Document:

Indemnification Agreement

 EXHIBIT 10.7 
  
 INDEMNIFICATION AGREEMENT 
  
 THIS AGREEMENT (the “Agreement”) is made and entered into effective as of November 15, 2005 between Netopia, Inc., a Delaware corporation
(“the Company”) and J. Francois Crepin (“Indemnitee”). 
  
 WITNESSETH THAT: 
  
 WHEREAS,
Indemnitee has been elected as a member of the Board of Directors of the Company, and in such capacity performs a valuable service for the Company; and 
  
 WHEREAS, the Board of Directors of the Company have adopted Bylaws (the “Bylaws”) providing for the indemnification of the officers and
directors of the Company to the maximum extent authorized by Section 145 of the Delaware General Corporation Law, as amended (“Law”); and 
  
 WHEREAS, the Bylaws and the Law, by their nonexclusive nature, permit contracts between the Company and the officers or directors of the Company with
respect to indemnification of such officers or directors; and 
  
 WHEREAS, in accordance with the authorization as provided by the Law, the Company may purchase and maintain a policy or policies of directors’ and officers’ liability insurance (“D & O Insurance”), covering
certain liabilities which may be incurred by its officers or directors in the performance of their obligations to the Company; and 
  
 WHEREAS, as a result of recent developments affecting the terms, scope and availability of D & O Insurance there exists general uncertainty
as to the extent of protection afforded Company officers and directors by such D & O Insurance and said uncertainty also exists under statutory and bylaw indemnification provisions; and 
  
 WHEREAS, in order to induce Indemnitee to serve as an officer or director of
the Company, the Company has determined and agreed to enter into this contract with Indemnitee; 

 NOW, THEREFORE, in consideration of Indemnitee’s continued service as an officer or director after
the date hereof, the parties hereto agree as follows: 
  
 1.
Indemnity of Indemnitee. The Company hereby agrees to hold harmless and indemnify Indemnitee to the full extent authorized or permitted by the provisions of the Law, as such may be amended from time to time, and Article VII,
Section 6 of the Bylaws, as such may be amended. In furtherance of the foregoing indemnification, and without limiting the generality thereof: 
  
 (a) Proceedings Other Than Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of
indemnification provided in this Section 1(a) if, by reason of his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or participant in any Proceeding (as hereinafter defined) other than a Proceeding by or
in the right of the Company. Pursuant to this Section 1(a), Indemnitee shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him or on
his behalf in connection with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal
Proceeding, had no reasonable cause to believe his conduct was unlawful. 
  
 (b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to the rights of indemnification provided in this Section 1(b) if, by reason of his Corporate Status, he is, or is threatened
to be made, a party to or participant in any Proceeding brought by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 1(b), Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection with such Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company; provided, however, that, if applicable law so
provides, no indemnification against such Expenses shall be made in respect of any claim, issue or matter in such Proceeding as to which Indemnitee shall have been adjudged to be liable to the Company unless and to the extent that the Court of
Chancery of the State of Delaware shall determine that such indemnification may be made. 
  
 (c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified to the maximum extent permitted by law against all Expenses actually
and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section and without
limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
  
 2. Additional Indemnity. In addition to, and without regard to any
limitations on, the indemnification provided for in Section 1, the Company shall and hereby does indemnify and hold harmless Indemnitee against all Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by him or on his behalf if, by reason of his Corporate Status he is, or is threatened to be made, a party 

 
to or participant in any Proceeding (including a Proceeding by or in the right of the Company), including, without limitation, all liability arising out of
the negligence or active or passive wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s obligations pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to Indemnitee that
is finally determined (under the procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful under Delaware law. 
  
 3. Contribution in the Event of Joint Liability. 
  
 (a) Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in respect of any threatened, pending or
completed action, suit or proceeding in which Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), Company shall pay, in the first instance, the entire amount of any judgment or settlement of such
action, suit or proceeding without requiring Indemnitee to contribute to such payment and Company hereby waives and relinquishes any right of contribution it may have against Indemnitee. Company shall not enter into any settlement of any action,
suit or proceeding in which Company is jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding) unless such settlement provides for a full and final release of all claims asserted against Indemnitee. 
  
 (b) Without diminishing or impairing the obligations of the
Company set forth in the preceding subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion of any judgment or settlement in any threatened, pending or completed action, suit or proceeding in which Company is
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), Company shall contribute to the amount of expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred and paid or payable by Indemnitee in proportion to the relative benefits received by the Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in
such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, from the transaction from which such action, suit or proceeding arose; provided, however, that the proportion determined on the basis of relative benefit may, to
the extent necessary to conform to law, be further adjusted by reference to the relative fault of Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in
such action, suit or proceeding), on the one hand, and Indemnitee, on the other hand, in connection with the events that resulted in such expenses, judgments, fines or settlement amounts, as well as any other equitable considerations which the law
may require to be considered. The relative fault of Company and all officers, directors or employees of the Company other than Indemnitee who are jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), on the one
hand, and Indemnitee, on the other hand, shall be determined by reference to, among other things, the degree to which their actions were motivated by intent to gain personal profit or advantage, the degree to which their liability is primary or
secondary, and the degree to which their conduct is active or passive. 

 (c) Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by officers, directors or employees of the Company other than Indemnitee who may be jointly liable with Indemnitee. 
  
 4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of
his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. 
  
 5. Advancement of Expenses. Notwithstanding any other provision of
this Agreement, the Company shall advance all reasonable Expenses incurred by or on behalf of Indemnitee in connection with any Proceeding by reason of Indemnitee’s Corporate Status within ten days after the receipt by the Company of a
statement or statements from Indemnitee requesting such advance or advances from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee
and shall include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be indemnified against such Expenses. Any advances
and undertakings to repay pursuant to this Section 5 shall be unsecured and interest free. Notwithstanding the foregoing, the obligation of the Company to advance Expenses pursuant to this Section 5 shall be subject to the condition that,
if, when and to the extent that the Company determines that Indemnitee would not be permitted to be indemnified under applicable law, the Company shall be entitled to be reimbursed, within thirty (30) days of such determination, by Indemnitee
(who hereby agrees to reimburse the Company) for all such amounts theretofor paid; provided, however, that if Indemnitee has commenced or thereafter commences legal proceedings in a court of competent jurisdiction to secure a determination that
Indemnitee should be indemnified under applicable law, any determination made by the Company that Indemnitee would not be permitted to be indemnified under applicable law shall not be binding and Indemnitee shall not be required to reimburse the
Company for any advance of Expenses until a final judicial determination is made with respect thereto (as to which all rights of appeal therefrom have been exhausted or lapsed). 

 6. Procedures and Presumptions for Determination of Entitlement to Indemnification. It is the
intent of this Agreement to secure for Indemnitee rights of indemnity that are as favorable as may be permitted under the law and public policy of the State of Delaware. Accordingly, the parties agree that the following procedures and presumptions
shall apply in the event of any question as to whether Indemnitee is entitled to indemnification under this Agreement: 
  
 (a) To obtain indemnification (including, but not limited to, the advancement of Expenses and contribution by the Company) under this
Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent
Indemnitee is entitled to indemnification. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification. 
  
 (b) Upon written request by Indemnitee for indemnification
pursuant to the first sentence of Section 6(a) hereof, a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case by one of the following three methods, which shall
be at the election of Indemnitee: (1) by a majority vote of the disinterested directors, even though less than a quorum, or (2) by independent legal counsel in a written opinion, or (3) by the stockholders. 
  
 (c) If the determination of entitlement to indemnification
is to be made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be selected as provided in this Section 6(c). The Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that
such selection be made by the Board of Directors). Indemnitee or the Company, as the case may be, may, within 10 days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a
written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 13
of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If a written objection is made and
substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within 20 days after submission by Indemnitee of a
written request for indemnification pursuant to Section 6(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Court of Chancery of the State of Delaware or other
court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by
the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 6(b) hereof. The Company shall pay any
and all reasonable fees and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the procedures of
this Section 6(c), regardless of the manner in which such Independent Counsel was selected or appointed. 

 (d) In making a determination with respect to entitlement to indemnification hereunder,
the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 6(a) of this
Agreement. Anyone seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 
  
 (e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the
Enterprise (as defined below), including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or
records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Enterprise. In addition, the knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement. Whether or not the foregoing provisions of this Section 6(e) are satisfied,
it shall in any event be presumed that Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion, by clear and convincing evidence. 
  
 (f) The Company acknowledges that a settlement or other disposition short of final judgment may be successful if it permits a party to
avoid expense, delay, distraction, disruption and uncertainty. In the event that any action, claim or proceeding to which Indemnitee is a party is resolved in any manner other than by adverse judgment against Indemnitee (including, without
limitation, settlement of such action, claim or proceeding with or without payment of money or other consideration) it shall be presumed that Indemnitee has been successful on the merits or otherwise in such action, suit or proceeding. Anyone
seeking to overcome this presumption shall have the burden of proof and the burden of persuasion, by clear and convincing evidence. 
  
 (g) If the person, persons or entity empowered or selected under Section 6 to determine whether Indemnitee is entitled to
indemnification shall not have made a determination within thirty (30) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 30 day period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the person, persons or
entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating documentation and/or information relating thereto; and provided, further, that the foregoing
provisions of this 

 
Section 6(g) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 6(b) of
this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board of Directors or the Disinterested Directors, if appropriate, resolve to submit such determination to the
stockholders for their consideration at an annual meeting thereof to be held within seventy five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen
(15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made threat. 
  
 (h) Indemnitee shall cooperate with the person, persons or
entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or
otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any Independent Counsel, member of the Board of Directors, or stockholder of the Company shall act reasonably and in
good faith in making a determination under the Agreement of the Indemnitee’s entitlement to indemnification. Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.

  
 7. Remedies of Indemnitee. 
  
 (a) In the event that (i) a determination is made
pursuant to Section 6 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 5 of this Agreement, (iii) no determination of
entitlement to indemnification shall have been made pursuant to Section 6(b) of this Agreement within 90 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to this
Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification is not made within ten (10) days after a determination has been made that Indemnitee is entitled to
indemnification or such determination is deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to an adjudication in an appropriate court of the State of Delaware, or in any other court of competent
jurisdiction, of his entitlement to such indemnification. Indemnitee shall commence such proceeding seeking an adjudication within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this
Section 7(a). The Company shall not oppose Indemnitee’s right to seek any such adjudication. 
  
 (b) In the event that a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is not entitled
to indemnification, any 

 
judicial proceeding commenced pursuant to this Section 7 shall be conducted in all respects as a de novo trial, on the merits and Indemnitee
shall not be prejudiced by reason of that adverse determination. 
  
 (c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding
commenced pursuant to this Section 7, absent a prohibition of such indemnification under applicable law. 
  
 (d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of his rights under, or to recover
damages for breach of, this Agreement, or to recover under any directors’ and officers’ liability insurance policies maintained by the Company the Company shall pay on his behalf, in advance, any and all expenses (of the types described in
the definition of Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of
expenses or insurance recovery. 
  
 (e) The
Company shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court that
the Company is bound by all the provisions of this Agreement. 
  
 8. Non-Exclusivity; Survival of Rights; Insurance; Subrogation. 
  
 (a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may
at any time be entitled under applicable law, the certificate of incorporation of the Company, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of
any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change
in the Law, whether by statute or judicial decision, permits greater indemnification than would be afforded currently under the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given
hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. 

 
 (b) To the extent that the Company maintains an insurance
policy or policies providing liability insurance for directors, officers, employees, or agents or 

 
fiduciaries of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves
at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or
policies. 
  
 (c) In the event of any payment
under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of
such documents as are necessary to enable the Company to bring suit to enforce such rights. 
  
 (d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if and to the
extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. 
  
 9. Exception to Right of Indemnification. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to
indemnification under this Agreement with respect to any Proceeding brought by Indemnitee, or any claim therein, unless (a) the bringing of such Proceeding or making of such claim shall have been approved by the Board of Directors or
(b) such Proceeding is being brought by the Indemnitee to assert his rights under this Agreement. 
  
 10. Duration of Agreement. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is an officer
or director of the Company (or is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise) and shall continue thereafter so long as
Indemnitee shall be subject to any Proceeding (or any proceeding commenced under Section 7 hereof) by reason of his Corporate Status, whether or not he is acting or serving in any such capacity at the time any liability or expense is incurred
for which indemnification can be provided under this Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), assigns, spouses, heirs, executors and personal and legal representatives. This Agreement shall continue in effect regardless of
whether Indemnitee continues to serve as an officer or director of the Company or any other enterprise at the Company’s request. 
  
 11. Security. To the extent requested by the Indemnitee and approved by the Board of Directors, the Company may at any time and from time to time
provide security to the Indemnitee for the Company’s obligations hereunder through an irrevocable bank line of credit, funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be revoked or released without
the prior written consent of the Indemnitee. 

 12. Enforcement. 
  
 (a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the
obligations imposed on it hereby in order to induce Indemnitee to serve as an officer or director of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as an officer or director of the Company.

  
 (b) This Agreement constitutes the entire
agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof. 
  
 13. Definitions. For purposes of this Agreement: 
  
 (a) “Corporate Status” describes the status of a
person who is or was a director, officer, employee or agent or fiduciary of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the express
written request of the Company. 
  
 (b)
“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee. 
  
 (c) “Enterprise” shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the express written request of the Company as a director, officer, employee, agent or fiduciary. 
  
 (d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, costs of
appeals, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in
connection with prosecuting, defending, preparing to prosecute or defend, appealing, preparing to appeal, investigating, participating, or being or preparing to be a witness in a Proceeding. 
  
 (e) “Independent Counsel” means a law firm, or a
member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than
with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.
Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of 

 
professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out
of or relating to this Agreement or its engagement pursuant hereto. 
  
 (f) “Proceeding” includes any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual,
threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is or will be involved as a party or otherwise, by reason of
the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or of any inaction on his part while acting as an officer or director of the Company, or by reason of the fact that he is or was serving at
the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise; in each case whether or not he is acting or serving in any such capacity at the time any liability or
expense is incurred for which indemnification can be provided under this Agreement; including one pending on or before the date of this Agreement; and excluding one initiated by an Indemnitee pursuant to Section 7 of this Agreement to enforce
his rights under this Agreement. 
  
 14. Severability. If
any provision or provisions of this Agreement shall be held by a court of competent jurisdiction to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, each portion of any section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in
any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; and (b) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any section of
this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby. 
  
 15. Modification and Waiver. No supplement, modification, termination
or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or
not similar) nor shall such waiver constitute a continuing waiver. 
  
 16. Notice By Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter
which may be subject to indemnification covered hereunder. The failure to so notify the 

 
Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
  
 17. Notices. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (ii) mailed by certified or
registered mail with postage prepaid, on the third business day after the date on which it is so mailed: 
  
 (a) If to Indemnitee, to the address set forth below Indemnitee signature hereto. 
  
 (b) If to the Company, to: 
  
 Netopia, Inc. 
 6001 Shellmound Street, 4th Floor 
 Emeryville, CA 94608 
 Attention: Chief Executive Officer 
  
 or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
  
 18. Identical Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to
be produced to evidence the existence of this Agreement. 
  
 19.
Headings. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof. 
  
 20. Governing Law. The parties agree that this Agreement shall be
governed by, and construed and enforced in accordance with, the laws of the State of Delaware without application of the conflict of laws principles thereof. 

 21. Gender. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun
where appropriate. 
  
 IN WITNESS WHEREOF, the parties hereto have
executed this Agreement effective as of the day and year first above written. 
  

			
	NETOPIA, INC.
		
	By:	 	/s/ Alan B. Lefkof
	 	 	Alan B. Lefkof
	 	 	President and Chief Executive Officer

  

			
	
	/s/ J. Francois Crepin
	Indemnitee:	 	J. Francois Crepin
	Address:	 	 275 Turn Pike Drive
 Folsom, CA
95630First Amended and Restated Loan Agreement

 Exhibit 10.1 
  
 

 
  
 FIRST AMENDED AND RESTATED LOAN
AGREEMENT 
  
 THIS FIRST AMENDED AND RESTATED LOAN
AGREEMENT (“Agreement”) is made and entered into as of November 1, 2005 by and between RESMED CORP., a Minnesota corporation, and RESMED EAP HOLDINGS INC. a Delaware corporation, whose obligations hereunder shall be joint and
several (each individually, a “Borrower”, and collectively, the “Borrowers”) and UNION BANK OF CALIFORNIA, N.A. (“Bank”). 
  
 RECITALS 
  
 A. ResMed Corp., ResMed International, Inc. (collectively, the “Existing Borrowers”) and Bank are parties to the Loan
Agreement dated as of April 11, 2003, as amended (collectively, the “Existing Loan Agreement”), pursuant to which the Bank provided Existing Borrowers with various credit facilities. 
  
 B. As part of a reorganization of its business units,
ResMed, Inc., as parent company of ResMed Corp., ResMed International, Inc. and Resmed EAP Holdings Inc., has requested that ResMed International, Inc. be removed as a loan party and that Resmed EAP Holdings Inc. be substituted in its place.

  
 C. Borrowers and Bank wish to enter
into this Agreement which shall amend, restate, replace and supercede (but shall not constitute a novation of) the Existing Loan Agreement and which hereinafter shall govern the credit facilities provided to Borrowers by Bank. 
  
 SECTION 1. THE LOAN 
  
 1.1.1 The Revolving Loan A. Bank will loan to
Borrowers an amount not to exceed Fifteen Million Dollars ($15,000,000) outstanding in the aggregate at any one time (the “Revolving Loan A”). Borrower may borrow, repay and reborrow all or part of the Revolving Loan A in amounts of not
less than One Million Dollars ($1,000,000) in accordance with the terms of the Revolving Note A. All borrowings of the Revolving Loan A must be made before October 1, 2008 at which time all unpaid principal and interest of the Revolving Loan
shall be due and payable. The Revolving Loan A shall be evidenced by a promissory note (the “Revolving Note A”) on the standard form used by Bank for commercial loans. Bank shall enter each amount borrowed and repaid in Bank’s records
and such entries shall be deemed to be the amount of the Revolving Loan A outstanding. Omission of Bank to make any such entries shall not discharge Borrowers of their obligation to repay in full with interest all amounts borrowed. 
  
 1.1.1.1 The Standby L/C Sublimit. As a sublimit to
the Revolving Loan A, Bank shall issue, for the account of Borrowers, one or more irrevocable, standby letters of credit (individually, an “L/C” and collectively, the “L/Cs”). All such standby L/Cs shall be drawn on such terms
and conditions as are acceptable to Bank. The aggregate amount available to be drawn under all outstanding L/Cs and the aggregate amount of unpaid reimbursement obligations under drawn L/Cs shall not exceed Two Million Dollars ($2,000,000) and shall
reduce, dollar for dollar, the maximum amount available under the Revolving Loan A. No standby L/C shall have an expiry 

  

 - 1 - 

 
date more than twelve months from its date of issuance and each L/C shall be governed by the terms of (and Borrower agrees to execute) Bank’s standard
form for standby L/C applications and reimbursement agreements. No L/C shall expire after October 1, 2008. 
  
 1.1.2 The Revolving Loan B. Bank will loan to Borrowers an amount not to exceed Twenty Five Million Dollars ($25,000,000)
outstanding in the aggregate at any one time (the “Revolving Loan B”). Borrower may borrow, repay and reborrow all or part of the Revolving Loan B in amounts of not less than One Million Dollars ($1,000,000) in accordance with the terms of
the Revolving Note B. All borrowings of the Revolving Loan B must be made before October 1, 2008, at which time all unpaid principal and interest of the Revolving Loan shall be due and payable. The Revolving Loan B shall be evidenced by a
promissory note (the “Revolving Note B”) on the standard form used by Bank for commercial loans. Bank shall enter each amount borrowed and repaid in Bank’s records and such entries shall be deemed to be the amount of the Revolving
Loan B outstanding. Omission of Bank to make any such entries shall not discharge Borrowers of their obligation to repay in full with interest all amounts borrowed. 
  
 1.2 Terminology. 
  
 As used herein the word “Loan” shall mean, collectively, all the credit facilities described
above. 
  
 As used herein the word
“Note” shall mean, collectively, all the promissory notes described above. 
  
 As used herein, the words “Loan Documents” shall mean all documents executed in connection with this Agreement. 
  
 1.3 Purpose of Loan. The proceeds of the Revolving
Loan A and Revolving Loan B shall be used for working capital and general corporate purposes. 
  
 1.4 Interest. The unpaid principal balance of Revolving Loan A and Revolving Loan B shall bear interest at the rate or rates
provided in the Revolving Note A and the Revolving Note B and selected by Borrower. The Revolving Loan A and Revolving Loan B may be prepaid in full or in part only in accordance with the terms of the Revolving Note A and Revolving Note B and any
such prepayment shall be subject to the prepayment fee provided for therein. 
  
 1.5 Unused Commitment Fee. On the last calendar day of the third month following the execution of this Agreement and on the last calendar day of each three-month period thereafter until June 2, 2008, or
the earlier termination of the Loan, Borrowers shall pay to Bank a fee on the average unused portion of the Loan for the preceding quarter computed on the basis of actual days elapsed of a year of 360 days in accordance with the table below:

  

			
	 Average Unused Portion of the Loan

	  	 Per Annum Fee

	 Less than $25,000,000
	  	0 basis points
	 Greater than or equal to $25,000,000 but less than $32,500,000
	  	12.5 basis points
	 Greater than or equal to $32,500,000
	  	25 basis points

  
 1.6
Balances. Borrowers shall maintain their primary domestic depository accounts with Bank so long as the Loan remains available to Borrowers. 
  
 1.7 Disbursement. Upon execution hereof, Bank shall disburse the proceeds of the Loan as provided in Bank’s standard form
Authorization executed by Borrowers. 
  

 - 2 - 

 1.8 Security. Prior to any disbursement of the Loan, Borrowers shall have executed
a security agreement, on Bank’s standard form, and a financing statement, suitable for filing in the office of the Secretary of State of the State of California and any other state designated by Bank, granting to Bank a first priority security
interest in such of Borrower’s property as is described in said security agreement. Exceptions to Bank’s first priority, if any, are permitted only as otherwise provided in this Agreement or specifically in writing by Bank. ResMed Corp.
shall also have executed a deed of trust, in Bank’s standard form, granting to Bank a first-priority lien in the real property described in said deed of trust. Borrower shall comply with all of Bank’s requirements with respect to such real
property collateral, including, but not limited to, appraisal, assessment of environmental risk, recording and obtaining of title insurance. At Bank’s request, Borrowers will also obtain executed landlord’s and mortgagee’s waivers on
Bank’s form covering all of Borrowers’ property located on leased or encumbered real property. 
  
 1.9 Controlling Document. In the event of any inconsistency between the terms of this Agreement and any Note or any of the other
Loan Documents, the terms of such Note or other Loan Documents will prevail over the terms of this Agreement. 
  
 SECTION 2. CONDITIONS PRECEDENT 
  
 Bank shall not be obligated to disburse all or any portion of the proceeds of the Loan unless at or prior to the time for the making of such disbursement,
the following conditions have been fulfilled to Bank’s satisfaction: 
  
 2.1 Compliance. Borrower shall have performed and complied with all terms and conditions required by this Agreement to be performed or complied with by it prior to or at the date of the making of such
disbursement and shall have executed and delivered to Bank the Note and other documents deemed necessary by Bank. 
  
 2.2 Guaranties. ResMed, Inc. (“Guarantor”) shall have executed and delivered to Bank a continuing guaranty in form and
amount satisfactory to Bank. 
  
 2.3 Borrowing
Resolution. Borrowers shall have provided Bank with certified copies of resolutions duly adopted by the Board of Directors of each Borrower, authorizing this Agreement and the Loan Documents. Such resolutions shall also designate the persons who
are authorized to act on Borrowers’ behalf in connection with this Agreement and to do the things required of Borrowers pursuant to this Agreement. 
  
 2.4 Termination Statements. Borrower shall have provided Bank with UCC-2 termination statements executed by such secured creditors
as may be required by Bank suitable for filing with the Secretary of State in each state designated by Bank. 
  
 2.5 Continuing Compliance. At the time any disbursement is to be made, there shall not exist any event, condition or act which
constitutes an event of default under Section 6 hereof or any event, condition or act which with notice, lapse of time or both would constitute such event of default; nor shall there be any such event, condition, or act immediately after the
disbursement were it to be made. 
  

 - 3 - 

 SECTION 3. REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents and warrants that: 
  
 3.1 Business Activity. The principal business of
Borrowers is the design, manufacture and distribution of breathing devices and other electrical instruments. 
  
 3.2 Affiliates and Subsidiaries. Borrowers’ affiliates and subsidiaries (those entities in which Borrowers have either a
controlling interest or at least a 25% ownership interest) and their addresses, and the names of Borrowers’ principal shareholders, are as provided on a schedule delivered to Bank on or before the date of this Agreement. 
  
 3.3 Authority to Borrow. The execution, delivery and
performance of this Agreement, the Note and all other agreements and instruments required by Bank in connection with the Loan are not in contravention of any of the terms of any indenture, agreement or undertaking to which Borrowers are a party or
by which it or any of its property is bound or affected. 
  
 3.4 Financial Statements. The financial statements of Borrowers, as presented by Guarantor on a consolidated and consolidating basis inclusive of Borrowers, including both a balance sheet at June 30, 2005,
together with supporting schedules, and an income statement for the twelve (12) months ended June 30, 2005, have heretofore been furnished to Bank, and are true and complete and fairly represent the financial condition of the Guarantor and
Borrowers during the period covered thereby. Since June 30, 2005, there has been no material adverse change in the financial condition or operations of Borrower. 
  
 3.5 Title. Except for assets which may have been disposed of in the ordinary course of business,
Borrowers have good and marketable title to all of the property reflected in its financial statements delivered to Bank and to all property acquired by Borrowers since the date of said financial statements, free and clear of all liens, encumbrances,
security interests and adverse claims except those specifically referred to in said financial statements. 
  
 3.6 Litigation. There is no litigation or proceeding pending or threatened against Borrowers or any of its property which is
reasonably likely to affect the financial condition, property or business of Borrower in a materially adverse manner or result in liability in excess of Borrowers’ insurance coverage. 
  
 3.7 Default. Borrowers are not now in default in the
payment of any of its material obligations, and there exists no event, condition or act which constitutes an event of default under Section 6 hereof and no condition, event or act which with notice or lapse of time, or both, would constitute an
event of default. 
  
 3.8 Organization.
Borrowers are duly organized and existing under the laws of the state of its organization, and have the power and authority to carry on the business in which it is engaged and/or proposes to engage. 
  
 3.9 Power. Borrowers have the power and authority to
enter into this Agreement and to execute and deliver the Note and all of the other Loan Documents. 
  
 3.10 Authorization. This Agreement and all things required by this Agreement have been duly authorized by all requisite action of
Borrowers. 
  
 3.11 Qualification.
Borrowers are duly qualified and in good standing in any jurisdiction where such qualification is required. 
  
 3.12 Compliance With Laws. Borrowers are not in violation with respect to any applicable laws, rules, ordinances or regulations
which materially affect the operations or financial condition of Borrowers. 
  

 - 4 - 

 3.13 ERISA. Any defined benefit pension plans as defined in the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), of Borrowers meet, as of the date hereof, the minimum funding standards of Section 302 of ERISA, and no Reportable Event or Prohibited Transaction as defined in ERISA has
occurred with respect to any such plan. 
  
 3.14 Regulation U. No action has been taken or is currently planned by Borrowers, or any agent acting on its behalf, which would cause this Agreement or the Note to violate Regulation U or any other regulation of the Board of
Governors of the Federal Reserve System or to violate the Securities and Exchange Act of 1934, in each case as in effect now or as the same may hereafter be in effect. Borrowers are not engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock as one of its important activities and none of the proceeds of the Loan will be used directly or indirectly for such purpose. 
  
 3.15 Continuing Representations. These representations shall be considered to have been made again at
and as of the date of each disbursement of the Loan and shall be true and correct as of such date or dates. 
  
 SECTION 4. AFFIRMATIVE COVENANTS 
  
 Until the Note and all sums payable pursuant to this Agreement or any other of the Loan Documents have been paid in full, unless Bank waives compliance in
writing, Borrowers agree that: 
  
 4.1 Use of
Proceeds. Borrowers will use the proceeds of the Loan only as provided in subsection 1.3 above. 
  
 4.2 Payment of Obligations. Borrowers will pay and discharge promptly all taxes, assessments and other governmental charges and
claims levied or imposed upon it or its property, or any part thereof, provided, however, that Borrowers shall have the right in good faith to contest any such taxes, assessments, charges or claims and, pending the outcome of such contest, to delay
or refuse payment thereof provided that adequately funded reserves are established by it to pay and discharge any such taxes, assessments, charges and claims. 
  

4.3 Maintenance of Existence. Borrowers will maintain and preserve its existence and assets and all rights, franchises, licenses
and other authority essential and necessary for the conduct of its business and will maintain and preserve its property, equipment and facilities in good order, condition and repair. Bank may, at reasonable times, visit and inspect any of the
properties of Borrowers. 
  
 4.4 Records.
Borrowers will keep and maintain full and accurate accounts and records of its operations according to generally accepted accounting principles and will permit Bank to have access thereto, to make examination and photocopies thereof, and to make
audits during regular business hours. Costs for such audits shall be paid by Borrowers. 
  
 4.5 Information Furnished. Borrowers will furnish or cause Guarantor to furnish to Bank: 
  
 (a) Within forty-five (45) days after the close of each
of the first, second and third fiscal quarters, and ninety (90) days after the close of the fourth fiscal quarter, Guarantor’s unaudited consolidating and consolidated balance sheet as of the close of such fiscal quarter, its unaudited
consolidating and consolidated income and expense statement with supportive schedules and statement of retained earnings for that fiscal quarter, prepared in accordance with generally accepted accounting principles; 
  

 - 5 - 

 (b) Within ninety (90) days after the close of each fiscal year, a copy of
Guarantor’s statement of financial condition including at least its consolidated balance sheet as of the close of such fiscal year, its consolidated income and expense statement and retained earnings statement for such fiscal year, examined and
prepared on an audited basis by independent certified public accountants selected by Guarantor and reasonably satisfactory to Bank, in accordance with generally accepted accounting principles applied on a basis consistent with that of the previous
year; 
  
 (c) As soon as available, copies of
such financial statements and reports as Borrowers or Guarantor may file with any state or federal agency, including those filed with the Securities and Exchange Commission; 
  
 (d) Such other financial statements and information as Bank may reasonably request from time to time;

  
 (e) In connection with each financial
statement provided hereunder, a statement executed by the Chief Financial Officer or Vice President Treasury and Finance or Regional Controller of Borrowers, certifying, to the best of such person’s knowledge, that no default has occurred and
no event exists which with notice or the lapse of time, or both, would result in a default hereunder and a certification, in form and detail acceptable to Bank, demonstrating that Borrowers are in compliance with all covenants under this Agreement;

  
 (f) Prompt written notice to Bank of all
material events of default under any of the terms or provisions of this Agreement or of any other agreement, contract, document or instrument entered, or to be entered into with Bank; and of any litigation which, if decided adversely to Borrowers or
Guarantor, would have a material adverse effect on Borrowers’ or Guarantor’s financial condition; and of any other matter which has resulted in, or is likely to result in, a material adverse change in its financial condition or operations;
and 
  
 (g) Prior written notice to Bank of any
changes in Borrowers’ or Guarantor’s officers and other senior management; Borrowers’ or Guarantor’s names; and location of Borrowers’ or Guarantor’s assets, principal place of business or chief executive office.

  
 4.6 Total Funded Debt to EBITDA Ratio.
Borrowers shall cause Guarantor to at all times maintain a Total Funded Debt to EBITDA Ratio of not greater than 2.50 : 1.0. “Total Funded Debt” shall mean, for the Guarantor and its subsidiaries on a consolidated basis, the sum of the
outstanding principal of all indebtedness including, without duplication, all indebtedness for borrowed money, deferred purchase price of property or services evidenced by a note, bond, debenture or similar instrument, obligations in respect of
acceptances issued or created representing extensions of credit, and all liabilities secured by any lien on any property owned. “EBITDA” shall mean, for the Guarantor and its subsidiaries on a consolidated basis, net income, exclusive of
extraordinary gains and losses, plus (i) payment or provisions for income taxes, (ii) depreciation and amortization, (iii) interest expense, and (iv) non-cash stock option expenses. For purposes of calculating this
covenant, EBITDA shall be measured for the quarter most recently ended and the immediately preceding three fiscal quarters. 
  

 - 6 - 

 4.7 Senior Funded Debt to EBITDA Ratio. Borrowers shall cause Guarantor to at all
times maintain a Senior Funded Debt to EBITDA Ratio of not greater than the correlative ratio indicated below for such fiscal quarter: 
  

			
	 Fiscal Quarter Ending

	  	Maximum Senior Funded
Debt to EBITDA Ratio

	 June 30, 2005
	  	1.50 : 1
	 September 30, 2005
	  	1.50 : 1
	 December 31, 2005
	  	2.00 : 1
	 March 31, 2006
	  	2.00 : 1
	 June 30, 2006
	  	2.00 : 1
	 September 30, 2006
	  	2.00 : 1
	 December 31, 2006
	  	2.00 : 1
	 March 31, 2007
	  	2.00 : 1
	 June 30, 2007
	  	1.75 : 1
	 September 30, 2007
	  	1.50 : 1
	 December 31, 2007
	  	1.50 : 1
	 March 31, 2008
	  	1.50 : 1
	 June 30, 2008
	  	1.50 : 1

  
 “Senior Funded Debt” shall mean, for the Guarantor and its subsidiaries on a consolidated basis, the sum of the outstanding principal of all indebtedness including, without duplication, all indebtedness for borrowed money,
deferred purchase price of property or services evidenced by a note, bond, debenture or similar instrument, obligations in respect of acceptances issued or created representing extensions of credit, and all liabilities secured by any lien on any
property owned, less any indebtedness that, by its terms, is specifically subordinated in right of payment to Bank and other senior indebtedness of the Guarantor and its subsidiaries including those 4% Convertible Subordinated Notes maturing
June 20, 2006 issued by the Guarantor in the initial amount of $180,000,000 pursuant to that certain Indenture dated as of June 20, 2001. For purposes of calculating this covenant, EBITDA shall be measured for the quarter most recently
ended and the immediately preceding three fiscal quarters. 
  
 4.8 Tangible Net Worth. Borrowers shall cause Guarantor to at all times maintain Tangible Net Worth of not less than the correlative value indicated below, less Permitted Stock Repurchases, for such fiscal
quarter: 
  

				
	 Fiscal Quarter Ending

	  	Tangible Net Worth

	 June 30, 2005
	  	$	170,000,000
	 September 30, 2005
	  	$	170,000,000
	 December 31, 2005
	  	$	170,000,000
	 March 31, 2006
	  	$	170,000,000
	 June 30, 2006 and as of the last day of each fiscal quarter thereafter
	  	$	200,000,000

  
 “Tangible Net Worth” shall
mean net worth of Guarantor and its subsidiaries on a consolidated basis increased by indebtedness of Guarantor and its subsidiaries subordinated to Bank and decreased by patents, licenses, trademarks, trade names, goodwill and other similar
intangible assets, organizational expenses, and monies due from affiliates (including officers, shareholders and directors). “Permitted Stock Repurchases” shall mean such amount of Guarantor’s common stock as the Guarantor may
repurchase as permitted under Section 5.7 hereof. 
  

 - 7 - 

 4.9 Discrete Quarterly Consolidated EBITDA. Borrowers shall cause Guarantor to at
all times maintain EBITDA of not less than the correlative value indicated below for such fiscal quarter: 
  

				
	 Fiscal Quarter Ending

	  	Discrete Quarterly
Consolidated EBITDA

	 June 30, 2005
	  	$	22,000,000
	 September 30, 2005
	  	$	22,000,000
	 December 31, 2005
	  	$	22,000,000
	 March 31, 2006
	  	$	22,000,000
	 June 30, 2006 and as of the last day of each fiscal quarter thereafter
	  	$	25,000,000

  
 For purposes of calculating this
covenant, EBITDA shall be measured solely for the quarter most recently ended. 
  
 4.10 Rolling Four-Quarter Unconsolidated EBITDA. ResMed Corp. will maintain minimum EBITDA of not less than $3,000,000. For
purposes of calculating this covenant, EBITDA shall be measured for the quarter most recently ended and the immediately preceding three fiscal quarters. 
  
 4.11 US Liquidity. Borrowers will maintain Liquidity of not less than $30,000,000. “Liquidity” shall mean the sum of
cash, marketable securities, and net accounts receivable of Borrowers on a combined basis that have been pledged to Bank under the Loan Documents and are maintained in the United States. 
  
 4.12 Insurance. Borrowers will and shall cause Guarantor to keep all of their insurable property,
real, personal or mixed, insured by companies and in amounts approved by Bank against fire and such other risks, and in such amounts, as is customarily obtained by companies conducting similar business with respect to like properties. Borrowers will
furnish to Bank statements of its insurance coverage, will promptly furnish other or additional insurance deemed necessary by and upon request of Bank to the extent that such insurance may be available and hereby assigns to Bank, as security for
Borrower’s obligations to Bank, the proceeds of any such insurance. Prior to any disbursement of the Loan, Bank will be named loss payee on all policies insuring collateral and such policies shall require at least ten (10) days’
written notice to Bank before any policy may be altered or cancelled. Borrowers will and shall cause Guarantor to maintain adequate worker’s compensation insurance and adequate insurance against liability for damage to persons or property.

  
 4.13 Additional Requirements.
Borrowers will promptly, upon demand by Bank, take such further action and execute all such additional documents and instruments in connection with this Agreement as Bank in its reasonable discretion deems necessary, and promptly supply Bank with
such other information concerning its affairs as Bank may request from time to time. 
  
 4.14 Litigation and Attorneys’ Fees. Borrowers will pay promptly to Bank upon demand, reasonable attorneys’ fees
(including but not limited to the reasonable estimate of the allocated costs and expenses of in-house legal counsel and legal staff) and all costs and other expenses paid or incurred by Bank in collecting, modifying or compromising the Loan or in
enforcing or exercising its rights or remedies created by, connected with or provided for in this Agreement or any of the Loan Documents, whether or not an arbitration, judicial action or other proceeding is commenced. If such proceeding is
commenced, only the prevailing party shall be entitled to attorneys’ fees and court costs. 
  
 4.15 Bank Expenses. Borrowers will pay or reimburse Bank for all costs, expenses and fees incurred by Bank in preparing and
documenting this Agreement and the Loan, and all amendments and modifications thereof, including but not limited to all filing and recording fees, costs of appraisals, insurance and attorneys’ fees, including the reasonable estimate of the
allocated costs and expenses of in-house legal counsel and legal staff. 
  

 - 8 - 

 4.16 Reports Under Pension Plans. Borrowers will and shall cause Guarantor to
furnish to Bank, as soon as possible and in any event within 15 days after Borrower knows or has reason to know that any event or condition with respect to any defined benefit pension plans of Borrowers or Guarantor described in Section 3 above
has occurred, a statement of an authorized officer of Borrowers or Guarantor describing such event or condition and the action, if any, which Borrowers or Guarantor proposes to take with respect thereto. 
  
 SECTION 5. NEGATIVE COVENANTS 
  
 Until the Note and all other sums payable pursuant to this Agreement or any
other of the Loan Documents have been paid in full, unless Bank waives compliance in writing, Borrowers agrees that: 
  
 5.1 Encumbrances and Liens. Borrowers will not, and shall cause Guarantor to not, except in the ordinary course of its business as
currently conducted, create, assume or suffer to exist any mortgage, pledge, security interest, encumbrance, or lien (other than for taxes not delinquent and for taxes and other items being contested in good faith) on property of any kind, whether
real, personal or mixed, now owned or hereafter acquired, or upon the income or profits thereof, except to Bank. 
  
 5.2 Borrowings. Borrowers will not, and shall cause Guarantor to not, except in the ordinary course of its business as currently
conducted, sell, discount or otherwise transfer any account receivable or any note, draft or other evidence of indebtedness, except to Bank. 
  
 5.3 Sale of Assets, Liquidation or Merger. Borrowers will not, and will cause Guarantor to not, except in the ordinary course of
its business as currently conducted, liquidate nor dissolve nor enter into any consolidation, merger, partnership or other combination, nor convey, nor sell, nor lease all or the greater part of its assets or business, nor purchase or lease all or
the greater part of the assets or business of another; provided, however, Guarantor and its subsidiaries may acquire, merge or consolidate with another corporation if Guarantor is the surviving corporation and provided that: (i) any note or
indebtedness incurred by Borrowers or Guarantor in connection with such acquisition is subordinated to Bank, (ii) all such assets acquired by Borrowers will not be subject to any lien or encumbrance following the effective date of such
combination other than that of Bank’s, and (iii) prior to and giving effect to such acquisition, no Default shall have occurred and Borrowers will have delivered to Bank a certificate of compliance prepared on a pro forma basis assuming
such acquisition had occurred demonstrating that Borrowers shall remain in compliance with the terms of this Agreement. 
  
 5.4 Loans, Advances and Guaranties. Borrowers will not and shall cause Guarantor to not, except in the ordinary course of its
business as currently conducted, make any loans or advances, become a guarantor or surety, pledge its credit or properties in any manner or extend credit. 
  
 5.5 Investments. Borrowers will not and shall cause Guarantor to not purchase the debt or equity of another person or entity except
for savings accounts and certificates of deposit of Bank, direct U.S. Government obligations, municipal obligations rated by Moody’s as A-1 or better or rated by Standard & Poor’s as P-1 or better, obligations issued by
corporations rated by Moody’s as A-2 or better or rated by Standard & Poor’s as P-2 or better, and other instruments rated by Moody’s as Aaa or rated by Standard & Poor’s as AAA. Except for U.S. Government
obligations, all such permitted investments shall mature within eighteen months of purchase. 
  

 - 9 - 

 5.6 Payment of Dividends. Borrowers will not and shall cause Guarantor to not
declare or pay any dividends, other than a dividend payable in its own common stock, or authorize or make any other distribution with respect to any of its stock now or hereafter outstanding. 
  
 5.7 Retirement of Stock. Borrowers will not and shall
cause Guarantor to not acquire or retire any share of its capital stock for value except as such action is approved by Guarantor’s board of directors and is disclosed to Bank prior to the execution of such action. 
  
 5.8 Parent and Subsidiary Property. Borrowers will
not transfer any property to its parent or any affiliate of its parent, except for value received in the normal course of business as business would be conducted with an unrelated or unaffiliated entity. 
  
 5.9 Lease Obligations. Borrowers will not and shall
cause Guarantor to not incur new lease obligations as lessee except for equipment or real property needed by Borrowers or Guarantor and its subsidiaries in the ordinary course of its business. 
  
 5.10 Changes In Internal Operational Matters.
(i) Borrowers will not and shall cause Guarantor to not make any material change (from that existing on the closing date) to such Borrowers’ or Guarantor’s transfer pricing activity, cash flow or accounting structure and
(ii) ResMed Corp. shall not make any material change in its practice of purchasing inventory from its affiliates at current transfer pricing (except to the extent such change is required by applicable law), and selling such inventory in the
domestic market, except, in each case set forth in clause (i) or (ii), with the prior written consent of Bank (such consent not to be withheld if such change could not adversely affect the benefits to Bank of the structure evidenced by this
Agreement, including the likely value of the Guaranty and other Loan Documents, in each case as determined by Bank in its reasonable discretion). 
  
 SECTION 6. EVENTS OF DEFAULT 
  
 The occurrence of any of the following events (“Events of Default”) shall terminate any obligation on the part of Bank to make or continue the
Loan and automatically, unless otherwise provided under the Note, shall make all sums of interest and principal and any other amounts owing under the Loan immediately due and payable, without notice of default, presentment or demand for payment,
protest or notice of nonpayment or dishonor, or any other notices or demands: 
  
 6.1 Borrowers shall default in the due and punctual payment of the principal of or the interest on the Note or any of the other Loan Documents; or 
  
 6.2 Any default shall occur under the Note; or 
  
 6.3 Borrowers or Guarantor shall materially default
in the due performance or observance of any covenant or condition of the Loan Documents; or 
  
 6.4 Any guaranty or subordination agreement required hereunder is breached or becomes ineffective, or any Guarantor or
subordinating creditor dies, disavows or attempts to revoke or terminate such guaranty or subordination agreement; or 
  
 6.5 There is a change in ownership or control of twenty percent (20%) or more of the issued and outstanding stock of Borrowers
or Guarantor and the acquiring entity is not owned by or controlled by Guarantor or a subsidiary of Guarantor. 
  

 - 10 - 

 SECTION 7. MISCELLANEOUS PROVISIONS 
  
 7.1 Additional Remedies. The rights, powers and remedies given to Bank hereunder shall be cumulative
and not alternative and shall be in addition to all rights, powers and remedies given to Bank by law against Borrowers or any other person, including but not limited to Bank’s rights of setoff or banker’s lien. 
  
 7.2 Nonwaiver. Any forbearance or failure or delay by
Bank in exercising any right, power or remedy hereunder shall not be deemed a waiver thereof and any single or partial exercise of any right, power or remedy shall not preclude the further exercise thereof. No waiver shall be effective unless it is
in writing and signed by an officer of Bank. 
  
 7.3 Inurement. The benefits of this Agreement shall inure to the successors and assigns of Bank and the permitted successors and assignees of Borrowers, and any assignment by Borrowers without Bank’s consent shall be null and
void. 
  
 7.4 Applicable Law. This
Agreement and all other agreements and instruments required by Bank in connection therewith shall be governed by and construed according to the laws of the State of California. 
  
 7.5 Severability. Should any one or more provisions of this Agreement be determined to be illegal or
unenforceable, all other provisions nevertheless shall be effective. In the event of any conflict between the provisions of this Agreement and the provisions of any note or reimbursement agreement evidencing any indebtedness hereunder, the
provisions of such note or reimbursement agreement shall prevail. 
  
 7.6 Integration Clause. Except for documents and instruments specifically referenced herein, this Agreement constitutes the entire agreement between Bank and Borrowers regarding the Loan and all prior
communications verbal or written between Borrowers and Bank shall be of no further effect or evidentiary value. 
  
 7.7 Defined Terms. Unless otherwise specifically defined in this Agreement, all accounting terms used herein shall be interpreted
in accordance with generally accepted accounting principals. 
  
 7.8 Construction. The section and subsection headings herein are for convenience of reference only and shall not limit or otherwise affect the meaning hereof. 
  
 7.9 Amendments. This Agreement may be amended only in
writing signed by all parties hereto. 
  
 7.10
Counterparts. Borrowers and Bank may execute one or more counterparts to this Agreement, each of which shall be deemed an original, but when together shall be one and the same instrument. 
  
 7.11 Sale; Assignment; Participations. Bank may, in
the ordinary course of its business, sell to any bank, financial institution, or other lender, which additional bank, financial institution or other lender shall be subject to the consent of Borrowers, such consent not to be unreasonably withheld,
all or any part of its rights and obligations under this Agreement and the other Loan Documents, as documented on Bank’s standard form of assignment and acceptance agreement. 
  

 - 11 - 

 SECTION 8. SERVICE OF NOTICES 
  
 8.1 Any notices or other communications provided for or allowed hereunder shall be effective only
when given by one of the following methods and addressed to the respective party at its address given with the signatures at the end of this Agreement and shall be considered to have been validly given: (a) upon delivery, if delivered
personally; (b) upon receipt, if mailed, first class postage prepaid, with the United States Postal Service; (c) on the next business day, if sent by overnight courier service of recognized standing; and (d) upon telephoned
confirmation of receipt, if telecopied. 
  
 8.2 The addresses to which notices or demands are to be given may be changed from time to time by notice delivered as provided above. 
  

 - 12 - 

 THIS AGREEMENT is executed on behalf of the parties by duly authorized officers as of the date
first above written. 
  

											
	UNION BANK OF CALIFORNIA, N.A.	 	 	 	RESMED CORP.
					
	By:	 	/s/ Bruce A. Breslau	 	 	 	By:	 	/s/ Peter C. Farrell
	 Title:
	 	Senior Vice President	 	 	 	Title:	 	CEO
					
	By:	 	/s/ Douglas S. Lambell	 	 	 	 By:
	 	/s/ David Pendarvis
	 Title:
	 	Vice President	 	 	 	 Title:
	 	Secretary
					
	Address:	 	530 ‘B’ Street, 4th Floor	 	 	 	Address:	 	14040 Danielson Street
	 	 	San Diego, CA 92101	 	 	 	 	 	Poway, CA 92064
					
	Attention:	 	 Douglas S. Lambell, VP
	 	 	 	 Attention:
	 	 
	Telecopier:	 	 (619) 230-3766
	 	 	 	Telecopier:	 	(858) 746-2830
	Telephone:	 	 (619) 230-3029
	 	 	 	 Telephone:
	 	 
				
	 	 	 	 	 	 	RESMED EAP HOLDINGS INC.
					
	 	 	 	 	 	 	By:	 	/s/ Peter C. Farrell
	 	 	 	 	 	 	 Title:
	 	CEO
						
	 	 	 	 	 	 	 	 	 	 	 
					
	 	 	 	 	 	 	By:	 	/s/ David Pendarvis
	 	 	 	 	 	 	 Title:
	 	Secretary
					
	 	 	 	 	 	 	 Address:
	 	 14040 Danielson Street
 Poway, CA
92064

					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 Attention:
	 	 
	 	 	 	 	 	 	 Telecopier:
	 	 (858) 746-2830

	 	 	 	 	 	 	 Telephone:
	 	 	 	 

  

 - 13 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]