Document:

Second Amendment, dated as of January 23, 2004, to Lease Agreement

 Exhibit 10.6.2 
  
 SECOND AMENDMENT 
  
 THIS SECOND AMENDMENT (the “Amendment”) is made and entered into as of the 23 day of January, 2004, by and between CA-METRO
PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership (“Landlord”), and LOGICVISION, INC., a Delaware corporation (“Tenant”). 
  

RECITALS 
  
 A. Landlord (as successor in interest to Spieker Properties, L.P.) and Tenant are parties to that certain lease dated August 13, 1998, which lease
has been previously amended by that certain Extension Agreement dated January 17, 2000 (collectively, the “Lease”). Pursuant to the Lease, Landlord has leased to Tenant space currently containing approximately 17,690 rentable square
feet (the “Original Premises”) described as Suite No. 300 on the third floor of the building commonly known as 101 Metro Drive, San Jose, California (the “Building”). The Building is part of a three building office project
commonly known as Metro Plaza (“Project”) 
  
 B.
Tenant and Landlord agree to relocate Tenant from the Original Premises to 17,539 rentable square feet of space in another building within the Project described as Suite No. 300 on the third floor of the building located at 25 Metro Drive
(“New Building”), as shown on Exhibit A attached hereto (the “Substitution Space”). 
  
 C. The Lease by its terms shall expire on March 31, 2005 (“Prior Termination Date”), and the parties desire to extend the Term, all on the
following terms and conditions. 
  
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant agree as follows: 
  
 I. Substitution.

  
 A. Effective as of the Substitution Effective Date
(hereinafter defined), the Substitution Space is substituted for the Premises and, from and after the Substitution Effective Date, the Premises, as defined in the Lease, shall be deemed to mean the Substitution Space containing 17,539
rentable square feet and described as Suite No. 300 on the third floor of the New Building. 
  
 B. The Term for the Substitution Space shall commence on the Substitution Effective Date and, unless sooner terminated pursuant to the terms of the Lease, shall end on the Extended Termination Date (as hereinafter
defined). The Substitution Space is subject to all the terms and conditions of the Lease except as expressly modified herein and except that Tenant shall not be entitled to receive any allowances, abatements or other financial concessions granted
with respect to the Original Premises unless such concessions are expressly provided for herein with respect to the Substitution Space. Effective as of the Substitution Effective Date, the Lease shall be terminated with respect to the Original
Premises, and, unless otherwise specified, “Premises” shall mean the Substitution Space. Tenant shall vacate the Original Premises as of the Substitution Effective Date (such date that Tenant is required to vacate the Original Premises
being referred to herein as the “Original Premises Vacation Date”) and return the same to Landlord in “broom clean” condition and otherwise in accordance with the terms and conditions of the Lease.  
  
 II. Substitution Effective Date.

  
 A. The “Substitution Effective Date” shall be
the later to occur of (i) March 31, 2004 (the “Target Substitution Effective Date”), and (ii) the date upon which the Landlord Work (as defined in the Work Letter attached as Exhibit B hereto) in the Substitution Space has been
substantially completed; provided however, that 

  

 1 

 
if Landlord shall be delayed in substantially completing the Landlord work in the Substitution Space as a result of the occurrence of a Tenant Delay (defined
below), then, for purposes of determining the Substitution Effective Date, the date of substantial completion shall be deemed to be the day that said Landlord Work would have been substantially completed absent any such Tenant Delay(s). A
“Tenant Delay” means any act or omission of Tenant or its agents, employees, vendors or contractors that actually delays substantial completion of the Landlord Work, including, without limitation, the following: 
  
 1. Tenant’s failure to furnish information or approvals
within any time period specified in the Lease or this Amendment, including the failure to prepare or approve preliminary or final plans by any applicable and reasonable due date but not less than two business days; 
  
 2. Tenant’s selection of equipment or materials that
have long lead times after first being informed by Landlord in writing that the selection may result in a delay, unless Landlord determines that such selection of equipment and materials will not affect the Target Substitution Effective Date;

  
 3, Changes requested or made by Tenant to
previously approved plans and specifications, unless the Landlord determines that such changes will not affect the Target Substitution Effective Date; 
  
 4. The performance of work in the Substitution Space by Tenant or Tenant’s contractor(s) during the performance of the Landlord Work
if Landlord informs Tenant in writing of the potential delay which may be caused by Tenant or its contractors and Tenant or its contractor do not cease their work; or 
  
 5. If the performance of any portion of the Landlord Work depends on the prior or simultaneous performance
of work by Tenant, a delay (beyond the parties’ mutually agreed upon time for performance) by Tenant or Tenant’s contractor(s) in the completion of such work. 
  
 The Substitution Space shall be deemed to be substantially completed on the date that Landlord’s architect reasonably
determines that all Landlord Work has been performed (or would have been performed absent any Tenant Delay[s]), other than any details of construction, mechanical adjustment or any other matter, the nonperformance of which does not materially
interfere with Tenant’s use of the Substitution Space. The adjustment of the Substitution Effective Date shall be Tenant’s sole remedy and shall constitute full settlement of all claims that Tenant might otherwise have against Landlord by
reason of the Substitution Space not being ready for occupancy by Tenant on the Target Substitution Effective Date. During any period that the Substitution Effective Date is postponed Tenant shall continue to be obligated to pay Rent for the
Original Premises in accordance with the terms of the Lease, as amended hereby, including the new Rent schedule set forth in Paragraph IV below. 
  
 B. In addition to the postponement, if any, of the Substitution Effective Date as a result of the applicability of Paragraph II.A. of this Amendment, the
Substitution Effective Date shall be delayed to the extent that Landlord fails to deliver possession of the Substitution Space for any other reason (other than Tenant Delays), including, but not limited to, holding over by prior occupants. Any such
delay in the Substitution Effective Date shall not subject Landlord to any liability for any loss or damage resulting therefrom. If the Substitution Effective Date is delayed, the Extended Termination Date shall not be similarly extended.

  
 III. Extension. The
Term of the Lease is extended for a period of 60 months and shall expire on March 31, 2010 (“Extended Termination Date”), unless sooner terminated in accordance with the terms of the Lease. That portion of the Term commencing the day
immediately following the Prior Termination Date (“Extension Date”) and ending on the Extended Termination Date shall be referred to herein as the “Extended Term”. 
  

 2 

 IV. Base Rent. Effective as of April 1, 2004, the schedule of Base Rent
payable with respect to the Premises (i.e., the Original Premises or the Substitution Space, as the case may be) during the remainder of the current Term and the Extended Term is the following: 
  

										
	 Months of Term or Period

	  	 Annual Rate
 Per Square Foot

	  	 Annual
 Base Rent

	  	 Monthly
 Base Rent

	 04/01/04 – 03/31/05
	  	$	14.40	  	$	252,561.60	  	$	21,046.80
	 04/01/05 – 03/31/06
	  	$	14.83	  	$	260,103.36	  	$	21,675.28
	 04/01/06 – 03/31/07
	  	$	15.27	  	$	267,820.56	  	$	22,318.38
	 04/01/07 – 03/31/08
	  	$	15.73	  	$	275,888.52	  	$	22,990.71
	 04/01/08 – 03/31/09
	  	$	16.20	  	$	284,131.80	  	$	23,677.65
	 04/01/09 – 03/31/10
	  	$	16.69	  	$	292,725.96	  	$	24,393.83

  
 All such Base Rent
shall be payable by Tenant in accordance with the terms of the Lease. 
  
 V. Reduction of Security Deposit. Subject to the remaining terms of this Paragraph, Tenant shall have the right to reduce the amount of the Security Deposit (i.e., $191,052.00) held by Landlord pursuant to
Section 19 of the Lease so that the new Security Deposit amount will be $23,677.65 if, following the Substitution Effective Date, Tenant’s CPA certified or reviewed financial statements indicate Tenant has posted net profits under GAAP for
three (3) consecutive quarters. However, notwithstanding anything to the contrary contained herein, if Tenant has been in default under this Lease at any time prior to the effective date of any reduction of the Original Deposit and Tenant has failed
to cure such default within any applicable cure period, then Tenant shall have no right to reduce the amount of the Security Deposit as described herein. 
  
 If Tenant is entitled to a reduction in the Security Deposit, Tenant shall provide Landlord with written notice requesting that the Security Deposit be
reduced as provided above, along with financial statements evidencing Tenant’s right to reduce the Security Deposit in form and substance reasonably satisfactory to Landlord (the “Reduction Notice”). If Tenant provides Landlord with a
Reduction Notice, and Tenant is entitled to reduce the Security Deposit as provided herein, Landlord shall refund the applicable portion of the Security Deposit to Tenant within 30 days after the later to occur of (a) Landlord’s receipt of the
Reduction Notice, or (b) the date upon which Tenant is entitled to a reduction in the Security Deposit as provided above. 
  
 VI. Tenant’s Proportionate Share. For the period commencing with the Substitution Effective Date and ending on the Extended
Termination Date, Tenant’s Proportionate Share for the Premises is 4.25%. For purposes of determining Tenant’s Proportionate Share, the 3 office buildings located at 25 Metro Drive, 101 Metro Drive, and 181 Metro Drive, all located in San
Jose, California, shall be treated as a single building for purposes of obtaining or providing services or otherwise determining Operating Expenses. Tenant’s Proportionate Share with respect to the Premises reflects the combined rentable area
in the foregoing buildings, collectively. However, notwithstanding the foregoing, if one or more buildings are removed from the group of buildings as described above, whether as a result of a sale or demolition of the building(s) or otherwise, or if
one or more buildings owned by Landlord are added to the group of buildings as described above, then Tenant’s Proportionate Share with respect to the Premises shall be appropriately modified or adjusted to reflect the deletion or addition of
such buildings. 
  
 VII. Expenses and
Taxes. For the period commencing with the Substitution Effective Date and ending on the Extended Termination Date, Tenant shall pay for Tenant’s Proportionate Share of Operating Expenses applicable to the Premises in accordance
with the terms of the Lease, as amended hereby. 
  
 VIII.
Improvements to Substitution Space. 
  
 A. Condition of Substitution Space. Tenant has inspected the Substitution Space and agrees to accept the same “as is” without any agreements, representations, understandings or obligations on the part
of Landlord to perform any alterations, repairs or improvements, except as may be expressly provided otherwise in this Amendment, including but no limited to Paragraph VIII.B. 
  

 3 

 B. Responsibility for Improvements to Substitution Space. Landlord shall perform improvements to
the Substitution Space in accordance with the Work Letter attached hereto as Exhibit B. 
  
 IX. Early Access to Substitution Space. During any period that Tenant shall be permitted to enter the Substitution Space prior to the Substitution Effective Date (e.g., to
perform alterations or improvements), if any, Tenant shall comply with all terms and provisions of the Lease, except those provisions requiring payment of Base Rent or Additional Rent as to the Substitution Space. If Tenant takes possession of the
Substitution Space prior to the Substitution Effective Date for any reason whatsoever (other than the performance of work in the Substitution Space with Landlord’s prior approval), such possession shall be subject to all the terms and
conditions of the Lease and this Amendment, and Tenant shall pay Base Rent and Additional Rent as applicable to the Substitution Space to Landlord on a per diem basis for each day of occupancy prior to the Substitution Effective Date.
Notwithstanding the foregoing, but subject to the terms of the Lease, as amended hereby, Landlord grants Tenant the right to enter the Premises, at Tenant’s sole risk, on or after the date which is three weeks prior to the Substitution
Effective Date solely for the purpose of installing telecommunications and data cabling, equipment, furnishings and other personalty. Landlord may withdraw such permission to enter the Premises prior to the Substitution Effective Date at any time
that Landlord reasonably determines that such entry by Tenant is causing a dangerous situation for Landlord, Tenant or their respective contractors or employees, or if Landlord reasonably determines that such entry by Tenant is hampering or
otherwise preventing Landlord from proceeding with the completion of Landlord’s work described in Exhibit B at the earliest possible date. Tenant shall not be required to pay Rent with respect to the Substitution Space for any days of
possession before April 1, 2004, during which Tenant is in possession of the Premises for the purpose described in the preceding sentence. 
  
 X. Holding Over. Landlord and Tenant agree that Tenant requires five (5) business days in order to move from the Original Premises into the
Substitution Space. Accordingly, the parties agree that Landlord will make the Substitution Space available for Tenant to move into such space at least five (5) business days prior to the Substitution Effective Date. Landlord shall therefore give
Tenant five (5) business days written notice prior to the Substitution Effective Date so as to notify Tenant of the availability of the Substitution Space for purposes of Tenant’s move into the Substitution Space (“Availability
Notice”). If, following Landlord’s delivery of the Availability Notice, Tenant continues to occupy the Original Premises for a period in excess of five (5) days following the Original Premises Vacation Date (as defined in Section I above),
occupancy of the Original Premises subsequent to such date shall be that of a tenancy at sufferance and in no event for month-to-month or year-to-year, but Tenant shall, throughout the entire holdover period, be subject to all the terms and
provisions of the Lease and shall pay for its use and occupancy an amount (on a per month basis without reduction for any partial months during any such holdover, and in addition to Base Rent payable by Tenant for the Substitution Space) equal to
150% of the sum of the Base Rent and Additional Rent due for the period immediately preceding such holding over, provided that in no event shall Base Rent and Additional Rent during the holdover period be less than the fair market rental for the
Original Premises. No holding over by Tenant in the Original Premises or payments of money by Tenant to Landlord after the Original Premises Vacation Date shall be construed to prevent Landlord from recovery of immediate possession of the Original
Premises by summary proceedings or otherwise. In addition to the obligation to pay the amounts set forth above during any such holdover period, Tenant also shall be liable to Landlord for all damage, including any consequential damage, which
Landlord may suffer by reason of any holding over by Tenant in the Original Premises beyond the date which is five (5) days following the Original Premises Vacation Date, and Tenant shall indemnify Landlord against any and all claims made by any
other tenant or prospective tenant against Landlord for delay by Landlord in delivering possession of the Original Premises to such other tenant or prospective tenant. 
  

 4 

 XI. Other Pertinent Provisions. Landlord and Tenant agree that, effective as
of the date of this Amendment (unless different effective date(s) is/are specifically referenced in this Section), the Lease shall be amended in the following additional respects: 
  
 A. Landlord’s Notice Address. The addresses for Landlord set forth in the Basic Lease Information of the Lease
are hereby deleted in their entireties and replaced with the following: 
  
 “Landlord: 
 CA-Metro Plaza Limited Partnership 
 c/o Equity Office 
 1740 Technology Drive, Suite 150 
 San Jose, California 95110 
 Attention: Metro Plaza Property Manger 
  
 A copy of any notices to Landlord shall be sent to Equity Office, 1740 Technology Drive, Suite 150, San Jose, CA 95110, Attn: San Jose Regional Counsel.
Rent and all other sums payable by Tenant to Landlord pursuant to this Lease shall be payable to the entity, and sent to the address, Landlord designates from time to time.” 
  
 B. After Hours HVAC. As of the date hereof, Landlord’s charge for after hours heating and air conditioning
service is $35.00 per hour, subject to change from time to time. 
  
 C. Furniture. Tenant shall have the right to use the furniture located in the Substitution Space as of the date hereof (the “Furniture”) during the term of the Lease, as it may be extended hereby, at no additional cost
except as hereinafter provided. Tenant agrees that the Furniture is in its “as is” condition and in good order and satisfactory condition, and that there are no representations or warranties by Landlord regarding the suitability for
Tenant’s use, the condition or any other matter relating to the Furniture. Tenant, at its sole cost and expense, shall maintain the Furniture in good condition and repair during the Term and in accordance with the conditions and requirements
described in any warranties issued by the manufacturer of the Furniture and delivered to Tenant. In the event of any damage to the Furniture, Tenant shall provide written notice to Landlord of such damage and Tenant shall make any and all repairs
that are necessary at Tenant’s sole cost and expense. At all times during the Term, Tenant shall cause the Furniture to be insured pursuant to the provisions of the Lease. Tenant agrees that notwithstanding anything to the contrary contained in
this Lease, the Furniture is owned by Landlord; provided, however, ownership of the Furniture shall transfer to Tenant upon the expiration of the Term so long as Tenant has not been in default under the Lease beyond any applicable notice and cure
period. Tenant, at Tenant’s sole cost, shall relocate or dispose of any Furniture Tenant does not desire to use in the Premises. 
  
 XII. Renewal Option. 
  
 A. Grant of Option; Conditions. Tenant shall have the right to extend the Extended Term (the “Renewal Option”) for one additional
period of 3 years commencing on the day following the Extended Termination Date and ending on the third anniversary of the Extended Termination Date (the “Renewal Term”), if: 
  
 1. Landlord receives notice of exercise (“Initial
Renewal Notice”) not less than 6 full calendar months prior to the expiration of the Extended Term and not more than 12 full calendar months prior to the expiration of the Extended Term; and 
  
 2. Tenant is not in default under the Lease, as amended
hereby, beyond any applicable cure periods at the time that Tenant delivers its Initial Renewal Notice or at the time Tenant delivers its Binding Notice (as defined below); and 
  
 3. No more than 40% of the rentable square footage of the Premises is sublet at the time that Tenant
delivers its Initial Renewal Notice or at the time Tenant delivers its Binding Notice; and 
  
 4. The Lease has not been assigned prior to the date that Tenant delivers its Initial Renewal Notice or prior to the date Tenant delivers
its Binding Notice. 
  

 5 

 B. Terms Applicable to Premises During Renewal Term. 
  
 1. The initial Rent rate per rentable square foot for the
Premises during the Renewal Term shall equal 95% of the Prevailing Market (hereinafter defined) rate per rentable square foot for the Premises. Rent during the Renewal Term shall increase in accordance with the increases assumed in the determination
of Prevailing Market rate. Rent attributable to the Premises shall be payable in monthly installments in accordance with the terms and conditions of the Lease. 
  

2. Tenant shall pay Additional Rent (i.e. Operating Expenses) for the Premises during the Renewal Term in accordance with Paragraph 7
of the Lease, and the manner and method in which Tenant reimburses Landlord for Tenant’s Proportionate Share of Operating Expenses shall be one of the factors considered in determining the Prevailing Market rate for the Renewal Term.

  
 C. Procedure for Determining Prevailing Market. Within
30 days after receipt of Tenant’s Initial Renewal Notice, Landlord shall advise Tenant of the applicable Rent rate for the Premises for the Renewal Term. Tenant, within 15 days after the date on which Landlord advises Tenant of the applicable
Rent rate for the Renewal Term, shall either (i) give Landlord final binding written notice (“Binding Notice”) of Tenant’s exercise of its Renewal Option, or (ii) if Tenant disagrees with Landlord’s determination,
provide Landlord with written notice of rejection (the “Rejection Notice”). If Tenant fails to provide Landlord with either a Binding Notice or Rejection Notice within such 15 day period, Tenant’s Renewal Option shall be null
and void and of no further force and effect. If Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined below) upon the terms and conditions set forth herein. If Tenant provides Landlord
with a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the Prevailing Market rate for the Premises during the Renewal Term. Upon agreement, Tenant shall provide Landlord with Binding Notice and Landlord and
Tenant shall enter into the Renewal Amendment in accordance with the terms and conditions hereof. Notwithstanding the foregoing, if Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Premises within 30 days after the
date on which Tenant provides Landlord with a Rejection Notice, Tenant’s Renewal Option shall be null and void and of no force and effect. 
  
 D. Renewal Amendment. If Tenant is entitled to and properly exercises its Renewal Option, Landlord shall prepare an amendment (the
“Renewal Amendment”) to reflect changes in the Rent, Extended Term, Extended Termination Date and other appropriate terms. The Renewal Amendment shall be sent to Tenant within a reasonable time after receipt of the Binding
Notice and Tenant shall execute and return the Renewal Amendment to Landlord within 15 days after Tenant’s receipt of same, but, upon final determination of the Prevailing Market rate applicable during the Renewal Term as described herein, an
otherwise valid exercise of the Renewal Option shall be fully effective whether or not the Renewal Amendment is executed. 
  
 E. Definition of Prevailing Market. For purposes of this Renewal Option, “Prevailing Market” shall mean the arms length fair
market annual rental rate per rentable square foot under renewal leases and amendments entered into on or about the date on which the Prevailing Market is being determined hereunder for space comparable to the Premises in the Project and office
buildings comparable to the Project in the San Jose airport area. The determination of Prevailing Market shall take into account any material economic differences between the terms of the Lease and any comparison lease or amendment, such as rent
abatements, construction costs and other concessions and the manner, if any, in which the landlord under any such lease is reimbursed for operating expenses and taxes. The determination of Prevailing Market shall also take into consideration any
reasonably anticipated changes in the Prevailing Market rate from the time such Prevailing Market rate is being determined and the time such Prevailing Market rate will become effective under the Lease.  
  
 XIII. Miscellaneous. 
  
 A. This Amendment, and Exhibits A and B attached hereto which are hereby
incorporated and made a part of this Amendment, set forth the entire agreement between the parties with respect to the matters set forth herein. There have been no additional oral or written representations or agreements. Under no circumstances
shall 

  

 6 

 
Tenant be entitled to any Rent abatement, improvement allowance, leasehold improvements, or other work to the Substitution Space, or any similar economic
incentives that may have been provided Tenant in connection with entering into the Lease, unless specifically set forth in this Amendment. 
  
 B. Except as herein modified or amended, the provisions, conditions and terms of the Lease shall remain unchanged and in full force and effect.

  
 C. In the case of any inconsistency between the provisions of
the Lease and this Amendment, the provisions of this Amendment shall govern and control. 
  
 D. Submission of this Amendment by Landlord is not an offer to enter into this Amendment but rather is a solicitation for such an offer by Tenant. Landlord shall not be bound by this Amendment until Landlord has
executed and delivered the same to Tenant. 
  
 E. The capitalized
terms used in this Amendment shall have the same definitions as set forth in the Lease to the extent that such capitalized terms are defined therein and not redefined in this Amendment. 
  
 F. Tenant hereby represents to Landlord that Tenant has dealt with no broker in connection with this Amendment other than
Cresa Partners. Tenant agrees to indemnify and hold Landlord, its members, principals, beneficiaries, partners, officers, directors, employees, mortgagee(s) and agents, and the respective principals and members of any such agents (collectively, the
“Landlord Related Parties”) harmless from all claims of any other brokers claiming to have represented Tenant in connection with this Amendment. Landlord hereby represents to Tenant that Landlord has dealt with no broker in connection with
this Amendment. Landlord agrees to indemnify and hold Tenant, its members, principals, beneficiaries, partners, officers, directors, employees, and agents, and the respective principals and members of any such agents (collectively, the “Tenant
Related Parties”) harmless from all claims of any brokers claiming to have represented Landlord in connection with this Amendment. 
  
 G. Each signatory of this Amendment represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for
which such signatory is acting. 
  
 [SIGNATURES ARE ON FOLLOWING
PAGE] 
  

 7 

 IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Amendment as of the day and year
first above written. 
  

											
	 	 	 	 	LANDLORD:
			
	 	 	 	 	 CA-METRO PLAZA LIMITED PARTNERSHIP,
 a Delaware limited partnership

				
	 	 	 	 	 By:
	 	EOM GP, L.L.C., a Delaware limited liability company, its general partner
					
	 	 	 	 	 	 	 By:
	 	Equity Office Management, L.L.C., a Delaware limited liability company, its non-member manager
						
	 	 	 	 	 	 	 	 	 By:
	 	 /s/    JOHN W.
PETERSEN        

	 	 	 	 	 	 	 	 	Name:	 	John W. Petersen
	 	 	 	 	 	 	 	 	Title:	 	Regional Senior Vice President
			
	 	 	 	 	TENANT:
			
	 	 	 	 	LOGICVISION, INC., a Delaware corporation
				
	 	 	 	 	 By:
	 	 /s/    BRUCE M.
JAFFE        

	 	 	 	 	Name:	 	Bruce M. Jaffe
	 	 	 	 	Title:	 	Vice President

  

 8 

 EXHIBIT A 
  

OUTLINE AND LOCATION OF SUBSTITUTION SPACE 
  
  
 [FLOORPLAN] 
  

 1 

 EXHIBIT B 
  

WORK LETTER 
  
 This Exhibit (this “Work Letter”) by and between CA-METRO PLAZA LIMITED PARTNERSHIP, a Delaware limited partnership
(“Landlord”), and LOGICVISION, INC., a Delaware corporation (“Tenant”) for space in the building located at 25 Metro Drive, San Jose, California. 
  
 As used in this Work Letter, the “Premises” shall be deemed to mean the Substitution Space, as defined in the
attached Amendment. 
  
 1. This Work Letter shall set forth the
obligations of Landlord and Tenant with respect to the improvements to be performed in the Premises for Tenant’s use. All improvements described in this Work Letter to be constructed in and upon the Premises by Landlord are hereinafter referred
to as the “Landlord Work.” It is agreed that construction of the Landlord Work will be completed at Landlord’s sole cost and expense (subject to the Maximum Amount and further subject to the terms of Paragraph 5 below), using Building
Standard methods, materials, and finishes. Notwithstanding the foregoing, Landlord and Tenant acknowledge that Plans (hereinafter defined) for the Landlord Work have not yet been prepared and, therefore, it is impossible to determine the exact cost
of the Landlord Work at this time. Accordingly, Landlord and Tenant agree that Landlord’s obligation to pay for the cost of Landlord Work (inclusive of the cost of preparing Plans, obtaining permits and other related costs) shall be limited to
$122,773.00 (i.e., $7.00 per rentable square foot of the Premises) (the “Maximum Amount”) and that Tenant shall be responsible for the cost of Landlord Work, plus any applicable state sales or use tax, if any, to the extent that it exceeds
the Maximum Amount. Landlord shall enter into a direct contract for the Landlord Work with McLarney Construction. In addition, Landlord shall have the right to select and/or approve of any subcontractors used in connection with the Landlord Work.

  
 2. The architectural, electrical and mechanical construction
drawings, plans and specifications (called “Plans”) necessary to construct the Landlord Work shall be prepared by Reel Grobman (“Architect”) pursuant to a direct contract between Landlord and Architect. Tenant shall be
responsible for all elements of the design of Tenant’s plans (including, without limitation, compliance with law, functionality of design, the structural integrity of the design, the configuration of the Premises and the placement of
Tenant’s furniture, appliances and equipment), and Landlord’s contract with Architect shall in no event relieve Tenant of the responsibility for such design. 
  
 3. If Landlord’s estimate and/or the actual cost of the Landlord Work shall exceed the Maximum Amount, Landlord, prior
to commencing any construction of Landlord Work, shall submit to Tenant a written estimate setting forth the anticipated cost of the Landlord Work, including but not limited to labor and materials, contractor’s fees and permit fees. Within 5
Business Days thereafter, Tenant shall either notify Landlord in writing of its approval of the cost estimate, or specify its objections thereto and any desired changes to the proposed Landlord Work. If Tenant notifies Landlord of such objections
and desired changes, Tenant shall work with Landlord to reach a mutually acceptable alternative cost estimate. 
  
 4. If Landlord’s estimate and/or the actual cost of construction shall exceed the Maximum Amount (such amounts exceeding the Maximum Amount being
herein referred to as the “Excess Costs”), Tenant shall pay to Landlord such Excess Costs, plus any applicable state sales or use tax thereon, upon demand. The statements of costs submitted to Landlord by Landlord’s contractors shall
be conclusive for purposes of determining the actual cost of the items described therein. The amounts payable by Tenant hereunder constitute Rent payable pursuant to the Lease, and the failure to timely pay same constitutes an event of default under
the Lease. 
  
 5. If Tenant shall request any change, addition or
alteration in any of the Plans after approval by Landlord, Landlord shall have such revisions to the drawings prepared, and Tenant shall reimburse Landlord for the cost thereof, plus any applicable state sales or use tax thereon, upon demand to the
extent that the cost of performing such revisions cause the cost of Landlord Work to exceed the Maximum Amount. Promptly upon completion of the revisions, Landlord shall notify Tenant in writing of the increased cost, if any, which will be
chargeable to 

  

 1 

 
Tenant by reason of such change, addition or deletion. Tenant, within 3 Business Days, shall notify Landlord in writing whether it desires to proceed with
such change, addition or deletion. In the absence of such written authorization, Landlord shall have the option to continue work on the Premises disregarding the requested change, addition or alteration, or Landlord may elect to discontinue work on
the Premises until it receives notice of Tenant’s decision, in which event Tenant shall be responsible for any Tenant Delay in completion of the Premises resulting therefrom. If such revisions result in a higher estimate of the cost of
construction and/or higher actual construction costs which exceed the Maximum Amount, such increased estimate or costs shall be deemed Excess Costs pursuant to Paragraph 4 hereof and Tenant shall pay such Excess Costs, plus any applicable state
sales or use tax thereon, upon demand. 
  
 6. Following approval
of the Plans and the payment by Tenant of the required portion of the Excess Costs, if any, Landlord shall cause the Landlord Work to be constructed substantially in accordance with the approved Plans. Landlord shall notify Tenant of substantial
completion of the Landlord Work. 
  
 7. Any portion of the Maximum
Amount which exceeds the cost of the Landlord Work or is otherwise remaining after March 31, 2004 (“Unused Allowance”) shall accrue to the sole benefit of Landlord, it being agreed that, except as expressly provided herein, Tenant shall
not be entitled to any credit, offset, abatement or payment with respect thereto. 
  
 8. Notwithstanding anything to the contrary in this Work Letter, and provided Tenant is not in default under the Lease, as amended hereby, beyond any applicable notice and cure period, Tenant shall have the option to
increase the Maximum Amount up to the maximum sum of $210,468 (i.e., by an additional $5.00 per rentable square foot) (“Increased Maximum Amount”) by delivering written notice of such option to Landlord no later than March 31, 2004, which
notice shall specify the Increased Maximum Amount. Each dollar per rentable square foot (i.e., $17,539.00) by which the Increased Maximum Amount exceeds the original Maximum Amount shall result in an increase in Base Rent equal to $0.0189 per square
foot per month. For example, if Tenant requests that the Maximum Amount be increased by $100,000.00, then Tenant’s Base Rent shall be increased by $.1077 per square foot per months as follows: $100,000/17,539 = 5.70; 5.70 x .0189 =
$.1077. If Tenant properly exercises its option hereunder, Landlord shall prepare an amendment to the Lease reflecting the increases in Base Rent. 
  
 9. This Work Letter shall not be deemed applicable to any additional space added to the Premises at any time or from time to time, whether by any options
under the Lease or otherwise, or to any portion of the original Premises or any additions to the Premises in the event of a renewal or extension of the original Term of the Lease, whether by any options under the Lease or otherwise, unless expressly
so provided in the Lease or any amendment or supplement to the Lease. 
  

 2Amended and Restated Loan Agreement

 EXHIBIT 10.10.3 
  
 LOGICVISION, INC 
  
 SECOND AMENDED AND RESTATED LOAN AGREEMENT 
  
 THIS SECOND AMENDED AND RESTATED LOAN
AGREEMENT (the “Agreement”) is entered into as of February 9, 2004, by and between COMERICA BANK, successor by merger to Comerica Bank-California
(“Bank”) and LOGICVISION, INC. (“Borrower”). 
  
 RECITALS 
  
 A. Bank and Borrower are parties to that certain Amended and Restated Loan and Security Agreement dated as of December 19, 2001, as amended by First Amendment to Loan and Security Agreement dated as of June 25,
2002, Second Amendment to Loan and Security Agreement dated as of August 6, 2002, Third Amendment to Loan Agreement dated as of December 16, 2002, Fourth Amendment to Loan Agreement dated as of February 11, 2003, and Fifth Amendment to Loan
Agreement dated as of August 26, 2003 (collectively, the “Original Loan Agreement”). Pursuant to the Original Loan Agreement, Borrower issued a Revolving Promissory Note to Bank dated December 19, 2001 in the original principal amount of
$5,000,000 (the “Original Note”) (the Original Loan Agreement and the Original Note, collectively, the “Original Loan Documents”). 
  
 B. Borrower and Bank wish to amend and restate the terms of the Original Loan Documents. This Agreement sets forth the terms on which Bank will
advance credit to Borrower, and Borrower will repay the amounts owing to Bank. 
  
 AGREEMENT 
  
 The parties agree as follows: 
  
 1. DEFINITIONS
AND CONSTRUCTION. 
  
 1.1
Definitions. As used in this Agreement, the following terms shall have the following definitions: 
  
 “Accounts” means all presently existing and hereafter arising accounts, contract rights, and all other forms of
obligations owing to Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other technology) or the rendering of services by Borrower, whether or not earned by performance, and any and all
credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s Books relating to any of the foregoing. 
  
 “Advance” or “Advances” means a cash advance or cash
advances under the Revolving Facility. 
  
 “Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls or is controlled by or is under common control with such Person, and each
of such Person’s senior executive officers, directors, and partners. 
  
 “Bank Expenses” means all: reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in connection with the preparation, negotiation, administration, and
enforcement of the Loan Documents; and Bank’s reasonable attorneys’ fees and expenses incurred in amending, enforcing or defending the Loan Documents (including fees and expenses of appeal), incurred before, during and after an Insolvency
Proceeding, whether or not suit is brought. 
  
 “Borrower’s Books” means all of Borrower’s books and records including: ledgers; records concerning Borrower’s assets or liabilities, business operations or financial condition; and all computer
programs, or tape files, and the equipment, containing such information. 
  

 1 

 “Business Day” means any day that is not a Saturday, Sunday, or
other day on which banks in the State of California are authorized or required to close. 
  
 “Change in Control” shall mean a transaction in which any “person” or “group” (within the
meaning of Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of
all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors, empowering such “person” or “group” to elect a majority of the Board of Directors of Borrower, who did not have such
power before such transaction. 
  
 “Closing Date” means the date of this Agreement. 
  
 “Code” means the California Uniform Commercial Code. 
  
 “Contingent Obligation” means, as
applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such
obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters
of credit issued for the account of that Person; and (iii) all obligations arising under any interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designed
to protect such a Person against fluctuation in interest rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the
guarantee or other support arrangement. 
  
 “Credit Card Services” has the meaning set forth in Section 2.1(b). 
  
 “Credit Extension” means each Advance, Credit Card Services, Letter of Credit, Exchange Contract, or any other
extension of credit by Bank for the benefit of Borrower hereunder. 
  
 “Daily Balance” means the amount of the Obligations owed at the end of a given day. 
  
 “Deferred Revenue” means all amounts received under contracts and not yet recognized as revenue, as reported in
Borrower’s financial statements filed with the Securities and Exchange Commission. 
  
 “Equipment” means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles,
tools, parts and attachments in which Borrower has any interest. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder. 
  
 “Event of Default” has the meaning assigned in Article 8. 
  
 “Exchange Contracts” has the meaning
assigned in Section 2.1(d). 
  
 “GAAP” means generally accepted accounting principles as in effect from time to time. 
  
 “Indebtedness” means (a) all indebtedness for borrowed money or the deferred purchase price of property or
services, including without limitation reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all capital lease obligations and
(d) all Contingent Obligations. 
  
 “Insolvency Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States Bankruptcy Code, as amended, or under any other bankruptcy or 

  

 2 

 
insolvency law, including assignments for the benefit of creditors, formal or informal moratoria, compositions, extension generally with its creditors, or
proceedings seeking reorganization, arrangement, or other relief. 
  
 “Inventory” means all present and future inventory in which Borrower has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and
finished products intended for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned by or in the custody or possession, actual or constructive, of Borrower, including such
inventory as is temporarily out of its custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents
of title representing any of the above, and Borrower’s Books relating to any of the foregoing. 
  
 “Investment” means any beneficial ownership of (including stock, partnership interest or other securities) any
Person, or any loan, advance or capital contribution to any Person. 
  
 “IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder. 
  
 “Lien” means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

  
 “Loan Documents”
means, collectively, this Agreement, the Note and any other note or notes executed by Borrower, and any other agreement entered into between Borrower and Bank in connection with this Agreement, all as amended or extended from time to time.

  
 “Material Adverse
Effect” means a material adverse effect on (i) the business operations or condition (financial or otherwise) of Borrower and its Subsidiaries taken as a whole or (ii) the ability of Borrower to repay the Obligations or otherwise perform
its obligations under the Loan Documents. 
  
 “Note” means the Amended and Restated Revolving Promissory Note attached hereto as Exhibit B. 
  
 “Obligations” means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrower
pursuant to this Agreement or any other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest that accrues after the commencement of an Insolvency Proceeding and including any
debt, liability, or obligation owing from Borrower to others that Bank may have obtained by assignment or otherwise. 
  
 “Periodic Payments” means all installments or similar recurring payments that Borrower may now or hereafter become
obligated to pay to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrower and Bank. 
  
 “Permitted Indebtedness” means: 
  
 (a) Indebtedness of Borrower in favor of Bank arising under this Agreement or any other Loan
Document; 
  
 (b) Indebtedness existing on
the Closing Date and disclosed in the Schedule; 
  
 (c) Indebtedness secured by a lien described in clause (c) of the defined term “Permitted Liens,” subject to Section 7.13 of this Agreement, and provided such Indebtedness does not exceed the lesser of the cost or fair
market value of the equipment financed with such Indebtedness; and 
  
 (d) Subordinated Debt. 
  
 “Permitted Investment” means: 
  
 (a) Investments existing on the Closing Date disclosed in the Schedule; and 
  
 (b) (i) marketable direct obligations issued or
unconditionally guaranteed by the United States of America or any agency or any State thereof, (ii) commercial paper currently having rating of at least A-2 or P-2 from either Standard & Poor’s Corporation or Moody’s Investors Service,
(iii) certificates 

  

 3 

 
of deposit and (iv) Bank’s money market accounts, provided in each case that such investments are considered “Available for Sale” or
“Held-to-Maturity” Investments” under GAAP and Financial Accounting Standards Board 115. 
  
 “Permitted Liens” means the following: 
  
 (a) Any Liens existing on the Closing Date and disclosed in the Schedule; 
  
 (b) Liens for taxes, fees, assessments or other
governmental charges or levies, either not delinquent or being contested in good faith by appropriate proceedings; 
  
 (c) Liens (i) upon or in any equipment acquired or held by Borrower or any of its Subsidiaries to secure the purchase price of such
equipment or indebtedness incurred solely for the purpose of financing the acquisition of such equipment, or (ii) existing on such equipment at the time of its acquisition, provided that the Lien is confined solely to the property so acquired
and improvements thereon, and the proceeds of such equipment; 
  
 (d) Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described in clauses (a) through (c) above, provided that any extension,
renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase; and 
  
 (e) other Liens incurred in the regular course of
Borrower’s business not to exceed $50,000 in the aggregate at any given time, provided that no federal, state or other governmental agency is the lienholder or secured party for such Liens, except as otherwise permitted in this
definition. 
  
 “Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or
governmental agency. 
  
 “Prime
Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,” whether or not such announced rate is the lowest rate available from Bank. 
  
 “Responsible Officer” means each of
the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller of Borrower. 
  
 “Revolving Facility” means the facility under which Borrower may request Bank to issue Advances, as specified in
Section 2.1(a) hereof. 
  
 “Revolving
Line” means a credit extension of up to Five Million Dollars ($5,000,000). 
  
 “Revolving Maturity Date” means January 31, 2005. 
  
 “Schedule” means the schedule of exceptions attached hereto and approved by Bank, if
any. 
  
 “Subordinated
Debt” means any debt incurred by Borrower that is subordinated to the debt owing by Borrower to Bank on terms reasonably acceptable to Bank (and identified as being such by Borrower and Bank). 
  
 “Subsidiary” means any corporation,
company or partnership in which (i) any general partnership interest or (ii) more than 50% of the stock or other units of ownership which by the terms thereof has the ordinary voting power to elect the Board of Directors, managers or trustees of the
entity, at the time as of which any determination is being made, is owned by Borrower, either directly or through an Affiliate. 
  
 “Tangible Net Worth” means at any date as of which the amount thereof shall be determined, the sum of the capital
stock and additional paid-in capital plus retained earnings (or minus accumulated deficit) of Borrower and its Subsidiaries minus intangible assets, plus Subordinated Debt, on a consolidated basis determined in accordance with GAAP. 
  
 “Total Liabilities” means at any
date as of which the amount thereof shall be determined, all obligations that should, in accordance with GAAP be classified as liabilities on the consolidated balance sheet of Borrower, including in any event all Indebtedness. 
  

 4 

 1.2 Accounting Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP and all calculations made hereunder shall be made in accordance with GAAP. When used herein, the terms “financial statements” shall include the notes and schedules thereto. 
  
 2. LOAN AND TERMS OF
PAYMENT. 
  
 2.1 Credit Extensions.
Borrower promises to pay to the order of Bank, in lawful money of the United States of America, the aggregate unpaid principal amount of all Credit Extensions made by Bank to Borrower hereunder. Borrower shall also pay interest on the unpaid
principal amount of such Credit Extensions at rates in accordance with the terms hereof. 
  
 (a) Revolving Advances. 
  
 (i) Subject to and upon the terms and conditions of this Agreement, Borrower may request Advances in an aggregate outstanding
amount not to exceed the Revolving Line minus the aggregate face amount of all outstanding Letters of Credit and amounts outstanding under the Foreign Exchange Sublimit. Subject to the terms and conditions of this Agreement, amounts borrowed
pursuant to this Section 2.1(a) may be repaid and reborrowed at any time prior to the Revolving Maturity Date, at which time all Advances under this Section 2.1(a) shall be immediately due and payable. Borrower may prepay any Advances without
penalty or premium. 
  
 (ii) Whenever
Borrower desires an Advance, Borrower will notify Bank by facsimile transmission or telephone no later than 3:00 p.m. Pacific time, on the Business Day that the Advance is to be made. Each such notification shall be promptly confirmed by a
Payment/Advance Form in substantially the form of Exhibit A hereto. Bank is authorized to make Advances under this Agreement, based upon instructions received from a Responsible Officer or a designee of a Responsible Officer, or without instructions
if in Bank’s discretion such Advances are necessary to meet Obligations which have become due and remain unpaid. Bank shall be entitled to rely on any telephonic notice given by a person who Bank reasonably believes to be a Responsible Officer
or a designee thereof, and Borrower shall indemnify and hold Bank harmless for any damages or loss suffered by Bank as a result of such reliance. Bank will credit the amount of Advances made under this Section 2.1(a) to Borrower’s deposit
account. The obligation to repay the Advances is evidenced by this Agreement and the Note. 
  
 (b) Credit Card Sublimit. Subject to the terms and conditions of this Agreement and provided that there is
availability under the Revolving Line, Borrower may request corporate credit cards from Bank (the “Credit Card Services”). The aggregate limit of the corporate credit cards shall not exceed One Hundred Thousand Dollars ($100,000) at any
time (the “Credit Card Services Sublimit”), provided that availability under the Revolving Line shall be reduced by the aggregate limits of the corporate credit cards issued to Borrower. In addition, upon the occurrence and during
the continuance of an Event of Default, Bank may, in its sole discretion, charge as Advances any amounts that become due or owing to Bank in connection with the Credit Card Services. All amounts owed pursuant to the Credit Card Services Sublimit
shall be debited monthly from Borrower’s checking account with Bank. The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of the Bank’s standard forms of
application and agreement for the Credit Card Services, which Borrower hereby agrees to execute. All corporate credit cards will be cancelled on and no further Credit Card Services will be provided after the Revolving Maturity Date. 
  
 (c) Letters of Credit Sublimit. 
  
 (i) Subject to the terms and conditions of this
Agreement, Bank agrees to issue or cause to be issued letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, the “Letters of Credit”) in an aggregate outstanding face amount not to exceed the
Revolving Line minus the aggregate amount of the outstanding Advances at any time, provided that the aggregate face amount of all outstanding Letters of Credit shall not exceed Five Hundred Thousand Dollars 

  

 5 

 
($500,000). All Letters of Credit shall be, in form and substance, acceptable to Bank in its sole discretion and shall be subject to the terms and conditions
of Bank’s form of standard application and letter of credit agreement (the “Application”), which Borrower hereby agrees to execute, including Bank’s standard fee per annum on the face amount of each Letter of Credit. On any drawn
but unreimbursed Letter of Credit, the unreimbursed amount shall be deemed an Advance under Section 2.1(a). No Letter of Credit shall have an expiration date which is later than (i) the Revolving Maturity Date unless Borrower secures in cash the
obligations under such Letter of Credit on terms acceptable to Bank, or (ii) one hundred twenty (120) days from the date of its issuance. 
  
 (ii) The obligation of Borrower to reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, the Application, and such Letters of Credit, under all circumstances whatsoever. Borrower shall indemnify, defend, protect, and hold Bank harmless from any
loss, cost, expense or liability, including, without limitation, reasonable attorneys’ fees, arising out of or in connection with any Letters of Credit, except for expenses caused by Bank’s gross negligence or willful misconduct.

  
 (d) Foreign Exchange Usage and
Sublimit. Subject to the availability under the Revolving Line and in reliance on the representations and warranties of Borrower set forth herein, and provided that no Event of Default has occurred and is continuing, at any time and from time to
time from the date hereof through the Business Day immediately prior to the Revolving Maturity Date, Bank shall arrange the purchase by Borrower of foreign exchange contracts (“Exchange Contracts”) as Borrower may request to
hedge foreign exchange transaction risk arising from foreign currency denominated accounts payable, which request shall be made by delivering to Bank a duly executed exchange contract application on Bank’s standard form; provided,
however, that the maximum aggregate notional contract amount in United States Dollars under all such Exchange Contracts shall not at any time exceed $1,000,000; and provided, further, that the applicable Foreign Exchange Reserve
Percentage (as defined below) times the maximum aggregate notional contract amount in United States Dollars under all such Exchange Contracts shall not at any time exceed $100,000 (the “Foreign Exchange Sublimit”) and shall be deemed to
constitute outstanding Advances for the purpose of calculating availability under the Revolving Line. The “Foreign Exchange Reserve Percentage” shall be a percentage as determined by Bank in its sole discretion from time to time. Unless
Borrower shall have deposited with Bank cash collateral in an amount sufficient to cover all undrawn amounts under each such Exchange Contract and Bank shall have agreed in writing, no Exchange Contract shall have a due date that is later than the
Revolving Maturity Date. All Exchange Contracts shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s form exchange contract application. Borrower will pay any
standard issuance and other fees that Bank notifies Borrower will be charged for issuing and processing Exchange Contracts for Borrower. After and during the continuance of an Event of Default, Bank may, in its sole and absolute discretion,
terminate any or all of the Exchange Contracts. Borrower agrees to indemnify and hold harmless Bank from and against all loss, costs and expense associated with any such termination of any Exchange Contract. If at any time for any reason, the amount
of Obligations owed by Borrower to Bank pursuant to this Section 2.1(d) is greater than the aggregate amount available to be drawn under this Section 2.1(d), Borrower shall immediately pay to Bank, in cash, the amount of such excess. 
  
 (e) Collateralization of Obligations Extending
Beyond Maturity. If Borrower has not secured to Bank’s satisfaction its obligations with respect to any Letters of Credit or Exchange Contracts by the Revolving Maturity Date, then, effective as of such date, the balance in any deposit
accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such
certificates or accounts), shall automatically secure such obligations to the extent of the then continuing or outstanding and undrawn Letters of Credit or Exchange Contracts. Borrower authorizes Bank to hold such balances in pledge and to decline
to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the Letters of Credit or Exchange Contracts are outstanding or continue. 
  

 6 

 2.2 Interest Rates, Payments, and Calculations. 
  
 (a) Interest Rates. Except as set forth in
Section 2.2(b), the Advances shall bear interest, on the outstanding Daily Balance thereof, at a rate equal to the Prime Rate. 
  
 (b) Late Fee; Default Rate. If any payment is not made within ten (10) days after the date such payment is due, Borrower
shall pay Bank a late fee equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount or (ii) the maximum amount permitted to be charged under applicable law (the “Default Rate”). All Obligations shall bear interest,
from and after the occurrence and during the continuance of an Event of Default, at a rate equal to three (3%) percentage points above the interest rate applicable immediately prior to the occurrence of the Event of Default. 
  
 (c) Payments. Interest hereunder shall be due
and payable on the first calendar day of each month during the term hereof. Bank shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit accounts or against the Revolving Line,
in which case those amounts shall thereafter accrue interest at the rate then applicable hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter accrue interest at the
rate then applicable hereunder. All payments shall be free and clear of any taxes, withholdings, duties, impositions or other charges, to the end that Bank will receive the entire amount of any Obligations payable hereunder, regardless of source of
payment. 
  
 (d) Computation. In
the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate. All
interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed. 
  
 2.3 Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall credit a wire transfer of funds, check or other item of
payment to such deposit account or Obligation as Borrower specifies. After the occurrence of an Event of Default, the receipt by Bank of any wire transfer of funds, check, or other item of payment shall be immediately applied to conditionally reduce
Obligations, but shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and until such check or other item of payment is honored when presented for payment. Notwithstanding anything to
the contrary contained herein, any wire transfer or payment received by Bank after 12:00 noon Pacific time shall be deemed to have been received by Bank as of the opening of business on the immediately following Business Day. Whenever any payment to
Bank under the Loan Documents would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be due on the next Business Day, and additional fees or interest, as the case may be, shall
accrue and be payable for the period of such extension. 
  
 2.4
Fees. Borrower shall pay to Bank the following: 
  
 (a) Facility Fee. On the Closing Date, a Facility Fee equal to Seventeen Thousand Five Hundred Dollars ($17,500), which shall be nonrefundable; 
  
 (b) Commitment Fee. A Commitment Fee equal to
one-tenth of one percent (0.10%) per annum of the average unused portion of the availability under the Revolving Line. Such fee shall be payable in quarterly installments on the last day of each fiscal quarter or, in the case of the quarter in which
the Revolving Maturity Date falls, on the Revolving Maturity Date. Each quarterly installment shall be calculated on the average unused portion of the Revolving Line during such fiscal quarter. The Commitment Fee shall be debited quarterly from
Borrower’s checking account with Bank; and 
  
 (c) Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date, including reasonable attorneys’ fees and expenses and, after the Closing Date, all Bank Expenses, including reasonable
attorneys’ fees and expenses, as and when they become due. 
  

 7 

 2.5 Additional Costs. In case any law, regulation, treaty or official directive or the
interpretation or application thereof by any court or any governmental authority charged with the administration thereof or the compliance with any guideline or request of any central bank or other governmental authority (whether or not having the
force of law): 
  
 (a) subjects Bank to
any tax with respect to payments of principal or interest or any other amounts payable hereunder by Borrower or otherwise with respect to the transactions contemplated hereby (except for taxes on the overall net income of Bank imposed by the United
States of America or any political subdivision thereof); 
  
 (b) imposes, modifies or deems applicable any deposit insurance, reserve, special deposit or similar requirement against assets held by, or deposits in or for the account of, or loans by, Bank; or 

 
 (c) imposes upon Bank any other condition with
respect to its performance under this Agreement, 
  
 and the result of any of the
foregoing is to increase the cost to Bank, reduce the income receivable by Bank or impose any expense upon Bank with respect to the Obligations, Bank shall notify Borrower thereof. Borrower agrees to pay to Bank the amount of such increase in cost,
reduction in income or additional expense as and when such cost, reduction or expense is incurred or determined, upon presentation by Bank of a statement of the amount and setting forth Bank’s calculation thereof, all in reasonable detail,
which statement shall be deemed true and correct absent manifest error. 
  
 2.6 Term. This Agreement shall become effective on the Closing Date and, subject to Section 12.7, shall continue in full force and effect for so long as any Obligations remain outstanding or Bank has any obligation to make
Credit Extensions under this Agreement. Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement immediately and without notice upon the occurrence and during the continuance
of an Event of Default. 
  
 3. CONDITIONS OF
LOANS. 
  
 3.1 Conditions Precedent
to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension after the date hereof is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following:

  
 (a) this Agreement; 
  
 (b) the Note; 
  
 (c) a certificate of the Secretary of Borrower with
respect to incumbency and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents; 
  
 (d) automatic debit authorization; 
  
 (e) payment of the fees and Bank Expenses then due specified in Section 2.4 hereof; and 
  
 (f) such other documents, and completion of such
other matters, as Bank may reasonably deem necessary or appropriate. 
  
 3.2 Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial Credit Extension, is further subject to the following conditions: 
  
 (a) timely receipt by Bank of the Payment/Advance
Form or (with respect to any request for Credit Card Services, Letter of Credit or Exchange Contracts) other required documentation as provided in Section 2.1; 
  
 (b) receipt by Bank of a Compliance Certificate; and 
  
 (c) the representations and warranties contained in
Section 5 shall be true and correct in all material respects on and as of the date of such Payment/Advance Form and on the effective date of each Credit 

  

 8 

 
Extension as though made at and as of each such date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to
such Credit Extension (provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date). The making of each Credit Extension shall
be deemed to be a representation and warranty by Borrower on the date of such Credit Extension as to the accuracy of the facts referred to in this Section 3.2. 
  

4. [Intentionally Omitted.] 
  
 5. REPRESENTATIONS AND WARRANTIES. 
  
 Borrower represents and warrants as follows: 
  
 5.1 Due Organization and Qualification. Borrower and each Subsidiary is a corporation duly existing under the
laws of its state of incorporation and qualified and licensed to do business in any state in which the conduct of its business or its ownership of property requires that it be so qualified. 
  
 5.2 Due Authorization; No Conflict. The execution, delivery,
and performance of the Loan Documents are within Borrower’s powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in Borrower’s Certificate of Incorporation or Bylaws, nor will
they constitute an event of default under any material agreement to which Borrower is a party or by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound, which default could have a
Material Adverse Effect. 
  
 5.3 Name; Location of Chief
Executive Office. Except as disclosed in the Schedule, Borrower has not done business under any name other than that specified on the signature page hereof. The chief executive office of Borrower is located at the address indicated in Section 10
hereof. 
  
 5.4 Litigation. Except as set forth in
the Schedule, there are no actions or proceedings pending by or against Borrower or any Subsidiary before any court or administrative agency in which an adverse decision could have a Material Adverse Effect, or a material adverse effect on
Borrower’s interest. 
  
 5.5 No Material Adverse
Change in Financial Statements. All consolidated financial statements related to Borrower and any Subsidiary that are delivered by Borrower to Bank fairly present in all material respects Borrower’s consolidated financial condition as of
the date thereof and Borrower’s consolidated results of operations for the period then ended. There has not been a material adverse change in the consolidated financial condition of Borrower since the date of the most recent of such financial
statements submitted to Bank. 
  
 5.6 Solvency, Payment
of Debts. Borrower is solvent and able to pay its debts (including trade debts) as they mature. 
  
 5.7 Regulatory Compliance. Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to any employee
benefit plans subject to ERISA. No event has occurred resulting from Borrower’s failure to comply with ERISA that could result in Borrower’s incurring any material liability. Borrower is not an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940. Borrower is not engaged principally, or as one of the important activities, in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal Reserve System). Borrower has complied with all the provisions of the Federal Fair Labor Standards Act. Borrower has not violated
any statutes, laws, ordinances or rules applicable to it, violation of which could have a Material Adverse Effect. 
  
 5.8 Environmental Condition. Except as disclosed in the Schedule, none of Borrower’s or any Subsidiary’s properties or assets has
ever been used by Borrower or any Subsidiary or, to the best of Borrower’s 

  

 9 

 
knowledge, by previous owners or operators, in the disposal of, or to produce, store, handle, treat, release, or transport, any hazardous waste or hazardous
substance other than in accordance with applicable law; to the best of Borrower’s knowledge, none of Borrower’s properties or assets has ever been designated or identified in any manner pursuant to any environmental protection statute as a
hazardous waste or hazardous substance disposal site, or a candidate for closure pursuant to any environmental protection statute; no lien arising under any environmental protection statute has attached to any revenues or to any real or personal
property owned by Borrower or any Subsidiary; and neither Borrower nor any Subsidiary has received a summons, citation, notice, or directive from the Environmental Protection Agency or any other federal, state or other governmental agency concerning
any action or omission by Borrower or any Subsidiary resulting in the releasing, or otherwise disposing of hazardous waste or hazardous substances into the environment. 
  
 5.9 Taxes. Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed,
and have paid, or have made adequate provision for the payment of, all taxes reflected therein. 
  
 5.10 Subsidiaries. Borrower does not own any stock, partnership interest or other equity securities of any Person, except for Permitted
Investments. 
  
 5.11 Government Consents. Borrower
and each Subsidiary have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued operation of Borrower’s business
as currently conducted, the failure to obtain which could have a Material Adverse Effect. 
  
 5.12 Investment Accounts. Not more than sixty-five percent (65%) of Borrower’s Investments are maintained or invested with a Person other than Bank or Bank’s Affiliates. 
  
 5.13 Full Disclosure. No representation, warranty or other
statement made by Borrower in any certificate or written statement furnished to Bank contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained in such certificates or
statements not misleading. 
  
 6. AFFIRMATIVE
COVENANTS. 
  
 Borrower covenants and agrees
that, until payment in full of all outstanding Obligations, other than contingent indemnity obligations under Section 12.2 of this Agreement, and for so long as Bank may have any commitment to make a Credit Extension hereunder, Borrower shall do all
of the following: 
  
 6.1 Good Standing. Borrower
shall maintain its and each of its Subsidiaries’ corporate existence in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which the failure to so qualify could have a Material Adverse Effect. Borrower shall
maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements, the loss of which could have a Material Adverse Effect. 
  
 6.2 Government Compliance. Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding
requirements of ERISA with respect to any employee benefit plans subject to ERISA. Borrower shall comply, and shall cause each Subsidiary to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject,
noncompliance with which could have a Material Adverse Effect. 
  
 6.3 Financial Statements, Reports, Certificates. Borrower shall deliver the following to Bank: (a) as soon as available, but in any event within forty-five (45) days after the end of each fiscal quarter a company prepared
consolidated and consolidating balance sheet, income, and cash flow statement covering Borrower’s consolidated and consolidating operations during such period, prepared in accordance with GAAP, consistently applied, in a form acceptable to Bank
and certified by a Responsible Officer; (b) as soon as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year, audited consolidated and consolidating financial statements of Borrower prepared in accordance
with GAAP, consistently applied, together with an unqualified opinion on such financial statements of an independent certified public accounting firm reasonably acceptable to Bank; (c) copies of all statements, reports and notices sent or made
available generally by Borrower to its 

  

 10 

 
security holders or to any holders of Subordinated Debt and all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission; (d)
promptly upon receipt of notice thereof, a report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of One Hundred Fifty Thousand Dollars ($150,000) or
more; and (e) such budgets, sales projections, operating plans or other financial information as Bank may reasonably request from time to time generally prepared by Borrower in the ordinary course of business. 
  
 Borrower shall deliver to Bank with the quarterly financial statements and
prior to each Advance a Compliance Certificate signed by a Responsible Officer in substantially the form of Exhibit C hereto. 
  
 6.4 Inventory; Returns. Borrower shall keep all Inventory in good and marketable condition, free from all material defects except for
Inventory for which adequate reserves have been made. Returns and allowances, if any, as between Borrower and its account debtors shall be on the same basis and in accordance with the usual customary practices of Borrower, as they exist at the time
of the execution and delivery of this Agreement. Borrower shall promptly notify Bank of all returns and recoveries and of all disputes and claims, where the return, recovery, dispute or claim involves more than One Hundred Thousand Dollars
($100,000). 
  
 6.5 Taxes. Borrower shall make, and
shall cause each Subsidiary to make, due and timely payment or deposit of all material federal, state, and local taxes, assessments, or contributions required of it by law, and will execute and deliver to Bank, on demand, appropriate certificates
attesting to the payment or deposit thereof; and Borrower will make, and will cause each Subsidiary to make, timely payment or deposit of all material tax payments and withholding taxes required of it by applicable laws, including, but not limited
to, 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 Bank with proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or
deposits; provided that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrower.

  
 6.6 Principal Depository. Borrower shall
maintain its principal depository and operating accounts with Bank. 
  
 6.7 Unrestricted Cash. Borrower shall maintain a balance of unrestricted cash and cash equivalents (including securities which have a maturity of two years or less if they are considered “Available for Sale” or
“Held-to-Maturity” Investments” under GAAP and Financial Accounting Standards Board 115) of at least Twenty-Five Million Dollars ($25,000,000) during each fiscal quarter. 
  
 6.8 Total Liabilities-Tangible Net Worth. Borrower shall maintain, as of the last day of each fiscal quarter,
a ratio of Total Liabilities less Deferred Revenue to Tangible Net Worth of not more than 0.50 to 1.00. 
  
 6.9 [Intentionally Omitted.] 
  
 6.10 Quarterly Net Loss; Profitability. Borrower shall not suffer a quarterly net loss in excess of (i) Three Million Dollars ($3,000,000)
for the fiscal quarter ending on December 31, 2003; (ii) Three Million Dollars ($3,000,000) for the fiscal quarter ending on March 31, 2004; (iii) Two Million Seven Hundred and Fifty Thousand Dollars ($2,750,000) for the fiscal quarter ending on
June 30, 2004; and (iv) Two Million Five Hundred Thousand Dollars ($2,500,000) for the fiscal quarter ending on September 30, 2004. Borrower shall show a net profit of at least $1.00 for the fiscal quarter ending on December 31, 2004 and for each
quarter thereafter. 
  
 6.11 Further Assurances. At
any time and from time to time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Bank to effect the purposes of this Agreement. 
  

 11 

 7. NEGATIVE COVENANTS. 
  
 Borrower covenants and agrees that, so long as any credit hereunder shall be
available and until payment in full of the outstanding Obligations, other than contingent indemnity obligations under Section 12.2 of this Agreement, or for so long as Bank may have any commitment to make any Credit Extensions, Borrower will not do
any of the following: 
  
 7.1 Dispositions. Convey,
sell, lease, transfer or otherwise dispose of (collectively, a “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, other than: (i) Transfers of Inventory in the ordinary course of
business; (ii) Transfers of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; or (iii) Transfers of worn-out or obsolete Equipment which was not financed
by Bank. 
  
 7.2 Change in Business; Change in Control
or Executive Office. Engage in any business, or permit any of its Subsidiaries to engage in any business, other than the businesses currently engaged in by Borrower and any business substantially similar or related thereto (or incidental
thereto); or suffer or permit a Change in Control; or without thirty (30) days prior written notification to Bank, relocate its chief executive office or state of incorporation; or without Bank’s prior written consent, change the date on which
its fiscal year ends. 
  
 7.3 Mergers or
Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any other business organization, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock
or property of another Person, provided mergers and acquisitions may be effected as long as (i) Borrower is the surviving entity, (ii) neither a Change of Control nor a change in more than one of the Borrower’s following executive management
members: chief executive officer, chief financial officer or vice president of engineering, occurs in connection therewith, (iii) the acquisition is of a business substantially similar to that of Borrower’s as of the Closing Date, (iv) the
aggregate cash consideration paid for any such transactions does not exceed Ten Million Dollars ($10,000,000) during the term of this Agreement and while any Obligations relating to this Agreement remain outstanding, and (v) an Event of Default does
not exist prior to such transaction or after giving effect thereto. 
  
 7.4 Indebtedness. Create, incur, assume or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than Permitted Indebtedness. 
  
 7.5 Encumbrances. Create, incur, assume or suffer to exist any
Lien with respect to any of its property, or assign or otherwise convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries so to do, except for Permitted Liens. Agree with any Person other than Bank
not to grant a security interest in, or otherwise encumber, any of its property, or permit any Subsidiary to do so. 
  
 7.6 Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase of any
capital stock, or permit any of its Subsidiaries to do so, except that Borrower may repurchase the stock of former employees pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not
exist after giving effect to such repurchase. 
  
 7.7
Investments. Directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries so to do, other than Permitted Investments; or maintain or invest more than fifty percent (50%) of its
Investments with a Person other than Bank unless such Person has entered into a control agreement with Bank, in form and substance satisfactory to Bank; or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts
such Subsidiary from paying dividends or otherwise distributing property to Borrower. 
  
 7.8 Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for transactions that are in the ordinary course of
Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
  

 12 

 7.9 Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any
of its Subsidiaries to make any such payment, except in compliance with the terms of such Subordinated Debt, or amend any provision contained in any documentation relating to the Subordinated Debt without Bank’s prior written consent.

  
 7.10 Inventory and Equipment. Store the
Inventory or the Equipment, if any, with a bailee, warehouseman, or similar party unless Bank has received a pledge of the warehouse receipt covering such Inventory. Except for Inventory, if any, sold in the ordinary course of business and except
for such other locations as Bank may approve in writing, Borrower shall keep the Inventory and Equipment, if any, only at the location set forth in Section 10 hereof and such other locations of which Borrower gives Bank prior written notice.
Notwithstanding the foregoing, Bank acknowledges that Borrower may deliver Inventory from time to time to customers, customer prospects, and contract manufacturers to hold on a temporary basis pending sale or return. 
  
 7.11 Compliance. Become an “investment company” or be
controlled by an “investment company,” within the meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities, the business of extending credit for the purpose of
purchasing or carrying margin stock, or use the proceeds of any Credit Extension for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur, fail to
comply with the Federal Fair Labor Standards Act or violate any law or regulation, which violation could have a Material Adverse Effect, or permit any of its Subsidiaries to do any of the foregoing. 
  
 7.12 Negative Pledge Agreements. Permit the inclusion in any
contract to which it becomes a party of any provisions that could restrict or invalidate the creation of a security interest in Borrower’s rights and interests in any of Borrower’s property. Borrower shall not enter into any agreement (and
will not permit any Subsidiary to enter any agreement) that prohibits or restricts Borrower (or any Subsidiary) from encumbering or otherwise disposing of any part of Borrower’s property. 
  
 7.13 Capital Expenses. Spend or commit to spend more than Four
Million Dollars ($4,000,000) per fiscal year on equipment or other capital improvements. 
  
 8. EVENTS OF DEFAULT. 
  
 Any one or more of the following events shall constitute an Event of Default by Borrower under this Agreement: 
  
 8.1 Payment Default. If Borrower fails to pay, when due, any
principal or interest hereunder, or fails to pay any other Obligation within thirty (30) days after notice thereof from Bank; 
  
 8.2 Covenant Default. 
  
 (a) If Borrower fails to perform any obligation under Article 6 or violates any of the covenants contained in Article 7 of this
Agreement, or 
  
 (b) if Borrower fails or
neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to
any default under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure such default within ten (10) days after Borrower receives notice thereof or any officer of Borrower becomes aware thereof;
provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a
reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not
be deemed an Event of Default (provided that no Credit Extensions will be required to be made during such cure period); 
  

 13 

 8.3 Material Adverse Effect. If there occurs any circumstance or circumstances that could
have a Material Adverse Effect; 
  
 8.4 Attachment.
If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment,
seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its
business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the
United States Government, or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof, provided that
none of the foregoing shall constitute an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrower (provided that no Credit Extensions will be required to be made
during such cure period); 
  
 8.5 Insolvency. If
Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced against Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions will
be made prior to the dismissal of such Insolvency Proceeding); 
  
 8.6 Other Agreements. If there is a default or other failure to perform in any agreement to which Borrower is a party or by which it is bound resulting in a right by a third party or parties, whether or not exercised, to
accelerate the maturity of any Indebtedness in an amount in excess of One Hundred Thousand Dollars ($100,000); or which could have a Material Adverse Effect; 
  
 8.7 Subordinated Debt. If Borrower makes any payment on account of Subordinated Debt, except to the extent such payment is allowed under any
subordination agreement entered into with Bank; 
  
 8.8
Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Thousand Dollars ($100,000) shall be rendered against Borrower and shall remain unsatisfied and
unstayed for a period of ten (10) days (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); or 
  
 8.9 Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or representation
set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement or to induce Bank to enter into this Agreement or any other Loan Document. 
  
 9. BANK’S RIGHTS AND REMEDIES. 
  
 9.1 Rights and Remedies. Upon the occurrence and during the
continuance of an Event of Default, Bank may, at its election, without notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrower: 
  
 (a) Declare all Obligations, whether evidenced by
this Agreement, by any of the other Loan Documents, or otherwise, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.5, all Obligations shall become immediately due and payable without
any action by Bank). With respect to any of Borrower’s owned premises, Borrower hereby grants Bank a license to enter into possession of such premises and to occupy the same, without charge, in order to exercise any of Bank’s rights or
remedies provided herein, at law, in equity, or otherwise; 
  
 (b) Cease advancing money or extending credit to or for the benefit of Borrower under this Agreement or under any other agreement between Borrower and Bank; 
  
 (c) Settle or adjust disputes and claims directly
with account debtors for amounts, upon terms and in whatever order that Bank reasonably considers advisable; 
  

 14 

 (d) set off and apply to the Obligations any and all (i) balances and deposits of
Borrower held by Bank, or (ii) indebtedness at any time owing to or for the credit or the account of Borrower held by Bank. 
  
 9.2 Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, Borrower hereby irrevocably
appoints Bank (and any of Bank’s designated officers, or employees) as Borrower’s true and lawful attorney to: (a) send requests for verification of Accounts; (b) endorse Borrower’s name on any checks or other forms of payment or
security that may come into Bank’s possession; (c) sign Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account debtors, schedules and assignments of Accounts, verifications of Accounts, and notices
to account debtors; (d) make, settle, and adjust all claims under and decisions with respect to Borrower’s policies of insurance and (e) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts
and upon terms which Bank determines to be reasonable. The appointment of Bank as Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with an interest, is irrevocable until all of the Obligations
have and performed and Bank’s obligation to provide Credit Extensions hereunder is terminated. 
  
 9.3 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be
cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of
Default on Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and
then shall be effective only in the specific instance and for the specific purpose for which it was given. 
  
 9.4 Demand; Protest. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment,
notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees at any time held by Bank on which Borrower may in any way be liable. 

 
 10. NOTICES. 
  
 Unless otherwise provided in this Agreement, all notices or demands by any
party relating to this Agreement or any other agreement entered into in connection herewith 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 a recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses set forth below: 
  

			
	 If to Borrower:
	  	 LogicVision, Inc.
 101 Metro Drive, Third
Floor
 San Jose, CA 95110
 Attn: Bruce Jaffe
 FAX: (408) 573-7640

		
	 If to Bank:
	  	 Comerica Bank
 Technology & Life Science
Division
 226 Airport Parkway, Suite 100
 San Jose, CA
95110
 Attn: Mr. Guy Simpson, AVP
 FAX: (408)
451-8568

  
 The parties 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. 
  

 15 

 11. CHOICE OF LAW AND VENUE;
JURY TRIAL WAIVER. 
  
 This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts of law. Each of Borrower and Bank hereby submits to the exclusive jurisdiction of
the state and Federal courts located in the County of Santa Clara, State of California. BORROWER AND BANK EACH 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. EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL
INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

  
 12. GENERAL PROVISIONS. 
  
 12.1 Successors and Assigns. This Agreement shall bind and
inure to the benefit of the respective successors and permitted assigns of each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned by Borrower without Bank’s prior written consent,
which consent may be granted or withheld in Bank’s sole discretion. Bank shall have the right without the consent of or notice to Borrower to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in,
Bank’s obligations, rights and benefits hereunder. 
  
 12.2 Indemnification. Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in
connection with the transactions contemplated by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank as a result of or in any way arising out of, following, or consequential to transactions between Bank
and Borrower whether under this Agreement, or otherwise (including without limitation reasonable attorneys’ fees and expenses), except for losses caused by Bank’s gross negligence or willful misconduct. 
  
 12.3 Time of Essence. Time is of the essence for the
performance of all obligations set forth in this Agreement. 
  
 12.4 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. 

 
 12.5 Amendments in Writing, Integration. Neither this
Agreement nor the Loan Documents can be amended or terminated orally. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this Agreement and the Loan
Documents, if any, are merged into this Agreement and the Loan Documents. 
  
 12.6 Counterparts. 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. 
  
 12.7 Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so long as any
Obligations remain outstanding. The obligations of Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 12.2 shall survive until all applicable statute of limitations periods with
respect to actions that may be brought against Bank have run. 
  

 16 

 12.8 Effect of Amendment and Restatement. This Agreement is intended to and does completely
amend and restate the Original Loan Documents. Nothing contained herein shall in any way impair the Original Loan Documents now held for the Obligations, nor affect or impair any rights, powers, or remedies under the Original Loan Documents, it
being the intent of the parties hereto that this Agreement shall not constitute a novation of the Original Loan Documents or an accord and satisfaction of the Obligations. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed as of the date first above written. 
  

			
	LOGICVISION, INC.
		
	 By:
	 	 /s/    BRUCE M.
JAFFE        

	Title:	 	Chief Financial Officer
	
	COMERICA BANK
		
	 By:
	 	 /s/    GUY
SIMPSON        

	Title:	 	Vice President

  

 17 

 EXHIBIT A 
  
 LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM 
  
 LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM DEADLINE FOR SAME DAY PROCESSING FOR ADVANCES IS 3:00 P.M., PACIFIC TIME (1:00 P.M., PACIFIC
TIME FOR WIRE TRANSFERS). 

			
	 TO:            
[                    ]
	  	DATE:                     
	 FAX #:
[                    ]
	  	TIME:                     

  

					
	
	 	

	 FROM: LogicVision, Inc.
	  	 
		
	 CLIENT NAME: LogicVision, Inc.
	  	 
		
	 REQUESTED BY:
                                        
                                        
                                        
                                        
            
	  	 
		
	 AUTHORIZED SIGNER’S NAME
	  	 
		
	 AUTHORIZED SIGNATURE:
                                        
                                        
                                        
                             
	  	 
		
	 PHONE NUMBER:
                                        
                                        
                                        
                                        
          
	  	 
			
	 FROM ACCOUNT #
                                        
                     
	  	TO ACCOUNT #
                                        
                          	  	 
			
	REQUESTED TRANSACTION TYPE	  	REQUEST DOLLAR AMOUNT	  	 
			
	 	  	$                                      
                                        
                     	  	 
			
	 PRINCIPAL INCREASE (ADVANCE)
	  	$                                      
                                        
                     	  	 
			
	 PRINCIPAL PAYMENT (ONLY)
	  	$                                      
                                        
                     	  	 
			
	 INTEREST PAYMENT (ONLY)
	  	$                                      
                                        
                     	  	 
			
	 PRINCIPAL AND INTEREST (PAYMENT)
	  	$                                      
                                        
                     	  	 
		
	 OTHER INSTRUCTIONS:
                                        
                                        
                                        
                                    
	  	 
		
	
	  	 
		
	All representations and warranties of Borrower stated in the Second Amended and Restated Loan Agreement are true, correct and complete in all material respects as of the date of the
telephone request for an Advance confirmed by this Loan Payment/Advance Telephone Request Form; provided, however, that those representations and warranties expressly referring to another date shall be true, correct and complete in all material
respects as of such date.	  	 
	

	 	  	 
	

			
	 BANK USE ONLY
	  	 	  	 
	TELEPHONE REQUEST:	  	 	  	 
		
	The following person is authorized to request the loan payment transfer/loan advance on the advance designated account and is known to me.	  	 
			
	
 Authorized
Requester
	  	
 Phone #
	  	

			
	
 Received By
(Bank)
	  	
 Phone #
	  	

			
	 Authorized Signature (Bank)
	  	 	  	 
	

 EXHIBIT B 
  
 AMENDED AND RESTATED 
 REVOLVING PROMISSORY NOTE 
  

			
	 $5,000,000
	  	Menlo Park, California
	 	  	February 9, 2004

  
 LOGICVISION, INC. (“Borrower”), for value received, hereby promises to pay to the order of Comerica Bank (“Bank”), in lawful money of the United States of America,
pursuant to that certain Second Amended and Restated Loan Agreement dated as of February 9, 2004, by and between Borrower and Bank (the “Loan Agreement”), (i) the principal amount of $5,000,000 or, if different, (ii) the principal amount
of the Advances (the “Advances”) outstanding as of the Revolving Maturity Date. All unpaid amounts of principal and interest shall be due and payable in full on the Revolving Maturity Date. 
  
 This Note is referred to in the Loan Agreement. All terms defined in the Loan
Agreement shall have the same definitions when used herein, unless otherwise defined herein. 
  
 Borrower further promises to pay interest on each Advance hereunder in like funds on the principal amount hereof from time to time outstanding from the date hereof until paid in full, at a rate or rates per annum and
payable on the dates determined pursuant to the Loan Agreement. 
  
 Payment on this Note shall be applied in the manner set forth in the Loan Agreement. The Loan Agreement contains provisions for acceleration of the maturity of Advances hereunder upon the occurrence of certain stated events and also
provides for optional and mandatory prepayments of principal hereof prior to any stated maturity upon the terms and conditions therein specified. 
  
 All Advances made by Bank to Borrower pursuant to the Loan Agreement shall be recorded by Bank on the books and records of Bank. The failure of Bank to
record any Advance or any prepayment or payment made on account of the principal balance hereof shall not limit or otherwise affect the obligation of Borrower under this Note and under the Loan Agreement to pay the principal, interest and other
amounts due and payable under the Advances. 
  
 Any principal or
interest payments on this Note not paid when due, whether at stated maturity, by acceleration or otherwise, shall bear interest at the Default Rate. 
  
 Upon the occurrence of a default hereunder or an Event of Default under the Loan Agreement, all unpaid principal, accrued interest and other amounts owing
hereunder shall, at the option of Bank, be immediately collectible by or on behalf of Bank pursuant to the Loan Agreement and applicable law. 
  
 Borrower waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this Note, and shall pay all costs of collection
when incurred, including reasonable attorneys’ fees, costs and expenses. The right to plead any and all statutes of limitations as a defense to any demand hereunder is hereby waived to the full extent permitted by law. 
  
 This Note is unsecured. 
  
 This Note shall be governed by, and construed and enforced in accordance
with, the laws of the State of California, excluding conflict of laws principles that would cause the application of the laws of any other jurisdiction. 
  
 The provisions of this Note shall inure to the benefit of and be binding upon any successor to Borrower and shall extend to any holder hereof. 

 

 1 

 This Note amends, re-evidences, restates, and supersedes in full, but does not in any way satisfy or
discharge, the outstanding indebtedness owed under that certain Revolving Promissory Note dated December 19, 2001 in the original principal amount of Five Million Dollars ($5,000,000) made by Borrower in favor of Bank. 
  

			
	LOGICVISION, INC.
		
	 By:
	 	 /s/    BRUCE M.
JAFFE        

	Print Name:	 	Bruce M. Jaffe
	Title:	 	Chief Financial Officer

  

 2 

 EXHIBIT C 
  
 COMPLIANCE CERTIFICATE 
  
 TO:  COMERICA BANK 
  
 FROM:  LogicVision, Inc. 
  
 The undersigned authorized officer of LogicVision, Inc. hereby certifies that in accordance with the terms and conditions of the Second Amended and
Restated Loan Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                             with all required covenants except as noted below and (ii) all representations
and warranties of Borrower stated in the Agreement are true and correct as of the date hereof. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with
Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes. 
  
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

									
	 Reporting Covenant

	  	 Required

	  	Complies

	 Company prepared financial statements (Consolidated and Consolidating)
	  	Quarterly within 45 days	  	Yes	    	No
	 Annual
(CPA Audited; Consolidated and Consolidating)
	  	FYE within 90 days	  	Yes	    	No
	 10K and 10Q
	  	 On the date of delivery to the Securities Exchange Commission
	  	Yes	    	No
				
	 Financial Covenant

	  	 Required

	  	 Actual

	  	Complies

	 Maintain on a Quarterly Basis:
	  	 	  	 	  	 	    	 
	 Minimum Unrestricted Cash
	  	$25,000,000	  	$            	  	Yes	    	No
	 Total Liabilities / Tangible Net Worth
	  	0.50 : 1.00	  	        : 1.00	  	Yes	    	No
	 Net Loss; Profitability
	  	*	  	$            	  	Yes	    	No

	*	Borrower shall not suffer a quarterly net loss in excess of (i) Three Million Dollars ($3,000,000) for the fiscal quarter ending on December 31, 2003; (ii) Three Million Dollars
($3,000,000) for the fiscal quarter ending on March 31, 2004; (iii) Two Million Seven Hundred and Fifty Thousand Dollars ($2,750,000) for the fiscal quarter ending on June 30, 2004; and (iv) Two Million Five Hundred Thousand Dollars ($2,500,000) for
the fiscal quarter ending on September 30, 2004. Borrower shall show a net profit of at least $1.00 for the fiscal quarter ending on December 31, 2004 and for each quarter thereafter. 

  

					
	 	 	 	 	

			
	 Comments Regarding Exceptions: See Attached.
	  	 	 	BANK USE ONLY
	 	  	 	 	Received by:
                                        
                                      
	 Sincerely,
	  	 	 	AUTHORIZED SIGNER
	 	  	 	 	Date:
                                        
                                        
            
			
	
	  	 	 	Verified:
                                        
                                        
     
	 SIGNATURE
	  	 	 	AUTHORIZED SIGNER
			
	
	  	 	 	Date:
                                        
                                        
            
	 TITLE
	  	 	 	 
			
	
	  	 	 	Compliance Status
                            Yes        No   
     
	 DATE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]