Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

JPMORGAN CHASE BANK, N.A. 

383 Madison Avenue 
 New York, New
York 10179 
 February 13, 2017 

Integrated Device Technology, Inc. 
 6024 Silver Creek Valley
Road 
 San Jose, California 95138 
 Attention: Brian
White, Chief Financial Officer 
 Project Glider 

Commitment Letter 
 Ladies and
Gentlemen: 
 Integrated Device Technology, Inc. (“you” or the “Borrower”) has advised
JPMorgan Chase Bank, N.A. (“JPMCB”, the “Commitment Party”, “we” or “us”) that you intend to acquire (the “Acquisition”) an
entity identified to us as “Glider” (“Glider” or the “Target”; the Target collectively with its subsidiaries, the “Acquired Business”). The Acquisition will be
effected through (i) the purchase of shares of common stock of the Target by a newly formed wholly-owned subsidiary of the Borrower (“Merger Sub”) in the Offer (as defined in the Acquisition Agreement (as defined below))
and (ii) promptly following the Acceptance Time (as defined in the Acquisition Agreement), the merger (the “Merger”) of Merger Sub with and into the Target pursuant to Section 251(h) of the General Corporation Law
of the State of Delaware, with the Target surviving the Merger as your direct or indirect wholly-owned subsidiary (the date of consummation of the Merger, the “Merger Closing Date”). In connection with the Acquisition, the
Company Debt (as defined in the Acquisition Agreement) of the Acquired Business will be repaid in full, all commitments related thereto will be terminated and the security interests with respect thereto will be released (the
“Refinancing”). The Borrower, the Acquired Business and their respective subsidiaries are sometimes collectively referred to herein as the “Companies”. 

You have also advised us that in connection with the Acquisition you intend to incur an aggregate principal amount of $200.0 million of senior
secured term B loans (the “Term B Loan Facility”). The Acquisition, the Refinancing, the entering into and funding of the Term B Loan Facility and all related transactions (including the payment of fees and expenses in
connection therewith) are hereinafter collectively referred to as the “Transactions”. The date of the consummation of the Merger and funding of the Term B Loan Facility is referred to herein as the “Closing
Date”. 
 1. Commitments. In connection with the foregoing, (a) JPMCB is pleased to advise you of its commitment to
provide 100% of the principal amount of the Term B Loan Facility (in such capacity, the “Initial Lender”), subject only to the conditions set forth in paragraph 5 hereto; and (b) JPMCB is pleased to advise you of its
willingness, and you hereby engage JPMCB to act as the sole lead arranger and sole bookrunning manager (in such capacities, the “Lead Arranger”) for the Term B Loan Facility, and in connection therewith to form a syndicate of
lenders for the Term B Loan Facility (collectively, the “Lenders”), in consultation with you and reasonably acceptable to you. It is understood and agreed that (x) JPMCB shall act as administrative agent for the Term B
Loan Facility (in such capacity, the “Administrative Agent”) and (y) JPMCB may perform its responsibilities hereunder as a Lead Arranger through its affiliate, J.P. Morgan Securities LLC. Notwithstanding anything to the
contrary contained herein, the commitment of the Initial Lender with respect to the initial fundings of the Term B Loan Facility will be subject only to the satisfaction (or waiver by the Initial Lender) of the conditions precedent set forth in
paragraph 5 hereof. All capitalized terms used and not otherwise defined herein shall have the same meanings as specified therefor in Annexes I and II hereto (the “Summary of Terms”). 

 You agree that no other agents, co-agents, arrangers or bookrunners will be appointed, no other
titles will be awarded and no compensation (other than compensation expressly contemplated by this Commitment Letter and the Fee Letter referred to below) will be paid to any Lender expressly in order to obtain its commitment to participate in the
Term B Loan Facility unless you and we shall so agree. 
 2. Syndication. The Lead Arranger intends to commence syndication of the
Term B Loan Facility promptly after your acceptance of the terms of this Commitment Letter and the Fee Letter (as hereinafter defined); provided that we agree not to syndicate our commitments to certain banks, financial institutions and other
institutional lenders and any competitors of the Companies, in each case, that have been specified to us by you in writing prior to the date hereof (collectively, “Primary Disqualified Lenders”) or Known Affiliates (as
defined below) of any Primary Disqualified Lenders (the Primary Disqualified Lenders, together with the Known Affiliates, are hereinafter referred to as “Disqualified Lenders”); provided, further, that you, upon
reasonable notice to us after the date hereof and prior to the launch of general syndication (or to the Administrative Agent after the Closing Date), shall be permitted to supplement in writing the list of persons that are Disqualified Lenders to
the extent such supplemented person is or becomes a competitor or a Known Affiliate of a competitor of the Companies, which supplement shall be in the form of a list provided to us (or the Administrative Agent) and become effective 3 business days
after delivery to us (or the Administrative Agent), but which supplement shall not apply retroactively to disqualify any parties that have previously acquired an assignment or participated or is party to a pending trade under the Term B Loan
Facility at the time such designation would otherwise become effective. As used herein, “Known Affiliates” of any person means, as to such person, known affiliates readily identifiable solely on the basis of the similarly of
its name, but excluding any affiliate that is a bona fide debt fund or investment vehicle that is primarily engaged in, or that advises funds or other investment vehicles that are engaged in, making, purchasing, holding or otherwise investing in
commercial loans, bonds or similar extensions of credit or securities in the ordinary course and with respect to which a Primary Disqualified Lender does not, directly or indirectly, possess the power to direct or cause the direction of the
investment policies of such person. Without limiting your obligations to assist with syndication efforts as set forth herein, it is understood that the Initial Lender’s commitment hereunder is not conditioned upon the syndication of, or receipt
of commitments or participations in respect of, the Term B Loan Facility and in no event shall the commencement or successful completion of syndication of the Term B Loan Facility constitute a condition to the availability of the Term B Loan
Facility on the Closing Date. You agree, until the Syndication Date (as hereinafter defined), to actively assist, and, to the extent provided for in the Acquisition Agreement, to use your commercially reasonable efforts to cause the Acquired
Business to actively assist, the Lead Arranger in achieving a syndication of the Term B Loan Facility that is reasonably satisfactory to the Lead Arranger and you; provided that, notwithstanding the Lead Arranger’s right to syndicate the
Term B Loan Facility and receive commitments with respect thereto, it is agreed that (i) syndication of, or receipt of commitments or participations in respect of, all or any portion of the Initial Lender’s commitment hereunder prior to
the date of the consummation of the Acquisition and the date of the initial funding under the Term B Loan Facility shall not be a condition to the Initial Lender’s commitment and (ii) (a) except as you in your sole discretion may
otherwise agree in writing, the Initial Lender shall not be relieved, released or novated from its obligations hereunder (including its obligation to fund the Term B Loan Facility on the Closing Date) in connection with any syndication, assignment
or participation of the Term B Loan Facility, 

  
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including its commitment in respect thereof, until after the initial funding of the Term B Loan Facility has occurred; (b) no assignment or novation shall become effective with respect to
all or any portion of the Initial Lender’s commitment in respect of the Term B Loan Facility until after the initial funding of all of the Term B Loan Facility; and (c) the Initial Lender shall retain exclusive control over all rights and
obligations with respect to its commitment in respect of the Term B Loan Facility, including all rights with respect to consents, modifications, supplements, waivers and amendments, until the Closing Date has occurred and the initial funding under
the Term B Loan Facility has been made. Such assistance shall include (a) your providing and (subject to customary non-reliance agreements) using commercially reasonable efforts to cause your advisors to provide, and, to the extent provided for
in the Acquisition Agreement, using your commercially reasonable efforts to cause the Acquired Business, its subsidiaries and its advisors to provide, the Lead Arranger upon request with all customary and reasonably available information reasonably
deemed necessary by the Lead Arranger to complete such syndication, including, but not limited to (x) customary and reasonably available information relating to the Transaction as may be reasonably requested by us (including the Projections (as
hereinafter defined) and (y) customary forecasts prepared by management of the Borrower of balance sheets, income statements and cash flow statements for each fiscal quarter for the first twelve months following the Closing Date and for each
year commencing with the first fiscal year following the Closing Date and for each of the succeeding fiscal years thereafter through the fiscal year ended March 31, 2022; (b) your assistance in the preparation of a customary information
memorandum with respect to the Term B Loan Facility (an “Information Memorandum”) and other customary materials to be used in connection with the syndication of the Term B Loan Facility (collectively with the Summary of Terms
and any additional summary of terms prepared for distribution to Lenders, the “Information Materials”); (c) your using commercially reasonable efforts to ensure that the syndication efforts of the Lead Arranger benefits
from your existing lending relationships, if any, and, to the extent provided for in the Acquisition Agreement, the existing banking relationships of the Acquired Business; (d) your using commercially reasonable efforts to obtain, prior to the
launch of syndication of the Term B Loan Facility, monitored public corporate credit or family ratings (but not any specific rating) for you after giving effect to the Transaction and ratings of the Term B Loan Facility from Moody’s Investors
Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group, a Standard & Poor’s Financial Services LLC business (“S&P”) (collectively, the
“Ratings”); (e) until the later of the Syndication Date and the Closing Date, your ensuring, and with respect to the Acquired Business, using your commercially reasonable efforts to ensure, to the extent not in
contravention of the Acquisition Agreement, that none of the Companies shall syndicate or issue, attempt to syndicate or issue, or announce or authorize the announcement of the syndication or issuance of, any debt of the Companies (other than the
Term B Loan Facility), in each case, that would materially and adversely affect the primary syndication of the Term B Loan Facility without the prior written consent (not to be unreasonably withheld) of the Lead Arranger (it being understood that
borrowings under ordinary course short term working capital facilities and ordinary course capital lease, purchase money and equipment financings of any of the Companies, other indebtedness of the Acquired Business permitted to be outstanding or
issued under the Acquisition Agreement and indebtedness incurred following the Closing Date to refinance indebtedness under the Term B Loan Facility shall be permitted; and (f) your making appropriate officers of you, and, to the extent
provided for in the Acquisition Agreement, using your commercially reasonable efforts to make the appropriate officers of the Acquired Business, available from time to time upon reasonable advance notice to attend and make presentations regarding
the business and prospects of the Companies and the Transaction at a reasonable number of meetings of prospective Lenders at mutually agreed upon times and locations. Notwithstanding anything to the contrary contained in this Commitment Letter or
the Fee Letter or any other letter agreement or undertaking concerning the financing of the Transaction to the contrary, neither the obtaining of the Ratings referenced above nor the compliance with any of the other provisions set forth in clauses
(a) through (f) above or any other provision of this paragraph shall constitute a condition to the commitments hereunder or the funding of the Term B Loan Facility on the Closing Date. Your obligations under the Commitment Letter and Fee
Letter to use commercially reasonable efforts to cause the Acquired Business or its management to take (or to refrain from taking) any action will not require you to take any action that is in contravention of, or terminate, the terms of the
Acquisition Agreement. 

  
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 It is understood and agreed that the Lead Arranger will manage and control all aspects of the
syndication of the Term B Loan Facility in consultation with you, including any titles offered to prospective Lenders (subject to your consent rights set forth herein and your rights of appointment set forth in paragraph 1 and excluding Disqualified
Lenders), when commitments will be accepted, the final allocations of the commitments among the Lenders and the amount and distribution of the fees among the Lenders. It is further understood that the Initial Lender’s commitment hereunder is
not conditioned upon the syndication of, or receipt of commitments in respect of, the Term B Loan Facility and in no event shall the commencement or successful completion of syndication of the Term B Loan Facility constitute a condition to the
availability of the Term B Loan Facility on the Closing Date. 
 3. Information Requirements. You hereby represent and warrant (prior
to the Closing Date, with respect to Information relating to the Acquired Business, to your knowledge) that (a) all written factual information, other than Projections (as defined below), budgets, estimates and other forward-looking information
or information of a general economic or industry nature, that has been or is hereafter made available to the Lead Arranger or any of the Lenders by or on behalf of you or any of your representatives in connection with any aspect of the Transaction
(including, prior to the Closing Date, such information, to your knowledge, relating to the Acquired Business) (the “Information”) is and will be correct when taken as a whole, in all material respects, and does not and will
not, taken as a whole, contain any untrue statement of a fact or omit to state a fact necessary to make the statements contained therein, in the light of the circumstances under which they were made, not materially misleading (in each case, after
giving effect to all supplements and updates with respect thereto) and (b) all financial projections concerning the Companies that have been or are hereafter made available to the Lead Arranger or any of the Lenders by or on behalf of you or
any of your representatives (the “Projections”) (prior to the Closing Date, to your knowledge, in the case of Projections provided by the Acquired Business) have been or will be prepared in good faith based upon assumptions
believed by you to be reasonable at the time provided (it being understood and agreed that the Projections are as to future events and are not to be viewed as facts or a guarantee of performance or achievement, that the Projections are subject to
significant uncertainties and contingencies, many of which are beyond your control, that no assurance can be given that any particular Projections will be realized and that actual results may differ from the Projections and such differences may be
material). You agree that if at any time prior to the later of (a) the earlier of (i) the date on which a Successful Syndication (as defined in the Fee Letter) is achieved and (ii) 45 days following the Closing Date (the earlier of
such dates, the “Syndication Date”) and (b) the Closing Date, you become aware that any of the representations in the preceding sentence would be incorrect in any material respect if the Information and Projections were
being furnished, and such representations were being made, at such time, then you will promptly supplement, or cause to be supplemented (or in the case of Information or Projections relating to the Acquired Business, you will promptly notify the
Lead Arranger upon becoming aware that any such Information or Projections are incorrect in any material respect and, to the extent provided for in the Acquisition Agreement, will use commercially reasonable efforts to supplement), the Information
and Projections so that such representations (prior to the Closing Date, to your knowledge, in the case of the Acquired Business) will be correct in all material respects at such time, it being understood in each case that such supplementation shall
cure any breach of such representation and warranty. In issuing this commitment and in arranging and syndicating the Term B Loan Facility, the Commitment Party is and will be using and relying on the Information and the Projections without
independent verification thereof. For the avoidance of doubt, nothing in this paragraph (including the making or supplementing of any representations or warranties, Information or Projections) will constitute a condition to the availability of the
Term B Loan Facility on the Closing Date. 

  
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 You acknowledge that (a) the Lead Arranger on your behalf will make available, on a
confidential basis, Information Materials to the proposed syndicate of Lenders by posting the Information Materials on IntraLinks or another similar electronic system (the “Platform”) and (b) certain prospective Lenders
(such Lenders, “Public Lenders”; all other Lenders, “Private Lenders”) may have personnel that do not wish to receive material non-public information (within the meaning of the United States federal
securities laws, “MNPI”) with respect to the Companies, their respective affiliates or any other entity, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related
activities with respect to such entities’ securities. If reasonably requested, you will assist the Lead Arranger in preparing an additional version of the Information Materials not containing MNPI (the “Public Information
Materials”) to be distributed to prospective Public Lenders. 
 Before distribution of any Information Materials (a) to
prospective Private Lenders, you shall provide the Lead Arranger with a customary letter authorizing the dissemination of the Information Materials; and (b) to prospective Public Lenders, you shall provide the Lead Arranger with a customary
letter authorizing the dissemination of the Public Information Materials and confirming the absence of MNPI therefrom and, in each case, which exculpate the Companies and us and our affiliates with respect to any liability related to the use of the
contents of the Information Materials or related marketing materials by the recipients thereof. In addition, you hereby agree that (x) you will use commercially reasonable efforts to identify (and, at the reasonable request of the Lead Arranger
or the Administrative Agent (or its affiliates), shall identify) that portion of the Information Materials that may be distributed to the Public Lenders by clearly and conspicuously marking the same as “PUBLIC”; (y) all Information
Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Investor”; and (z) the Lead Arranger and the Administrative Agent (and its affiliates) shall be entitled to
treat any Information Materials that are not marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated “Public Investor”. 

You agree that, subject to the confidentiality and other provisions of this Commitment Letter, the Lead Arranger and the Administrative Agent
(and its affiliates) on your behalf may distribute the following documents to all prospective Lenders, unless you advise the Lead Arranger and Administrative Agent in writing (including by email) within a reasonable time prior to their intended
distributions that such material should only be distributed to prospective Private Lenders (provided that such materials have been provided to you and your counsel for review a reasonable period of time prior thereto): (a) administrative
materials for prospective Lenders such as lender meeting invitations and funding and closing memoranda, (b) notifications of changes to the terms of the Term B Loan Facility and (c) drafts approved in writing by you and the Administrative
Agent (or its affiliates) and final versions of definitive documents with respect to the Term B Loan Facility. If you advise the Lead Arranger and the Administrative Agent that any of the foregoing items should be distributed only to Private
Lenders, then the Lead Arranger and the Administrative Agent will not distribute such materials to Public Lenders without your prior consent. You agree that Information Materials made available to prospective Public Lenders in accordance with this
Commitment Letter shall not contain MNPI. 
 4. Fees and Indemnities. 

(a) You agree to reimburse the Commitment Party from time to time upon receipt of a reasonably detailed invoice therefor for all reasonable and
documented out-of-pocket fees and expenses (in the case of fees and expenses of counsel, limited to the reasonable and documented out-of-pocket fees, disbursements and other out-of-pocket expenses of (x) one firm of lead counsel to the
Commitment Party (it being understood and agreed that Cahill Gordon & Reindel LLP shall act as counsel to the Commitment Party) and (y) one firm of local counsel in each relevant jurisdiction reasonably retained by the Administrative
Agent) incurred in connection with the Term B Loan Facility, the syndication thereof, the preparation of the Credit Documentation (as defined below) therefor and the other Transactions contemplated hereby, whether or not the Closing Date occurs or
any of the Credit Documentation is executed and delivered or any extensions of credit are made under the Term B Loan Facility; provided that if the Closing Date does not occur and no termination fee is paid to you pursuant to
Section 7.2(c) of the Acquisition Agreement or no expense reimbursement is paid to you pursuant to Section 7.2(b) of the Acquisition Agreement, the aggregate reimbursement by you of such fees and expenses shall not exceed $250,000. Such
amounts shall be paid on the earlier of (i) the Closing Date or (ii) three (3) business days following the termination of this Commitment Letter as provided below (the “Payment Date”), in each case to the
extent you have received a reasonably detailed invoice at least three (3) business days in advance of the Payment Date. You agree to pay (or cause to be paid) the fees set forth in the separate fee letter addressed to you dated the date hereof
from the Commitment Party (the “Fee Letter”), if and to the extent payable. The foregoing provisions in this paragraph shall be superseded in each case, to the extent covered thereby, by the applicable provisions contained in
the Credit Documentation upon execution thereof and thereafter shall have no further force and effect. 

  
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 (b) You also agree to indemnify and hold harmless the Commitment Party, each other Lender and
each of their affiliates, successors and assigns and their respective partners, officers, directors, employees, trustees, agents, advisors, controlling persons and other representatives involved in the Transaction (each, an “Indemnified
Party”) from and against (and will reimburse each Indemnified Party within 30 days following written demand (accompanied by reasonable back-up therefor)) any and all claims, damages, losses, liabilities and reasonable and documented
out-of-pocket expenses (including, without limitation, the reasonable and documented fees, disbursements and other charges of one firm of counsel for all such Indemnified Parties, taken as a whole and, if necessary, by a single firm of local counsel
in each appropriate jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions) for all such Indemnified Parties, taken as a whole (and, in the case of a conflict of interest where the Indemnified Party
affected by such conflict notifies you of the existence of such conflict and thereafter retains its own counsel, by another firm of counsel for all such affected Indemnified Parties)) of amounts payable by you pursuant to clause (a) above) that
may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation
of a defense in connection therewith) (a) any aspect of the Transactions or (b) the Term B Loan Facility, or any use made or proposed to be made with the proceeds thereof, in each case, except to the extent such claim, damage, loss,
liability or expense (A) is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s or any of its Related Parties’ gross negligence, bad faith or willful misconduct,
(B) is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from a breach of such Indemnified Party’s or any of its Related Parties’ obligations hereunder (C) arises from a proceeding by
an Indemnified Party against an Indemnified Party (or any of their respective affiliates or related parties) (other than an action involving (i) conduct by you or any of your affiliates or (ii) against an arranger or administrative agent
in its capacity as such) or (D) resulted from any agreement governing any settlement by such Indemnified Party that is effective without your prior written consent (which consent shall not be unreasonably withheld). In the case of any claim,
litigation, investigation or proceeding (any of the foregoing, a “Proceeding”) to which the indemnity in this paragraph applies, such indemnity shall be effective whether or not such Proceeding is brought by you, your equity
holders or creditors or an Indemnified Party, whether or not an Indemnified Party is otherwise a party thereto and whether or not any aspect of the Transaction is consummated. It is agreed that none of you (or any of your subsidiaries), the Target
(or any of its subsidiaries) or any Indemnified Party shall be liable for any indirect, special, punitive or consequential damages (including, without limitation, any loss of profits, business or anticipated savings) in connection with this
Commitment Letter, the Fee Letter or with respect to any activities related to the Term B Loan Facility, including the preparation of this Commitment Letter, the Fee Letter and the Credit Documentation; provided that nothing in this sentence
shall limit your indemnification obligations set forth above. It is further agreed that the Commitment Party shall only have liability to you (as opposed to any other person), and that the Commitment Party shall be liable solely in respect of its
own commitment to the Term B Loan Facility and agreements set forth herein, on a several, and not joint, basis with any other Lender. Notwithstanding any other provision of this Commitment Letter, no Indemnified Party shall be liable for any damages
arising from the use by others of information or other materials obtained through electronic telecommunications or other information transmission systems, other than for direct, actual damages resulting from the gross negligence or willful
misconduct of such Indemnified Party or any of its Related Parties as determined by a final non-appealable judgment of a court of competent jurisdiction. You shall not, without the prior written consent of an Indemnified Party, such consent not to
be unreasonably withheld or delayed, effect any settlement of any pending or threatened Proceeding against an Indemnified Party in respect of which indemnity could have been sought hereunder by such Indemnified Party unless (i) such settlement
includes an unconditional release of such Indemnified Party from all liability or claims that are the subject matter of such Proceeding and (ii) does not include any statement as to any admission of liability. In case any Proceeding is
instituted involving any Indemnified Party for which indemnification is to be sought hereunder by such Indemnified Party, then such Indemnified Party will promptly notify you of the commencement of any Proceedings. You shall not be liable for any
settlement of any Proceeding affected without your written consent (which consent shall not be unreasonably withheld). “Related Parties” means, with respect to the Commitment Party, the Commitment Party’s affiliates and
their respective officers, directors, employees, advisors, agents and representatives, in each case, providing services in connection with the subject matter of this Commitment Letter. The foregoing provisions in this paragraph shall be superseded
in each case, to the extent covered thereby, by the applicable provisions contained in the Credit Documentation upon execution thereof and thereafter shall have no further force and effect. 

  
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 5. Conditions to Financing. The commitment of the Initial Lender with respect to the
initial funding of the Term B Loan Facility is subject solely to (a) the satisfaction (or waiver by the Lead Arranger) of each of the conditions set forth in Annex II hereto and (b) the execution and delivery of customary definitive
credit documentation by the Borrower and the Guarantors with respect to the Term B Loan Facility consistent with this Commitment Letter and the Fee Letter and subject in all respects to the Funds Certain Provisions and giving effect to the
Documentation Standard (as defined in Annex I)) (the “Credit Documentation”) prior to such initial funding. There are no conditions (implied or otherwise) to the commitments hereunder, and there will be no conditions
(implied or otherwise) under the Credit Documentation to the funding of the Term B Loan Facility on the Closing Date, other than those that are expressly referred to in the immediately preceding sentence. 

Notwithstanding anything in this Commitment Letter, the Fee Letter, the Credit Documentation or any other letter agreement or other
undertaking concerning the financing of the Transaction to the contrary, (a) the Credit Documentation shall be in a form such that the terms thereof do not impair availability of the Term B Loan Facility on the Closing Date if the conditions in
this paragraph 5 shall have been satisfied or waived by the Lead Arranger (it being understood that to the extent any security interest in Collateral (including the creation or perfection of any security interest) (other than any Collateral the
security interest in which may be perfected by the filing of a UCC financing statement or the delivery of certificates, if any, evidencing equity interests of any material wholly-owned domestic subsidiary of the Borrower and the subsidiary
Guarantors (after giving effect to the Acquisition) that is part of the Collateral; provided that stock or membership interest certificates for certificated stock for the entities comprising subsidiaries of the Target (to the extent required
under the terms of Annex II hereto) will, to the extent you have used commercially reasonable efforts to obtain them, only be required to be delivered on the Closing Date to the extent received from the holders thereof prior to the Closing Date)) is
not perfected or provided on the Closing Date after your use of commercially reasonable efforts to do so without undue burden or expense, the provision and perfection of such Collateral and security interest shall not constitute a condition
precedent to the availability of the Term B Loan Facility on the Closing Date but shall be required to be perfected not later than 90 days (subject to extensions as may be agreed to by the Administrative Agent) after the Closing Date pursuant to
arrangements to be mutually agreed by the Borrower and Administrative Agent), and (b) the only representations and warranties the making and accuracy of which shall be a condition to the availability of the Term B Loan Facility on the Closing
Date shall be (x) such of the representations made by the Target in the Acquisition Agreement as are material to the interests of the Lenders, but only to the extent that you (or your affiliate) have the right (taking into account any
applicable notice and cure provisions) to terminate your (and/or its) obligations under the Acquisition Agreement or decline to consummate the Acquisition (in each case, in accordance with the terms thereof) as a result of a breach of such
representations in the Acquisition Agreement (to such extent, the “Acquisition Agreement Representations”) and (y) the Specified Representations (as defined below). “Specified Representations”
shall mean the representations and warranties of the Borrower and Guarantors (after giving effect to the Acquisition) in the Credit Documentation relating to: (i) (A) corporate status of the Borrower and the Guarantors and
(B) corporate power and authority to enter into the Credit Documentation by the Borrower and the Guarantors, (ii) due authorization, execution, delivery and enforceability of the Credit Documentation by the Borrower and the Guarantors,
(iii) no conflicts of the Credit Documentation with charter documents of the Borrower and the Guarantors, (iv) compliance with Federal Reserve margin regulations and use of proceeds not in violation of OFAC, AML, FCPA and the U.S.A.
Patriot Act, (v) the Investment Company Act, (vi) solvency of the Borrower and its subsidiaries on a consolidated basis and on a pro forma basis for the Transaction (such representations to be substantially identical to those set forth in
the Solvency Certificate attached as Annex III to the Commitment Letter (the “Solvency Certificate”)), and (vii) subject to the limitations set forth in this paragraph, the provision of guarantees and the
creation, validity and perfection of the security interests granted in the Collateral. The provisions of this paragraph are referred to herein as the “Funds Certain Provisions”. 

  
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 Each of the parties hereto agrees that each of this Commitment Letter and the Fee Letter is a
binding and enforceable agreement (subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors’ rights generally and general principles of equity (whether
considered in a proceeding in equity or law)) with respect to the subject matter contained herein, including an agreement to negotiate in good faith the Credit Documentation by the parties hereto in a manner consistent with this Commitment Letter
and, to the extent applicable, the Fee Letter, it being acknowledged and agreed that the funding of the Term B Loan Facility is subject only to the conditions precedent as set forth in this paragraph 5. For clarity, all terms referenced herein to
being defined in the Credit Documentation shall be defined in accordance with the Documentation Standard (unless otherwise provided for herein). 

6. Confidentiality and Other Obligations. This Commitment Letter and the Fee Letter and the contents hereof and thereof are
confidential and may not be disclosed in whole or in part to any person or entity without the prior written consent of the Commitment Party (not to be unreasonably withheld, conditioned or delayed) except (i) this Commitment Letter and the Fee
Letter and contents hereof and thereof may be disclosed (A) on a confidential basis to your subsidiaries, directors, officers, employees, accountants, attorneys and other representatives and professional advisors who need to know such
information in connection with the Transaction and are informed of the confidential nature of such information, (B) pursuant to the order of any court or administrative agency in any pending legal or administrative proceeding, or otherwise as
required by applicable law or stock exchange requirement or compulsory legal process (in which case you agree to use commercially reasonable efforts to inform the Commitment Party promptly thereof prior to such disclosure to the extent permitted by
applicable law), and (C) on a confidential basis to the affiliates, members, partners, stockholders, equity holders, controlling persons, directors, officers, employees, accountants, attorneys and other representatives and professional advisors
of the Acquired Business; provided that any such disclosure of the Fee Letter shall be subject to customary redaction of the fees and the economic “market flex” provisions contained therein, (ii) Annex I and the
existence of this Commitment Letter and the Fee Letter (but not the contents of this Commitment Letter and the Fee Letter) may be disclosed to Moody’s, S&P and any other rating agency on a confidential basis, (iii) the aggregate amount
of the fees (including upfront fees and original issue discount) payable under the Fee Letter may be disclosed as part of generic disclosure regarding sources and uses for closing of the Acquisition, projections, and pro forma information (but
without disclosing any specific fees, market flex or other economic terms set forth therein), (iv) this Commitment Letter and the Fee Letter may be disclosed on a confidential basis to your auditors or persons performing customary accounting
functions for customary accounting purposes, including accounting for deferred financing costs, (v) to the directors, officers, attorneys and other professional advisors of the Target on a confidential “need to know” basis in
connection with the Transaction; provided that any disclosure of the Fee Letter and the contents thereof shall be redacted in a manner satisfactory to the Commitment Party, (vi) you may disclose this Commitment Letter (but not the Fee
Letter) and its contents in any information memorandum or syndication distribution, as well as in any proxy statement or other public filing or other marketing materials relating to the Acquisition or the Term B Loan Facility and (vii) this
Commitment Letter and the Fee Letter may be disclosed to a court, tribunal or any other applicable administrative agency or judicial authority in connection with the enforcement of your rights hereunder (in which case you agree to inform the
Commitment Party promptly thereof prior to such disclosure to the extent permitted by applicable law). 

  
 -8- 

 The Commitment Party shall use all confidential information provided to it by or on behalf of you
hereunder solely for the purpose of providing the services which are the subject of this Commitment Letter and otherwise in connection with the Transaction and shall treat confidentially all such information; provided, however, that
nothing herein shall prevent the Commitment Party from disclosing any such information (i) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable
law or compulsory legal process (in which case the Commitment Party agrees to inform you promptly prior to disclosure to the extent not prohibited by law, rule or regulation), (ii) upon the request or demand of any regulatory authority having
jurisdiction over the Commitment Party or any of its affiliates, (iii) to the extent that such information becomes publicly available other than by reason of disclosure in violation of this Commitment Letter, the Fee Letter or other
confidential obligation owed by the Commitment Party, (iv) to the Commitment Party’s affiliates, employees, legal counsel, independent auditors and other experts, professionals or agents who need to know such information in connection with
the Transaction and are informed of the confidential nature of such information, (v) for purposes of establishing a “due diligence” defense available under securities laws, (vi) to the extent that such information is received by
the Commitment Party from a third party that is not to the Commitment Party’s knowledge subject to confidentiality obligations to you, (vii) to the extent that such information is independently developed by the Commitment Party,
(viii) to potential Lenders, participants, assignees or any direct or indirect contractual counterparties to any swap or derivative transaction relating to you or your obligations under the Term B Loan Facility (other than a Disqualified
Lender), in each case, who agree to be bound by the terms of this paragraph (or language not less restrictive than this paragraph or as otherwise reasonably acceptable to you and the Commitment Party, including as may be agreed in any confidential
information memorandum or other marketing material), (ix) to Moody’s and S&P and to Bloomberg, LSTA and similar market data collectors with respect to the syndicated lending industry; provided that such information is limited to
Annex I, or (x) with your prior written consent. This paragraph shall terminate on the earlier of (a) the initial funding under the Term B Loan Facility and (b) the second anniversary of the date of this Commitment Letter. 

You acknowledge that the Commitment Party or its affiliates may be providing financing or other services to parties whose interests may
conflict with yours. The Commitment Party agree that they will not furnish confidential information obtained from you to any of their other customers and will treat confidential information relating to the Companies and their respective affiliates
with the same degree of care as they treat their own confidential information. The Commitment Party further advises you that it will not make available to you confidential information that it has obtained or may obtain from any other customer. 

  
 -9- 

 In connection with all aspects of each transaction contemplated by this Commitment Letter, you
acknowledge and agree, and acknowledge your affiliates’ understanding, that: (i) the Term B Loan Facility and any related arranging or other services described in this Commitment Letter is an arm’s-length commercial transaction
between you and your affiliates, on the one hand, and the Commitment Party, on the other hand, (ii) the Commitment Party has not provided any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated
hereby and you have consulted your own legal, accounting, regulatory and tax advisors to the extent you have deemed appropriate, (iii) you are capable of evaluating, and understand and accept, the terms, risks and conditions of the transactions
contemplated hereby, (iv) in connection with the financing transactions contemplated hereby and the process leading to such transactions, the Commitment Party has been, is, and will be acting solely as a principal and has not been, is not, and
will not be acting as an advisor, agent or fiduciary for you or any of your affiliates, stockholders, creditors or employees or any other party, (v) the Commitment Party has not assumed and will not assume an advisory, agency or fiduciary
responsibility in your or your affiliates’ favor with respect to any of the financing transactions contemplated hereby or the process leading thereto, and the Commitment Party has no obligation to you or your affiliates with respect to the
financing transactions contemplated hereby except those obligations expressly set forth in this Commitment Letter, and (vi) the Commitment Party and its respective affiliates may be engaged in a broad range of transactions that involve
interests that differ from yours and those of your affiliates, and the Commitment Party has no obligation to disclose any of such interests to you or your affiliates. Without limiting the provisions of paragraph 4(b), you hereby agree not to assert
any claims against the Commitment Party with respect to any alleged breach of agency or fiduciary duty in connection with any aspect of any financing transaction contemplated by this Commitment Letter. 

The Commitment Party hereby notifies you that pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L. 107-56 (signed into
law October 26, 2001) (the “U.S.A. Patriot Act”), each of them is required to obtain, verify and record information that identifies the Borrower and the Guarantors, which information includes the name and address of such
person and other information that will allow the Commitment Party to identify each such person in accordance with the U.S.A. Patriot Act. 

7. Survival of Obligations. The provisions of sections 2, 3, 4, 6 and 8 of this Commitment Letter shall remain in full force and effect
regardless of whether any Credit Documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or any commitment or undertaking of the Commitment Party hereunder, provided that (i) the
provisions of sections 2 and 3 shall not survive if all of the commitments and undertakings of the Commitment Party are terminated by any party hereto prior to the effectiveness of the Term B Loan Facility and (ii) if the Term B Loan Facility
closes and the Credit Documentation is executed and delivered, the provisions of sections 2 and 3 shall survive only until the Syndication Date and your obligations under this Commitment Letter, other than your obligations in sections 2 and 3,
confidentiality of the Fee Letter and section 4 to the extent not addressed in the Credit Documentation, shall automatically terminate and be superseded by the provisions of the Credit Documentation upon the execution and delivery thereof, and you
shall automatically be released from all liability in connection therewith at such time. You may terminate this Commitment Letter and/or the Initial Lender’s commitment with respect to the Term B Loan Facility (or any portion thereof) hereunder
at any time subject to the provisions of the preceding sentence. 
 8. Miscellaneous. This Commitment Letter and the Fee Letter may
be executed in multiple counterparts and by different parties hereto in separate counterparts, all of which, taken together, shall be deemed an original. Delivery of an executed counterpart of a signature page to this Commitment Letter or the Fee
Letter by telecopier, facsimile or other electronic transmission (e.g., a “pdf” or “tiff”) shall be effective as delivery of a manually executed counterpart thereof. Headings are for convenience of reference only and shall not
affect the construction of, or be taken into consideration when interpreting, this Commitment Letter or the Fee Letter. 

  
 -10- 

 This Commitment Letter and the Fee Letter shall be governed by, and construed in accordance with,
the laws of the State of New York without regard to conflict of law principles that would result in the application of any other laws other than the state of New York; provided that, notwithstanding the foregoing, it is understood and agreed
that (a) interpretation the definition of “Company Material Adverse Effect” (as defined in Annex II) or the equivalent term under the Acquisition Agreement and whether a Company Material Adverse Effect (or the equivalent term)
has occurred, (b) the determination of the accuracy of any Acquisition Agreement Representation and whether as a result of any inaccuracy thereof you have the right (taking into account any applicable cure provisions) to terminate your
obligations under the Acquisition Agreement or decline to consummate the Acquisition and (c) the determination of whether the Acquisition has been consummated in accordance with the terms of the Acquisition Agreement, in each case shall be
governed by, and construed in accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise govern under applicable principles of conflicts of law thereof. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS COMMITMENT LETTER, THE FEE LETTER, THE TRANSACTION AND THE OTHER TRANSACTIONS CONTEMPLATED HEREBY AND
THEREBY OR THE ACTIONS OF THE COMMITMENT PARTY IN THE NEGOTIATION, PERFORMANCE OR ENFORCEMENT HEREOF. Each party hereto hereby irrevocably and unconditionally submits to the exclusive jurisdiction of any New York State court or Federal court of
the United States of America sitting in the Borough of Manhattan in New York City in respect of any suit, action or proceeding arising out of or relating to the provisions of this Commitment Letter, the Fee Letter, the Transaction and the other
transactions contemplated hereby and thereby and irrevocably agrees that all claims in respect of any such suit, action or proceeding may be heard and determined in any such court. The parties hereto agree that service of any process, summons,
notice or document by registered mail addressed to you shall be effective service of process against you for any suit, action or proceeding relating to any such dispute. Each party hereto waives, to the fullest extent permitted by applicable law,
any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceedings brought in any such court, and any claim that any such suit, action or proceeding brought in any such court has been brought in an
inconvenient forum. A final judgment in any such suit, action or proceeding brought in any such court may be enforced in any other courts to whose jurisdiction the applicable party is or may be subject by suit upon judgment. 

This Commitment Letter, together with the Fee Letter and the administrative fee letter between you and JPMCB dated the date hereof, embodies
the entire agreement and understanding among the parties hereto and your affiliates with respect to the Term B Loan Facility and supersedes all prior agreements and understandings relating to the subject matter hereof. No party has been authorized
by the Commitment Party to make any oral or written statements that are inconsistent with this Commitment Letter. Neither this Commitment Letter (including the attachments hereto) nor the Fee Letter may be amended or any term or provision hereof or
thereof waived or modified except by an instrument in writing signed by each of the parties hereto. 
 This Commitment Letter may not be
assigned by you without our prior written consent (and any purported assignment without such consent will be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create
any rights in favor of, any person other than the parties hereto (and the Indemnified Parties). The Commitment Party may assign its commitment hereunder, in whole or in part, to any of its affiliates or, subject to the provisions of this Commitment
Letter, to any Lender; provided that, other than with respect to an assignment to which you otherwise consent in writing (which consent, in the case of an assignment by the Commitment Party to its affiliates, shall not be unreasonably
withheld by you), the Commitment Party shall not be released from the portion of its commitment hereunder so assigned to the extent such assignee fails to fund the portion of the commitment assigned to it on the Closing Date notwithstanding the
satisfaction of the conditions to funding set forth herein. 

  
 -11- 

 Please indicate your acceptance of the terms of this Commitment Letter and the Fee Letter by re-
turning to the Lead Arranger executed counterparts of this Commitment Letter and the Fee Letter not later than 11:59 p.m. (New York City time) on February 15, 2017, whereupon the undertakings of the parties with respect to the Term B Loan
Facility shall become effective to the extent and in the manner provided hereby. This offer shall terminate with respect to the Term B Loan Facility if not so accepted by you at or prior to that time. Thereafter, all commitments and undertakings of
the Commitment Party hereunder will expire, unless extended by us in our sole discretion, on the earliest of (a) 11:59 p.m., New York City time, on June 30, 2017, unless the Closing Date occurs on or prior thereto, (b) the
consummation of the Merger without the use of the Term B Loan Facility and (c) the termination of the Acquisition Agreement by you in accordance with its terms. 

[The remainder of this page intentionally left blank.] 

  
 -12- 

 We are pleased to have the opportunity to work with you in connection with this important
financing. 
  

					
	Very truly yours,
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Caitlin Stewart

		 	Name:	 	Caitlin Stewart
		 	Title:	 	Vice President

 Signature Page to Project Glider Commitment Letter 

  

			
	The provisions of this Commitment Letter are accepted and agreed to as of the date first written above:
	
	INTEGRATED DEVICE TECHNOLOGY, INC.
		
	By:	 	 /s/ Gregory L. Waters

		 	Name: Gregory L. Waters
		 	Title: President and Chief Executive Officer

 Signature Page to Project Glider Commitment Letter 

 ANNEX I 

SUMMARY OF TERMS AND CONDITIONS 

$200,000,000 TERM B LOAN FACILITY 

Capitalized terms not otherwise defined herein have the same meanings as specified therefor in the Commitment Letter to which this Annex
I is attached. 
  

			
	Borrower:	  	Integrated Device Technology, Inc., a Delaware corporation (the “Borrower”).
		
	Guarantors:	  	The obligations of the Borrower (the “Borrower Obligations”) under the Term B Loan Facility (as hereinafter defined) will be unconditionally guaranteed jointly and severally on a senior basis (the
“Guarantees”) by each of the Borrower’s wholly-owned material restricted U.S. subsidiaries (and consistent with the principles set forth herein) (collectively, the “Guarantors”); provided
that Guarantors shall not include (i) unrestricted subsidiaries, (ii) immaterial subsidiaries (to be defined in a mutually acceptable manner as to individual and aggregate revenues or assets excluded), (iii) any subsidiary that is prohibited,
but only so long as such subsidiary is prohibited, by applicable law, rule or regulation or by any contractual obligation existing on the Closing Date or existing at the time of acquisition thereof after the Closing Date (so long as such prohibition
did not arise as part of such acquisition), in each case, from guaranteeing the Term B Loan Facility or which would require governmental (including regulatory) consent, approval, license or authorization to provide a Guarantee unless such consent,
approval, license or authorization has been received (but without obligation to seek the same), (iv) any direct or indirect subsidiary of a “controlled foreign corporation” within the meaning of Section 957 of the Internal Revenue Code of
1986, as amended (a “CFC”), (v) any CFC, (vi) any domestic subsidiary with no material assets other than equity interests (including, for this purpose, any debt or other instrument treated as equity for U.S. federal income
tax purposes) of one or more foreign subsidiaries that are CFCs (a “Disregarded Domestic Person”), (vii) not-for-profit subsidiaries, (viii) any other subsidiary with respect to which the Borrower and the Administrative Agent
determine that the adverse consequences of providing a guarantee shall be excessive in relation to the benefits to be obtained by the Lenders therefrom, and (ix) certain special purpose entities. In addition, the Credit Documentation will contain
carve outs for “non-ECP Guarantors”, consistent with the LSTA provisions. All guarantees will be guarantees of payment and not of collection. The Target and its subsidiaries included in the Acquired Business that are not excluded from the
foregoing requirements pursuant to the terms described above shall be required to become Guarantors (and grant liens in their assets constituting Collateral that can be perfected by filing UCC financing statements) on the Closing Date.
		
		  	Notwithstanding the foregoing, additional subsidiaries may be excluded from the guarantee requirements in circumstances where the Borrower and the Administrative Agent reasonably agree that the cost of providing such a guarantee is
excessive in relation to the value afforded thereby.

  
 Annex I-1 

			
	Administrative Agent and Collateral Agent:	  	JPMCB will act as sole and exclusive administrative and collateral agent for the Lenders (the “Administrative Agent”).
		
	Lead Arranger and Bookrunner:	  	JPMCB will act as the sole lead arranger and bookrunner for the Term B Loan Facility (in such capacities, the “Lead Arranger”); provided that JPMCB may perform its responsibilities hereunder as a Lead
Arranger through its affiliate, J.P. Morgan Securities LLC.
		
	Lenders:	  	Banks, financial institutions and institutional lenders selected by the Lead Arranger in consultation with and reasonably acceptable to the Borrower and excluding any Disqualified Lenders and, after the initial funding of the Term B
Loan Facility, subject to the restrictions set forth in the Assignments and Participations section below (the “Lenders”).
		
	Term B Loan Facility:	  	A senior secured first lien term loan B facility (the “Term B Loan Facility”) in an aggregate principal amount of $200.0 million.
		
	Purpose:	  	The proceeds of borrowings under the Term B Loan Facility, together with cash on the balance sheet of the Companies, shall be used (i) to finance the Acquisition and the Refinancing and the other Transactions, (ii) to pay fees and
expenses incurred in connection therewith and (iii) for working capital and general corporate purposes.
		
	Availability:	  	The Term B Loan Facility will be available in a single drawing on the Closing Date. Amounts borrowed under the Term B Loan Facility that are repaid or prepaid may not be reborrowed.
		
	Interest Rates:	  	The interest rate per annum under the Term B Loan Facility will be, at the option of the Borrower, (i) LIBOR plus the Applicable Margin (as hereinafter defined) or (ii) the Base Rate plus the Applicable Margin. The Applicable Margin
means 3.50% per annum, in the case of LIBOR advances, and 2.50% per annum, in the case of Base Rate advances.
		
		  	The Borrower may select interest periods of one, two, three or six months (and, if agreed to by all applicable Lenders, a period shorter than one month or a period of twelve months) for LIBOR advances. Interest shall be payable at
the end of the selected interest period, but no less frequently than quarterly.
		
		  	“LIBOR” and “Base Rate” will have meanings customary and appropriate for financings of this type; provided that (x) LIBOR will be deemed to be not less than 0% per annum
(the “LIBOR Floor”) and (y) the Base Rate will be deemed to be not less than 100 basis points higher than one-month LIBOR (after giving effect to the LIBOR
Floor).

  
 Annex I-2 

			
		  	During the continuance of an event of default for non-payment of principal, interest or fees, interest will accrue on such overdue principal, interest or fees at the Default Rate (as defined below). During the continuance of a
bankruptcy event of default, the principal amount of all outstanding obligations will bear interest at the Default Rate. As used herein, “Default Rate” means (i) on the principal of any loan at a rate of 200 basis points in
excess of the rate otherwise applicable to such loan and (ii) on any other overdue amount at a rate of 200 basis points in excess of the non-default rate of interest then applicable to Base Rate loans.
		
	Calculation of Interest:	  	Other than calculations in respect of interest at the Base Rate (which shall be made on the basis of actual number of days elapsed in a 365/366 day year), all calculations of interest shall be made on the basis of actual number of
days elapsed in a 360-day year.
		
	Cost and Yield Protection:	  	Subject to the Documentation Standard (as defined below) and customary for transactions and facilities of this type, including, without limitation, in respect of breakage or redeployment costs incurred in connection with prepayments
(other than loss of margin), changes in capital adequacy and capital requirements or their interpretation, illegality, unavailability, reserves without proration or offset and payments free and clear of withholding or other taxes; provided
that for all purposes of the Credit Documentation, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines and directives promulgated thereunder and (ii) all requests, rules, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case, pursuant to Basel III, shall be deemed introduced or
adopted after the Closing Date, so long as, in each case, any amounts with respect thereto assessed by any Lender shall also be so assessed by such Lender against its similarly situated customers generally under agreements containing comparable
yield protection provisions.
		
	Maturity:	  	The Term B Loan Facility will mature on the date that is 7 years after the Closing Date (the “Term B Loan Facility Maturity Date”); provided that if the Borrower’s 0.875% Convertible Senior Notes
due 2022 (the “2022 Convertible Notes”) are outstanding on the date that is 91 days prior to November 15, 2022 (the “Springing Maturity Date”) and have not otherwise been extended or
refinanced such that their maturity date is no earlier than 91 days after the Term B Loan Facility Maturity Date, the Term B Loan Facility Maturity Date shall be the Springing Maturity Date unless the Borrower and the Guarantors shall have cash and
cash equivalents and/or undrawn lending commitments from financial institutions reasonably satisfactory to the Administrative Agent in an amount not less than the aggregate principal amount of then outstanding 2022 Convertible Notes.
		
		  	The Credit Documentation shall contain customary “amend and extend” provisions pursuant to which individual Lenders may agree to extend the maturity date of their outstanding loans or loans under the Term B Loan Facility
or any Incremental Facility (which may include, among other things, an increase in the interest rate payable in respect of such extended loans, with such extensions not subject to any “default stoppers”, financial tests or “most
favored nation” pricing provisions) upon the request of the Borrower and without the consent of any other Lender (it is understood that (i) no existing Lender will have any obligation to commit to any such extension and (ii) each
Lender under the class being extended shall have the opportunity to participate in such extension on the same terms and conditions as each other Lender under such class).

  
 Annex I-3 

			
		
	Incremental Facilities:	  	The Credit Documentation will permit the Borrower to (a) add one or more incremental term loan facilities to the Term B Loan Facility or to increase the existing Term B Loan Facility (each, an “Incremental Term
Facility”) and/or (b) add one or more incremental revolving credit facilities (each, an “Incremental Revolving Facility” and, together with the Incremental Term Facility, the “Incremental
Facilities” and each, an “Incremental Facility”) in an aggregate principal amount of up to (x) $200.0 million plus (y) only in the case of an Incremental Revolving Facility, $50.0 million plus (z) an unlimited
amount so long as, in the case of clause (z) only, on a pro forma basis the Secured Leverage Ratio (as defined below) would not exceed 2.50:1.00, after giving effect to any acquisition consummated in connection therewith and all other appropriate
pro forma adjustments (in the case of any Incremental Revolving Facility, calculated assuming the entire amount of such Incremental Revolving Facility, was drawn on such date) (it being
understood that the Borrower shall be deemed to have used amounts under clause (z) (to the extent compliant therewith) prior to utilization of amounts under clause (x) or (y)); provided that (i) no Lender will be required to
participate in any such Incremental Facility, (ii) subject to customary limited conditionality provisions in connection with any Incremental Facility incurred to finance a permitted acquisition or similar investment, no event of default or
default exists or would exist after giving effect thereto, (iii) subject to customary limited conditionality provisions in connection with any Incremental Facility incurred to finance a permitted acquisition or similar investment, the
representations and warranties in the Credit Documentation shall be true and correct in all material respects, (iv) the maturity date of any such Incremental Term Facility shall be no earlier than the maturity date for the Term B Loan Facility,
(v) the weighted average life to maturity of any Incremental Term Facility shall be no shorter than the weighted average life to maturity of the Term B Loan Facility, (vi) the interest margins for the Incremental Facility shall be
determined by the Borrower and the lenders of the Incremental Facility; provided that in the event that the interest margins for any Incremental Term Facility incurred within twelve months after the Closing Date are greater than the
Applicable Margin for the Term B Loan Facility by more than 50 basis points, then the Applicable Margin for the Term B Loan Facility shall be increased to the extent necessary so that the interest margins for the Incremental Term Facility are not
more than 50 basis points higher than the Applicable Margin for the Term B Loan Facility; provided, further, that in determining the interest margins applicable to the Term B Loan Facility and the Applicable Margins for any Incremental
Term Facility, (x) original issue discount (“OID”) or upfront fees (which shall be deemed to constitute like amounts of OID) payable by the Borrower for the account of the Lenders of the Term B Loan Facility in the primary
syndication thereof shall be included (with OID being equated to interest based on an assumed four-year life to maturity), (y) customary arrangement, structuring, underwriting, amendment or commitment fees payable to one or more arrangers shall
be excluded, and (z) if the LIBOR or Base Rate floor for any Incremental Term Facility is greater than the LIBOR or Base Rate floor, respectively, for the existing Term B Loan Facility, the difference between such floor for the Incremental Term
Facility and the Term B Loan Facility shall be equated to an increase in the Applicable Margin for purposes of this clause (vi) (all adjustments made pursuant to this clause (vi), the “MFN Adjustment”), (vii) each
Incremental Facility shall be secured by pari passu liens on the Collateral (as herein after defined) securing the Term B Loan Facility and no other assets and shall be guaranteed by the Guarantors and no other persons, (viii) any Incremental
Term Facility shall be on terms and pursuant to documentation to be determined, provided that, to the extent such terms and documentation are not consistent with the Term B Loan Facility (except to the extent permitted by clause (i), (ii),
(iii), (iv), (v) or (vi) above, as applicable), they shall be reasonably satisfactory to the Administrative Agent and (ix) any Incremental Revolving Facility shall be on terms and pursuant to documentation to be determined,
provided that, (x) such Incremental Revolving Facility may have a maturity date that is earlier than the maturity date for the Term B Loan Facility and (y) such Incremental Revolving Facility may include financial maintenance
covenants and other terms and conditions that are more restrictive to the Borrower and its restricted subsidiaries than the terms applicable to the Term B Loan Facility, solely for the benefit of the Lenders under such Incremental Revolving
Facility. The Borrower may seek commitments in respect of any Incremental Facility from existing Lenders or from additional banks, financial institutions and other institutional lenders and to the extent the Administrative Agent would have a consent
right on an assignment to such new lender, such new lender shall be reasonably acceptable to the Administrative Agent.

  
 Annex I-4 

			
		
	Refinancing Facilities:	  	The Credit Documentation will permit the Borrower to refinance loans under the Term B Loan Facility or loans under any Incremental Facility (each, “Refinanced Debt”) from time to time, in whole or part, with
(x) one or more new term facilities (each, a “Refinancing Term Facility”) under the Credit Documentation with the consent of the Borrower, the Administrative Agent (not to be unreasonably withheld, delayed or conditioned) and
the institutions providing such Refinancing Term Facility or (y) one or more series of unsecured notes or loans, notes secured by the Collateral on a pari passu basis with the Term B Loan Facility or notes or loans secured by the Collateral
on a junior lien basis to the Term B Loan Facility, which will be subject to customary intercreditor terms reasonably acceptable to the Administrative Agent and the Borrower (any such notes or loans,
“Refinancing Notes” and together with the Refinancing Term Facilities, the “Refinancing Indebtedness”);
provided that (i) any Refinancing Term Facility or Refinancing Notes do not mature prior to the maturity date of, or have a shorter weighted average life than, the applicable Refinanced Debt (without giving effect to any amortization or
prepayments on the outstanding loans under the Term B Loan Facility or loans made under any Incremental Facility, as applicable), (ii) any Refinancing Notes consisting of notes do not mature prior to the maturity date of the applicable Refinanced
Debt or have any scheduled amortization, (iii) there shall be no issuers, borrowers or guarantors in respect of any Refinancing Indebtedness that are not the Borrower or a Guarantor and no Refinancing Indebtedness shall be secured by assets
other than the Collateral, (iv) any Refinancing Notes shall not contain any mandatory prepayment provisions (other than related to customary asset sale and change of control offers or events of default) that could result in prepayments of such
Refinancing Notes prior to the maturity date of the applicable Refinanced Debt, (v) the other terms and conditions of such Refinancing Indebtedness (excluding pricing, interest rate margins, rate floors, discounts, fees and optional prepayment
or optional redemption provisions) are not materially more favorable (when taken as a whole) to the lenders or investors providing such Refinancing Indebtedness than the terms of the applicable Refinanced Debt unless (1) Lenders under the
corresponding Refinanced Debt also receive the benefit of such more restrictive terms or (2) any such provisions apply after the maturity date of the applicable Refinanced Debt and (vi) the proceeds of such Refinancing Indebtedness
(a) shall not be in an aggregate principal amount greater than the aggregate principal amount of the applicable Refinanced Debt plus any fees and premiums associated therewith, and costs and expenses related thereto and (b) shall be
immediately applied to permanently prepay in whole or in part the applicable Refinanced Debt.

  
 Annex I-5 

			
		
	Documentation Standard:	  	The Credit Documentation for the Term B Loan Facility (i) shall be based upon the Credit Agreement, dated August 16, 2016, of Cavium, Inc. with appropriate modifications to baskets and materiality thresholds to reflect the size,
industry, leverage and ratings of the Borrower after giving effect to the Acquisition and with appropriate modifications to reflect the structure of the Term B Loan Facility as a “term B loan facility”, to reflect changes in law or
accounting standards since the date of such precedent and to give due effect to the Model (as defined below), (ii) shall contain the terms and conditions set forth in this Summary of Terms, (iii) shall reflect the operational and strategic
requirements of the Borrower and its subsidiaries (after giving effect to the Acquisition) in light of their size, industries and practices and (iv) shall reflect the customary agency and operational requirements of the Administrative Agent
(collectively, the “Documentation Standard”), in each case, subject to the Funds Certain Provisions. The Credit Documentation shall, subject to the “market flex” provisions contained in the Fee Letter, contain only
those conditions to borrowing, mandatory prepayments, representations and warranties, covenants (affirmative, negative and financial) and events of default expressly set forth in this Summary of Terms, in each case, applicable to the Borrower and
its restricted subsidiaries and, subject to the Documentation Standard and limitations as set forth herein, with materiality thresholds, standards, qualifications, exceptions, “baskets”, and grace and cure periods to be mutually agreed and
consistent with the Documentation Standard.

  
 Annex I-6 

			
		
	Limited Condition	  	
	Acquisitions:	  	For purposes of (i) determining compliance with any provision of the Credit Documentation which requires the calculation of the Secured Leverage Ratio or the Total Leverage Ratio, (ii) determining compliance with
representations, warranties, defaults or events of default or (iii) testing availability under baskets set forth in the Credit Documentation (including baskets measured as a percentage of Consolidated EBITDA), in each case, in connection with
an acquisition (or similar investment) by one or more of the Borrower and its restricted subsidiaries of any assets, business or person permitted to be acquired by the Credit Documentation, in each case whose consummation is not conditioned on the
availability of, or on obtaining, third party financing (any such acquisition, a “Limited Condition Acquisition”), at the option of the Borrower (the Borrower’s election to exercise such option in connection with any
Limited Condition Acquisition, an “LCA Election”), the date of determination of whether any such action is permitted hereunder, shall be deemed to be the date the definitive agreements for such Limited Condition Acquisition
are entered into (the “LCA Test Date”), and if, after giving pro forma effect to the Limited Condition Acquisition and the other transactions to be entered into in connection therewith as if they had occurred at the beginning
of the most recent test period ending prior to the LCA Test Date, the Borrower could have taken such action on the relevant LCA Test Date in compliance with such ratio or basket, such ratio or basket shall be deemed to have been complied
with.
		
		  	For the avoidance of doubt, if the Borrower has made an LCA Election and any of the ratios or baskets for which compliance was determined or tested as of the LCA Test Date are exceeded as a result of fluctuations in any such ratio
or basket (including due to fluctuations in pro forma Consolidated EBITDA, including of the target of any Limited Condition Acquisition) at or prior to the consummation of the relevant transaction or action, such baskets or ratios will not be deemed
to have been exceeded as a result of such fluctuations. If the Borrower has made an LCA Election for any Limited Condition Acquisition, then in connection with any subsequent calculation of any ratio or basket on or following the relevant LCA Test
Date and prior to the earlier of (i) the date on which such Limited Condition Acquisition is consummated or (ii) the date that the definitive agreement for such Limited Condition Acquisition is terminated or expires without consummation of
such Limited Condition Acquisition, any such ratio or basket shall be calculated on a pro forma basis assuming (i) such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of debt and the use
of proceeds thereof) have been consummated and (ii) such Limited Condition Acquisition and other transactions in connection therewith (including any incurrence of debt and the use of proceeds thereof) had not been
consummated.

  
 Annex I-7 

			
		
	Financial Definitions:	  	The “Secured Leverage Ratio” means the ratio of (i) Consolidated Funded Indebtedness of the Borrower and its restricted subsidiaries that is secured by a lien on any assets or property of the Borrower or any
restricted subsidiary (“Secured Debt”) to (ii) trailing four-quarter Consolidated EBITDA (as defined below) of the Borrower and its restricted subsidiaries.
		
		  	“Total Leverage Ratio” means the ratio of (i) Consolidated Funded Indebtedness of the Borrower and its restricted subsidiaries to (ii) trailing four-quarter Consolidated EBITDA of the Borrower and
its restricted subsidiaries.
		
		  	“Consolidated Funded Indebtedness” means the outstanding principal amount of all third party debt for borrowed money, un reimbursed drawings under letters of credit, capital lease obligations, purchase money
indebtedness and third party debt obligations evidenced by notes or similar instruments, determined in accordance with GAAP.
		
		  	“Consolidated EBITDA” is to be defined in a manner consistent with the Documentation Standard beginning with consolidated net income, with add-backs (and corresponding deductions, to the extent applicable) to
include, without limitation and without duplication, the following:
		
		  	 i.       expected cost savings, operating expense reductions,
restructuring charges and expenses and synergies related to the Transaction as set forth in the Borrower’s model received by JPMCB on February 9, 2017 (the “Model”);

		
		  	 ii.      expected cost savings, operating expense reductions,
restructuring charges and expenses and synergies related to mergers and other business combinations, acquisitions, divestitures, restructuring, cost savings initiatives which are reasonably identifiable and factually supportable and other similar
initiatives and projected by the Borrower in good faith to result from actions with respect to which substantial steps have been, will be, or are expected to be, taken and which are expected to be realized (in the good faith determination of the
Borrower) within 18 months after such transaction or initiative is consummated; provided that the aggregate amount added back to Consolidated EBITDA pursuant to this clause (ii) in any test period shall not exceed 20% of Consolidated EBITDA
for such test period (calculated prior to giving effect to such add-backs);

		
		  	 iii.    non-cash losses, charges and expenses (including non-cash compensation
charges);

		
		  	 iv.     extraordinary, unusual or non-recurring losses, charges and
expenses;

  
 Annex I-8 

			
		  	 v.      cash restructuring and related charges and business
optimization expenses;

		
		  	 vi.     unrealized gains and losses due to foreign exchange adjustments
(including, without limitation, losses and expenses in connection with currency and exchange rate fluctuations);

		
		  	 vii.   costs and expenses in connection with the Transaction;

		
		  	 viii.  expenses or charges related to any equity offering, permitted investment,
acquisition, disposition, recapitalization or incurrence of permitted indebtedness (whether or not consummated), including non-operating or non-recurring professional fees, costs and expenses related thereto;

		
		  	 ix.     interest, taxes, amortization and depreciation; and

		
		  	 x.      losses from discontinued operations.

		
	Scheduled Amortization:	  	The Term B Loan Facility shall be subject to quarterly amortization of principal equal to 0.25% of the original aggregate principal amount of the Term B Loan Facility, with the balance payable on the Term B Loan Facility Maturity
Date.
		
	Mandatory Prepayments:	  	In addition to the amortization set forth above and subject to the next two paragraphs, mandatory prepayments required with respect to the Term B Loan Facility shall be limited to: (i) subject to customary exceptions and thresholds
(with exceptions for, among others, ordinary course dispositions, dispositions of obsolete or worn-out property, property no longer used or useful in the business and other exceptions to be mutually agreed), the receipt of net cash proceeds by the
Borrower or any of its restricted subsidiaries in excess of an amount to be mutually agreed from any disposition of assets outside the ordinary course of business or casualty event by the Borrower or any of its restricted subsidiaries, in each case,
to the extent such proceeds are not reinvested (or committed to be reinvested) in the business of the Borrower or any of its subsidiaries within twelve months after the date of receipt of such proceeds from such disposition or casualty event and, if
so committed to be reinvested, reinvested no later than 180 days after the end of such twelve month period; (ii) following the receipt of net cash proceeds from the issuance or incurrence after the Closing Date of additional debt of the
Borrower or any of its restricted subsidiaries (other than debt permitted under the Credit Documentation other than Refinancing Indebtedness); and (iii) in an amount equal to 0% of annual Excess Cash Flow (to be defined in the Credit
Documentation) of the Borrower and its restricted subsidiaries beginning with the Borrower’s fiscal year ending March 31, 2018 with one step up to 50% when the Secured Leverage Ratio is greater than 1.75 to 1.00 (with a dollar-for-dollar
credit for optional prepayments of the Term B Loan Facility and any Incremental Facility (in the case of any Incremental Revolving Facility, to the extent accompanied by a permanent reduction of the corresponding commitment) subsequent to the first
day of the relevant year other than to the extent financed with long-term debt), in each case of clauses (i) - (iii), subject to the limitations set forth in the paragraph immediately following, such amounts shall be applied, without premium or
penalty, to the remaining amortization payments under the Term B Loan Facility in direct order of maturity.

  
 Annex I-9 

			
		
		  	Any Lender under the Term B Loan Facility may elect not to accept its pro rata portion of any mandatory prepayment other than a prepayment pursuant to clause (ii) above (each a “Declining Lender”). Any
prepayment amount declined by a Declining Lender may be retained by the Borrower (such amount, a “Declined Amount”).
		
		  	Mandatory prepayments in clauses (i) and (iii) above shall be limited to the extent the upstreaming or transfer of such amounts from a foreign subsidiary to the Borrower or any other applicable subsidiary would result in material
adverse tax consequences until such time as the Borrower or its applicable subsidiary may upstream or transfer such amounts and shall be subject to permissibility under local law of upstreaming proceeds (including financial assistance and corporate
benefit restrictions and fiduciary and statutory duties of the relevant directors). The non-application of any mandatory prepayment amounts as a consequence of the foregoing provisions will not, for the avoidance of doubt, constitute a default or an
event of default, and such amounts shall be available for working capital purposes of the Borrower and its subsidiaries.
		
	Optional Prepayments:	  	The Term B Loan Facility may be prepaid at any time in whole or in part without premium or penalty, upon written notice, at the option of the Borrower, except (x) that any prepayment of LIBOR advances other than at the end of the
applicable interest periods therefor shall be made with customary reimbursement for any funding losses and redeployment costs (but not loss of margin) of the Lenders resulting therefrom and (y) as set forth in “Soft-Call Premium” below.
Each optional prepayment of the Term B Loan Facility shall be applied as directed by the Borrower (and absent such direction, in direct order of maturity thereof).
		
	Soft-Call Premium:	  	In the event that all or any portion of the Term B Loan Facility is (i) repaid, prepaid, refinanced or replaced with term loan indebtedness with a lower effective yield (to be defined) than the effective yield of such Term B Loan
Facility or (ii) repriced through any waiver, consent or amendment that has the effect of reducing the effective yield of the Term B Loan Facility (a “Repricing Transaction”), in each case, prior to the six-month anniversary
of the Closing Date and other than in connection with a change of control, such repayment, prepayment, refinancing, replacement or repricing will be accompanied by a premium of 1% of the principal amount so repaid, prepaid, refinanced, replaced or
repriced. If all or any portion of the Term B Loan Facility held by any Lender is required to be assigned pursuant to a “yank-a-bank” provision in the Credit Documentation as a result of, or in connection with a Repricing Transaction prior
to the six-month anniversary of the Closing Date, such Lender not agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (ii) above (or otherwise in connection with a Repricing Transaction), such replacement will
be accompanied by a premium equal to 1% of the principal amount so required to be assigned.

  
 Annex I-10 

			
		
	Security:	  	Subject to the limitations set forth below in this section and subject to certain other exceptions, the Borrower Obligations, the Guarantees and any interest rate protection or other swap or hedging arrangements, or cash management
arrangements, in each case, entered into with a Lender or agent or any affiliate of a Lender or agent (collectively, the “Secured Obligations”) will be secured, on a first priority basis, by: (a) a perfected pledge of 100% of
each direct subsidiary of the Borrower and of each Guarantor (which pledge, in the case of capital stock of any foreign subsidiary that is a CFC or any Disregarded Domestic Person shall be limited to 65% of the voting capital stock and 100% of the
non-voting capital stock of such foreign subsidiary or Disregarded Domestic Person) and (b) perfected security interests in substantially all of the Borrower’s and each Guarantor’s assets, including tangible and intangible personal
property of the Borrower and each Guarantor (including but not limited to accounts receivable, inventory, equipment, general intangibles, deposit and securities accounts, investment property, intellectual property, intercompany notes, instruments,
chattel paper and documents and proceeds of the foregoing) (the items described in clauses (a) and (b) above, but excluding the Excluded Assets (as defined below), collectively, the “Collateral”).
		
		  	Notwithstanding anything to the contrary, the Collateral shall exclude the following: (i) all fee-owned real property and all real property leasehold interests, (ii) any governmental licenses or state or local franchises, charters
or authorizations, to the extent a security interest in any such licenses, franchise, charter or authorization would be prohibited thereby (including any legally effective prohibition) after giving effect to the applicable anti-assignment provisions
of the Uniform Commercial Code or other similar applicable law, (iii) pledges and security interests prohibited by applicable law, rule or regulation (including any legally effective requirement to obtain the consent of any governmental authority),
(iv) margin stock and, to the extent prohibited by the terms of any applicable organizational documents, joint venture agreement or shareholders’ agreement, equity interests in any person other than wholly-owned restricted subsidiaries, (v)
assets to the extent a security interest in such assets would result in material adverse tax consequences as reasonably determined by the Borrower, (vi) any equity interests in any subsidiary that is a CFC or Disregarded Domestic Person (other than
to the extent expressly provided in the previous paragraph), (vii) any intent-to-use trademark application prior to the filing of a “Statement of Use” or “Amendment to Allege Use” with respect thereto to the extent, if any, that,
and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of such intent-to-use trademark application under applicable federal law; and (viii) any lease, license or other
agreement or any property subject to a purchase money security interest or similar arrangement permitted by the Credit Documentation to the extent that a grant of a security interest therein would violate or invalidate such lease, license or
agreement or purchase money arrangement after giving effect to the applicable anti-assignment provisions of the Uniform Commercial Code or other similar applicable law, other than proceeds and receivables thereof, the assignment of which is
expressly deemed effective under the Uniform Commercial Code or other similar applicable law notwithstanding such prohibition. The Collateral may also exclude those assets as to which the Administrative Agent and the Borrower agree in writing that
the cost of obtaining such a security interest is excessive in relation to the benefit to the Lenders of the security to be afforded thereby (the foregoing described in the previous two sentences are collectively referred to as the
“Excluded Assets”). In addition, (a) landlord, bailee or warehouseman waivers or collateral access agreements shall not be required, control agreements shall not be required with respect to any deposit accounts,
securities accounts or commodities accounts and no perfection actions other than the filing of UCC financing statements shall be required with respect to motor vehicles and other assets subject to certificates of title, letter of credit rights,
except as to which perfection may be accomplished solely by the filing of a UCC financing statement (it being understood that no actions shall be required to perfect a security interest in letter of credit rights, other than the filing of a UCC
financing statement), commercial tort claims with a value of less than an amount to be agreed and promissory notes evidencing debt in a principal amount of less than an amount to be agreed and (b) no actions in any non-U.S. jurisdiction or
required by the laws of any non-U.S. jurisdiction shall be required to be taken to create or perfect any security interests in assets located or titled outside of the U.S. (it being understood that there shall be no security agreements or pledge
agreements governed under the laws of any non U.S. jurisdiction).

  
 Annex I-11 

			
		
		  	All the above-described pledges, security interests and mortgages shall be set forth in the Credit Documentation; and none of the Collateral shall be subject to other pledges, security interests or mortgages, other than certain
customary permitted encumbrances and other exceptions and baskets to be set forth in the Credit Documentation.
		
	 Conditions Precedent to
 Initial
Borrowing on the
	  	
	Closing Date:	  	The availability of the Term B Loan Facility on the Closing Date will be limited to those applicable conditions specified in paragraph 5 of the Commitment Letter.
		
	Representations and	  	
	Warranties:	  	Limited to the following and applicable to the Borrower and its restricted subsidiaries: organizational status and good standing; corporate power and authority, and enforceability of Credit Documentation; with respect to the
execution, delivery and performance of the Credit Documentation, no violation of or default under law, organizational documents or material agreements; compliance with law; no undisclosed material litigation; margin regulations; material
governmental and third party approvals with respect to the execution, delivery and performance of the Credit Documentation; Investment Company Act; anti-corruption and sanction laws, including the USA PATRIOT Act, OFAC, AML and FCPA; no default;
accuracy of historical financial statements; taxes; ERISA matters; subsidiaries; environmental laws; use of proceeds; ownership of properties; creation, perfection and priority of liens and other security interests; insurance; consolidated Closing
Date solvency of the Borrower and its subsidiaries; no material adverse change; intellectual property; labor matters; margin regulations; and disclosure, subject, where applicable, in the case of each of the foregoing representations and warranties,
to qualifications and limitations for materiality to be provided in the Credit Documentation.

  
 Annex I-12 

			
		
	Covenants:	  	Subject to the Documentation Standard, with customary materiality qualifiers, limitations, exceptions, thresholds and baskets to be reasonably and mutually agreed, covenants shall be limited to the following:
		
		  	 (A)   Affirmative Covenants: Limited to the following (to be applicable to
the Borrower and its restricted subsidiaries only): (i) compliance with laws and regulations (including, without limitation, ERISA and environmental laws); (ii) compliance with anticorruption laws and applicable sanctions, including USA PATRIOT Act,
OFAC, AML and FCPA; (iii) payment of taxes; (iv) maintenance of customary insurance; (v) preservation of corporate existence, rights (charter and statutory), franchises, permits, licenses and approvals; (vi) reasonable inspection rights; (vii)
keeping of proper books in accordance with generally accepted accounting principles; (viii) maintenance of properties; (ix) further assurances as to perfection and priority of security interests; (x) guaranties and collateral from future
subsidiaries and after-acquired property; (xi) use of proceeds; (xii) customary financial and other reporting and notice requirements (including, without limitation, audited annual financial statements (which shall not be qualified or limited in any
respect (other than any exception, qualification or explanatory paragraph that is expressly solely with respect to, or expressly resulting solely from (i) an upcoming maturity date under the Term B Loan Facility or any Incremental Facility
occurring within one year from the time such opinion is delivered or (ii) any potential inability to satisfy a financial maintenance covenant contained in the Credit Documentation) delivered within 90 days after the end of any fiscal year and
quarterly unaudited financial statements delivered within 45 days after the end of the first three fiscal quarters of any fiscal year, in each case, accompanied by a customary MD&A, annual budgets, compliance certificates, certain customary
reports and other business and financial information as any Lender shall reasonably request); (xiii) quarterly lender calls (it being understood that this covenant shall be satisfied if Lenders are permitted to join the Borrower’s
quarterly calls with its common equity holders); (xiv) commercially reasonable efforts to maintain credit ratings for the Term B Loan Facility and public corporate rating for the Borrower, provided that the maintenance of any particular
rating shall not be required; (xv) notices of defaults and other material events; and (xvi) designation and redesignation of unrestricted subsidiaries, subject, in the case of each of the foregoing covenants, to exceptions and qualifications to be
provided in the Credit Documentation.

  
 Annex I-13 

			
		
		  	 (B)   Negative Covenants: Limited to the following (to be applicable to the
Borrower and its restricted subsidiaries):

		
		  	 (a)    limitations on the incurrence of debt (which shall permit, among other
things to be agreed, (i) the indebtedness under the Term B Loan Facility, Incremental Facilities and Refinancing Indebtedness, (ii) indebtedness of the Borrower and its restricted subsidiaries outstanding on the Closing Date; provided that,
any permitted refinancing of the 2022 Convertible Notes shall be subject to terms and conditions to be agreed, including that such refinancing indebtedness mature no earlier than 91 days after the Term B Loan Facility Maturity Date, (iii)
non-speculative hedging arrangements entered into in the ordinary course of business, (iv) any junior secured or unsecured notes or junior secured or unsecured term loans issued in lieu of the Incremental Facilities (provided that, in lieu of
complying with the Secured Leverage Ratio of 2.50 to 1.00 set forth in the section entitled “Incremental Facilities”, in case of unsecured debt, the Total Leverage Ratio (calculated on a pro forma basis and calculated on the same basis as
the Secured Leverage Ratio) would not exceed 4.25 to 1.00; provided that (I) the incurrence of such indebtedness shall reduce dollar for dollar the amount of indebtedness that the Borrower may incur in respect of the Incremental
Facilities (and any unsecured debt shall be deemed Secured Debt for purposes of calculating the Secured Leverage Ratio in connection with incurring Secured Debt under this clause (iv) and the Incremental Facilities), (II) such indebtedness
matures at least 91 days after the latest date of maturity of the Term B Loan Facility and of any In-cremental Facility, (III) any subsidiaries of the Borrower that do not guarantee the Term B Loan Facility shall not guarantee such indebtedness,
(IV) any secured debt shall be secured solely by Collateral on a junior lien basis and shall be subject to a customary intercreditor agreement reasonably acceptable to the Administrative Agent and the Borrower and (V) such debt shall be on
other terms to be set forth in the Credit Documentation, (v) indebtedness incurred and/or assumed on the terms set forth in the second succeeding paragraph, (vi) purchase money indebtedness and capital leases in an amount to be agreed,
(vii) indebtedness arising from agreements providing for adjustments of purchase price or “earn outs” entered into in connection with acquisitions subject to customary limitations, (viii) other indebtedness of the Borrower and its
restricted subsidiaries, which requires no mandatory repayment or redemption (other than customary change of control or asset sale offers or upon any event of default) prior to the date which is 91 days later than the latest maturity date of the
Term B Loan Facility and any Incremental Facility, maturing at least 91 days after the latest maturity date of the Term B Loan Facility and any Incremental Facility subject to no default or event of default having occurred (before or after giving
effect to such incurrence) and the Borrower’s Total Leverage Ratio (calculated on a pro forma basis) not exceeding 4.25 to 1.00; provided that the aggregate amount of such indebtedness that may be incurred under this clause
(viii) by restricted subsidiaries that are not or do not become Guarantors, together with debt incurred under the second succeeding paragraph, shall be limited to an aggregate amount to be agreed, (ix) a general debt basket equal to $50.0
million, (x) a nonguarantor debt basket in an amount to be agreed and (xi) certain ordinary course performance guarantees);

  
 Annex I-14 

			
		
		  	 (b)    limitations on liens (which shall permit, among other things to be
agreed, (i) junior liens securing any secured debt issued pursuant to clause (a)(iv) above, (ii) liens on the Collateral securing Refinancing Indebtedness, (iii) liens securing debt assumed in connection with a Permitted Acquisition (as defined
below); provided that, such liens extend to the same assets (and any after acquired assets attaching thereto as a matter of law) that such liens extended to, and secure the same indebtedness, that such liens secured, immediately prior to such
assumptionand were not created in contemplation thereof, (iv) a general lien basket equal to $50.0 million and (v) liens securing indebtedness of non-guarantor subsidiaries, provided such liens only extend to assets of non-guarantor
subsidiaries);

		
		  	 (c)    limitations on asset sales (including sales of subsidiaries) (which
shall be permitted on the terms set forth in the third succeeding paragraph);

		
		  	 (d)    limitations on investments, including acquisitions (which, among other
things to be agreed, shall permit (i) acquisitions on the terms set forth in the fourth succeeding paragraph, (ii) a general investment basket in an amount to be agreed plus, subject to the Borrower being able to incur $1 of debt under the Total
Leverage Ratio test described above under clause (a)(iv) under “Negative Covenants” on a pro forma basis, the Available Amount Basket and (iii) unlimited investments subject to no event of default existing or resulting
therefrom and compliance on a pro forma basis with a Total Leverage Ratio of 3.00 to 1.00 (the “Leverage Based Investment Basket”));

  
 Annex I-15 

			
		
		  	 (e)    limitations on dividends or distributions on, or redemptions of, the
Borrower’s or any restricted subsidiary’s equity (“Restricted Payments”) (which shall permit, among other things to be agreed, (i) a general Restricted Payment basket of, subject to no event of default existing or
resulting therefrom, $25.0 million plus, subject to no event of default existing or resulting therefrom and compliance on a pro forma basis with a Total Leverage Ratio of 4.00 to 1.00, the Available Amount Basket, (ii) unlimited Restricted Payments
subject to no event of default existing or resulting therefrom and compliance on a pro forma basis with a Total Leverage Ratio of 2.75 to 1.00 (the “Leverage Based RP Basket”) and (iii) subject to no event of default
existing or resulting therefrom, re-purchases of up to $60.0 million per fiscal year of the Borrower’s common stock;

		
		  	 (f)     limitations on prepayments or redemptions of subordinated or
junior lien indebtedness for borrowed money, or the 2022 Convertible Notes (collectively, “Junior Debt”) or amendments of the documents governing such Junior Debt in a manner materially adverse to the Lenders
(which shall permit, among other things to be agreed (i) a general prepayment basket in an amount to be agreed plus, subject to the Borrower being able to incur $1 of debt under the Total Leverage Ratio test described above under clause (a)(iv)
under “Negative Covenants” on a pro forma basis, the Available Amount Basket, (ii) unlimited prepayments subject to no event of default existing or resulting therefrom and compliance on a pro forma basis with a Total
Leverage Ratio of 3.00 to 1.00 (the “Leverage Based Prepayments Basket”), (iii) refinancing or exchanges of Junior Debt for like or junior debt subject to terms and conditions to be set forth in the Credit Documentation
and (iv) conversion of Junior Debt to common or “qualified preferred” equity);

		
		  	 (g)    limitations on agreements restricting distributions, dividends and
other specified transfers from restricted subsidiaries to the Borrower or any Guarantor, fundamental changes and negative pledge clauses;

		
		  	 (h)    limitations on transactions with
affiliates;

  
 Annex I-16 

			
		
		  	 (i)     limitations on changes in fiscal year and in lines of business;
and

		
		  	 (j)     modifying organizational documents in a manner materially adverse
to Lenders

		
		  	 The negative covenants will be subject, in the case of each of the foregoing covenants to exceptions, qualifications
and “baskets” to be set forth in the Credit Documentation. In addition, the negative covenants described in clauses (d), (e) and (f) above shall include an “Available Amount Basket”, which shall mean a
cumulative amount equal to (a) 50% of Excess Cash Flow (provided that the calculation of Excess Cash Flow shall exclude Excess Cash Flow generated by non-U.S. subsidiaries that would be prohibited under any applicable laws from being
repatriated to the United States or that the Borrower determines in good faith would result in a tax liability that is material to the amount of funds otherwise required to be repatriated (including any withholding tax) if repatriated to the United
States) for each fiscal year (commencing with the fiscal year ending March 31, 2018), plus (b) the cash proceeds of new public or private qualified equity issuances or an equity capital contribution to the Borrower (other than disqualified
stock) after the Closing Date, plus (c) the aggregate cash proceeds from debt and disqualified stock incurred after the Closing Date exchanged or converted into qualified equity, plus (d) the net cash proceeds received by the Borrower and
its restricted subsidiaries after the Closing Date from sales of investments made using the Available Amount Basket (up to the amount, when combined with any amount set forth in clause (e) below, of the original investment), plus
(e) returns, profits, distributions and similar amounts received in cash or cash equivalents by the Borrower and its restricted subsidiaries after the Closing Date on investments made using the Available Amount Basket (up to the amount, when
combined with any amount set forth in clause (f) above, of the original investment), plus (f) the investments of the Borrower and its restricted subsidiaries in any unrestricted subsidiary out of the Available Amount Basket that has been
re-designated as a restricted subsidiary or that has been merged or consolidated with or into the Borrower or any of its restricted subsidiaries after the Closing Date (up to the fair market value of the original investments by the Borrower and its
restricted subsidiaries in such unrestricted subsidiary) minus (g) all Restricted Payments made pursuant to the Leverage Based RP Basket, all investments made pursuant to the Leverage Based Investment Basket and all prepayments made pursuant to
the Leverage Based Prepayment Basket; provided that in no event shall the Available Amount Basket at any time be less than $0.

  
 Annex I-17 

			
		
		  	 The Borrower or any restricted subsidiary will be permitted to incur and/or assume indebtedness in connection with a
Permitted Acquisition so long as (i) with respect to any newly incurred indebtedness, (x) the maturity date of such indebtedness is no earlier than 91 days later than the final maturity date of the Term B Loan Facility and any Incremental Facility,
(y) such indebtedness requires no mandatory repayment or redemption (other than customary change of control or asset sale offers or upon any event of default) prior to the date which is 91 days later than the latest maturity date of the Term B Loan
Facility and any Incremental Facility, and (z) such indebtedness is unsecured or is only secured to the extent permitted pursuant to clause (b) under the heading “Negative Covenants” above, (ii) with respect to assumed indebtedness, such
indebtedness is only the obligation of the person and/or person’s subsidiaries that are acquired or that acquired the relevant assets and such indebtedness was not incurred in contemplation of such acquisitions, (iii) the Total Leverage Ratio
(calculated on a pro forma basis) would not exceed 4.25 to 1.00 and (iv) before and after giving effect thereto, no default or event of default has occurred and is continuing; provided that the aggregate amount of indebtedness that may
be incurred under this paragraph by restricted subsidiaries that are not Guarantors together with debt incurred under clause (a)(viii) of the first paragraph under “Negative Covenants” shall not exceed an amount to be
agreed.

		
		  	 The Borrower or any restricted subsidiary will be permitted to make non-ordinary course of business asset sales or
dispositions so long as (a) such sales or dispositions are for fair market value, (b) at least 75% of the consideration for asset sales and dispositions shall consist of cash or cash equivalents (subject to exceptions to be set forth in the Credit
Documentation, which shall include a basket for non-cash consideration that may be designated as cash consideration in an amount equal to 2.0% of the Borrower’s consolidated total assets) and (c) before and after giving effect to such asset
sale, no event of default has occurred and is continuing.

		
		  	 The Borrower or any restricted subsidiary will be permitted to make acquisitions of the equity interests in a person
that becomes a restricted subsidiary, or all or substantially all of the assets (or all or substantially all the assets constituting a business unit, division, product line or line of business) of any person (each, a “Permitted
Acquisition”) so long as (a) there is no event of default existing at the time of or after giving pro forma effect to such acquisition, (b) the acquired company or assets are in a similar, ancillary, complementary or related line of
business as the Borrower and its subsidiaries and (c) subject to the limitations set forth in “Guarantees” and “Security” above, the acquired company and its subsidiaries (other than any subsidiaries of the acquired company
designated as an unrestricted subsidiary as provided in “Unrestricted Subsidiaries” below) will become Guarantors and pledge their Collateral to the Administrative Agent. Acquisitions of entities that do not become Guarantors and of assets
by entities that are not Guarantors shall not exceed an amount to be agreed.

  
 Annex I-18 

			
		
	Financial Maintenance Covenants:	  	None.
		
	Unrestricted Subsidiaries:	  	The board of directors of the Borrower may at any time after the Closing Date designate any restricted subsidiary as an unrestricted subsidiary or any unrestricted subsidiary as a restricted subsidiary; provided that (i)
immediately before and after such designation on a pro forma basis, no default or event of default shall have occurred and be continuing and (ii) immediately after giving effect to such designation or redesignation, the Borrower shall be able to
incur at least $1 of debt under the Total Leverage Ratio test described above under clause (a)(iv) under “Negative Covenants”. The designation of any subsidiary as an unrestricted subsidiary after the Closing Date shall
constitute an investment by the Borrower therein at the date of designation in an amount equal to the fair market value of the Borrower’s investment therein. The designation of any unrestricted subsidiary as a restricted subsidiary shall
constitute (i) the incurrence at the time of designation of any investment, indebtedness or liens of such unrestricted subsidiary existing at such time and (ii) a return on any investment by the Borrower or any restricted subsidiary in an
unrestricted subsidiary pursuant to the preceding sentence in an amount equal to the fair market value at the date of such designation of the Borrower’s investment in such subsidiary. Unrestricted subsidiaries will not be subject to the
representation and warranties, affirmative or negative covenant or event of default provisions of the Credit Documentation and the results of operations and indebtedness of unrestricted subsidiaries will not be taken into account for purposes of
determining compliance with any financial ratio contained in the Credit Documentation.
		
	Events of Default:	  	Limited to the following (to be applicable to the Borrower and its restricted subsidiaries only): nonpayment of principal when due; nonpayment of interest or other amounts after a customary five (5) business day grace period;
violation of covenants (subject, in the case of affirmative covenants (other than notices of default and maintenance of the Borrower’s existence), to a thirty (30) day grace period); any representation or warranty proving to have been
materially incorrect when made; cross default to indebtedness of an amount in excess of an amount to be agreed; bankruptcy or other insolvency events of the Borrower or its material restricted subsidiaries (with a 60 day grace period for involuntary
events); unpaid or unstayed monetary judgments of an amount in excess of an amount to be agreed; customary ERISA events; actual or asserted invalidity of a material portion of the Guarantees, the security documents or any security interest in
Collateral and change of control with respect to the Borrower (to be defined in a customary and mutually agreeable manner).

  
 Annex I-19 

			
		
	Assignments and Participations:	  	Each Lender will be permitted to make assignments in minimum amounts to be agreed to other entities approved by (x) the Administrative Agent and (y) so long as no payment or bankruptcy default has occurred and is
continuing, the Borrower, each such approval not to be unreasonably withheld or delayed; provided, however, that (i) no approval of the Borrower shall be required in connection with assignments to other Lenders or any of their
affiliates or approved funds, (ii) the Borrower shall be deemed to have given consent to an assignment if it shall have failed to respond to a written request within 10 business days of Borrower’s receipt of such written request and
(iii) no approval of the Administrative Agent shall be required in connection with assignments to other Lenders or any of their affiliates or approved funds. Each Lender will also have the right, without consent of the Borrower or the
Administrative Agent, to assign as security all or part of its rights under the Credit Documentation to any Federal Reserve Bank. Lenders will be permitted to sell participations with voting rights limited to customary significant matters. An
assignment fee in the amount of $3,500 will be charged with respect to each assignment unless waived by the Administrative Agent in its sole discretion. Notwithstanding the foregoing, no loans or commitments shall be assigned or participated to
(x) the Borrower or any of its subsidiaries (except as permitted below), (y) any natural person or (z) Disqualified Lenders to the extent the list of Disqualified Lenders has been made available to all Lenders.
		
		  	In addition, loans under the Term B Loan Facility may be purchased by and assigned to the Borrower or any of its subsidiaries on a non-pro rata basis through (a) open market purchases or (b) Dutch auctions open to all
applicable Lenders on a pro rata basis in accordance with customary procedures, in each case, subject to conditions to be set forth in the Credit Documentation, including that (1) no default or event of default has occurred and is continuing,
(2) any such loans are permanently cancelled immediately upon acquisition thereof and (3) the Borrower or any such subsidiaries shall either (x) make a representation that it is not in possession of material non-public information
with respect to the Borrower, its subsidiaries or their respective securities or (y) disclose to the assigning Lender that it cannot make such representation.
		
	Waivers and Amendments:	  	Amendments and waivers of the provisions of the Credit Documentation will require the approval of Lenders holding more than 50% of the Term B Loan Facility (the “Required Lenders”), except that (a) the
con-sent of each Lender directly and adversely affected thereby will also be required with respect to (i) increases in commitment amount of such Lender, (ii) reductions of principal, interest, or fees payable to such Lender (other than
waivers of default interest, a default or event of default or mandatory prepayment); (iii) extensions of scheduled maturities or times for payment of amounts payable to such Lender (it being understood and agreed that the amendment or waiver of
any mandatory prepayment, waiver of default interest, default or event of default shall only require the consent of the Required Lenders) and (iv) changes in certain pro rata provisions and the waterfall from enforcement and (b) the
consent of each Lender shall be required with respect to (i) releases of all or substantially all of the Collateral or the release of all or substantially all of the value of any guarantees (other than in connection with permitted asset sales,
dispositions, mergers, liquidations or dissolutions or as otherwise permitted under the Credit Documentation) and (ii) the percentage contained in the definition of Required Lenders or other voting
provisions.

  
 Annex I-20 

			
		
		  	In connection with any proposed amendment, modification, waiver or termination (a “Proposed Change”) requiring the consent of all Lenders or all directly and adversely affected Lenders, if the consent to such
Proposed Change of other Lenders whose consent is required is not obtained (but the consent of the Required Lenders or Lenders holding more than 50% of the directly and adversely affected facility, as applicable, is obtained) (any such Lender whose
consent is not obtained being referred to as a “Non-Consenting Lender”), then the Borrower may, at its option and at its sole expense and effort, upon notice to such Non-Consenting Lender and the Administrative Agent, require
such Non-Consenting Lender to assign and delegate, without recourse (in accordance with and subject to customary restrictions on assignment), all its interests, rights and obligations under the Credit Documentation to an assignee that shall assume
such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that, such Non-Consenting Lender shall have received payment of an amount equal to the outstanding principal of its loans, accrued interest
thereon, accrued fees and all other amounts then due and owing to it under the Credit Documentation (at the option of the Borrower, with respect to the class or classes of loans or commitments subject to such Proposed Change) from the assignee (to
the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts). The Credit Documentation shall contain other customary “yank-a-bank” provisions.
		
		  	Notwithstanding anything to the contrary set forth herein, the Credit Documentation shall provide that the Borrower may at any time and from time to time request that all or a portion of any loans under the Term B Loan Facility be
converted to extend the scheduled maturity date of any payment of principal with respect to all or a portion of any principal amount of such loans (any such loans which have been so converted, “Extended Loans”) and upon such
request of the Borrower, any individual Lender shall have the right to agree to extend the maturity date of its outstanding loans without the consent of any other Lender or the Required Lenders; provided that all such requests shall be made
prorata to all Lenders within the Term B Loan Facility. The terms of Extended Loans shall be identical to the loans of the existing class from such Extended Loans are converted except for interest rates, fees, amortization (so long as the weighted
average life to maturity of the Extended Loans exceeds the then remaining weighted average life to maturity of the Term B Loan Facility), final maturity date or final termination date, provisions permitting optional and mandatory prepayments to be
directed first to the non-extended loans prior to being applied to Extended Loans and certain other customary provisions to be agreed.

  
 Annex I-21 

			
	Indemnification:	  	The Administrative Agent, the Lead Arranger and the Lenders and their respective affiliates and controlling persons and their respective officers, directors, employees, partners, agents, advisors and other representatives (each, an
“indemnified person”) will be indemnified for and held harmless against, any losses, claims, damages and liabilities (it being understood that any such losses, claims, damages or liabilities that consist of legal fees and/or
expenses shall be limited to the reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of counsel for all such indemnified persons, taken as a whole and, if necessary, by a single firm of local counsel in each
appropriate jurisdiction (which may include a single firm of special counsel acting in multiple jurisdictions) for all such indemnified persons, taken as a whole (and, in the case of an actual or potential conflict of interest where the indemnified
person affected by such conflict notifies Borrower of the existence of such conflict and thereafter retains its own counsel, by another firm of counsel for all such affected indemnified persons)) incurred in respect of the Credit Documentation, the
Term B Loan Facility or the use or the proposed use of proceeds thereof, the Transactions or any other transactions contemplated hereby, except to the extent they arise from the (a) gross negligence or willful misconduct of, or material breach of
the Credit Documentation by, such indemnified person (or any of its Related Parties) as determined by a final, non-appealable judgment of a court of competent jurisdiction, or (b) material breach of such indemnified persons’ (or any of its
Related Parties’) obligations under the Credit Documentation, as determined by a final, non-appealable judgment of a court of competent jurisdiction or (c) any dispute solely among the indemnified persons (or any of their Related Parties)
(other than any claims against an indemnified person in its capacity as the Administrative Agent or Lead Arranger or similar role under the Term B Loan Facility) and not arising out of any act or omission of the Borrower or any of its
affiliates.
		
	Governing Law:	  	New York.
		
	Expenses:	  	Following written demand (including documentation reasonably supporting such request), the Borrower will pay all reasonable and documented out-of-pocket costs and expenses associated with the preparation, due diligence,
administration, syndication and closing of all Credit Documentation (in the case of legal fees and expenses, limited to the reasonable and documented fees and out-of-pocket expenses of Cahill Gordon & Reindel LLP and of any local counsel to
the Lenders retained by the Lead Arranger or the Administrative Agent, limited to one counsel in each relevant jurisdiction, which, in each case, shall exclude allocated costs of in-house counsel); provided that if the Closing Date does not
occur and no termination fee is paid to you pursuant to Section 7.2(c) of the Acquisition Agreement or no expense reimbursement is paid to you pursuant to Section 7.2(b) of the Acquisition Agreement, the aggregate reimbursement by you of
such fees and expenses shall not exceed $250,000. The Borrower will also, if the Closing Date occurs, pay the reasonable and other counsel (in total) to all of the Lenders (in the absence of conflict) in connection with the enforcement of any of the
Credit Documentation.

  
 Annex I-22 

			
	Counsel to the	  	
	Commitment Party:	  	Cahill Gordon & Reindel LLP.
		
	Miscellaneous:	  	Each of the parties shall (i) waive its right to a trial by jury and (ii) submit to exclusive New York jurisdiction. The Credit Documentation shall contain (x) customary provisions for replacing the commitments of a (i)
“defaulting lender” and (ii) a Lender seeking indemnity for increased costs or grossed-up tax payments and (y) customary EU “Bail-In” provisions.

  
 Annex I-23 

 ANNEX II 

CONDITIONS PRECEDENT TO CLOSING 

Capitalized terms not otherwise defined herein have the same meanings as specified therefor in the Commitment Letter to which this Annex
II is attached. 
 The initial extensions of credit under the Term B Loan Facility will, subject in all respects to the Funds Certain
Provisions, be subject to satisfaction of the following conditions precedent: 
 (i) The Merger shall have been, or shall
substantially concurrently be, consummated in accordance with the terms of the Agreement and Plan of Merger, dated February 13, 2017 among Merger Sub, the Borrower and the Target (together with all Schedules and Exhibits thereto, the
“Acquisition Agreement”) without giving effect to any consent or amendment, change or supplement or waiver of any provision thereof (including any change in the purchase price) in any manner that is materially adverse to the
interests of the Initial Lender or the Lead Arranger (in their capacities as such) without the prior written consent (not to be unreasonably withheld, delayed or conditioned) of the Commitment Party; provided that (i) any immaterial
reduction in the purchase price for the Acquisition set forth in the Acquisition Agreement shall not be deemed to be material and adverse to the interests of the Initial Lender (in its capacity as such) and (ii) any increase in the purchase
price set forth in the Acquisition Agreement shall be deemed to be not material and adverse to the interests of the Initial Lender (in its capacity as such) so long as such purchase price increase is funded with cash on hand and/or proceeds of
common equity of the Borrower. 
 (ii) Since September 25, 2016, there shall not have occurred a Company Material
Adverse Effect (as defined in the Acquisition Agreement). 
 (iii) The Administrative Agent shall have received the Solvency
Certificate from the Borrower’s chief financial officer or other person with similar responsibilities in substantially the form attached hereto on Annex III. 

(iv) The Administrative Agent shall have received (A) customary opinions of counsel to the Borrower and the Guarantors,
(B) customary corporate (or other organizational) resolutions from the Borrower and the Guarantors, customary secretary’s certificates from the Borrower and the Guarantors appending such resolutions, charter documents and an incumbency
certificate and (C) a customary borrowing notice (provided that such notice shall not include any representation or statement as to the absence (or existence) of any default or event of default). 

(v) The Administrative Agent shall have received: (A) the audited consolidated balance sheets and related consolidated
statements of operations, cash flows and shareholders’ equity of each of the Borrower and the Target for the three most recently completed fiscal years of the Borrower and the Target, respectively, ended at least 90 days before the Closing
Date; (B) the unaudited consolidated balance sheets and related statements of operations and cash flows of each of the Borrower and the Target for each subsequent fiscal quarter of the Borrower and the Target, respectively, ended at least 45
days before the Closing Date (the “Quarterly Financial Statements”); and (C) a pro forma balance sheet and related statement of operations of the Borrower and its subsidiaries (including the Acquired Business) as of and
for the twelve-month period ending with the latest quarterly period of the Borrower covered by the Quarterly Financial Statements, in each case after giving effect to the Transaction (the “Pro Forma Financial Statements”),
which need not comply with the requirements of Regulation S-X under the Securities Act, as amended, or include adjustments for purchase accounting or any reconciliation to generally accepted accounting principles in the United States. The
Administrative Agent hereby acknowledges receipt of (i) the audited consolidated balance sheets and related consolidated statements of operations, cash flows and shareholders’ equity for the Target’s fiscal year ended on
December 31, 2015, December 31, 2014 and December 31, 2013 (ii) audited consolidated balance sheets and related consolidated statements of operations, cash flows and shareholders’ equity for the Borrower’s fiscal
year ended on April 3, 2016, March 29, 2015 and March 30, 2014, (iii) the unaudited consolidated balance sheets and related statements of operations and cash flows of the Target’s fiscal quarters ended on March 27,
2016, June 26, 2016 and September 25, 2016 and (iv) the unaudited consolidated balance sheets and related statements of operations and cash flows of Borrower for the fiscal quarters ended on July 3,
2016, October 2, 2016 and January 1, 2017 (collectively, the “Delivered Financial Information”). 

  
 Annex II-1 

 (vi) The Lead Arranger shall have received a customary Information Memorandum
(other than portions thereof customarily provided by financing arrangers and limited, in the case of the financial information to the financial statements described in clauses (A) and (B) of paragraph (v) above (it being understood
that only the Delivered Financial Information shall be required to be delivered under this clause (vi)) (the “Required Information”) for the Term B Loan Facility not later than 15 consecutive business days prior to the
Closing Date. 
 (vii) All fees due to the Administrative Agent, the Lead Arranger and the Lenders under the Fee Letter and
the Commitment Letter to be paid on or prior to the Closing Date, and all reasonable and documented out-of-pocket expenses to be paid or reimbursed under the Commitment Letter to the Administrative Agent and the Lead Arranger on or prior to the
Closing Date that have been invoiced at least three business days prior to the Closing Date, shall have been paid, in each case, from the proceeds of the initial funding under the Term B Loan Facility (which amounts may be offset against the
proceeds of the Term B Loan Facility). 
 (viii) The Refinancing shall have been, or shall substantially concurrently with
the initial funding of the Term B Loan Facility be, consummated. 
 (ix) The Borrower and each of the Guarantors shall have
provided the documentation and other information to the Administrative Agent that are required by regulatory authorities under applicable “know-your-customer” rules and regulations, including the Patriot Act, at least 3 business days prior
to the Closing Date to the extent such information has been reasonably requested in writing by the Administrative Agent at least 10 business days prior to the Closing Date. 

(x) Subject in all respects to the Funds Certain Provisions, all documents and instruments required to create and perfect the
Administrative Agent’s security interests in the Collateral shall have been executed and delivered by the Borrower and the Guarantors (or, where applicable, the Borrower and the Guarantors shall have authorized the filing of financing
statements under the Uniform Commercial Code) and, if applicable, be in proper form for filing. 

  
 Annex II-2 

 ANNEX III 

SOLVENCY CERTIFICATE1 

[             ], 201[     ] 

This SOLVENCY CERTIFICATE (this “Certificate”) is delivered in connection with that certain Credit Agreement dated as
of [            ], 201[        ] (as amended, supplemented, amended and restated, replaced, or otherwise modified from time to time, the
“Credit Agreement”) among Integrated Device Technology, Inc., a Delaware corporation (the “Borrower”),
[                    ], as administrative agent and collateral agent, the financial institutions from time to time party thereto as lenders and the
other parties thereto. Capitalized terms used herein without definition have the same meanings as in the Credit Agreement. 
 As of the date
hereof, in my capacity as a Responsible Officer of Company (as defined below), and not in my individual or personal capacity, I believe that: 

1. Company (as used herein “Company” means the Borrower and its subsidiaries, taken as a whole) is not
now, nor will the incurrence of the obligations under the Credit Agreement and the consummation of the Acquisition on the Closing Date (and after giving effect to the application of the proceeds of the Loans), on a pro forma basis, render Company
“insolvent” as defined in this paragraph; in this context, “insolvent” means that (i) the fair value of assets (on a going concern basis) of the Company is less than the amount that will be required to pay the total
liability on existing debts as they become absolute and matured, (ii) the present fair salable value of assets (on a going concern basis) of the Company is less than the amount that will be required to pay the total liability on existing debts
as they become absolute and matured in the ordinary course of business, or (iii) the Company ceases to pay its current obligations in the ordinary course of business as they generally become due. The term “debts” as used in this
Certificate includes any legal liability, whether matured or unmatured, liquidated or unliquidated, absolute, fixed or contingent and “values of assets” shall mean the amount of which the assets (both tangible and intangible) in their
entirety would change hands between a willing buyer and a willing seller, with a commercially reasonable period of time, each having reasonable knowledge of the relevant facts, with neither being under compulsion to act. 

2. The incurrence of the obligations under the Credit Agreement and the consummation of the other Transactions on the Closing
Date (and after giving effect to the application of the proceeds of the Loans), on a pro forma basis, will not leave Company with property remaining in its hands constituting “unreasonably small capital”. I understand that
“unreasonably small capital” depends upon the nature of the particular business or businesses conducted or to be conducted, and I have reached my conclusion based on my current assumptions regarding the needs and anticipated needs for
capital of the businesses conducted or anticipated to be conducted by Company in light of projected financial statements and available credit capacity, which current assumption I do not believe to be unreasonable in light of the circumstances
applicable thereto. 
  

	1 	Defined terms to be aligned with those in the definitive Credit Agreement, but consistent with this form of solvency certificate. 

  
 Annex III-1 

 IN WITNESS WHEREOF, the undersigned has executed this Solvency Certificate in such
undersigned’s capacity as an officer of the Borrower, on behalf of the Borrower, and not individually, as of the date first above written. 
  

			
	INTEGRATED DEVICE TECHNOLOGY, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 Signature Page to Solvency CertificateExh. 4.1

KORTH DIRECT MORTGAGE LLC

  FIRST MORTGAGE SECURED NOTES 

 

INDENTURE

DATED AS OF [      , 2017]

 

DELAWARE TRUST COMPANY

 AS TRUSTEE

 

 

 

 

CROSS REFERENCE TABLE1

	
TIA

	
 

	
 

	
INDENTURE

	
SECTION

	
 

	
 

	
SECTION

	
310

	
 

	
(a)(1)

	
 

	
6.8; 6.10

	
 

	
 

	
(a)(2)

	
 

	
6.10

	
 

	
 

	
(a)(3)

	
 

	
N.A.

	
 

	
 

	
(a)(4)

	
 

	
N.A.

	
 

	
 

	
(a)(5)

	
 

	
6.10

	
 

	
 

	
(b)

	
 

	
6.8; 6.10

	
 

	
 

	
(c)

	
 

	
N.A.

	
311

	
 

	
(a)

	
 

	
6.11

	
 

	
 

	
(b)

	
 

	
6.11

	
 

	
 

	
(c)

	
 

	
N.A.

	
312

	
 

	
(a)

	
 

	
2.6

	
 

	
 

	
(b)

	
 

	
9.3

	
 

	
 

	
(c)

	
 

	
9.3

	
313

	
 

	
(a)

	
 

	
6.6

	
 

	
 

	
(b)

	
 

	
6.6

	
 

	
 

	
(c)

	
 

	
6.6; 9.2

	
 

	
 

	
(d)

	
 

	
N.A.

	
314

	
 

	
(a)

	
 

	
3.2; 9.2

	
 

	
 

	
(b)

	
 

	
N.A.

	
 

	
 

	
(c)(1)

	
 

	
9.4

	
 

	
 

	
(c)(2)

	
 

	
9.4

	
 

	
 

	
(c)(3)

	
 

	
N.A.

	
 

	
 

	
(d)

	
 

	
N.A.

	
 

	
 

	
(e)

	
 

	
9.6

	
 

	
 

	
(f)

	
 

	
3.3

	
315

	
 

	
(a)

	
 

	
6.1

	
 

	
 

	
(b)

	
 

	
6.5; 9.2

	
 

	
 

	
(c)

	
 

	
6.1

	
 

	
 

	
(d)

	
 

	
6.1

	
 

	
 

	
(e)

	
 

	
5.11

	
316

	
 

	
(a)(1)(A)

	
 

	
5.5

	
 

	
 

	
(a)(1)(B)

	
 

	
5.4

	
 

	
 

	
(a)(2)

	
 

	
N.A.

	
 

	
 

	
(b)

	
 

	
5.7

	
 

	
 

	
(c)

	
 

	
N.A.

	
317

	
 

	
(a)(1)

	
 

	
5.8

	
 

	
 

	
(a)(2)

	
 

	
5.9

	
 

	
 

	
(b)

	
 

	
2.5

	
318

	
 

	
(a)

	
 

	
9.1

N.A. means not applicable.

 

1Note: This Cross Reference Table shall not, for any purpose, be deemed to be part of the Indenture.

 

i

TABLE OF CONTENTS2

	
 

	
 

	
 

	
 

	
 

	
ARTICLE I

	
 

	
DEFINITIONS AND INCORPORATION BY REFERENCE

	
 

	
1

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 1.1 DEFINITIONS

	
 

	
1

	
 

	
 

	
Section 1.2 OTHER DEFINITIONS

	
 

	
4

	
 

	
 

	
Section 1.3 INCORPORATION BY REFERENCE OF TRUST 

 INDENTURE ACT

	
 

	
4

	
 

	
 

	
Section 1.4 RULES OF CONSTRUCTION

	
 

	
5

	
 

	
 

	
 

	
 

	
 

	
ARTICLE II

	
 

	
THE NOTES

	
 

	
5

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 2.1 FORMS GENERALLY

	
 

	
5

	
 

	
 

	
Section 2.2 TITLE, TERMS AND DENOMINATIONS

	
 

	
5

	
 

	
 

	
Section 2.3 EXECUTION, AUTHENTICATION, DELIVERY AND 

 DATING

	
 

	
7

	
 

	
 

	
Section 2.4 REGISTRAR AND PAYING AGENT

	
 

	
8

	
 

	
 

	
Section 2.5 PAYING AGENT TO HOLD MONEY AND NOTES IN 

 TRUST

	
 

	
9

	
 

	
 

	
Section 2.6 NOTEHOLDER LISTS

	
 

	
9

	
 

	
 

	
Section 2.7 TRANSFER

	
 

	
 

	
 

	
 

	
Section 2.8 OUTSTANDING NOTES; DETERMINATIONS OF 

 HOLDERS’ ACTION

	
 

	
10

	
 

	
 

	
Section 2.9 CANCELLATION

	
 

	
11

	
 

	
 

	
Section 2.10 PAYMENTS

	
 

	
11

	
 

	
 

	
Section 2.11 PERSONS DEEMED OWNERS

	
 

	
11

	
 

	
 

	
Section 2.12 CUSIP NUMBERS

	
 

	
12

	
 

	
 

	
 

	
 

	
 

	
ARTICLE III

	
 

	
COVENANTS

	
 

	
12

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 3.1 PAYMENT OF NOTES

	
 

	
12

	
 

	
 

	
Section 3.2 SEC REPORTS

	
 

	
12

	
 

	
 

	
Section 3.3 COMPLIANCE CERTIFICATE; STATEMENT BY 

 OFFICERS AS TO DEFAULT

	
 

	
12

	
 

	
 

	
Section 3.4 FURTHER INSTRUMENTS AND ACTS

	
 

	
13

	
 

	
 

	
Section 3.5 MAINTENANCE OF OFFICE OR AGENCY

	
 

	
13

	
 

	
 

	
Section 3.6  LOAN SERVICING

	
 

	
13

	
 

	
 

	
 

	
 

	
 

	
ARTICLE IV

	
 

	
SUCCESSOR CORPORATION

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 4.1 WHEN COMPANY MAY MERGE OR TRANSFER 

 ASSETS

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
ARTICLE V

	
 

	
DEFAULTS AND REMEDIES

	
 

	
14

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 5.1 EVENTS OF DEFAULT

	
 

	
14

	
 

	
 

	
Section 5.2 ACCELERATION

	
 

	
16

	
 

	
 

	
Section 5.3 OTHER REMEDIES

	
 

	
16

 

2 Note: This Table of Contents shall not, for any purpose, be deemed to be part of the Indenture.

 

ii

	
 

	
 

	
Section 5.4 WAIVER OF PAST DEFAULTS

	
 

	
16

	
 

	
 

	
Section 5.5 CONTROL BY MAJORITY

	
 

	
17

	
 

	
 

	
Section 5.6 LIMITATION ON SUITS

	
 

	
17

	
 

	
 

	
Section 5.7 RIGHTS OF HOLDERS TO RECEIVE PAYMENT

	
 

	
17

	
 

	
 

	
Section 5.8 COLLECTION SUIT BY TRUSTEE

	
 

	
17

	
 

	
 

	
Section 5.9 TRUSTEE MAY FILE PROOFS OF CLAIM

	
 

	
18

	
 

	
 

	
Section 5.10 PRIORITIES

	
 

	
18

	
 

	
 

	
Section 5.11 UNDERTAKING FOR COSTS

	
 

	
19

	
 

	
 

	
Section 5.12 WAIVER OF STAY, EXTENSION OR USURY LAWS

	
 

	
19

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VI

	
 

	
TRUSTEE

	
 

	
19

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 6.1 DUTIES OF TRUSTEE

	
 

	
19

	
 

	
 

	
Section 6.2 RIGHTS OF TRUSTEE

	
 

	
20

	
 

	
 

	
Section 6.3 INDIVIDUAL RIGHTS OF TRUSTEE, ETC

	
 

	
22

	
 

	
 

	
Section 6.4 TRUSTEE’S DISCLAIMER

	
 

	
22

	
 

	
 

	
Section 6.5 NOTICE OF DEFAULTS

	
 

	
22

	
 

	
 

	
Section 6.6 REPORTS BY TRUSTEE TO HOLDERS

	
 

	
22

	
 

	
 

	
Section 6.7 COMPENSATION AND INDEMNITY

	
 

	
22

	
 

	
 

	
Section 6.8 REPLACEMENT OF TRUSTEE

	
 

	
23

	
 

	
 

	
Section 6.9 SUCCESSOR TRUSTEE BY MERGER

	
 

	
24

	
 

	
 

	
Section 6.10 ELIGIBILITY; DISQUALIFICATION

	
 

	
25

	
 

	
 

	
Section 6.11 PREFERENTIAL COLLECTION OF CLAIMS 

 AGAINST COMPANY

	
 

	
25

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VII

	
 

	
SATISFACTION AND DISCHARGE

	
 

	
25

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 7.1 DISCHARGE OF LIABILITY ON NOTES

	
 

	
25

	
 

	
 

	
Section 7.2 REPAYMENT TO THE COMPANY

	
 

	
26

	
 

	
 

	
 

	
 

	
 

	
ARTICLE VIII

	
 

	
SUPPLEMENTAL INDENTURES

	
 

	
26

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 8.1 SUPPLEMENTAL INDENTURES WITHOUT 

 CONSENT OF HOLDERS

	
 

	
26

	
 

	
 

	
Section 8.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF 

 HOLDERS

	
 

	
27

	
 

	
 

	
Section 8.3 COMPLIANCE WITH TRUST INDENTURE ACT

	
 

	
27

 

iii

 

	
 

	 	
Section 8.4 REVOCATION AND EFFECT OF CONSENTS, 

WAIVERS AND ACTIONS

	 	
27

	
 

	 	
Section 8.5 NOTATION ON OR EXCHANGE OF NOTES

	 	
28

	
 

	 	
Section 8.6 TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES

	 	
28

	
 

	 	
Section 8.7 EFFECT OF SUPPLEMENTAL INDENTURES

	 	
28

	
 

	 	
 

	 	
 

	
ARTICLE IX

	 	
MISCELLANEOUS

	 	
28

	
 

	 	
 

	 	
 

	
 

	 	
Section 9.1 TRUST INDENTURE ACT CONTROLS

	 	
28

	
 

	 	
Section 9.2 NOTICES

	 	
28

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Section 9.3 COMMUNICATION BY HOLDERS WITH OTHER 

 HOLDERS

	
 

	
30

	
 

	
 

	
Section 9.4 CERTIFICATE AND OPINION AS TO CONDITIONS 

 PRECEDENT

	
 

	
30

	
 

	
 

	
Section 9.5 FORM OF DOCUMENTS DELIVERED TO TRUSTEE

	
 

	
30

	
 

	
 

	
Section 9.6 STATEMENTS REQUIRED IN CERTIFICATE OR 

 OPINION

	
 

	
30

	
 

	
 

	
Section 9.7 SEPARABILITY CLAUSE

	
 

	
31

	
 

	
 

	
Section 9.8 RULES BY TRUSTEE, PAYING AGENT AND 

 REGISTRAR

	
 

	
31

	
 

	
 

	
Section 9.9 LEGAL HOLIDAYS

	
 

	
31

	
 

	
 

	
Section 9.10 GOVERNING LAW AND JURISDICTION; WAIVER 

 OF JURY TRIAL

	
 

	
31

	
 

	
 

	
Section 9.11 NO RECOURSE AGAINST OTHERS

	
 

	
32

	
 

	
 

	
Section 9.12 SUCCESSORS

	
 

	
32

	
 

	
 

	
Section 9.13 EFFECT OF HEADINGS AND TABLE OF CONTENTS

	
 

	
32

	
 

	
 

	
Section 9.14 BENEFITS OF INDENTURE

	
 

	
32

	
 

	
 

	
Section 9.15 MULTIPLE ORIGINALS

	
 

	
32

	
 

	
 

	
Section 9.16 FORCE MAJEURE

	
 

	
32

     

	
EXHIBIT A - FORM OF NOTE

	 	
 

	
 

	
A-1

 

iv

 

      INDENTURE dated as of [      ], 2017, by and between Korth Direct Mortgage LLC, a Florida corporation (“Company”), and  Delaware Trust Company, a state chartered trust company incorporated and existing under the laws of the Delaware, as trustee (“Trustee”). 

RECITALS OF THE COMPANY

     The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of special limited obligations of the Company referred to as First Mortgage Secured Notes (herein called the “Notes”) to be issued in series as in this Indenture provided.

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and ratable benefit of the Holders of the Notes or each series thereof as follows:

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1 DEFINITIONS.

     “ACH System” means the Automated Clearing House system of the U.S. Federal Reserve Board or a successor system providing electronic funds transfers between banks.

     “Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition, “Control” when used with respect to any specified person means the power to direct or cause the direction of the management and policies of such person, directly or indirectly, whether through the ownership of voting Notes, by contract or otherwise; and the terms “Controlling” and “Controlled” have meanings correlative to the foregoing.

     .

     “Business Day” means, except as otherwise specified as contemplated by Section 2.2(c), with respect to any Place of Payment or any other particular location referred to in this Indenture or in the Notes, each Monday, Tuesday, Wednesday, Thursday and Friday that is (1) not a day on which the ACH System is closed and (2) not a day on which banking institutions or trust companies are authorized or obligated by law or executive order to close in San Francisco, California, Wilmington, Delaware or New York, New York.

 

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     “Capital Stock” for any corporation means any and all shares, interests, rights to purchase, warrants, options, participations or other equivalents of or interests in (however designated) stock issued by that corporation.

     “Company” means the party named as the “Company” in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor.

     “Company Request” or “Company Order” means a written request or order signed in the name of the Company by its Chairman of the Board, a Vice Chairman, its Chief Executive Officer, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee or, with respect to Sections 2.1, 2.2(c), 2.3, and 6.2, any other employee of the Company named in an Officers’ Certificate delivered to the Trustee.

     “Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

     “Dollar” or “$” means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debts.

     “Exchange Act” means the Notes Exchange Act of 1934, as amended.

     “Holder” or “Noteholder,” when used with respect to any Note, means, the person in whose name a Note is registered on the Registrar’s books.

     “Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof and shall include the terms of a particular series of Notes established as contemplated in Section 2.2(c).

     “Unsuccessful Payment Fees” means any fee imposed by the Company in respect of a  Loan when the Company’s payment request is denied for any reason, including but not limited to insufficient funds in the borrower ’s bank account or the closing of such bank account.

     “Interest Payment Date,” when used with respect to any Note, means the Stated Maturity of an installment of interest on such Note.

     “Maturity,” when used with respect to any Note, means the date on which an installment of Principal thereof or interest thereon becomes due and payable as therein or herein provided, whether at the Stated Maturity, by declaration of acceleration, or otherwise.

     “Loan” means a loan to a borrow originated by the Company’s or purchased in the secondary loan market, but only to the extent such  Loan has been financed by the Company with the proceeds of the Notes. Or has been financed by the Company and where the proper amount of Notes have been issued to the Company for such purchase.

     “ Loan Net Payments,” with respect to a  Loan, means all  Loan Payments net of all applicable Service Charges.

     “ Loan Payments,” with respect to a  Loan, means all amounts received by the Company, and not reversed through the ACH System within four Business Days, in connection with the repayment of such  Loan, including without limitation, all payments or prepayments of principal and interest, any late fees and any amounts received by the Company upon collection efforts; PROVIDED, that  Loan Payments shall not include any Unsuccessful Payment Fees received by the Company in respect of such  Loan or any collection fees imposed in connection with collection efforts on a delinquent  Loan by the Company or by a third-party collection agency.

 

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     “Note or Notes” has the meaning stated in the first recital of this Indenture and more particularly means any Notes authenticated and delivered under this Indenture.

     “Officer” means the Chairman of the Board, any Vice Chairman, the Chief Executive Officer, the President, any Vice President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

     “Officers’ Certificate” means a written certificate containing the information specified in Sections 9.4 and 9.6, signed in the name of the Company by its Chairman of the Board, a Vice Chairman, its Chief Executive Officer, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

     “Opinion of Counsel” means a written opinion containing the information specified in Sections 9.4 and 9.6, from legal counsel who is acceptable to the Trustee. The counsel may be an employee of, or counsel to, the Company or the Trustee.

     “Payment Date” means any Principal Payment Date or Interest Payment Date.

     “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, limited liability company, trust, unincorporated organization, or government or any agency or political subdivision thereof.

     “Place of Payment,” when used with respect to the Notes of any series, means the place or places where, subject to the provisions of Section 3.5, the Principal of and any interest on the Notes of that series are payable as specified as contemplated by Section 2.2(c).

     “Principal” or “Principal Amount” of a Note, except as otherwise specifically provided in this Indenture, means the outstanding principal of the Note.

     “Principal Payment Date,” when used with respect to any Note, means the Stated Maturity of an installment of Principal on such Note.

     “Record Date” for the amounts payable on any Payment Date on the Notes of any series means the date specified for that purpose as contemplated by Section 2.2(c).

     “SEC” means the Notes and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Noteholder” or “Holder,” when used with respect to any Note, means a person in whose name a Note is registered on the Registrar’s books.

     “Service Charge” means, with respect to any  Loan, 1.00% of all  Loan Payments received by the Company or such other amount charged by the Company.

     “Stated Maturity,” when used with respect to any installment of Principal thereof or interest thereon, means the date specified in such Note as the fixed date on which an amount equal to such installment of Principal thereof or interest thereon is due and payable.

     “Subsidiary” means, with respect to any person, a corporation of which a majority of the Capital Stock having voting power under ordinary circumstances to elect a majority of the board of directors of such corporation is owned by (i) such person, (ii) such person and one or more Subsidiaries or (iii) one or more Subsidiaries of such person.

     “TIA” means the Trust Indenture Act of 1939 as in effect on the date of this Indenture, except as provided in Section 8.3.

     “Trust Officer” means , when used with respect to the Trustee, any officer within the corporate trust department of the Trustee, including any vice president, assistant vice president, trust officer or any other officer of the Trustee who customarily performs functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

 

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“Trust Estate” means all right, title and interest of the Company in and to (a) the Loan Documents (b) Revenues, (c) Funds and (d) all other property of every name and nature from time to time hereafter by delivery or by writing mortgaged, pledged, delivered or hypothecated as and for additional

Note under this Indenture by the Company or by anyone on its behalf or with its written consent in favor of the Trustee.

     “Trustee” means the party named as the “Trustee” in the first paragraph of this Indenture until a successor replaces it pursuant to the applicable provisions of this Indenture and, thereafter, shall mean such successor.

     “United States” means the United States of America, its territories, its possessions (including the Commonwealth of Puerto Rico), and other areas subject to its jurisdiction.

     Section 1.2 OTHER DEFINITIONS.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Defined in

	
Term

	
 

	
Section

	
“Bankruptcy Law”

	
 

	
 

	
5.1

	
 

	
“Custodian”

	
 

	
 

	
5.1

	
 

	
“Defaulted Payment”

	
 

	
 

	
2.10

	
 

	
“Event of Default”

	
 

	
 

	
5.1

	
 

	
“Legal Holiday”

	
 

	
 

	
9.9

	
 

	
“Notice of Default”

	
 

	
 

	
5.1

	
 

	
“Outstanding”

	
 

	
 

	
2.8

	
 

	
“Paying Agent”

	
 

	
 

	
2.4

	
 

	
“Registrar”

	
 

	
 

	
2.4

	
 

     Section 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT. Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:

     “Commission” means the SEC.

     “Indenture Notes” means the Notes.

     “Indenture Note Holder” means a Holder or Noteholder.

     “Indenture to be Qualified” means this Indenture.

     “Indenture Trustee” or “Institutional Trustee” means the Trustee.

     “Obligor” on the indenture Notes means the Company.

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule have the meanings assigned to them by such definitions.

 

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     Section 1.4 RULES OF CONSTRUCTION. Unless the context otherwise requires:

          (i) a term has the meaning assigned to it;

          (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles in the United States as in effect from time to time;

          (iii) “OR” is not exclusive;

          (iv) “INCLUDING” means including, without limitation; and

          (v) words in the singular include the plural, and words in the plural include the singular.

ARTICLE II

THE NOTES

     Section 2.1 FORMS GENERALLY. The Notes of each series and the certificate of authentication in respect thereof shall be in substantially the form set forth on Exhibit A as shall be established by delivery to the Trustee of a Company Order, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the Officers executing such Notes as evidenced by their execution of the Notes. The Notes shall be in fully registered form only and shall be printed, lithographed, engraved, word processed or evidenced in electronic form or produced by any combination of these methods or may be produced in any other manner, all as determined by the Officers executing such Notes as evidenced by their execution of such Notes.

     

Section 2.2 TITLE, TERMS AND DENOMINATIONS.

     (a) The aggregate Principal Amount of Notes that may be authenticated and delivered under this Indenture shall be unlimited.

     (b) To the extent provided in, and except as otherwise permitted by, this Indenture, (1) the Notes shall be special limited obligations of the Company and (2) no payments of Principal and interest on the Notes of any series shall be payable unless the Company has received  Loan Payments in respect of the  Loan corresponding to such series, and then shall be payable equally and ratably on the Notes of such series only to the extent of the  Loan Net Payments related to the  Loan corresponding to such series.

     (c)  Each series of Notes shall constitute a valid claim of the respective owners thereof against the corresponding Loan, its notes, its mortgage and all other documents which is pledged to secure the payment of principal of, redemption premium, if any, and interest thereon the corresponding Notes and which shall be utilized for no other purpose.

    (d) No Holder of a Note shall have any recourse against the Company unless and then only to the extent that the Company (1) has failed to pay such Holder the Loan Net Payments in respect of the Loan corresponding to such Holder’s Note or (2) has otherwise breached a covenant in this Indenture.

     (e) For each series of Notes there shall be established and, subject to Section 2.3, set forth, or determined in the manner provided, in a Company Order:

          (1) the title of the Notes of the series (which shall distinguish the Notes of the series from all other Notes);

 

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          (2) the limit upon the aggregate Principal Amount of the Notes of the series which may be authenticated and delivered under this Indenture (except for Notes authenticated and delivered upon registration of transfer of Notes of the series pursuant to Sections 2.7 or 8.5);

          (3) the Loan that corresponds to Notes of the series and which secures the Notes in the event of a default under this indenture;

          (4) the Stated Maturity and Payment Dates of the Notes of the series and the Record Date for any amounts payable on any Payment Date;

          (5) the stated rate at which the Notes of the series shall bear interest;

          (6) the place or places where, subject to the provisions of Section 3.5, the Principal of and or interest on Notes of the series shall be payable, any Notes of the series may be surrendered for registration of transfer and notices and demands to or upon the Company in respect of the Notes of the series and this Indenture may be served;

          (7) any restrictions on the transfer or transferability of Notes of the series;

          (8) the obligation, if any, of the Company to redeem Notes of the series at the option of a Holder thereof, the conditions, if any, giving rise to such obligation, and the period or periods within which, the price or prices at which and the terms and conditions upon which Notes of the series shall be purchased, in whole or in part;

          (9) the denominations in which any Notes of the series shall be issuable, if other than denominations of $1,000 and any integral multiple thereof;

          (10) any addition to or change in the Events of Default which apply to any Notes of the series and any change in the right of the Trustee or the requisite Holders of such Notes to declare the principal amount thereof due and payable pursuant to Section 5.2;

          (11) any addition to or change in the covenants set forth in Article III which apply to Notes of the series; and

          (12) any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 8.1(7)).

     All Notes of a series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to a Company Order pursuant to this Section 2.2(c) or in any indenture supplemental hereto.

     (f) Prior to the issuance of the initial series of Notes under this Indenture, a copy of the Chief Executive Officers resolution authorizing the execution, delivery and performance of this Indenture, shall be certified by the Chief Financial Officer or an Assistant Chief Financial Officer of the Company and delivered to the Trustee at or prior to the delivery of an Officers’ Certificate setting forth the general terms of the Notes. Such Officers’ Certificate shall provide general terms for Notes and provide either that the specific terms of each series shall be specified in a Company Order or that such terms shall be determined by the Company, or one or more of the Company’s agents designated in an Officers’ Certificate, in accordance with the Company Order as contemplated by Section 2.3.

      (g) Within 5 days after closing the corresponding Loan for each series of Notes, the Company will provide all closing documents to the Trustee in electronic form including

     (h) Unless otherwise provided as contemplated by Section 2.2(e) with respect to any series of Notes, any Notes of a series shall be issuable in denominations of $1,000 and any integral multiple thereof.

 

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         Section 2.3 EXECUTION, AUTHENTICATION, DELIVERY AND DATING. The Notes shall be executed on behalf of the Company its Chief Executive Officer or the Chief Financial Officer or the Assistant Chief Financial Officer. The signature of any of these officers on the Notes may be electronic, manual or facsimile.

     Notes bearing the electronic, manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Notes or did not hold such offices at the date of such Notes.

     At any time and from time to time after the execution and delivery of this Indenture (and subject to delivery of the  Officers’ Certificate as set forth in Section 2.2 prior to the issuance of the initial series of Notes), the Company may authenticate and deliver Notes of any series and upon such authentication and delivery shall promptly provide a record of all such Notes executed and authenticated by the Company to the Trustee, together with a copy of the Company Order authorizing the authentication and delivery of such Notes;

     In addition, prior to the issuance of the initial series of Notes, the Trustee shall receive, and shall be fully protected in conclusively relying upon, an Opinion of Counsel stating:

     (a) that the forms of such Notes have been, and the terms of such Notes (when established in accordance with such procedures as may be specified from time to time in a Company Order, all as contemplated by and in accordance with a Chief Executive Officer’s Resolution pursuant to Section 2.2(d), as the case may be) will have been, duly authorized by the Company and established in conformity with the provisions of this Indenture;

     (b) that such Notes, when (1) executed by the Company, (2) completed, authenticated and delivered by the Company in accordance with this Indenture, and (3) issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to customary exceptions; and

     (c) that all laws and requirements in respect of the execution and delivery by the Company of such Notes have been complied with.

     The Trustee may conclusively rely, as to the authorization by the Company of any series of Notes, the form and terms thereof and the legality, validity, binding effect and enforceability thereof, upon the Opinion of Counsel and other documents delivered pursuant to Sections 2.1, 2.2(c) and 2.2(d) and this Section, as applicable, at or prior to the time of the first authentication of Notes of the initial series of Notes unless and until it has received written notification that such opinion or other documents have been superseded or revoked. In connection with the authentication and delivery of Notes, the Trustee shall be entitled to assume, unless it has received written notice to the contrary or any of its Trust Officers has actual knowledge to the contrary, that the Company’s authentication and delivery such Notes do not violate any rules, regulations or orders of any governmental agency or commission having jurisdiction over the Company.

     Each Note shall be dated the date of its authentication.

     The Company may appoint an authenticating agent, including itself, acceptable to the Trustee to authenticate Notes. Unless otherwise provided in the appointment, an authenticating agent may authenticate Notes whenever the Company may do so. Each reference in this Indenture to authentication by the Company includes authentication by such agent.

 

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     No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication substantially in the form provided for herein duly executed by the Company by electronic or manual signature of an authorized signatory, and such certificate upon any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. The Company’s certificate of authentication shall be in substantially the following form:

     This is one of the Notes of the series designated therein referred to in the within-mentioned Indenture.

	
 

	
 

	
 

	
 

	
 

	
 

	
KORTH DIRECT MORTGAGE LLC

as Authenticating Agent

  

	 
	
 

	
By:  

	
 

	
 

	
 

	
 

	
Name:  

	
 

	
 

	
 

	
 

	
Title:  

	
 

	
 

     Section 2.4 REGISTRAR AND PAYING AGENT. The Company shall maintain, with respect to each series of Notes, an office or agency where such Notes may be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where such Notes may be presented for purchase or payment (“Paying Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company may have one or more co-registrars and one or more additional paying agents. The term Paying Agent includes any additional paying agent.

     The Company shall enter into an appropriate agency agreement with respect to each series of Notes with any Registrar, Paying Agent or co-registrar. The agreement shall implement the provisions of this Indenture that relate to such agent. The Company shall notify the Trustee of the name and address of any such agent. The Company or any Subsidiary or an Affiliate of either of them may act as Paying Agent, Registrar or co-registrar.

     The Company initially will serve as the Registrar and Paying Agent in connection with such Notes  The Company or its agent shall be solely responsible for making all payments of principal and interest hereunder and the Trustee shall be entitled to rely upon the information of outstanding balances on the Notes and any information provided by the Company on payment of principal and interest without further investigation.  Within thirty (30) days after the end of each fiscal quarter the Paying Agent shall deliver to the Trustee a written report identifying, as of the date of such report, (i) the Principal Amount and accrued interest of each Note, (ii) all Loan Payments received by the Paying Agent, (iii) all Loan Net Payments paid to the Holders, and (iv) and such other information as reasonably requested by the Trustee from time to time in order for the Trustee to determine the Principal Amount and accrued interest of each Note.

 

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     Section 2.5 PAYING AGENT TO HOLD MONEY AND NOTES IN TRUST. Except as otherwise provided herein, prior to or on each due date of payments in respect of any series of Notes, the Company shall deposit with the Paying Agent with respect to such Notes a sum of money sufficient to make such payments when so becoming due. The Company shall require each Paying Agent (other than the Trustee or the Company) to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by such Paying Agent for the making of payments in respect of the Notes of such series and shall notify the Trustee in writing of any default by the Company in making any such payment. At any time during the continuance of any such default, a Paying Agent shall, upon the written request of the Trustee, forthwith pay to the Trustee all money so held in trust with respect to such Notes. If the Company, a Subsidiary or an Affiliate of either of them acts as Paying Agent for a series of Notes, it shall segregate the money held by it as Paying Agent with respect to such Notes and hold it as a separate trust fund. The Company at any time may require a Paying Agent for a series of Notes to pay all money held by it with respect to such Notes to the Trustee and to account for any money disbursed by it. Upon doing so, such Paying Agent shall have no further liability for the money.

     Section 2.6  Securities Depository Provisions. All Initial Notes  shall  be  Book  Entry Notes. All Book Entry Notes shall be registered in the name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). The Company and/or its duly appointed agent acknowledge that they have executed and delivered a Letter of Representations to DTC. All payments of principal of, redemption premium, if any, and interest on the Book Entry Notes and all notices with respect thereto, including notices of full or partial redemption, shall be made and given at the times and in the manner set out in the Letter of Representations. The terms and provisions of the Letter of Representations shall govern in the event of any inconsistency between the provisions of this Indenture and the Letter of Representations. The Letter of Representations may be amended without Noteholder consent.

The book-entry registration system for all of the Book Entry Notes may be terminated and certificates delivered to and registered in the name of the Beneficial Owners, under either of the following circumstances:

(a)          DTC notifies the Company, the Borrower and the Trustee that it is no longer willing or able to act as Notes Depository for the Book Entry Notes and  a successor Notes Depository for the Book Entry Notes is not appointed by the Company at the direction of the Borrower prior to the effective date of such discontinuation; or

(b)          The Borrower [Company] determines that continuation of the book-entry system through DTC (or a successor Notes depository) is not in the best interest of the Borrower [Owners of the Book Entry Notes].

In the event a successor Notes Depository is appointed by the Company, the Book Entry Notes will be registered in the name of such successor Notes Depository or its nominee. In the event certificates are required to be issued to Beneficial Owners, the Trustee, the Borrower and the Company shall be fully protected in relying upon a certificate of DTC or any DTC participant as to the identity of and the principal amount of Book Entry Notes held by such Beneficial Owners.

 

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The Beneficial Owners of Notes   will not receive physical delivery of certificates. For so long as there is a Securities  Depository for Notes, all of such Notes shall be registered in the name of the nominee of the Notes Depository, all transfers of beneficial ownership interests in such Notes will be made in accordance with the rules of the Notes Depository, and no investor or other party purchasing, selling or otherwise transferring beneficial ownership of such Notes is to receive, hold or deliver any certificate. The Company, and the Trustee shall have no responsibility or liability for transfers of beneficial ownership interests in such Notes.

The Company, and the Trustee will recognize the Notes Depository or its nominee as the Noteholder of Book Entry Notes for all purposes, including receipt of payments, notices and voting; provided the Trustee may recognize votes by or on behalf of Beneficial Owners as if such votes were made by Noteholders of a related portion of the Notes when such votes are received in compliance with an omnibus proxy of the Notes Depository or otherwise pursuant to the rules of the Notes Depository or the provisions of the Letter of Representations or other comparable evidence delivered to the Trustee by the Noteholders

With respect to Book Entry Notes, the Company and the Trustee shall be entitled to treat the Person in whose name such Note is registered as the absolute owner of such Note for all purposes of this Indenture, and neither the Company, the Borrower nor the Trustee shall have any responsibility or obligation to any Beneficial Owner of such Book  Entry  Note.  Without limiting the immediately preceding sentence, neither the Company nor the Trustee shall have any responsibility or obligation with respect to (a) the accuracy of the records of any Notes Depository or any other Person with respect to any ownership interest in Book Entry Notes, (b) the delivery to any Person, other than a Noteholder, of any notice with respect to Book Entry Notes, including any notice of redemption or refunding, (c) the selection of the particular Notes or portions thereof to be redeemed or refunded in the event of a partial redemption or refunding of part of the Notes Outstanding or (d) the payment to any Person, other than a Noteholder, of any amount with respect to the principal of, redemption premium, if any, or interest on Book Entry Notes.

  

     Section 2.8 OUTSTANDING NOTES; DETERMINATIONS OF HOLDERS’ ACTION. Notes of any series “Outstanding” at any time are, as of the date of determination, all the Notes of such series theretofore authenticated by the Company for such series except for those cancelled by it, those delivered to it for cancellation and those described in this Section 2.8 as not outstanding. A Note does not cease to be “Outstanding” because the Company or an Affiliate thereof is the Holder of the Note; PROVIDED, HOWEVER, that in determining whether the Holders of the requisite Principal Amount of Outstanding Notes have given or concurred in any request, demand, authorization, direction, notice, consent or waiver hereunder, Notes owned by the Company or any Affiliate of the Company shall be disregarded and deemed not to be outstanding, except that, in determining whether the Trustee shall be protected in conclusively relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which a Trust Officer of the Trustee actually knows to be so owned shall be so disregarded. Notes so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Company or any

 

Affiliate of the Company. Subject to the foregoing, only Notes outstanding at the time of such determination shall be considered in any such determination.

 

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     If the Paying Agent (other than the Company) holds, in accordance with this Indenture, on the final Stated Maturity, money sufficient to pay Notes payable on that date in full, then on and after that date such Notes shall cease to be Outstanding.

     Section 2.9 CANCELLATION. All Notes surrendered for payment, or registration of transfer, shall, if surrendered to any person other than the Company, be delivered to the Company and all Notes so delivered shall be promptly cancelled by it. The Company may at any time cancel any Notes previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever and may cancel any Notes previously authenticated hereunder that the Company has not issued and sold. The Company may not reissue, or issue new Notes to replace, Notes it has cancelled.

     No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section, except as expressly permitted in the form of Notes for any particular series or as permitted by this Indenture.

     Section 2.10 PAYMENTS. Payment of Principal and interest on any Note which is payable, and is punctually paid or duly provided for, on any Payment Date shall be paid to the person in whose name that Note is registered at the close of business on the Record Date for such Payment Date.

     Any payments on any Note of any series which is payable, but is not punctually paid or duly provided for, on any Payment Date (herein called “Defaulted Payment”) shall forthwith cease to be payable to the Holder on the relevant Record Date, and such Defaulted Payment may be paid by the Company to the Holder of the Note on a record date chosen by the Company and in any lawful manner, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this Clause, such manner of payment shall be deemed practicable by the Trustee.

     Subject to the foregoing provisions of this Section and Section 2.7, each Note delivered under this Indenture upon registration of transfer of any other Note shall carry the rights to payments, which were carried by such other Note.  Except as otherwise set forth herein, the Trustee shall have no duties with regards to payments of the Notes.

     Section 2.11 PERSONS DEEMED OWNERS. Prior to due presentment of a Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name such Note is registered as the owner of such Note for the purpose of receiving payment of Principal of and interest on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

 

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     Section 2.12 CUSIP NUMBERS. The Company in issuing the Notes may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the

 Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee in writing of any change in the “CUSIP” numbers.

ARTICLE III

COVENANTS

     Section 3.1 PAYMENT OF NOTES. The Company shall promptly make all payments in respect of each series of Notes in lawful money of the United States on the dates and in the manner provided in the Notes but solely from the sources provided pursuant to Section 2.2(b) and, to the extent not otherwise so provided, pursuant to this Indenture. The Company shall have no liability or obligation with respect to the payment of the purchase price of any Notes except to the extent of the Loan Net Payments in respect of the  Loan corresponding to such series. At the Company’s option, payments of Principal or interest may be made by check or by transfer to an account maintained by the payee.

     Section 3.2 SEC REPORTS. The Company shall file with the Trustee, within 15 days after it files such annual and quarterly reports, information, documents and other reports with the SEC, copies of its annual report and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a).

     Section 3.3 COMPLIANCE CERTIFICATE; STATEMENT BY OFFICERS AS TO DEFAULT. The Company shall deliver to the Trustee within 120 days after the end of each fiscal year (beginning with the fiscal year ending on March 31, 2017[?]) an Officers’ Certificate, one of the signers of which shall be the principal executive officer, principal financial officer or principal accounting officer of the Company, stating whether or not the signers know of any Default that occurred during such period. If they do, such Officers’ Certificate shall describe the Default and its status.

     The Company shall deliver to the Trustee, as soon as possible and in any event within five days after the Company becomes aware of the occurrence of any Event of Default or an event which, with notice or the lapse of time or both, would constitute an Event of Default, an Officers’ Certificate setting forth the details of such Event of Default or default and the action which the Company proposes to take with respect thereto.  Until such time as the Trustee receives in writing a report of any Event of Default the Trustee shall not be deemed to have notice of such.

 

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     Section 3.4 FURTHER INSTRUMENTS AND ACTS. Upon request of the Trustee, the Company will execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purposes of this Indenture.

     Section 3.5 MAINTENANCE OF OFFICE OR AGENCY. The Company will maintain in each Place of Payment for such series an office or agency where Notes of that series may be presented or surrendered for payment, where Notes of that series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Notes of that series and this Indenture may be served. The office of the Company at 440 North Wolfe Road, Sunnyvale, California 94085 shall be such office or agency for all of the aforesaid purposes unless the Company shall maintain some other office or agency for such purposes and shall give prompt written notice to the Trustee of the location, and any change in the location, of such other office or agency.

     The Company may also from time to time designate one or more other offices or agencies where the Notes of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; PROVIDED, HOWEVER, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in accordance with the requirements set forth above for Notes of any series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

     Section 3.6  LOAN SERVICING.

     (a) With respect to each series of Notes, the Company shall use commercially reasonable efforts to service and collect the  Loan corresponding to such series, in good faith, accurately and in accordance with industry standards customary for servicing loans such as the  Loans. Notwithstanding the generality of the foregoing, (1) referral of a delinquent  Loan to a collection attorney on the 31st day of its delinquency shall be deemed to constitute commercially reasonable servicing and collection efforts; and (2) the Company shall have the right, at any time and from time to time, to amend or waive any term of such  Loan if it deems such actions to be in the best interest of the corresponding Note holders. Should such amendment or waiver occur a letter signed by the Chief Executive Officer shall be delivered to the Trustee with a description of the reasons for taking such action.  The Trustee shall have no duty prior to an Event of Default hereunder to pursue any actions or remedies with regards to the Loans and payments thereon.

     (b) With respect to each series of Notes, the Company shall use commercially reasonable efforts to maintain backup servicing arrangements providing for the Loan corresponding to such series to be serviced and collected in good faith, accurately and in accordance with industry standards customary for servicing loans such as the Loans.  The Company shall promptly notify the Trustee in writing of any appointment or replacement of a third-party servicer of a Loan not identified in a Company Order.

 

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ARTICLE IV

SUCCESSOR CORPORATION

     Section 4.1 WHEN COMPANY MAY MERGE OR TRANSFER ASSETS. The Company shall not consolidate with or merge with or into any other person or convey, transfer or lease its properties and assets substantially as an entirety to any person, unless:

     (a) either (1) the Company shall be the continuing corporation or (2) the person (if other than the Company) formed by such consolidation or into which the Company is merged or the person which acquires by conveyance, transfer or lease the properties and assets of the Company substantially as an entirety (i) shall be a corporation, limited liability company, partnership or trust organized and validly existing under the laws of the United States or any state thereof or the District of Columbia and (ii) shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the Company under the Notes and this Indenture;

     (b) immediately after giving effect to such transaction, no Default shall have occurred and be continuing; and

     (c) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture, comply with this Article and that all conditions precedent herein provided for relating to such transaction have been satisfied.

     The successor person formed by such consolidation or into which the Company is merged or the successor person to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of the Company under this Indenture with the same effect as if such successor had been named as the Company herein; and thereafter, except in the case of a lease of its properties and assets substantially as an entirety, the Company shall be discharged from all obligations and covenants under this Indenture, and the Notes.

ARTICLE V

DEFAULTS AND REMEDIES

     Section 5.1 EVENTS OF DEFAULT. Unless otherwise specified as contemplated by Section 2.2(c) with respect to any series of Notes, an “Event of Default” occurs, with respect to each series of the Notes individually, if:

          (1) the Company defaults, subject in each case, to the limitations set forth in Sections 2.2(b) and 3.1 and in the Notes in the payment of any Principal of, or interest upon, any Note of such series when the same becomes due and payable and continuance of such default for a period of 30 days after receipt by the Company of a Notice of Default from the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of all Series for which such Default exists;

          (2) the Company fails to comply with any of its agreements in the Notes or this Indenture (other than those referred to in clause (1) above and other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has been expressly included in this Indenture solely for the benefit of a series of Notes other than such series) and such failure continues for 90 days after receipt by the Company of a Notice of Default PROVIDED, HOWEVER, that if the Company shall proceed to take curative action which, if begun and prosecuted with due diligence, cannot be completed within a period of 90 days then such period shall be increased to such extent as shall be necessary to enable the Company diligently to complete such curative action. A Default under this clause is not an Event of Default until the Trustee notifies the Company, or the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of all Series for which such Default exists, notify the Company and the Trustee, of the Default and the Company does not cure such Default within the time specified after receipt of such notice;

 

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          (3) there shall have been the entry by a court of competent jurisdiction of (a) a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Bankruptcy Law or (b) a decree or order adjudging the Company bankrupt or insolvent, or seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal or state law, or appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the wind up or liquidation of its affairs, and any such decree or order for relief shall continue to be in effect, or any such other decree or order shall be unstayed and in effect, for a period of 60 consecutive days;

          (4) (a) the Company commences a voluntary case or proceeding under any applicable Bankruptcy Law or any other case or proceeding to be adjudicated bankrupt or insolvent, (b) the Company consents to the entry of a decree or order for relief in respect of the Company in an involuntary case or proceeding under any applicable Bankruptcy Law or to the commencement of any bankruptcy or insolvency case or proceeding against it, (c) the Company files a petition or answer or consent seeking reorganization or substantially comparable relief under any applicable federal state law, (d) the Company (x) consents to the filing of such petition or the appointment of, or taking possession by, a custodian, receiver, liquidator, assignee, trustee, sequestrator or similar official of the Company or of any substantial part of its property, (y) makes an assignment for the benefit of creditors or (z) admits in writing its inability to pay its debts generally as they become due or (e) the Company takes any corporate action in furtherance of any such actions in this clause (4); or

          (5) any other Event of Default provided with respect to Notes of that series.

     “Bankruptcy Law” means Title 11, United States Code, or any similar federal or state law for the relief of debtors. “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.

     A Default under clause (2) above is not an Event of Default until the Trustee notifies the Company, or the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of all series for which such Default exists notify the Company and the Trustee, of the Default and the Company does not cure such Default within the time specified in clause (2) above after receipt of such notice. Any such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default.”  Notwithstanding anything herein to the contrary, the Trustee shall not be charged with knowledge of any default or Event of Default with respect to the Notes of any Series for which it is acting as Trustee unless written notice of such default or Event of Default (which shall state that such notice is a “Notice of Default” or a “Notice of an Event of Default” hereunder, as the case may be) shall have been given to a Responsible Officer of the Trustee by the Company, or by the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of all Series for which such Default exists.

 

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     Section 5.2 ACCELERATION. If an Event of Default specified in Section 5.1(3) or (4) occurs and is continuing, the Principal (or portion thereof) of all the Notes shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Noteholders, notwithstanding the second sentence of Section 3.1 hereof and without respect to whether there are or will be  Loan Net Payments in respect of the  Loans corresponding to the Notes. The Holders of a majority in aggregate Principal Amount of all Outstanding Notes, by notice to the Trustee (and without notice to any other Noteholder) may rescind an acceleration and its consequences if (i) the rescission would not conflict with any judgment or decree, and (ii) all Events of Default specified in Section 5.1(3) or (4) have been cured or waived. No such rescission shall affect any subsequent Default or impair any right consequent thereto. For avoidance of doubt, there shall be no acceleration of the Principal (or portion thereof) of any Notes upon the occurrence of and Event of Default other than an Event of Default specified in Section 5.1(3) or (4).

     Section 5.3 OTHER REMEDIES. If an Event of Default with respect to a series of Outstanding Notes occurs and is continuing, the Trustee may pursue any available remedy to (a) collect the payment of the whole amount then due and payable on such Notes for Principal and interest, with interest upon the overdue Principal and, to the extent that payment of such interest shall be legally enforceable, upon overdue installments of interest from the date such interest was due, at the rate or rates prescribed therefor in such Notes and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including amounts due the Trustee under Section 6.7 or (b) enforce the performance of any provision of the Notes or this Indenture.

     The Trustee may maintain a proceeding even if the Trustee does not possess any of the Notes or does not produce any of the Notes in the proceeding. A delay or omission by the Trustee or any Noteholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of, or acquiescence in, the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative. Pursuit of remedies by the Trustee shall be subject to the restrictions and protections by the Holders pursuant to this Indenture.

     Section 5.4 WAIVER OF PAST DEFAULTS. The Holders of a majority in aggregate Principal Amount of the Outstanding Notes of any series, by written notice to the Trustee (and without notice to any other Noteholder), may on behalf of the Holders of all the Notes of such series waive an existing Default with respect to such series and its consequences except (1) an Event of Default described in Section 5.1(1) with respect to such series or (2) a Default in respect of a provision that under Section 8.2 cannot be amended without the consent of the Holder of each Outstanding Note of such series affected. When a Default is waived, it is deemed cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right.

 

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     Section 5.5 CONTROL BY MAJORITY. If an Event of Default shall have occurred and be continuing with respect to any Series of Notes, the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of such Series for which a Default exists may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee with respect to the Notes. If the Series of Notes includes more than one Class, the Holders of Notes of all Classes shall vote together, without distinction among the Classes.  Such direction shall not be in conflict with any rule of law or with this Indenture, and could not involve the Trustee in personal liability in circumstances where indemnity would not in the Trustee’s reasonable discretion be adequate.  Before proceeding to exercise any right or power hereunder at the direction of such Holders, the Trustee shall be entitled to receive from such Holders reasonable security or indemnity, against the costs, expenses and liabilities which might be incurred by it in compliance with any such direction.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture or that the Trustee determines in good faith is unduly prejudicial to the rights of other Noteholders or would involve the Trustee in personal liability.

     Section 5.6 LIMITATION ON SUITS. A Holder of any Note of any series may not pursue any remedy with respect to this Indenture or the Notes unless:

          (1) the Holder gives to the Trustee written notice stating that an Event of Default with respect to the Notes of that series is continuing;

          (2) the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of that series make a written request to the Trustee to pursue the remedy;

          (3) such Holder or Holders offer to the Trustee Note or indemnity satisfactory to it against any loss, liability or expense satisfactory to the Trustee;

          (4) the Trustee does not comply with the request within 60 days after receipt of the notice, the request and the offer of Note or indemnity; and

          (5) the Holders of a majority in aggregate Principal Amount of the Outstanding Notes of that series do not give the Trustee a direction inconsistent with such request during such 60-day period.

     A Noteholder may not use this Indenture to prejudice the rights of any other Noteholder or to obtain a preference or priority over any other Noteholder (it being understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances are unduly prejudicial to such Holders).

     

Section 5.7 RIGHTS OF HOLDERS TO RECEIVE PAYMENT. Notwithstanding any other provision of this Indenture, the right, which is absolute and unconditional, of any Holder of any Note to receive payment of the Principal of and (subject to Section 2.10) interest on such Note on the Stated Maturity or Maturities expressed in such Note held by such Holder, on or after the respective due dates expressed in the Notes, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected adversely without the consent of each such Holder.

     Section 5.8 COLLECTION SUIT BY TRUSTEE. If an Event of Default described in Section 5.1(1) with respect to Notes of any series occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount owing with respect to such series of Notes and the amounts provided for in Section 6.7.

 

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     Section 5.9 TRUSTEE MAY FILE PROOFS OF CLAIM. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Notes or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the Principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue Principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

     (a) to file and prove a claim for the whole amount of Principal and interest owing and unpaid in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and any other amount due the Trustee under Section 6.7) and of the Holders of Notes allowed in such judicial proceeding,

     (b) to terminate the Company’s rights to service the  Loans and require the substitution of a backup servicer in place of the Company, and

     (c) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or similar official in any such judicial proceeding is hereby authorized by each Holder of Notes to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders of Notes, to pay the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.7.

     Nothing herein contained shall be deemed to authorize the Trustee or the holders of Notes to authorize or consent to or accept or adopt on behalf of any Holder of a Note any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder of a Note in any such proceeding.

     Section 5.10 PRIORITIES. If the Trustee collects any money pursuant to this Article V, it shall pay out the money in the following order and, in case of the distribution of such money on account of Principal or interest, upon presentation of the Notes, or both, as the case may be, and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

     FIRST: to the Trustee for amounts due under Section 6.7;

     SECOND: to Noteholders for amounts due and unpaid for the Principal and interest on the Notes in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Notes for Principal and interest, respectively; and

     THIRD: the balance, if any, to the Company.

     The Trustee may fix a record date and payment date for any payment to Noteholders pursuant to this Section 5.10. At least 15 days before such record date, the Company shall mail or electronically transmit to each Noteholder and the Trustee a notice that states the record date, the payment date and amount to be paid.

 

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     Section 5.11 UNDERTAKING FOR COSTS. In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant (other than the Trustee) in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 5.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 5.7 or a suit by Holders of more than 10% in aggregate Principal Amount of the Outstanding Notes of any series, or to any suit instituted by any Holder of any Note or coupon for the enforcement of the payment of the Principal of or interest on any Note or the payment of any coupon on or after the Stated Maturity or Maturities expressed in such Note.

     Section 5.12 WAIVER OF STAY, EXTENSION OR USURY LAWS. The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury or other law wherever enacted, now or at any time hereafter in force,which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.

ARTICLE VI

TRUSTEE

     Section 6.1 DUTIES OF TRUSTEE.

     (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in its exercise as a prudent person would exercise or use under the circumstances in the conduct of his or her own affairs.

     (b) Except during the continuance of an Event of Default with respect to Notes of any series:

          (1) the Trustee need perform only those duties that are specifically set forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

          (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

     (c) The Trustee may not be relieved from liability for its own gross negligent action, its own gross negligent failure to act or its own willful misconduct, except that:

 

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          (1) this paragraph (c) does not limit the effect of paragraph (b) of this Section 6.1;

          (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer unless it is proved that the Trustee was grossly negligent in ascertaining the pertinent facts; and

          (3) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 5.5 or exercising any trust or power conferred upon the Trustee under this Indenture.

     (d) Every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), (c) and (e) of this Section 6.1.

     (e)No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of its duties and the Trustee may refuse to perform any duty or exercise any right or power or extend or risk its own funds or otherwise incur any financial liability unless it receives indemnity satisfactory to it against any loss, liability or expense.

     (f) Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall not be liable for any interest on any money received by it except as the Trustee may otherwise agree in writing with the Company.  Notwithstanding anything contained in this Indenture to the contrary, the duties and responsibilities of the Trustee under this Indenture shall be subject to the protections, exculpations and limitations on liability afforded to a Trustee under the provisions of the Trust Indenture Act of 1939 as in effect as of the date of this Indenture.

     Section 6.2 RIGHTS OF TRUSTEE.

     (a) The Trustee may conclusively rely on any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel.

     (c) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

     (d) The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any resolution, Officers’ Certificate, Opinion of Counsel (or both), Company Order or any other certificate, statement, instrument, opinion, report, notice, request, consent, order, bond, debenture, note, coupon, Note or other paper believed to be genuine and to have been signed or presented by the proper party or parties.

     (e) Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an Officers’ Certificate (unless other evidence in respect thereof be herein specifically prescribed); and any resolution of the Board of Directors may be evidenced to the Trustee by a copy thereof certified by the secretary or an assistant secretary of the Company.

     (f) The Trustee may consult with counsel of its selection and any advice or Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by it hereunder in good faith and in reliance thereon in accordance with such advice or Opinion of Counsel.

 

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     (g) The Trustee shall be under no obligation to exercise any of the trusts or powers vested in it by this Indenture at the request, order or direction of any of the Noteholders pursuant to the provisions of this Indenture, unless such Noteholders shall have offered to the Trustee Note or indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred therein or thereby.

     (h) Prior to the occurrence of an Event of Default hereunder and after the curing or waiving of all Events of Default, the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, appraisal, bond, debenture, note, Note or other paper or document unless requested in writing to do so by the Holders of not less than a majority in the aggregate principal amount of the Notes of such series then Outstanding; PROVIDED, that, if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of any such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the Note afforded to it by the terms of this Indenture, the Trustee may require indemnity satisfactory to it against such expense or liabilities as a condition to proceeding; the reasonable expense of every such investigation shall be paid by the Company or, if paid by the Trustee or any predecessor trustee, shall be repaid by the Company upon demand.

     (i) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys not regularly in its employ and the Trustee shall not be responsible for any misconduct or negligence on the part of any such agent or attorney appointed with due care by it hereunder.

     (j) The Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.

     (k) In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

     (l) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Trust Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the designated corporate trust office of the Trustee, and such notice references the Notes and this Indenture and is given by the Company or by Holders of a at least a majoirty in aggregate Principal Amount of the Outstanding Notes of a Series for which such Default exists..

     (m) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

     (n) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

 

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     (o) The Trustee may request that the Company deliver a certificate setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

     Section 6.3 INDIVIDUAL RIGHTS OF TRUSTEE, ETC. The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not Trustee. Any Paying Agent, Authenticating Agent, Registrar or co-registrar or any other agent of the Company may do the same with like rights. However, the Trustee must comply with Sections 6.10 and 6.11.

     

Section 6.4 TRUSTEE’S DISCLAIMER. The recitals contained herein and in the Notes shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Notes. The Trustee shall not be accountable for the Company’s use of the proceeds from the Notes and, shall not be responsible for any statement in the registration statement for the Notes under the Notes Act of 1933, as amended, or in the Indenture or the Notes or for the determination as to which beneficial owners are entitled to receive any notices hereunder.

     Section 6.5 NOTICE OF DEFAULTS. If a Default with respect to the Notes of any series occurs and is continuing and if it is known to the Trustee, the Trustee shall give to each Holder of Notes of such series notice of such Default in the manner set forth in TIA Section 315(b) within 90 days after it occurs. Except in the case of a Default described in Section 5.1(1) with respect to any Note of such series or a Default in the payment of any sinking fund installment with respect to any Note of such series, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of the Holders of Notes of such series.

     Section 6.6 REPORTS BY TRUSTEE TO HOLDERS. If required by Section 313(a) of the TIA, within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, the Trustee shall mail or transmit electronically to each Holder of Notes a brief report dated as of such May 15 that complies with TIA Section 313(a). The Trustee also shall comply with TIA Section 313(b) and (c). A copy of each report at the time of its mailing or transmission to Holders of Notes shall be filed with the SEC.

     Section 6.7 COMPENSATION AND INDEMNITY. The Company agrees:

     (a) to pay to the Trustee from time to time such compensation as shall be agreed in writing between the Company and the Trustee for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

     (b) to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation for extraordinary services by the Trustee including hourly costs for time rendered in connection with an Event of Default, and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its gross negligence or willful misconduct; and

 

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     (c) to fully indemnify the Trustee for, and to hold it harmless against, any and all loss, liability, damage, claim or expense incurred without negligence or willful misconduct on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against any claim (whether asserted by the Company, a Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder(including the reasonable costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, demand, claim, liability, cause of action or expense may be attributable to its own gross negligence, willful misconduct or bad faith)  .

     To secure the Company’s payment obligations in this Section 6.7, the Trustee shall have a lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay the Principal of or interest, if any, on particular Notes.

     The Company’s obligations pursuant to this Section 6.7 shall survive the discharge or other termination of this Indenture or the resignation or removal of the Trustee. When the Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(3) or (4), the expenses are intended to constitute expenses of administration under any Bankruptcy Law.

     Section 6.8 REPLACEMENT OF TRUSTEE. The Trustee may resign by so notifying the Company; PROVIDED, HOWEVER, no such resignation shall be effective until a successor Trustee has accepted its appointment pursuant to this Section 6.8. The Holders of a majority in aggregate Principal Amount of the Outstanding Notes at the time outstanding may remove the Trustee with respect to the Notes by so notifying the Trustee and may appoint a successor Trustee, which successor Trustee shall, in the absence of an Event of Default, be reasonably acceptable to the Company. The Company shall remove the Trustee if:

          (1) the Trustee fails to comply with Section 6.10;

          (2) the Trustee is adjudged bankrupt or insolvent;

          (3) a receiver or public officer takes charge of the Trustee or its property; or

          (4) the Trustee otherwise becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, with respect to the Notes of one or more series, the Company shall promptly appoint, by resolution of its Board of Directors, a successor Trustee with respect to the Notes of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Notes of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Notes of any series).

     In the case of the appointment hereunder of a successor Trustee with respect to all Notes, every such successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee shall become effective and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The successor Trustee shall mail or electronically transmit a notice of its succession to Holders of Notes of the particular series with respect to which such successor Trustee has been appointed. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 6.7.

 

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     In case of the appointment hereunder of a successor Trustee with respect to the Notes of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Notes of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Notes of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Notes, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Notes of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees as co-Trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Notes of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Notes of that or those series to which the appointment of such successor Trustee relates, subject, nevertheless, to its lien, if any, provided for in Section 6.7.

     If a successor Trustee with respect to the Notes of any series does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of a majority in aggregate Principal Amount of the Outstanding Notes of such series at the time outstanding may petition, at the expense of the Company, any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Notes of such series.

     If the Trustee fails to comply with Section 6.10, any Holder of a Note of such series may petition any court of competent jurisdiction for the removal of such Trustee and the appointment of a successor Trustee.

     Section 6.9 SUCCESSOR TRUSTEE BY MERGER. If the Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another corporation, the resulting, surviving or transferee corporation without any further act shall be the successor Trustee.

 

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     Section 6.10 ELIGIBILITY; DISQUALIFICATION. The Trustee shall at all times satisfy the requirements of TIA Section 310(a)(1) and 310(a)(5). The Trustee shall have a combined capital and surplus of at least $50,000,000.00 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b), including the optional provision permitted by the second sentence of TIA Section 310(b)(9). In determining whether the Trustee has conflicting interests as defined in TIA Section 310(b)(1), the provisions contained in the proviso to TIA Section 310(b)(1) shall be deemed incorporated herein.

     Section 6.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY. The Trustee shall comply with TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein.

ARTICLE VII

SATISFACTION AND DISCHARGE

     Section 7.1 DISCHARGE OF LIABILITY ON NOTES. This Indenture shall upon Company Request cease to be of further effect as to all Outstanding Notes or all Outstanding Notes of any series, as the case may be (except as to any surviving rights of registration of transfer of Notes herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when:

     (a) either

          (1) all Outstanding Notes or all Outstanding Notes of any series, as the case may be, theretofore authenticated and delivered, (other than Notes or Notes of such series, as the case may be, for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 7.2) have been delivered to the Company or the Trustee for cancellation; or

          (2) all such Notes not theretofore delivered to the Company or the Trustee for cancellation,

               (i) have become due and payable, or

               (ii) will become due and payable at their Stated Maturity within one year;

and the Company, in the case of (i) or (ii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose, an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee or the Company for cancellation, for principal and any interest to the date of such deposit (in the case of Notes which have become due and payable) or to the Stated Maturity, as the case may be;

     (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

     (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.  The Trustee shall join in the execution of a document prepared by the Company acknowledging satisfaction and discharge of this Indenture on demand of the Company accompanied by an Officers’ Certificate and Opinion of Counsel and at the cost and expense of the Company.

 

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     Notwithstanding the satisfaction and discharge of this Indenture with respect to the Notes of any series, the obligations of the Company to the Trustee with respect to the Notes of that series under Section 6.7, the obligations of the Company to any Authenticating Agent and, if money shall have been deposited with the Trustee pursuant to clause (b) of this Section, Section 7.2 shall survive. The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of Outstanding Notes.

     Section 7.2 REPAYMENT TO THE COMPANY. The Trustee and the Paying Agent shall return to the Company on Company Request any money held by them for the payment of any amount with respect to the Notes that remains unclaimed for two years. After return to the Company, Holders entitled to the money must look to the Company for payment as general creditors with limited recourse as described herein and in the Notes unless an applicable abandoned property law designates another person.

ARTICLE VIII

SUPPLEMENTAL INDENTURES

     Section 8.1 SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS. Without the consent of any Holders of Notes, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

          (1) to evidence the succession of another corporation to the Company and the assumption by any such successor of the covenants of the Company herein and in the Notes; or

          (2) to add to the covenants, agreements and obligations of the Company for the benefit of the Holders of all of the Notes or any series thereof, or to surrender any right or power herein conferred upon the Company; or

          (3) to establish the form or terms of Notes of any series as permitted by Sections 2.1 and 2.2(c), respectively; or

          (4) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Notes of one or more series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.8; or

          (5) to cure any ambiguity, defect or inconsistency;

          (6) to amend restrictions on transferability of any Notes on any series in any manner that does not adversely affect the rights of any Noteholder in any material respect; or

          (7) to add to, change or eliminate any of the provisions of this Indenture (which addition, change or elimination may apply to one or more series of Notes), PROVIDED that any such addition, change or elimination shall neither (A) apply to any Note of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (B) modify the rights of the Holder of any such Note with respect to such provision; or

          (8) to  additionally secure the Notes; or

          (9) to make any other change that does not adversely affect the rights of any Noteholder in any material respect.

 

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     Section 8.2 SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS. With the written consent of the Holders of at least a majority in aggregate Principal Amount of the Outstanding Notes of each series affected by such supplemental indenture, the Company and the Trustee may amend this Indenture or the Notes of any series or may enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of the Notes of such series and under this Indenture; PROVIDED, HOWEVER, that no such amendment or supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby:

          (1) change the Stated Maturity of the Principal of, or any installment of Principal or interest on, any such Note, or reduce the Principal Amount thereof or the rate of interest thereon that would be due and payable upon a declaration of acceleration of maturity thereof pursuant to Section 5.2, or change the Place of Payment where, or change the coin or currency in which, any installment of principal of or interest on, any such Note is payable, or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof;

          (2) reduce the percentage in Principal Amount of the Outstanding Notes of any series, the consent of whose Holders is required for any such amendment or supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences) with respect to the Notes of such series provided for in this Indenture; or

          (3) modify any of the provisions of this Section, Section 5.4 (clauses (1) and (2)) or 5.7, except to increase the percentage of Outstanding Notes of such series required for such actions to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby.

     A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Notes, or which modifies the rights of the Holders of Notes of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Notes of any other series.

     It shall not be necessary for the consent of the Holders under this Section 8.2 to approve the particular form of any proposed amendment or supplemental indenture, but it shall be sufficient if such consent approves the substance thereof.

     After an amendment or supplemental indenture under this Section 8.2 becomes effective, the Company shall mail or electronically transmit to each Holder of the particular Notes affected thereby a notice briefly describing the amendment.

     Section 8.3 COMPLIANCE WITH TRUST INDENTURE ACT. Every supplemental indenture executed pursuant to this Article shall comply with the TIA as then in effect.

     Section 8.4 REVOCATION AND EFFECT OF CONSENTS, WAIVERS AND ACTIONS. Until an amendment or waiver with respect to a series of Notes becomes effective, a consent to it or any other action by a Holder of a Note of that series hereunder is a continuing consent by the Holder and every subsequent Holder of that Note or portion of that Note that evidences the same obligation as the consenting Holder’s Note, even if notation of the consent, waiver or action is not made on the Note. However, any such Holder or subsequent Holder may revoke the consent, waiver or action as to such Holder’s Note or portion of the Note if the Trustee receives the notice of revocation before the Company or an agent of the Company certifies to the Trustee that the consent of the requisite aggregate Principal Amount of the Notes of that series has been obtained. After an amendment, waiver or action becomes effective, it shall bind every Holder of Notes of that series.

 

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     The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment or waiver with respect to a series of Notes. If a record date is fixed, then notwithstanding the first two sentences of the immediately preceding paragraph, those persons who were Holders of Notes of that series at such record date (or their duly designated proxies), and only those persons, shall be entitled to revoke any consent previously given, whether or not such persons continue to be Holders after such record date. No such consent shall be valid or effective for more than 90 days after such record date.

     Section 8.5 NOTATION ON OR EXCHANGE OF NOTES. Notes of any series authenticated and delivered after the execution of any supplemental indenture with respect to such series pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Notes of such series so modified as to conform, in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be prepared ,executed, authenticated and delivered by the Company in exchange for outstanding Notes of that series.

     Section 8.6 TRUSTEE TO SIGN SUPPLEMENTAL INDENTURES. The Trustee may but shall not be obligated to sign any supplemental indenture authorized pursuant to this Article VIII if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. In signing such amendment, the Trustee shall receive, and shall be fully protected in conclusively relying upon, an Officers’ Certificate and an Opinion of Counsel stating that such amendment is authorized or permitted by this Indenture.

   

  Section 8.7 EFFECT OF SUPPLEMENTAL INDENTURES. Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Notes theretofore or thereafter authenticated and delivered hereunder shall be bound thereby, except to the extent otherwise set forth thereon.

ARTICLE IX

MISCELLANEOUS

     Section 9.1 TRUST INDENTURE ACT CONTROLS. If any provision of this Indenture limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by the TIA, the required provision shall control.

     Section 9.2 NOTICES. Any notice or communication shall be in writing and delivered in person, mailed by first-class mail, postage prepaid or transmitted electronically to any Holder at the registered address maintained in the Company’s records; PROVIDED, that any notice or communication by and among the Trustee and the Company may be made by telecopy and shall be effective upon receipt thereof and shall be confirmed in writing, mailed by first-class mail, postage prepaid, and addressed as follows:

 

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if to the Company:

Korth Direct Mortgage LLC

2937 SW 27th Avenue Ste. 307

Miami, Florida 33133

Email: info@jwkorth.com

if to the Trustee:

Delaware Trust Company

Attention:  Corporate Trust Administration

2711 Centerville Road

Wilmington, DE 19808

Email:  trust@delawaretrust.com

     The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

     Any notice or communication given to a Holder of Notes shall be transmitted electronically to or mailed to such Noteholder at the Noteholder’s address as it appears on the registration books of the Registrar and shall be sufficiently given if so mailed within the time prescribed.  The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing by the person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

     Failure to electronically transmit or mail a notice or communication to a Noteholder or any defect in it shall not affect its sufficiency with respect to other Holders of Notes of the same series. If a notice or communication is electronically transmitted or mailed in the manner provided above, it is duly given, whether or not received by the addressee.

     If the Company electronically transmits or mails a notice or communication to the Holders of Notes of a particular series, it shall electronically transmit or mail a copy to the Trustee and each Registrar, co-registrar or Paying Agent, as the case may be, with respect to such series.

     In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give notice to Holders of Notes as set forth above, then such notification as shall be made with the acceptance of the Trustee shall constitute a sufficient notification for every purpose hereunder. In any case where notice to Holders of Notes is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a Note shall affect the sufficiency of such notice with respect to other Holders of Notes.

 

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     Section 9.3 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS. Noteholders may communicate pursuant to TIA Section 312(b) with other Noteholders with respect to their rights under this Indenture or the Notes. The Company and the Trustee, the Registrar or the Paying Agent with respect to a particular series of Notes, and anyone else, shall have the protection of TIA Section 312(c).

Section 9.4 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT. Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

          (1) an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

          (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

     

Section 9.5 FORM OF DOCUMENTS DELIVERED TO TRUSTEE. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

     Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

     Section 9.6 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION. Each Officers’ Certificate or Opinion of Counsel with respect to compliance with a covenant or condition provided for in this Indenture shall include:

          (1) statement that each person making such Officers’ Certificate or Opinion of Counsel has read such covenant or condition;

          (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such Officers’ Certificate or Opinion of Counsel are based;

          (3) a statement that, in the opinion of each such person, he has made such examination or investigation as is necessary to enable such person to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

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          (4) a statement that, in the opinion of such person, such covenant or condition has been complied with.

     Section 9.7 SEPARABILITY CLAUSE. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

     Section 9.8 RULES BY TRUSTEE, PAYING AGENT AND REGISTRAR. With respect to the Notes of a particular series, the Trustee with respect to such series of Notes may make reasonable rules for action by or a meeting of Holders of such series of Notes. With respect to the Notes of a particular series, the Registrar and the Paying Agent with respect to such series of Notes may make reasonable rules for their functions.

     Section 9.9 LEGAL HOLIDAYS. A “Legal Holiday” is any day other than a Business Day. If any specified date (including an Interest Payment Date or Stated Maturity of any Note, or a date for giving notice) is a Legal Holiday at any Place of Payment or place for giving notice, then (notwithstanding any other provision of this Indenture or of the Notes other than a provision in the Notes of any series which specifically states that such provision shall apply in lieu of this Section) payment of interest or Principal need not be made at such Place of Payment, or such other action need not be taken, on such date, but the action shall be taken on the next succeeding day that is not a Legal Holiday at such Place of Payment with the same force and effect as if made on the Interest Payment Date, or at the Stated Maturity or such other date.

     Section 9.10 GOVERNING LAW AND JURISDICTION; WAIVER OF JURY TRIAL. THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO ANY PRINCIPLE OF CONFLICTS OF LAW THAT WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION. THE COMPANY, THE TRUSTEE, AND EACH HOLDER OF A NOTE (BY ACCEPTANCE THEREOF) THEREBY, (I) SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING RELATED TO THIS INDENTURE, (II) IRREVOCABLY WAIVES ANY DEFENSE OF LACK OF PERSONAL JURISDICTION IN SUCH SUITS AND (III) IRREVOCABLY WAIVES TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE FEDERAL AND NEW YORK STATE COURTS LOCATED IN THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK AND THAT SUCH SUIT, ACTION OR PROCEEDING HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

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     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

     Section 9.11 NO RECOURSE AGAINST OTHERS. A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Notes or this Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder of such Note shall waive and release all such liability. The waiver and release shall be part of the consideration for the issue of the Notes.

     Section 9.12 SUCCESSORS. All agreements of the Company in this Indenture and the Notes shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.

     Section 9.13 EFFECT OF HEADINGS AND TABLE OF CONTENTS. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

     Section 9.14 BENEFITS OF INDENTURE. Nothing in this Indenture or in the Notes, express or implied, shall give to any person, other than the parties hereto and their successors hereunder and the Holders of Notes, any benefits or any legal or equitable right, remedy or claim under this Indenture.

     Section 9.15 MULTIPLE COUNTERPARTS. The parties may sign any number of copies of this Indenture. One signed copy is enough to prove this Indenture.  This Indenture may be executed in multiple counterparts, each of which shall be regarded for all purposes as an original, and such counterparts shall constitute but one and the same instrument.  In addition, the transaction described herein may be conducted and related documents may be stored by electronic means.  Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.

     Section 9.16 FORCE MAJEURE. In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

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Section 9.17 U.S.A. PATRIOT ACT.  The parties hereto acknowledge that in accordance with Section 326 of the U.S.A. Patriot Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
KORTH DIRECT MORTGAGE LLC

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

Attest:

 

Name:

Title: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
DELAWARE TRUST 

COMPANY, solely in its capacity 

 as Trustee

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

     

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EXHIBIT A

Form of Note

FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT BECAUSE PAYMENTS ON THE NOTE ARE DEPENDENT ON PAYMENTS ON THE CORRESPONDING LOAN. THE ISSUE PRICE OF THE NOTE IS THE STATED PRINCIPAL AMOUNT OF THIS NOTE, AND THE ISSUE DATE IS THE ORIGINAL ISSUE DATE. UPON REQUEST, THE COMPANY WILL PROMPTLY MAKE AVAILABLE TO THE HOLDER THE AMOUNT OF OID AND YIELD TO MATURITY OF THIS NOTE. A HOLDER SHOULD CONTACT J. W. KORTH AT 800 454 1628 FOR ANY TRANSFER, PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL unless (1) such transfer is effected on a trading system that is recognized by the Company, and (2) this Note has been presented by the registered Holder (as defined below) to the Company or its agent for registration of transfer.

 

A-1

  MORTGAGE SECURED NOTE SERIES NO.                      1 

KORTH DIRECT MORTGAGE LLC

	 	 	 
	
 

	
 

	
 

	
No.                     

	
 

	
[CUSIP                                         ]

HOLDER:                                        2

CORRESPONDING LOAN:                                         3

STATED PRINCIPAL AMOUNT OF THIS NOTE: U.S. $                                        4

AGGREGATE PRINCIPAL AMOUNT OF THIS SERIES OF NOTES: U.S. $                    5

INTEREST RATE:                    6

SERVICE CHARGE:   7 OF ALL  LOAN NET INTEREST PAYMENTS.

ORIGINAL ISSUE DATE:                                         7

 

	
1

	
Insert loan ID number for Corresponding  Loan.

	 	 
	
2

	
Insert lender ’s screen name.

	 	 
	
3

	
Insert description of Corresponding  Loan.

	 	 
	
4

	
Insert principal amount of lender ’s Corresponding  Loan.

	 	 
	
5

	
Insert maximum aggregate principal amount of series, which should be aggregate principal amount of Corresponding  Loan that is being funded by lender s.

	 	 
	
6

	
Insert coupon stated on Corresponding Loan.

	 	 
	
7

	
Insert percentage rate of Service Charge

	 	 
	
8

	
Insert date corresponding to date of closing of Corresponding  Loan.

 

A-2

 

INITIAL MATURITY DATE:                                         9

FINAL MATURITY DATE:                                         10

EXTENSION OF MATURITY DATE: Each Note will mature on the Initial Maturity Date, unless the maturity of the Note is extended to the Final Maturity Date subject to conditions described below. In no event will the maturity of the Notes be extended beyond the Final Maturity Date.

 PAYMENT DATES: Subject to the limitations on payment described below, the Company will make payments of principal and interest on or before the fourth Business Day following receipt of any  Loan Net Payments by the Company in accordance with the payment schedule for this Note, which is available on the Holder’s account page at www.kdminvestor.com, subject to prepayment at any time without penalty. 

          Korth Direct Mortgage LLC, a corporation duly organized and existing under the laws of the Florida (herein called the “Company”), for value received, hereby promises to pay to the person identified as the “Holder” above (the “Holder”), principal and interest on this Note in U.S. dollars in an amount equal to the Holder’s equal and ratable share of the  Loan Net Payments on each Payment Date (in accordance with the payment schedule for this Note), which is available on  www.KDMinvestor.com and subject to prepayment) until the Maturity Date or such later date if Loan Payments are collected after a default on the Loan by the borrower. For the avoidance of doubt, (1) no payments of principal and interest on this Note shall be payable unless the Company has received  Loan Payments, and then only to the extent of  Loan Net Payments in respect of those  Loan Payments related to the Corresponding  Loan identified above that have been received by the Company, and (2) no Holder of the Note shall have any recourse against the Company unless, and then only to the extent that, the Company has failed to pay such Holder the  Loan Net Payments or otherwise breached a covenant in the Indenture described below that is applicable to the series of Notes of which this Note forms a part. Subject to certain exceptions provided in the Indenture referred to below, the principal and interest payable on any Payment Date will be paid to the person in whose name this Note is registered at the close of business on the Record Date next preceding such Payment Date or maturity date.

          “Record Date” shall mean the second Business Day immediately preceding each Interest Payment Date.

          “Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which the Automated Clearing House system operated by the U.S. Federal Reserve Bank (the “ACH System”) is closed and (2) not a day on which banking institutions are authorized or obligated by law or executive order to close in San Francisco, California or New York, New York.

 

	
8

	
Insert date corresponding to stated maturity of Corresponding  Loan plus four Business Days.

	 	 
	
9

	
Insert date that is the first anniversary of the stated maturity of Corresponding  Loan plus four Business Days.

 

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          If, on the  Maturity Date, any principal or interest payments in respect of the Corresponding  Loan remain due and payable to the Company, the maturity date of this Note will be extended to the date we receive final payment on the Corresponding Loan identified above.

          If, on the Maturity Date, no principal or interest payments in respect of the Corresponding Loan remain due and payable to the Company, the Note will mature on the Maturity Date and no Consumer Loan Net Payments that the Company receives in respect of the Corresponding Consumer Loan after such Initial Maturity Date shall be required to be paid to the Holder of the Note.

          All payments of principal and interest on this Note due to the Holder hereof shall be made in U.S. dollars, in immediately available funds, by intra-institution book entry transfer to the Holder’s designated sub-account in the trust account maintained by the Company at JP Morgan Chase, or such alternate account of the Holder designated by the Trustee in accordance with the Indenture.

     All U.S. dollar amounts used in or resulting from the calculation of amounts due in respect of this Note shall be rounded to the nearest cent (with one-half cent being rounded upward).

          This Note is one of a duly authorized series of special limited obligations of the Company (hereinafter called the “Notes”) all issued or to be issued under and pursuant to an Indenture dated as of [                                        , 2017] (hereinafter called the “Indenture”), duly executed and delivered by the Company and JP Morgan Chase, as trustee (hereinafter called the “Trustee”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, duties and immunities thereunder of the Trustee and the rights thereunder of the holders of the Notes. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (the “TIA”), as in effect on the date of the Indenture. The Notes are subject to, and qualified by, all such terms, certain of which are summarized hereon, and Holders are referred to the Indenture and the TIA for a statement of such terms. As provided in the Indenture, the Notes may be issued in one or more separate series, which different series may be issued in various aggregate principal amounts, mature at different times, bear interest at different rates, be subject to different covenants and events of default, and otherwise vary as provided or permitted in the Indenture.

     If an Event of Default described in Section 5.1(3) or (4) of the Indenture occurs and is continuing, the unpaid stated principal amount hereof will become and be immediately due and payable in the manner, with the effect and subject to the conditions provided in the Indenture.

 

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     The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of each series of Notes affected thereby, at the time Outstanding, evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture or of any indenture supplemental thereto or

modifying in any manner the rights of the holders of this Note; provided, however, that no such supplemental indenture shall (1) change the Stated Maturity of the principal of, or any installment of principal or interest on, any Note, or reduce the principal amount thereof or the rate of interest thereon that would be due and payable upon a declaration of acceleration of maturity thereof or change the place of payment where, or change the coin or currency in which, any any installment of principal and interest on any such Note is payable or impair the right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof, (2) reduce the percentage in principal amount of the Outstanding Notes, the consent of whose Holders is required for any such amendment or supplemental indenture, or the consent of whose Holders is required for any waiver (of compliance with certain provisions of the Indenture or certain defaults thereunder and their consequences) with respect to the Notes, or (3) modify any of the provisions of Section 8.2, Section 5.4 (clauses (1) and (2)) or Section 5.7 of the Indenture, except to increase the percentage of Outstanding Notes required for such actions to provide that certain other provisions of the Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Note affected thereby. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Notes of all affected series at the time outstanding, on behalf of the holders of all the Notes of such series, to waive, insofar as those series are concerned, compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future holders and owners of this Note and any Notes which may be issued upon the registration of transfer hereof or, irrespective of whether or not any notation thereof is made upon this Note or other such Notes.

     This Note is not entitled to any sinking fund. This Note is not redeemable at the option of the Holder.

     The Notes are in registered form without coupons in denominations of $1000 and integral multiples of $1000 in excess thereof. Upon due presentment for registration of transfer of this Note at the office or agency of the Company in Miami, Florida a new Note or Notes in authorized denominations in Dollars for an equal aggregate principal amount and like interest rate and maturity will be issued to the transferee in exchange therefor, subject to the limitations provided in the Indenture, without charge except for (1) any stamp tax or other governmental charge imposed in connection therewith.

     The Company, the Trustee, and any paying agent may deem and treat the registered Holder hereof as the absolute owner of this Note at the Holder’s address as it appears on the register books of the Company as kept by the Company or duly authorized agent of the Company (whether or not this Note shall be overdue), for the purpose of receiving payment of or on account hereof and for all other purposes, and neither the Company nor the Trustee nor any paying agent shall be affected by any notice to the contrary. All payments made to or upon the order of such registered Holder shall, to the extent of the sum or sums paid, effectively satisfy and discharge liability for moneys payable on this Note.

     No recourse under or upon any obligation, covenant or agreement contained in the Indenture or any indenture supplemental thereto or in any Note, or because of any indebtedness evidenced thereby, shall be had against any incorporator, or against any past, present or future shareholder, officer or director, as such, of the Company, either directly or through the Company, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or penalty or otherwise, all such personal liability of every such incorporator, shareholder, officer and director, as such, being expressly waived and released by the acceptance hereof and as a condition of and as part of the consideration for the issuance of this Note.

 

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     Unless otherwise defined herein, terms used herein which are defined in the Indenture shall have the respective meanings assigned thereto in the Indenture. To the extent that provisions contained in this Note are inconsistent with the provisions set forth in the Indenture, the provisions contained herein will apply.

     This Note shall be governed by and construed in accordance with the laws of the State of New York without regard to any principle of conflict of laws that would require or permit the application of the laws of any other jurisdiction.

     This Note shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by an authorized officer of the Company or its duly authorized agent under the Indenture referred to above.

     IN WITNESS WHEREOF, KORTH DIRECT MORTGAGE has caused this instrument to be signed by its duly authorized officers.

	
 

	
 

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	
 

 

	
 

	
KORTH DIRECT 

 MORTGAGE LLC

	 	 	 
	
 

	 	 
	
 

	
By:  

	
 

	
 

	
 

	
 

	
Name:  

	
 

	
 

	
 

	
 

	
Title:  

	
 

	
 

CERTIFICATE OF AUTHENTICATION

	
 

	
 

	
 

	
 

	
 

	
Dated:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

This is one of the Notes of the series of Notes designated therein referred to in the within-mentioned Indenture.

KORTH DIRECT MORTGAGE LLC,

as Authenticating Agent

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:  

	
 

	
 

	
 

	
 

	
Name:  

	
 

	
 

	
 

	
 

	
Title:  

	
 

	
 

 

A-6

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