. (California time) on a
Business Day, it shall be deemed to have been received by Agent as of the opening of business on the immediately following Business Day. 
 2.8 Designated Account. Agent is authorized to make the Advances, and Issuing Lender is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone
purporting to be an Authorized Person or, without instructions, if pursuant to Section 2.6(d). Borrower agrees to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of
the Advances requested by Borrower and made by Agent or the Lenders hereunder. Unless otherwise agreed by Agent and Borrower, any Advance, Protective Advance, or Swing Loan requested by Borrower and made by Agent or the Lenders hereunder shall be
made to the Designated Account. 
 2.9 Maintenance of Loan Account; Statements of Obligations. Agent shall maintain an account
on its books in the name of Borrower (the “Loan Account”) on which Borrower will be charged with all Advances (including Protective Advances and Swing Loans) made by Agent, Swing Lender, or the Lenders to Borrower or for
Borrower’s account, the Letters of Credit issued by Issuing Lender for Borrower’s account, and with all other payment Obligations hereunder or under the other Loan Documents (except for Bank Product Obligations), including, accrued
interest, fees and expenses, and Lender Group Expenses. In accordance with Section 2.7, the Loan Account will be credited with all payments received by Agent from Borrower or for Borrower’s account. Agent shall render statements
regarding the Loan Account to Borrower, including principal, interest, fees, and including an itemization of all charges and expenses constituting Lender Group Expenses owing, and such statements, absent manifest error, shall be conclusively
presumed to be correct and accurate and constitute an account stated between Borrower and the Lender Group unless, within 30 days after receipt thereof by Borrower, Borrower shall deliver to Agent written objection thereto describing the error or
errors contained in any such statements. 
 2.10 Fees. Borrower shall pay to Agent, 
  

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 (a) for the account of Agent, as and when due and payable under the terms of the Fee Letter, the fees set
forth in the Fee Letter. 
 (b) for the ratable account of those Lenders with Commitments, on the first day of each month from and after the
Closing Date up to the first day of the month prior to the Payoff Date and on the Payoff Date, an unused line fee in an amount equal to the 0.75% per annum times the result of (i) the Maximum Revolver Amount, less (ii) the average
Daily Balance of the Revolver Usage during the immediately preceding month (or portion thereof). 
 2.11 Letters of Credit.

 (a) Subject to the terms and conditions of this Agreement, the Issuing Lender agrees to issue letters of credit for the account of Borrower
(each, an “L/C”) or to purchase participations or to indemnify, guarantee, or agree to reimburse the Underlying Issuer (including by way of being a co-applicant with respect to an Underlying Letter of Credit) (each such undertaking,
an “L/C Undertaking”) with respect to letters of credit issued by an Underlying Issuer (as of the Closing Date, the prospective Underlying Issuer is to be Wells Fargo) for the account of Borrower. Each request for the issuance of a
Letter of Credit, or the amendment, renewal, or extension of any outstanding Letter of Credit, shall be made in writing by an Authorized Person and delivered to the Issuing Lender and Agent via hand delivery, telefacsimile, or other electronic
method of transmission reasonably in advance of the requested date of issuance, amendment, renewal, or extension. Each such request shall be in form and substance reasonably satisfactory to the Issuing Lender in its Permitted Discretion and shall
specify (i) the amount of such L/C or Underlying Letter of Credit, (ii) the date of issuance, amendment, renewal, or extension of such L/C or Underlying Letter of Credit, (iii) the expiration date of such L/C or Underlying Letter of
Credit, (iv) the name and address of the beneficiary of the L/C (or the beneficiary of the Underlying Letter of Credit, as applicable), and (v) such other information (including, in the case of an amendment, renewal, or extension,
identification of the outstanding Letter of Credit to be so amended, renewed, or extended) as shall be necessary to prepare, amend, renew, or extend such L/C or Underlying Letter of Credit. Anything contained herein to the contrary notwithstanding,
the Issuing Lender may, but shall not be obligated to issue a Letter of Credit that supports the obligations of Borrower or its Subsidiaries in respect of (1) a lease of real property, or (2) an employment contract. If requested by the
Issuing Lender, Borrower also shall be an applicant under the application with respect to any Underlying Letter of Credit that is to be the subject of an L/C Undertaking. The Issuing Lender shall have no obligation to issue a Letter of Credit if any
of the following would result after giving effect to the issuance of such requested Letter of Credit: 
 (i) the Letter of Credit Usage would
exceed the Borrowing Base less the outstanding amount of Advances, or 
 (ii) the Letter of Credit Usage would exceed $30,000,000,

 (iii) the Foreign Letter of Credit Usage would exceed $500,000, 
 (iv) the Letter of Credit Usage would exceed the Maximum Revolver Amount less the sum of (A) the Bank Product Reserve, and (B) the
outstanding amount of Advances. 
 Each Letter of Credit (and corresponding Underlying Letter of Credit) shall be in form and substance
acceptable to the Issuing Lender (in the exercise of its Permitted Discretion). If Underlying Issuer is obligated to advance funds under an Underlying Letter of Credit, Borrower shall pay to Issuing Lender an amount equal to the L/C Disbursement not
later than 11:00 a.m., California time, on the date that such L/C Disbursement is made, if Borrower shall have received written or telephonic notice of such L/C Disbursement prior to 10:00 a.m., California time, on such date, or, if such notice has
not been received by Borrower prior to such time on such date, then not later than 11:00 a.m., California time, on the Business Day that Borrower receives such notice, if such notice is received prior to 10:00 a.m., California time, on the date of
receipt, and, in the absence of such reimbursement, the amount of the L/C Disbursement immediately and automatically 

  

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shall be deemed to be an Advance hereunder and, initially, shall bear interest at the rate then applicable to Advances that are Base Rate Loans. To the
extent the amount of an L/C Disbursement is deemed to be an Advance hereunder, Borrower’s obligation to pay the amount of such L/C Disbursement to Issuing Lender shall be discharged and replaced by the resulting Advance. Promptly following
receipt by Agent of any payment from Borrower pursuant to this paragraph, Agent shall distribute such payment to the Issuing Lender or, to the extent that Lenders have made payments pursuant to Section 2.11(b) to reimburse the Issuing
Lender, then to such Lenders and the Issuing Lender as their interests may appear. 
 (b) Promptly following receipt of a notice of an L/C
Disbursement pursuant to Section 2.11(a), each Lender with a Commitment agrees to fund its Pro Rata Share of any Advance deemed made pursuant to the foregoing subsection on the same terms and conditions as if Borrower had requested such
Advance and Agent shall promptly pay to Issuing Lender the amounts so received by it from the Lenders. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the
part of the Issuing Lender or the Lenders with Commitments, the Issuing Lender shall be deemed to have granted to each Lender with a Commitment, and each Lender with a Commitment shall be deemed to have purchased, a participation in each Letter of
Credit, in an amount equal to its Pro Rata Share of the Risk Participation Liability of such Letter of Credit, and each such Lender agrees to pay to Agent, for the account of the Issuing Lender, such Lender’s Pro Rata Share of any payments made
by the Underlying Issuer under the applicable Underlying Letter of Credit. In consideration and in furtherance of the foregoing, each Lender with a Commitment hereby absolutely and unconditionally agrees to pay to Agent, for the account of the
Issuing Lender, such Lender’s Pro Rata Share of each L/C Disbursement made by the Underlying Issuer and not reimbursed by Borrower on the date due as provided in Section 2.11(a), or of any reimbursement payment required to be
refunded to Borrower for any reason. Each Lender with a Commitment acknowledges and agrees that its obligation to deliver to Agent, for the account of the Issuing Lender, an amount equal to its respective Pro Rata Share of each L/C Disbursement made
by the Underling Issuer pursuant to this Section 2.11(b) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the failure to satisfy any
condition set forth in Section 3. If any such Lender fails to make available to Agent the amount of such Lender’s Pro Rata Share of an L/C Disbursement made by the Underlying Issuer as provided in this Section, such Lender shall be
deemed to be a Defaulting Lender and Agent (for the account of the Issuing Lender) shall be entitled to recover such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate until paid in full. 
 (c) Borrower hereby agrees to indemnify, save, defend, and hold the Lender Group harmless from any loss, cost, expense, or liability, and reasonable
attorneys fees incurred by the Lender Group arising out of or in connection with any Letter of Credit; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to the
extent that it is caused by the gross negligence or willful misconduct of the Issuing Lender or any other member of the Lender Group. Borrower agrees to be bound by the Underlying Issuer’s regulations and interpretations of any Underlying
Letter of Credit or by Issuing Lender’s interpretations of any L/C issued by Issuing Lender to or for Borrower’s account, even though this interpretation may be different from Borrower’s own, and Borrower understands and agrees that
the Lender Group shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained in the Letter of Credit or any modifications, amendments, or supplements
thereto. Borrower understands that the L/C Undertakings may require Issuing Lender to indemnify the Underlying Issuer for certain costs or liabilities arising out of claims by Borrower against such Underlying Issuer. Borrower hereby agrees to
indemnify, save, defend, and hold the Lender Group harmless with respect to any loss, cost, expense (including reasonable attorneys fees), or liability incurred by the Lender Group under any L/C Undertaking as a result of the Lender Group’s
indemnification of any Underlying Issuer; provided, however, that Borrower shall not be obligated hereunder to indemnify for any loss, cost, expense, or liability to the extent that it is caused by the gross negligence or willful
misconduct of the Issuing Lender or any other member of the Lender Group. Borrower hereby acknowledges and agrees that neither the Lender Group nor the Issuing Lender shall be responsible for delays, errors, or omissions resulting from the
malfunction of equipment in connection with any Letter of Credit. 
  

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 (d) Borrower hereby authorizes and directs any Underlying Issuer to deliver to the Issuing Lender all
instruments, documents, and other writings and property received by such Underlying Issuer pursuant to such Underlying Letter of Credit and to accept and rely upon the Issuing Lender’s instructions with respect to all matters arising in
connection with such Underlying Letter of Credit and the related application. 
 (e) Any and all issuance charges, commissions, fees, and
costs incurred by the Issuing Lender relating to Underlying Letters of Credit shall be Lender Group Expenses for purposes of this Agreement and shall be reimbursable immediately by Borrower to Agent for the account of the Issuing Lender; it being
acknowledged and agreed by Borrower that, as of the Closing Date, the issuance charge imposed by the prospective Underlying Issuer is .825% per annum times the undrawn amount of each Underlying Letter of Credit, that such issuance charge may be
changed from time to time, and that the Underlying Issuer also imposes a schedule of charges for amendments, extensions, drawings, and renewals. 
 (f) If by reason of (i) any change after the Closing Date in any applicable law, treaty, rule, or regulation or any change in the interpretation or application thereof by any Governmental Authority, or (ii) compliance by the
Underlying Issuer or the Lender Group with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Federal Reserve Board as from time
to time in effect (and any successor thereto): 
 (i) any reserve, deposit, or similar requirement is or shall be imposed or modified in
respect of any Letter of Credit issued hereunder, or 
 (ii) there shall be imposed on the Underlying Issuer or any member of the Lender
Group any other condition regarding any Underlying Letter of Credit or any Letter of Credit issued pursuant hereto, 
 and the result of the foregoing is to
increase, directly or indirectly, the cost to any member of the Lender Group of issuing, making, guaranteeing, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof by any member of the Lender Group, then, and in
any such case, Agent may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify Borrower, and Borrower shall pay within 30 days after demand therefor, such amounts as are necessary (as
determined by the applicable member of the Lender Group) to compensate the applicable member of the Lender Group for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full
thereof at the rate then applicable to Base Rate Loans hereunder; provided that Borrower shall not be required to compensate a member of the Lender Group pursuant to this Section for any such amounts incurred more than 120 days prior to the date
that such member of the Lender Group first demands payment from Borrower of such amounts; provided further that if an event or circumstance giving rise to such amounts is retroactive, then the 120-day period referred to above shall be
extended to include the period of retroactive effect thereof. The determination by Agent of any amount due pursuant to this Section, as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall constitute prima
facie evidence of the amount due. 
 (g) Borrower and the Lender Group acknowledge and agree that the letter of credit in the face amount of
AED 100,000, having an initial expiration date of August 31, 2009, issued by Underlying Issuer at the request of WFF for the account of Borrower and the benefit of Standard Chartered Bank Dubai shall, as of the Closing Date, be deemed an
Underlying Letter of Credit for purposes of this Agreement and WFF’s reimbursement obligations to the Underlying Issuer shall be deemed to be an L/C Undertaking hereunder, in each case, subject to all of the terms and conditions of this
Agreement (including with respect to any fees or charges payable with respect to Letters of Credit) as if first issued or entered into on the Closing Date. 
 2.12 LIBOR Option. 
  

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 (a) Interest and Interest Payment Dates. In lieu of having interest charged at the rate based upon
the Base Rate, Borrower shall have the option (the “LIBOR Option”) to have interest on all or a portion of the Advances be charged (whether at the time when made (unless otherwise provided herein), upon conversion from a Base Rate
Loan to a LIBOR Rate Loan, or upon continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR Rate. Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period
applicable thereto; (ii) the date on which all or any portion of the Obligations are accelerated pursuant to the terms hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms hereof. On the last day of each
applicable Interest Period, unless Borrower properly has exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans of
the same type hereunder. At any time that an Event of Default has occurred and is continuing, Borrower no longer shall have the option to request that Advances bear interest at a rate based upon the LIBOR Rate. 
 (b) LIBOR Election. 
 (i) Borrower
may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior to 11:00 a.m. (California time) at least 3 Business Days prior to the commencement of
the proposed Interest Period (the “LIBOR Deadline”). Notice of Borrower’s election of the LIBOR Option for a permitted portion of the Advances and an Interest Period pursuant to this Section shall be made by delivery to Agent
of a LIBOR Notice received by Agent before the LIBOR Deadline, or by telephonic notice received by Agent before the LIBOR Deadline (to be confirmed by delivery to Agent of a LIBOR Notice received by Agent prior to 5:00 p.m. (California time) on the
same day). Promptly upon its receipt of each such LIBOR Notice, Agent shall provide a copy thereof to each of the affected Lenders. 
 (ii)
Each LIBOR Notice shall be irrevocable and binding on Borrower. In connection with each LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against any loss, cost, or expense actually incurred by Agent or any
Lender as a result of (A) the payment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan
other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, or
expenses, “Funding Losses”). A certificate of Agent or a Lender delivered to Borrower setting forth in reasonable detail any amount or amounts that Agent or such Lender is entitled to receive pursuant to this
Section 2.12 shall be conclusive absent manifest error. Borrower shall pay such amount to Agent or the Lender, as applicable, within 30 days of the date of its receipt of such certificate. 
 (iii) Borrower shall have not more than 5 LIBOR Rate Loans in effect at any given time. Borrower only may exercise the LIBOR Option for LIBOR Rate Loans
of at least $1,000,000. 
 (c) Conversion. Borrower may convert LIBOR Rate Loans to Base Rate Loans at any time;
provided, however, that in the event that LIBOR Rate Loans are converted or prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any automatic prepayment through the required
application by Agent of proceeds of Borrower’s and its Subsidiaries’ Collections in accordance with Section 2.4(b) or for any other reason, including early termination of the term of this Agreement or acceleration of all or any
portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend, and hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in accordance with Section 2.12 (b)(ii) above.

 (d) Special Provisions Applicable to LIBOR Rate. 
 (i) The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis to take into account any additional or increased costs to such Lender of maintaining or 

  

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obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable law occurring subsequent to the commencement of the then
applicable Interest Period, including changes in tax laws (except changes of general applicability in corporate income tax laws (including increases in currently applicable corporate income tax rates)) and changes in the reserve requirements imposed
by the Board of Governors of the Federal Reserve System (or any successor), excluding the Reserve Percentage, which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at the LIBOR Rate. In any such
event, the affected Lender shall give Borrower and Agent written notice of such a determination and adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice from the affected Lender, Borrower
may, by notice to such affected Lender (y) require such Lender to furnish to Borrower a statement setting forth the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (z) repay the LIBOR
Rate Loans with respect to which such adjustment is made (without having to pay any amounts due under Section 2.12(b)(ii)). 
 (ii) In the event that any change in market conditions or any law, regulation, treaty, or directive, or any change therein or in the interpretation or application thereof, shall at any time after the date hereof, in the reasonable opinion
of any Lender, make it unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, such Lender shall give written notice of such
changed circumstances to Agent and Borrower and Agent promptly shall transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date specified in such Lender’s notice shall
be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrower shall not be
entitled to elect the LIBOR Option until such Lender determines in its Permitted Discretion that it would no longer be unlawful or impractical to do so. 
 (e) No Requirement of Matched Funding. Anything to the contrary contained herein notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually to acquire eurodollar
deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate. 
 2.13 Capital
Requirements.  
 (a) If, after the date hereof, any Lender determines that (i) the adoption of or change in any law, rule,
regulation or guideline regarding capital requirements for banks or bank holding companies, or any change in the interpretation or application thereof by any Governmental Authority charged with the administration thereof, or (ii) compliance by
such Lender or its parent bank holding company with any guideline, request or directive of any such entity regarding capital adequacy (whether or not having the force of law), has the effect of reducing the return on such Lender’s or such
holding company’s capital as a consequence of such Lender’s Commitments hereunder to a level below that which such Lender or such holding company could have achieved but for such adoption, change, or compliance (taking into consideration
such Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any amount deemed by such Lender to be material, then such Lender may
notify Borrower and Agent thereof. Following receipt of such notice, Borrower agrees to pay such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within 30 days after presentation
by such Lender of a statement in the amount and setting forth in reasonable detail such Lender’s calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest
error). In determining such amount, such Lender may use any reasonable averaging and attribution methods. Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s
right to demand such compensation; provided that Borrower shall not be required to compensate a Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that such Lender notifies Borrower of
such law, rule, regulation or guideline giving rise to such reductions and of such Lender’s intention to claim compensation therefor; provided further that if such claim arises by reason of the 

  

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adoption of or change in any law, rule, regulation or guideline that is retroactive, then the 180-day period referred to above shall be extended to include
the period of retroactive effect thereof. 
 (b) If any Lender requests additional or increased costs referred to in
Section 2.12(d)(i) or amounts under Section 2.13(a) (any such Lender, a “Affected Lender”), then such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices
or to assign its rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to
Section 2.12(d)(i) or Section 2.13(a), as applicable, and (ii) in the reasonable judgment of such Affected Lender, such designation or assignment would not subject it to any material unreimbursed cost or expense and
would not otherwise be materially disadvantageous to it. Borrower agrees to pay all reasonable out-of-pocket costs and expenses incurred by such Affected Lender in connection with any such designation or assignment. If, after such reasonable
efforts, such Affected Lender does not so designate a different one of its lending offices or assign its rights to another of its offices or branches so as to eliminate Borrower’s obligation to pay any future amounts to such Affected Lender
pursuant to Section 2.12(d)(i) or Section 2.13(a), as applicable, then Borrower (without prejudice to any amounts then due to such Affected Lender under Section 2.12(d)(i) or Section 2.13(a), as
applicable) may, unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such additional amounts under Section 2.12(d)(i) or Section 2.13(a), as applicable, designate another
Lender reasonably acceptable to Agent to purchase the Obligations owed to such Affected Lender and such Affected Lender’s Commitments hereunder (a “Replacement Lender”), such Affected Lender shall assign to the Replacement
Lender its Obligations and Commitments, pursuant to an Assignment and Acceptance Agreement, and upon such purchase by the Replacement Lender, such Replacement Lender shall be deemed to be a “Lender” for purposes of this Agreement and such
Affected Lender shall cease to be a “Lender” for purposes of this Agreement. 
 2.14 Increase in Commitments. 

 (a) At any time during the period from and after the Closing Date through the date that is 12 months after the Closing Date, at the option
of Borrower and with the consent of Agent, the Commitments and the Maximum Revolver Amount may be increased on one occasion by an amount not in excess of $20,000,000 (such increase that satisfies the terms and conditions herein, an “Approved
Increase”) if and only if (i) each of the conditions precedent set forth in Section 3.2 are satisfied as of the Increase Effective Date, (ii) Borrower has delivered to Agent updated pro forma Projections (after giving
effect to the proposed increase) for Borrower and its Subsidiaries evidencing compliance on a pro forma basis with Section 7(a) for the 12 calendar months (on a quarter-by-quarter basis) following the Increase Effective Date, in form and
consent reasonably acceptable to Agent, (iii) Borrower shall have paid to Agent all fees due and payable as of the Increase Effective Date pursuant to the Fee Letter, and (iv) Agent or Borrower have obtained the commitment of one or more
Lenders (or other prospective lenders) reasonably satisfactory to Agent and Borrower to provide the proposed increase. Unless waived by Agent, Borrower shall provide written notice of a proposed increase to Agent, which notice shall specify a date
not less than 20 days after the date of such notice on which the proposed increase is to be effective (the “Increase Effective Date”). The proposed increase shall be in an amount of at least $5,000,000 and integral multiples of
$1,000,000 in excess thereof. 
 (b) Agent shall invite each Lender to increase its Commitment (it being understood that no Lender shall be
obligated to increase its Commitment), or may invite any prospective lender who is reasonably satisfactory to Agent and Borrower to become a Lender in connection with an Approved Increase by executing a joinder agreement, in form and substance
reasonably satisfactory to Agent, to which such prospective lender, Borrower, and Agent are party (the “Increase Joinder”). So long as each of the requirements set forth in Section 2.14(a) and this
Section 2.14(b) are satisfied, the increased Commitments with respect to an Approved Increase shall become effective as of the Increase Effective Date. 
 (c) To the extent any Advances or Letters of Credit are outstanding on the Increase Effective Date, each of the Lenders having a Commitment prior to the Increase Effective Date (the “Pre- 

  

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Increase Revolver Lenders”) shall assign to any Lender which is acquiring a new or additional Commitment on the Increase Effective Date
(the “Post-Increase Revolver Lenders”), and such Post-Increase Revolver Lenders shall purchase from each Pre-Increase Revolver Lender, at the principal amount thereof, such interests in the Advances and participation interests in
Letters of Credit on such Increase Effective Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Advances and participation interests in Letters of Credit will be held by Pre-Increase Revolver
Lenders and Post-Increase Revolver Lenders ratably in accordance with their Pro Rata Share after giving effect to such increased Commitments. 
 (d) Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Advances shall be deemed, unless the context otherwise requires, to include Advances made pursuant to the increased
Commitments and Maximum Revolver Amount pursuant to this Section 2.14. The Advances, Commitments, and Maximum Revolver Amount established pursuant to this Section 2.14 shall constitute Advances, Commitments, and Maximum
Revolver Amount under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from any guarantees and the security interests created
by the Loan Documents. Borrower shall take any actions reasonably required by Agent to ensure and demonstrate that the Liens granted by the Loan Documents continue to be perfected under the Code or otherwise after giving effect to the establishment
of any such new Commitments and Maximum Revolver Amount. 
  

	3.	CONDITIONS; TERM OF AGREEMENT. 

 3.1
Conditions Precedent to the Initial Extension of Credit. The obligation of each Lender to make its initial extension of credit provided for hereunder, is subject to the fulfillment, to the satisfaction of Agent and each Lender of each
of the conditions precedent set forth on Schedule 3.1 (the making of such initial extension of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent ). 
 3.2 Conditions Precedent to all Extensions of Credit. The obligation of the Lender Group (or any member thereof) to make any Advances
hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions precedent: 
 (a) the
representations and warranties of Borrower or its Subsidiaries contained in this Agreement or in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and
warranties relate solely to an earlier date); and 
 (b) no Default or Event of Default shall have occurred and be continuing on the date of
such extension of credit, nor shall either result from the making thereof. 
 3.3 Term. This Agreement shall continue in full
force and effect for a term ending on the Maturity Date. The foregoing notwithstanding, the Lender Group, upon the election of the Required Lenders, shall have the right to terminate its obligations under this Agreement immediately and without
notice upon the occurrence and during the continuation of an Event of Default. 
 3.4 Effect of Termination. On the date of
termination of this Agreement, all Obligations (including contingent reimbursement obligations of Borrower with respect to outstanding Letters of Credit and including all Bank Product Obligations) immediately shall become due and payable without
notice or demand (including the requirement that Borrower provide (a) Letter of Credit Collateralization, and (b) Bank Product Collateralization). No termination of this Agreement, however, shall relieve or discharge Borrower or its
Subsidiaries of their duties, Obligations, or covenants hereunder or under any other Loan Document and the Agent’s Liens in the Collateral shall remain in effect until all Obligations have been paid in full and the Lender 

  

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Group’s obligations to provide additional credit hereunder have been terminated. When this Agreement has been terminated and all of the Obligations have
been paid in full and the Lender Group’s obligations to provide additional credit under the Loan Documents have been terminated irrevocably, Agent will, at Borrower’s sole expense, execute and deliver any termination statements, lien
releases, mortgage releases, re-assignments of trademarks, discharges of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, the
Agent’s Liens and all notices of security interests and liens previously filed by Agent with respect to the Obligations. 
 3.5
Early Termination by Borrower. Borrower has the option, at any time upon 10 Business Days prior written notice to Agent, to terminate this Agreement and terminate the Commitments hereunder by paying to Agent the Obligations (including
(a) providing Letter of Credit Collateralization with respect to the then existing Letter of Credit Usage, and (b) providing Bank Product Collateralization with respect to the then existing Bank Products), in full. 
 3.6 Conditions Subsequent. The obligation of the Lender Group (or any member thereof) to continue to make Advances (or otherwise extend
credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the following conditions subsequent: 
 (a) On
or before the date that is 7 Business Days after the Closing Date, Agent shall have received the Account Charge Agreement, and the same shall be in form and substance reasonably satisfactory to Agent and in full force and effect. 
 (b) On or before the date that is 90 days after the Closing Date, Agent shall have received evidence satisfactory to it that Borrower has (i) closed
bank account numbers 029658300888 and 029658300030 at Deutsche Bank AG, London branch, and (ii) taken reasonable steps to ensure that all of Borrower’s and its Subsidiaries’ Account Debtors who are making payments to such bank
accounts forward payment of the amounts owed by them directly to one of Borrower’s bank accounts in the United States at a Controlled Account Bank over which Agent has a first priority perfected Lien. 
 (c) Unless Agent otherwise agrees, on or before the date that is 180 days after the Closing Date, Agent shall have received evidence satisfactory to it
that (i) Borrower has closed bank account numbers 5553-8234371 and 5554-8263064 at SEB in Sweden, and (ii) all of Borrower’s and its Subsidiaries’ Account Debtors who are making payments to such bank accounts are forwarding
payment of the amounts owed by them directly to one of Borrower’s bank accounts in the United States at a Controlled Account Bank over which Agent has a first priority perfected Lien. 
 (d) On or before the date that is 30 days after the Closing Date, Borrower shall have used commercially reasonable efforts to deliver to Agent a
Collateral Access Agreement, in form and substance reasonably satisfactory to Agent, with respect to the warehouse located at 2760 E. El Presido, Carson, California. 
 Borrower acknowledges and agrees that its failure to perform or cause to be performed such conditions subsequent by the applicable deadline shall constitute an immediate Event of Default. 
  

	4.	REPRESENTATIONS AND WARRANTIES. 

 In order to induce
the Lender Group to enter into this Agreement, Borrower makes the following representations and warranties to the Lender Group which shall be true, correct, and complete, in all material respects, as of the date hereof, and shall be true, correct,
and complete, in all material respects, as of the Closing Date and at and as of the date of the making of each Advance (or other extension of credit) made thereafter, as though made on and as of the date of such Advance (or other extension of
credit) (except to the extent that such representations and warranties relate solely to an earlier date) and such representations and warranties shall survive the execution and delivery of this Agreement: 
  

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 4.1 Due Organization and Qualification; Subsidiaries. 
 (a) Borrower (i) is duly organized and existing and in good standing under the laws of the jurisdiction of its organization, (ii) qualified to
do business in any state where the failure to be so qualified reasonably could be expected to result in a Material Adverse Change, and (iii) has all requisite power and authority to own and operate its properties, to carry on its business as
now conducted and as proposed to be conducted, to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby. 
 (b) Set forth on Schedule 4.1(b) is a complete and accurate description of the authorized capital Stock of Borrower, by class, and, as of the Closing Date, a description of the number of shares of each such
class that are issued and outstanding. Other than as described on Schedule 4.1(b), there are no subscriptions, options, warrants, or calls relating to any shares of Borrower’s capital Stock, including any right of conversion or exchange
under any outstanding security or other instrument. Borrower is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital Stock or any security convertible into or exchangeable for
any of its capital Stock. 
 (c) Set forth on Schedule 4.1(c) (as such Schedule may be updated from time to time to reflect changes
permitted to be made under Section 5.11), is a complete and accurate list of the Borrower’s direct and indirect Subsidiaries, showing the percentage of the outstanding shares of each class of Stock of each such Subsidiary owned
directly or indirectly by Borrower. All of the outstanding capital Stock of each such Subsidiary has been validly issued and is fully paid and non-assessable. 
 (d) Except as set forth on Schedule 4.1(c), there are no subscriptions, options, warrants, or calls relating to any shares of Borrower’s Subsidiaries’ capital Stock, including any right of conversion
or exchange under any outstanding security or other instrument. Neither Borrower nor any of its Subsidiaries is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of Borrower’s
Subsidiaries’ capital Stock or any security convertible into or exchangeable for any such capital Stock. 
 4.2 Due Authorization;
No Conflict. 
 (a) The execution, delivery, and performance by Borrower of the Loan Documents to which it is a party have been duly
authorized by all necessary action on the part of Borrower. 
 (b) The execution, delivery, and performance by Borrower of the Loan Documents
to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to Borrower or its Subsidiaries, the Governing Documents of Borrower or its Subsidiaries, or any order,
judgment, or decree of any court or other Governmental Authority binding on Borrower or its Subsidiaries, (ii) 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 Borrower 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,
(iii) 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, (iv) result in or require the creation or imposition of any Lien of any nature whatsoever
upon any assets of Borrower, other than Permitted Liens, (v) require any approval of Borrower’s interestholders or any approval or consent of any Person under any Material Contract (other than the Convertible Notes Documents) of Borrower,
other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of such 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, and (vi) 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.

  

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 4.3 Governmental Consents. The execution, delivery, and performance by Borrower of the Loan
Documents to which Borrower is a party and the consummation of the transactions contemplated by the Loan Documents 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 consents or approvals that have been obtained and that are still in force and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to the Agent for filing or
recordation, as of the Closing Date. 
 4.4 Binding Obligations; Perfected Liens.  
 (a) Each Loan Document to which Borrower is a party has been duly executed and delivered by Borrower and is 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. 
 (b) The Agent’s Liens are validly created, perfected (other than (i) in respect of motor
vehicles and (ii) any Deposit Accounts and Securities Accounts not subject to a Control Agreement as permitted by Section 6.11, and subject only to the filing of financing statements and the recordation of the Mortgages), and first
priority Liens, subject only to Permitted Liens. 
 4.5 Title to Assets; No Encumbrances. Borrower and its Subsidiaries have
(i) good, sufficient and legal title to (in the case of fee interests in Real Property), (ii) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (iii) good and marketable title to (in
the case of all other personal property), all of their respective assets reflected in their most recent financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of since the date of such financial
statements to the extent permitted hereby. All of such assets are free and clear of Liens except for Permitted Liens. 
 4.6
Jurisdiction of Organization; Location of Chief Executive Office; Organizational Identification Number; Commercial Tort Claims. 
 (a) The name of (within the meaning of Section 9-503 of the Code) and jurisdiction of organization of Borrower and each of its Subsidiaries is set forth on Schedule 4.6(a) (as such Schedule may be updated from time to time to
reflect changes permitted to be made under Section 6.5). 
 (b) The chief executive office of Borrower and each of its
Subsidiaries is located at the address indicated on Schedule 4.6(b) (as such Schedule may be updated from time to time to reflect changes permitted to be made under Section 5.15). 
 (c) Borrower’s tax identification number and organizational identification number, if any, are identified on Schedule 4.6(c) (as such
Schedule may be updated from time to time to reflect changes permitted to be made under Section 6.5). 
 (d) As of the Closing
Date, neither Borrower nor any of its Subsidiaries holds any commercial tort claims that exceed $100,000 in amount, except as set forth on Schedule 4.6(d). 
 4.7 Litigation.  
 (a) There are no actions, suits, or proceedings pending or, to the best
knowledge of Borrower, threatened against Borrower or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in a Material Adverse Change. 
 (b) Schedule 4.7(b) sets forth a complete and accurate description, with respect to each of the actions, suits, or proceedings with asserted
liabilities in excess of, or that could reasonably be expected to result in liabilities in excess of, $500,000 that, as of the Closing Date, is pending or, to the best knowledge 

  

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of Borrower, threatened against Borrower or any of its Subsidiaries, of (i) the parties to such actions, suits, or proceedings, (ii) the nature of
the dispute that is the subject of such actions, suits, or proceedings, (iii) the status, as of the Closing Date, with respect to such actions, suits, or proceedings, and (v) whether any liability of Borrower and its Subsidiaries in
connection with such actions, suits, or proceedings is covered by insurance. 
 4.8 Compliance with Laws. Neither Borrower nor
any of its Subsidiaries (a) is in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws) that, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Change, or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency
or instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Change. 
 4.9 No Material Adverse Change. All financial statements relating to Borrower and its Subsidiaries that have been delivered by Borrower to Agent have been prepared in accordance with GAAP (except, in the case of unaudited
financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, Borrower’s and its Subsidiaries’ consolidated financial condition as of the date thereof and
results of operations for the period then ended. Since December 28, 2008, no event, circumstance, or change has occurred that has or could reasonably be expected to result in a Material Adverse Change with respect to Borrower and its
Subsidiaries. 
 4.10 Fraudulent Transfer. 
 (a) Borrower is Solvent. 
 (b) No transfer of property is being made by Borrower and no obligation is being
incurred by Borrower in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of Borrower. 
 4.11 Employee Benefits. Borrower, none of its Subsidiaries, nor any of their ERISA Affiliates maintains or contributes to any Benefit Plan.

 4.12 Environmental Condition. Except as set forth on Schedule 4.12, (a) to Borrower’s knowledge, neither
Borrower’s nor its Subsidiaries’ properties or assets has ever been used by Borrower, its Subsidiaries, or by previous owners or operators in the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous
Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, in any material respect, of any applicable Environmental Law, (b) to Borrower’s knowledge, neither Borrower’s nor its
Subsidiaries’ properties or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a Hazardous Materials disposal site, (c) neither Borrower nor any of its Subsidiaries has received
notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned or operated by Borrower or its Subsidiaries, and (d) neither Borrower nor any of its Subsidiaries nor, to Borrower’s
knowledge, any of their respective facilities or operations is subject to any outstanding written order, consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability that, individually or in
the aggregate, could reasonably be expected to result in a Material Adverse Change. 
 4.13 Intellectual Property. Borrower and
its Subsidiaries own, or hold licenses in, all trademarks, trade names, copyrights, patents, and licenses that are necessary to the conduct of its business as currently conducted, and attached hereto as Schedule 4.13 (as updated from time to
time) is a true, correct, and complete listing of all (a) material trademarks, trade names, copyrights, patents, and licenses as to which Borrower or one of its Subsidiaries is the owner, and (b) all material licenses of intellectual
property of any third party (including any affiliate) to which Borrower or one of its Subsidiaries is a party; provided, however, that Borrower may amend Schedule 4.13 to add additional intellectual property so long as such
amendment 

  

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occurs by written notice to Agent not less than 30 days after the date on which Borrower or its Subsidiary acquires any such property after the Closing Date.

 4.14 Leases. Borrower and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their
business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no material default by the Borrower or its Subsidiaries exists under any of them.

 4.15 Deposit Accounts and Securities Accounts. Set forth on Schedule 4.15 (as updated pursuant to the provisions of
the Security Agreement from time to time) is a listing of all of Borrower’s and its Subsidiaries’ Deposit Accounts and Securities Accounts, including, with respect to each bank or securities intermediary (a) the name and address of
such Person, and (b) the account numbers of the Deposit Accounts or Securities Accounts maintained with such Person. 
 4.16
Complete Disclosure. All factual information (taken as a whole) furnished by or on behalf of Borrower or its Subsidiaries in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the other
Loan Documents) for purposes of or in connection with this Agreement, the other Loan Documents, or any transaction contemplated herein or therein is, and all other such factual information (taken as a whole) hereafter furnished by or on behalf of
Borrower or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make
such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided. On the Closing Date, the Closing Date Projections represent, and as of the date on which
any other Projections are delivered to Agent, such additional Projections represent Borrower’s good faith estimate of the Borrower’s and its Subsidiaries’ future performance for the periods covered thereby based upon assumptions
believed by Borrower to be reasonable at the time of the delivery thereof to Agent (it being understood that such projections and forecasts are subject to uncertainties and contingencies, many of which are beyond the control of Borrower and its
Subsidiaries and no assurances can be given that such projections or forecasts will be realized). 
 4.17 Material Contracts.
Set forth on Schedule 4.17 (as updated from time to time) is a list of the Material Contracts of Borrower and its Subsidiaries; provided, however, that Borrower may amend Schedule 4.17 to add additional Material Contracts
so long as such amendment occurs by written notice to Agent at the time that Borrower provides its quarterly financial statements pursuant to Section 5.1. Except for matters which, either individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Change, each Material Contract (other than those that have expired at the end of their normal terms) (a) is in full force and effect and is binding upon and enforceable against Borrower or
its Subsidiary and, to the best of Borrower’s knowledge, each other Person that is a party thereto in accordance with its terms, (b) has not been otherwise amended or modified (other than amendments or modifications permitted by
Section 6.7(d)), and (c) is not in default due to the action or inaction of Borrower or its Subsidiary. 
 4.18
Patriot Act. To the extent applicable, Borrower is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the Untied States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism
(USA Patriot Act of 2001) (the “Patriot Act”). No part of the proceeds of the loans made hereunder will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a
political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977,
as amended. 
 4.19 Indebtedness. Set forth on Schedule 4.19 is a true and complete list of all Indebtedness of Borrower
and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain 

  

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outstanding after the Closing Date and such Schedule accurately sets forth the aggregate principal amount of such Indebtedness as of the Closing Date.

 4.20 Payment of Taxes. Except as set forth on Schedule 4.20 or as otherwise permitted under Section 5.5,
all tax returns and reports of Borrower and its Subsidiaries required to be filed by any of them have been timely filed, and all taxes shown on such tax returns to be due and payable and all assessments, fees and other governmental charges upon
Borrower and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable. Borrower and each of its Subsidiaries have made adequate provision in accordance with
GAAP for all taxes not yet due and payable. Borrower knows of no proposed tax assessment against Borrower or any of its Subsidiaries that is not being actively contested by Borrower or such Subsidiary diligently, in good faith, and by appropriate
proceedings; provided such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor. Neither Borrower nor any of its Subsidiaries has ever been a party to any
understanding or arrangement constituting a “tax shelter” within the meaning of Section 6662(d)(2)(C)(iii) of the IRC or within the meaning of Section 6111(c) or Section 6111(d) of the IRC as in effect immediately prior to
the enactment of the American Jobs Creation Act of 2004, or has ever “participated” in a “reportable transaction” within the meaning of Treasury Regulation Section 1.6011-4, except as would not be reasonably expected to,
individually or in the aggregate, result in a Material Adverse Change. 
 4.21 Margin Stock. Neither Borrower nor any of its
Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the loans made to Borrower will be used to
purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such margin stock or for any purpose that violates, or is inconsistent with, the provisions of Regulation T, U or X of said Board of
Governors. 
 4.22 Governmental Regulation. Neither Borrower nor any of its Subsidiaries is subject to regulation under the
Federal Power Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable.
Neither Borrower nor any of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered investment company” or a “principal underwriter” of a “registered investment
company” as such terms are defined in the Investment Company Act of 1940. 
 4.23 OFAC. Neither Borrower nor any of its
Subsidiaries is in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC. Neither Borrower nor any of its Subsidiaries (a) is a Sanctioned Person or a Sanctioned Entity, (b) has a more
than 10% of its assets located in Sanctioned Entities, or (c) derives more than 10% of its revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities. The proceeds of any Advance will not be used to fund any
operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity. 
 4.24
Eligible Accounts and Eligible Foreign Accounts.  
 (a) As to each Account that is identified by Borrower as an Eligible
Account or an Eligible Foreign Account in a Borrowing Base Certificate submitted to Agent, such Account is (i) a bona fide existing payment obligation of the applicable Account Debtor created by the sale and delivery of Inventory or the
rendition of services to such Account Debtor in the ordinary course of Borrower’s business, (ii) owed to Borrower without any known defenses, disputes, offsets, counterclaims, or rights of return or cancellation, and (iii) not
excluded as ineligible by virtue of one or more of the excluding criteria set forth in the definition of Eligible Accounts or Eligible Foreign Accounts (as applicable). 
  

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 (b) As to Accounts that are identified by Borrower as Eligible Foreign Accounts, such Accounts are
lawfully owned by Borrower, and, without limiting the generality of the foregoing: (i) such Accounts are owed to Borrower in connection with purchase orders or contracts issued by the applicable Account Debtors to Borrower for the sale of
Inventory of Borrower or the rendition of services by Borrower to such Account Debtors, (ii) to the extent that a Subsidiary of Borrower receives a purchase order or contract for such sale of Inventory or rendition of services, it receipt of
such purchase order or contract is solely in its capacity as a service provider (a “Subsidiary Service Provider”) to Borrower pursuant to one of the Sales Support Services Agreements, and (iii) any invoice sent to the
applicable Account Debtors in connection with such sale of Inventory or rendition of services has been sent directly by Borrower to such Account Debtors. No Subsidiary Service Provider has any authority to sign or accept purchase orders or contracts
on behalf of Borrower or to sign or issue invoices on behalf of Borrower. Each Sales Support Services Agreements (A) is in full force and effect and is binding upon and enforceable against each Person that is a party thereto in accordance with
its terms, and (B) has not been amended or modified since the Closing Date. 
 (c) No Subsidiary of Borrower has any interest in any
Eligible Account or Eligible Foreign Account. 
 4.25 Location of Inventory and Equipment. Except as set forth on Schedule
4.25, the Inventory and Equipment (other than (a) vehicles or Equipment out for repair, and (b) test Equipment delivered to Borrower’s contract manufacturers in the ordinary course of business for use in the manufacture and repair
of Borrower’s products) of Borrower and its Subsidiaries are not stored with a bailee, warehouseman, or similar party and are located only at, or in-transit between, the locations identified on Schedule 4.25 (as such Schedule may be
updated pursuant to Section 5.15). 
 4.26 Inventory Records. Borrower keeps correct and accurate records itemizing
and describing the type, quality, and quantity of its and its Subsidiaries’ Inventory and the book value thereof. 
 4.27
Convertible Notes Documents.  
 (a) Borrower has delivered to Agent a complete and correct copy of the Convertible Notes
Documents, including all schedules and exhibits thereto. Each Convertible Notes Document is the legal, valid and binding obligation of Borrower, enforceable against Borrower in accordance with its terms, in each case, except (i) as may be
limited by equitable principles or applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting generally the enforcement of creditors’ rights and (ii) the availability of the remedy of
specific performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefor may be brought. Borrower is not in default in any material respect in the performance or compliance with any
provisions thereof. 
 (b) The Indebtedness evidenced by this Agreement and the other Loan Documents constitutes Designated Senior
Indebtedness under each of the 1.875% Convertible Notes Indenture and the 3.875% Convertible Notes Indenture. No Designated Senior Indebtedness exists other than the Indebtedness evidenced by this Agreement and the other Loan Documents. 

4.28 Inactive Subsidiaries. The Inactive Subsidiaries do not (a) own any assets (other than any assets of a de minimis nature),
(b) have any liabilities (other than any liabilities of a de minimis nature), or (c) engage in any business activity. 
  

	5.	AFFIRMATIVE COVENANTS. 

 Borrower covenants and
agrees that, until termination of all of the Commitments and payment in full of the Obligations, Borrower shall and shall cause each of its Subsidiaries to comply with each of the following: 
  

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 5.1 Financial Statements, Reports, Certificates. Deliver to Agent, with copies to each
Lender, each of the financial statements, reports, and other items set forth on Schedule 5.1 at the times specified therein. In addition, Borrower agrees that, except as set forth on Schedule 5.1, none of its Subsidiaries will have a
fiscal year different from that of Borrower. In addition, Borrower agrees to maintain a system of accounting that enables Borrower to produce financial statements in accordance with GAAP. Borrower shall also keep a reporting system that shows all
additions, sales, claims, returns, and allowances with respect to its and its Subsidiaries’ sales. 
 5.2 Collateral
Reporting. Provide Agent (and if so requested by Agent, with copies for each Lender) with each of the reports set forth on Schedule 5.2 at the times specified therein. In addition, Borrower agrees to use commercially reasonable
efforts in cooperation with Agent to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth above. 
 5.3 Existence. Except as otherwise permitted under Section 6.3, Borrower to, and cause each of its Subsidiaries to, at all
times preserve and keep in full force and effect its existence (including being in good standing in its jurisdiction of organization) and all rights and franchises, licenses and permits material to its business; provided, however, that
neither Borrower nor any of its Subsidiaries shall be required to preserve any such right or franchise, licenses or permits if such Person’s board of directors (or similar governing body) shall determine that the preservation thereof is no
longer desirable in the conduct of the business of such Person, and that the loss thereof is not disadvantageous in any material respect to such Person or to the Lenders. 
 5.4 Maintenance of Properties. Maintain and preserve all of its assets that are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear, tear, and
casualty excepted and Permitted Dispositions excepted, and comply with the material provisions of all material leases to which it is a party as lessee, so as to prevent the loss or forfeiture thereof, unless such provisions are the subject of a
Permitted Protest. 
 5.5 Taxes. Cause all assessments and taxes imposed, levied, or assessed against Borrower or its
Subsidiaries, or any of their respective assets or in respect of any of its income, businesses, or franchises to be paid in full, before delinquency or before the expiration of any extension period, except to the extent that the validity of such
assessment or tax shall be the subject of a Permitted Protest. Borrower will and will cause each of its Subsidiaries to make timely payment or deposit of all tax payments and withholding taxes required of it and them by applicable laws, including
those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Agent with proof reasonably satisfactory to Agent indicating that Borrower and its Subsidiaries have made such
payments or deposits. 
 5.6 Insurance. At Borrower’s expense, maintain insurance respecting Borrower’s and its
Subsidiaries’ assets wherever located, covering loss or damage by fire, theft, explosion, and all other hazards and risks as ordinarily are insured against by other Persons engaged in the same or similar businesses. Borrower also shall maintain
(with respect to itself and its Subsidiaries) business interruption, public liability, and product liability insurance, as well as insurance against larceny, embezzlement, and criminal misappropriation. All such policies of insurance shall be with
responsible and reputable insurance companies and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and in any event in amount, adequacy and scope
reasonably satisfactory to Agent. All property insurance policies covering the Collateral are to be made payable to Agent for the benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard loss payable
endorsement with a standard non contributory “lender” or “secured party” clause and are to contain such other provisions as Agent may reasonably require to fully protect the Lenders’ interest in the Collateral and to any
payments to be made under such policies. All certificates of insurance are to be delivered to Agent, with the loss payable and additional insured endorsement in favor of Agent and shall provide for not less than 30 days (10 days in the case of
non-payment) prior written notice to Agent of the exercise of any right of cancellation. If Borrower fails to maintain such insurance, Agent may arrange for such insurance, but at Borrower’s expense and without any responsibility on
Agent’s part for obtaining the insurance, the solvency of 

  

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the insurance companies, the adequacy of the coverage, or the collection of claims, and will endeavor to give prompt notice to Borrower if it has done so.
Borrower shall give Agent prompt notice of any loss exceeding $250,000 covered by its casualty or business interruption insurance. Upon the occurrence and during the continuance of an Event of Default, (i) Agent shall have the sole right to
file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may
be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies, and (ii) any monies received as payment for any loss under any insurance policy shall first be applied to the payment in full of
the Obligations, with any remaining monies remitted to Borrower for application to the costs of repair, replacement or restoration of the property that is the subject of the loss. 
 5.7 Inspection. Permit Agent and each of its duly authorized representatives or agents to visit any of its properties and inspect any of
its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees at such reasonable times and intervals as
Agent may designate and, so long as no Default or Event of Default exists, with reasonable prior notice to Borrower. 
 5.8 Compliance
with Laws. Comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Change. 
 5.9 Environmental. 
 (a) Keep any property either owned or operated by Borrower or its Subsidiaries free of any Environmental Liens or post bonds or other financial assurances
sufficient to satisfy the obligations or liability evidenced by such Environmental Liens, 
 (b) comply, in all material respects, with
Environmental Laws and provide to Agent documentation of such compliance which Agent reasonably requests, 
 (c) promptly notify Agent of any
release of a Hazardous Material in any reportable quantity from or onto property owned or operated by Borrower or its Subsidiaries and take any Remedial Actions required to abate said release or otherwise to come into compliance with applicable
Environmental Law, and 
 (d) promptly, but in any event within 5 Business Days of its receipt thereof, provide Agent with written notice of
any of the following: (i) notice that an Environmental Lien has been filed against any of the real or personal property of Borrower or its Subsidiaries, (ii) commencement of any Environmental Action or notice that an Environmental Action
will be filed against Borrower or its Subsidiaries, and (iii) notice of a violation, citation, or other administrative order which could reasonably be expected to result in a Material Adverse Change. 
 5.10 Disclosure Updates. Promptly and in no event later than 10 Business Days after obtaining knowledge thereof, notify Agent if any
written information, exhibit, or report furnished to the Lender Group contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any material fact necessary to make the statements contained therein not
misleading in light of the circumstances in which made. The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement of a material fact or
omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto. 
 5.11 Formation of Subsidiaries. At the time that Borrower forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, Borrower shall (a) within 10

  

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Business Days of such formation or acquisition (i) cause any such new Subsidiary to provide to Agent a general continuing guaranty in form and substance
reasonably satisfactory to it and a joinder to the Security Agreement, together with such other security documents (including mortgages with respect to any Real Property owned in fee of such new Subsidiary with a fair market value of at least
$1,000,000), as well as appropriate financing statements (and with respect to all property subject to a mortgage, fixture filings), all in form and substance reasonably satisfactory to Agent (including being sufficient to grant Agent a first
priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), and (ii) provide, and cause any such new Subsidiary to provide, an intercompany subordination agreement (or a joinder thereto, as
applicable), in form and substance reasonably satisfactory to Agent; provided that the general continuing guaranty, the Security Agreement, and such other security documents shall not be required to be provided to Agent with respect to any
Subsidiary of Borrower that is a CFC if providing such documents would result in adverse tax consequences or the costs to Borrower of providing such general continuing guaranty, executing any security documents or perfecting the security interests
created thereby are unreasonably excessive (as determined by Agent in consultation with Borrower) in relation to the benefits of Agent and the Lenders of the security or guarantee afforded thereby, (b) within 10 Business Days of such formation
or acquisition (or such later date as permitted by Agent in its sole discretion) provide to Agent a pledge agreement and appropriate certificates and powers or financing statements, hypothecating all of the direct or beneficial ownership interest in
such new Subsidiary reasonably satisfactory to Agent; provided that only 65% of the total outstanding voting Stock of any first tier Subsidiary of Borrower that is a CFC and none of the total outstanding voting Stock of any other Subsidiary
of such CFC shall be required to be pledged if hypothecating a greater amount would result in adverse tax consequences or the costs to Borrower of providing such pledge or perfecting the security interests created thereby are unreasonably excessive
(as determined by Agent in consultation with the Borrower) in relation to the benefits of Agent and the Lenders of the security or guarantee afforded thereby (which pledge, if reasonably requested by Agent, shall be governed by the laws of the
jurisdiction of such Subsidiary), and (c) within 10 Business Days of such formation or acquisition (or such later date as permitted by Agent in its sole discretion) provide to Agent all other documentation, including one or more opinions of
counsel reasonably satisfactory to Agent, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance or other documentation with respect to
all Real Property owned in fee and subject to a mortgage). Any document, agreement, or instrument executed or issued pursuant to this Section 5.11 shall be a Loan Document. 
 5.12 Further Assurances. At any time upon the reasonable request of Agent, execute or deliver to Agent any and all financing statements,
fixture filings, security agreements, pledges, assignments, endorsements of certificates of title, mortgages, deeds of trust, opinions of counsel, and all other documents (collectively, the “Additional Documents”) that Agent may
reasonably request in form and substance reasonably satisfactory to Agent, to create, perfect, and continue perfected or to better perfect the Agent’s Liens in all of the assets of Borrower and its Subsidiaries (whether now owned or hereafter
arising or acquired, tangible or intangible, real or personal), to create and perfect Liens in favor of Agent in any Real Property acquired by Borrower or its Subsidiaries after the Closing Date with a fair market value in excess of $1,000,000, and
in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents); provided that the foregoing shall not apply to (a) any Inactive Subsidiary, (b) Powerwave Cognition, or (c) any
Subsidiary of Borrower that is a CFC if providing such documents would result in adverse tax consequences or the costs to Borrower of providing such documents are unreasonably excessive (as determined by Agent in consultation with Borrower) in
relating to the benefits of Agent and the Lenders of the benefits afforded thereby. To the maximum extent permitted by applicable law, Borrower authorizes Agent to execute any such Additional Documents in Borrower’s or its Subsidiary’s
name, as applicable, and authorizes Agent to file such executed Additional Documents in any appropriate filing office. Agent shall endeavor to give notice to Borrower if it executes or files any such Additional Documents. In furtherance and not in
limitation of the foregoing, Borrower shall take such actions as Agent may reasonably request from time to time to ensure that the Obligations are secured by substantially all of the assets of Borrower and its Subsidiaries (other than the Inactive
Subsidiaries or Powerwave Cognition and subject to limitations contained in the Loan Documents with respect to CFCs) and all of the outstanding Stock of Borrower’s Subsidiaries 

  

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(other than the Inactive Subsidiaries or Powerwave Cognition and subject to limitations contained in the Loan Documents with respect to CFCs). 
 5.13 Lender Meetings. Within 90 days after the close of each fiscal year of Borrower, at the request of Agent or of the Required Lenders
and upon reasonable prior notice, hold a meeting (at a mutually agreeable location and time or, at the option of Agent, by conference call) with all Lenders who choose to attend such meeting at which meeting shall be reviewed the financial results
of the previous fiscal year and the financial condition of Borrower and its Subsidiaries and the projections presented for the current fiscal year of Borrower. 
 5.14 Material Contracts. Contemporaneously with the delivery of each Compliance Certificate pursuant hereto, provide Agent with copies of (a) each Material Contract entered into since the delivery
of the previous Compliance Certificate, and (b) each material amendment or modification of any Material Contract entered into since the delivery of the previous Compliance Certificate; provided that if any such Material Contract or
material amendment or modification of a Material Contract is an exhibit to a report filed by Borrower with the SEC, then Borrower may satisfy the foregoing by providing notice of the filing of such report to Agent within 1 Business Day of the date
of such filing, which notice shall describe the report and the Material Contract or material amendment or modification of a Material Contract that is attached as an exhibit. 
 5.15 Location of Inventory and Equipment. Keep Borrower’s and its Subsidiaries’ Inventory and Equipment (other than
(a) vehicles or Equipment out for repair, and (b) test Equipment delivered to Borrower’s contract manufacturers in the ordinary course of business for use in the manufacture and repair of Borrower’s products) only at the
locations identified on Schedule 4.25 and their chief executive offices only at the locations identified on Schedule 4.6(b); provided, however, that Borrower may amend Schedule 4.25 or Schedule 4.6(b)
so long as such amendment occurs by written notice to Agent not less than 10 days prior to the date on which such Inventory or Equipment is moved to such new location or such chief executive office is relocated and so long as such new location is
within the continental United States, and so long as, at the time of such written notification, Borrower provides Agent a Collateral Access Agreement with respect thereto. If Borrower enters into a sale leaseback transaction as permitted hereunder
with respect to its location at 1801 East St. Andrew Place, Santa Ana, CA 92705, then Borrower shall deliver to Agent a Collateral Access Agreement, in form and substance reasonably satisfactory to Agent, within 30 days of the date of consummation
of such sale leaseback transaction. 
 5.16 Anti-Assignment Provisions; Purchase Orders. Use commercially reasonable efforts to
ensure that its customer contracts entered into after the Closing Date and any purchase orders issued after the Closing Date for its products or services do not prohibit the assignment thereof (and all rights of Borrower or such Subsidiary, as
applicable, thereunder) to Borrower’s or such Subsidiary’s lenders or an agent for any lenders (and any transferees of such lenders or such agent, as applicable). Use reasonable best efforts to ensure that any purchase orders issued after
the Closing Date for Borrower’s products or services are issued to, and in the name of, Borrower. 
  

	6.	NEGATIVE COVENANTS. 

 Borrower covenants and agrees
that, until termination of all of the Commitments and payment in full of the Obligations, Borrower will not and will not permit any of its Subsidiaries to do any of the following: 
 6.1 Indebtedness.  
 (a) Create,
incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness. 
  

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 (b) Create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or
indirectly, liable with respect to any Designated Senior Indebtedness, except for the Indebtedness evidenced by this Agreement and the other Loan Documents. 
 It is understood and agreed that, except as set forth in Section 6.7(a)(ii), nothing herein is intended to prohibit Borrower or its Subsidiaries from making regularly scheduled and mandatory payments of Permitted Indebtedness.

 6.2 Liens. Create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its
assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens. 
 6.3
Restrictions on Fundamental Changes. 
 (a) Enter into any merger, consolidation, reorganization, or recapitalization, or
reclassify its Stock, except for (i) any merger between Borrower and Subsidiaries of Borrower so long as Borrower is the surviving entity of such merger and so long as Agent’s rights in any Collateral, including the existence, perfection
and priority of any Lien thereon, are not adversely affected by such merger, and (ii) any merger between Subsidiaries of Borrower so long as Agent’s Lien, if any, on the Stock of any such Subsidiaries is not adversely affected by such
merger; 
 (b) Liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the liquidation or
dissolution of non-operating Subsidiaries of Borrower with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of Subsidiaries of Borrower (other than any such Subsidiary the Stock of which (or any portion thereof) is
subject to a Lien in favor of Agent) so long as all of the assets of such liquidating or dissolving Subsidiary are transferred to its parent and so long as Agent’s rights in any Collateral, including the existence, perfection and priority of
any Lien thereon, are not adversely affected thereby; or 
 (c) Suspend or go out of a substantial portion of its or their business, except
as permitted pursuant to clauses (a) and (b) above or in connection with the transactions permitted pursuant to Section 6.4. 
 6.4 Disposal of Assets. Other than Permitted Dispositions, Permitted Investments, or transactions expressly permitted by Sections 6.3 and 6.11, convey, sell, lease, license, assign, transfer, or otherwise dispose
of (or enter into an agreement to convey, sell, lease, license, assign, transfer, or otherwise dispose of) any of Borrower’s or its Subsidiaries assets. 
 6.5 Change Name. Change Borrower’s or any of its Subsidiaries’ name, organizational identification number, state of organization or organizational identity; provided, however,
that Borrower or any of its Subsidiaries may change their names upon at least 10 days prior written notice to Agent of such change. 
 6.6
Nature of Business. Make any change in the nature of its or their business as described in Schedule 6.6 or acquire any properties or assets that are not reasonably related to the conduct of such business activities;
provided that Borrower and its Subsidiaries may engage in any business that is reasonably related or ancillary to its or their business. 
 6.7 Prepayments and Amendments.  
 (a) Except in connection with Refinancing Indebtedness or a Permitted Convertible
Notes Refinancing permitted by Section 6.1, 
  

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 (i) optionally prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of Borrower or
its Subsidiaries, other than (A) the Obligations in accordance with this Agreement, (B) Permitted Intercompany Advances, and (C) Convertible Notes Redemptions, 
 (ii) make any payment on account of Indebtedness that has been contractually subordinated in right of payment if such payment is not permitted at such
time under the subordination terms and conditions, or 
 (b) Directly or indirectly, amend, modify, or change any of the terms or provisions
of 
 (i) any agreement, instrument, document, indenture, or other writing evidencing or concerning Indebtedness permitted under
Section 6.1 other than (A) the Obligations in accordance with this Agreement, (B) Permitted Intercompany Advances, and (C) Indebtedness permitted pursuant to clauses (c), (f), (h) and
(i) of the definition of Permitted Indebtedness; provided that, for the avoidance of doubt, amendments, modifications, and changes to the Convertible Notes Documents are permitted to the extent necessary to consummate a Permitted
Convertible Notes Refinancing, but only so long as such amendments, modifications, or changes comply with the restrictions applicable to a Permitted Convertible Notes Refinancing, 
 (ii) any Material Contract (other than the Convertible Notes Documents, which are covered in clause (b)(i) above) except to the extent that such
amendment, modification, alteration, increase, or change could not, individually or in the aggregate, reasonably be expected to be materially adverse to the interests of the Lenders, or 
 (iii) the Governing Documents of Borrower or any of its Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be
expected to be materially adverse to the interests of the Lenders. 
 6.8 Change of Control. Cause, permit, or suffer, directly
or indirectly, any Change of Control without the consent of the Required Lenders (which consent shall not be unreasonably withheld, delayed or conditioned). 
 6.9 Distributions. Make any distribution or declare or pay any dividends (in cash or other property, other than common Stock or Permitted Preferred Stock) on, or purchase, acquire, redeem, or retire any
of Borrower’s or its Subsidiaries’ Stock, of any class, whether now or hereafter outstanding; provided, however, that, so long as it is permitted by applicable law: 
 (a) Borrower’s Subsidiaries may make distributions to Borrower, 
 (b) Borrower may make distributions to former employees, officers, or directors (or any spouses, ex-spouses, or estates of any of the foregoing) on account of redemptions of Stock of Borrower held by such Persons,
provided, however, that the aggregate amount of such redemptions made by Borrower during the term of this Agreement plus the amount of Indebtedness outstanding under clause (j) of the definition of Permitted Indebtedness, does not
exceed $1,000,000 in the aggregate, and (y) Borrower may make distributions to former employees, officers, or directors (or any spouses, ex-spouses, or estates of any of the foregoing), solely in the form of forgiveness of Indebtedness of such
Persons owing to Borrower on account of repurchases of the Stock of Borrower held by such Persons; provided that such Indebtedness was incurred by such Persons solely to acquire Stock of Borrower, and 
 (c) Borrower may pay cash dividends on its Permitted Preferred Stock so long as (i) no Event of Default has occurred and is continuing or would
result therefrom, (ii) Availability both before and immediately after giving effect thereto is greater than $20,000,000, and (iii) the amount of cash dividends paid and to be paid on such Permitted Preferred Stock does not exceed the
amount of cash interest that Borrower would have been required to pay, on and after the date of the issuance of such Permitted Preferred Stock, on 

  

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the 1.875% Convertible Notes or the 3.875% Convertible Notes repurchased or redeemed in connection with the issuance of such Permitted Preferred Stock.

 6.10 Accounting Methods. Modify or change its fiscal year or its method of accounting (other than as may be required to
conform to GAAP). 
 6.11 Investments. Except for Permitted Investments, directly or indirectly, make or acquire any Investment
or incur any liabilities (including contingent obligations) for or in connection with any Investment; provided, however, that (other than (a) an aggregate amount of not more than $10,000 at any one time, in the case of Borrower
and its Subsidiaries (other than those that are CFCs and other than in respect of the Hong Kong Deposit Account), (b) an aggregate amount of not more than $100,000 at any one time in respect of the Hong Kong Deposit Account, (c) amounts
deposited into Deposit Accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for Borrower’s or its Subsidiaries’ employees, and (d) an aggregate amount of not more than
$50,000,000 (calculated at current exchange rates) at any one time, in the case of Subsidiaries of Borrower that are CFCs) Borrower and its Subsidiaries shall not have Permitted Investments consisting of cash, Cash Equivalents, or amounts credited
to Deposit Accounts or Securities Accounts unless Agent has a first-priority perfected Lien in such Deposit Accounts or Securities and the Permitted Investments credited therein. Subject to the foregoing proviso, Borrower shall not and shall not
permit its Subsidiaries to establish or maintain any Deposit Account or Securities Account unless Agent shall have received a Control Agreement in respect of such Deposit Account or Securities Account. 
 6.12 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any transaction with any Affiliate of Borrower or
any of its Subsidiaries except for: 
 (a) transactions (other than the payment of management, consulting, monitoring, or advisory fees)
between Borrower or its Subsidiaries, on the one hand, and any Affiliate of Borrower or its Subsidiaries, on the other hand, so long as such transactions (i) are upon fair and reasonable terms, (ii) are fully disclosed to Agent prior to
the consummation thereof if they involve one or more payments by Borrower or its Subsidiaries in excess of $250,000 for any single transaction or series of related transactions (excluding from this clause (ii) any transaction or series of
related transactions entered into in the ordinary course of business between Borrower, on the one hand, and any of its Subsidiaries, on the other hand or between any Subsidiaries of Borrower), and (iii) are no less favorable, taken as a whole,
to Borrower or its Subsidiaries, as applicable, than would be obtained in an arm’s length transaction with a non-Affiliate, 
 (b) so
long as it has been approved by Borrower’s Board of Directors in accordance with applicable law, any indemnity provided for the benefit of directors of Borrower, 
 (c) so long as it has been approved by Borrower’s Board of Directors, the payment of reasonable fees, compensation, or employee benefit arrangements to employees, officers, and outside directors of Borrower in
the ordinary course of business and consistent with industry practice, and 
 (d) transactions permitted by Section 6.3 or
Section 6.9, or any Permitted Intercompany Advance. 
 6.13 Use of Proceeds. Use the proceeds of the Advances for
any purpose other than (a) on the Closing Date, (i) to repay, in full, the outstanding principal, accrued interest, and accrued fees and expenses owing to Existing Lender, and (ii) to pay transactional fees, costs, and expenses
incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, and (b) thereafter, consistent with the terms and conditions hereof, for their lawful and permitted purposes, including
Convertible Notes Redemptions. 
 6.14 Consignments. Except as set forth on Schedule 4.25, consign any of its or their
Inventory or sell any of its or their Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale. 
  

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 6.15 Inventory and Equipment with Bailees. Except as set forth on Schedule 4.25,
store the Inventory or Equipment of Borrower or its Subsidiaries at any time now or hereafter with a bailee, warehouseman, or similar party. 
 6.16 Inactive Subsidiaries. Permit the Inactive Subsidiaries to (a) own any assets (other than any assets of a de minimis nature), (b) incur any liabilities (other than any liabilities of a de minimis nature), or
(c) engage in any business activity. 
 6.17 Limitation on Issuance of Certain Stock. Issue or sell Prohibited Preferred
Stock or permit any of its Subsidiaries to issue or sell or enter into any agreement or arrangement for the issuance and sale of, any shares of its Stock (other than to its immediate parent), any securities convertible into or exchangeable for its
Stock or any warrants. 
  

	7.	FINANCIAL COVENANTS. 

 Borrower covenants and agrees
that, until termination of all of the Commitments and payment in full of the Obligations, Borrower will comply with each of the following financial covenants: 
 (a) Minimum EBITDA. Achieve EBITDA as of the end of the fiscal quarter ended immediately preceding the date on which any Financial Covenant Period commences and as of the end of each fiscal quarter ended during
such Financial Covenant Period, of at least the required amount set forth in the following table for the applicable period set forth opposite thereto: 
  

			
	 Applicable Amount
	 	 Applicable Period

	$10,500,000	 	For the 6 month period ended June 28, 2009
		
	$23,000,000	 	For the 9 month period ended September 27, 2009
		
	$37,000,000	 	For the 12 month period ended January 3, 2010 and for each 12 month period ended as of the end of each fiscal quarter thereafter

 (b) Capital Expenditures. Make Capital Expenditures in any fiscal year in an amount less
than or equal to, but not greater than, the amount set forth in the following table for the applicable period: 
  

										
	 Fiscal Year 2009
	  	Fiscal Year 2010	  	Fiscal Year 2011	  	Fiscal Year 2012
	 $17,000,000
	  	$	18,000,000	  	$	18,000,000	  	$	18,000,000

 provided, however, that if the amount of the Capital Expenditures permitted to be made in any fiscal
year as set forth in the above table is greater than the actual amount of the Capital Expenditures (excluding the amount, if any, of Capital Expenditures made with Net Cash Proceeds reinvested pursuant to the proviso in
Section 2.4(e)(ii)) actually made in such fiscal year (such amount, the “Excess Amount”), then the lesser of (i) such Excess Amount and (ii) 50% of the amount set forth in the above table for the succeeding
fiscal year (such lesser amount referred to as the “Carry-Over Amount”) may be carried forward to the next succeeding fiscal year (the “Succeeding Fiscal Year”); provided further that the Carry-Over Amount
applicable to a particular Succeeding Fiscal Year may not be used in that Fiscal Year until the amount permitted above to be expended in such Fiscal Year has first been used in full and the Carry-Over Amount applicable to a particular Succeeding
Fiscal Year may not be carried forward to another fiscal year. 
  

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	8.	EVENTS OF DEFAULT. 

 Any one or more of the
following events shall constitute an event of default (each, an “Event of Default”) under this Agreement: 
 8.1 If Borrower
fails to pay when due and payable, or when declared due and payable, (a) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or other amounts (other than
any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any
such Insolvency Proceeding), and such failure continues for a period of 3 Business Days, or (b) all or any portion of the principal of the Obligations; 
 8.2 If Borrower or any of its Subsidiaries: 
 (a) fails to perform or observe any covenant or other agreement
contained in any of (i) Sections 5.1, 5.2, 5.3, 5.6, 5.7, 5.10, 5.11, 5.13, or 5.14 of this Agreement, (ii) Sections 6.1 through 6.17 of this Agreement,
(iii) Section 7 of this Agreement, or (iv) Section 6 of the Security Agreement; 
 (b) fails to perform or observe
any covenant or other agreement contained in any of Sections 5.4, 5.5, 5.8, 5.12, 5.15, and 5.16 of this Agreement and such failure continues for a period of 10 days after the earlier of (i) the date on
which such failure shall first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to Borrower by Agent; or 
 (c) fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of
another provision of this Section 8 (in which event such other provision of this Section 8 shall govern), and such failure continues for a period of 30 days after the earlier of (i) the date on which such failure shall
first become known to any officer of Borrower or (ii) the date on which written notice thereof is given to Borrower by Agent; 
 8.3 If
one or more judgments, orders, or awards for the payment of money involving an aggregate amount of $1,000,000, or more (except to the extent fully covered by insurance pursuant to which the insurer has accepted liability therefor in writing) is
entered or filed against Borrower or any of its Subsidiaries, or with respect to any of their respective assets, and either (a) such judgment, order, or award has not been discharged and there is a period of 30 consecutive days at any time
after the entry of any such judgment, order, or award during which a stay of enforcement thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment, order, or award; 
 8.4 If an Insolvency Proceeding is commenced by Borrower or any of its Subsidiaries; 
 8.5 If an Insolvency Proceeding is commenced against Borrower or any of its Subsidiaries and any of the following events occur: (a) Borrower or such
Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed
within 60 calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of,
Borrower or its Subsidiary, or (e) an order for relief shall have been issued or entered therein; 
 8.6 If Borrower or any of its
Subsidiaries is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business affairs; 
 8.7 If there is a default in one or more agreements to which Borrower or any of its Subsidiaries is a party with one or more third Persons relative to Borrower’s or any of its Subsidiaries’ Indebtedness
involving 

  

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an aggregate amount of $1,000,000 or more, and such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a
right by such third Person, irrespective of whether exercised, to accelerate the maturity of Borrower’s or its Subsidiary’s obligations thereunder; 
 8.8 If any warranty, representation, statement, or Record made herein or in any other Loan Document or delivered in writing to Agent or any Lender in connection with this Agreement or any other Loan Document proves to
be untrue in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date of issuance or making
or deemed making thereof; 
 8.9 If the Security Agreement or any other Loan Document that purports to create a Lien, shall, for any reason,
fail or cease to create a valid and perfected and, except to the extent permitted by the terms hereof or thereof, first priority Lien on the Collateral covered thereby, except as a result of a disposition of the applicable Collateral in a
transaction permitted under this Agreement; or 
 8.10 Any provision of any Loan Document shall at any time for any reason be declared to be
null and void, or the validity or enforceability thereof shall be contested by Borrower or its Subsidiaries, or a proceeding shall be commenced by Borrower or its Subsidiaries, or by any Governmental Authority having jurisdiction over Borrower or
its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or Borrower or its Subsidiaries shall deny that Borrower or its Subsidiaries has any liability or obligation purported to be created under any Loan Document.

  

	9.	RIGHTS AND REMEDIES. 

 9.1 Rights and
Remedies. Upon the occurrence and during the continuation of an Event of Default, Agent may, and, at the instruction of the Required Lenders, shall, in each case by written notice to Borrower and in addition to any other rights or remedies
provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following on behalf of the Lender Group: 
 (a) declare the Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable, whereupon the same shall become and be immediately due and payable, without presentment,
demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by Borrower; and 
 (b)
declare the Commitments terminated, whereupon the Commitments shall immediately be terminated together with any obligation of any Lender hereunder to make Advances and the obligation of the Issuing Lender to issue Letters of Credit. 
 The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section 8.4 or Section 8.5, in addition
to the remedies set forth above, without any notice to Borrower or any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations then outstanding, together with all accrued and unpaid interest
thereon and all fees and all other amounts due under this Agreement and the other Loan Documents, shall automatically and immediately become due and payable, without presentment, demand, protest, or notice of any kind, all of which are expressly
waived by Borrower. 
 9.2 Remedies Cumulative. The rights and remedies of the Lender Group under this Agreement, the other
Loan Documents, and all other agreements shall be cumulative. The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by the Lender Group of one right or
remedy shall be deemed an election, and no waiver by the Lender Group of any Event of Default shall be deemed a continuing waiver. No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it. 
  

	10.	WAIVERS; INDEMNIFICATION. 

  

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 10.1 Demand; Protest; etc. Borrower waives demand, protest, notice of protest, notice of
default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which Borrower may
in any way be liable. 
 10.2 The Lender Group’s Liability for Collateral. Borrower hereby agrees that: (a) so long
as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for: (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in
any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of
the Collateral shall be borne by Borrower. 
 10.3 Indemnification. Borrower shall pay, indemnify, defend, and hold the
Agent-Related Persons, the Lender-Related Persons, and each Participant (each, an “Indemnified Person”) harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations,
proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable fees and disbursements of attorneys, experts, or consultants and all other costs and expenses actually incurred in connection therewith or in connection with the
enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the
execution and delivery (provided that Borrower shall not be liable for costs and expenses (including attorneys fees) of any Lender (other than WFF) incurred in advising, structuring, drafting, reviewing, administering or syndicating the Loan
Documents), enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of
Borrower’s and its Subsidiaries’ compliance with the terms of the Loan Documents (other than disputes solely between the Lenders), (b) with respect to any investigation, litigation, or proceeding related to this Agreement, any other
Loan Document, or the use of the proceeds of the credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection
with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated by Borrower or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities and
Costs or Remedial Actions related in any way to any such assets or properties of Borrower or any of its Subsidiaries (each and all of the foregoing, the “Indemnified Liabilities”). The foregoing to the contrary notwithstanding,
Borrower shall have no obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified Liability that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful
misconduct of such Indemnified Person or its officers, directors, employees, attorneys, or agents. This provision shall survive the termination of this Agreement and the repayment of the Obligations. If any Indemnified Person makes any payment to
any other Indemnified Person with respect to an Indemnified Liability as to which Borrower was required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and
reimbursed by Borrower with respect thereto. WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR
OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON. 
  

	11.	NOTICES. 

 Unless otherwise provided in this
Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be
personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile. In the case of

  

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notices or demands to Borrower or Agent, as the case may be, they shall be sent to the respective address set forth below: 
  

			
	If to Borrower:	 	POWERWAVE TECHNOLOGIES, INC.
		 	1801 East St. Andrew Place
		 	Santa Ana, CA 92705
		 	Attn: Tom Spaeth, Corporate Treasurer
		 	Fax No.: (714) 466-5801
		
	with copies to:	 	STRADLING YOCCA CARLSON & RAUTH
		 	660 Newport Center Drive, Suite 1600
		 	Newport Beach, CA 92651
		 	Attn: Mark L. Skaist, Esq.
		 	Fax No.: (949) 725-4100
		
	If to Agent:	 	WELLS FARGO FOOTHILL, LLC
		 	2450 Colorado Avenue, Suite 3000 West
		 	Santa Monica, CA 90404
		 	Attn: Business Finance Division Manager
		 	Fax No.: (310) 453-7413
		
	with copies to:	 	PAUL, HASTINGS, JANOFSKY & WALKER LLP
		 	515 S. Flower Street
		 	Twenty-fifth Floor
		 	Los Angeles, CA 90071
		 	Attn: John Francis Hilson, Esq.

 Any party hereto may change the address at which they are to receive notices hereunder, by notice
in writing in the foregoing manner given to the other party. All notices or demands sent in accordance with this Section 11, shall be deemed received on the earlier of the date of actual receipt or 3 Business Days after the deposit
thereof in the mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (except that, if not given
during normal business hours for the recipient, shall be deemed to have been given at the opening on business on the next Business Day for the recipient) and (c) notices by electronic mail shall be deemed received upon the sender’s receipt
of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, as available, return email or other written acknowledgment). 
  

	12.	CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER. 

 (a)
THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, AND THE
RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO 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 AND THE OTHER LOAN DOCUMENTS

  

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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 12(b). 
 (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. 
  

	13.	ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS. 

 13.1
Assignments and Participations. 
 (a) With the prior written consent of Agent, which consent of Agent shall not be unreasonably
withheld, delayed or conditioned, and shall not be required in connection with an assignment to a Person that is a Lender or an Affiliate (other than individuals) of a Lender, any Lender may assign and delegate to one or more assignees (each an
“Assignee”; provided that neither Borrower nor any Affiliate of Borrower shall be permitted to become an Assignee) all or any portion of the Obligations, the Commitments and the other rights and obligations of such Lender hereunder
and under the other Loan Documents, in a minimum amount (unless waived by the Agent) of $5,000,000 (except such minimum amount shall not apply to (x) an assignment or delegation by any Lender to any other Lender or an Affiliate of any Lender or
(y) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000); provided,
however, that Borrower and Agent may continue to deal solely and directly with such Lender in connection with the interest so assigned to an Assignee until (i) written notice of such assignment, together with payment instructions,
addresses, and related information with respect to the Assignee, have been given to Borrower and Agent by such Lender and the Assignee, (ii) such Lender and its Assignee have delivered to Borrower and Agent an Assignment and Acceptance and
Agent has notified the assigning Lender of its receipt thereof in accordance with Section 13.1(b), and (iii) unless waived by the Agent, the assigning Lender or Assignee has paid to Agent for Agent’s separate account a
processing fee in the amount of $3,500. 
 (b) From and after the date that Agent notifies the assigning Lender (with a copy to Borrower)
that it has received an executed Assignment and Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been
assigned to it pursuant to such Assignment and Acceptance, shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the other
Loan Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3 hereof) and be released from any future obligations under this Agreement (and in the case of
an Assignment and Acceptance 

  

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covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement and the other Loan Documents, such Lender
shall cease to be a party hereto and thereto), and such assignment shall effect a novation among Borrower, the assigning Lender, and the Assignee; provided, however, that nothing contained herein shall release any assigning Lender from
obligations that survive the termination of this Agreement, including such assigning Lender’s obligations under Section 15 and Section 17.9(a) of this Agreement. 
 (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each
other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of Borrower or the performance or observance by Borrower of any of its obligations under this Agreement or any other Loan Document
furnished pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into
such Assignment and Acceptance, (iv) such Assignee will, independently and without reliance upon Agent, such assigning Lender 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 this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement and the other Loan Documents as are
delegated to Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such Assignee agrees that it will perform all of the obligations which by the terms of this Agreement are required to
be performed by it as a Lender. 
 (d) Immediately upon Agent’s receipt of the required processing fee, if applicable, and delivery of
notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the
Commitments arising therefrom. The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto. 
 (e) Any Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a “Participant”) participating interests in all or any portion of its Obligations, its Commitment, and the other
rights and interests of that Lender (the “Originating Lender”) hereunder and under the other Loan Documents; provided, however, that (i) the Originating Lender shall remain a “Lender” for all purposes of
this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder shall not constitute a
“Lender” hereunder or under the other Loan Documents and the Originating Lender’s obligations under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such
obligations, (iii) Borrower, Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender in connection with the Originating Lender’s rights and obligations under this Agreement and the other Loan
Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to
the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce
the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan
Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through such Lender, or (E) change the
amount or due dates of scheduled principal repayments or prepayments or premiums, and (v) all amounts payable by Borrower hereunder shall be determined as if such 

  

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Lender had not sold such participation, except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall
have become due and payable upon the occurrence of an Event of Default, each Participant shall be deemed to have the right of set off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount
of its participating interest were owing directly to it as a Lender under this Agreement. The rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant shall have any
rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrower, the Collections of Borrower or its Subsidiaries, the Collateral, or otherwise in respect of the Obligations. No Participant shall
have the right to participate directly in the making of decisions by the Lenders among themselves. 
 (f) In connection with any such
assignment or participation or proposed assignment or participation or any grant of a security interest in, or pledge of, its rights under and interest in this Agreement, a Lender may, subject to the provisions of Section 17.9, disclose
all documents and information which it now or hereafter may have relating to Borrower and its Subsidiaries and their respective businesses. 
 (g) Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement in favor of any Federal Reserve Bank in
accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law. 
 13.2 Successors. This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties;
provided, however, that Borrower may not assign this Agreement or any rights or duties hereunder without the Lenders’ prior written consent and any prohibited assignment shall be absolutely void ab initio. No consent to
assignment by the Lenders shall release Borrower from its Obligations. A Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to Section 13.1 hereof and, except as
expressly required pursuant to Section 13.1 hereof, no consent or approval by Borrower is required in connection with any such assignment. 
  

	14.	AMENDMENTS; WAIVERS. 

 14.1 Amendments and
Waivers.  
 (a) No amendment, waiver or other modification of any provision of this Agreement or any other Loan Document (other than
Bank Product Agreements or the Fee Letter), and no consent with respect to any departure by Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the written request of the
Required Lenders) and Borrower and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, however, that no such waiver, amendment, or consent shall,
unless in writing and signed by all of the Lenders directly affected thereby and Borrower, do any of the following: 
 (i) increase the
amount of or extend the expiration date of any Commitment of any Lender, 
 (ii) postpone or delay any date fixed by this Agreement or any
other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document, 
 (iii)
reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document (except (y) in connection with the waiver of
applicability of Section 2.6(c) (which waiver shall be effective with the written consent of the Required Lenders), and (z) that any amendment or modification of defined 

  

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terms used in the financial covenants in this Agreement shall not constitute a reduction in the rate of interest or a reduction of fees for purposes of this
clause (iii)), 
 (iv) amend or modify this Section or any provision of this Agreement providing for consent or other action by all Lenders,

 (v) other than as permitted by Section 15.11, release Agent’s Lien in and to any of the Collateral, 
 (vi) change the definition of “Required Lenders” or “Pro Rata Share”, 
 (vii) contractually subordinate any of the Agent’s Liens, 
 (viii) other than in connection with a merger, liquidation, dissolution or sale of such Person expressly permitted by the terms hereof or the other Loan Documents, release Borrower or any Guarantor from any obligation
for the payment of money or consent to the assignment or transfer by the Borrower or any Guarantor of any of its rights or duties under this Agreement or the other Loan Documents, 
 (ix) amend any of the provisions of Section 2.4(b)(i) or (ii), 
 (x) amend Section 13.1(a) to permit Borrower or an Affiliate of Borrower to be permitted to become an Assignee, 
 (xi) change the definition of Borrowing Base or any of the defined terms (including the definitions of Eligible Accounts, Eligible Foreign Accounts and
Collections) that are used in such definition to the extent that any such change results in more credit being made available to Borrower based upon the Borrowing Base, or amend Section 2.1(c), or 
 (xii) except pursuant to Section 2.14, change the definition of Maximum Revolver Amount, 
 (b) No amendment, waiver, modification, or consent shall amend, modify, or waive (i) the definition of, or any of the terms or provisions of, the
Fee Letter, without the written consent of Agent and Borrower (and shall not require the written consent of any of the Lenders), and (ii) any provision of Section 15 pertaining to Agent, or any other rights or duties of Agent under
this Agreement or the other Loan Documents, without the written consent of Agent, Borrower, and the Required Lenders, 
 (c) No amendment,
waiver, modification, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Issuing Lender, or any other rights or duties of Issuing Lender under this Agreement or the other Loan
Documents, without the written consent of Issuing Lender, Agent, Borrower, and the Required Lenders, 
 (d) No amendment, waiver,
modification, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Swing Lender, or any other rights or duties of Swing Lender under this Agreement or the other Loan Documents, without
the written consent of Swing Lender, Agent, Borrower, and the Required Lenders, 
 (e) Anything in this Section 14.1 to the
contrary notwithstanding, any amendment, modification, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the Lender Group among
themselves, and that does not affect the rights or obligations of Borrower, shall not require consent by or the agreement of Borrower. 
 14.2 Replacement of Holdout Lender. 
  

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 (a) If any action to be taken by the Lender Group or Agent hereunder requires the unanimous consent,
authorization, or agreement of all Lenders and if such action has received the consent, authorization, or agreement of the Required Lenders but not all of the Lenders, then Agent, upon at least 5 Business Days prior irrevocable notice, may
permanently replace any Lender (a “Holdout Lender”) that failed to give its consent, authorization, or agreement with one or more Replacement Lenders, and the Holdout Lender shall have no right to refuse to be replaced hereunder.
Such notice to replace the Holdout Lender shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given. 
 (b) Prior to the effective date of such replacement, the Holdout Lender and each Replacement Lender shall execute and deliver an Assignment and
Acceptance, subject only to the Holdout Lender being repaid its share of the outstanding Obligations (including an assumption of its Pro Rata Share of the Risk Participation Liability) without any premium or penalty of any kind whatsoever. If the
Holdout Lender shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, the Holdout Lender shall be deemed to have executed and delivered such Assignment and Acceptance. The
replacement of any Holdout Lender shall be made in accordance with the terms of Section 13.1. Until such time as the Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights and obligations of
the Holdout Lender hereunder and under the other Loan Documents, the Holdout Lender shall remain obligated to make the Holdout Lender’s Pro Rata Share of Advances and to purchase a participation in each Letter of Credit, in an amount equal to
its Pro Rata Share of the Risk Participation Liability of such Letter of Credit. 
 14.3 No Waivers; Cumulative Remedies. No
failure by Agent or any Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof. No waiver by Agent or any Lender will
be effective unless it is in writing, and then only to the extent specifically stated. No waiver by Agent or any Lender on any occasion shall affect or diminish Agent’s and each Lender’s rights thereafter to require strict performance by
Borrower of any provision of this Agreement. Agent’s and each Lender’s rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have.

  

	15.	AGENT; THE LENDER GROUP. 

 15.1 Appointment
and Authorization of Agent. Each Lender hereby designates and appoints WFF as its representative 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 such on the express conditions contained in this Section 15. The provisions of this Section 15 are
solely for the benefit of Agent and the Lenders, and Borrower and its Subsidiaries shall have no rights as a third party beneficiary of any of the provisions contained herein. Any provision to the contrary contained elsewhere in this Agreement or in
any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent; it being expressly understood and agreed that the use of the word “Agent” is for
convenience only, that WFF is merely the representative of the Lenders, and only has the contractual duties set forth herein. Except as expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to
exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan Documents. Without limiting
the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to exercise 

  

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the following powers as long as this Agreement remains in effect: (a) maintain, in accordance with its customary business practices, ledgers and records
reflecting the status of the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements,
documents, instruments, proofs of claim, notices and other written agreements with respect to the Loan Documents, (c) make Advances, for itself or on behalf of Lenders, as provided in the Loan Documents, (d) exclusively receive, apply, and
distribute the Collections of Borrower and its Subsidiaries as provided in the Loan Documents, (e) open and maintain such bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan
Documents for the foregoing purposes with respect to the Collateral and the Collections of Borrower and its Subsidiaries, (f) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to Borrower or
its Subsidiaries, the Obligations, the Collateral, the Collections of Borrower and its Subsidiaries, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses as Agent may deem
necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents. 
 15.2
Delegation of Duties. Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining
to such duties. Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct. 
 15.3 Liability of Agent. None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken by any of
them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (b) be responsible in any manner to any of the Lenders for any
recital, statement, representation or warranty made by Borrower or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or
other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other
Loan Document, or for any failure of Borrower or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender to ascertain or to
inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records or properties of Borrower or its Subsidiaries. 
 15.4 Reliance by Agent. Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice,
consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed,
sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrower or counsel to any Lender), independent accountants and other experts selected by Agent. Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or
refrain from acting, as it deems advisable. If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to
take any such action. Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the requisite Lenders and such request and any
action taken or failure to act pursuant thereto shall be binding upon all of the Lenders. 
 15.5 Notice of Default or Event of
Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for
the account of the Lenders and, except 

  

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with respect to Events of Default of which Agent has actual knowledge, unless Agent shall have received written notice from a Lender or Borrower referring to
this Agreement, describing such Default or Event of Default, and stating that such notice is a “notice of default.” Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has
actual knowledge. If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of Default. Each Lender shall be solely responsible for giving any notices to its
Participants, if any. Subject to Section 15.4, Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 8; provided,
however, that unless and until Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable.

 15.6 Credit Decision. Each Lender acknowledges that none of the Agent-Related Persons has made any representation or
warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of Borrower and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender.
Each Lender represents to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business,
prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own
decision to enter into this Agreement and to extend credit to Borrower. Each Lender also represents that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as
to the business, prospects, operations, property, financial and other condition and creditworthiness of Borrower or any other Person party to a Loan Document. Except for notices, reports, and other documents expressly herein required to be furnished
to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of
Borrower or any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons. 
 15.7
Costs and Expenses; Indemnification. Agent may incur and pay Lender Group Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to
the Loan Documents, including court costs, attorneys fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of
security guards or insurance premiums paid to maintain the Collateral, whether or not Borrower is obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise. Agent is authorized and directed to deduct and
retain sufficient amounts from the Collections of Borrower and its Subsidiaries received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders. In the event Agent is not reimbursed
for such costs and expenses by Borrower or its Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender’s Pro Rata Share thereof. Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrower and without limiting the obligation of Borrower to do so), according to their Pro Rata Shares, from and against any and all
Indemnified Liabilities; provided, however, that no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities resulting solely from such Person’s gross negligence or willful
misconduct nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make an Advance or other extension of credit hereunder. Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such
Lender’s Pro Rata Share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the preparation, execution, delivery, administration,
modification, amendment, or enforcement 

  

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(whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, or any document contemplated by or referred to herein, to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrower. The undertaking in this Section shall survive the payment of all Obligations hereunder
and the resignation or replacement of Agent. 
 15.8 Agent in Individual Capacity. WFF and its Affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with Borrower and its Subsidiaries and Affiliates
and any other Person party to any Loan Documents as though WFF were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group. The other members of the Lender Group acknowledge that, pursuant to
such activities, WFF or its Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of Borrower or such other Person and that
prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable best efforts to
obtain), Agent shall not be under any obligation to provide such information to them. The terms “Lender” and “Lenders” include WFF in its individual capacity. 
 15.9 Successor Agent. Agent may resign as Agent upon 30 days prior written notice to the Lenders (unless such notice is waived by the
Required Lenders) and Borrower (unless such notice is waived by Borrower). If Agent resigns under this Agreement, the Required Lenders shall be entitled, with (so long as no Event of Default has occurred and is continuing) the consent of Borrower
(such consent not to be unreasonably withheld, delayed, or conditioned), appoint a successor Agent for the Lenders. If, at the time that Agent’s resignation is effective, it is acting as the Issuing Lender or the Swing Lender, such resignation
shall also operate to effectuate its resignation as the Issuing Lender or the Swing Lender, as applicable, and it shall automatically be relieved of any further obligation to issue Letters of Credit or make Swing Loans. If no successor Agent is
appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with the Lenders and Borrower, a successor Agent. If Agent has materially breached or failed to perform any material provision of this Agreement
or of applicable law, the Required Lenders may agree in writing to remove and replace Agent with a successor Agent from among the Lenders. In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent
shall succeed to all the rights, powers, and duties of the retiring Agent and the term “Agent” shall mean such successor Agent and the retiring Agent’s appointment, powers, and duties as Agent shall be terminated. After any retiring
Agent’s resignation hereunder as Agent, the provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. If no successor Agent has accepted
appointment as Agent by the date which is 30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Agent
hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above. 
 15.10 Lender in Individual
Capacity. Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory,
underwriting, or other business with Borrower and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender
Group. The other members of the Lender Group acknowledge that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding Borrower or its Affiliates or any other Person party to any Loan Documents that
is subject to confidentiality obligations in favor of Borrower or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge that, in such circumstances (and in the absence of a waiver of such
confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information to them. 
  

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 15.11 Collateral Matters. 
 (a) The Lenders hereby irrevocably authorize Agent, at its option and in its sole discretion, to release any Lien on any Collateral (i) upon the
termination of the Commitments and payment and satisfaction in full by Borrower of all Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection therewith and if Borrower certifies to
Agent that the sale or disposition is permitted under Section 6.4 of this Agreement or the other Loan Documents (and Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which
Borrower or its Subsidiaries owned no interest at the time the Agent’s Lien was granted nor at any time thereafter, or (iv) constituting property leased to Borrower or its Subsidiaries under a lease that has expired or is terminated in a
transaction permitted under this Agreement. Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or substantially all of the
Collateral, all of the Lenders, or (z) otherwise, the Required Lenders. Upon request by Agent or Borrower at any time, the Lenders will confirm in writing Agent’s authority to release any such Liens on particular types or items of
Collateral pursuant to this Section 15.11; provided, however, that (1) Agent shall not be required to execute any document necessary to evidence such release on terms that, in Agent’s opinion, would expose Agent
to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any
Liens (other than those expressly being released) upon (or obligations of Borrower in respect of) all interests retained by Borrower, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral. 

(b) Agent shall have no obligation whatsoever to any of the Lenders to assure that the Collateral exists or is owned by Borrower or its Subsidiaries
or is cared for, protected, or insured or has been encumbered, or that the Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, or to exercise at all
or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed
that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given Agent’s own interest in
the Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender as to any of the foregoing, except as otherwise provided herein. 
 15.12 Restrictions on Actions by Lenders; Sharing of Payments. 
 (a) Each of the Lenders agrees that it shall not, without the express written consent of Agent, and that it shall, to the extent it is lawfully entitled
to do so, upon the written request of Agent, set off against the Obligations, any amounts owing by such Lender to Borrower or its Subsidiaries or any deposit accounts of Borrower or its Subsidiaries now or hereafter maintained with such Lender. Each
of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action, including, the commencement of any legal or equitable proceedings to enforce any Loan Document against
Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral. 
 (b) If, at
any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from
Agent pursuant to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender’s Pro Rata Share of all such distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with
such endorsements as may be required to negotiate the same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this
Agreement, or (B) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among 

  

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the Lenders in accordance with their Pro Rata Shares; provided, however, that to the extent that such excess payment received by the purchasing
party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without
interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. 
 15.13 Agency for Perfection. Agent hereby appoints each other Lender as its agent (and each Lender hereby accepts such appointment) for the purpose of perfecting the Agent’s Liens in assets which, in accordance with
Article 8 or Article 9, as applicable, of the Code can be perfected by possession or control. Should any Lender obtain possession or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent’s request
therefor shall deliver possession or control of such Collateral to Agent or in accordance with Agent’s instructions. 
 15.14
Payments by Agent to the Lenders. All payments to be made by Agent to the Lenders shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by
written notice to Agent. Concurrently with each such payment, Agent shall identify whether such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations. 
 15.15 Concerning the Collateral and Related Loan Documents. Each member of the Lender Group authorizes and directs Agent to enter into this
Agreement and the other Loan Documents. Each member of the Lender Group agrees that any action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its
powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders. 
 15.16 Audits and Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information. By becoming a party to this Agreement, each Lender: 
 (a) is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field audit or examination report
respecting Borrower or its Subsidiaries (each a “Report” and collectively, “Reports”) prepared by or at the request of Agent, and Agent shall so furnish each Lender with such Reports, 
 (b) expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and
(ii) shall not be liable for any information contained in any Report, 
 (c) expressly agrees and acknowledges that the Reports are not
comprehensive audits or examinations, that Agent or other party performing any audit or examination will inspect only specific information regarding Borrower and its Subsidiaries and will rely significantly upon Borrower’s and its
Subsidiaries’ books and records, as well as on representations of Borrower’s personnel, 
 (d) agrees to keep all Reports and other
material, non-public information regarding Borrower and its Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 17.9, and 
 (e) without limiting the generality of any other indemnification provision contained in this Agreement, agrees: (i) to hold Agent and any other
Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the
indemnifying Lender has made or may make to Borrower, or the indemnifying Lender’s participation in, or the indemnifying Lender’s purchase of, a loan or loans of Borrower, and (ii) to pay and protect, and indemnify, defend and hold
Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, 

  

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proceedings, damages, costs, expenses, and other amounts (including, attorneys fees and costs) incurred by Agent and any such other Lender preparing a Report
as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 
 In addition to the
foregoing: (x) any Lender may from time to time request of Agent in writing that Agent provide to such Lender a copy of any report or document provided by Borrower or its Subsidiaries to Agent that has not been contemporaneously provided by
Borrower or such Subsidiary to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request
additional reports or information from Borrower or its Subsidiaries, any Lender may, from time to time, reasonably request Agent to exercise such right as specified in such Lender’s notice to Agent, whereupon Agent promptly shall request of
Borrower the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from Borrower or such Subsidiary, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent renders to
Borrower a statement regarding the Loan Account, Agent shall send a copy of such statement to each Lender. 
 15.17 Several
Obligations; No Liability. Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all
obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of
such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments. Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect
of, the business, assets, profits, losses, or liabilities of any other Lender. Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no
Lender shall have any obligation, duty, or liability to any Participant of any other Lender. Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group.
No Lender shall be responsible to Borrower or any other Person for any failure by any other Lender to fulfill its obligations to make credit available hereunder, nor to advance for it or on its behalf in connection with its Commitment, nor to take
any other action on its behalf hereunder or in connection with the financing contemplated herein. 
  

	16.	WITHHOLDING TAXES. 

 (a) All payments
made by Borrower hereunder or under any note or other Loan Document will be made without setoff, counterclaim, or other defense. In addition, all such payments will be made free and clear of, and without deduction or withholding for, any present or
future Taxes, and in the event any deduction or withholding of Taxes is required, Borrower shall comply with the next sentence of this Section 16(a). If any Taxes are so levied or imposed, Borrower agrees to pay the full amount of such
Taxes and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16(a) after withholding or deduction for
or on account of any Taxes, will not be less than the amount provided for herein; provided, however, that Borrower shall not be required to increase any such amounts if the increase in such amount payable results from Agent’s or such
Lender’s own willful misconduct or gross negligence (as finally determined by a court of competent jurisdiction). Borrower will furnish to Agent as promptly as possible after the date the payment of any Tax is due pursuant to applicable law,
certified copies of tax receipts evidencing such payment by Borrower. 
 (b) Borrower agrees to pay any present or future stamp, value added
or documentary taxes or any other excise or property taxes, charges, or similar levies that arise from any payment made hereunder or from the execution, delivery, performance, recordation, or filing of, or otherwise with respect to this Agreement or
any other Loan Document. 
  

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 (c) If a Lender or Participant is entitled to claim an exemption or reduction from United States
withholding tax, such Lender or Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) one of the following before receiving its first payment under this
Agreement: 
 (i) if such Lender or Participant is entitled to claim an exemption from United States withholding tax pursuant to its
portfolio interest exception, (A) a statement of the Lender or Participant, signed under penalty of perjury, that it is not a (I) a “bank” as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of Borrower
(within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign corporation related to Borrower within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS Form W-8BEN or
Form W-8IMY (with proper attachments); 
 (ii) if such Lender or Participant is entitled to claim an exemption from, or a reduction of,
withholding tax under a United States tax treaty, a properly completed and executed copy of IRS Form W-8BEN; 
 (iii) if such Lender or
Participant is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, a properly completed and executed copy
of IRS Form W-8ECI; 
 (iv) if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United
States withholding tax because such Lender or Participant serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (with proper attachments); or 
 (v) a properly completed and executed copy of any other form or forms, including IRS Form W-9, as may be required under the IRC or other laws of the
United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax. 
 Each Lender or Participant shall
provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Agent (or, in the case of a Participant, to the Lender granting the participation only) of any change in
circumstances which would modify or render invalid any claimed exemption or reduction. 
 (d) If a Lender or Participant claims an exemption
from withholding tax in a jurisdiction other than the United States, such Lender or such Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) any such
form or forms, as may be required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before receiving its first payment under this Agreement, but only if such Lender
or such Participant is legally able to deliver such forms, provided, however, that nothing in this Section 16(d) shall require a Lender or Participant to disclose any information that it deems to be confidential (including without
limitation, its tax returns). Each Lender and each Participant shall provide new forms (or successor forms) upon the expiration or obsolescence of any previously delivered forms and to promptly notify Agent (or, in the case of a Participant, to the
Lender granting the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction. 
 (e) If a Lender or Participant claims exemption from, or reduction of, withholding tax and such Lender or Participant sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of Borrower to such
Lender or Participant, such Lender or Participant agrees to notify Agent (or, in the case of a sale of a participation interest, to the Lender granting the participation only) of the percentage amount in which it is no longer the beneficial owner of
Obligations of Borrower to such Lender or Participant. To the extent of such percentage amount, Agent will treat such Lender’s or such Participant’s documentation provided pursuant to Section 16(c) or 16(d) as no longer valid. With
respect to such percentage amount, such Participant or Assignee may provide new documentation, pursuant to Section 16(c) or 16(d), if applicable. 

  

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Borrower agrees that each Participant shall be entitled to the benefits of this Section 16 with respect to its participation in any portion of the
Commitments and the Obligations so long as such Participant complies with the obligations set forth in this Section 16 with respect thereto. 
 (f) If a Lender or a Participant is entitled to a reduction in the applicable withholding tax, Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such
Participant an amount equivalent to the applicable withholding tax after taking into account such reduction. If the forms or other documentation required by subsection (c) or (d) of this Section 16 are not delivered to
Agent (or, in the case of a Participant, to the Lender granting the participation), then Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any interest payment to such Lender or such Participant not
providing such forms or other documentation an amount equivalent to the applicable withholding tax. 
 (g) If the IRS or any other
Governmental Authority of the United States or other jurisdiction asserts a claim that Agent (or, in the case of a Participant, to the Lender granting the participation) did not properly withhold tax from amounts paid to or for the account of any
Lender or any Participant due to a failure on the part of the Lender or any Participant (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Agent (or such Participant failed to notify
the Lender granting the participation) of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless (or, in the case of a
Participant, such Participant shall indemnify and hold the Lender granting the participation harmless) for all amounts paid, directly or indirectly, by Agent (or, in the case of a Participant, to the Lender granting the participation), as tax or
otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Agent (or, in the case of a Participant, to the Lender granting the participation only) under this Section 16,
together with all costs and expenses (including attorneys fees and expenses). The obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent.

 (h) If Agent or a Lender reasonably determines that it has received a refund of any Taxes as to which it has been indemnified by Borrower
or with respect to which Borrower has paid additional amounts pursuant to this Section 16, so long as no Default or Event of Default has occurred and is continuing, it shall pay over such refund to Borrower (but only to the extent of payments
made, or additional amounts paid, by Borrower under this Section 16 with respect to Taxes giving rise to such a refund), net of all reasonable out-of-pocket expenses of Agent or such Lender and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such a refund); provided, that Borrower, upon the request of Agent or such Lender, agrees to repay the amount paid over to Borrower (plus any penalties, interest or other charges, imposed by the
relevant Governmental Authority, other than such penalties, interest or other charges imposed as a result of the willful misconduct or gross negligence of Agent hereunder) to Agent or such Lender in the event Agent or such Lender is required to
repay such refund to such Governmental Authority. Notwithstanding anything in this Credit Agreement to the contrary, this Section 16 shall not be construed to require Agent or any Lender to make available its tax returns (or any other
information which it deems confidential) to Borrower or any other Person. 
  

	17.	GENERAL PROVISIONS. 

 17.1 Effectiveness.
This Agreement shall be binding and deemed effective when executed by Borrower, Agent, and each Lender whose signature is provided for on the signature pages hereof. 
 17.2 Section Headings. Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each Section applies equally to this
entire Agreement. 
 17.3 Interpretation. Neither this Agreement nor any uncertainty or ambiguity herein shall be construed
against the Lender Group or Borrower, whether under any rule of construction or otherwise. On the 

  

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contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to
accomplish fairly the purposes and intentions of all parties hereto. 
 17.4 Severability of Provisions. Each provision of this
Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 17.5 Bank Product Providers. Each Bank Product Provider shall be deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document
to the parties for whom Agent is acting; it being understood and agreed that the rights and benefits of such Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider’s right to share in payments and
collections out of the Collateral as more fully set forth herein. In connection with any such distribution of payments and collections, Agent shall be entitled to assume no amounts are due to any Bank Product Provider unless such Bank Product
Provider has notified Agent in writing of the amount of any such liability owed to it prior to such distribution. 
 17.6
Debtor-Creditor Relationship. The relationship between the Lenders and Agent, on the one hand, and Borrower, on the other hand, is solely that of creditor and debtor. No member of the Lender Group has (or shall be deemed to have) any
fiduciary relationship or duty to Borrower arising out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no agency or joint venture relationship between the members of the Lender Group, on the one
hand, and Borrower, on the other hand, by virtue of any Loan Document or any transaction contemplated therein. 
 17.7 Counterparts;
Electronic Execution. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken
together, shall constitute but one and the same Agreement. Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed
counterpart of this Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to
deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement. The foregoing shall apply to each other Loan Document mutatis mutandis. 
 17.8 Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by Borrower or Guarantor or the transfer to
the Lender Group of any property should for any reason subsequently be asserted, or declared, to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to
fraudulent conveyances, preferences, or other voidable or recoverable payments of money or transfers of property (each, a “Voidable Transfer”), and if the Lender Group is required to repay or restore, in whole or in part, any such
Voidable Transfer, or elects to do so upon the reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Lender Group is required or elects to repay or restore, and as to all reasonable costs, expenses,
and attorneys fees of the Lender Group related thereto, the liability of Borrower or Guarantor automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
 17.9 Confidentiality.  
 (a)
Agent and Lenders each individually (and not jointly or jointly and severally) agree that material, non-public information regarding Borrower and its Subsidiaries, their operations, assets, and existing and contemplated business plans shall be
treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except: (i) to attorneys for and other advisors, accountants, auditors, and
consultants to any member of the Lender Group, (ii) to Subsidiaries and Affiliates of any member of the Lender Group (including the Bank Product 

  

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Providers), provided that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the terms of this
Section 17.9, (iii) as may be required by statute, decision, or judicial or administrative order, rule, or regulation, (iv) as may be agreed to in advance by Borrower in writing or as requested or required by any Governmental
Authority pursuant to any subpoena or other legal process, (v) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent or the Lenders), (vi) in connection
with any assignment, participation or pledge of any Lender’s interest under this Agreement, provided that any such assignee, participant, or pledgee shall have agreed in writing to receive such information hereunder subject to the terms of this
Section, (vii) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding involves claims related to the rights or duties of such parties under this Agreement or the
other Loan Documents, and (viii) in connection with the exercise of any secured creditor remedy under this Agreement or under any other Loan Document. The provisions of this Section 17.9(a) shall survive for 2 years after the
payment in full of the Obligations. 
 (b) Anything in this Agreement to the contrary notwithstanding, Agent may provide information
concerning the terms and conditions of this Agreement and the other Loan Documents to loan syndication and pricing reporting services. 
 17.10 Lender Group Expenses. Borrower agrees to pay any and all Lender Group Expenses promptly after demand therefor by Agent and agrees that its obligations contained in this Section 17.10 shall survive payment or
satisfaction in full of all other Obligations. 
 17.11 USA PATRIOT Act. Each Lender that is subject to the requirements of the
Patriot Act hereby notifies the Borrower that pursuant to the requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other
information that will allow such Lender to identify the Borrower in accordance with the Patriot Act. 
 17.12 DESIGNATED SENIOR
INDEBTEDNESS. THE INDEBTEDNESS EVIDENCED BY THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTES DESIGNATED SENIOR INDEBTEDNESS UNDER EACH OF THE 1.875% CONVERTIBLE NOTES INDENTURE AND THE 3.875% CONVERTIBLE NOTES INDENTURE. 

17.13 Integration. This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect
to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof. 
 [Signature pages to follow.] 
  

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

			
	 POWERWAVE TECHNOLOGIES, INC.,
 a
Delaware corporation

		
	 By:
	 	 /s/ Kevin T. Michaels

	 Title:
	 	 CFO

	
	 WELLS FARGO FOOTHILL, LLC, 
 a
Delaware limited liability company, as Agent and as a Lender

		
	 By:
	 	 /s/ Samantha Alexander

	 Title:
	 	 Vice President

  

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 EXHIBITS AND SCHEDULES 
  

			
	Exhibit A-1	    	Form of Assignment and Acceptance
	Exhibit B-1	    	Form of Borrowing Base Certificate
	Exhibit C-1	    	Form of Compliance Certificate
	Exhibit L-1	    	Form of LIBOR Notice
		
	Schedule A-1	    	Agent’s Account
	Schedule A-2	    	Authorized Persons
	Schedule C-1	    	Commitments
	Schedule D-1	    	Designated Account
	Schedule F-1	    	Eligible Foreign Account Debtors
	Schedule P-1	    	Permitted Investments
	Schedule P-2	    	Permitted Liens
	Schedule S-1	    	Sales Support Services Agreements
	Schedule 1.1	    	Definitions
	Schedule 3.1	    	Conditions Precedent
	Schedule 4.1(b)	    	Capitalization of Borrower
	Schedule 4.1(c)	    	Capitalization of Borrower’s Subsidiaries
	Schedule 4.6(a)	    	States of Organization
	Schedule 4.6(b)	    	Chief Executive Offices
	Schedule 4.6(c)	    	Organizational Identification Numbers
	Schedule 4.6(d)	    	Commercial Tort Claims
	Schedule 4.7	    	Litigation
	Schedule 4.12	    	Environmental Matters
	Schedule 4.13	    	Intellectual Property
	Schedule 4.15	    	Deposit Accounts and Securities Accounts
	Schedule 4.17	    	Material Contracts
	Schedule 4.19	    	Permitted Indebtedness
	Schedule 4.20	    	Taxes
	Schedule 4.25	    	Locations of Inventory and Equipment
	Schedule 5.1	    	Financial Statements, Reports, Certificates
	Schedule 5.2	    	Collateral Reporting

 Schedule 1.1 
 As used in the Agreement, the following terms shall have the following definitions: 
 “1.875%
Convertible Notes” means the 1.875% Convertible Subordinated Notes due 2024 issued pursuant to the 1.875% Convertible Notes Indenture. 
 “1.875% Convertible Notes Indenture” means the Indenture dated as of November 10, 2004 by and among Borrower and Deutsche Bank Trust Company Americas, a New York banking corporation, as Trustee. 
 “1.875% Convertible Notes Documents” means the 1.875% Convertible Notes, the 1.875% Convertible Notes Indenture, and the agreements,
documents and instruments executed in connection therewith. 
 “3.875% Convertible Notes” means the 3.875% Convertible
Subordinated Notes due 2027 issued pursuant to the 3.875% Convertible Notes Indenture. 
 “3.875% Convertible Notes
Indenture” means the Indenture dated as of September 24, 2007 by and among Borrower and Deutsche Bank Trust Company Americas, a New York banking corporation, as Trustee. 
 “3.875% Convertible Notes Documents” means the 3.875% Convertible Notes, the 3.875% Convertible Notes Indenture, and the agreements,
documents and instruments executed in connection therewith. 
 “Account” means an account (as that term is defined in the
Code). 
 “Account Charge Agreement” means a borrower charge respecting bank account numbers 029658300888 and 029658300030
at Deutsche Bank AG, London branch, in form and substance satisfactory to Agent. 
 “Account Debtor” means any Person who is
obligated on an Account, chattel paper, or a general intangible. 
 “ACH Transactions” means any cash management or related
services (including the Automated Clearing House processing of electronic fund transfers through the direct Federal Reserve Fedline system) provided by a Bank Product Provider for the account of Borrower or its Subsidiaries. 
 “Additional Documents” has the meaning specified therefor in Section 5.12 of the Agreement. 
 “Advances” has the meaning specified therefor in Section 2.1(a) of the Agreement. 
 “Affected Lender” has the meaning specified therefor in Section 2.13(b) of the Agreement. 
 “Affiliate” means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such
Person. For purposes of this definition, “control” means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of Stock, by
contract, or otherwise; provided, however, that, for purposes of the definitions of Eligible Accounts, Eligible Foreign Accounts, and Section 6.12 of the Agreement: (a) any Person which owns directly or 

 
indirectly 10% or more of the Stock having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or
more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person) shall be deemed an Affiliate of such Person, (b) each director (or comparable manager) of a Person shall be deemed to be an
Affiliate of such Person, and (c) each partnership in which a Person is a general partner shall be deemed an Affiliate of such Person. 
 “Agent” has the meaning specified therefor in the preamble to the Agreement. 
 “Agent-Related
Persons” means Agent, together with its Affiliates, officers, directors, employees, attorneys, and agents. 
 “Agent’s
Account” means the Deposit Account of Agent identified on Schedule A-1. 
 “Agent’s Liens” means the
Liens granted by Borrower or its Subsidiaries to Agent under the Loan Documents. 
 “Agreement” means the Credit Agreement
to which this Schedule 1.1 is attached. 
 “Alcatel” means Compagnie Financière Alcatel-Lucent, a company
organized under the laws of France and its Affiliates. 
 “Alcatel Percentage” means (a) during the period from the
Closing Date through and including June 30, 2009, 30%, (b) during the period from July 1, 2009 through and including September 30, 2009, 20%, (c) during the period from October 1, 2009 through and including
March 31, 2010, 15%, and (c) from and after April 1, 2010, 10%. 
 “Application Event” means the occurrence
of (a) a failure by Borrower to repay all of the Obligations on the Maturity Date, or (b) an Event of Default and the election by the Agent or the Required Lenders to require that payments and proceeds of Collateral be applied pursuant to
Section 2.4(b)(ii) of the Agreement. 
 “Approved Increase” has the meaning specified therefor in
Section 2.14(a) of the Agreement. 
 “Assignee” has the meaning specified therefor in
Section 13.1(a) of the Agreement. 
 “Assignment and Acceptance” means an Assignment and Acceptance Agreement
substantially in the form of Exhibit A-1. 
 “Authorized Person” means any one of the individuals identified on
Schedule A-2. 
 “Availability” means, as of any date of determination, the amount that Borrower is entitled to
borrow as Advances under Section 2.1 of the Agreement (after giving effect to all then outstanding Obligations (other than Bank Product Obligations)). 
 “Average Availability” means, with respect to any period, the sum of the aggregate amount of Availability for each Business Day in such period (calculated as of the end of each respective Business
Day) divided by the number of Business Days in such period. 
 “Bank Product” means any financial accommodation extended to
Borrower or its Subsidiaries by a Bank Product Provider (other than pursuant to the Agreement) including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions,

  

 2 

 
(f) cash management, including controlled disbursement, accounts or services, or (g) transactions under Hedge Agreements. 
 “Bank Product Agreements” means those agreements entered into from time to time by Borrower or its Subsidiaries with a Bank Product
Provider in connection with the obtaining of any of the Bank Products. 
 “Bank Product Collateralization” means providing
cash collateral (pursuant to documentation reasonably satisfactory to Agent) to be held by Agent for the benefit of the Bank Product Providers in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure with
respect to the then existing Bank Products. 
 “Bank Product Obligations” means (a) all obligations, liabilities,
reimbursement obligations, fees, or expenses owing by Borrower or its Subsidiaries to any Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising, and (b) all amounts that Borrower or its Subsidiaries are obligated to reimburse to Agent or any member of the Lender Group as a result of Agent or such member of
the Lender Group purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to Borrower or its
Subsidiaries. 
 “Bank Product Provider” means Wells Fargo or any of its Affiliates. 
 “Bank Product Reserve” means, as of any date of determination, the amount of reserves that Agent has established (based upon the Bank
Product Providers’ reasonable determination of the credit exposure of Borrower and its Subsidiaries in respect of Bank Products) in respect of Bank Products then provided or outstanding. 
 “Bankruptcy Code” means title 11 of the United States Code, as in effect from time to time. 
 “Base LIBOR Rate” means the greater of (a) 1.50 percent per annum, and (b) the rate per annum rate appearing on Bloomberg
L.P.’s (the “Service”) Page BBAM1/(Official BBA USD Dollar Libor Fixings) (or on any successor or substitute page of such Service, or any successor to or substitute for such Service) 2 Business Days prior to the commencement of
the requested Interest Period, for a term and in an amount comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a
Base Rate Loan to a LIBOR Rate Loan) by Borrower in accordance with the Agreement, which determination shall be conclusive in the absence of manifest error. 
 “Base Rate” means the greatest of (a) 3.25 percent per annum, (b) the
Federal Funds Rate plus  1/2%, (c) the rate of interest announced, from time to time, within Wells Fargo at its principal
office in San Francisco as its “prime rate”, with the understanding that the “prime rate” is one of Wells Fargo’s base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of
interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate, and (d) the Base LIBOR Rate (for an interest period of
1 month, which shall be determined on a daily basis). 
 “Base Rate Loan” means the portion of the Advances that
bears interest at a rate determined by reference to the Base Rate. 
  

 3 

 “Benefit Plan” means a “defined benefit plan” (as defined in
Section 3(35) of ERISA) for which Borrower or any of its Subsidiaries or ERISA Affiliates has been an “employer” (as defined in Section 3(5) of ERISA) within the past six years. 
 “Board of Directors” means the board of directors (or comparable managers) of Borrower or any committee thereof duly authorized to act
on behalf of the board of directors (or comparable managers). 
 “Borrower” has the meaning specified therefor in the
preamble to the Agreement. 
 “Borrowing” means a borrowing hereunder consisting of Advances made on the same day by the
Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in the case of a Protective Advance. 
 “Borrowing Base” means, as of any date of determination, the result of: 
 (a) the lesser of  
 (i) (A) 85% of the amount of Eligible Accounts, plus (B) 85% of the amount of Eligible Foreign Accounts, less (C) the
amount, if any, of the Dilution Reserve, and 
 (ii) an amount equal to Borrower’s Collections with respect to Accounts for the
immediately preceding 90 day period, minus 
 (b) the sum of (i) the Bank Product Reserve, and (ii) the aggregate amount of
reserves, if any, established by Agent under Section 2.1(c) of the Agreement. 
 “Borrowing Base Certificate”
means a certificate in the form of Exhibit B-1. 
 “Business Day” means any day that is not a Saturday, Sunday, or
other day on which banks are authorized or required to close in the state of California, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day” also shall exclude any day on which banks
are closed for dealings in Dollar deposits in the London interbank market. 
 “Capital Expenditures” means, with respect to
any Person for any period, the aggregate of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed.

 “Capitalized Lease Obligation” means that portion of the obligations under a Capital Lease that is required to be
capitalized in accordance with GAAP. 
 “Capital Lease” means a lease that is required to be capitalized for financial
reporting purposes in accordance with GAAP. 
 “Cash Equivalents” means (a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within 1 year from the date of acquisition thereof, (b) marketable direct
obligations issued or fully guaranteed by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within 1 year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc. (“Moody’s”), (c) commercial paper maturing no
more than 270 days 

  

 4 

 
from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody’s,
(d) certificates of deposit, time deposits, overnight bank deposits or bankers’ acceptances maturing within 1 year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof
or the District of Columbia or any United States branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000, (e) Deposit Accounts maintained with (i) any bank that
satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so long as the amount maintained with any such other bank is less than or equal to $100,000 and
is insured by the Federal Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of clause (d) of this definition or recognized securities dealer having combined capital and surplus of
not less than $250,000,000, having a term of not more than seven days, with respect to securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from the date of
acquisition backed by standby letters of credit issued by any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of
assets described in clauses (a) through (g) above. 
 “CFC” means a controlled foreign corporation (as that term
is defined in the IRC). 
 “Change of Control” means that: 
 (a) any “person” or “group” (within the meaning of Sections 13(d) and 14(d) of the Exchange Act), becomes the beneficial owner (as
defined in Rule 13(d)-3 under the Exchange Act), directly or indirectly, of 40%, or more, of the Stock of Borrower having the right to vote for the election of members of the Board of Directors, 
 (b) a majority of the members of the Board of Directors do not constitute Continuing Directors, 
 (c) a “Change in Control” (as defined in the 1.875% Convertible Notes Indenture) occurs, or 
 (d) a “Change in Control” (as defined in the 3.875% Convertible Notes Indenture) occurs. 
 “Closing Date” means the date of the making of the initial Advance (or other extension of credit) hereunder. 
 “Code” means the California Uniform Commercial Code, as in effect from time to time. 
 “Collateral” means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by Borrower or its
Subsidiaries in or upon which a Lien is granted by such Person in favor of Agent or the Lenders under any of the Loan Documents. 
 “Collateral Access Agreement” means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or
interests in Borrower’s or its Subsidiaries’ books and records, Equipment, or Inventory, in each case, in form and substance reasonably satisfactory to Agent. 
 “Collections” means all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, cash proceeds of asset sales, rental proceeds, and tax refunds). 

 

 5 

 “Commitment” means, with respect to each Lender, its Commitment, and, with respect to
all Lenders, their Commitments, in each case as such Dollar amounts are set forth beside such Lender’s name under the applicable heading on Schedule C-1 or in the Assignment and Acceptance pursuant to which such Lender became a Lender
hereunder, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1 of the Agreement. 
 “Compliance Certificate” means a certificate substantially in the form of Exhibit C-1 delivered by the chief financial officer of
Borrower to Agent. 
 “Continuing Director” means (a) any member of the Board of Directors who was a director (or
comparable manager) of Parent on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed or nominated for election to the Board of Directors by
either the Permitted Holders or a majority of the Continuing Directors, but excluding any such individual originally proposed for election in opposition to the Board of Directors in office at the Closing Date in an actual or threatened election
contest relating to the election of the directors (or comparable managers) of Parent and whose initial assumption of office resulted from such contest or the settlement thereof. 
 “Control Agreement” means a control agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by
Borrower or one of its Subsidiaries, Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account). 
 “Controlled Account Agreement” has the meaning specified therefor in the Security Agreement. 
 “Convertible Notes Documents” means the 1.875% Convertible Notes Documents and the 3.875% Convertible Notes Documents. 
 “Convertible Notes Redemption” means the optional redemption of the 1.875% Convertible Notes or the 3.875% Convertible Notes by Borrower so long as: (a) such redemption is permitted by applicable law and the 1.875%
Convertible Notes Indenture or the 3.875% Convertible Notes Indenture (as applicable), (b) no Default or Event of Default shall have occurred and be continuing or would result therefrom, and (c) Availability both before and immediately
after giving effect thereto is greater than $20,000,000. 
 “Copyright Security Agreement” has the meaning specified
therefor in the Security Agreement. 
 “Daily Balance” means, as of any date of determination and with respect to any
Obligation, the amount of such Obligation owed at the end of such day. 
 “Default” means an event, condition, or default
that, with the giving of notice, the passage of time, or both, would be an Event of Default. 
 “Defaulting Lender” means
any Lender that fails to make any Advance (or other extension of credit) that it is required to make hereunder on the date that it is required to do so hereunder. 
 “Defaulting Lender Rate” means (a) for the first 3 days from and after the date the relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to Advances
that are Base Rate Loans (inclusive of the Margin applicable thereto). 
  

 6 

 “Deposit Account” means any deposit account (as that term is defined in the Code).

 “Designated Account” means the Deposit Account of Borrower identified on Schedule D-1. 
 “Designated Account Bank” has the meaning specified therefor in Schedule D-1. 
 “Designated Senior Indebtedness” has the meaning specified therefor in the 1.875% Convertible Notes Indenture and the meaning specified
therefor 3.875% Convertible Notes Indenture. 
 “Dilution” means, as of any date of determination, a percentage, based upon
the experience of the immediately prior 90 consecutive days, that is the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to Borrower’s
Accounts during such period, by (b) Borrower’s billings with respect to Accounts during such period. 
 “Dilution
Reserve” means, as of any date of determination, an amount sufficient to reduce the advance rate against Eligible Accounts and Eligible Foreign Accounts by 1 percentage point for each percentage point by which Dilution is in excess of 5%.

 “Dollars” or “$” means United States dollars. 
 “Domestic Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all outstanding Underlying
Letters of Credit that are payable in Dollars. 
 “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. 

“Eligible Accounts” means those Accounts (other than Eligible Foreign Accounts) created by Borrower in the ordinary course of its
business, that arise out of Borrower’s sale of goods or rendition of services, that comply with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by
virtue of one or more of the excluding criteria set forth below; provided, however, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any audit performed by
Agent from time to time after the Closing Date; provided further that Agent will endeavor to give prompt notice of any revisions to such criteria made by Agent, but Agent’s failure to give such notice will not impact the revisions
to such criteria. In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Accounts shall not include the following: 
 (a) Accounts that (i) the Account Debtor has failed to pay within 120 days of original invoice date, (iii) have selling terms of more than 90
days, or (iii) are past due by more than (A) 60 days with respect to Accounts with selling terms of 60 days or less, or (B) 30 days with respect to Accounts with selling terms of more than 60 days, 
  

 7 

 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that
Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above, 
 (c) Accounts with respect to which the Account
Debtor is an Affiliate of Borrower or an employee or agent of Borrower or any Affiliate of Borrower, 
 (d) Accounts arising in a transaction
wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, 
 (e) Accounts that are not payable in Dollars or Euros, 
 (f) Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States, (ii) is not organized under the laws of the United States or any state
thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof,
unless (y) the Account is supported by an irrevocable letter of credit reasonably satisfactory to Agent (as to form, substance, and issuer or domestic confirming bank) that has been delivered to Agent and is directly drawable by Agent, or
(z) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, reasonably satisfactory to Agent, 
 (g) Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which Borrower has complied, to
the reasonable satisfaction of Agent, with the Assignment of Claims Act, 31 USC §3727), or (ii) any state of the United States, 
 (h) Accounts with respect to which (i) the Account Debtor (or its Affiliates) is a creditor of Borrower, (ii) the Account Debtor (or its Affiliates) has or has asserted a right of setoff, (iii) Borrower or one of its
Subsidiaries has agreed that the Account Debtor (or its Affiliates) has a right of setoff, or (iv) the Account Debtor (or its Affiliates) has disputed its obligation to pay all or any portion of the Account, in each case, to the extent of such
claim, right of setoff, or dispute (as applicable), 
 (i) Accounts with respect to an Account Debtor (other than Nokia, Alcatel, or
Ericsson) and its Affiliates whose total obligations owing to Borrower exceed 10% (such percentage, as applied to a particular Account Debtor and its Affiliates, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness
of such Account Debtor or its Affiliates deteriorates) of the obligations in respect of all Eligible Accounts and Eligible Foreign Accounts, to the extent of the obligations owing by such Account Debtor and its Affiliates in excess of such
percentage; provided, however, that, in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise Eligible Accounts and Eligible
Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (j) Accounts with respect to
Nokia to the extent that the obligations owing by Nokia exceed 40% (such percentage, as applied to Nokia, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of Nokia deteriorates) of the obligations in respect of
all Eligible Accounts and Eligible Foreign Accounts; provided, however, that the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise
Eligible Accounts and Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
  

 8 

 (k) Accounts with respect to Alcatel to the extent that the obligations owing by Alcatel exceed the
Alcatel Percentage (such percentage, as applied to Alcatel, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of Alcatel deteriorates) of the obligations in respect of all Eligible Accounts and Eligible Foreign
Accounts; provided, however, that the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise Eligible Accounts and Eligible Foreign Accounts
prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (l) Accounts with respect to Ericsson to the
extent that the obligations owing by Ericsson exceed 20% (such percentage, as applied to Ericsson, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of Ericsson deteriorates) of the obligations in respect of all
Eligible Accounts and Eligible Foreign Accounts; provided, however, that the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise Eligible
Accounts and Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (m)
Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the
financial condition of such Account Debtor, 
 (n) Accounts, the collection of which, Agent, in its Permitted Discretion, believes to be
doubtful by reason of the Account Debtor’s financial condition, 
 (o) Accounts that are not subject to a valid and perfected first
priority Agent’s Lien, 
 (p) Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and
billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, 
 (q) Accounts with respect to which the Account Debtor (or its Affiliates) is a Sanctioned Person or Sanctioned Entity, or 
 (r)
Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by Borrower of the subject contract for goods or services. 
 “Eligible Foreign Account Debtors” means (a) Alcatel, (b) Nokia, so long as it or its parent company is rated at
‘BBB’ or higher by S&P or Moody’s, (c) Ericsson, so long as it or its parent company is rated at ‘BBB’ or higher by S&P or Moody’s, and (d) those Account Debtors listed on Schedule F-1 attached
hereto. 
 “Eligible Foreign Accounts” means those Accounts (other than Eligible Accounts) created by Borrower in the
ordinary course of its business, that comply with each of the representations and warranties respecting Eligible Foreign Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria
set forth below; provided, however, that such criteria may be revised from time to time by Agent in Agent’s Permitted Discretion to address the results of any audit performed by Agent from time to time after the Closing Date;
provided further that Agent will endeavor to give prompt notice of any revisions to such criteria made by Agent, but Agent’s failure to give such notice will not impact the revisions to such criteria. In determining the amount to
be included, Eligible Foreign Accounts shall be calculated net of customer deposits and unapplied cash. Eligible Foreign Accounts shall not include the following: 
  

 9 

 (a) Accounts that (i) the Account Debtor has failed to pay within 120 days of original invoice date,
(iii) have selling terms of more than 90 days, or (iii) are past due by more than (i) 60 days with respect to Accounts with selling terms of 60 days or less, or (ii) 30 days with respect to Accounts with selling terms of more
than 60 days, 
 (b) Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or
its Affiliates) are deemed ineligible under clause (a) above, 
 (c) Accounts with respect to which the Account Debtor is not an Eligible
Foreign Account Debtor, 
 (d) Accounts with respect to which the Account Debtor is an Affiliate of Borrower or an employee or agent of
Borrower or any Affiliate of Borrower, 
 (e) Accounts arising in a transaction wherein goods are placed on consignment or are sold pursuant
to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, 
 (f) Accounts that are not payable in Dollars, Euros or Pounds, 
 (g) Accounts with respect to which the
Account Debtor is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof,

 (h) Accounts with respect to which (i) the Account Debtor (or its Affiliates) is a creditor of Borrower, (ii) the Account Debtor
(or its Affiliates) has or has asserted a right of setoff, (iii) Borrower or one of its Subsidiaries has agreed that the Account Debtor (or its Affiliates) has a right of setoff, or (iv) the Account Debtor (or its Affiliates) has disputed
its obligation to pay all or any portion of the Account, in each case, to the extent of such claim, right of setoff, or dispute (as applicable), 
 (i) Accounts with respect to an Account Debtor (other than Nokia, Alcatel, or Ericsson) and its Affiliates whose total obligations owing to Borrower exceed 10% (such percentage, as applied to a particular Account Debtor and its Affiliates,
being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of such Account Debtor or its Affiliates deteriorates) of the obligations in respect of all Eligible Accounts and Eligible Foreign Accounts, to the extent of the
obligations owing by such Account Debtor and its Affiliates in excess of such percentage; provided, however, that, in each case, the amount of Eligible Foreign Accounts that are excluded because they exceed the foregoing percentage
shall be determined by Agent based on all of the otherwise Eligible Accounts and Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (j) Accounts with respect to Nokia to the extent that the obligations owing by Nokia exceed 40% (such percentage, as applied to Nokia, being subject to
reduction by Agent in its Permitted Discretion if the creditworthiness of Nokia deteriorates) of the obligations in respect of all Eligible Accounts and Eligible Foreign Accounts; provided, however, that the amount of Eligible Foreign
Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise Eligible Accounts and Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing
concentration limit, 
 (k) Accounts with respect to Alcatel to the extent that the obligations owing by Alcatel exceed the Alcatel
Percentage (such percentage, as applied to Alcatel, being subject to 

  

 10 

 
reduction by Agent in its Permitted Discretion if the creditworthiness of Alcatel deteriorates) of the obligations in respect of all Eligible Accounts and
Eligible Foreign Accounts; provided, however, that the amount of Eligible Foreign Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent based on all of the otherwise Eligible Accounts and
Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (l) Accounts with
respect to Ericsson to the extent that the obligations owing by Ericsson exceed 20% (such percentage, as applied to Ericsson, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of Ericsson deteriorates) of the
obligations in respect of all Eligible Accounts and Eligible Foreign Accounts; provided, however, that the amount of Eligible Foreign Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent
based on all of the otherwise Eligible Accounts and Eligible Foreign Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit, 
 (m) Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding, is not Solvent, has gone out of business, or as to which Borrower has received notice of an imminent Insolvency Proceeding
or a material impairment of the financial condition of such Account Debtor, 
 (n) Accounts, the collection of which, Agent, in its Permitted
Discretion, believes to be doubtful by reason of the Account Debtor’s financial condition, 
 (o) Accounts that are not lawfully owned
by Borrower or that are not subject to a valid and perfected first priority Agent’s Lien, 
 (p) Accounts with respect to which
(i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor, 
 (q) Accounts with respect to which the Account Debtor (or its Affiliates) is a Sanctioned Person or Sanctioned Entity, or 
 (r) Accounts that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by
Borrower of the subject contract for goods or services. 
 “Environmental Action” means any written complaint, summons,
citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter, or other written communication from any Governmental Authority, or any third party involving violations of Environmental
Laws or releases of Hazardous Materials from (a) any assets, properties, or businesses of any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from
or onto any facilities which received Hazardous Materials generated by any Borrower, any Subsidiary of a Borrower, or any of their predecessors in interest. 
 “Environmental Law” means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline, binding and enforceable
written policy, or rule of common law now or hereafter in effect and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the
extent binding on Borrower or its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time. 
  

 11 

 “Environmental Liabilities” means all liabilities, monetary obligations, losses,
damages, punitive damages, consequential damages, treble damages, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts, or consultants, and costs of investigation and feasibility studies), fines,
penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or any third party, and which relate to any Environmental Action. 
 “Environmental Lien” means any Lien in favor of any Governmental Authority for Environmental Liabilities. 
 “Equipment” means equipment (as that term is defined in the Code). 
 “Ericsson” means Ericsson AB, a limited liability company organized under the laws of Sweden and its Affiliates. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto. 
 “ERISA Affiliate” means (a) any Person subject to ERISA whose employees are treated as employed by the same employer as the
employees of Borrower or its Subsidiaries under IRC Section 414(b), (b) any trade or business subject to ERISA whose employees are treated as employed by the same employer as the employees of Borrower or its Subsidiaries under IRC
Section 414(c), (c) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any organization subject to ERISA that is a member of an affiliated service group of which Borrower or any of its Subsidiaries is a
member under IRC Section 414(m), or (d) solely for purposes of Section 302 of ERISA and Section 412 of the IRC, any Person subject to ERISA that is a party to an arrangement with Borrower or any of its Subsidiaries and whose
employees are aggregated with the employees of Borrower or its Subsidiaries under IRC Section 414(o). 
 “Euro” means
the euro referred to in Council Regulation (EC) No. 1103/97 dated June 17, 1997, passed by the Council of the European Union, or, if different, the then lawful currency of the member states of the European Union that participate in the
third stage of Economic and Monetary Union. 
 “Event of Default” has the meaning specified therefor in
Section 8 of the Agreement. 
 “Excess Availability” means, as of any date of determination, the amount equal to
Availability minus the aggregate amount, if any, of all trade payables of Borrower and its Subsidiaries aged in excess of historical levels with respect thereto and all book overdrafts of Borrower and its Subsidiaries in excess of historical
practices with respect thereto, in each case as determined by Agent in its Permitted Discretion. 
 “Exchange Rate” means
the nominal rate of exchange (vis-à-vis any currency other than Dollars) for Dollars announced from time to time, within Wells Fargo at its principal office in San Francisco, expressed as the number of Dollars for each unit of such other
currency. 
 “Excess Real Property” means Borrower’s or its Subsidiaries’ (a) facilities owned in fee and
located at 1801 East Street, Andrew Place, Santa Ana, CA, 31901 Comtek Lane, Salisbury, MD, and Takatie 6, 90440, Kempele, Finland, and (ii) real property owned in fee and located at #5 West Road, Special Export Processing Zone, Light Industry
and Science Park, Cabuyao, Laguna, Philippines, and 14 and 16 Ampere Street, SEP2, Light Industry and Science Park of the Philippines I, Cabuyao, Laguna, Philippines. 
  

 12 

 “Excess Real Property Event of Default” means an Event of Default under
Section 8.1, 8.2(a) (with respect to Borrower’s or its Subsidiaries’ failure to comply with Section 5.1, 5.2, 5.3, or 5.6, any of Sections 6.1 – 6.17, or
Section 7 of the Agreement), 8.4, 8.5, 8.6, 8.10, or 8.11. 
 “Exchange Act”
means the Securities Exchange Act of 1934, as in effect from time to time. 
 “Existing Lender” means Deutsche Bank AG, New
York branch. 
 “Fee Letter” means that certain fee letter between Borrower and Agent, in form and substance reasonably
satisfactory to Agent. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal to, for
each day during such period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by
it. 
 “Financial Covenant Period” means a period which shall commence on any date (the “Commencement
Date”) on which Availability is less than $20,000,000 and shall continue until the later of: 
 (a) the date that is the last day of
the second full fiscal quarter after the Commencement Date, and 
 (b) the last day of the fiscal quarter in which Average Availability for a
period of 90 consecutive days after the Commencement Date is greater than or equal to $20,000,000. 
 “Flow of Funds
Agreement” means a flow of funds agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by Borrower and Agent. 
 “Foreign Lender” shall mean any Lender or Participant that is not a United States person within the meaning of IRC section 7701(a)(30). 
 “Foreign Letter of Credit Usage” means, as of any date of determination, the aggregate undrawn amount of all outstanding Underlying
Letters of Credit that are payable in a currency other than Dollars, calculated as if such Underlying Letters of Credit are payable in Dollars based on the Exchange Rate as of such date of determination. 
 “Funding Date” means the date on which a Borrowing occurs. 
 “Funding Losses” has the meaning specified therefor in Section 2.12(b)(ii) of the Agreement. 
 “GAAP” means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

 “Governing Documents” means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other
organizational documents of such Person. 
 “Governmental Authority” means any federal, state, local, or other governmental
or administrative body, instrumentality, board, department, or agency or any court, tribunal, 

  

 13 

 
administrative hearing body, arbitration panel, commission, or other similar dispute-resolving panel or body. 
 “Hazardous Materials” means (a) substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws
or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity”, (b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids,
produced waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources, (c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in
any form or electrical equipment that contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million. 
 “Hedge Agreement” means any and all agreements or documents now existing or hereafter entered into by Borrower or any of its Subsidiaries that provide for an interest rate, credit, commodity or equity
swap, cap, floor, collar, forward foreign exchange transaction, currency swap, cross currency rate swap, currency option, or any combination of, or option with respect to, these or similar transactions, for the purpose of hedging Borrower’s or
any of its Subsidiaries’ exposure to fluctuations in interest or exchange rates, loan, credit exchange, security, or currency valuations or commodity prices. 
 “Holdout Lender” has the meaning specified therefor in Section 14.2(a) of the Agreement. 
 “Hong Kong Deposit Account” means Borrower’s Deposit Account with account number 605583417019 maintained with Bank of America in Hong Kong. 
 “Inactive Subsidiaries” means Powerwave Asia, Inc., a Delaware corporation and Powerwave Europe, Inc., a Delaware corporation.

 “Increase Effective Date” has the meaning specified therefor in Section 2.14(a) of the Agreement. 

“Increase Joinder” has the meaning specified therefor in Section 2.14(b) of the Agreement. 
 “Indebtedness” means (a) all obligations for borrowed money, (b) all obligations evidenced by bonds, debentures, notes, or
other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all obligations as a lessee under Capital Leases, (d) all obligations or
liabilities of others secured by a Lien on any asset of a Person or its Subsidiaries, irrespective of whether such obligation or liability is assumed, (e) all obligations to pay the deferred purchase price of assets (other than trade payables
incurred in the ordinary course of business and repayable in accordance with customary trade practices), (f) all obligations owing under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person
if the Hedge Agreement were terminated on the date of determination), and (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation
of any other Person that constitutes Indebtedness under any of clauses (a) through (f) above. For purposes of this definition, (i) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the
lesser of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (ii) the amount
of any Indebtedness 

  

 14 

 
described in clause (d) above shall be the lower of the amount of the obligation and the fair market value of the assets securing such obligation.

 “Indemnified Liabilities” has the meaning specified therefor in Section 10.3 of the Agreement. 
 “Indemnified Person” has the meaning specified therefor in Section 10.3 of the Agreement. 
 “Insolvency Proceeding” means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any
other state, federal or foreign bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other
similar relief. 
 “Interest Period” means, with respect to each LIBOR Rate Loan, a period commencing on the date of the
making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3 months thereafter; provided, however, that (a) if any Interest Period would
end on a day that is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate from and
including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day
unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 2, or 3 months after the date on which the
Interest Period began, as applicable, and (e) Borrower may not elect an Interest Period which will end after the Maturity Date. 
 “Inventory” means inventory (as that term is defined in the Code). 
 “Investment” means, with
respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees
of such Person made in the ordinary course of business, and (b) bona fide Accounts arising in the ordinary course of business consistent with past practice), or acquisitions of Indebtedness, Stock, or all or substantially all of the
assets of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. 
 “IRC” means the Internal Revenue Code of 1986, as in effect from time to time. 
 “Issuing Lender” means WFF or any other Lender that, at the request of Borrower and with the consent of Agent, agrees, in such
Lender’s sole discretion, to become an Issuing Lender for the purpose of issuing L/Cs or L/C Undertakings pursuant to Section 2.11 of the Agreement. 
 “L/C” has the meaning specified therefor in Section 2.11(a) of the Agreement. 
 “L/C Disbursement” means a payment made by the Issuing Lender pursuant to a Letter of Credit. 
  

 15 

 “L/C Undertaking” has the meaning specified therefor in Section 2.11(a) of
the Agreement. 
 “Lender” and “Lenders” have the respective meanings set forth in the preamble to the
Agreement, and shall include any other Person made a party to the Agreement in accordance with the provisions of Section 13.1 of the Agreement. 
 “Lender Group” means, individually and collectively, each of the Lenders (including the Issuing Lender) and Agent. 
 “Lender Group Expenses” means all (a) costs or expenses (including taxes, and insurance premiums) required to be paid by Borrower or its Subsidiaries under any of the Loan Documents that are
paid, advanced, or incurred by the Lender Group, (b) out-of-pocket fees or charges paid or incurred by Agent in connection with the Lender Group’s transactions with Borrower or its Subsidiaries under any of the Loan Documents, including,
fees or charges for photocopying, notarization, couriers and messengers, telecommunication, public record searches (including tax lien, litigation, and UCC searches and including searches with the patent and trademark office, the copyright office,
or the department of motor vehicles), filing, recording, publication, appraisal (including periodic collateral appraisals or business valuations to the extent of the fees and charges (and up to the amount of any limitation) contained in the
Agreement or the Fee Letter), real estate surveys, real estate title policies and endorsements, and environmental audits, (c) out-of-pocket costs and expenses incurred by Agent in the disbursement of funds to Borrowers or other members of the
Lender Group (by wire transfer or otherwise), (d) out-of-pocket charges paid or incurred by Agent resulting from the dishonor of checks payable by or to Borrower, (e) reasonable out-of-pocket costs and expenses paid or incurred by the
Lender Group to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or
advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (f) reasonable out-of-pocket audit fees and expenses (including travel, meals, and lodging) of Agent related to any inspections or audits
to the extent of the fees and charges (and up to the amount of any limitation) contained in the Agreement or the Fee Letter, (g) reasonable out-of-pocket costs and expenses of third party claims or any other suit paid or incurred by the Lender
Group in enforcing or defending the Loan Documents or in connection with the transactions contemplated by the Loan Documents or the Lender Group’s relationship with Borrower or any of its Subsidiaries, (h) Agent’s reasonable costs and
expenses (including reasonable attorneys fees) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating, or amending the Loan Documents, and (i) Agent’s and each
Lender’s reasonable costs and expenses (including reasonable attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees
and expenses incurred in connection with a “workout,” a “restructuring,” or an Insolvency Proceeding concerning Borrower or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the
Loan Documents, irrespective of whether suit is brought, or in taking any Remedial Action concerning the Collateral. 
 “Lender-Related Person” means, with respect to any Lender, such Lender, together with such Lender’s Affiliates, officers, directors, employees, attorneys, and agents. 
 “Letter of Credit” means an L/C or an L/C Undertaking, as the context requires. 
 “Letter of Credit Collateralization” means either (a) providing cash collateral (pursuant to documentation reasonably satisfactory
to Agent, including provisions that specify that the Letter of Credit fee set forth in the Agreement will continue to accrue while the Letters of Credit are outstanding) to be held by Agent for the benefit of those Lenders with a Commitment in an
amount 

  

 16 

 
equal to the sum of 105% of the then existing Domestic Letter of Credit Usage plus 115% of the then existing Foreign Letter of Credit Usage, (b) causing
the Underlying Letters of Credit to be returned to the Issuing Lender, or (c) providing Agent with a standby letter of credit, in form and substance reasonably satisfactory to Agent, from a commercial bank acceptable to the Agent (in its sole
discretion) in an equal to the sum of 105% of the then existing Domestic Letter of Credit Usage plus 115% of the then existing Foreign Letter of Credit Usage (it being understood that the Letter of Credit fee set forth in the Agreement will continue
to accrue while the Letters of Credit are outstanding and that any such fee that accrues must be an amount that can be drawn under any such standby letter of credit). 
 “Letter of Credit Usage” means, as of any date of determination, the sum of the Domestic Letter of Credit Usage and the Foreign Letter of Credit Usage. 
 “LIBOR Deadline” has the meaning specified therefor in Section 2.12(b)(i) of the Agreement. 
 “LIBOR Notice” means a written notice in the form of Exhibit L-1. 
 “LIBOR Option” has the meaning specified therefor in Section 2.12(a) of the Agreement. 
 “LIBOR Rate” means, for each Interest Period for each LIBOR Rate Loan, the rate per annum determined by Agent by dividing
(a) the Base0 LIBOR Rate for such Interest Period, by (b) 100% minus the Reserve Percentage. The LIBOR Rate shall be adjusted on and as of the effective day of any change in the Reserve Percentage. 
 “LIBOR Rate Loan” means each portion of an Advance that bears interest at a rate determined by reference to the LIBOR Rate. 

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement of any kind or nature whatsoever, including any conditional sale contract or other title retention agreement, the
interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing. 
 “Loan Account” has the meaning specified therefor in Section 2.9 of the Agreement. 
 “Loan Documents” means the Agreement, the Account Charge Agreement, the Bank Product Agreements, any Borrowing Base Certificate, the Controlled Account Agreements, the Control Agreements, the Copyright Security Agreement,
the Fee Letter, the Flow of Funds Agreement, any Guaranty, any Intercompany Subordination Agreement, the Letters of Credit, the Mortgages, the Patent Security Agreement, the Security Agreement, the Trademark Security Agreement, any note or notes
executed by Borrower in connection with the Agreement and payable to a member of the Lender Group, and any other agreement entered into, now or in the future, by Borrower or any of its Subsidiaries and the Lender Group in connection with the
Agreement. 
 “Margin” means, as of any date of determination, the applicable margin set forth in the following table that
corresponds to the Average Availability of Borrower for the most recent fiscal quarter as calculated by Agent; provided, however, that for the period from the Closing Date through and including June 30, 2009, the Margin shall be
set at the margin in the row styled “Level I”; provided, further, however, that any time an Event of Default has occurred and is continuing, the Margin shall be set at the margin in the row styled “Level
III”: 
  

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	 Level
	  	 Average Availability
	  	 Margin

	 I
	  	> $33,335,000	  	3.50 percentage points
			
	 II
	  	< $33,335,000 but > $16,665,000	  	3.75 percentage points
			
	 III
	  	< $16,665,000	  	4.00 percentage points

 The Margin shall be calculated as of the end of each fiscal quarter and, except as set forth in
the foregoing provisos, shall be re-determined quarterly on the first day of each quarter. 
 “Margin Stock” as defined in
Regulation U of the Board of Governors of the Federal Reserve System as in effect from time to time. 
 “Material Adverse
Change” means (a) a material adverse change in the business, prospects, operations, results of operations, assets, liabilities or condition (financial or otherwise) of Borrower and its Subsidiaries, taken as a whole, (b) a
material impairment of Borrower’s and its Subsidiaries ability to perform their obligations under the Loan Documents to which they are parties or of the Lender Group’s ability to enforce the Obligations or realize upon the Collateral, or
(c) a material impairment of the enforceability or priority of the Agent’s Liens with respect to the Collateral as a result of an action or failure to act on the part of Borrower or its Subsidiaries. 
 “Material Contract” means, with respect to any Person, any contract or agreement of the type described in Item 601(b)(10) of
Regulation S-K of the Securities Act (regardless of whether or not such Item is applicable to such Person). 
 “Maturity
Date” means August 15, 2011. 
 “Maximum Revolver Amount” means $50,000,000, increased by the amount of
increases in the commitments made in accordance with Section 2.14 of the Agreement, and decreased by the amount of reductions in the Commitments made in accordance with Section 2.4(c) of the Agreement. 
 “Moody’s” has the meaning specified therefor in the definition of Cash Equivalents. 
 “Mortgage Policy” has the meaning specified therefor in Schedule 3.1(v). 
 “Mortgages” means, individually and collectively, one or more mortgages, deeds of trust, or deeds to secure debt, executed and delivered
by Borrower or its Subsidiaries in favor of Agent, in form and substance reasonably satisfactory to Agent, that encumber the Real Property Collateral. 
 “Nokia” means Nokia Siemens Network, a company organized under the laws of Finland and its Affiliates. 
 “Obligations” means (a) all loans, Advances, debts, principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or
allowable in whole or in part as a claim in any such Insolvency Proceeding), contingent reimbursement obligations with respect to outstanding Letters of Credit, premiums, liabilities (including all amounts charged to the Loan Account pursuant to the
Agreement), obligations (including indemnification obligations), fees (including the fees provided for in the Fee Letter), Lender Group Expenses (including any fees or expenses that accrue after the commencement of an 

  

 18 

 
Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties, covenants,
and duties of any kind and description owing by Borrower to the Lender Group pursuant to or evidenced by the Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that Borrower is required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan
Documents, and (b) all Bank Product Obligations. Any reference in the Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior
and subsequent to any Insolvency Proceeding. 
 “OFAC” means The Office of Foreign Assets Control of the U.S. Department of
the Treasury. 
 “Originating Lender” has the meaning specified therefor in Section 13.1(e) of the Agreement.

 “Overadvance” has the meaning specified therefor in Section 2.5 of the Agreement. 
 “Participant” has the meaning specified therefor in Section 13.1(e) of the Agreement. 
 “Patent Security Agreement” has the meaning specified therefor in the Security Agreement. 
 “Patriot Act” has the meaning specified therefor in Section 4.18 of the Agreement. 
 “Payoff Date” means the first date on which all of the Obligations are paid in full and the Commitments of the Lenders are terminated.

 “Permitted Convertible Notes Refinancing” means a refinancing of the Indebtedness in respect of the 1.875% Convertible
Notes or the 3.875% Convertible Notes (including Indebtedness incurred by Borrower for purposes of such refinancing, whether by the same or a different group of lenders or purchasers) so long as: 
 (a) the terms and conditions of such refinancing do not, in Agent’s reasonable judgment, materially impair the prospects of repayment of the
Obligations by Borrower or materially impair Borrower’s creditworthiness, 
 (b) such refinancing does not result in an increase in the
principal amount of the Indebtedness so refinanced, renewed, or extended, 
 (c) the refinancing Indebtedness does not mature, or contain any
provision permitting the holders thereof to require the redemption, repurchase or prepayment thereof, prior to (i) with respect to a refinancing of the Indebtedness in respect of the 1.875% Convertible Notes, November 15, 2011, or
(ii) with respect to a refinancing of in respect of the 3.875% Convertible Notes, May 15, 2012, 
 (e) the terms and conditions of
the refinancing must be subordinated in right of payment to the Obligations on terms and conditions reasonably satisfactory to Agent, and 
 (f) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced,
renewed, or extended. 
  

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 “Permitted Discretion” means a determination made in the exercise of reasonable (from
the perspective of a secured lender) business judgment. 
 “Permitted Dispositions” means: 
 (a) sales, abandonment, or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of business,

 (b) sales of Inventory to buyers in the ordinary course of business, 
 (c) the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of the Agreement or the other Loan Documents,

 (d) the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary
course of business, 
 (e) the licensing, on an exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights
by Borrower’s Subsidiaries to Borrower in the ordinary course of business, 
 (f) the granting of Permitted Liens, 
 (f) the sale or discount, in each case without recourse, of Accounts arising in the ordinary course of business, but only in connection with the
compromise or collection thereof, 
 (g) any involuntary loss, damage or destruction of property, 
 (h) any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or requisition of use of
property, 
 (i) the leasing or subleasing of assets of Borrower or its Subsidiaries in the ordinary course of business, 
 (j) the sale or issuance of Stock (other than Prohibited Preferred Stock) of Borrower, 
 (k) the lapse of registered patents, trademarks and other intellectual property of Borrower and its Subsidiaries to the extent not economically desirable
in the conduct of their business and so long as such lapse is not materially adverse to the interests of the Lenders, 
 (l) so long as
either (i) no Excess Real Property Event of Default has occurred and is continuing or would result therefrom, or (ii) if an Excess Real Property Event of Default has occurred and is continuing or would result therefrom, Revolver Usage is
zero both immediately before and immediately after giving effect thereto, the sale or disposition of any of the Excess Real Property; and 
 (m) dispositions of assets (other than Accounts, intellectual property, licenses, Stock of Subsidiaries of Borrower, or Material Contracts) not otherwise permitted in clauses (a) through (l) above so long as made at
fair market value and the aggregate fair market value of all assets disposed of in all such dispositions since the Closing Date (including the proposed disposition) would not exceed $1,000,000. 
 “Permitted Indebtedness” means: 
 (a) Indebtedness evidenced by this Agreement and the other Loan Documents, together with Indebtedness owed to Underlying Issuers with respect to Underlying Letters of Credit, 
  

 20 

 (b) Indebtedness set forth on Schedule 4.19 and any Refinancing Indebtedness in respect of such
Indebtedness (other than Indebtedness in respect of the 1.875% Convertible Notes and the 3.875% Convertible Notes, which are covered in clauses (l) and (m) below), 
 (c) Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such Indebtedness, 
 (d) endorsement of instruments or other payment items for deposit, 
 (e) Indebtedness consisting of (i) unsecured guarantees incurred in the ordinary course of business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal bonds, completion guarantee and
similar obligations; (ii) unsecured guarantees arising with respect to customary indemnification obligations to purchasers in connection with Permitted Dispositions; and (iii) unsecured guarantees with respect to Indebtedness of Borrower
or one of its Subsidiaries, to the extent that the Person that is obligated under such guaranty could have incurred such underlying Indebtedness, 
 (f) Indebtedness incurred in the ordinary course of business under performance, surety, statutory, and appeal bonds, 
 (g)
Indebtedness owed to any Person providing property, casualty, liability, or other insurance to Borrower or any of its Subsidiaries, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be
incurred only to defer the cost of, such insurance for the year in which such Indebtedness is incurred and such Indebtedness is outstanding only during such year, 
 (h) the incurrence by Borrower or its Subsidiaries of Indebtedness under Hedging Agreements that are incurred for the bona fide purpose of hedging the interest rate or foreign currency risk associated with
Borrower’s and its Subsidiaries’ operations and not for speculative purposes, 
 (i) unsecured Indebtedness incurred in respect of
netting services, overdraft protection, and other like services, in each case, incurred in the ordinary course of business, 
 (j) unsecured
Indebtedness of Borrower owing to former employees, officers, or directors (or any spouses, ex-spouses, or estates of any of the foregoing) incurred in connection with the repurchase by Borrower of the Stock of Borrower that has been issued to such
Persons, so long as (i) no Default or Event of Default has occurred and is continuing or would result from the incurrence of such Indebtedness, (ii) the aggregate amount of all such Indebtedness outstanding at any one time does not exceed
$1,000,000, and (iii) such Indebtedness is subordinated to the Obligations on terms and conditions reasonably acceptable to Agent, 
 (k) Indebtedness composing Permitted Investments, 
 (l) Indebtedness in respect of the 1.875% Convertible Notes in an aggregate
principal amount not to exceed $157,000,000 less the aggregate principal amount of the 1.875% Convertible Notes that are the subject of a Convertible Notes Redemption after the Closing Date, and any Permitted Convertible Notes Refinancing in respect
of such Indebtedness, 
 (m) Indebtedness in respect of the 3.875% Convertible Notes in an aggregate principal amount not to exceed
$150,000,000 less the aggregate principal amount of the 3.875% Convertible Notes that are the subject of a Convertible Notes Redemption after the Closing Date, and any Permitted Convertible Notes Refinancing in respect of such Indebtedness,

  

 21 

 (n) mortgage financing with respect to the Excess Real Property so long as, (i) at the time of
incurring such Indebtedness, either (A) no Excess Real Property Event of Default has occurred and is continuing or would immediately result therefrom, or (B) if an Excess Real Property Event of Default has occurred and is continuing or
would immediately result therefrom, Revolver Usage is equal to zero both immediately before and immediately after giving effect thereto, (ii) such Indebtedness is incurred to (A) refinance the Indebtedness evidenced by the 1.875%
Convertible Notes or the Indebtedness evidenced by the 3.875% Convertible Notes (in each case, to the extent such refinancing constitutes a Permitted Convertible Note Refinancing hereunder), or (B) create liquidity for Borrower and its
Subsidiaries, (iii) such Indebtedness does not mature prior to May 15, 2012, and (iv) such Indebtedness is subordinated in right of payment to the Obligations on terms and conditions reasonably satisfactory to Agent, and 

(o) Indebtedness in respect of letters of credit in an aggregate face amount not to exceed $5,000,000. 
 “Permitted Intercompany Advances” means loans made by Borrower to any of its Subsidiaries in the ordinary course of business for
purposes of funding such Subsidiaries’ operating expenses so long as (i) no Event of Default has occurred and is continuing or would result therefrom, and (ii) Borrower has Excess Availability of $20,000,000 or greater immediately
after giving effect to each such loan. 
 “Permitted Investments” means: 
 (a) Investments in cash and Cash Equivalents, 
 (b) Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business, 
 (c)
advances made in connection with purchases of goods or services in the ordinary course of business, 
 (d) Investments received in settlement
of amounts due to Borrower or any of its Subsidiaries effected in the ordinary course of business or owing to Borrower or any of its Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure or
enforcement of any Lien in favor of Borrower or its Subsidiaries, 
 (e) Investments owned by Borrower or any of its Subsidiaries on the
Closing Date and set forth on Schedule P-1, 
 (f) guarantees permitted under the definition of Permitted Indebtedness, 
 (g) Permitted Intercompany Advances, 
 (h)
Stock or other securities acquired in connection with the satisfaction or enforcement of Indebtedness or claims due or owing to Borrower or its Subsidiaries (in bankruptcy of customers or suppliers or otherwise outside the ordinary course of
business) or as security for any such Indebtedness or claims, 
 (i) deposits of cash made in the ordinary course of business to secure
performance of operating leases, 
  

 22 

 (j) non-cash loans to employees, officers, and directors of Borrower or any of its Subsidiaries for the
purpose of purchasing Stock in Borrower so long as the proceeds of such loans are used in their entirety to purchase such stock in Borrower, and 
 (k) so long as no Event of Default has occurred and is continuing or would result therefrom, any other Investments in an aggregate amount not to exceed $10,000,000 during the term of the Agreement. 
 “Permitted Liens” means 
 (a) Liens held by Agent to secure the Obligations, 
 (b) Liens for unpaid taxes, assessments, or other governmental charges or
levies that either (i) are not yet delinquent, or (ii) do not have priority over Agent’s Liens and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests, 
 (c) judgment Liens arising solely as a result of the existence of judgments, orders, or awards that do not constitute an Event of Default under
Section 8.3 of the Agreement, 
 (d) Liens set forth on Schedule P-2, provided that any such Lien only secures the
Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect thereof, 
 (e) the interests of lessors under
operating leases and non-exclusive licensors under license agreements, 
 (f) purchase money Liens or the interests of lessors under Capital
Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the asset purchased or acquired and the proceeds thereof, and (ii) such Lien only secures the
Indebtedness that was incurred to acquire the asset purchased or acquired or any Refinancing Indebtedness in respect thereof, 
 (g) Liens
arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either
(i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests, 
 (h) Liens on amounts deposited in connection
with obtaining worker’s compensation or other unemployment insurance, 
 (i) Liens on amounts deposited in connection with the making or
entering into of bids, tenders, or leases in the ordinary course of business and not in connection with the borrowing of money, 
 (j) Liens
on amounts deposited as security for surety or appeal bonds in connection with obtaining such bonds in the ordinary course of business, 
 (k) with respect to any Real Property, easements, rights of way, and zoning restrictions that do not materially interfere with or impair the use or operation thereof, 
 (l) non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business, 
  

 23 

 (m) Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is the
subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness, 
 (n) rights of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such deposit accounts in the
ordinary course of business, 
 (o) Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing
the financing of insurance premiums to the extent the financing is permitted under the definition of Permitted Indebtedness, 
 (p) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods, 
 (q) Liens on the Excess Real Property securing the Indebtedness permitted pursuant to clause (n) of the definition of Permitted Indebtedness,

 (r) deposits and pledges of cash securing Indebtedness permitted pursuant to clause (o) of the definition of Permitted Indebtedness,

 (s) Liens securing Indebtedness incurred in connection with a Permitted Convertible Notes Refinancing so long as (i) such Liens are
subordinated to Agent’s Liens pursuant to an intercreditor agreement that is in form and substance satisfactory to Agent, and (ii) the amount of cash interest paid and to be paid on such Indebtedness does not exceed the amount of cash
interest that Borrower would have been required to pay, on and after the date of incurrence of such Indebtedness, on the Indebtedness that was refinanced, and 
 (t) other Liens which do not secure Indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the obligations secured thereby does not exceed $250,000. 
 “Permitted Protest” means the right of Borrower or any of its Subsidiaries to protest any Lien (other than any Lien that secures the
Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment, provided that (a) a reserve with respect to such obligation is established on Borrower’s or its
Subsidiaries’ books and records in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by Borrower or its Subsidiary, as applicable, in good faith, and (c) Agent is satisfied in
its discretion that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of the Agent’s Liens. 
 “Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase Money Indebtedness incurred after the Closing Date in an aggregate principal amount outstanding at any one time
not in excess of $500,000. 
 “Permitted Preferred Stock” means and refers to any Preferred Stock that is not Prohibited
Preferred Stock that is issued by Borrower and the proceeds of which are used solely to repurchase or redeem the 1.875% Convertible Notes or the 3.875% Convertible Notes in connection with a transaction that is permitted under the Agreement.

 “Person” means natural persons, corporations, limited liability companies, limited partnerships, general partnerships,
limited liability partnerships, joint ventures, trusts, land trusts, 

  

 24 

 
business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.

 “Post-Increase Revolver Lenders” has the meaning specified therefor in Section 2.14(c) of the Agreement.

 “Pounds” means United Kingdom pounds sterling (symbol “£”). 
 “Powerwave Cognition” means Powerwave Cognition, Inc., a Delaware corporation. 
 “Pre-Increase Revolver Lenders” has the meaning specified therefor in Section 2.14(c) of the Agreement. 
 “Preferred Stock” means, as applied to the Stock of any Person, the Stock of any class or classes (however designated) that is preferred
with respect to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Stock of any other class of such Person. 
 “Prohibited Preferred Stock” means any Preferred Stock that by its terms is mandatorily redeemable or subject to any other mandatory
payment obligation (other than any mandatory obligation to pay (a) dividends in cash to the extent permitted under the Agreement, (b) dividends of shares of Preferred Stock of the same class and series payable in kind, or
(c) dividends of shares of common Stock) on or before May 15, 2012, or, on or before May 15, 2012, is redeemable at the option of the holder thereof for cash or assets or securities (other than distributions in kind of shares of
Preferred Stock of the same class and series or of shares of common stock). 
 “Projections” means Borrower’s
forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent with Borrower’s historical financial statements, together with appropriate supporting details and a
statement of underlying assumptions. 
 “Pro Rata Share” means, as of any date of determination: 
 (a) with respect to a Lender’s obligation to make Advances and right to receive payments of principal, interest, fees, costs, and expenses with
respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of all Lenders, and (ii) from and after
the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances by (z) the outstanding principal amount of all Advances,

 (b) with respect to a Lender’s obligation to participate in Letters of Credit, to reimburse the Issuing Lender, and right to receive
payments of fees with respect thereto, (i) prior to the Commitments being terminated or reduced to zero, the percentage obtained by dividing (y) such Lender’s Commitment, by (z) the aggregate Commitments of all Lenders, and
(ii) from and after the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (y) the outstanding principal amount of such Lender’s Advances by (z) the outstanding principal amount
of all Advances, and 
 (c) with respect to all other matters as to a particular Lender (including the indemnification obligations arising
under Section 15.7 of the Agreement), the percentage obtained by dividing (i) such Lender’s Commitment, by (ii) the aggregate amount of Commitments of all Lenders; provided, however, that in the event the
Commitments have been terminated or reduced to zero, Pro 

  

 25 

 
Rata Share under this clause shall be the percentage obtained by dividing (A) the outstanding principal amount of such Lender’s Advances plus such
Lender’s ratable portion of the Risk Participation Liability with respect to outstanding Letters of Credit, by (B) the outstanding principal amount of all Advances plus the aggregate amount of the Risk Participation Liability with respect
to outstanding Letters of Credit. 
 “Protective Advances” has the meaning specified therefor in
Section 2.3(d)(i) of the Agreement. 
 “Purchase Money Indebtedness” means Indebtedness (other than the
Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 20 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof. 
 “Qualified Cash” means, as of any date of determination, the amount of unrestricted cash and Cash Equivalents of Borrower and its
Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any combination thereof, and which such Deposit Account or Securities Account is the subject of a Control Agreement and is maintained by a branch office of the bank or securities
intermediary located within the United States. 
 “Real Property” means any estates or interests in real property now owned
or hereafter acquired by Borrower or its Subsidiaries and the improvements thereto. 
 “Real Property Collateral” means any
Real Property hereafter acquired by Borrower or its Subsidiaries with a fair market value of at least $1,000,000 and owned in fee by Borrower or its Subsidiaries. 
 “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. 
 “Refinancing Indebtedness” means refinancings, renewals, or extensions of Indebtedness so long as: 
 (a) the terms and conditions of such refinancings, renewals, or extensions do not, in Agent’s reasonable judgment, materially impair the
prospects of repayment of the Obligations by Borrower or materially impair Borrower’s creditworthiness, 
 (b) such refinancings,
renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, 
 (c)
such refinancings, renewals, or extensions do not result in an increase in the interest rate with respect to the Indebtedness so refinanced, renewed, or extended, 
 (d) such refinancings, renewals, or extensions do not result in a shortening of the average weighted maturity of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as
a whole, are materially more burdensome or restrictive to Borrower, 
 (e) if the Indebtedness that is refinanced, renewed, or extended was
subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to the Lender Group as those that were
applicable to the refinanced, renewed, or extended Indebtedness, and 
  

 26 

 (f) the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is
liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended. 
 “Related Fund” means, with respect to any Lender that is an investment fund, any other investment fund that invests in commercial loans and that is managed or advised by the same investment advisor as
such Lender or by an Affiliate of such investment advisor. 
 “Remedial Action” means all actions taken to (a) clean
up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not
migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial
operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials authorized by Environmental Laws. 
 “Replacement Lender” has the meaning specified therefor in Section 2.13(b) of the Agreement. 
 “Report” has the meaning specified therefor in Section 15.16 of the Agreement. 
 “Required
Availability” means that the sum of (a) Excess Availability, plus (b) Qualified Cash exceeds $50,000,000. 
 “Required Lenders” means, at any time, Lenders whose aggregate Pro Rata Shares (calculated under clause (c) of the definition of Pro Rata Shares) exceed 50%; provided, however, that at any time there are
2 or more Lenders, “Required Lenders” must include at least 2 Lenders. 
 “Reserve Percentage” means, on any day,
for any Lender, the maximum percentage prescribed by the Board of Governors of the Federal Reserve System (or any successor Governmental Authority) for determining the reserve requirements (including any basic, supplemental, marginal, or emergency
reserves) that are in effect on such date with respect to eurocurrency funding (currently referred to as “eurocurrency liabilities”) of that Lender, but so long as such Lender is not required or directed under applicable regulations to
maintain such reserves, the Reserve Percentage shall be zero. 
 “Revolver Usage” means, as of any date of determination,
the sum of (a) the amount of outstanding Advances, plus (b) the amount of the Letter of Credit Usage. 
 “Risk
Participation Liability” means, as to each Letter of Credit, all reimbursement obligations of Borrower to the Issuing Lender with respect to such Letter of Credit, including (a) the contingent reimbursement obligations of Borrower with
respect to the amounts available to be drawn or which may become available to be drawn under the Underlying Letters of Credit, (b) all amounts that have been paid by the Issuing Lender to the Underlying Issuer to the extent not reimbursed by
Borrower, whether by the making of an Advance or otherwise, and (c) all accrued and unpaid interest, fees, and expenses payable with respect thereto. 
 “Sales Support Services Agreements” means the agreements identified on Schedule S-1. 
 “Sanctioned Entity” means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or indirectly controlled by a country or its government,
(d) a Person resident in or determined to be resident in a country, in each case, that is subject to a country sanctions program administered and enforced by OFAC. 
  

 27 

 “Sanctioned Person” means a person named on the list of Specially Designated Nationals
maintained by OFAC. 
 “SEC” means the United States Securities and Exchange Commission and any successor thereto.

 “Securities Account” means a securities account (as that term is defined in the Code). 
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute. 
 “Security Agreement” means a security agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by
Borrower and Guarantors to Agent. 
 “Senior Indebtedness” has the meaning specified therefor in the 1.875% Convertible
Notes Indenture and the meaning specified therefor 3.875% Convertible Notes Indenture. 
 “Settlement” has the meaning
specified therefor in Section 2.3(e)(i) of the Agreement. 
 “Settlement Date” has the meaning specified
therefor in Section 2.3(e)(i) of the Agreement. 
 “Solvent” means, with respect to any Person on a particular
date, that, at fair valuations, the sum of such Person’s assets is greater than all of such Person’s debts. 
 “S&P” has the meaning specified therefor in the definition of Cash Equivalents. 
 “Stock”
means all shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in a Person, whether voting or nonvoting, including common stock, preferred stock, or any other “equity security” (as
such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act). 
 “Subsidiary” of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the shares of Stock having ordinary voting power to elect a
majority of the board of directors (or appoint other comparable managers) of such corporation, partnership, limited liability company, or other entity. 
 “Subsidiary Service Provider” has the meaning specified therefor in Section 4.24(b) of the Agreement. 
 “Swing Lender” means WFF or any other Lender that, at the request of Borrower and with the consent of Agent agrees, in such Lender’s sole discretion, to become the Swing Lender under
Section 2.3(b) of the Agreement. 
 “Swing Loan” has the meaning specified therefor in
Section 2.3(b) of the Agreement. 
 “Taxes” shall mean, any taxes, levies, imposts, duties, fees, assessments or
other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein with respect to such payments and all interest, penalties or similar liabilities with respect
thereto; provided that Taxes shall exclude (i) any tax imposed on the net income or net profits of any Lender or any Participant (including any branch profits taxes), in each case imposed by the jurisdiction (or by any political
subdivision or taxing 

  

 28 

 
authority thereof) in which such Lender or such Participant is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in
which such Lender’s or such Participant’s principal office is located in each case as a result of a present or former connection between such Lender or such Participant and the jurisdiction or taxing authority imposing the tax (other than
any such connection arising solely from such Lender or such Participant having executed, delivered or performed its obligations or received payment under, or enforced its rights or remedies under the Agreement or any other Loan Document);
(ii) taxes resulting from a Lender’s or a Participant’s failure to comply with the requirements of Section 16(c) or (d) of the Agreement, and (iii) any United States federal withholding taxes that would be
imposed on amounts payable to a Foreign Lender based upon the applicable withholding rate in effect at the time such Foreign Lender becomes a party to the Agreement (or designates a new lending office), except that Taxes shall include
(A) any amount that such Foreign Lender (or its assignor, if any) was previously entitled to receive pursuant to Section 16(a) of the Agreement, if any, with respect to such withholding tax at the time such Foreign Lender becomes a
party to this Agreement (or designates a new lending office), and (B) additional United States federal withholding taxes that may be imposed after the time such Foreign Lender becomes a party to the Agreement (or designates a new lending
office), as a result of a change in law, rule, regulation, order or other decision with respect to any of the foregoing by any Governmental Authority. 
 “Trademark Security Agreement” has the meaning specified therefor in the Security Agreement. 
 “Underlying Issuer” means a third Person which is the beneficiary of an L/C Undertaking and which has issued a letter of credit at the request of the Issuing Lender for the benefit of Borrower. 
 “Underlying Letter of Credit” means a letter of credit that has been issued by an Underlying Issuer. 
 “United States” means the United States of America. 
 “Voidable Transfer” has the meaning specified therefor in Section 17.8 of the Agreement. 
 “Wells Fargo” means Wells Fargo Bank, National Association, a national banking association. 
 “WFF” means Wells Fargo Foothill, LLC, a Delaware limited liability company. 
  

 29Share Purchase Agreement

 Exhibit 10.38 
 SHARE PURCHASE AGREEMENT 
 THIS SHARE PURCHASE AGREEMENT (the “Agreement”) is made
as of March 31, 2009, by and between DAX Partners, LP, a limited partnership organized under the laws of the Cayman Islands (the “Purchaser”), and Selectica, Inc., a Delaware corporation (the “Seller”). Certain
other capitalized terms used in this Agreement are defined in Exhibit A hereto. 
 The Seller is the beneficial owner of all of the
outstanding shares (the “Shares”) of capital stock of Selectica India Pvt. Ltd., a company organized under the laws of India (the “Company”). This Agreement contemplates the sale by the Seller to the Purchaser of
the Shares. 
 In consideration of the foregoing and the mutual provisions set forth in this Agreement and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 ARTICLE 1 
 THE TRANSACTION 
 1.1 Sale and
Purchase of Shares. Upon the terms and conditions set forth in this Agreement, at the Closing (as defined below), the Seller will sell and transfer to the Purchaser, and the Purchaser will purchase and acquire from the Seller, all of the Shares,
free and clear of any Encumbrances. 
 1.2 Purchase Price. The aggregate purchase price for the Shares (the “Purchase
Price”) is US$3,219,000, of which $2,219,000 (the “Closing Payment”) will be paid to the Seller on the Closing Date, and $1,000,000 (the “Escrow Amount”) will be deposited with an escrow agent to be
mutually agreed upon by the parties (the “Escrow Agent”) upon execution of the Escrow Agreement (as defined below), which the parties desire to occur as soon as commercially practicable following the Closing. The Escrow Amount, once
deposited with the Escrow Agent, will be held in accordance with the terms of this Agreement and an escrow agreement (the “Escrow Agreement”), the terms and conditions of which will be mutually agreed to by the parties as soon as
commercially practicable after the Closing. The Escrow Agent will distribute the Escrow Amount to the Seller on the Final Payment Date, in accordance with to the terms of the Escrow Agreement. For the avoidance of any doubt, in no event will the
Escrow Amount be subject to offset or reduction of any kind, notwithstanding the parties’ respective rights hereunder. 
 1.3
Closing. The closing (the “Closing”) of the transactions contemplated by this Agreement (the “Contemplated Transactions”) will take place at the principal executive offices of the Seller on the date hereof
(such date, the “Closing Date”) and concurrently with the execution of this Agreement. 
 1.4 Transfer of Beneficial
Ownership. 
 (a) The Shares will be sold, conveyed, transferred and delivered, pursuant to instruments in such form as
may be necessary or appropriate to effect a conveyance of the Shares under applicable Law. Such transfer instruments will be in form and substance reasonably acceptable to the parties and will include the following: (i) a share transfer form in
the form to be agreed upon by the parties, which will transfer the Shares to the parties specified in writing by the Purchaser; and (ii) such other instruments and agreements as may be required to effect the Contemplated Transactions (the
“Transfer Documents”). 
 (b) The transfer of the Shares will be effective as of the Closing Date, from and
after which date the Purchaser will be the beneficial owner of the Shares for all purposes and to the extent registered ownership of the Shares is not transferred to the Purchaser as of the Closing Date, 

 
the Seller will hold the Shares (including, for the purposes hereof, the Nominee Share (as such term is defined herein)) as nominee or trustee for the
benefit of the Purchaser until the Shares have been formally registered in the name of the Purchaser and/or such other Person(s) as the Purchaser may designate. It is the parties’ intent that all the benefits and burdens of ownership of the
Shares will transfer to the Purchaser on the Closing Date. To the extent that transfer of registered ownership of the Shares is not perfected on the Closing Date or would be contrary to applicable Law or requires the consent, authorization or
approval of any Person, including any Governmental Authority, which consent, authorization or approval the parties were not able to obtain prior to the Closing Date, the parties will use their best efforts to provide to, or cause to be provided to,
the Purchaser, to the extent permitted by Law, the rights and benefits associated with registered ownership of the Shares and take such other actions as may reasonably be requested by the Purchaser in order to place the Purchaser, insofar as
reasonably possible, in the same position as if the Purchaser were the registered shareholder. Without limiting the foregoing and in connection therewith, the Purchaser will have the right (i) to receive all dividends or distributions
(liquidating or otherwise) associated with the Shares, or direct the Seller to deliver such dividends or distributions to the party of its selection, (ii) to direct the Seller to sell, transfer or encumber the Shares, and receive the proceeds
therefrom, including any of the rights or privileges associated with the Shares, and (iii) to direct the Seller to vote the Shares as it instructs. 
 (c) In connection with the arrangement set forth in this Section 1.4, and without limiting the foregoing, the Seller covenants and agrees as follows: (i) to vote the Shares at the meetings of the
shareholders of the Company only as directed by the Purchaser; (ii) to observe all corporate formalities and filing requirements that may have to be met with regard to the Shares; (iii) to forward to the Purchaser, or any other Person
identified by the Purchaser, all dividends, distributions (liquidating or otherwise), and sale proceeds made with respect to the Shares; (iv) to sell, transfer or encumber the Shares only as directed by the Purchaser; (v) to immediately
notify the Purchaser upon attachment or attempted seizure of, or acquisition of, any interest or assertion of any rights in, the Shares by any third Person and take appropriate action to defend against such attachment and to protect the
Purchaser’s interest in the Shares; (vi) to not take any action with respect to the Company’s bank accounts, or the funds therein, without the prior written consent of the Purchaser; and (vii) to be entitled to rely on the
written instructions of the officers and directors of the Purchaser, and such instructions will be deemed to have been duly authorized by the Purchaser. 
 (d) Without limiting the parties’ respective rights and obligations under this Section 1.4, the parties agree to cooperate in good faith and take any such actions as may be reasonably necessary to cause the
Contemplated Transactions to be consummated under applicable Law as soon as commercially practicable following the Closing. 
 1.5 Closing
Deliveries. 
 (a) As soon as commercially practicable after the Closing, the Seller will deliver or cause to be
delivered to the Purchaser: 
 (i) the duly executed Transfer Documents; 
 (ii) certificates representing the Shares, duly endorsed in blank, with all the appropriate share transfer tax stamps affixed to the Transfer
Documents; and 
 (iii) resignations effective as of the Closing Date of each director and officer of the Company as the Purchaser may
have requested in writing. 

 (b) At the Closing, the Purchaser will deliver or cause to be delivered to the Seller
the Closing Payment, less any amounts withheld in accordance with Section 6.9 hereof, by wire transfer of immediately available funds to the account specified by the Seller. 
 (c) Upon delivery of the items set forth in Section 1.5(a) to the Purchaser (such delivery date, the “Final Payment
Date”), the Escrow Amount will be distributed to the Seller. In the event the Escrow Agreement has not been executed as of the Final Payment Date, the Purchaser will pay the Escrow Amount to the Seller on the Final Payment Date. 

(d) In the event that the documents set forth in Section 1.5(a) are not delivered within 90 calendar days of the Closing (which
failure is not caused by any act or omission of the Purchaser), the Purchaser will be entitled to retain any interest accrued on the Escrow Amount pursuant to the Escrow Agreement through the termination of the Escrow Agreement. The parties further
recognize and agree that any breach of Section 1.5(a) may give rise to irreparable harm to the Purchaser for which money damages would not be an adequate remedy and, agree that, in addition to the other remedies, the Purchaser will be entitled
to enforce the terms of this Agreement by decree of specific performance without the necessity of proving the inadequacy of a remedy of money damages. 
 (e) In connection with the Closing, the parties, as applicable, will cause the Company to undertake the following as soon as reasonably practicable thereafter: 
 (i) convene a meeting of the board of directors of the Company (the “Company Board”) to discuss the following: (A) approval of
the transfer of Shares from the Seller to the Purchaser or its nominees as set forth in the Transfer Documents; and (B) the appointment of new directors nominated by the Purchaser to the Company Board; 
 (ii) convene a second meeting of the Company Board within 7 days of the meeting referred to in subsection (i) above to note the resignations
of the existing directors, as may be requested by the Purchaser; 
 (iii) file a Form 32 for the resignation of the existing directors
and appointment of new directors to the Company Board, as required under applicable Law; 
 (iv) record the changes to the Register of
Members maintained by the Company under applicable Law; 
 (v) make an endorsement back of the Share Certificate submitted to it by the
Purchaser; and 
 (vi) instruct the Company’s bank to change the authorized signatories for the Company’s bank account(s) to
the persons designated by the Purchaser. 
 1.6 Taxes. Any and all applicable sales, use, transfer, stamp, stock transfer, value-added
or other similar Taxes that are, or become due and payable as a result of the Contemplated Transactions, whether such Taxes are imposed by Law on the Seller, the Purchaser or the Company (such Taxes, the “Transfer Taxes”) will be
borne solely by the Seller. Any and all other applicable Taxes (including, without limitation, capital gains or other taxes imposed by any applicable Governmental Authority in India, whether such Taxes are imposed by Law on the Seller, the Purchaser
or the Company (such Taxes, the “Other Taxes”), will be borne solely by the Purchaser. 

 ARTICLE 2 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 The Seller represents and warrants to the Purchaser
that the statements set forth in this Article 2 are true and correct as of the Closing: 
 2.1 Organization and Good Standing.

 (a) The Seller is a corporation duly organized, validly existing and in good standing under the Law of the State of
Delaware, and has all requisite corporate power and authority to conduct its business as presently conducted. 
 (b) The
Company is duly organized, validly existing and in good standing under the Law of India, and has all requisite corporate power and authority to conduct its business as presently conducted. 
 2.2 Authority and Enforceability. The Seller has all requisite corporate power and authority to execute and deliver this Agreement and to perform
its obligations under this Agreement. The execution, delivery and performance of this Agreement and the consummation of the Contemplated Transactions by the Seller have been duly authorized by all necessary action on the part of the Seller. The
Seller has duly and validly executed and delivered this Agreement. Assuming the due authorization, execution and delivery of this Agreement by the Purchaser, this Agreement constitutes the valid and binding obligation of the Seller enforceable
against the Seller in accordance with its terms, subject to (a) Law of general application relating to bankruptcy, insolvency and the relief of debtors and (b) Law governing specific performance, injunctive relief and other equitable
remedies. 
 2.3 No Conflict. Neither the execution, delivery and performance of this Agreement by the Seller, nor the consummation by
the Seller of the Contemplated Transactions, will (a) conflict with or violate (i) the Seller’s certificate of incorporation or bylaws, or (ii) the Company’s memorandum of association, articles of association or similar
constituent document, each as amended to date, (b) result in a breach or default under, or create in any Person the right to terminate, cancel, accelerate or modify, or require any notice, consent or waiver under, any Contract of the Seller or
the Company, (c) to the best of Seller’s Knowledge, violate any Law or Judgment applicable to the Seller or the Company or (d) require the Seller or the Company to obtain any Governmental Authorization or make any filing with any
Governmental Authority except as contemplated by Section 1.5 and 1.6 hereof. 
 2.4 Capitalization and Ownership. 
 (a) The authorized capital stock of the Company consists solely of 1,000,000 shares of capital stock, par value 0.10 rupees per share, of
which 757,520 shares are issued and outstanding. The Seller is the registered holder of 757,519 of the Shares (the “Registered Shares”). Selectica UK Ltd. (the “Nominee”) is the registered owner of 1 of the Shares
(the “Nominee Share”) and holds such Nominee Share on behalf of the Seller. The Seller is the sole beneficial owner of all of the Shares, free and clear of all Encumbrances. Upon payment in full of the Purchase Price, good and valid
title to the Shares will pass to the Purchaser, free and clear of any Encumbrances, and with no restrictions on the voting rights or other incidents of record and beneficial ownership of such Shares, except to the extent contemplated by this
Agreement. The Shares are duly authorized, validly issued, fully paid and nonassessable. There are no contracts to which either the Seller or any other Person is a party or bound with respect to the voting (including voting trusts or proxies) of the
Shares. Other than the Shares, there are no outstanding or authorized options, warrants, rights, agreements or commitments to which the Company is a party or which are binding upon the Company providing for the issuance or redemption of any shares
of the Company’s capital stock. 

 (b) The Company does not directly or indirectly own any capital stock of, or other
equity interests in, any corporation, limited liability company, partnership or any other entity. 
 2.5 Certain Payments. 

(a) To the Knowledge of the Seller, neither the Seller, nor any member, officer, agent, employee, Affiliate or other Person associated
with or acting on behalf of the Seller has (i) provided, or arranged for the provision of, any unlawful contribution, gift, entertainment or other unlawful expense relating to any political party or official thereof or any candidate for public
office; (ii) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended, the anti-laundering compliance provisions of the USA PATRIOT Act of 2001, as amended, or any other applicable anti-corruption Laws or regulations;
(iii) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any Person (including any representative or employee of any Governmental Authority); or (iv) violated or operated in noncompliance with any
export restrictions, anti-boycott regulations or embargo regulations. 
 (b) None of the assets and properties of the Company
(i) has been acquired by the Company pursuant to a transaction that has involved directly or indirectly an illegal payment to a representative or employee of any Governmental Authority or (ii) represents the proceeds of any illegal
activity. 
 (c) As per the Seller’s books and records, the Seller’s cost basis in the Shares as of the Closing
Date is US$2,978,407. 
 2.6 Cash Balance. As of March 30, 2009, the aggregate value of the Company’s cash and cash
equivalents was 221,415,962 rupees (the “March Cash Balance”). 
 2.7 Brokers’ Fees. The Seller has no Liability
to pay any fees or commissions to any broker, finder or agent with respect to the Contemplated Transactions. 
 2.8 Disclosure of all
Material Liabilities. During the course of negotiation of this Agreement and prior to the date hereof, Seller has made available to Purchaser any and all information and materials requested by Purchaser and/or Purchaser’s accountants,
advisors, attorneys or other representatives in connection with the Purchaser’s evaluation of the Company and the Contemplated Transactions. To the Seller’s Knowledge (after reasonable inquiry and investigation), there are no Liabilities
of the Company other than those disclosed to the Purchaser in connection herewith, whether reflected on the books of account of the Company or otherwise (including, for such purpose but without limitation, the March Cash Balance). 
 2.9 Disclaimer of Other Representations and Warranties. The representations and warranties set forth in this Article 2 are the only
representations and warranties made by the Seller with respect to the Shares, the Seller, the Company or any other matter relating to the Contemplated Transactions. 

 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 
 The Purchaser represents and warrants to the Seller
that the statements set forth in this Article 3 are true and correct as of the Closing: 
 3.1 Organization and Good Standing. The
Purchaser is a corporation duly organized, validly existing and in good standing under the Law of the Cayman Islands, and has all requisite corporate power and authority to conduct its business as it is presently conducted. 
 3.2 Authority and Enforceability. The Purchaser has all requisite corporate power and authority to execute and deliver this Agreement. The
execution, delivery and performance of this Agreement by the Purchaser and the consummation of the Contemplated Transactions by the Purchaser have been duly authorized by all necessary action on the part of the Purchaser. The Purchaser has duly and
validly executed and delivered this Agreement. Assuming the due authorization, execution and delivery of this Agreement by the Seller, this Agreement constitutes the valid and binding obligation of the Purchaser, is enforceable against the Purchaser
in accordance with its terms, subject to (a) Law of general application relating to bankruptcy, insolvency and the relief of debtors and (b) Law governing specific performance, injunctive relief and other equitable remedies. 
 3.3 No Conflict. Neither the execution, delivery and performance of this Agreement by the Purchaser, nor the consummation by the Purchaser of the
Contemplated Transactions, will (a) conflict with or violate the Purchaser’s articles of association, memorandum of association or other constituent documents, each as amended to date, (b) result in a breach or default under, or
create in any Person the right to terminate, cancel, accelerate or modify, or require any notice, consent or waiver under, any contract, (c) violate any Law or Judgment applicable to the Purchaser or (d) require the Purchaser to obtain any
Governmental Authorization or make any filing with any Governmental Authority, except in any case that would not reasonably be expected to have a Material Adverse Effect on the Purchaser. 
 3.4 Investment Intent. The Purchaser is acquiring the Shares for the Purchaser’s own account and investment purposes and is not acquiring the
Shares with a view to, or for sale in connection with, any distribution thereof within the meaning of any federal or state securities Law. The Purchaser is an “accredited investor” within the meaning of Rule 501(a) of Regulation D as
promulgated by the Securities and Exchange Commission under the Securities Act of 1933, as amended, and has sufficient business and financial knowledge and experience to protect its own interests and to evaluate the merits and risks in connection
with the purchase of the Shares. 
 3.5 Legal Proceedings. There is no Proceeding pending or, to the Purchaser’s Knowledge,
threatened against the Purchaser that questions or challenges the validity of this Agreement or that may prevent, delay, make illegal or otherwise interfere with the ability of the Purchaser to consummate any of the transactions contemplated by this
Agreement. 
 3.6 Financial Capacity and Related Matters. 
 (a) The Purchaser has immediately available cash in an amount sufficient to pay the Purchase Price on the Closing Date. 
 (b) The source of funds for such cash are not derived from, or related to, any activity that is illegal or illegitimate or deemed criminal
under the laws of the United States, the Cayman Islands or any other jurisdiction, nor are they derived from any account, Person, or entity located in a jurisdiction that: (i) is listed on any of the lists of OFAC prohibited countries,
territories and Persons (found on the OFAC website at www.treas.gov/ofac) or subject to OFAC regulations or sanctions; (ii) has been designated a “non-cooperative country or territory” by the Financial Action Task Force on Money
Laundering; or (iii) has been designated by the U.S. Secretary of the Treasury as a “primary money laundering concern” subject to “Special Measures for Jurisdictions, Financial Institutions, or International Transactions of
Primary Money Laundering Concern” regulations implemented by the US Department of Treasury or Financial Crimes Enforcement Network. 

 (c) The investment made by the Purchaser in the Shares will not directly or indirectly
contravene any applicable anti-money laundering laws, regulations or conventions of the United States, the Cayman Islands or other international jurisdictions, nor will such investment made by the Purchaser (to the extent that such matters are
within the control of the Purchaser) cause either the Seller or the Company to be in violation of any applicable anti-money laundering laws, regulations or conventions of the United States, the Cayman Islands or other international jurisdictions,
including the Cayman Islands Anti-Money Laundering Regulations, The Proceeds of Criminal Conduct Law (as amended) of the Cayman Islands, OFAC regulations, the United States Bank Secrecy Act and corresponding regulations, the United States Money
Laundering Control Act of 1986, or the United States International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001. 
 3.7 Brokers’ Fees. The Purchaser has no Liability to pay any fees or commissions to any broker, finder or agent with respect to the Contemplated Transactions. 
 3.8 Independent Investigation. The Purchaser has conducted its own independent investigation, review and analysis of the business, operations,
assets, liabilities, results of operations, financial condition and prospects of the business of the Company as it has deemed appropriate, which investigation, review and analysis was done by the Purchaser and its Affiliates and representatives. The
Purchaser acknowledges that it and its Affiliates and representatives have been provided adequate access to the personnel, properties, premises and records of the Seller and the Company for such purpose. In entering into this Agreement, the
Purchaser acknowledges that it has relied solely upon the aforementioned investigation, review and analysis and not on any factual representations or opinions of the Seller, the Company or their representatives (except the representations and
warranties set forth in Article 2). The Purchaser hereby acknowledges and agrees that other than the representations and warranties set forth in Article 2, none of the Seller, the Company, any of their Affiliates, or any of their respective
officers, directors, employees, agents, representatives or stockholders, makes or has made any representation or warranty, express or implied, at Law or in equity, as to any matter whatsoever relating to the Shares, the Seller, the Company, or any
other matter relating to the Contemplated Transactions including as to (i) merchantability or fitness for any particular use or purpose, (ii) the operation of the business of the Company after the Closing in any manner or (iii) the
probable success or profitability of the business of the Company after the Closing. 
 ARTICLE 4 
 POST-CLOSING COVENANTS 
 4.1 Further
Assurances; Cooperation. 
 (a) From and after the Closing, the Seller and the Purchaser each will use its best efforts to
take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to make effective as promptly as practicable the Contemplated Transactions and to cooperate with each other in connection with the
foregoing, including to: (i) obtain all necessary waivers, consents and approvals from other parties; (ii) obtain all Governmental Authorizations that are required to be obtained under any Law and (iii) effect all necessary
registrations and filings including filings and submissions of information requested or required by any Governmental Authority. In connection therewith, the Seller will cause the Nominee to take such actions as are necessary, proper or advisable to
facilitate the Contemplated Transactions. In no event, however, will the Seller be obligated to pay any money to any Person or to offer or grant other financial or other accommodations to any Person in connection with its obligations under this
Section 4.1. 

 (b) Notwithstanding and without limiting Section 4.2 hereof, the parties further
acknowledge that, in connection with certain intercompany transfers and transactions that may be undertaken by Seller and its Affiliates prior to the Closing Date, certain assets and related rights may continue to be held in the name of the Company
as of the Closing Date (such assets and rights the “Non-transferred Assets”). From time to time after the Closing Date, to the extent that the Purchaser discovers the existence of a Non-Transferred Asset, the parties will cooperate
in good faith to effect the transfer of such Non-transferred Asset from the Company to an entity designated by the Seller, provided that this would not alter the original intent of the parties as evidenced by this Agreement with respect to the
Shares to be sold and transferred to the Purchaser. 
 4.2 D&O Indemnification. The Purchaser will maintain and perform, and will
not take any action to alter or impair, any indemnification provisions or similar exculpatory provisions eliminating personal liability of directors and officers for monetary damages existing in the Company’s articles of association, memorandum
of association, existing indemnification agreements between the Company and its directors and officers, or any similar written agreement in effect as of the Closing Date, to the extent a copy of which has been made available to the Purchaser, for a
period of not less than six years after the Closing Date, except for any changes in such articles of association, memorandum of association of existing indemnification agreements which, in each instance, do not directly or indirectly adversely
affect the application of such provisions to acts or omissions of such individuals prior to the Closing Date or materially alter or impair the rights of such individuals thereunder. Notwithstanding anything to the contrary in this Agreement, the
provisions of this Section 4.2 will survive the consummation of the Contemplated Transaction and are intended to be for the benefit of, and will be enforceable by, each present and former director and officer of the Company and his or her heirs
and representatives. Following the Closing Date, the obligations of the Purchaser under this Section 4.2 will not be terminated or modified in such a manner as to adversely affect the rights of any present or former director and officer of the
Company under this Section 4.2 without the consent of such affected present or former director and officer of the Company. 
 4.3
Public Announcements. Following the Closing, each party agrees not to issue any press release or make any other public announcement relating to this Agreement without the prior written approval of the other party, except that the Seller
reserves the right, without the other party’s prior consent, to make any public disclosure it believes in good faith is required by applicable securities Law or securities listing standards (in which case the disclosing party agrees to use
commercially reasonable efforts to advise the other party prior to making the disclosure). 
 ARTICLE 5 
 INDEMNIFICATION 
 5.1
Indemnification of the Seller. The Purchaser will, from and after the Closing, defend and promptly indemnify and hold harmless the Seller, and its officers, directors, stockholders, Affiliates, agents and representatives (collectively the
“Sellers Indemnified Parties”), from, against, for, and in respect of and pay any and all Losses suffered, sustained, incurred or required to be paid by any such party arising out of or resulting from: 
 (a) any breach of any representation, warranty, covenant or agreement of the Purchaser contained in this Agreement or any Transfer
Documents; 
 (b) the enforcement by any Sellers Indemnified Party of any of its rights under this Section 5.1 or
any other covenant contained in this Agreement or any Transfer Documents; 
 (c) any Other Taxes or any Liability for
Taxes provided for in Section 5.3(b); or 
 (d) the operations of the Company following the Closing. 

 5.2 Indemnification of the Purchaser. The Seller will defend, indemnify, and hold harmless the
Purchaser and its respective officers, directors, stockholders, Affiliates, agents and representatives (collectively the “Purchaser Indemnified Parties”) from, against, for and in respect of and pay any and all Losses suffered,
sustained, incurred or required to be paid by any such party arising out of or resulting from: 
 (a) any breach of any
representation, warranty, covenant or agreement of the Seller contained in this Agreement or any Transfer Documents; 
 (b) the enforcement by any Purchaser Indemnified Party of any of its rights under this Section 5.2 or any other indemnification covenant contained in this Agreement or the Transfer Documents; or 
 (c) Any Transfer Taxes or Liability for Taxes as provided for in Section 5.3(a). 
 5.3 Tax Matters. 
 (a)
Seller’s Liability for Taxes. Except to the extent such items have been paid prior to Closing, the Seller will be liable for and will indemnify the Purchaser for all Taxes imposed on the Company or for which the Company may otherwise be
liable (i) for any taxable year or period that ends on or before the Closing Date, and (ii) the portion of such taxable year or period ending on or including the Closing Date (but only to the extent such Taxes arise from actions taken by
the Company prior to the Closing that result in Liability for Taxes after the Closing Date). The Seller will be entitled to any refund of Taxes the Company receives for any such periods ending on or prior to the Closing Date. 
 (b) Purchaser Liability for Taxes. The Purchaser will be liable for and will indemnify Sellers for the Taxes of each Company
(i) for any taxable year or period that begins after the Closing Date, and (ii) with respect to any taxable year or period beginning before and ending after the Closing Date, except to the extent of Taxes payable by Sellers in accordance
with Section 5.3(a). 
 5.4 Procedure. Any party seeking indemnification pursuant to this Agreement (the “Indemnified
Party”) will promptly give the party from whom such indemnification is sought (the “Indemnifying Party”) written notice (a “Claim Notice”) of the matter with respect to which indemnification is being
sought, which notice will specify in reasonable detail, if known, the amount or an estimate of the amount of the Liability arising therefrom and the basis of the claim or indemnification obligation. Such Claim Notice will be a condition precedent to
any Liability of the Indemnifying Party for indemnification hereunder, but the failure of the Indemnified Party to promptly notify the Indemnifying Party will not adversely affect the Indemnified Party’s right to indemnification hereunder
except, and only to the extent that, in the case of a claim made by a third Person, the defense of that claim is materially prejudiced by such failure. 
 5.5 Third Party Claims. 
 (a) In connection with any indemnification claim arising out
of a claim or legal Proceeding (a “Third Party Claim”) by any third Person, the Indemnifying Party will be entitled to control the defense of any such claim with counsel reasonably acceptable to the Indemnified Party at the
Indemnifying Party’s own cost and expense, including the cost and expense of reasonable 

 
attorneys’ fees and disbursements in connection with such defense, by providing written notice to the Indemnified Party no later than five business days
following its receipt of the Claim Notice; provided, however, that the Indemnifying Party may not assume control of the defense of a suit or proceeding (a) involving criminal liability, or (b) to the extent such suit or
proceeding seeks an injunction or equitable relief against the Indemnified Party. In the event that the Indemnifying Party assumes control of the defense, the Indemnified Party may participate at its own expense. The party controlling such defense
will keep the other party reasonably advised of the status of such suit or proceeding and the defense thereof, and will consider in good faith recommendations made by the non-controlling party with respect thereto. The parties will otherwise
cooperate in good faith in connection with such defense. 
 (b) The Indemnifying Party will be entitled to agree to a
settlement of, or the stipulation of any Judgment arising from, any such Third Party Claim, with the consent of the Indemnified Party, which consent will not be unreasonably withheld or delayed; provided, however, that no such consent
will be required from the Indemnified Party if (A) the Indemnifying Party pays or causes to be paid all Losses arising out of such settlement or Judgment concurrently with the effectiveness thereof (as well as all other Losses theretofore
incurred by the Indemnified Party which then remain unpaid or unreimbursed), (B) in the case of a settlement, the settlement is conditioned upon a complete release by the claimant of the Indemnified Party, and (C) such settlement or
Judgment does not impose an injunction or other equitable relief upon the Indemnified Party, require the Encumbrance of any asset of the Indemnified Party or impose any restriction upon its conduct of business or otherwise materially adversely
affect its business. 
 5.6 Limitations. 
 (a) In no event will the Seller’s Liability under this Agreement exceed the Purchase Price actually paid hereunder; provided, however, that (x) the Liability of the Seller for Taxes arising
under Section 5.3 will not exceed US$1,000,000 and (y) the Liability of the Seller arising under Section 5.1(a) for a breach of the representations and warranties set forth in Section 2.8 will not exceed US$250,000;
provided, further, that the limitation set forth in clause (y) will not apply with respect to Losses relating to (1) Encumbrances, if any, against the Company’s real property in India, or (2) a breach of the
representation and warranty set forth in Section 2.6. or the impairment of the Company’s cash balances as a result of any material loans or advances outstanding to employees or directors or any breach by the Seller of its covenants
contained herein. 
 (b) Nothing in this Agreement will limit the Liability of any person to any other party for intentional
fraud or willful misconduct. 
 (c) The Indemnified Party will take, and will cause its Affiliates to take, all commercially
reasonable steps to mitigate any Losses upon and after becoming aware of any facts, matters, failures or circumstances that would reasonably be expected to result in any Losses that are indemnifiable hereunder. In the event the Indemnified Party
will fail to take such commercially reasonable steps, then notwithstanding anything in this Agreement to the contrary, the Indemnifying Party will not be required to indemnify the Indemnified Party for that portion of Losses that would reasonably
have been expected to have been avoided if the Indemnified Party had taken such steps. 
 5.7 Survival of Representations and
Warranties. Except as set forth in Section 5.3, the representations, warranties, covenants and agreements contained in this Agreement will survive the Closing and any investigation made by or on behalf of any of the Parties hereto at any
time with respect thereto, and expire as follows: 

 (a) the representations and warranties set forth in this Agreement or in any certificate
or writing delivered pursuant hereto or in connection herewith will expire on the first anniversary of the Closing Date; 
 (b) the obligations of the parties set forth in Section 5.3 will remain in effect for the period of the relevant statute of limitations applicable to the Taxes at issue; and 
 (c) the covenants and agreements of the parties set forth in this Agreement or in any certificate or other writing delivered
pursuant hereto or in connection herewith will survive the Closing until the expiration of the applicable statute of limitations (including any extension or tolling thereof) or for the shorter period explicitly specified therein, except that for
such covenants and agreements that survive for such shorter period, breaches thereof will survive indefinitely until the expiration of the applicable statute of limitations (including any extension or tolling thereof). 
 5.8 Exclusive Remedy. The sole and exclusive remedy of any Indemnified Party with respect to any and all Losses arising in connection with the
representations, warranties, covenants and agreements set forth in this Agreement will be pursuant to the indemnification obligations set forth in this Article 5 hereof and subject to the limitations set forth herein. 
 5.9 Exercise of Remedies by Persons Other than the Parties. No Indemnified Party (other than the Parties or any respective successor or assignee
of such Party) is entitled to assert any indemnification claim or exercise any other remedy under this Agreement unless (a) in the case of any Seller Indemnified Party, the Seller (or any successor or assignee of the Seller) consents to the
assertion of the indemnification claim, or (b) in the case of any Purchaser Indemnified Party, the Purchaser (or any successor or assignee of the Purchaser) consents to the assertion of the indemnification claim. 
 ARTICLE 6 
 GENERAL PROVISIONS 

 6.1 Governing Law; Disputes. 
 (a) The internal law of the State of California (without giving effect to any choice or conflict of Law provision or rule (whether of the State of California or any other jurisdiction) that would cause the application
of Laws of any other jurisdiction) govern all matters arising out of or relating to this Agreement and the Contemplated Transactions, including its validity, interpretation, construction, performance and enforcement and any disputes or controversies
arising therefrom or related thereto. EACH OF THE PARTIES KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE ACTIONS OF ANY PARTY TO THIS AGREEMENT IN NEGOTIATION, EXECUTION AND DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT.

 (b) Any action or proceeding arising out of or relating to this Agreement or the Contemplated Transactions must be brought
in the courts of the State of California, Santa Clara County, or, if it has or can acquire jurisdiction, in the United States District Court for the Northern District of California. Each of the parties knowingly, voluntarily and irrevocably submits
to the exclusive jurisdiction of each such court in any such action or Proceeding and waives any objection it may now, or hereafter, have to venue or to convenience of forum. Each of the parties expressly 

 consents to the jurisdiction of such courts in any such action or Proceeding, and waives any other
requirements of or objections to personal jurisdiction with respect thereto. If necessary, the Purchaser will appoint an entity as its authorized agent (“Authorized Agents”) upon whom process may be served in any such action or Proceeding
arising out of or based on this Agreement or the transactions contemplated hereby. The Purchaser represents and warrants that such Authorized Agents will have agreed to act as such agents for service of process and agree to take any and all action,
including the filing of any and all documents and instruments, that may be necessary to continue such appointment in full force and effect as aforesaid. Service of process upon the Authorized Agents and written notice of such service to the
Purchaser will be deemed, in every respect, effective service of process upon the Purchaser. Nothing in this Section 6.1, however, affects the right of any party to serve legal process in any other manner permitted by Law. 
 (c) The parties acknowledge and agree that in the event of a breach by either party or any of their respective Affiliates of any of the
provisions of this Agreement, monetary damages will not constitute a sufficient remedy. Consequently, in the event of any such breach, either party or their respective successors or assigns may, in addition to other rights and remedies existing in
their favor, apply to any court of law or equity of competent jurisdiction for specific performance or injunctive or other relief in order to enforce or prevent any violations of the provisions hereof, in each case without the requirement of posting
a bond or proving actual damages. 
 (d) The rights and remedies of the parties hereto will be cumulative (and not
alternative) and the exercise by a party of one remedy will not preclude the exercise of any other remedy. Any enumeration of the party’s rights and remedies in this Agreement is not intended to be exclusive, and a party’s rights and
remedies are intended to be cumulative to the extent permitted by law and include any rights and remedies authorized in law or in equity. 
 6.2 Limitation on Liability. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT TO THE CONTRARY, IN NO EVENT (A) WILL ANY PARTY OR ANY OF ITS AFFILIATES BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS, LOSS OF REVENUE OR LOST SALES) IN CONNECTION WITH ANY CLAIMS, LOSSES, DAMAGES OR INJURIES ARISING OUT OF THE CONDUCT OF SUCH PARTY PURSUANT TO THIS AGREEMENT REGARDLESS OF WHETHER THE NONPERFORMING
PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OR NOT, AND (B) WILL THE AGGREGATE LIABILITY OF THE SELLER FOR ANY CLAIMS, LOSSES, DAMAGES OR INJURIES ARISING IN CONNECTION WITH THIS AGREEMENT EXCEED THE PURCHASE PRICE. 
 6.3 Notices. All notices and other communications under this Agreement must be in writing and are deemed duly delivered when (a) delivered
personally or by an internationally recognized overnight courier service (costs prepaid), (b) sent by facsimile with confirmation of transmission by the transmitting equipment (or, the first Business Day following such transmission if the date
of transmission is not a Business Day) or (c) received or rejected by the addressee, if sent by United States of America or Cayman Islands certified or registered mail, return receipt requested; in each case to the following addresses or
facsimile numbers and marked to the attention of the individual (by name or title) designated below (or to such other address, facsimile number or individual as a party may designate by notice to the other parties): 
  

			
	If to the Seller:	  	 Selectica, Inc.
 1740 Technology Drive, Ste.
450
 San Jose, CA 95110
 United States of
America

					
		 	Facsimile:	  	+1.408.570.9705
		 	Attention:	  	Richard Heaps
		 		  	Chief Financial Officer and General Counsel
		
	with a copy to:	 	Baker & McKenzie LLP
		 	2 Embarcadero Center, 11th Floor
		 	San Francisco, CA 94111
		 	United States of America
		 	Facsimile:	  	+1.415.573.3099
		 	Attention:	  	John F. McKenzie
		 		  	Matthew R. Gemello
		
	If to the Purchaser:	 	DAX Partners LP
		 	c/o Mourant Cayman Corporate Services, Ltd
		 	42 North Church Street
		 	P.O. Box 1348
		 	Grand Cayman, Cayman Islands KY1-1108
		 	Facsimile:	  	+1.212.509.8080
		 	Attention:	  	Raj Agarwal
		
		 	and
		
		 	DAX Partners LP
		 	90 Broad Street, 17th Floor
		 	New York, NY 10004
		 	United States of America
		 	Facsimile:	  	+1.212.509.8080
		 	Attention:	  	Raj Agarwal
		
	with a copy to:	 	Salans LLP
		 	Rockefeller Center
		 	620 Fifth Ave.
		 	New York, NY 10020-2457
		 	United States of America
		 	Facsimile:	  	+1.212.632.5555
		 	Attention:	  	Robert K. Smits

 6.4 Counterparts. The parties may execute this Agreement in multiple counterparts, each of
which constitutes an original as against the party that signed it, and all of which together constitute one agreement. This Agreement is effective upon delivery of one executed counterpart from each party to the other parties. The signatures of all
parties need not appear on the same counterpart. The delivery of signed counterparts by facsimile or email transmission that includes a copy of the sending party’s signature(s) is as effective as signing and delivering the counterpart in
person. 
 6.5 Amendment. This Agreement may not be amended, supplemented or otherwise modified except in a written document signed by
each party to be bound by the amendment and that identifies itself as an amendment to this Agreement. 
 6.6 Waiver and Remedies. The
parties may (a) extend the time for performance of any of the obligations or other acts of any other party to this Agreement, (b) waive any inaccuracies in the representations and warranties of any other party to this Agreement contained
in this Agreement or 

 (c) waive compliance with any of the covenants or conditions for the benefit of such party contained in this Agreement.
Any such extension or waiver by any party to this Agreement will be valid only if set forth in a written document signed on behalf of the party or parties against whom the extension or waiver is to be effective. No extension or waiver will apply to
any time for performance, inaccuracy in any representation or warranty, or noncompliance with any covenant or condition, as the case may be, other than that which is specified in the written extension or waiver. No failure or delay by any party in
exercising any right or remedy under this Agreement or any of the documents delivered pursuant to this Agreement, and no course of dealing between the parties, operates as a waiver of such right or remedy, and no single or partial exercise of any
such right or remedy precludes any other or further exercise of such right or remedy or the exercise of any other right or remedy. Any enumeration of a party’s rights and remedies in this Agreement is not intended to be exclusive, and a
party’s rights and remedies are intended to be cumulative to the extent permitted by Law and include any rights and remedies authorized in Law or in equity. 
 6.7 Assignment, Successors and No Third Party Rights. This Agreement binds and benefits the parties and their respective successors and assigns, except that Purchaser may not assign any rights under this
Agreement without the prior written consent of the Seller. No party may delegate any performance of its obligations under this Agreement, except delegations of the performance of its obligations to any Affiliate of such party so long as such party
remains fully responsible for the performance of the delegated obligation. Nothing expressed or referred to in this Agreement will be construed to give any Person, other than the parties to this Agreement, any legal or equitable right, remedy or
claim under or with respect to this Agreement or any provision of this Agreement except such rights as may inure to a successor or permitted assignee under this Section 6.7. 
 6.8 Severability. If any provision of this Agreement is held invalid, illegal or unenforceable, the remaining provisions of this Agreement will
remain in full force and effect, if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable. 
 6.9 Expenses. Except as otherwise expressly provided in this Agreement, each party will pay its own direct and indirect expenses incurred by it in connection with the preparation and negotiation of this Agreement and the consummation
of the Contemplated Transactions, including all fees and expenses of its advisors and representatives; provided, however, that the Seller will reimburse the Purchaser in an amount not to exceed $50,000 in the aggregate for expenses
incurred by the Purchaser in connection herewith (including, without limitation any fees or expenses of the Purchaser’s advisors and representatives), which amount may be deducted from the Purchase Price to be paid at the Closing or on the
Final Payment Date upon the presentation of invoice(s) or similar written evidence of such expense. 
 6.10 No Joint Venture. Nothing
in this Agreement creates a joint venture or partnership between the parties. This Agreement does not authorize any party (a) to bind or commit, or to act as an agent, employee or legal representative of, another party, except as may be
specifically set forth in other provisions of this Agreement, or (b) to have the power to control the activities and operations of another party. The parties are independent contractors with respect to each other under this Agreement. Each
party agrees not to hold itself out as having any authority or relationship contrary to this Section 6.10. 
 6.11
Interpretation. In the negotiation of this Agreement, each party has received advice from its own attorney. The language used in this Agreement is the language chosen by the parties to express their mutual intent, and no provision of this
Agreement will be interpreted for or against any party because that party or its attorney drafted the provision. 
 6.12 Construction;
Exhibits and Schedules. The Exhibits and Schedules to this Agreement are incorporated herein by reference and made a part of this Agreement. Any reference in this Agreement to 

 an “Article,” “Section,” “Exhibit” or “Schedule” refers to the corresponding
Article, Section, Exhibit or Schedule of or to this Agreement, unless the context indicates otherwise. The headings of Articles and Sections are provided for convenience only and are not intended to affect the construction or interpretation of this
Agreement. All words used in this Agreement are to be construed to be of such gender or number as the circumstances require. The words “including,” “includes,” or “include” are to be read as listing non-exclusive
examples of the matters referred to, whether or not words such as “without limitation” or “but not limited to” are used in each instance. Where this Agreement states that a party “will”, “will” or
“must” perform in some manner or otherwise act or omit to act, it means that the party is legally obligated to do so in accordance with this Agreement. Any reference to a statute is deemed also to refer to any amendments or successor
legislation as in effect at the relevant time. Any reference to a contract or other document as of a given date means the contract or other document as amended, supplemented and modified from time to time through such date. 
 6.13 Entire Agreement. This Agreement constitutes the entire agreement among the parties and supersedes any prior and contemporaneous
understandings, agreements or representations by or among the parties, written or oral, with respect to the subject matter of this Agreement. 
 (This space intentionally left blank) 

 The parties have executed and delivered this Agreement as of the date indicated in the first sentence of
this Agreement. 
  

									
	“Seller”	 		 	“Purchaser”
		
	SELECTICA, INC., a Delaware corporation	 	 DAX PARTNERS, LP, a limited partnership
 organized under the laws of the Cayman Islands

					
	By:	 	 /s/    Richard Heaps
	 		 	By:	 	 /s/    Raj Agarwal

	Name:	 	Richard Heaps	 		 	Name:	 	Raj Agarwal
	Title:	 	CFO	 		 	Title:	 	Director

 EXHIBIT A 
 Definitions 
 For the purposes of this Agreement: 
 “Affiliate” means, with respect to a specified Person, a Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with, the specified Person. In addition to the foregoing, if the specified Person is an individual, the term “Affiliate” also includes (a) the individual’s spouse,
(b) the members of the immediate family (including parents, siblings and children) of the individual or of the individual’s spouse and (c) any corporation, limited liability company, general or limited partnership, trust, association
or other business or investment entity that directly or indirectly, through one or more intermediaries controls, is controlled by or is under common control with any of the foregoing individuals. For purposes of this definition, the term
“control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
 “Business Day” means
any day other than Saturday, Sunday or any day on which banking institutions in California, New York or the Cayman Islands are closed either under applicable Law or action of any Governmental Authority. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Contract” means any written contract, agreement, lease, license, commitment, understanding, franchise, warranty, guaranty, mortgage,
note, bond or other instrument or consensual obligation that is legally binding. 
 “Encumbrance” means any charges,
mortgages, pledges, security interests, escrows, options, rights of first refusal, indentures, security agreements or other encumbrances, claims, agreements, arrangements or commitments of any kind or character and whether or not relating in any way
to credit or the borrowing of money. 
 “Governmental Authority” means any (a) federal, state, local, municipal,
foreign or other government, (b) governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, instrumentality or other entity and any court or other tribunal), (c) multinational
organization exercising judicial, legislative or regulatory power or (d) body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power of any nature of any
federal, state, local, municipal, foreign or other government. 
 “Governmental Authorization” means any approval, consent,
ratification, waiver, license, permit, registration or other authorization issued or granted by any Governmental Authority. 
 “Judgment” means any order, injunction, judgment, decree, ruling, assessment or arbitration award of any Governmental Authority or arbitrator. 

 “Knowledge” means, (a) with respect to the Seller, the actual knowledge, without
any obligation of independent investigation, of Brenda Zawatski, Steven Goldner and Richard Heaps, and (b) with respect to the Purchaser, the actual knowledge, without any obligation of independent investigation, of Raj Agarwal. 
 “Law” means any federal, state, local, municipal, foreign, international, multinational, or other constitution, Law, statute, treaty,
rule, regulation, ordinance or code. 
 “Liability” means any liability or obligation, whether known or unknown, absolute or
contingent, accrued or unaccrued, liquidated or unliquidated, due or to become due. 
 “Losses” mean all damages, awards,
Judgments, assessments, fines, penalties, charges, costs, expenses and other payments however suffered or characterized, all interest thereon, all reasonable costs and expenses of investigating any claim, lawsuit or arbitration and any appeal
therefrom, all reasonable attorneys’, accountants’, investment bankers’, and expert witness’ fees incurred in connection therewith, whether or not such claim, lawsuit or arbitration is ultimately defeated and, subject to Article
5, all amounts paid incident to any compromise or settlement of any such claim, lawsuit or arbitration. 
 A violation, circumstance, change,
effect or other matter is deemed to have a “Material Adverse Effect” on the Purchaser, the Seller, or the Company as applicable, if such violation, circumstance, change, effect or other matter would have a material adverse effect on
the ability of such party to perform its obligations under this Agreement or on the ability of such party to consummate the transactions contemplated by this Agreement. 
 “Person” means an individual or an entity, including a corporation, limited liability company, general or limited partnership, trust, association or other business or investment entity, or any
Governmental Authority. 
 “Proceeding” means any action, arbitration, audit, examination, investigation, hearing,
litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, and whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental
Authority or arbitrator. 
 “Taxes” means (a) any federal, state, local, foreign or other tax, charge, fee, duty
(including customs duty), levy or assessment, including any income, gross receipts, net proceeds, alternative or add-on minimum, corporation, ad valorem, turnover, real property, personal property (tangible or intangible), sales, use, franchise,
excise, value added, stamp, leasing, lease, user, transfer, fuel, excess profits, profits, occupational, premium, interest equalization, windfall profits, severance, license, registration, payroll, environmental (including taxes under
Section 59A of the Code), capital stock, capital duty, disability, estimated, gains, wealth, welfare, employee’s income withholding, other withholding, unemployment or social security or other tax of whatever kind (including any fee,
assessment or other charges in the nature of or in lieu of any tax) that is imposed by any Governmental Authority, (b) any interest, fines, penalties or additions resulting from, attributable to, or incurred in connection with any items
described in this paragraph or any related contest or dispute and (c) any Liability for the Taxes of another Person.

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