Document:

Amendment to Receivables Purchase Agreement effective date of February 21, 2007

 Exhibit 10.23 
 Silicon Valley Bank 
 Amendment to 
 Receivables Purchase Agreement 
  

			
	Sellers:	  	ZTI Merger Subsidiary III, Inc.
		  	(formerly known as Zhone Technologies, Inc.)
		
		  	Zhone Technologies, Inc.
		  	(formerly known as Tellium, Inc.)
		
	Address:	  	7001 Oakport St.
		  	Oakland, California 94621
		
	Effective Date:	  	as of February 21, 2007

 THIS AMENDMENT TO RECEIVABLES PURCHASE AGREEMENT, with an effective date of
February 21, 2007, is entered into between Silicon Valley Bank (“Silicon”) and the sellers named above (jointly and severally, “Seller”), effective as of the first date written above. 
 The Parties agree to amend the Non-Recourse Receivables Purchase Agreement between them, dated as of March 15, 2005, as amended from time to time
(the “Purchase Agreement”), as follows, effective as of the date hereof. (Capitalized terms used but not defined in this Amendment, shall have the meanings set forth in the Purchase Agreement.) 
 1. Extension. The portion of Section 2.1 of the Purchase Agreement, which presently reads as follows: 
 “In any event, Buyer will not (i) purchase any Receivables in excess of an aggregate outstanding amount exceeding the “Receivables Purchase
Sublimit” (as defined in the Loan Agreement), or (ii) purchase any Receivables under this Agreement after February 21, 2007.” 
 is
hereby amended to read as follows: 
 “In any event, Buyer will not (i) purchase any Receivables in excess of an aggregate
outstanding amount exceeding the “Receivables Purchase Sublimit” (as defined in the Loan Agreement), or (ii) purchase any Receivables under this Agreement after February 20, 2008.” 

 2. Limitation of Amendments. 
 A. The amendments set forth herein are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to
(a) be a consent to any amendment, waiver or modification of any other term or condition of any document or agreement relating to the Purchase Agreement (individually a “Loan Document” and collectively the “Loan Documents”),
or (b) otherwise prejudice any right or remedy which Silicon may now have or may have in the future under or in connection with any Loan Document. 
 B. This Amendment shall be construed in connection with and as part of Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein
amended, are hereby ratified and confirmed and shall remain in full force and effect. 
 3. Representations and Warranties. To induce
Silicon to enter into this Amendment, Seller hereby represents and warrants to Silicon as follows: 
 A. Immediately after giving effect to
this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date), and (b) no default or Event of Default has occurred and is continuing; 
 B. Seller has the power and authority to execute and deliver this Amendment and to perform its obligations under the Purchase Agreement, as amended by this Amendment; 
 C. The organizational documents of Seller delivered to Silicon in connection with the original execution of the Purchase Agreement remain true, accurate
and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 D. The execution and
delivery by Seller of this Amendment and the performance by Seller of its obligations under the Purchase Agreement, as amended by this Amendment, have been duly authorized; 
 E. The execution and delivery by Seller of this Amendment and the performance by Seller of its obligations under the Purchase Agreement, as amended by
this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Seller, (b) any contractual restriction with a Person binding on Seller, (c) any order, judgment or decree of any court or other
governmental or public body or authority, or subdivision thereof, binding on Seller, or (d) the organizational documents of Seller; 
 F. The execution and delivery by Seller of this Amendment and the performance by Seller of its obligations under the Purchase Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or
validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Seller, except as already has been obtained or made; and 
 G. This Amendment has been duly executed and delivered by Seller and is the binding obligation of Seller, enforceable against Seller in accordance with
its terms, except as such enforceability may be limited under law by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights. 
  

 2 

 4. Other General Provisions. This Amendment, the Purchase Agreement, any prior written amendments
thereto signed by Silicon and the Seller, and the other written documents and agreements between Silicon and the Seller set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and
supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. 
 5. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
 6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Silicon of this Amendment by each party
hereto; and (b) Seller’s payment of the fee set forth herein plus all expenses of Silicon incurred in connection herewith and as otherwise payable under the Loan Agreement or the Purchase Agreement. 
 [Signature page follows.] 
  

 3 

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

							
	Seller:	 	Silicon:
		
	ZHONE TECHNOLOGIES, INC.	 	SILICON VALLEY BANK
				
	By	 	 /s/ Morteza Ejabat
	 	By	 	 /s/ Rick Freeman

		 	President or Vice President	 	Title	 	 Relationship Manager

				
	Date signed:	 	 March 6, 2007
	 		 	
	
	Seller:
	
	ZTI MERGER SUBSIDIARY III, INC.
				
	By	 	 /s/ Morteza Ejabat
 President or Vice President
	 		 	
		 	 		 	
				
	Date signed:	 	 March 6, 2007
	 		 	

 [Signature Page to Amendment to Receivables Purchase Agreement] 

 CONSENT 
 Each of the undersigned acknowledges that its consent to the foregoing Amendment is not required, but the undersigned nevertheless does hereby consent to the foregoing Amendment and to the documents and agreements
referred to therein and to all future modifications and amendments thereto, and any termination thereof, and to any and all other present and future documents and agreements between or among the foregoing parties. Nothing herein shall in any way
limit any of the terms or provisions of the Continuing Guaranty of the undersigned or any other documents executed by the undersigned, all of which are hereby ratified and affirmed. 
  

									
	Paradyne Corporation	 	 	 	Paradyne Networks, Inc.
					
	By	 	 /s/ Kirk Misaka
	 		 	By	 	 /s/ Kirk Misaka

	Name	 	 Kirk Misaka
	 		 	Name	 	 Kirk Misaka

	Title	 	 Chief Financial Officer
	 		 	Title	 	 Chief Financial Officer

			
	Premisys Communications, Inc.	 		 	Vpacket Communications, Inc.
					
	By	 	 /s/ Kirk Misaka
	 		 	By	 	 /s/ Kirk Misaka

	Name	 	 Kirk Misaka
	 		 	Name	 	 Kirk Misaka

	Title	 	 Chief Financial Officer
	 		 	Title	 	 Chief Financial Officer

			
	Xybridge Technologies, Inc.	 		 	Zhone Technologies International, Inc.
					
	By	 	 /s/ Kirk Misaka
	 		 	By	 	 /s/ Kirk Misaka

	Name	 	 Kirk Misaka
	 		 	Name	 	 Kirk Misaka

	Title	 	 Chief Financial Officer
	 		 	Title	 	 Chief Financial Officer

 Date signed:  March 6, 2007Cash Compensation for Non-Employee Directors

 Exhibit 10.22 
 Cash Compensation for Non-Employee Directors 
 Power Integrations non-employee board members shall receive the following cash compensation
for the services performed, which cash compensation is cumulative: 
 Retainers: 
  

				
	 Service as a non-employee director:
	  	$	 5,000 per quarter
	 Service as chairman of the audit committee:
	  	$	 5,000 per quarter
	 Service as chairman of the compensation committee:
	  	$	 1,875 per quarter
	 Service as chairman of the nominating committee:
	  	$	 1,250 per quarter

 Meeting attendance fees: 
  

				
	 Board meeting in person:
	  	$	 1,500
	 Board meeting telephonically:
	  	$	750
	 Audit, Compensation, or Nominating Committee meeting in person:
	  	$	1,000
	 Audit, Compensation, or Nominating Committee meeting telephonically:
	  	$	500
	 One-time Special Committee fees (Messrs. Iyer and Fiebiger):
	  	$	25,000

 In addition, non-employee directors shall be reimbursed for all reasonable travel and related expenses incurred in
connection with attending board and committee meetings.Letter Agreement

 Exhibit 10.27 
 

 
 December 8, 2006 
 Balu
Balakrishnan 
 Dear Mr. Balakrishnan 
 Power Integrations,
Inc. (the “Company”) has previously granted you the stock options set forth on the attached Exhibit A (the “Options”) to purchase shares of the Company’s common stock. 
  

	I.	INTRODUCTION 

 The Company has determined that the grant dates of the
Options for federal income tax purposes may have been dates other than the grant dates set forth in the documentation you received in connection with the Options. It is possible, therefore, that the Options were issued with an exercise price that is
or may be less than 100% of the fair market value of the stock on the grant date for federal income tax purposes and therefore may be subject to adverse tax consequences under Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”). These adverse tax consequences likely include, at a minimum, (i) ordinary income tax plus (ii) an additional 20% tax on the intrinsic value of the Option prior to and regardless of whether the
Options are ever exercised plus (iii) an additional tax in the nature of interest. These adverse tax consequences apply to the extent that the Options (a) vested after December 31, 2004 and (b) were not exercised or otherwise
cancelled on or before December 31, 2005. If a portion of one of your Options was vested as of December 31, 2004, only the unvested portion as of such date is potentially subject to Section 409A. Exhibit A indicates the shares
subject to each of your Options that the Company believes are at risk for adverse tax consequences under Section 409A (the “At Risk Options”). 
 Based on the currently available guidance and proposed regulations issued in connection with Section 409A, we
believe that it is possible to avoid or minimize the potential adverse tax consequences that may apply under Section 409A in respect of your At Risk Options by amending the At Risk Options as to that part of the At Risk Options that remains
outstanding and unexercised1 (the “Curable Options”)) using either (a) the Amended
Exercise Price Approach as described in Section II.A, below or the Amended 
 Exercise Schedule Approach as described in Section II.B, below. We refer to
those Curable Options (or portions thereof) that you elect to amend as “Amended Options.” 
  

	 1
	 Note that to the extent that your At Risk Option is deemed to be beneficially owned by another person
(e.g., pursuant to a qualified domestic relations order in favor of your former spouse), you must provide evidence satisfactory to the Company that you have the right to make an election to amend the Curable Options. 

  

 1 

 You may also leave your Curable Options unchanged; however, if you elect to leave your Curable Options unchanged, the
Company currently intends to treat such options as subject to Section 409A. In addition, the Company intends to treat as subject to Section 409A any portion of your At Risk Options that is not a Curable Option, and make the appropriate
filings and tax withholdings on your At Risk Options as required by Section 409A. If you do not return a properly completed election form to the Company on or before December 29, 2006 (the “Expiration Date”), you
will be deemed to have elected to leave your Curable Options unchanged. 
  

	II.	DESCRIPTION OF THE AVAILABLE AMENDMENT ALTERNATIVES 

  

	 	A.	THE AMENDED EXERCISE PRICE APPROACH 

 If you select the Amended Exercise Price Approach for a Curable Option, you are agreeing to increase the exercise price of the Curable Option to be equal to 100% of the fair market value of the Company’s common
stock on the date the Company is using as the measurement date for such Curable Option for the purposes of preparing its financial statements (the “Amended Exercise Price”). Such Amended Exercise Price is shown on Exhibit
A. All other terms and conditions of the Curable Option will remain the same.2 
  

	 	B.	THE AMENDED EXERCISE SCHEDULE APPROACH 

 1. If you select
the Amended Exercise Schedule Approach, you are agreeing to change the exercise (but not the vesting) schedule applicable to the Curable Options to provide that the At Risk Option may not be exercised as to the Curable Options prior to the earliest
to occur of: 
 (i) the termination of your service with the Company for any reason, 
 (ii) your death, 
 (iii) your suffering a
“disability” (as defined under Section 409A), 
 (iv) a “change in control” of the Company (as defined under
Section 409A), or 
 (v) January 1 of one or more calendar years specified by
you (with such year(s) not earlier than 2007 and not later than the year in which your At Risk Option will expire) (collectively such specified calendar years, the “Selected Years,” and each a “Selected
Year”) (this amendment alternative, the “Amended Exercise Schedule”).3 For each
Curable Option, you may elect more than one Selected Year, making such 

	 2
	 It should be noted that all At Risk Options will be deemed to be nonqualified stock options whether or
not the option is amended pursuant to this offer and whether or not the option originally purported to be an incentive stock option. 

	 3
	 The Compensation Committee of our Board of Directors will determine whether and when any of the events
set forth in (i) through (iv) has occurred. 

  

 2 

 
option exercisable pursuant to a schedule adopted now. For example, assuming you had a fully vested Curable Option, you could elect an Amended Exercise
Schedule making 50% of the Curable Option Exercisable in 2007 and 50% exercisable in 2008. 
  

	 	2.	If you elect to amend a Curable Option to reflect an Amended Exercise Schedule: 

 (i) The Amended Exercise Schedule does not change the vesting schedule for your Curable Options. If a Curable Option is not fully vested at the time of your election and you choose more than one Selected Year, then
shares will be allocated among the Selected Years based on vesting status to the greatest extent possible, with currently vested shares being allocated to the earliest Selected Year(s) and unvested shares allocated to the latest Selected Year(s).
For example, if the Curable Option that you tender covers 400 shares, and is currently vested as to 100 shares, and you wish to select 2007 as the Selected Year as to 50 shares, 2008 as the Selected Year as to 100 shares, and 2009 as the Selected
Year as to the remaining 250 shares, your Amended Option covering 50 shares will be fully vested as of the date your Curable Option is amended pursuant to the terms described herein, your Amended Option covering 100 shares will be 50% vested as of
the Amendment Date, and your Amended Option covering 250 shares will be completely unvested as of the Amendment Date, and any future vesting will be deemed to occur as to the 100 share portion of the option prior to the 250 share portion of the
option. 
 (ii) The exercise price of the Amended Option will not change. Instead, the Amended Option will no longer be exercisable (to the
extent currently exercisable), and generally will only become exercisable again, if at all, on the date of the earliest to occur of the events described above under the Amended Exercise Schedule. 
 (iii) If your Amended Option becomes exercisable as a result of an event under the Amended Exercise
Schedule other than the start of your Selected Year(s), your Amended Option generally will be exercisable only until the earlier of (a) the date the underlying Curable Option would cease to be exercisable in accordance with its terms (including
upon the expiration of the three month post-termination exercise period applicable the underlying Curable Option) or (b) the later of (x) December 31 of the year in which the event occurs or (y) the 15th day of the third calendar month following the date on which the event occurs. However, you should be aware that if the event
that triggers the right to exercise your Amended Option is a change in control of the Company, then, subject to the terms of the stock plan under which the underlying Curable Option was granted, the transaction agreement between the Company and the
acquiring entity may provide for the termination of your Amended Option upon the consummation of the change in control (notwithstanding the terms of your Amended Exercise Schedule). 
 (iv) If the first event to occur is January 1 of your only Selected Year, your Amended Option generally will expire not later than December 31
of the Selected Year. If your Amended Exercise Schedule includes more than one Selected Year, then your Amended Option generally will expire in traunches pursuant to your Amended Exercise Schedule, not later than December 31 of each of the
Selected Years. In all cases, if you 

  

 3 

 
select the last calendar year of the current term of the underlying Curable Option as your Selected Year, you will not have the full calendar year to
exercise your Amended Option, as you will remain subject to the existing expiration date of the underlying Curable Option.4 
 (v) If you incur a termination of your service with the Company and you are a member of senior management who is
determined to be a “specified employee” (as defined under Section 409A) at the time of the termination, Section 409A generally requires us to implement a six month delay in the exercisability of your Amended Option. Therefore, to
the extent reasonably necessary to comply with Section 409A, you may only exercise your Amended Option during the three-month period commencing on the first business day that is more than six months after your termination date. The Company will
advise you at the time of your termination of service with the Company as to the period of time during which you may exercise your Amended Option. 
 (vi) Except as provided in Section II.B.2(v) above, an election to amend a Curable Option to reflect an Amended Exercise Schedule will not extend the period in which you may exercise the Amended Option. Except as provided in Section
II.B.2(v) above, such election will have the sole effect of limiting the period(s) during which you may exercise the Amended Option. 
 3. Except as set forth in this Section II.B and Section III below, the remaining terms and
conditions of your At Risk Options, including the portions that are Amended Options, will remain the same.5

  

	III.	PROVISIONS APPLICABLE REGARDLESS OF THE APPROACH SELECTED 

 You will
receive no compensatory payments in connection with the amendment of any Curable Options. 
 You do not have to agree to amend any of your Curable Options.
If you elect to amend more than one of your Curable Options, you may elect to amend one (or more) option(s) to reflect the Amended Exercise Price and one (or more) option(s) to reflect the Amended Exercise Schedule. 
 If you accept this offer to amend one or more of your Curable Options, such amendment will be effective as of the date on which you accepted this offer. The Company will
issue you an amended option agreement for each Amended Option reflecting the amended terms and conditions. The amendment of your At Risk Options as to the Curable Options 

	 4
	 You should be aware that a termination of employment in the last year of an option may result in the
option not being exercisable for 6 months. If such termination were to occur less than six months prior to the termination date for the option, you may not be permitted to exercise such option and the option might expire unexercised. See Section
II.B.2(v). 

	 5
	 It should be noted that all At Risk Options will be deemed to be nonqualified stock options whether or
not the option is amended pursuant to this offer and whether or not the option originally purported to be an incentive stock option. 

  

 4 

 
will not materially affect the terms and conditions of the other option shares subject to the At Risk Options. This letter, and any amendment of your Curable
Options, does not modify the at will nature of your service with the Company. 
 Please note that even if you accept this offer to amend your Curable
Options, and regardless of the alternative that you choose, your ability to exercise your Amended Options will remain subject to compliance with applicable laws and requirements (including any legal limitations, requirements or restrictions arising
from the Company’s legal situation in relation to its equity compensation practices) and the Company’s policies on trading in Company securities. In addition, in no event may you exercise your Options as to unvested shares. 
 Whether or not you choose to accept this offer, your Options will be deemed to be nonqualified stock options for federal income tax purposes and not incentive stock
options. 
 Finally, while we believe that the acceptance of this offer should result in the avoidance of the potential adverse tax consequences under
Section 409A with respect to the Amended Options, such interpretation is not free from doubt. Certain states have adopted tax laws that are similar in effect to Section 409A and we make no representations as to the effect of this offer
under federal tax laws or such state tax provisions. In all cases, you will be solely responsible for any taxes, penalties, or interest payable under Section 409A (and any state laws of similar effect) in connection with your Options. Before
deciding whether to accept our offer to amend your Curable Options, you are strongly encouraged to consult with your personal tax, financial and legal advisors. 
  

	IV.	PROCEDURE TO ACCEPT OFFER 

 If you wish to accept this offer, you must
complete the Election Form attached to this letter as Exhibit B and return it to Rafael Torres on or before the Expiration Date. 
  

	V.	CIRCULAR 230 DISCLAIMER. 

 The following disclaimer is provided in
accordance with the Internal Revenue Service’s Circular 230 (21 CFR Part 10). This advice is not intended or written to be used, and it cannot be used, by you for the purpose of avoiding any penalties that may be imposed on you. This advice was
written to support the promotion or marketing of amending your Curable Options as set forth in this letter. You should seek advice based on your particular circumstances from an independent tax advisor. 
 Sincerely, 
  

	
	 /s/ Rafael Torres

	Rafael Torres
	Chief Financial Officer and
	Vice President, Finance and Administration

  

 5 

 EXHIBIT A 
 OPTIONS 
  

											
	 GRANT
NUMBER
	  	 OPTION PRICE
(ORIGINAL)
	  	 AMENDED
 EXERCISE PRICE
	  	 EXPIRATION DATE
 (ORIGINAL)
	  	 TOTAL SHARES
 UNDER OPTION
	  	 CURABLE OPTIONS

	 1246
	  	$12.10	  	$16.00	  	5/30/11	  	    8,264	  	      861
	 1247
	  	$12.10	  	$16.00	  	5/30/11	  	291,736	  	  30,390
	 2077
	  	$14.82	  	$21.20	  	2/20/12	  	    6,747	  	    1,968
	 2078
	  	$14.82	  	$21.20	  	2/20/12	  	193,253	  	  56,366
	 2170
	  	$17.75	  	$18.95	  	1/7/13	  	    5,633	  	    2,934
	 2171
	  	$17.75	  	$18.95	  	1/7/13	  	294,367	  	153,317

  

 6 

 EXHIBIT B 
 ELECTION FORM 
 I elect to amend the following At Risk Options to increase the current
exercise price to the Amended Exercise Price as to all of the Curable Options subject to these At Risk Options: 
  

					
	 GRANT
NUMBER
	  	 OPTION PRICE (ORIGINAL)
	  	 AMENDED EXERCISE
PRICE

	 2170
	  	$17.75	  	$18.95
	 2171
	  	$17.75	  	$18.95

 I elect to amend the following At Risk Options to reflect an Amended Exercise Schedule as to all of the Curable
Options subject to these At Risk Options: 
  

							
	 GRANT
NUMBER
	  	 OPTION PRICE (ORIGINAL)
	  	 SELECTED YEAR
	  	 NUMBER OF CURABLE OPTIONS
 TO
BE EXERCISABLE IN
SELECTED YEAR*

	 1246
	  	$12.10	  	2007	  	    861
	 1247
	  	$12.10	  	2007	  	15,000
	 1247
	  	$12.10	  	2008	  	15,390
	 2077
	  	$14.82	  	2007	  	  1,968
	 2078
	  	$14.82	  	2007	  	25,000
	 2078
	  	$14.82	  	2008	  	31,366

	*	If you choose to have an At Risk Option fully exercisable within a single calendar year, then this column should be equal to the number of “Curable Options” for that At
Risk Option. If you choose to amend an At Risk Option such that its exercise schedule is split among two or more years, the sum of the entries in this column should be equal to the number of Curable Options for each At Risk Option.

  

 7 

 I decline the amendment of the following At Risk Options: 
  

									
	 GRANT
NUMBER
	  	 OPTION PRICE
(ORIGINAL)
	  	 EXPIRATION DATE
 (ORIGINAL)
	  	 SHARES UNDER AT
 RISK
OPTION
	  	 CURABLE OPTIONS

	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 

 I understand the amendment of my At Risk Options as indicated on this Election Form (a) is subject to the
terms and conditions set forth in the letter to me from the Company dated December 8, 2006 to which this Election Form is attached and (b) is irrevocable. I agree to execute such additional documentation as reasonably requested by the
Company in connection with the amendment of my At Risk Options, including amended stock option agreements in respect of the At Risk Options that contain terms consistent with the terms of this Election Form. 
 I acknowledge that I am not required to accept the offer to amend my At Risk Options. I further acknowledge and agree that if I do not accept the offer as to any of my
At Risk Options, such At Risk Options will remain outstanding on the terms granted to me. I understand that the Company is not providing me with any compensatory payments in connection with my election. 
 I understand that regardless of my election, I will be solely responsible for any adverse tax consequences that arise as a result of Section 409A in respect of my
At Risk Options. I further acknowledge that the Company has not and is not providing me with any financial, legal or tax advice and has directed me to seek independent financial, legal and tax advice regarding my election. I have done so, or
knowingly declined to do so. 
  

			
	 /s/ Balu Balakrishnan

	Print Name:	 	Balu Balakrishnan
	Date:	 	December 15, 2006

  

 8

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