Document:

exv10w65

Exhibit 10.65

ASSET PURCHASE AGREEMENT

Dated as of July 8, 2009

Between

FINISAR CORPORATION

and

JDS UNIPHASE CORPORATION

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	ARTICLE I DEFINITIONS	 	 	1	 
	 
	1.1
	 	Defined Terms	 	 	1	 
	1.2
	 	Rules of Construction	 	 	10	 
	 
	ARTICLE II PURCHASE AND SALE OF THE TRANSFERRED ASSETS	 	 	11	 
	 
	2.1
	 	Purchase and Sale of Transferred Assets	 	 	11	 
	2.2
	 	Assumption of Liabilities	 	 	13	 
	2.3
	 	Sale of Transferred Assets and Assumption of Assumed Liabilities	 	 	15	 
	2.4
	 	Payments Post-Closing	 	 	15	 
	2.5
	 	Tax Withholding	 	 	16	 
	2.6
	 	No Assignment in Certain Circumstances	 	 	16	 
	 
	ARTICLE III PURCHASE PRICE	 	 	17	 
	 
	3.1
	 	Purchase Price	 	 	17	 
	3.2
	 	Allocation of Purchase Price	 	 	17	 
	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	 	 	17	 
	 
	4.1
	 	Representations and Warranties of the Seller	 	 	18	 
	4.2
	 	Representations and Warranties of the Buyer	 	 	33	 
	 
	ARTICLE V COVENANTS	 	 	34	 
	 
	5.1
	 	Information and Records	 	 	34	 
	5.2
	 	Conduct of the Business Prior to the Closing Date	 	 	34	 
	5.3
	 	Non-Solicitation	 	 	36	 
	5.4
	 	Non-Competition	 	 	36	 
	5.5
	 	Public Announcements	 	 	37	 
	5.6
	 	Seller Employees	 	 	37	 
	5.7
	 	Key Employees	 	 	38	 
	5.8
	 	Insurance	 	 	39	 
	5.9
	 	Certain Notices	 	 	39	 
	5.10
	 	Certain Intellectual Property Covenants	 	 	39	 
	5.11
	 	Confidentiality	 	 	40	 
	5.12
	 	Successors	 	 	40	 
	5.13
	 	No Solicitation or Negotiation	 	 	40	 
	5.14
	 	Supply Agreement	 	 	41	 
	5.15
	 	SerialTek Litigation	 	 	41	 
	 
	ARTICLE VI TAX MATTERS	 	 	43	 
	 
	6.1
	 	Control of Tax Audits	 	 	43	 
	6.2
	 	Tax Returns	 	 	43	 
	6.3
	 	Cooperation	 	 	44	 
	6.4
	 	Transfer Costs	 	 	44	 

-i- 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	6.5
	 	Proration of Taxes	 	 	44	 
	 
	ARTICLE VII CLOSING	 	 	44	 
	 
	7.1
	 	Closing Date	 	 	44	 
	7.2
	 	Deliveries by the Buyer	 	 	44	 
	7.3
	 	Deliveries by the Seller	 	 	45	 
	 
	ARTICLE VIII CONDITIONS PRECEDENT	 	 	46	 
	 
	8.1
	 	Conditions Precedent to Obligations of Parties	 	 	46	 
	8.2
	 	Conditions to Obligations of the Buyer	 	 	46	 
	8.3
	 	Conditions to the Obligations of the Seller	 	 	46	 
	 
	ARTICLE IX TERMINATION	 	 	47	 
	 
	9.1
	 	Termination	 	 	47	 
	9.2
	 	Effect of Termination	 	 	47	 
	 
	ARTICLE X INDEMNIFICATION	 	 	47	 
	 
	10.1
	 	Indemnification	 	 	47	 
	10.2
	 	Limitations on Indemnity Payments	 	 	49	 
	10.3
	 	Notice of Indemnity Claims	 	 	49	 
	10.4
	 	Indemnification Procedures	 	 	50	 
	10.5
	 	Settlement of Indemnity Claims	 	 	51	 
	10.6
	 	Survival	 	 	51	 
	10.7
	 	Treatment of Indemnification Payments	 	 	52	 
	10.8
	 	Calculation of Indemnity Payments	 	 	52	 
	10.9
	 	Exclusive Remedy	 	 	52	 
	 
	ARTICLE XI MISCELLANEOUS	 	 	52	 
	 
	11.1
	 	Notices	 	 	52	 
	11.2
	 	Counterparts; Facsimile Signature	 	 	53	 
	11.3
	 	Bulk Sales	 	 	53	 
	11.4
	 	Further Assurances	 	 	53	 
	11.5
	 	Entire Agreement	 	 	54	 
	11.6
	 	Third-Party Beneficiaries	 	 	54	 
	11.7
	 	Assignment	 	 	54	 
	11.8
	 	Amendment and Modification; Waiver	 	 	54	 
	11.9
	 	Costs and Expenses	 	 	54	 
	11.10
	 	Mutual Drafting	 	 	55	 
	11.11
	 	Governing Law	 	 	55	 
	11.12
	 	Severability	 	 	55	 
	11.13
	 	Specific Performance	 	 	55	 

-ii- 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	 	 	Page

Schedules

	 	 	 	 	 
	Schedule 1

	 	—
	 	Business
	Schedule 2.1(a)

	 	—
	 	Transferred Assets
	Schedule 2.1(b)

	 	—
	 	Excluded Assets
	Schedule 2.2(a)

	 	—
	 	Assumed Liabilities
	Schedule 2.6

	 	—
	 	Covered Licenses
	Schedule 3.2

	 	—
	 	Allocation of Purchase Price
	Schedule 5.7

	 	—
	 	Key Employees
	Schedule 7.3(a)

	 	—
	 	Required Consents

Exhibits

	 	 	 	 	 
	Exhibit A

	 	—
	 	Disclosure Schedule
	Exhibit B

	 	—
	 	Form of Bill of Sale
	Exhibit C

	 	—
	 	Form of Patent Assignment
	Exhibit D

	 	—
	 	Form of Trademark Assignment
	Exhibit E

	 	—
	 	Form of Copyright Assignment
	Exhibit F

	 	—
	 	Form of Transition Services Agreement
	Exhibit G

	 	—
	 	Form of Assignment and Assumption Agreement
	Exhibit H

	 	—
	 	Form of Legal Opinion
	Exhibit I

	 	—
	 	Form of License Agreement
	Exhibit J

	 	—
	 	Form of Settlement Agreement
	Exhibit K

	 	—
	 	Buyer Disclosure Schedule
	Exhibit L

	 	—
	 	Texas Facility Lease Agreement

-iii- 

 

ASSET PURCHASE AGREEMENT

          ASSET PURCHASE AGREEMENT, dated as of July 8, 2009 (this “Agreement”), between JDS Uniphase
Corporation, a Delaware corporation (the “Buyer”), and Finisar Corporation, a Delaware corporation
(the “Seller”).

RECITALS:

          WHEREAS, the Seller is currently engaged in, among other matters, the business described in
Schedule 1 attached hereto (such business being referred to herein as the “Business”);

          WHEREAS, upon the terms and conditions set forth herein, the Buyer desires to purchase, and
the Seller desires to sell to the Buyer, the Business, including all right, title and interest of
the Seller in, to and under the property and assets used exclusively in the Business, and in
connection therewith the Buyer is willing to assume certain specified liabilities of the Seller
relating thereto (the “Acquisition”); and

          NOW, THEREFORE, in consideration of the foregoing and the respective representations,
warranties, covenants and agreements set forth herein, and intending to be legally bound hereby,
the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     1.1 Defined Terms. Defined terms used in this Agreement have the meanings ascribed to
them as follows:

          “Acquisition” shall have the meaning set forth in the Recitals.

          “Actions or Proceedings” shall mean any demand, claim, action, suit, proceeding, mediation,
arbitration or investigation, which is Known by the Seller.

          “Affiliate” shall mean, with respect to any Person, any other Person that directly or
indirectly, through one or more intermediaries, controls, is controlled by, or is under common
control with, such Person, including Subsidiaries.

          “Agreement” shall have the meaning set forth in the introduction paragraph of this Agreement.

          “Allocation” shall have the meaning set forth in Section 3.2.

          “Ancillary Agreements” shall mean the Bill of Sale, the Patent Assignment, the Trademark
Assignment, the Copyright Assignment, the Transition Services Agreement, the Assignment and
Assumption Agreement, the License Agreement and the Settlement Agreement.

 

 

          “Approval” shall have the meaning set forth in Section 2.6.

          “Assigned Contracts” shall have the meaning set forth in Section 2.1(a)(iv).

          “Assignment and Assumption Agreement” shall mean that certain Assignment and Assumption
Agreement dated as of the Closing Date between the Seller and the Buyer, in substantially the form
of Exhibit G hereto.

          “Assumed Liabilities” shall have the meaning set forth in Section 2.2.

          “Bill of Sale” shall mean that certain Bill of Sale dated as of the Closing Date between the
Seller and the Buyer, in substantially the form of Exhibit B hereto.

          “Books and Records” shall mean originals or true copies stored on computer disks or tapes or
any other storage medium of all existing price lists, client and customer lists, product
literature, vendor and supplier lists, user manuals, sales and marketing literature, and, subject
to applicable Law, data and records pertaining to Transferred Employees, in each case used
exclusively in the conduct or operation of the Business.

          “Business” shall have the meaning set forth in the Recitals.

          “Business Day” shall mean any day other than (i) a Saturday or Sunday or (ii) a day on which
banks in San Francisco, California are required or authorized by law, executive order or
governmental decree to be closed.

          “Business Employee” shall mean any employee of the Seller who is assigned exclusively to the
Business as of the date of this Agreement, other than any employees of the Seller located in Ipoh,
Malaysia.

          “Buyer” shall have the meaning set forth in the Recitals.

          “Buyer Disclosure Schedule” shall have the meaning set forth in Section 4.2.

          “Buyer Indemnified Party” shall have the meaning set forth in Section 10.1(a).

          “Buyer Losses” shall have the meaning set forth in Section 10.1(a).

          “Buyer’s Appraisal” shall have the meaning set forth in Section 3.2.

          “Claim Notice” shall have the meaning set forth in Section 10.3.

          “Closing” shall have the meaning set forth in Section 7.1.

          “Closing Date” shall have the meaning set forth in Section 7.1.

          “Closing PTO Schedule” shall have the meaning set forth in Section 5.6(e).

          “COBRA” shall have the meaning set forth in Section 5.6(d).

2

 

          “Code” shall mean the Internal Revenue Code of 1986, as amended.

          “Confidential Information” shall have the meaning set forth in Section 4.1(p)(xv).

          “Confidentiality Agreement” shall mean the Confidentiality Letter Agreement dated January 22,
2009 by and between the Buyer and the Seller.

          “Contaminants” shall have the meaning set forth in Section 4.1(p)(xviii).

          “Contracts” shall mean all written and oral contracts, agreements, leases, subleases,
licenses, purchase orders, instruments, mortgages, bundling arrangements, deeds of trust,
guarantees and any other contractual arrangements related to the operation of the Business, the
Transferred Assets or the Assumed Liabilities.

          “Copyright Assignment” shall mean that certain Copyright Assignment dated as of the Closing
Date between the Seller and the Buyer, in substantially the form of Exhibit E hereto.

          “Counterclaim” shall have the meaning set forth in Section 5.15(c).

          “Covered Licenses” shall have the meaning set forth in Section 2.6.

          “Covered License Grace Period” shall have the meaning set forth in Section
10.1(a)(ix).

          “Disclosure Schedule” shall mean the disclosure schedule provided by the Seller on the date of
this Agreement and attached hereto as Exhibit A.

          “Distributors” shall have the meaning set forth in Section 4.1(v).

          “dollars” or “$” shall mean United States dollars.

          “Effective Time” shall have the meaning set forth in Section 7.1.

          “End User Agreements” shall mean agreements entered into by the Seller or any Subsidiary of
the Seller in the ordinary course of business that provide customers with the non-exclusive,
non-transferable, non-sublicenseable right to use a Product internally solely for such customer’s
benefit (in the case of Products that include software, such agreement providing only an object
code license to such software) or non-exclusive right to receive services of the Seller or any
Subsidiary of the Seller, but provides no: (i) exclusivity to such customers or restrictions on the
Seller’s ability to conduct any business; (ii) rights to distribute Products or make any
modifications thereto, (iii) most favored nation commitments to such users, (iv) escrow of source
code for the benefit of such customers, or (iv) indemnities or warranties in addition to those set
forth in the Seller’s standard End User Agreements.

          “Environmental Laws” shall mean all applicable Laws or Orders relating to (i) pollution,
contamination, restoration or protection of the environment, health or safety or natural

3

 

resources, (ii) the handling, use, presence, disposal, release or threatened release of any
Hazardous Substance or (iii) noise, odor, wetlands, pollution, contamination, waste or injury or
threat of injury to Persons or property.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the
rules and regulations promulgated thereunder.

          “ERISA Affiliate” shall mean any Person that, together with the Seller or any of its
Subsidiaries, would be deemed a “single employer” within the meaning of Section 414(b), (c), (m) or
(o) of the Code.

          “Excluded Assets” shall have the meaning set forth in Section 2.1(b).

          “Excluded Liabilities” shall have the meaning set forth in Section 2.2(b).

          “Financial Information” shall have the meaning set forth in Section 4.1(f).

          “Field of Use” shall mean the field of network test, network measurement, network analysis,
network diagnostic, and network monitoring systems and tools (both software and hardware based) in
wire-based, optical/fiber-based and wireless network environments, including network and protocol
analyzers, network taps, network data/traffic generators and jammers, bit error rate testers and
associated software and subsystems.

          “Foreign Benefit Plan” shall have the meaning set forth in Section 4.1(n)(vi).

          “GAAP” shall mean United States generally accepted accounting principles consistently applied.

          “Governmental Authority” shall mean any federal, state, municipal, foreign or other
governmental body, department, commission, board, bureau, agency, court, tribunal or
instrumentality, or other entity exercising any executive, legislative, judicial, quasi-judicial,
regulatory or administrative function of government.

          “Hazardous Substance” shall mean any substance that is (i) listed, classified or regulated
pursuant to any Environmental Law or (ii) any petroleum or petroleum product or by-product,
asbestos-containing material, lead-containing paint or plumbing, polychlorinated biphenyls,
radioactive materials or radon.

          “Indemnified Party” shall have the meaning set forth in Section 10.3.

          “Indemnifying Party” shall have the meaning set forth in Section 10.3.

          “Indemnity Claim” shall have the meaning set forth in Section 10.3.

          “In-Licensed IP” shall have the meaning set forth in Section 4.1(p)(x).

          “Intellectual Property” shall mean Intellectual Property Rights and Technology.

4

 

          “Intellectual Property Rights” shall mean any and all intellectual property rights worldwide,
including (i) Patents, copyrights, rights in mask works and industrial designs, moral rights and
other rights of attribution, trade secrets, trademarks, service marks, collective marks,
certification marks, rights in domain names and URLs, trade names, and trade dress, including all
related goodwill; (ii) any similar, corresponding or equivalent rights to any of the foregoing, in
the United States and any foreign jurisdiction, (iii) all applications, registrations, and renewals
in connection with the foregoing, (iv) all joint or partial interests in any of the foregoing, and
(v) all rights to pursue, recover and retain damages, costs and attorneys’ fees for past, present
and future infringement or misappropriations of the foregoing.

          “Inventory” shall mean the inventory of the Seller exclusively related to the Business,
wherever located (including with Distributors), including all finished goods (including
demonstration units), work-in-progress and raw goods.

          “Key Customers” shall have the meaning set forth in Section 4.1(v).

          “Key Employees” shall mean the Business Employees listed on Schedule 5.7.

          “Knowledge” shall mean, with respect to the Seller, the actual knowledge of a particular fact,
circumstance, event or other matter in question of each of Dave Buse, Steve Workman, Chris Brown,
Cheng Liu and Rick Kilduff, in each case, after reasonable inquiry, and with respect to the Buyer,
the actual knowledge of a particular fact, circumstance, event or other matter in question of each
of Matthew Fawcett and Jeremy Liegl, in each case, after reasonable inquiry.

          “Landlord” shall mean TR Section Three, Ltd., a Texas limited partnership.

          “Law” shall mean any federal, state, local or foreign law, statute, common law, rule,
regulation, code, directive, ordinance or other requirement of general application of any
Governmental Authority, including Environmental Laws.

          “Leases” shall mean agreements under which real property is leased by the Seller or its
Subsidiaries in connection with the operation of the Business.

          “Liabilities” shall mean any direct or indirect liability, indebtedness, claim, loss, damage,
deficiency, obligation or responsibility, fixed or unfixed, choate or inchoate, liquidated or
unliquidated, secured or unsecured, accrued or not, absolute, known or unknown, contingent or
otherwise.

          “License Agreement” shall mean that certain License Agreement dated as of the Closing Date
between the Seller and the Buyer, in substantially the form of Exhibit I hereto.

          “Licensed IP” shall mean all Intellectual Property of the Seller to be licensed to the Buyer
as set forth in the License Agreement.

          “Licenses and Permits” shall mean all licenses, permits, concessions, exemptions, consents,
franchises, certificates, variances, approvals and other authorizations that are required by
Governmental Authorities under any applicable Law that relate exclusively to the

5

 

conduct of the Business as it is presently conducted or to the ownership or use of the
Transferred Assets, or that are required to permit the release any Products of the Seller that are
scheduled for release within the ninety (90) days after the date hereof.

          “Lien” shall mean any lien, claim, charge, option, mortgage, pledge or security interest,
rights of first refusal or rights of first offer, encumbrance (including leases, easements,
licenses, zoning ordinances, covenants, conditions, restrictions and rights-of-way) or other
similar right affecting real or personal property, in each case, whether arising by contract,
operation of law or otherwise.

          “Material Adverse Effect” shall mean any event, change, circumstance or effect that,
individually or together with other events, changes, circumstances or effects, is or could
reasonably be expected to be materially adverse to the condition (financial or otherwise),
properties, assets (including intangible assets), liabilities, prospects, businesses or results of
operations of the Business or to have a material adverse effect on the ability of the Seller to
consummate the transactions contemplated hereunder on a timely basis; provided, however, that none
of the following, or any event, change, or circumstance resulting or arising from the following,
shall constitute, or shall be considered in determining whether there has occurred, a “Material
Adverse Effect”: (i) changes in conditions in the United States or global economy or capital or
financial markets generally that do not affect the Business in a disproportionate manner as
compared to other companies in such industry; (ii) changes in general legal, tax, regulatory,
political or business conditions in the countries in which the Seller operates the Business or the
Transferred Assets are located that do not affect the Business in a disproportionate manner as
compared to other companies in such industry; (iii) general market or economic conditions in the
industry in which the Seller operates that do not affect the Business in a disproportionate manner
as compared to other companies in such industry; (iv) actions required by the parties pursuant to
this Agreement or the Ancillary Agreements; (v) the negotiation, execution, announcement, pendency
or performance of this Agreement or the Ancillary Agreements; (vi) changes in generally accepted
accounting principles or the interpretation thereof that do not affect the Business in a
disproportionate manner as compared to other companies in such industry; (vii) any action taken
specifically required by this Agreement or taken at the written direction of the Buyer; and (viii)
any natural disaster or other acts of God, acts of war, armed hostilities, sabotage or terrorism,
or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism is
threatened or underway as of the date of this Agreement that do not affect the Business in a
disproportionate manner as compared to other companies in such industry.

          “Noncompetition Period” shall have the meaning set forth in Section 5.3(a).

          “Non-Inventory Purchase Orders” shall mean the written purchase orders or purchase commitments
of the Seller for products or services used in the Business that are not Inventory.

          “Non-U.S. Employees” shall mean the Business Employees set forth on Section 1.1 of the
Disclosure Schedule.

          “No Consent Notice” shall have the meaning set forth in Section 2.6.

6

 

          “Open Source Software” shall have the meaning set forth in Section 4.1(p)(xi).

          “Order” shall mean any order, writ, injunction, judgment, decree or ruling entered, issued,
made or rendered by any court, administrative agency, arbitration tribunal or other Governmental
Authority of competent jurisdiction.

          “Patent Assignment” shall mean that certain Patent Assignment dated as of the Closing Date
between the Seller and the Buyer, in substantially the form of Exhibit C hereto.

          “Patents” shall mean any and all United States and foreign patent rights, including all (a)
patents, (b) pending patent applications, including all provisional applications, substitutions,
continuations, continuations-in-part, divisions, renewals, and all patents granted thereon, (c) all
patents-of-addition, reissues, reexaminations, confirmations, re-registrations, invalidations, and
extensions or restorations by existing or future extension or restoration mechanisms, including
supplementary protection certificates or the equivalent thereof, and (d) all foreign counterparts
of any of the foregoing.

          “Periodic Taxes” shall have the meaning set forth in Section 6.5.

          “Permitted Liens” shall mean (i) mechanics’, carriers’, workers’ or repairmen’s Liens arising
in the ordinary course of business and securing payments or obligations that are not delinquent,
(ii) Liens for Taxes, assessments and other similar governmental charges which are not due and
payable for which adequate reserves have been established in accordance with GAAP and (iii) Liens
that arise under zoning, land use and other similar Laws and other imperfections of title or
encumbrances, if any, which do not materially affect the marketability of the property subject
thereto and do not materially impair the use of the property subject thereto as used as of the date
hereof.

          “Person” shall mean any individual, corporation, partnership, firm, limited liability company,
joint venture, association, joint stock company, trust, unincorporated organization, Governmental
Authority or other entity.

          “Phase 1 Process” shall have the meaning set forth in Section 5.15(a).

          “Post-Closing Tax Period” shall mean any taxable period beginning after the Closing Date and,
with respect to any Straddle Period, the portion of such Straddle Period beginning after the
Closing Date.

          “Pre-Closing Product Liabilities” means any Liabilities other than Warranty Liabilities
arising (or alleged to have arisen) out of claims for damage or injury arising from the sale or
production of Products prior to the Closing.

          “Pre-Closing Tax Period” shall mean any taxable period ending on or before the Closing Date
and, with respect to any Straddle Period, the portion of such Straddle Period ending on the Closing
Date.

          “Preliminary PTO Schedule” shall have the meaning set forth in Section 5.6(e).

7

 

          “Products” shall mean all products or services sold, distributed, supported or otherwise made
available by the Seller or any Subsidiaries of the Seller exclusively in connection with the
Business, including without limitation, any support and maintenance services related to such
products.

          “PTO” shall have the meaning set forth in Section 5.6(e).

          “Purchase Price” shall mean the amount equal to the sum of (A) $40,250,000 and (B) the dollar
amount set forth on the Closing PTO Schedule related to PTO of the Transferred Employees.

          “QV Firm” shall have the meaning set forth in Section 3.2.

          “Recovery” shall have the meaning set forth in Section 5.15(a).

          “Registered Transferred IP” shall have the meaning set forth in Section 4.1(p)(iii).

          “Related Persons” shall have the meaning set forth in Section 4.1(s).

          “Representatives” shall mean a Person’s directors, officers, Affiliates, employees, attorneys,
accountants, financial advisors, representatives and other agents.

          “Required Consents” shall have the meaning set forth in Section 7.3(a).

          “SEC” shall mean the U.S. Securities and Exchange Commission.

          “Seller” shall have the meaning set forth in the Recitals.

          “Seller Indemnified Party” shall have the meaning set forth in Section 10.1(b).

          “Seller Losses” shall have the meaning set forth in Section 10.1(b).

          “Seller Phase 1 Expenses” shall have the meaning set forth in Section 5.15(a).

          “Seller Plan” shall mean each “employee benefit plan” (within the meaning of Section 3(3) of
ERISA), and any other written, unwritten, formal or informal plan, contract, agreement, policy or
other arrangement providing for employment, compensation, severance, termination pay, deferred
compensation, bonus, performance awards, stock or stock-related awards, fringe benefits, disability
benefits, supplemental employment benefits, vacation benefits, profit-sharing, post-retirement
benefits, or other employee benefits or remuneration of any kind, in each case entered into,
maintained or contributed to by the Seller or any of its Subsidiaries or with respect to which the
Seller or any of its Subsidiaries has any Liability.

          “SerialTek Litigation” shall mean that certain litigation matter captioned Finisar
Corporation, a Delaware corporation v. SerialTek LLC, a Delaware limited liability company, and
Eric Lanning, an individual (Santa Clara Sup. Ct. filed May 18, 2009, Case No. 109CV142624).

8

 

          “Settlement Agreement” shall mean that certain Covenant Not To Sue and Settlement Agreement
dated as of the Closing Date between the Seller and the Buyer, in substantially the form of Exhibit
J hereto.

          “Straddle Period” shall mean any taxable period that begins on or before and ends after the
Closing Date.

          “Subsidiary” and “Subsidiaries” when used with respect to any Person shall mean any other
Person in which such Person directly or indirectly owns 50% or more of the aggregate voting stock.
For purposes of this definition, “voting stock” means stock or other interests that ordinarily has
voting power for the election of directors or managers.

          “Successor Acquisition” shall have the meaning set forth in Section 5.12.

          “Tax” or “Taxes” shall mean any taxes of any kind, including those measured on, measured by or
referred to as, income, alternative or add-on minimum, gross receipts, escheat, capital, capital
gains, sales, use, ad valorem, franchise, profits, license, privilege, transfer, withholding,
payroll, employment, social, excise, severance, stamp, occupation, premium, value added, property,
environmental or windfall profits taxes, customs, duties or similar fees, assessments or charges of
any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis or
in any other manner, together with any interest and any penalties, additions to tax or additional
amounts (including any interest thereon) imposed by any Governmental Authority.

          “Tax Proceeding” shall have the meaning set forth in Section 6.1.

          “Tax Returns” shall mean all reports, estimates, declarations of estimated Tax, claims for
refund, information statements and returns relating to, or required to be filed in connection with,
any Taxes, including any schedule or attachment thereto, and including any amendment thereof.

          “Technology” shall mean any and all algorithms, business names, brand names, compositions,
confidential or proprietary information or data, databases, distributor lists, designs,
discoveries, domain names, drawings, formulae, ideas, inventions, know-how, logos, mask works,
methods, models and model names, names, processes, research, software (including source code,
object code, firmware, development tools, files, records, and data), systems, techniques,
technology, trade dress, works of authorship, and general intangibles of like nature, including the
media on which any of the foregoing is recorded, whether patentable or unpatentable and whether or
not reduced to practice

          “Technology Systems” shall have the meaning set forth in Section 4.1(p)(xviii).

          “Termination Date” shall have the meaning set forth in Section 9.1(b).

          “Texas Facility” shall mean that certain real property located at 600 Center Ridge Drive,
Suite 600, Austin, Texas 78753.

9

 

          “Texas Facility Lease Agreement” shall mean that certain Lease Agreement, dated as of May 25,
2001, as amended by that certain First Amendment to the Lease Agreement dated as of August 22, 2007
between the Seller and the Landlord related to the Texas Facility.

          “Third Party Claim” shall have the meaning set forth in Section 10.4.

          “Trademark Assignment” shall mean that certain Trademark Assignment dated as of the Closing
Date between the Seller and the Buyer, in substantially the form of Exhibit D hereto.

          “Transfer Costs” shall have the meaning set forth in Section 6.4.

          “Transferred Assets” shall have the meaning set forth in Section 2.1(a).

          “Transferred Employee” shall have the meaning set forth in Section 5.6(a).

          “Transferred IP” shall have the meaning set forth in Section 2.1(a)(v).

          “Transition Services Agreement” shall mean that certain Transition Services Agreement dated as
of the Closing Date between the Seller and the Buyer, in substantially the form of Exhibit F
hereto.

          “U.S. Employees” shall mean the Business Employees set forth on Section 1.1 of the
Disclosure Schedule.

          “Vendors” shall have the meaning set forth in Section 4.1(v).

          “VI” shall mean Virtual Instruments Corporation, a company incorporated under the laws of the
Cayman Islands and formerly known as White Dove Acquisition Corporation.

          “VI License” shall mean that certain License Agreement, dated as of June 12, 2008 between the
Seller and VI.

          “VI Transition Services Agreement” shall mean that certain Transition Services Agreement by
and between VI and the Seller effective as of June 12, 2008.

          “Violation” shall have the meaning set forth in Section 4.1(d).

          “Warranty Liabilities” shall mean those Liabilities of the Seller and its Subsidiaries for
Products shipped on or prior to the Closing Date accruing in accordance with the warranties set
forth in Section 4.1(v) of the Disclosure Schedule.

          “WARN” shall have the meaning set forth in Section 4.1(o)(ii).

     1.2 Rules of Construction. References in this Agreement to any gender include
references to both genders, and references to the singular include references to the plural and
vice versa. The words “include,” “includes” and “including” when used in this Agreement shall be
deemed to be followed by the phrase “without limitation”. Unless the context otherwise requires,
references in this Agreement to Articles, Sections and Schedules shall be deemed

10

 

references to Articles and Sections of, and Exhibits and Schedules to, this Agreement. Unless
the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar
meaning when used in this Agreement refer to this Agreement in its entirety and not to any
particular Article, Section or provision of this Agreement. The table of contents and headings
contained in this Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

ARTICLE II

PURCHASE AND SALE OF THE TRANSFERRED ASSETS

     2.1 Purchase and Sale of Transferred Assets. 

          (a) Subject to the terms and conditions set forth in this Agreement, at the Closing and as of
the Closing Date, the Seller shall sell, transfer, convey, assign and deliver to the Buyer, and the
Buyer shall purchase and acquire, all of the Seller’s right, title and interest in, to and under
all of the properties, assets, rights and claims used exclusively in or held for use exclusively in
the conduct or operation of the Business as the same may exist on the Closing Date and as such
Business is presently contemplated to be conducted by the Seller, whether tangible or intangible,
including all right, title and interest of the Seller in, to and under the following to the extent
used exclusively in or held for use exclusively in the conduct or operation of the Business and as
such Business is presently contemplated to be conducted by the Seller:

          (i) any and all of the Seller’s owned or leased tangible personal property wherever
located, including machinery, mobile and immobile equipment, transportation equipment, parts,
test equipment, lab equipment supplies and other tangible personal property, including those
listed on Schedule 2.1(a), with locations;

          (ii) the furniture and office equipment located in the Texas Facility, as listed on
Schedule 2.1(a) hereof;

          (iii) the Inventory;

          (iv) any and all of the Contracts to which the Seller is a party, including all rights
to receive goods and services purchased pursuant thereto and all claims and rights to take
any other actions arising out of or related to such Contracts or the Transferred Assets, or
in respect thereof, including those listed on Schedule 2.1(a) (“Assigned Contracts”);

          (v) any and all Intellectual Property, including those Patents listed on Schedule 2.1(a)
(collectively, the “Transferred IP”), it be agreed, however, that the only Patents to be
included in the Transferred IP will be (i) the Patents listed on Schedule 2.1(a) and (ii) any
other Patents that are useful exclusively in the Business;

          (vi) any and all Licenses and Permits to the extent transferable under applicable Law
and all rights under any licenses or permits from third parties other than Governmental
Authorities, including those listed on Schedule 2.1(a);

11

 

          (vii) any and all Books and Records;

          (viii) any and all rights under express or implied warranties, representations or
guarantees, and to product support or maintenance, made by suppliers furnishing goods
(including the personal property and equipment referred to herein) or services to the
Business or in connection with the Transferred Assets;

          (ix) any and all information systems, hardware, telephone systems, software systems,
database and database systems, computers (including all computers of all Business Employees),
servers, workstations, communications and networking equipment and any and all rights
thereunder, including those listed on Schedule 2.1(a), it being agreed, however, that the
categories of systems, computers and other equipment listed on Schedule 2.1(a) will be the
only such categories of assets included in the Transferred Assets;

          (x) any and all insurance proceeds received or receivable by the Seller in respect of
the Business or any Transferred Assets (as defined below) as a result of any damage or claim
occurring after the Closing Date and any rights, claims or causes of action existing or
arising in respect of the Business or the Transferred Assets under the Seller’s insurance
policies;

          (xi) any and all claims, causes of action, choses in action, rights of recovery and
rights of set-off of any kind, pertaining to or arising out of the Business and the
Transferred Assets (including without limitation the SerialTek Litigation after the Closing
Date) other than the portion of the Recovery payable to the Seller in accordance with
Section 5.15; and

          (xii) any and all goodwill and going concern value of the Business.

     The properties, assets, rights and claims to be purchased by the Buyer pursuant to this
Section 2.1(a) shall collectively be referred to herein as the “Transferred Assets.” If an
asset used exclusively in or held for use exclusively for the Business is not specifically listed
in Schedule 2.1(b) or referred to in Section 2.1(b) as an “Excluded Asset,” it will be
deemed a “Transferred Asset.” To the extent any Transferred Asset is owned or otherwise held by a
Subsidiary of the Seller, the Seller covenants and agrees that references in this Section
2.1 to the Seller shall mean the Seller and any Subsidiary of the Seller, and any such
Subsidiary shall transfer, assign and sell such asset as of the Closing to the Buyer pursuant to
this Section 2.1 in the same manner as if such asset were owned or otherwise held directly
by the Seller.

          (b) For the avoidance of doubt, the Transferred Assets shall not include, and the Seller shall
retain all of its existing right, title and interest in, to and under, each of the following assets
(the “Excluded Assets”):

          (i) any tangible or intangible assets of the Seller not used exclusively in the
Business;

12

 

          (ii) all cash (including checks received on or prior to the Effective Time), commercial
paper, certificates of deposit and other bank deposits, treasury bills and other cash
equivalents;

          (iii) all specified assets of the Business listed on Schedule 2.1(b) hereof;

          (iv) any shares of Capital Stock or other securities of VI held by the Seller;

          (v) the minute books for the board of directors, committees or stockholders’ meetings,
incorporation documents, stock transfers and Tax Returns or similar or related corporate
records of the Seller;

          (vi) all accounts receivable of the Business for Product shipments that occurred on or
prior to the Closing Date;

          (vii) all assets owned or held by any Seller Plan or any ERISA Affiliate;

          (viii) the assets of any Seller Plan qualified under Section 401(a) of the Code;

          (ix) the portion of the Recovery payable to the Seller in accordance with Section
5.15; and

          (x) except as to the Texas Facility Lease Agreement as provided in Section
2.2(a)(iii) below, all right, title and interest in, to and under the Leases related to
the Business, and all buildings, structures, fixtures and other improvements situated
thereon.

     2.2 Assumption of Liabilities.

          (a) At the Closing and as of the Closing Date, the Buyer shall assume and agree to pay,
discharge or perform when due the following specific Liabilities related solely to the Business and
the Transferred Assets as expressly and to the extent set forth below (the “Assumed Liabilities”):

          (i) Liabilities accruing after the Closing Date pursuant to the VI License and the
Assigned Contracts other than Liabilities associated with any Assigned Contract that by its
terms requires Approval unless and until such Approval is obtained; provided that the Buyer
shall be liable for actions taken by the Buyer after the Closing Date under any such Assigned
Contract;

          (ii) Upon receipt from VI of its written consent of the assignment of Section IV
Subsections (a)-(c) and Section VII of Schedule One of the VI Transition Services Agreement
to the Buyer, Liabilities accruing after the Closing Date pursuant to Section IV Subsections
(a)-(c) and Section VII of Schedule One of the VI Transition Services Agreement;

13

 

          (iii) If prior to the Effective Time the Landlord provides its written consent for the
Buyer to assume the Texas Facility Lease Agreement, Liabilities accruing after the Closing
Date pursuant to the Texas Facility Lease Agreement; provided, however, in no event shall the
Buyer shall assume any liabilities arising under Environmental Laws arising from or related
to the Seller’s operation of the Texas Facility on or prior to the Closing Date;

          (iv) Liabilities under the Non-Inventory Purchase Orders;

          (v) Liabilities related to the SerialTek Litigation, including without limitation any
and all costs, expenses, and attorneys’ fees that may be incurred by Seller relating to the
SerialTek Litigation, excepting only (a) the Seller Phase 1 Expenses and (b) all costs, fees
and expenses related to the SerialTek Litigation that were incurred by Seller prior to the
Effective Time; and

          (vi) Warranty Liabilities accruing in accordance with the warranties set forth in
Section 4.1(v) of the Disclosure Schedule.

          (b) Notwithstanding anything set forth in Section 2.2 hereof or in Schedule 2.2(a),
the Buyer shall not assume pursuant to this Agreement or the transactions contemplated hereby or
otherwise any Liabilities of the Seller or any of the Seller’s Subsidiaries or other Affiliates
other than the Assumed Liabilities, and the Seller and its Subsidiaries or other Affiliates shall
retain all such other Liabilities, whether arising prior to, on or after the Closing Date,
including:

          (i) Liabilities not related to the Business or otherwise arising with respect to the
Excluded Assets;

          (ii) Liabilities arising from the breach or infringement or alleged breach or alleged
infringement of third party intellectual property rights as a result of the conduct of the
Business or the Products or the use of the Transferred IP or Licensed IP by the Seller or any
of its Subsidiaries or Affiliates prior to the Closing Date;

          (iii) Liabilities arising prior to the Effective Time relating to any Business Employee
whether or not arising under or in respect of any Seller Plan;

          (iv) Liabilities for Taxes with respect to the Pre-Closing Tax Period or related to any
Excluded Assets;

          (v) Liabilities to or with respect to or incurred in connection with any Seller Plan;

          (vi) Liabilities under or relating to Environmental Laws arising prior to the Closing or
related to any Excluded Asset;

          (vii) Liabilities related to any litigation involving the Business other than related to
the SerialTek Litigation;

14

 

          (viii) Liabilities of the Seller or its Subsidiaries or Affiliates to any broker, finder
or agent for any investment banking or brokerage fees, finder’s fees or commission with
respect to the transactions contemplated by this Agreement;

          (ix) Liabilities set forth in Schedule 2.2(b);

          (x) Liabilities related to any return of Inventory or Products that the Seller or the
Seller’s Affiliates are required to accept other than those pursuant to Warranty Liabilities;

          (xi) any Pre-Closing Product Liabilities;

          (xii) any and all Liabilities related to Contracts, other than Covered Licenses, that
are not assigned to Buyer;

          (xiii) Liability to pay the Seller Phase 1 Expenses; and

          (xiv) Any other Liabilities, other than the Assumed Liabilities, relating to the
Business, the Products, the Transferred Assets or the Business Employees arising out of the
operation or ownership of the Business or the employment of the Business Employees, in each
case, prior to or as of the Closing Date regardless of when such Liabilities are known by a
Person.

          The Liabilities retained by the Seller and its Subsidiaries and Affiliates pursuant to this
Section 2.2(b) are referred to herein as the “Excluded Liabilities.”

          (c) The Buyer covenants and agrees with the Seller that the Buyer shall be solely responsible
for payment of the Assumed Liabilities effective as of the Closing. The Seller covenants and
agrees with the Buyer that the Seller shall be solely responsible for the payment of all Excluded
Liabilities.

     2.3 Sale of Transferred Assets and Assumption of Assumed Liabilities. The Transferred
Assets shall be sold, conveyed, transferred, assigned and delivered, and the Assumed Liabilities
shall be assumed, pursuant to an assignment and assumption agreement or other instruments in such
form as is necessary to effect a conveyance of the Transferred Assets and an assumption of the
Assumed Liabilities in the jurisdictions in which such transfers are to be made, and which in all
instances shall be reasonably satisfactory to the Buyer and the Seller, to be executed (upon the
terms and subject to the conditions hereof) on the Closing Date by the Seller and/or its applicable
Subsidiaries and other Affiliates and the Buyer and such other assignment and assumption agreements
as may be required in any such jurisdictions.

     2.4 Payments Post-Closing.

          (a) If, following the Closing Date, the Seller receives any payment or other proceeds any
portion of which relates to any of the Transferred Assets or otherwise relates to the conduct or
operation of the Business following the Closing Date, the Seller shall promptly remit to the Buyer
the amount of any such payments. Notwithstanding the foregoing, the parties agree that the Seller
shall have no obligation to remit any amount received by the Seller in payment of

15

 

accounts receivable of the Business for Product shipments that occurred on or prior to the
Closing Date.

          (b) If, following the Closing Date, the Buyer receives any payment or other proceeds any
portion of which relates to any of the Excluded Assets, including any accounts receivable of the
Business for Product shipments that occurred on or prior to the Closing Date, the Buyer shall
promptly remit to the Seller the amount of any such payments.

     2.5 Tax Withholding. Notwithstanding any other provision in this Agreement, except to
the extent that the Seller provides the Buyer with a certificate exempting the Seller from a
withholding obligation, the Buyer (and any other Person that has any withholding obligation with
respect to any payment made pursuant to this Agreement) shall be entitled to deduct and withhold
from the payments to be made pursuant to this Agreement any Taxes required to be deducted and
withheld with respect to the making of such payments under the Code or any other applicable
provision of law. To the extent that amounts are required to be deducted and withheld, the Seller
shall work with the Buyer to mitigate any such withholding requirements. To the extent that
amounts are so withheld pursuant to this Section 2.5, such withheld amounts shall be
treated for all purposes of this Agreement as having been paid to such Person in respect of which
such deduction and withholding was made. The Seller represents and warrants to the Buyer, that as
of the date hereof, to the Seller’s Knowledge, the Seller is not aware of any withholding
obligation on the part of the Buyer in connection with the consummation of the transactions
contemplated hereby. Based on the information provided by the Seller as set forth in Exhibits B
through D on Schedule 2.1(a)(i), the Buyer represents and warrants to the Seller that as of the
date hereof, to the Buyer’s Knowledge, the Buyer is not aware of any such withholding obligation in
connection with the consummation of the transactions contemplated hereby. If the Buyer becomes
aware of any withholding obligation in connection with the consummation of the transactions
contemplated hereby between the date hereof and the Closing Date, the Buyer will promptly, and in
any event prior to any such withholding, notify the Seller of such obligation immediately upon
becoming aware of such withholding obligation.

     2.6 No Assignment in Certain Circumstances. Notwithstanding anything else contained
in this Agreement to the contrary, this Agreement shall not constitute an agreement to sell,
convey, assign, transfer or deliver any interest in any instrument, commitment, Contract, lease,
License and Permit or other agreement or arrangement or any claim, right or benefit arising
thereunder or resulting therefrom if such a transfer or an attempt to make such a transfer without
the authorization, approval, consent or waiver (collectively, “Approval”) of a third party would
constitute a breach or violation thereof, or affect adversely the rights of the Buyer, the Seller
or the Seller’s Subsidiaries and other Affiliates thereunder, or constitute a Material Adverse
Effect; and any such transfer to the Buyer that requires the Approval of a third party shall be
made subject only to such Approval being obtained. The Seller shall obtain any such Approvals
listed on Schedule 7.3(a) prior to the Closing, and shall use commercially reasonable efforts to
obtain any other required Approval, and the Buyer shall reasonably cooperate in connection
therewith. Notwithstanding the foregoing, if, after commercially reasonable attempts over no fewer
than five (5) days following the date hereof, the Seller determines that such Approval is not
likely to be obtained using commercially reasonable efforts with respect to one or more of the
agreements listed on Schedule 2.6 (the “Covered Licenses”), then the Seller shall

16

 

notify the Buyer of such determination in writing (each, a “No Consent Notice”) and,
thereafter, the Seller shall have no further obligation to obtain Approval with respect to the
applicable Covered Licenses. The Buyer shall receive all of the Seller’s or the Seller’s
Subsidiary’s and other Affiliate’s right, title and interest in any Transferred Asset with respect
to which such Approval is required, including performance by the Seller or the Seller’s Subsidiary
or other Affiliates, as agent; provided, however, that any and all consent and assignment costs or
charges relating to such Contracts, including payments slated to be due in connection with the
sale, transfer, or other disposition of the Business or Transferred Asset by the Seller, shall be
paid by the Seller.

ARTICLE III

PURCHASE PRICE

     3.1 Purchase Price. The Purchase Price shall be payable in cash by wire transfer of
immediately available funds to an account designated by the Seller.

     3.2 Allocation of Purchase Price. The Buyer and the Seller agree to allocate the
Purchase Price among the Transferred Assets and the Assumed Liabilities (the “Allocation”) as
provided in Schedule 3.2 hereof. The Buyer and the Seller agree that the Allocation shall be made
pursuant to the following procedure: The Buyer shall prepare at its cost and expense and deliver
to the Seller a proposed allocation of the Purchase Price and Assumed Liabilities among the
Transferred Assets (“Buyer’s Appraisal”) within sixty (60) days after the Closing Date. The Seller
shall accept and agree to the allocation unless such allocation is unreasonable, in which case the
Seller shall deliver written notice to the Buyer within thirty (30) days after the Seller’s receipt
of Buyer’s Appraisal. If the Seller so objects to the Allocation based on Buyer’s Appraisal, the
Seller and the Buyer will attempt in good faith to resolve any such disagreement. If the Seller
and the Buyer are unable to reach an agreement on the Allocation within thirty (30) days of the
Seller’s notice of its objection to Buyer’s Appraisal, any disagreement shall be resolved by the
submission of Buyer’s Appraisal and any information upon which the Seller relies to object to
Buyer’s Appraisal to a qualified valuation firm mutually acceptable to the Buyer and the Seller
(the “QV Firm”). In the absence of agreement with respect to the selection of the QV Firm, the
Buyer shall be entitled to select the QV Firm. The Seller shall bear any and all costs incurred in
engaging the QV Firm with respect to the Allocation. The Buyer and the Seller further agree to act
in accordance with the Allocation (including any allocation made by the QV Firm), if any, in any
Tax Returns or similar filings. In the event that any Tax authority disputes the Allocation, if
any, the Seller or the Buyer, as the case may be, shall promptly notify the other party of the
nature of such dispute.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     4.1 Representations and Warranties of the Seller. The Seller represents and warrants
to the Buyer that the representations and warranties contained in this Section 4.1 are true
and correct as of the date hereof, except as set forth in the Disclosure Schedule. The Disclosure
Schedule shall be arranged in sections and subsections corresponding to the

17

 

numbered and lettered sections and subsections contained in this Agreement. The disclosures
in any section or subsection of the Disclosure Schedule shall qualify such other sections or
subsections in this Section 4.1 only to the extent it is reasonably apparent from a reading
of the disclosure item that such disclosure is applicable to such other section or subsection. A
mere listing of an agreement, document or instrument is not sufficient to qualify or respond to a
representation or warranty requiring disclosure, except for a representation and warranty that
calls for a listing of such agreements, documents or instruments (nor shall the contents or
provisions of such an agreement, document or instrument be deemed disclosed merely by a listing of
the same).

          (a) Due Organization and Power. The Seller is a corporation duly organized, validly
existing and in good standing under the laws of Delaware. Each of the Seller and its Subsidiaries
(i) has all requisite corporate power and authority to own and lease the Transferred Assets and to
operate the Business as it is now being conducted, and (ii) is in good standing and is duly
qualified to do business in each jurisdiction in which the nature of the Business or the ownership,
leasing or operation of the Transferred Assets makes such qualification necessary, except where the
failure to so qualify or be in good standing, individually or in the aggregate, has not had, and
would not reasonably be expected to have, a Material Adverse Effect. Section 4.1(a) of the
Disclosure Schedule lists all jurisdictions where the Business is currently doing business, or
where the Transferred Assets are located.

          (b) Subsidiaries.

          (i) The Seller does not own or hold, directly or indirectly, any equity interest of any
kind in any Person that conducts the Business or owns assets or properties or conducts
operations used or held for use in, or related to, the Business; and

          (ii) Neither the Seller nor any of its Subsidiaries has, owns or controls (of record or
beneficially), directly or indirectly, any interest in any other Person, or is a party to or
participant in any partnership, joint venture or other similar investment, related to the
Business. Neither the Seller nor any of its Subsidiaries is subject to any obligation or
requirement to provide funds to or make any investment (whether in the form of a loan,
capital contribution or otherwise) in any Person related to the Business.

          (c) Authorization and Validity of Agreement and Ancillary Agreements. The Seller has
all requisite corporate power and authority to enter into this Agreement and the Ancillary
Agreements and to consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance by the Seller of this Agreement and the Ancillary Agreements and the
consummation by the Seller of the transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action and no other corporate action or proceeding on
the part of the Seller is or will be necessary for the execution, delivery and performance by the
Seller of its obligations under this Agreement and the Ancillary Agreements and the consummation by
the Seller of the transactions contemplated hereby and thereby. No vote or approval of the
stockholders of the Seller is required to approve the Acquisition and the consummation of the
transactions contemplated by this Agreement or the Ancillary Agreements. This Agreement and the
Ancillary Agreements have been duly and validly executed and delivered by the Seller and, assuming
the due authorization, execution and

18

 

delivery hereof and thereof by the Buyer, constitute legal, valid and binding obligations of
the Seller, enforceable against the Seller in accordance with their respective terms, except to the
extent that their enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other Laws relating to or affecting creditors’ rights generally and by general equity
principles (whether considered in a proceeding in equity or at law).

          (d) No Conflict. The execution and delivery of this Agreement and the Ancillary
Agreements do not, and the consummation of the transactions contemplated hereby and thereby and
compliance with the terms hereof and thereof will not, (i) conflict with, or result in any
violation of, or constitute a default (with or without notice or lapse of time or both) under, or
give rise to a right of termination, cancellation, acceleration or increase of any obligation,
liability or fee or the loss of a benefit under, or the creation of a Lien (other than any
Permitted Liens) on the Transferred Assets (any such conflict, violation, default, right of
termination, cancellation or acceleration, loss or creation, a “Violation”) pursuant to, any
provision of the certificate of incorporation or by-laws or similar organizational documents of the
Seller or any of its Subsidiaries, (ii) result in any Violation of any of the Assigned Contracts or
any other contract to which the Seller or any of its Subsidiaries is a party that relates to the
Business, or (iii) result in any Violation of any Licenses and Permits, Order or Law applicable to
the Business or the Transferred Assets, except in the case of clauses (ii) or (iii) for any
Violation which, individually or in the aggregate, would not reasonably be expected to result in a
Material Adverse Effect.

          (e) Consents. No consent, approval, Order, Licenses and Permits, or registration,
declaration or filing with, or notice to, any Governmental Authority or of, with or from any other
Person, is required in connection with the execution and delivery of this Agreement and the
Ancillary Agreements by the Seller or the consummation by the Seller of the transactions
contemplated hereby or thereby, except for any such consents, approvals, Orders, Licenses and
Permits, registrations and filings which, if not obtained or made, individually or in the
aggregate, would not reasonably be expected to interfere in any material respect with the conduct
of the Business as currently conducted or with the release of any Products of the Seller that are
scheduled for release within the ninety (90) days after the date hereof.

          (f) Financial Information. The Business is not an identified reporting unit of the
Seller. As a result, financial statements of the Business are not prepared as part of the Seller’s
normal reporting process. Section 4.1(f) of the Disclosure Schedule sets forth the
unaudited, non-GAAP schedule of revenues, expenses and net contribution for the Business for the
fiscal year ended April 30, 2009, subject to non-GAAP adjustments to income and expense that are
customarily made by the Seller in its press releases and financial statements and the pro forma
adjustments described in the footnotes thereto (the “Financial Information”). The Financial
Information has been compiled by management from source documentation subject to the controls and
procedures of the Seller’s accounting systems.

          (g) Absence of Certain Changes. Except as contemplated by this Agreement, since May
1, 2009, there has not been any material changes in the financial condition or results of
operations of the Business. Except as contemplated by this Agreement, since May 1, 2009, the
Seller has not taken any of the following actions (or permitted any of the following events to
occur) with respect to the Business:

19

 

          (i) sold, assigned or transferred any material assets used exclusively in the Business,
except in the ordinary course of business;

          (ii) suffered any extraordinary losses (whether or not covered by insurance) to the
Business;

          (iii) made any commitments for capital expenditures in an amount in excess of $35,000;
or

          (iv) entered into any agreement or commitment with respect to any of the matters
referred to in paragraphs (i) through (iii) of this Section 4.1(g).

          (h) Properties.

          (i) There is no real property legally or beneficially owned by the Seller or any of its
Subsidiaries that is used exclusively in connection with the Business.

          (ii) The Seller is the current lessee under the Texas Facility Lease Agreement.
Attached to this Agreement as Exhibit L is a true, correct and complete copy of the Texas
Facility Lease Agreement, and except as set forth in said Exhibit, the Texas Facility Lease
Agreement has not been amended, modified, assigned, or sublet. The Texas Facility Lease
Agreement is in full force and effect. The Seller is not in material default or breach of
any of its obligations under the Texas Facility Lease Agreement and there is no circumstance
or event that with notice or lapse of time would constitute a material default or breach by
the Seller with respect to the same. To the Seller’s Knowledge, no other party to the Texas
Facility Lease Agreement is in default or breach of any of its obligations under the Texas
Facility Lease Agreement, and there is no circumstance or event that with notice or lapse of
time would constitute a default or breach by any such party with respect to the same.

          (i) Title to Transferred Assets; Sufficiency of Assets. The Seller and its
Subsidiaries have good, valid and marketable title, of record and beneficially, to all of the
Transferred Assets and at the Closing will transfer and deliver to the Buyer legal and valid title
to the Transferred Assets, free and clear of all Liens other than the Permitted Liens. The
Transferred Assets (assuming receipt of all necessary Approvals), together with the rights under
the License Agreement and the Transition Services Agreement, constitute all of the assets necessary
for the Buyer to conduct the Business in the manner in which it has been conducted by the Seller
prior to the date hereof and to release any Products of Seller that are scheduled for release
within the ninety (90) days after the date hereof. There is no asset that is used in the Business
that is not a Transferred Asset. That portion of the machinery, equipment and other tangible
assets included in the Transferred Assets necessary for the Buyer to conduct the Business in the
manner in which it has been conducted by the Seller prior to the date hereof is in good and usable
condition, ordinary wear and tear excepted and is otherwise suitable for the purposes for which it
is currently used.

20

 

          (j) Taxes.

          (i) To the Knowledge of the Seller and its Subsidiaries, all Tax Returns required to be
filed in connection with the Business have been timely filed. All material Taxes required to
be paid in connection with the Business (whether or not shown to be due on such Tax Returns)
have been timely paid. All such Tax Returns are true, correct and complete in all material
respects and were prepared in substantial compliance with all applicable laws and
regulations. To the Knowledge of the Seller, no claim has ever been made by any Governmental
Authority in any jurisdiction where the Seller does not file Tax Returns that the Seller is
or may be subject to taxation by that jurisdiction.

          (ii) To the Knowledge of the Seller, there is no material Tax Proceeding, investigation,
audit or examination proposed in writing or currently ongoing in connection with the Business
in respect of any Tax. To the Knowledge of the Seller, no deficiencies for any Taxes have
been proposed, asserted or assessed in connection with the Business. Neither the Seller nor
any of its Subsidiaries is currently the beneficiary of any extension of time within which to
pay any Tax or to file any Tax Return in connection with the Business. Neither the Seller
nor any of its Subsidiaries has waived any statute of limitations in respect of Taxes or
agreed to any extension of time with respect to a Tax assessment or deficiency.

          (iii) To the best of the Knowledge of the Seller and its subsidiaries, all Taxes
required to have been withheld in connection with the Business have been timely withheld and
timely paid over to the proper Governmental Authority, an all Forms W-2 and 1099 required
with respect thereto have been properly completed and timely filed.

          (iv) There is no Lien for Taxes upon any of the Transferred Assets (other than for Taxes
not yet due and payable). None of the Transferred Assets are “tax-exempt use property”
within the meaning of Section 168(h) of the Code.

          (v) To the Knowledge of the Seller, the Seller has no liability for the Taxes of any
Person (other than any member of its affiliated or combined Tax group) including (A) under
Section 1.1502-6 of the Treasury Regulations (or any similar provision of state, local or
foreign law), (B) as a transferee or successor or (C) by Contract.

          (k) Legal Proceedings. There are no Actions or Proceedings which are pending or, to
the Knowledge of the Seller, threatened that would interfere in any respect with the conduct of the
Business as currently conducted or challenging the validity of this Agreement or any Ancillary
Agreement or any of the transactions contemplated hereby or thereby. Neither the Seller nor any of
its Subsidiaries nor any of their respective properties is or are subject to any Order that
interferes in any material respect with the conduct of the Business or the Transferred Assets.
There are no formal or informal SEC inquiries or investigations, other governmental inquiries or
investigations or internal investigations or material whistle-blower complaints pending, or to the
Knowledge of the Seller with respect to SEC or other governmental inquiries or investigations,
threatened, that would interfere in any material respect with the conduct of the Business or the
Transferred Assets.

21

 

          (l) Licenses and Permits; Compliance with Laws. Except (other than in the case of
clauses (i) and (ii) below) as, individually or in the aggregate, has not and would not reasonably
be expected to materially interfere with the conduct of the Business as currently conducted or the
release any Products of the Seller that are scheduled for release within the ninety (90) days after
the date hereof:

          (i) the Seller owns or possesses all material Licenses and Permits, and has made all
filings, applications and registrations with all Governmental Authorities, and all such
Licenses and Permits are in full force and effect;

          (ii) no loss of any such Licenses and Permits is pending in any Proceeding or, to the
Knowledge of the Seller, has been threatened by a Governmental Authority, except for normal
expirations in accordance with the terms thereof or applicable Law and all such Licenses and
Permits may be transferred to the Buyer;

          (iii) the Seller and each of its Subsidiaries has complied with (A) all terms and
conditions of all Licenses and Permits and (B) all Laws applicable to the operation of the
Business and ownership or use of the Transferred Assets, and it has not received any written
notice nor does it have Knowledge of any pending Actions or Proceedings alleging facts which,
if true, would constitute a failure to comply with either (A) or (B) of this Section
4.1(l)(iii); and

          (iv) there are no (A) unresolved violations, criticisms or exceptions noted by any
Governmental Authority in any report, comment letter or other written statement relating to
or based on any examinations of the Business or, with respect to the Business and the
Transferred Assets, the Seller or its Subsidiaries or (B) written agreements, memoranda of
understanding, commitment letters or similar undertakings with or Orders from any
Governmental Authority which relate specifically to the Business and the Transferred Assets.

          (m) Environmental Matters. Except as, individually or in the aggregate, has not had,
and would not reasonably be expected to have, a Material Adverse Effect:

          (i) The Seller and its Subsidiaries are, and at all times since May 1, 2007 have been,
in compliance with all Environmental Laws related to the Business and the Transferred Assets
and, to the Knowledge of the Seller, there is no condition that would, individually or in the
aggregate, reasonably be expected to prevent compliance with all Environmental Laws in the
future;

          (ii) Seller’s leasehold right, title and interest in the Texas Facility (including
soils, groundwater, surface water, buildings, equipment or other structures or facilities)
does not contain and is not contaminated with any Hazardous Substance and no foreseen or
proposed alterations or improvements are required within three (3) years from the date hereof
in relation to such Texas Facility in order to maintain compliance with Environmental Laws;
and

          (iii) Neither the Seller nor any of its Subsidiaries has received any written notice,
demand, letter, claim or request for information alleging that the Seller or

22

 

the Business, is in violation of or subject to liability under any Environmental Law
related to the Texas Facility.

          (n) Employee Benefit Plans.

          (i) No plan currently or ever in the past maintained, sponsored, contributed to or
required to be contributed to by the Seller, any of its Subsidiaries, or any of their
respective ERISA Affiliates, is or ever in the past was (i) a “multiemployer plan” as defined
in Section 3(37) of ERISA, (ii) a plan described in Section 413 of the Code, or (iii) a plan
subject to Title IV of ERISA, Section 302 of ERISA, or Section 412 of the Code.

          (ii) To the Knowledge of the Seller, all contributions required to be made to the Seller
Plans have in fact been timely made in all material respects. The Seller Plans have been
established, maintained and administered in compliance in all material respects with their
terms and all applicable statutes, laws, ordinances, rules, orders, decrees, judgments,
writs, and regulations of any controlling Governmental Authority.

          (iii) The Seller and its Subsidiaries have complied in all material respects with all
applicable health care continuation requirements in Section 4980B of the Code and in ERISA.

          (iv) With respect to any Seller Plan that is maintained outside the jurisdiction of the
United States or covers any employee residing or working outside the United States (any such
Seller Plan, a “Foreign Benefit Plan”) and to the Knowledge of the Seller, (A) all Foreign
Benefit Plans have been established, maintained and administered in compliance in all
material respects with their terms and all applicable statutes, laws, ordinances, rules,
orders, decrees, judgments, writs, and regulations of any controlling Governmental Authority,
(B) all Foreign Benefit Plans that are required to be funded are fully funded, and with
respect to all other Foreign Benefit Plans, adequate reserves therefore have been established
on the Business Balance Sheet, and (C) no Liability of the Seller or its Subsidiaries exists
with respect to such Foreign Benefit Plans.

          (o) Labor Matters.

          (i) Neither the Seller nor any of its Subsidiaries is a party to any U.S. or non-U.S.
collective bargaining agreement or other labor union contract (or is subject to any statutory
scheme of similar import) applicable to all or any of the Transferred Employees. None of the
Business Employees are represented by any labor union, works council, or other labor
organization. To the Knowledge of the Seller, there are no activities or proceedings of any
labor union or other labor organization to organize any Transferred Employees.

          (ii) There is no unfair labor practice charge or other material employment related
complaint pending or, to the Knowledge of the Seller, threatened in writing against the
Seller or any of its Subsidiaries before any Governmental Authority with respect to any
Transferred Employee, nor is there any material Action or Proceeding brought by or on behalf
of any Transferred Employee pending or, to the Knowledge of the

23

 

Seller, threatened in writing against the Seller or its Subsidiaries, in each case,
related to the operation of the Business. Neither the Seller nor any of its Subsidiaries is
a party to or bound by any consent decree with, or citation by, any Governmental Authority
relating to the employment of any Transferred Employees. There is no labor strike, slowdown
or work stoppage, lockout or labor disturbance pending or, to the Knowledge of the Seller,
threatened in writing by any Transferred Employee, nor is there any grievance currently being
asserted with respect to any Transferred Employee. The Seller and its Subsidiaries have paid
in full to all Business Employees all wages, salaries, commissions, bonuses, benefits and
other compensation due to such employees and neither the Seller nor any of its Subsidiaries
is liable for any severance pay or other payments to any Business Employee or former Business
Employee arising from the termination of employment or this Agreement. Neither the Seller
nor any of its Subsidiaries has closed any plant or facility, effectuated any layoffs of
employees or implemented any early retirement, separation or window program within the past
two (2) years affecting, in whole or in part, Transferred Employees, nor has any such party
planned or announced any such action or program for the future affecting, in whole or in
part, Transferred Employees. The Seller and its Subsidiaries are, and have operated the
Business, in compliance with their respective obligations pursuant to the Worker Adjustment
and Retraining Notification Act of 1988 (“WARN”) and similar applicable Laws, and all other
notification and bargaining obligations arising under any collective bargaining agreement,
statute or otherwise.

          (iii) The Preliminary PTO Schedule is a true and correct list of all PTO of the
Transferred Employees located in the United States on the date hereof, and the Closing PTO
Schedule will be a true and correct list of all PTO of the Transferred Employees in all
locations on the Closing Date.

          (iv) The Non-U.S. Employees and the U.S. Employees constitute all employees who are
exclusively engaged for purposes of conducting, and required in connection with the operation
of, the Business, other than the employees of the Seller located in Ipoh, Malaysia.

          (p) Intellectual Property.

          (i) Section 4.1(p)(i) of the Disclosure Schedule contains a complete and
accurate list (using the Seller’s internal identification method) of all Product families of
the Business.

          (ii) The Transferred IP and the Licensed IP constitute all of the Intellectual Property
necessary for the Buyer to conduct the Business in substantially the same manner as it is
currently operated including, to the Knowledge of the Seller, with respect to any Products of
the Seller that are scheduled for release within the ninety (90) days after the date hereof.
The Seller is the exclusive owner of all right, title and interest in and to (free and clear
of all Liens other than Permitted Liens) the Transferred IP and has the exclusive rights to
use, sell, license, assign, transfer, convey, dispose of, or otherwise commercially exploit
the Transferred IP. The Seller has the rights to license the Licensed IP on the terms set
forth in the License Agreement.

24

 

          (iii) Section 4.1(p)(iii) of the Disclosure Schedule contains an accurate and
complete list of all the Registered Transferred IP (as defined below) and the jurisdiction(s)
in which each item of Registered Transferred IP was or is filed or registered, and the
respective application or registration numbers and dates. Each item of Registered
Transferred IP is in compliance with all formal legal requirements (including payment of any
filing, examination and maintenance fees and proofs of use) and is valid and subsisting.
There are no actions that are required to be taken by the Seller within ninety (90) days of
the Closing Date with respect to the Registered Transferred IP, including the payment of any
registration, maintenance or renewal fees or the filing of any responses, documents,
applications or certificates for the purposes of obtaining, maintaining, perfecting or
preserving or renewing any Transferred IP. The rights of the Seller in any Transferred IP
have not lapsed or entered the public domain. The “Registered Transferred IP” means the
following United States and foreign Intellectual Property Rights owned by, filed in the name
of, or applied for by, the Seller that are part of the Transferred IP: (i) Patents, (ii)
registered trademarks, applications to register trademarks, including intent-to-use
applications, or other registrations or applications related to trademarks, (iii) copyrights
registrations and applications to register copyrights, (iv) registered mask works and
applications to register mask works, and (v) any other Intellectual Property that is the
subject of an application, certificate, filing, registration or other document issued by,
filed with, or recorded by, any Governmental Authority at any time.

          (iv) Section 4.1(p)(iv) of the Disclosure Schedule contains an accurate and
complete list of all material Transferred IP (other than Registered Transferred IP) and
Licensed IP (and designates which items are owned by the Seller), including material software
and unregistered trademarks.

          (v) The Seller and is Subsidiaries have not transferred ownership (or joint ownership),
granted or agreed to grant any license or other rights to use (except under any End User
Agreement), or authorized the retention of any rights to use or own any Intellectual Property
necessary for the conduct of the Business as currently conducted, including with respect to
any Products of the Seller that are scheduled for release within the ninety (90) days after
the date hereof. The Seller and its Subsidiaries have not permitted any third party to
modify, improve or create derivative works of any Transferred IP or own any Intellectual
Property Rights therein.

          (vi) Sections 4.1(p)(vi)(A) and (B) of the Disclosure Schedule list: (A)
all licenses, sublicenses and other agreements (other than End User Agreements) to which the
Seller or any of its Subsidiaries is a party and pursuant to which any third party is
authorized to use, exercise or receive any benefit from the Transferred IP and the Licensed
IP; and (B) all third parties to whom the Seller or any of its Subsidiaries has made
available copies of or disclosed, or promised to make available or disclose, or granted the
right to ascertain the source code containing or embodying any Transferred IP and the
Licensed IP, whether pursuant to an escrow arrangement or otherwise, and all parties who have
the right potentially to receive such source code. The Seller has made available to the
Buyer accurate and complete copies of all licenses, sublicenses, and other agreements
identified above and is in compliance with all material terms and conditions of such

25

 

licenses, sublicenses, and other agreements. With respect to Licensed IP, the Seller’s
representations under this Section 4.1(p)(vi) are made solely to the extent that any
of the foregoing may reasonably be expected to adversely affect any of the Buyer’s rights
under the License Agreement.

          (vii) No Person has asserted in writing, or threatened in writing to assert, any claims
or brought any actions or lawsuits (A) contesting the right of the Seller or any of its
Subsidiaries to use any Transferred IP or Licensed IP or any products, processes or materials
covered thereby in any manner or (B) challenging the ownership, validity or enforceability of
any Transferred IP or Licensed IP, in either case which remain unresolved and/or, to the
Knowledge of the Seller, which were asserted, threatened or brought within the six (6) years
prior to the date hereof; and there do not exist any facts which could form the basis of any
such claim, action or lawsuit other than: (i) any such matter described in clause (B) above
or (ii) a patent infringement claim, action, or lawsuit; and, to the Knowledge of Seller,
there do not exist any facts which could form the basis of any (x) claim action or lawsuit
with respect to any such matter described in Clause (B) above or (y) patent infringement
claim, action or lawsuit. No Transferred IP or Licensed IP is subject to any Order or
Contract related to or restricting in any manner the licensing, assignment, transfer, use or
conveyance thereof by the Seller. With respect to Licensed IP, the Seller’s representations
under this Section 4.1(p)(vii) are made solely to the extent that any of the
foregoing may reasonably be expected to adversely affect any of the Buyer’s rights under the
License Agreement.

          (viii) The Seller has not made any claims or brought any actions or lawsuits alleging
(A) infringement, misappropriation, or other misuse of any of the Transferred IP or Licensed
IP or (B) breach of any license, sublicense, nondisclosure agreement, or other agreement
authorizing another party to use any Transferred IP or Licensed IP, in either case which
remain unresolved and/or, to the Knowledge of the Seller, which were made or brought within
the six (6) years prior to the date hereof; and, to the Knowledge of the Seller, there do not
exist any facts which, to the Knowledge of the Seller, could form the basis of any such
claim, action or lawsuit. The Seller has not entered into any agreement granting any third
party the right to bring infringement, misappropriation, or other actions with respect to, or
otherwise to enforce rights with respect to, any of the Transferred IP or Licensed IP. With
respect to Licensed IP, the Seller’s representations under this Section 4.1(p)(viii)
are made solely to the extent that any of the foregoing may reasonably be expected to
adversely affect any of the Buyer’s rights under the License Agreement.

          (ix) To the extent that any Transferred IP or Licensed IP has been developed or created
independently or jointly by an independent contractor or other third party for the Seller, or
is incorporated into any of the Products, the Seller has obtained and retains ownership of,
and is the exclusive owner of all such independent contractor’s or third party’s Intellectual
Property in such work, material or invention by operation of law or valid assignment.

          (x) Sections 4.1(p)(x)(A) through (C) of the Disclosure Schedule list
all licenses, sublicenses and other agreements (other than “shrink-wrap,” “click-wrap” or

26

 

other generally available licenses) to which the Seller is a party and pursuant to which
the Seller (A) is authorized to use, exercise, or receive any benefit from any In-Licensed IP
(as defined below); (B) is required to license, assign or otherwise grant rights to
additions, modifications or improvements to In-Licensed IP made by or for the Seller to any
third party; and (C) is obligated to pay any ongoing fees, royalties or other payments to any
third party with respect to In-Licensed IP in order to conduct the Business as currently
conducted, including with respect to any Products of the Seller that are scheduled for
release within the ninety (90) days after the date hereof. The Seller has made available to
the Buyer copies of all licenses, sublicenses and other agreements identified above. The
Seller is in compliance with all material terms and conditions of all such licenses,
sublicenses, and other agreements. To the Knowledge of the Seller, there is no assertion,
claim or threatened claim, or facts that could serve as a basis for any assertion or claim,
that the Seller has breached any terms or conditions of such licenses, sublicenses, or other
agreements. “In-Licensed IP” means all Intellectual Property of a third party or Affiliate
exclusively used in the Business or incorporated into any Product. Except with respect to
payments under the licenses, sublicenses, and other agreements listed in Section
4.1(p)(x)(C) of the Disclosure Schedule, there are (and upon Closing will be) no
royalties, fees, or other payments payable to any Person (1) by reason of ownership, use,
license, sale or disposition of any Transferred IP or (2) by the Buyer as a result of the
rights granted under the License Agreement.

          (xi) No software covered by or embodying any Transferred IP or Licensed IP or Product
has been or is being distributed, in whole or in part, or was used, or is being used in
conjunction with any Open Source Software in a manner which would require that such software
or Product be disclosed or distributed in source code form or made available at no charge or
require the Seller or the Buyer to grant any rights in their or their Affiliates’
Intellectual Property Rights to a third party. “Open Source Software” means any software
that contains, or is derived in any manner (in whole or in part) from, any software that is
distributed as free software, open source software (e.g., Linux) or similar licensing or
distribution models, including software licensed or distributed under any of the following
licenses or distribution models, or licenses or distribution models similar to any of the
following: (A) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL), (B) the
Artistic License (e.g., PERL), (C) the Mozilla Public License, (D) the Netscape Public
License, (E) the Sun Community Source License (SCSL), (F) the Sun Industry Standards Source
License (SISSL), (H) the BSD License, and (I) the Apache License.

          (xii) Neither the operation of the Business nor the manufacture, use, importation, sale,
support, maintenance, modification or other commercial exploitation of any Product infringes
or misappropriates any Intellectual Property of any third party, or to the Knowledge of the
Seller violates any right of any third party (including any right to privacy or publicity) or
constitutes unfair competition or trade practices under the laws of any jurisdiction.

          (xiii) The Seller has not received any written notice from any third party that the
operation of the Business or the manufacture, use, sale, support, reproduction, modification
or other commercial exploitation of any Product infringes or misappropriates

27

 

the Intellectual Property of any third party, violates any right of any third party
(including any right to privacy or publicity), or constitutes unfair competition or trade
practices under the laws of any jurisdiction.

          (xiv) Assuming receipt of all Approvals with respect to the use of the In-Licensed IP,
the continued operation of all or any portion of the Business after the Closing in
substantially the same manner as it is operated by the Seller prior to the Closing will not
infringe or misappropriate any Intellectual Property of any third party except to the extent
such infringement or misappropriation would not have occurred if the Business were operated
in the same manner as it is operated by the Seller prior to the Closing.

          (xv) The consummation of the transactions contemplated by this Agreement will neither
violate nor result in the material breach, modification, cancellation, termination,
suspension of, or acceleration of any payments with respect to any contracts, licenses or
agreements relating to Transferred IP or In-Licensed IP. Following the Closing, assuming
receipt of all Approvals by the Buyer with respect to all such contracts, licenses, and
agreements, the Buyer will be permitted to exercise all of the rights of the Seller under
such contracts, licenses and agreements to the same extent the Seller would have been able
had the transactions contemplated by this Agreement not occurred and without the payment of
any additional amounts or consideration other than ongoing fees, royalties or payments which
the Seller would otherwise be required to pay. To the Knowledge of the Seller, all
In-Licensed IP is generally commercially available. Neither this Agreement nor the
transactions contemplated hereby, including the assignment to the Buyer of any Assigned
Contracts to which the Seller is a party, as agreed to by the Buyer, will result in (A) the
Buyer or any of its Affiliates granting to any third party any right to or with respect to
any material Intellectual Property right owned by, or licensed to, the Buyer or any of its
Affiliates other than the Transferred IP, or (B) the Buyer or any of its Affiliates being
bound by, or subject to, any non-compete or other material restriction on the operation or
scope of its business.

          (xvi) The Seller has taken all steps necessary under applicable Law and any agreement to
which the Seller is bound to protect and preserve the confidentiality of all trade secrets
and other confidential and proprietary Intellectual Property of, as applicable, the Seller
and its vendors, distributors, contractors, customers, employees, and other business partners
used in or obtained in connection with the Business, (“Confidential Information”). The
Seller has made available to the Buyer copies of all its (i) standard nondisclosure
agreements, (ii) nondisclosure agreements or other agreements relating to the handling,
disclosure, and use of Confidential Information incorporated into or used in the development
of production of the Products, and (iii) nondisclosure agreements otherwise requested by the
Buyer in writing prior to the date hereof. Without limiting the foregoing, the Seller has
and enforces a policy requiring each employee and consultant of the Seller to execute a
proprietary rights and confidentiality agreement substantially in the form provided to the
Buyer, and all current and former employees and consultants of the Seller with access to
Confidential Information or who have invented, authored, or otherwise developed Intellectual
Property have executed such an agreement (without taking any exception to such assignment).

28

 

          (xvii) Section 4.1(p)(xvii) of the Disclosure Schedule contains a list and
description of all standard-setting organizations, industry bodies and other
standards-related activities relating to the Business in which the Seller or any of its
Subsidiaries have participated and, to the extent not publicly available or already provided
by the Seller to the Buyer, a description of, or reference to, the membership agreements,
bylaws and Intellectual Property Rights and other policies, rules and similar materials
relating to such organizations, bodies and other activities.

          (xviii) The electronic data processing, information technology, record keeping,
communications, telecommunications, and computer systems and facilities at the Texas Facility
included in the Transferred Assets (including all software, hardware, networks,
communications facilities and platforms) (collectively, “Technology Systems”) perform at a
commercially reasonable level necessary for the current operation of the Business at the
Texas Facility. There has not been any material malfunction with respect to any of the
Technology Systems that has not been remedied in all material respects. In the twelve (12)
month period prior to the date hereof, there has been no failure, breakdown or continued
substandard performance of any Technology Systems that has caused a material disruption or
interruption in the operation of the Business at the Texas Facility. Assuming receipt by the
Buyer of all Approvals necessary under commercially available software used in such
Technology Systems, from and after the Closing Date, the Buyer will have and be permitted to
exercise the same rights with respect to the Technology Systems as the Seller and each of its
Subsidiaries would have been able to exercise had the Acquisition not occurred, without the
payment of any additional amounts or consideration (other than ongoing fees, royalties or
payments which the Seller or its Subsidiaries would otherwise have been required to pay).

          (xix) The Products are substantially free of any material defects, bugs and errors in
accordance with generally accepted industry standards, and, to the Knowledge of the Seller,
do not contain or make available any disabling codes or instructions, spyware, Trojan horses,
worms, viruses or other software routines that permit or cause unauthorized access to, or
disruption, impairment, disablement, or destruction of, software, data or other materials
(“Contaminants”). The Seller and each of its Subsidiaries have taken commercially reasonable
steps and implemented commercially reasonable safeguards to ensure that the Products are
substantially free from Contaminants.

          (xx) The Seller and all of its Subsidiaries have taken commercially reasonable measures,
with respect to the Business, to ensure that personally identifiable information is protected
against loss, damage, or unauthorized access, use, modification, or other misuse. The
execution, delivery and performance of this Agreement and the consummation of the Acquisition
complies with the Seller and each of its Subsidiaries’ applicable privacy policies and in all
material respects with all applicable Laws relating to privacy and data security (including
any such Laws in the jurisdictions where the applicable information is collected).

          (xxi) For purposes of Sections 2.1(a)(v) and 2.2(b)(ii), and this
Section 4.1(p), “use,” includes make, have made, reproduce, display or perform
(publicly or

29

 

otherwise), prepare derivative works based on, offer for sale, sell, distribute, import,
disclose, license, sublicense, dispose of, and otherwise use and exploit.

          (q) Brokers, Finders, etc. Subject to Section 4.2(e) of this Agreement, no
agent, broker, investment banker, financial advisor or other firm or Person is or will be entitled
to any broker’s or finder’s fee or any other similar commission or fee in connection with any of
the transactions contemplated by this Agreement.

          (r) Transactions with Related Persons. The Business does not include any Contracts
with any of the stockholders holding more than 5% of the Seller’s voting stock (on an as converted
to voting stock basis), directors, officers or to the Seller’s Knowledge, employees (or any
relative or spouse of any of the foregoing Persons or any other Subsidiaries of the foregoing
Persons) (collectively, “Related Persons”) of the Seller. No Related Person has any interest,
directly or indirectly, in any Contract, Lien or other agreement relating to the Business or to
which the Business or the Transferred Assets are subject.

          (s) Books and Records. The Books and Records are complete and correct in material
respects and have been maintained in accordance with good practices.

          (t) Certain Contracts. The Seller is not a party to or bound by any Contract relating
exclusively to the Business or the Transferred Assets that is not an Assigned Contract. No
Assigned Contract:

          (i) provides for any payment by or to the Seller in excess of $35,000 in any year or
which is not terminable within one year without penalty;

          (ii) limits (or purports to limit) in any way the ability of the Seller or any of its
Affiliates or Subsidiaries or of the Business to compete or engage in any line of business,
in any geographic area or with any Person, or which requires referrals of any business or
requires any of its Affiliates or Subsidiaries or the Business to make available investment
opportunities to any Person on a priority, equal or exclusive basis;

          (iii) provides for or requires any aggregate future payments in excess of $35,000 with
respect to, or in connection with, any capital expenditures or the acquisition or
construction of fixed assets;

          (iv) relates to the Seller having entered into a partnership, joint venture or
collaboration with any other Person;

          (v) relates to, or evidences, any indemnity or any guarantee of obligations of any
Person;

          (vi) imposes any confidentiality, non-disclosure or standstill obligation on the Seller
or its Subsidiaries (except confidentiality provisions entered into in the ordinary course of
business consistent with past practice) or the Business;

          (vii) contains any rights of returns or agreements with distributors covering returns of
Inventory or Products;

30

 

          (viii) grants any rights to make or distribute Products or, except consistent with the
Seller’s standard terms and conditions, make any modifications thereto,

          (ix) grants favored nation commitments; and

          (x) is not part of the Transferred Assets, unless such Contract is listed in Schedule
2.1(b) as an “Excluded Asset”.

The Seller has made available to the Buyer complete and accurate copies of each Assigned Contract.
All of the Assigned Contracts are valid and in full force and effect. Neither the Seller nor, to
the Knowledge of the Seller, any of the other parties thereto, has violated any provision of, or
committed or failed to perform any act which (with or without notice, lapse of time or both) would
constitute a material default under the provisions of any Assigned Contract. Each Assigned
Contract, assuming receipt of all Approvals required for the assignment to and assumption by the
Buyer of such Assigned Contracts, will be a valid and binding obligation of the Buyer upon
consummation of the transactions contemplated hereby and will be in full force and effect, except
to the extent that their enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other laws relating to or affecting creditors’ rights generally and by general equity
principles (whether considered in a proceeding in equity or at law).

          (u) Customers; Distributors and Vendors. Section 4.1(u) of the Disclosure
Schedule contains a list of the top 10 customers of the Business (in dollar value based on revenues
for each of the last two fiscal years) (“Key Customers”), a list of the top 10 distributors, value
added resellers, sales representatives and/or other participants in the distribution channel
related to the Products (in dollar value based on revenues) (“Distributors”), and a list of the top
10 suppliers of the Business (in dollar value based on expenditures), including contract
manufacturers, licensors and other service providers (“Vendors”), for each of the last two fiscal
years. None of the Key Customers, Distributors, or Vendors has ceased to do business with the
Seller with respect to the Business and, to the Knowledge of the Seller, as of the date hereof, no
such Key Customers, Distributors, or Vendors is currently threatening any material modification or
change in, or termination of, its business relationship with the Seller (directly or indirectly)
with respect to the Business.

          (v) Warranties; Indemnities. Section 4.1(v) of the Disclosure Schedule
contains the Seller’s standard terms and conditions of sale, purchase order, order acknowledgment
and warranty, and other similar business forms used with the Business. All customer purchaser
orders and customer purchases have been acknowledged with the Seller’s form terms and conditions,
including warranties and indemnities substantially similar in time, scope, and remedy to the
acknowledgement terms and conditions contained on Section 4.1(v) of the Disclosure
Schedule. The Seller has limited the maximum liability of the Seller and its Subsidiaries under
any warranty or indemnity to the price paid for such Product. Since May 1, 2005, no product
liability or warranty claim (including any claim based on strict product liability, negligence,
other tort theories, breach of express or implied warranty) has been asserted or threatened in
writing against the Seller or any of its Subsidiaries and distributors relating to any Product (or
represents, in the aggregate, with other similar claims any epidemic or widespread failure of any
Product), excluding any warranty claim in the ordinary course of business; and to

31

 

the Knowledge of the Seller, there do not exist any facts which, to the Knowledge of the
Seller, could form the basis of any such product liability claim or warranty claim, other than
warranty claims in the ordinary course of business. Neither the Seller nor any of its Subsidiaries
has received written notice alleging the need for any withdrawal or recall arising out of, and the
Seller and its Subsidiaries have not been liable for, any injury to individuals or property as a
result of the ownership, possession, use, or sale of any Product, and to the Knowledge of the
Seller, there do not exist any facts which, to the Knowledge of the Seller, could form the basis of
any such need or liability.

          (w) Export Restrictions. Neither the Seller nor any Subsidiary has exported or
transmitted the Transferred IP or the Licensed IP or other Products in connection with any of the
Transferred Assets or the Business to any country to which such export or transmission is
restricted by any United States Law, without first having obtained all necessary and appropriate
United States or foreign government licenses or permits. 

          (x) Inventory. Since May 1, 2009, the Seller has continued to replenish Inventories
in a normal and customary manner consistent with past practices. The Seller has not received
written notice that it will experience in the foreseeable future any difficulty in obtaining, in
the desired quantity and quality and at a reasonable price and upon reasonable terms and
conditions, the raw materials, supplies and component products required for the manufacture,
assembly or production of the Products. As of the date hereof, the Seller does not have any
Inventory in the distribution channel and does not have any commitments to purchase Inventory or
provide refunds relating to such Inventory.

          (y) Sales and Purchase Orders. All the sales orders, sales commitments and contracts
of the Seller to be assigned to the Buyer at Closing have been obtained from customers in the
ordinary course of business and all are in full force and effect. Section 4.1(y) of the
Disclosure Schedule lists all Non-Inventory Purchase Orders outstanding as of a date no more than
five (5) days prior to the date hereof. The Seller has made available to the Buyer true and
correct copies of all such Non-Inventory Purchase Orders (including all related order
acknowledgements and other business forms). All such Non-Inventory Purchase Orders have been
incurred in the ordinary course of business.

          (z) Restrictive Documents or Orders. The Seller is not a party to or bound under any
agreement, contract, order, judgment, or decree, or any similar restriction not of general
application which would or could reasonably be expected to materially and adversely affect (i) the
continued operation by the Buyer of the Business after the Closing on substantially the same basis
as said business was theretofore operated or (ii) the consummation of the transactions contemplated
by this Agreement.

          (aa) Foreign Corrupt Practices Act. Neither the Seller, nor to the Knowledge of the
Seller, any agent, employee, Representative, or Affiliate of the Seller acting (or purportedly
acting) on behalf of the Seller has, directly or indirectly, used any corporate funds for unlawful
contributions, gifts, entertainment or other unlawful expenses relating to political activity, made
any unlawful payment to foreign or domestic government officials or employees or to foreign or
domestic political parties or campaigns from corporate funds, violated any provision of the Foreign
Corrupt Practices Act of 1977, as amended, or made any bribe, rebate,

32

 

payoff, influence payment, kickback or other similar unlawful payment in connection with the
Seller’s operation of the Business or its ownership or use of the Transferred Assets.

     4.2 Representations and Warranties of the Buyer. The Buyer represents and warrants to
the Seller that the representations and warranties contained in this Section 4.2 are true
and correct as of the date hereof, except as set forth in the Buyer Disclosure Schedule provided by
the Buyer on the date of this Agreement (the “Buyer Disclosure Schedule”), attached hereto as
Exhibit K. The Buyer Disclosure Schedule shall be arranged in sections and subsections
corresponding to the numbered and lettered sections and subsections contained in this Agreement.
The disclosures in any section or subsection of the Buyer Disclosure Schedule shall qualify such
other sections or subsections in this Section 4.2 only to the extent it is reasonably
apparent from a reading of the disclosure item that such disclosure is applicable to such other
section or subsection. A mere listing of an agreement, document or instrument is not sufficient to
qualify or respond to a representation or warranty requiring disclosure, except for a
representation and warranty that calls for a listing of such agreements, documents or instruments
(nor shall the contents or provisions of such an agreement, document or instrument be deemed
disclosed merely by a listing of the same).

          (a) Due Organization. The Buyer is a Delaware corporation duly organized, validly
existing and in good standing under the laws of Delaware.

          (b) Authorization and Validity of Agreement and Ancillary Agreements. The Buyer has
all requisite corporate power and authority to enter into this Agreement and the Ancillary
Agreements to which it is a party and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by the Buyer of this Agreement and the Ancillary
Agreements to which it is a party and the consummation by the Buyer of the transactions
contemplated hereby and thereby have been duly and validly authorized by all necessary corporate
action and no other corporate action or proceeding on the part of the Buyer is or will be necessary
for the execution, delivery and performance by the Buyer of its obligations under this Agreement
and the Ancillary Agreements to which it is a party and the consummation by the Buyer of the
transactions contemplated hereby and thereby. This Agreement and the Ancillary Agreements to which
it is a party have been duly and validly executed and delivered by the Buyer and, assuming the due
authorization, execution and delivery hereof and thereof by the Seller, constitutes legal, valid
and binding obligations of the Buyer, enforceable against the Buyer in accordance with their
respective terms, except to the extent that their enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other Laws relating to or affecting creditors’ rights
generally and by general equity principles (whether considered in a proceeding in equity or at
law).

          (c) No Conflict. The execution and delivery of this Agreement and the Ancillary
Agreements to which it is a party do not and the consummation of the transactions contemplated
hereby and thereby and compliance with the terms hereof and thereof will not, (i) result in any
Violation of any provision of the certificate of incorporation or by-laws of the Buyer, (ii) result
in any Violation of any material agreement, note, bond, mortgage, guarantee, deed of trust,
indenture, lease, to which the Buyer is a party, or (iii) result in any Violation of any license,
permit, concession, exemption, consent, franchise, certificate, variance, approval, Order or Law
applicable to the Buyer or any of its properties, rights or assets, except in the case of

33

 

clauses (ii) or (iii) for any Violation which, individually or in the aggregate, would not
reasonably be expected to materially adversely effect the ability of the Buyer to perform its
obligations under this Agreement.

          (d) Legal Proceedings. There are no Actions or Proceedings pending, or to the
Knowledge of the Buyer, threatened against or affecting the Buyer or any of its properties, assets
or rights, and the Buyer is not subject to any Order rendered specifically against the Buyer which
seeks to enjoin, rescind or materially delay the transactions contemplated by this Agreement or
otherwise hinder the Buyer from timely complying with the terms and provisions of this Agreement.

          (e) Brokers, Finders, etc. Subject to Section 4.1(q) of this Agreement, no
agent, broker, investment banker, financial advisor or other firm or Person is or will be entitled
to any broker’s or finder’s fee or any other similar commission or fee in connection with any of
the transactions contemplated by this Agreement.

ARTICLE V

COVENANTS

     5.1 Information and Records.

          (a) No due diligence investigation by the Buyer shall affect the representations, warranties,
covenants and agreements of the Seller herein.

          (b) In order to facilitate the resolution of any claims made against or incurred by the Seller
prior to the Closing and in order for the Seller to prepare audited financial statements, for a
period of seven (7) years after the Closing, the Buyer shall (i) retain the originals of the Books
and Records, copies of which are transferred to the Buyer pursuant to this Agreement relating to
periods prior to the Closing in a manner reasonably consistent with the prior practices of the
Seller and (ii) upon reasonable notice, afford the officers, employees and Representatives of the
Seller reasonable access (including the right to make photocopies at the Buyer’s expense), during
normal business hours, to the Books and Records for such periods.

          (c) In order to facilitate the resolution of any claims made against or incurred by the Buyer
after the Closing or for any other reasonable purpose, including to prepare audited financial
statements, for a period of seven (7) years following the Closing, the Seller shall, and shall
cause its Subsidiaries to, (i) retain all books and records which are in its possession or control
as of the date hereof or as of the Closing Date and which are not transferred to the Buyer pursuant
to this Agreement and which relate to the Business for periods prior to the Closing and copies of
which shall not otherwise have been delivered to the Buyer, (ii) upon reasonable notice, afford the
officers, employees and Representatives of the Buyer, reasonable access (including the right to
make photocopies at the Buyer’s expense), during normal business hours, to such books and records
and (iii) provide all other forms of reasonable assistance to the Buyer to enable the Buyer to
prepare the Buyer’s financial statements.

     5.2 Conduct of the Business Prior to the Closing Date.

34

 

          (a) During the period commencing on the date hereof and continuing until the Closing or the
earlier valid termination of this Agreement, the Seller agrees that, except as expressly permitted
or required by this Agreement or to the extent that the Buyer shall otherwise consent in advance in
writing, the Seller shall carry on the Business only in the ordinary course of business and
consistent with past practice including commercially reasonable efforts to preserve intact, protect
and maintain the Business.

          (b) Without limiting the generality of clause (a) above, from the date of this Agreement to
the Closing or earlier valid termination of this Agreement, the Seller shall not do any of the
following, unless approved or consented to in advance in writing by the Buyer:

          (i) except in the ordinary course of business, sell, lease, assign, transfer, license,
sublicense, encumber or otherwise dispose of, in whole or in part, any of the Transferred
Assets, or otherwise extend, amend or modify any rights thereto;

          (ii) enter into, cancel, rescind, terminate, renew, assign or make any material change
to any Assigned Contract, other than the expiration of an Assigned Contract in accordance
with its terms in effect as of the date hereof;

          (iii) enter into any Contract that by its terms could after the Closing limit or
restrict the Buyer or any of its Affiliates (or any successors thereto) from engaging or
competing in any line of business or in any geographic area, or require referrals of any
business or require the Buyer or any of its Affiliates to make available any investment
opportunities to any Person on a priority, equal or exclusive basis;

          (iv) (A) increase the compensation or benefits of any Business Employee or consultant
or independent contractor of the Business, or (B) loan or advance any money or other
property, or make any payment or distribution of any compensation, to any Business Employee
or consultant or independent contractor of the Business;

          (v) terminate any Business Employees other than for cause or hire any new Business
Employees;

          (vi) transfer, abandon or grant any material right under, enter into any settlement
regarding, or institute any Action or Proceeding or assert any claim regarding, the breach
or infringement of, any Transferred IP or take any of the foregoing actions to the extent
that such actions may reasonably be expected to adversely affect any of the Buyer’s rights
under the License Agreement;

          (vii) (A) institute, settle or agree to settle any Action or Proceeding by or before
any Governmental Authority that creates or imposes any continuing obligation or restriction
on the Business or would otherwise constitute an Assumed Liability or (B) waive, release or
relinquish any material claims or rights relating to the Business or the Transferred Assets;

          (viii) incur any capital expenditures or other Liabilities in excess of $35,000
individually or $75,000 in the aggregate that would constitute an Assumed Liability;

35

 

          (ix) (A) accelerate the delivery or sale of Products other than at the request of the
purchaser of such Products and in the ordinary course of business consistent with past
practices or (B) other than in the ordinary course of business consistent with past
practices, offer discounts or price protection on the sale of Products or services;

          (x) enter into, renew, or modify or amend in any material respect any Contract (A)
relating to the distribution, sale, license or marketing by third parties of Products, or
(B) to provide professional services or software implementation, deployment or development
services related to the Business, in each case other than new End User Agreements or
renewals of existing End User Agreements, in each case for a term of one year or less and
otherwise in a manner consistent with past practices (including future maintenance or
service obligations under any such Contract and the allocation of revenue under any such
Contract to future maintenance or service obligations); provided that in no event shall any
End User Agreement (or modification or amendment to any End User Agreement) contain pricing,
discounting, service or maintenance terms or provisions other than in the ordinary course of
business consistent with past practices;

          (xi) issue or enter into any Non-Inventory Purchase Order in excess of $20,000; or

          (xii) otherwise commit to do, or take any action or omit to take any action that would
result in, any of the foregoing.

     5.3 Non-Solicitation. The Seller agrees that for a period of twenty-four (24) months
from and after the Closing Date it shall not, and shall cause its Affiliates and Subsidiaries not
to, directly or indirectly, solicit to hire (or seek to cause to leave the employ of the Buyer or
its Affiliates) (i) any Business Employee who receives an offer of employment with the Buyer, (ii)
any consultant or independent contractor who receives an offer to provide services to the Buyer
within six (6) months from and after the Closing Date, or (iii) any Person employed by the Buyer or
any of its Affiliates who became known to or was identified to the Seller in connection with the
transactions contemplated by this Agreement, unless, in the case of clause (i) or (ii) above, such
Person ceased to be an employee of the Buyer or its Affiliates prior to such action by the Seller,
or, in the case of such Person’s voluntary termination of employment with the Buyer or the Seller,
at least four (4) months prior to such action by the Seller. Notwithstanding the foregoing, the
restrictions set forth in this Section 5.3 shall not apply to bona fide public
advertisements for employment placed by the Seller and not specifically targeted at the employees
of the Buyer or its Affiliates.

     5.4 Non-Competition.

          (a) In consideration of the Buyer entering into this Agreement and in order that the Buyer may
enjoy the full benefit of the Transferred Assets and the Business, for a period of twenty-four (24)
months from and after the Closing Date (the “Noncompetition Period”), neither the Seller nor any of
its respective Affiliates or Subsidiaries shall, directly or indirectly, whether as principal,
agent, partner, officer, director, licensor, stockholder, consultant or otherwise, alone or in
association with any other Person, own, manage, operate, control, participate in, invest in,

36

 

or otherwise carry on, a business, an entity or a person which, directly or indirectly, is in
competition with the Business in the Field of Use in North America, Europe, Japan, Asia, the
Pacific Rim and any other jurisdiction where the Business is currently conducted or where any
Products are scheduled for release within the ninety (90) days after the date hereof. As part of
the foregoing covenant and restriction, the Seller and its respective Affiliates and Subsidiaries
shall not, directly or indirectly, perform services in the Field of Use for any other Person.

          (b) The Seller acknowledges and agrees that the remedy at law for any breach, or threatened
breach, of any of the provisions of this Section 5.4 will be inadequate and, accordingly,
the Seller covenants and agrees that the Buyer shall, in addition to any other rights and remedies
which the Buyer may have at Law, be entitled to equitable relief, including injunctive relief, and
to the remedy of specific performance with respect to any breach or threatened breach of such
covenant, as may be available from any court of competent jurisdiction. In addition, the Seller
and the Buyer agree that the terms of the covenant in this Section 5.4 are fair and
reasonable in light of the Buyer’s plans for the Transferred Assets and the Business and are
necessary to accomplish the full transfer of the goodwill and other intangible assets contemplated
hereby. In the event that any of the covenants contained in this Section 5.4 shall be
determined by any court of competent jurisdiction to be unenforceable for any reason whatsoever,
then any such provision or provisions shall not be deemed void, and the parties hereto agree that
said limits may be modified by the court and that said covenant contained in this Section
5.4 shall be amended in accordance with said modification, it being specifically agreed by the
parties that it is their continuing desire that this covenant be enforced to the full extent of its
terms and conditions or if a court finds the scope of the covenant unenforceable, the court should
redefine the covenant so as to comply with applicable Law.

     5.5 Public Announcements. Prior to the date hereof, no party to this Agreement shall
make, or cause to be made, any press release or public announcement with respect to the
Acquisition, this Agreement or the transactions contemplated hereby or otherwise communicate with
any news media with respect thereto without the consent of the other party, and the parties shall
cooperate as to the timing and contents of any such press release or public announcement; provided,
however, that such consent (i) shall not be unreasonably withheld, conditioned or delayed and (ii)
shall not be required for releases, announcements or communications to the extent obtaining such
consent would prevent the timely and accurate dissemination of information as required to comply
with any applicable Law.

     5.6 Seller Employees.

          (a) On or before the date hereof, the Buyer shall identify in writing those Business Employees
to whom the Buyer, in its sole discretion, intends to offer employment effective as of the Closing
Date. The Buyer, in its sole discretion, shall set the initial terms and conditions upon which it
may offer employment to such employees. The Seller and its Subsidiaries shall release from
employment, effective no later than the Closing Date, each Business Employee who receives an offer
of employment with the Buyer. The Seller shall not enforce against any Business Employee or any
independent contractor or consultant engaged by the Seller exclusively in connection with the
Business who receives and accepts an offer of employment with the Buyer (each such employee, a
“Transferred Employee”) any non-compete or similar contractual obligations, or otherwise assert
with respect to any such

37

 

Transferred Employee, independent contractor and consultant any claims that would otherwise
prohibit or place conditions on the acceptance of such offer of employment by such Transferred
Employee (including any acceptance of an Employee Offer Letter by any Key Employee) or such
independent contractor and consultant, the Transferred Employee’s continuing employment by the
Buyer or any of its Affiliates or the Transferred Employee’s performance of services for the Buyer
or any of its Affiliates. The Seller shall use its commercially reasonable efforts to assist the
Buyer and its Affiliates in hiring such employees (including Key Employees) to whom offers of
employment are extended; provided, however, that such assistance shall not include any requirement
by the Seller to expend any money, incur any liability, or offer or grant any accommodation, right
or benefit by the Seller to any Person.

          (b) In no event shall the Buyer or any of its Affiliates have any responsibility, obligation
or liability to the Seller or any of its Subsidiaries, or any current or former employee of any of
them, with respect to such employee’s former employment or the termination thereof, including with
respect to severance, and whether or not arising under Law, a Seller Plan or otherwise. The Seller
shall indemnify, defend and hold harmless the Buyer and its Affiliates from any and all Liabilities
incurred by the Buyer or its Affiliates with respect to such matters.

          (c) No Seller Plan and no assets of any Seller Plan (including any Seller Plan intended to be
qualified under Section 401(a) of the Code) will be transferred to the Buyer or any of its
Affiliates or to any plan of the Buyer or any of its Affiliates (other than as a rollover
contribution to the extent elected by a Transferred Employee in accordance with the terms of the
applicable plans intended to be qualified under Section 401(a) of the Code).

          (d) The Seller shall be responsible for providing continuation coverage to the extent required
by Section 4980B of the Code or similar state law (“COBRA”) to those employees of the Seller, and
other qualified beneficiaries under COBRA with respect to such employees, who have a COBRA
qualifying event (due to termination of employment with the Seller or otherwise) prior to or in
connection with the transactions contemplated by this Agreement. Except as required by law,
neither the Buyer nor any of its Affiliates shall be responsible for the failure of the Seller to
comply with any of the requirements of COBRA, including applicable notice requirements. The Seller
shall indemnify, defend and hold the Buyer and its Affiliates harmless from any and all Liabilities
incurred by the Buyer or its Affiliates, as applicable, as a result of the failure of the Seller to
comply with any of the requirements of COBRA, including applicable notice requirements.

          (e) On the date hereof, the Seller shall provide the Buyer with an itemized schedule of the
unused paid time off (“PTO”) accrued by each Transferred Employee located in the United States as
of the date hereof (the “Preliminary PTO Schedule”). Upon Closing, the Seller shall provide an
updated version of such schedule reflecting (a) any additional accrual or use of PTO by Transferred
Employees located in the United States between the date of the Preliminary PTO Schedule and the
Closing Date and (b) all PTO accrued by each Transferred Employee not located in the United States
as of the Closing Date (the “Closing PTO Schedule”).

     5.7 Key Employees. Schedule 5.7 sets forth a list of “Key Employees” of the Seller to
whom the Buyer intends to make an offer of employment pursuant to an Employee Offer

38

 

Letter, it being understood that each such Employee Offer Letter requires the employee party
thereto to execute and deliver to the Buyer an Employee Proprietary Information and Inventions
Agreement in the form attached as an exhibit thereto. The Seller shall cooperate with the Buyer
and assist the Buyer with its efforts to enter into all such agreements and exhibits with such
employees as soon as practicable prior to the date hereof. To Knowledge of the Seller, no Key
Employee intends to terminate his or her employment or other relationship with the Seller, nor does
the Seller have a present intention to terminate the employment or other relationship of any Key
Employee, other than in connection with the consummation of the transactions contemplated hereby.
The Buyer shall have no obligation to make an offer of employment to any employee of the Seller.

     5.8 Insurance. To the extent that any insurance policies or binders cover any loss,
liability, claim, damage or expense relating to the Business or the Transferred Assets and covering
occurrences or wrongful acts prior to the Closing Date and such policies continue after the Closing
Date to permit claims to be made thereunder with respect to such occurrences or acts prior to the
Closing Date, and to the extent that such Claims are not covered by insurance policies of the Buyer
the Seller and its Subsidiaries shall cooperate with the Buyer and its Affiliates to submit any
such claims, including filing and furnishing required notices for the benefit of or on behalf of
the Buyer or its Affiliates under such policies or pursuing claims previously made.

     5.9 Certain Notices. From and after the date of this Agreement until the Closing, the
Seller and the Buyer shall promptly notify each other orally and in writing of (a) any written
notice from any Person alleging that the Approval of such Person is required in order to consummate
the Acquisition and the other transactions contemplated by this Agreement, (b) any Actions or
Proceedings commenced or, to the Knowledge of the Seller or the Knowledge of the Buyer, as the case
may be, threatened against, relating to or involving or otherwise affecting such party or any of
its Subsidiaries that, if pending on the date of this Agreement, would have been required to be
disclosed pursuant to Article IV, or that relate to the transactions contemplated by this
Agreement, and (c) in the case of the Seller, any Key Customer, Vendor, Distributor or Business
Employee threatening in writing any material modification or change in, or termination of, its
business or other relationship with the Business.

     5.10 Certain Intellectual Property Covenants.

          (a) The Seller shall, and shall cause its Subsidiaries to, at their expense, take such actions
prior to and after the Closing as required, or as reasonably requested by the Buyer, to duly
execute, deliver and file as of the Closing Date or as soon thereafter as practicable all
instruments and documents necessary to ensure that the records, registrations and applications for
registration of all Transferred IP, in the United States Patent and Trademark Office or the United
States Copyright Office and all counterpart or similar agencies wherever such Transferred IP is
registered or is the subject of an application for registration, correctly reflect all transactions
affecting the ownership by the Buyer of such Transferred IP. In the event the Buyer is unable,
after expending reasonable efforts under the circumstances, to obtain the Seller’s execution of any
document required to be executed under this Section 5.10(a), the Seller hereby grants the
Buyer the authority to execute such document on the Seller’s behalf as the Seller’s
attorney-in-fact.

39

 

          (b) Effective as of the Closing Date, the Seller shall, and shall cause its Subsidiaries to,
forever cease to sell any products or provide any services under, or apply to register, in each
case throughout the world, any trademarks, service marks, trade dress, design marks, logos, trade
names, domain names, web-sites, brand names, model names and corporate names that are the same as
or confusingly similar to any of the trademarks and trade names included in the Transferred Assets.

     5.11 Confidentiality. The Seller recognizes that by reason of its ownership of the
Business and the Transferred Assets and provision of the services under the Transition Services
Agreement, it and its Subsidiaries have acquired and will acquire confidential information and
trade secrets concerning the Business the use or disclosure of which could cause the Buyer or its
Affiliates substantial loss and damages that could not be readily calculated and for which no
remedy at law would be adequate. Accordingly, the Seller covenants and agrees with the Buyer that
the Seller and its Subsidiaries will not at any time, except in performance of the Seller’s
obligations to the Buyer or with the prior written consent of the Buyer, directly or indirectly,
disclose or use any proprietary, secret or confidential information relating to the Business and
the Transferred Assets that any such Person may learn or has learned by reason of its ownership of
the Business and the Transferred Assets or provision of services under the Transition Services
Agreement, unless (i) such information becomes known to the public generally through no fault of
the Seller or of its Subsidiaries or (ii) disclosure is required in the opinion of its independent
counsel, by applicable Law; provided that this Section 5.11 shall not apply to any asset
that is not a Transferred Asset. The parties hereto agree that the covenant contained in this
Section 5.11 imposes a reasonable restraint on the Seller, its Subsidiaries and their
employees.

     5.12 Successors. In the event that either of the parties hereto (or any of its
successors or assigns) shall consolidate or merge with any other Person and such party shall not be
the continuing or surviving corporation or entity in such consolidation or merger, or transfer all
or substantially all of its properties and assets to any other Person (the “Successor
Acquisition”), then in each case proper provision shall be made so that the continuing or surviving
corporation or entity (or its successors or assigns, if applicable), or transferee of such assets,
as the case may be, shall expressly assume all of such party’s obligations, as applicable, under
Sections 4.1, 5.1, 5.3, 5.8, 5.10, 5.11,
5.14, 5.15 and Article VI and Article X of this Agreement and under
the Ancillary Agreements.

     5.13 No Solicitation or Negotiation. The Seller agrees that between the date of this
Agreement and the earlier of (i) the Closing and (ii) the valid termination of this Agreement,
neither the Seller nor any of the Seller’s Affiliates, officers, directors or Representatives will
(a) solicit, initiate, encourage or accept any other proposals or offers from any Person (other
than Buyer) (i) relating to any acquisition, license or purchase of all or any portion of the
Transferred Assets or the Business other than in the ordinary course of business, (ii) enter into
any business transaction involving or otherwise relating to the Business or the Transferred Assets,
in each case that could reasonably be expected to delay or interfere with the Acquisition or the
other transactions contemplated by this Agreement, (iii) release any Person from, or waive any
provision of, any confidentiality agreement that relates to the Business or the Transferred Assets
or any standstill agreement to which the Seller is a party, or (iv) participate in any discussions,
conversations, negotiations or other communications regarding, or furnish to any other Person
(other than the Buyer) any information with respect to, or otherwise cooperate in any way, assist

40

 

or participate in, facilitate or encourage any effort or attempt by any other Person to seek
to do any of the foregoing. The Seller immediately shall cease and cause to be terminated all
existing discussions, conversations, negotiations and other communications with any Persons
conducted heretofore with respect to any of the foregoing. The Seller shall notify the Buyer
promptly in writing if any such proposal or offer, or any inquiry or other contact with any Person
with respect thereto, is made and shall, in any such notice to the Buyer, indicate in reasonable
detail the identity of the Person making such proposal, offer, inquiry or contact and the principal
terms and conditions of such proposal, offer, inquiry or other contact.

     5.14 Supply Agreement. Until VI provides a written consent that permits the Buyer to
assume Section IV Subsections (a)-(c) and VII of Schedule One of the VI Transition Services
Agreement, the Buyer hereby agrees to (i) manufacture for and supply to or on behalf of the Seller
the TAPs, the 4G Probes and the Xgig Analyzers (each as defined in Section IV Subsections (a)-(c)
of Schedule One of the VI Transition Services Agreement) on the same terms as set forth in Section
IV Subsections (a)-(c) and VII of Schedule One of the VI Transition Services Agreement and (ii)
provide the maintenance and support to or on behalf of the Seller on the same terms as set forth in
Section VII of Schedule One of the VI Transition Services Agreement.

     5.15 SerialTek Litigation.

          (a) The parties agree that (i) the Seller shall be responsible for all costs, fees and
expenses related to the SerialTek Litigation that were incurred prior to the Effective Time, (ii)
the Seller shall be responsible for fifty percent (50%) of the first $300,000 of the attorneys fees
and third party costs and expenses incurred after the Effective Time in the information technology
and hardware analysis phase of the SerialTek Litigation (the “Seller Phase 1 Expenses”), which
phase is currently estimated by Winston and Strawn LLP, the Seller’s counsel in the SerialTek
Litigation, to be completed on or about July 31, 2009 (the “Phase 1 Process”); provided that the
parties agree that such completion date is uncertain and that the Seller’s responsibility for such
costs and expenses is not contingent on the analysis being completed by such date, (iii) the Seller
shall not be responsible for any attorneys fees and third party costs and expenses incurred during
the Phase 1 Process that are in excess of the Seller Phase 1 Expenses, and (iv) the Seller agrees
that any monetary recovery received in connection with the SerialTek Litigation either by way of
settlement, including any lump sum payments upon settlement or thereafter, advances and other
payment structures (including without limitation license revenue such as advances or future
royalties paid over time, and revenue specifically attributable to past infringement and interest,
including amounts for infringements before the Effective Time and any interest attributable
thereto, and the value of any security issued by SerialTek, LLC to the Buyer in connection with
such settlement) or as a consequence of a judgment rendered in the SerialTek Litigation (the
“Recovery”) shall be allocated and paid to the Buyer and the Seller pro rata in proportion to the
amount by which the Seller Phase 1 Expenses, on the one hand, and the Buyer’s reasonable attorneys
fees and third party costs and expenses related to the SerialTek Litigation, on the other hand,
relate to the total costs and expenses incurred after the Effective Time in connection with the
SerialTek Litigation; provided, in no event, shall the Seller be allocated or paid an amount in
excess of the Seller Phase 1 Expenses actually incurred by the Seller after the Effective Time.

41

 

          (b) Promptly following the Closing Date, and in any event not later than five (5) Business
Days following the Closing Date, the Buyer shall file a motion or other appropriate pleading to
intervene as a co-plaintiff in the SerialTek Litigation. If in the reasonable judgment of the
Buyer it shall become unnecessary for the Seller to remain a party to the SerialTek Litigation in
order to obtain complete relief, the Seller shall then promptly file a motion or other appropriate
pleading to withdraw as a party. In either case, the Seller shall (i) take such steps, and file
such pleadings, as the Buyer in its reasonable judgment may deem necessary to pursue or resolve the
SerialTek Litigation, (ii) proceed in good faith and take commercially reasonably efforts to assist
the Buyer and provide the Buyer with any information necessary to pursue or resolve the SerialTek
Litigation, and (iii) reasonably cooperate with the Buyer to pursue or resolve the SerialTek
Litigation. The Buyer shall defend, indemnify and hold Seller harmless from and against any claims,
counterclaims, judgment, or orders to pay money arising in connection with the SerialTek
Litigation, excepting only those matters identified in Section 5.15(c) below, and further
the Buyer shall pay and reimburse the Seller for all reasonable attorneys fees, third party costs
and other reasonable expenses incurred by the Seller in connection with the SerialTek Litigation
after the Closing Date, including without limitation reasonable travel and travel related expenses,
third party costs, and expenses of responding to pleadings, discovery, or other actions in the
SerialTek Litigation, excepting only (1) the Seller Phase 1 Expenses, and (2) those Counterclaims
not defended by Buyer as set forth in Section 5.15(c) below. After the Closing Date, the
Buyer shall have the sole and unfettered discretion to control the SerialTek Litigation, including
any settlement thereof; provided that no settlement shall obligate the Seller to take any action or
prohibit the Seller from taking any action, including making any payment or competing in any
jurisdiction or any line of business, without the prior written consent of the Seller, except that
the Seller shall be obligated to take any reasonable action that is procedurally required to
effectuate the resolution of the SerialTek Litigation without any ongoing obligation of the Seller,
including executing a settlement agreement and release resolving such claims if this is necessary
in the reasonable judgment of the Buyer to effectuate a settlement. Notwithstanding anything to the
contrary in this Section 5.15(b), the Buyer’s indemnification pursuant to this Section
5.15(b) does not relieve the Seller of its obligations to indemnify the Buyer pursuant to
Article X hereof and subject to the provisions thereof, including without limitation, the
inaccuracy or breach of any representation or warranty made by the Seller in this Agreement.

          (c) In the event that SerialTek, LLC makes a claim or counterclaim against the Seller arising
out of acts or omissions of the Seller (other than acts or omission in connection with the
prosecution of the SerialTek Litigation after the Effective Time) (the “Counterclaim”), the Buyer
shall have the right to defend such Counterclaim against the Seller. If the Buyer defends a
Counterclaim, the Buyer shall have the sole and unfettered discretion to control such defense,
including any settlement thereof; provided that no settlement shall obligate the Seller to take any
action or prohibit the Seller from taking any action, including making any payment or competing in
any jurisdiction or any line of business, without the prior written consent of the Seller, except
that the Seller shall be obligated to take any reasonable action that is procedurally required to
effectuate the resolution of the such Counterclaim without any ongoing obligation of the Seller,
including executing a settlement agreement and release resolving such Counterclaims if this is
necessary in the reasonable judgment of the Buyer to effectuate a settlement. Additionally, if the
Buyer defends a Counterclaim, the Buyer shall indemnify and hold the Seller harmless from and
against any judgments or orders to pay money arising in connection with the

42

 

Counterclaim, whether or not arising before or after the Effective Time; provided, however,
the Buyer’s indemnification pursuant to this Section 5.15(c) does not relieve the Seller of
its obligations to indemnify the Buyer pursuant to Article X hereof and subject to the
provisions thereof, including without limitation, the inaccuracy or breach of any representation or
warranty made by the Seller in this Agreement. The Buyer shall inform the Seller of its decision
to defend the Counterclaim within ten (10) Business Days of the Buyer becoming aware of the
Counterclaim; provided, however, that the Buyer may elect at anytime to defend the Counterclaim.
In the event the Buyer decides to defend the Counterclaim, the Buyer shall pay all and shall
reimburse the Seller for all reasonable attorneys fees, third party costs and other expenses
incurred by the Seller in connection with the Seller’s defense of such Counterclaim, including
without limitation all travel and travel related expenses, internal and external costs and expenses
of responding to pleadings, discovery, or other actions in the Seller’s defense of the
Counterclaim. If the Buyer determines not to defend the Counterclaim and the Seller defends such
Counterclaim, the Seller shall pay all attorneys fees, third party costs and other expenses
incurred in connection with the Seller’s defense of such Counterclaim, including without limitation
all travel and travel related expenses, internal and external costs and expenses of responding to
pleadings, discovery, or other actions in the Seller’s defense of the Counterclaim. Additionally,
if the Seller defends a Counterclaim, the Seller shall have the sole and unfettered discretion to
control such defense, including any settlement thereof; provided that no settlement shall obligate
the Buyer to take any action or prohibit the Buyer from taking any action, including making any
payment or competing in any jurisdiction or any line of business, without the prior written consent
of the Buyer, except that the Buyer shall be obligated to take any reasonable action that is
procedurally required to effectuate the resolution of the Counterclaim without any ongoing
obligation of the Buyer, including executing a settlement agreement and release resolving such
claims if this is necessary in the reasonable judgment of the Seller to effectuate a settlement;
and provided, however, the Seller shall reasonably cooperate with the Buyer in the Seller’s defense
of the Counterclaim and consult and communicate with the Buyer in order to protect the Buyer’s
rights in the SerialTek Litigation.

ARTICLE VI

TAX MATTERS

     6.1 Control of Tax Audits. The Seller shall have the right to control any Tax audit
or administrative or court proceeding (a “Tax Proceeding”) relating to any Tax covered by
Section 10.1(a)(iv) and to employ counsel of its choice; provided that if the results of
such Tax audit or proceeding could reasonably be expected to have an adverse effect on the Buyer or
any of the Buyer’s Affiliates for any Post-Closing Tax Period, then the Seller and the Buyer shall
jointly control the defense and settlement of any such Tax audit or proceeding and each party shall
cooperate with the other party at its own expense and there shall be no settlement or closing or
other agreement with respect thereto without the consent of the other party, which consent will not
be unreasonably withheld or delayed. The Seller shall promptly notify the Buyer if it decides not
to control the defense or settlement of any such Tax audit or administrative or court proceeding
and the Buyer thereupon shall be permitted to defend and settle such Tax audit or proceeding.

43

 

     6.2 Tax Returns. The Buyer shall, or cause its Affiliates to, prepare or cause to be
prepared, and shall timely file or cause to be timely filed, all Tax Returns (other than income Tax
Returns) with respect to the Business that are required to be filed after the Closing Date;
provided, that the Seller shall reimburse the Buyer for (i) the costs incurred in preparing Tax
Returns that relate to periods ending on or prior to the Closing Date and (ii) a portion of the
costs incurred in preparing Straddle Period Tax Returns (which costs shall be apportioned based
upon the number of days relating to the pre-Closing portion of the Straddle Period). Such Tax
Returns shall be prepared in a manner consistent with past practices, unless such past practices
are not in accordance with applicable Law.

     6.3 Cooperation. The Seller and the Buyer shall cooperate fully with each other in
connection with the preparation and timely filing of any Tax Returns required to be prepared and
filed by the parties after the Closing Date, or in connection with the preparation or filing of any
election, claim for refund, consent or certification.

     6.4 Transfer Costs. The Seller shall be responsible for the timely payment of all
sales (including bulk sales), use, value added, documentary, stamp, gross receipts, withholding,
registration, transfer, conveyance, excise, recording, license and other similar Taxes and fees
(“Transfer Costs”) arising out of or in connection with or attributable to the transactions
effected pursuant to this Agreement. The Seller and the Buyer shall use their respective
commercially reasonable efforts to deliver certain of the Transferred Assets, as appropriate,
through an electronic delivery or in such other manner reasonable calculated and legally permitted,
and take all other commercially reasonable actions necessary, to minimize or avoid the incurrence
of Transfer Costs.

     6.5 Proration of Taxes. Personal property Taxes (all real property taxes to be borne
solely by the Seller) and ad valorem Taxes (that are imposed on a periodic basis (as opposed to a
net income basis)) (collectively, “Periodic Taxes”) imposed in connection with the Business shall
be prorated between the Seller and the Buyer for any Straddle Period. Periodic Taxes of the Seller
attributable to Straddle Periods shall be prorated between the Buyer and the Seller based on the
relative periods the assets of the Seller were owned by each respective party during the fiscal
period of the taxing jurisdiction for which such Taxes were imposed by such jurisdiction (as such
fiscal period is or may be reflected on the bill rendered by such taxing jurisdiction). The Buyer
or the Seller shall promptly forward an invoice to the other party for its reimbursable pro rata
share, if any, of any Periodic Taxes paid by such party.

ARTICLE VII

CLOSING

     7.1 Closing Date. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Morrison & Foerster LLP in Palo Alto, California, at
10:00 a.m. on July 15, 2009 (the “Closing Date”). Notwithstanding the foregoing, the Closing shall
for all purposes be deemed to occur at 5:00 p.m. in Palo Alto, California on the Closing Date (the
“Effective Time”).

44

 

     7.2 Deliveries by the Buyer. At the Closing, the Buyer shall pay the Purchase Price
in accordance with this Agreement and, unless waived in writing by the Seller, shall execute and
deliver to the Seller the following in such form and substance as are reasonably acceptable to the
Seller:

          (a) An amount in cash equal to (i) $16,000 as reimbursement of the security deposit with
respect to the Texas Facility Lease plus (ii) the pro rata share of the July rent for the Texas
Facility for the period between the Closing Date and August 1, 2009;

          (b) the Bill of Sale in substantially the form of Exhibit B hereto;

          (c) the Patent Assignment in substantially the form of Exhibit C hereto;

          (d) the Trademark Assignment in substantially the form of Exhibit D hereto;

          (e) the Copyright Assignment in substantially the form of Exhibit E hereto;

          (f) the Transition Services Agreement in substantially the form of Exhibit F hereto;

          (g) the Assignment and Assumption Agreement in substantially the form of Exhibit G hereto;

          (h) the License Agreement in substantially the form of Exhibit I hereto;

          (i) the Settlement Agreement in substantially the form of Exhibit J hereto; and

          (j) such other documents and instruments as counsel for the Buyer and the Seller mutually
agree to be reasonably necessary to consummate the transactions described herein.

     7.3 Deliveries by the Seller. At the Closing unless waived in writing by the Buyer,
the Seller shall execute and deliver to the Buyer the following in such form and substance as are
reasonably acceptable to the Buyer:

          (a) all third party consents necessary in connection with the Acquisition under those
Contracts specified on Schedule 7.3(a) (the “Required Consents”);

          (b) a certificate(s) in form and substance reasonably satisfactory to the Buyer, duly executed
and acknowledged, certifying any facts that would exempt the transactions contemplated hereby from
withholding under Section 1445 of the Code and the Treasury Regulations promulgated thereunder.

          (c) the Bill of Sale in substantially the form of Exhibit B hereto;

          (d) the Patent Assignment in substantially the form of Exhibit C hereto;

          (e) the Trademark Assignment in substantially the form of Exhibit D hereto;

45

 

          (f) the Copyright Assignment in substantially the form of Exhibit E hereto;

          (g) the Transition Services Agreement in substantially the form of Exhibit F hereto;

          (h) the Assignment and Assumption Agreement in substantially the form of Exhibit G hereto;

          (i) a signed legal opinion from counsel to the Seller dated as of the Closing, in
substantially the form of Exhibit H hereto;

          (j) the License Agreement in substantially the form of Exhibit I hereto;

          (k) the Settlement Agreement in substantially the form of Exhibit J hereto;

          (l) such other documents and instruments as counsel for the Buyer and the Seller mutually
agree to be reasonably necessary to consummate the transactions described herein.

ARTICLE VIII

CONDITIONS PRECEDENT

     8.1 Conditions Precedent to Obligations of Parties. The respective obligations of
each of the parties hereto to effect the Acquisition are subject to the satisfaction, at or prior
to the Closing Date, there shall be no Order or other legal restraint or prohibition of any nature
of any court or Governmental Authority of competent jurisdiction that is in effect that restrains
or prohibits the consummation of the Acquisition. There shall not be any action taken, or any
statute, rule or regulation enacted, entered, enforced or deemed applicable to the Acquisition, by
any Governmental Authority which makes the consummation of the Acquisition illegal.

     8.2 Conditions to Obligations of the Buyer. The obligation of the Buyer to effect the
Acquisition is subject to the satisfaction or waiver, at or prior to the Closing Date, of each of
the following conditions:

          (a) Third Party Consents. The Seller shall have received, in form and substance
reasonably satisfactory to the Buyer, the Required Consents.

          (b) Delivery of Ancillary Agreements and Other Documents. The Seller shall have
executed and delivered to the Buyer each of the agreements set forth in Section 7.3(b)
through Section 7.3(p).

     8.3 Conditions to the Obligations of the Seller. The obligation of the Seller to
effect the Acquisition is subject to the satisfaction or waiver, at or prior to the Closing Date,
of each of the following conditions:

46

 

          (a) Delivery of Ancillary Agreements and Other Documents. The Buyer shall have
executed and delivered to the Seller each of the agreements set forth in Section 7.2(a)
through Section 7.2(j).

          (b) Purchase Price. The Buyer shall have delivered concurrently with the satisfaction
of the conditions set forth in Sections 8.1 or 8.2, the Purchase Price in cash or
by wire transfer of immediately available funds to the Seller.

ARTICLE IX

TERMINATION

     9.1 Termination. This Agreement may be terminated and the Acquisition contemplated
hereby may be abandoned at any time prior to the Closing:

          (a) By mutual written consent of the Buyer and the Seller;

          (b) By either the Seller or the Buyer, upon written notice to the other party, if the
Acquisition shall not have been consummated on or before September 30, 2009 (the “Termination
Date”); provided, however, that the right to terminate this Agreement under this
Section 9.1(b) shall not be available to any party whose failure to fulfill any obligation
under this Agreement has been a cause of, or resulted in, the failure of such consummation to occur
on or before such date; and

          (c) By either the Seller or the Buyer, upon written notice to the other party, if any
Governmental Authority shall have issued an Order or taken any other action permanently
restraining, enjoining or otherwise prohibiting the transactions contemplated by this Agreement,
and such Order shall have become final and nonappealable.

     9.2 Effect of Termination. In the event of termination of this Agreement by either
the Seller or the Buyer as provided in Section 9.1, this Agreement shall forthwith become
void and there shall be no liability or obligation on the part of the Buyer or the Seller or their
respective officers or directors, except for Sections 4.1(q), 5.5, and
5.11, this Section 9.2 and Article XI each of which shall survive
termination; provided, however, that nothing herein shall relieve any party from
liability for any willful or material breach of any of the representations, warranties, covenants
or agreements set forth in this Agreement.

ARTICLE X

INDEMNIFICATION

     10.1 Indemnification.

          (a) Following the Closing and subject to the terms and conditions of this Article X,
the Seller shall indemnify, defend and hold harmless the Buyer and its Affiliates and their
respective officers, directors, employees, stockholders, assigns and successors (each, a “Buyer
Indemnified Party”) from and against, and shall reimburse, hold harmless and indemnify each Buyer
Indemnified Party for, any and all losses, damages, liabilities, royalties,

47

 

costs and expenses, including interest, penalties, court costs and reasonable attorneys’ fees and
expenses, imposed upon or incurred by such Buyer Indemnified Party (“Buyer Losses”), with respect
to:

          (i) any inaccuracy or breach of any representation or warranty made by the Seller in
this Agreement;

          (ii) any breach of any covenant or agreement made by the Seller in this Agreement;

          (iii) any Excluded Liabilities of the Seller or any of its Subsidiaries;

          (iv) (A) all Taxes imposed for any Pre-Closing Tax Period and (B) all Taxes of any
Person imposed on the Seller (1) as a result of being a member on or prior to the Closing
Date of any consolidated, combined, affiliated or unitary Tax group or (2) as a transferee or
successor, by contract, or otherwise;

          (v) any non-compliance by the Seller or any of its Subsidiaries with any applicable bulk
transfer or similar law or by virtue of common law, statute or regulation imposing or
attempting to impose transferee liability on the Buyer with respect to the Liabilities;

          (vi) acts or omissions of the Seller or any of its Affiliates and all injuries,
including death, damage to or destruction, loss or loss of the use of property, regardless of
the cause of any of the foregoing, occurring in connection with the operation of the Business
prior to the Closing,

          (vii) the conduct of the Business by the Seller or any of its Affiliates prior to the
Effective Time, including without limitation, any acts or omissions of the Seller or any of
its Affiliates,

          (viii) return of Products that the Seller or the Seller’s Affiliates are required to
accept, except to the extent in connection with a Warranty Liability, or

          (ix) with respect to any Covered License or the Intellectual Property that is the
subject matter of any Covered License, any claim (except claims for the payment of license or
use fees that would have been due under the Covered License had the Approval for such Covered
License been obtained prior to the date such fees were due and payable) to the extent (a)
that during the forty-five (45) days following receipt of a No Consent Notice from the Seller
(such period in each applicable case, the “Covered License Grace Period”), the Buyer has used
commercially reasonable efforts to obtain its own license or other agreement with respect to
the Intellectual Property that is the subject matter of the applicable Covered Licenses; and
(b) arising from activities that take place during the period beginning at the Effective Time
and concluding at the end of the applicable Covered Licensed Grace Period.

48

 

          This indemnity agreement in this Section 10.1(a) shall not limit any other rights or
remedies that the Buyer may have based on any action for fraud, willful breach or intentional
misrepresentation.

          (b) Following the Closing and subject to the terms and conditions provided in this Article
X, the Buyer shall indemnify, defend and hold harmless, the Seller and its Subsidiaries and
their respective officers, directors, employees, stockholders, assigns and successors (each, a
“Seller Indemnified Party”) from and against, and shall reimburse each Seller Indemnified Party
for, any and all losses, damages, liabilities, royalties, costs and expenses, including interest,
penalties, court costs and reasonable attorneys’ fees and expenses, imposed upon or incurred by
such Seller Indemnified Party (“Seller Losses”), with respect to:

          (i) any inaccuracy or breach of any representation or warranty made by the Buyer in this
Agreement;

          (ii) any breach of any covenant or agreement made by the Buyer in this Agreement;

          (iii) any of the Assumed Liabilities; or

          (iv) the conduct of the Business by the Buyer after the Effective Time.

          This indemnity agreement in this Section 10.1(b) shall not limit any other rights or
remedies that the Seller may have based on any action for fraud, willful breach or intentional
misrepresentation.

          (c) For the purpose of this Article X only and only for the purposes of calculating
the Seller Losses and the Buyer Losses (and not for the purpose of determining the inaccuracy or
breach of any representation or warranty), any representation or warranty given or made that is
qualified in scope as to materiality (including in all material respects and Material Adverse
Effect) or Knowledge or similar qualification contained herein shall be deemed to have been given
or made without such qualification. Notwithstanding anything to the contrary herein, the parties
hereto agree and acknowledge that an Indemnified Party may bring a claim for indemnification for
any Buyer Losses or Seller Losses, as applicable, under this Article X notwithstanding the
fact that such Indemnified Party had knowledge of the breach, event or circumstance giving rise to
such loss prior to the Closing or waived any condition to the Closing related thereto.

     10.2 Limitations on Indemnity Payments. The maximum aggregate monetary liability of
(i) the Seller to all Buyer Indemnified Parties for all Buyer Losses in the aggregate under and
pursuant to Section 10.1(a)(i), and (ii) the Buyer to all the Seller Indemnified
Parties for all the Seller Losses in the aggregate under and pursuant to Section 10.1(b)(i)
shall, in either such case, be limited to a maximum of $4,830,000. The foregoing limitation shall
not apply to the Buyer Losses or the Seller Losses, as applicable, based on fraud, willful breach
or intentional misrepresentation of either party. Notwithstanding anything contained herein to the
contrary, no party to this Agreement shall be obligated to make any indemnification payment under
Section 10.1(a) or Section 10.1(b) as the case may be, unless and until the
aggregate amount of Losses sustained by a Buyer Indemnified Party or a Seller Indemnified Party, as
the case may be,

49

 

exceeds $250,000, whereupon the Indemnified Party (as defined below) shall be
entitled to recover only such Losses in excess of $250,000. In addition (other than Section
10(a)(ix)), the Seller shall not be obligated to indemnify the Buyer with respect to any
indirect, special, incidental, consequential, punitive or non-economic damages of any Buyer Indemnified Party.
None of the foregoing limitations of liability shall apply to the Seller’s indemnity obligation
under Section 10(a)(ix).

     10.3 Notice of Indemnity Claims. If any Buyer Indemnified Party or the Seller
Indemnified Party entitled to or seeking indemnification hereunder (an “Indemnified Party”) (i)
determines that any event, occurrence, fact, condition or claim has given or could give rise to any
Buyer Losses or the Seller Losses, as applicable, for which such Indemnified Party is or may be
entitled to, or may seek, indemnification under this Agreement, (ii) otherwise identifies an event,
occurrence, fact, condition or claim giving rise (or which may give rise) to a right of
indemnification hereunder in favor of such Indemnified Party, or (iii) with respect to any Third
Party Claim, becomes aware of the assertion of any claim or of the commencement of any Action or
Proceeding at law or in equity (any of the foregoing, an “Indemnity Claim”), such Indemnified Party
shall promptly notify the party obligated to provide indemnification or from whom indemnification
is being or will be sought (the “Indemnifying Party”) in writing of such Indemnity Claim (a “Claim
Notice”) describing the facts giving rise to the claim for indemnification under this Agreement and
shall include in such Claim Notice (if then known) the amount or the method of computation of the
amount of such claim and a reference to the provision of this Agreement or any other agreement,
document or instrument executed hereunder or in connection with this Agreement upon which such
claim is based; provided, however, that the failure of any Indemnified Party to
give timely or complete notice thereof shall not affect any of its rights to indemnification
hereunder nor relieve the Indemnifying Party from any of its indemnification obligations hereunder,
except to the extent the Indemnifying Party is materially prejudiced by such failure.

     10.4 Indemnification Procedures. Any obligation to provide indemnification hereunder
with respect to any Action or Proceeding at law or in equity by or against any third party,
including any Governmental Authority (a “Third Party Claim”), except with respect to Tax
Proceedings, which shall be governed by Article VI, shall be subject to the following terms
and conditions:

          (a) Within ten (10) days after receipt of a Claim Notice, the Indemnifying Party shall give
written notice to the Indemnified Party stating whether it disputes the Indemnity Claim and whether
it will defend against such Indemnity Claim. The Indemnifying Party shall be entitled, at its sole
cost and expense, subject to Section 10.5, to assume and control the defense, compromise,
settlement and investigation of such Indemnity Claim, including the management of any Action or
Proceeding relating thereto, and to employ and engage counsel reasonably acceptable to the
Indemnified Party. The Indemnified Party shall at all times have the right to fully participate in
the defense of an Indemnity Claim at its own cost and expense directly or through counsel;
provided, however, that if the named parties to an Action or Proceeding include both the
Indemnifying Party and the Indemnified Party and the Indemnified Party has been advised by counsel
that (i) representation of both parties by the same counsel would be inappropriate under applicable
standards of professional conduct or (ii) there may be one or more legal or equitable defenses
available to it that are different from or additional to those available

50

 

to the Indemnifying Party,
then, in either case, the Indemnified Party shall be entitled to retain its own counsel at the cost
and expense of the Indemnifying Party. Notwithstanding the foregoing, the Indemnified Party,
during the period the Indemnifying Party is determining whether to elect
to assume the defense of a matter covered by this Section 10.4, may take such
reasonable actions as it deems necessary to preserve any and all rights with respect to the matter,
without such actions being construed as a waiver of the Indemnified Party’s rights to defense and
indemnification under this Agreement.

          (b) If the Indemnifying Party exercises the right to undertake the defense and investigation
of any such Indemnity Claim as provided in Section 10.4(a), then (i) the Indemnified Party
agrees to cooperate with the Indemnifying Party in such efforts and make available to the
Indemnifying Party all witnesses, records, materials and information in the Indemnified Party’s
possession, under its control or to which it may have access as may be reasonably requested by the
Indemnifying Party, and (ii) the Indemnifying Party will keep the Indemnified Party reasonably
informed of the progress of the defense of any such Indemnity Claim. If the Indemnifying Party
fails to undertake the defense and investigation of any such Indemnity Claim as provided in
Section 10.4(a), including conducting a good faith and diligent defense, or if the
Indemnified Party retains control of the defense of such Third Party Claim, then (i) the
Indemnified Party against which such Indemnity Claim has been asserted shall have the right to
undertake the defense, compromise, settlement and investigation of such Indemnity Claim on behalf
of, and at the cost and expense of and for the account and risk of, the Indemnifying Party, (ii)
the Indemnifying Party agrees to cooperate with the Indemnified Party in such efforts and make
available to the Indemnified Party all witnesses, records, materials and information in the
Indemnifying Party’s possession, under its control or to which it may have access as may be
reasonably requested by the Indemnified Party, and (iii) the Indemnified Party will keep the
Indemnifying Party reasonably informed of the progress of the defense of any such Indemnity Claim.

     10.5 Settlement of Indemnity Claims. The Indemnifying Party shall not, without the
prior written consent of the Indemnified Party, (a) settle or compromise any Indemnity Claim or
consent to the entry of any final judgment that does not include as an unconditional term thereof
the delivery by the claimant or plaintiff of a written release or releases from all liability in
respect of such Indemnity Claim of all Indemnified Parties affected by such Indemnity Claim, or (b)
settle or compromise any Indemnity Claim if the settlement imposes equitable remedies or material
obligations on the Indemnified Party other than financial obligations for which such Indemnified
Party shall be indemnified hereunder. Except in the event the Indemnified Party has assumed the
defense of the Indemnified Claim pursuant to Section 10.4(b), the Indemnified Party shall
not, without the prior written consent of the Indemnifying Party, settle or compromise any
Indemnity Claim or consent to the entry of any final judgment with respect to an Indemnity Claim.

     10.6 Survival. All covenants and agreements of the parties made in this Agreement
shall survive the Closing Date indefinitely unless otherwise expressly provided herein. The
representations and warranties of the Seller and the Buyer contained in this Agreement shall
survive the Closing Date for a period of twelve (12) months following the Closing Date,
notwithstanding any investigation at any time made by or on behalf of any party. Notwithstanding
the foregoing, the representations and warranties of the Seller contained in

51

 

Section 4.1(c), the first sentence of Section 4.1(i) with respect to tangible Transferred
Assets only, and Section 4.1(q) and the representations and warranties of the Buyer
contained in Section 4.2(b) shall survive indefinitely. If any Claim Notice for
indemnification under Section 10.1(a) or 10.1(b) shall have been given within the applicable survival period, the claim(s)
and facts and circumstance underlying such claim(s) that are the subject of such Claim Notice and
all the Seller Losses or the Buyer Losses, as applicable, related thereto, whether arising before
or after the expiration of such applicable survival period, shall survive with respect to such
claim until such time as such claim is finally resolved.

     10.7 Treatment of Indemnification Payments. Each of the Buyer and the Seller agrees
to treat any payment made under this Article X as an adjustment to the Purchase Price.

     10.8 Calculation of Indemnity Payments. The amount of any Seller Losses and Buyer
Losses for which indemnification is provided under Article X shall be net of any insurance
proceeds received by the Indemnified Party or any of its Affiliates as an offset against such
Losses. The Indemnifying Party may require an Indemnified Party to assign the rights to seek
recovery pursuant to the preceding sentence; provided that the Indemnifying Party will then be
responsible for pursuing such recovery at its own expense. If the amount to be netted under this
Section 10.8 from any payment required under Article X is determined after payment
by the Indemnifying Party of any amount otherwise required to be paid to an Indemnified Party
pursuant to this Article X, the Indemnified Party shall repay to the Indemnifying Party,
promptly after such determination, any amount that the Indemnifying Party would not have had to pay
pursuant to this Article X had such determination been made at the time of such payment.
No Buyer Losses or Seller Losses, as the case may be, shall be determined or increased based on any
multiple of any financial measure (including earnings, sales or other benchmarks) that might have
been used by the Buyer in the valuation of the Business and Transferred Assets.

     10.9 Exclusive Remedy. The Buyer and the Seller each acknowledge and agree that its
sole and exclusive remedy with respect to any and all matters arising out of, relating to or
connected with the Business, the Transferred Assets, this Agreement and the transactions
contemplated hereby (other than claims of, or causes of action arising from, fraud, willful breach,
of intentional misrepresentation) shall be pursuant to the indemnification provisions set forth in
this Article X and Section 5.15.

ARTICLE XI

MISCELLANEOUS

     11.1 Notices. All notices and other communications hereunder shall be in writing and
shall be deemed duly given (a) on the date of delivery if delivered personally, or by telecopy or
facsimile, upon confirmation of receipt, (b) on the first Business Day following the date of
dispatch if delivered by a recognized next-day courier service, or (c) on the fifth Business Day
following the date of mailing if delivered by registered or certified mail return receipt
requested, postage prepaid. All notices hereunder shall be delivered as set forth below, or
pursuant to such other instructions as may be designated in writing by the party to receive such
notice:

52

 

if to the Seller, to:

Finisar Corporation

1389 Moffett Park Drive

Sunnyvale, CA 94089-1134

Attn: General Counsel

Facsimile: 408-541-5660

with copies to:

Durham Jones & Pinegar, P.C.

192 E. 200 N., Third Floor

St. George, UT 84790

Attention: Joshua E. Little

Facsimile: 435-628-1610

if to the Buyer, to:

JDS Uniphase Corporation

430 N. McCarthy Blvd.

Milpitas, CA, 95035

Attn: General Counsel

Facsimile: 408-546-4300

with copies to:

Morrison & Foerster LLP

755 Page Mill Road

Palo Alto, CA 94306

Attention: S. Dawn Smith

Facsimile: 650-251-3862

     11.2 Counterparts; Facsimile Signature. This Agreement may be executed in any number
of counterparts, each of which shall be considered one and the same agreement and shall become
effective when all counterparts have been signed by each of the parties and delivered to the other
party, it being understood that the parties need not sign the same counterpart. Any party may
execute this Agreement by facsimile signature, and the other parties will be entitled to rely on
such facsimile signature as conclusive evidence that this Agreement has been duly executed by such
party.

     11.3 Bulk Sales. The parties hereto agree to waive compliance with the provisions of
the Laws of any jurisdiction relating to a bulk sale or transfer of the Transferred Assets that may
be applicable to the transactions contemplated by this Agreement.

     11.4 Further Assurances. From time to time after the Closing and without further
consideration, the parties shall, and shall cause their respective Affiliates to, execute,

53

 

acknowledge and deliver such documents and instruments of conveyance, assignment, transfer and
delivery or assumption and take or cause to be taken such other actions as the other party may
reasonably request in order to carry out the purpose and intention of this Agreement, including to
consummate more effectively the purchase, sale, conveyance, assignment, transfer and delivery of
the Transferred Assets and assumption of the Assumed Liabilities as contemplated by this Agreement,
to vest in the Buyer title to the Transferred Assets or to enable the Buyer to protect, exercise
and enjoy all rights and benefits of the Business and to consummate the transactions contemplated
by this Agreement.

     11.5 Entire Agreement. This Agreement (including the documents, other exhibits and
the instruments referred to herein) and the Confidentiality Agreement constitute the entire
agreement among all the parties hereto and terminates and supersedes all prior agreements and
understandings, oral and written, among all the parties hereto with respect to the subject matter
hereof and thereof.

     11.6 Third-Party Beneficiaries. This Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective successors and assigns. Nothing in this
Agreement, expressed or implied, is intended to or shall confer on any Person other than the
parties hereto or their respective successors and assigns, any rights, remedies or Liabilities
under or by reason of this Agreement.

     11.7 Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by either of the parties hereto, in whole or in part
(whether by operation of law or otherwise), without the prior written consent of the other parties,
and any attempt to make any such assignment without such consent shall be null and void;
provided, however, that the Buyer may assign in writing its rights and obligations, in
whole or in part, to one or more of its wholly-owned Subsidiaries, but the Buyer shall remain
jointly and severally liable with any such assignee(s) with respect to all obligations of the Buyer
hereunder.

     11.8 Amendment and Modification; Waiver. This Agreement may not be amended, except by
an instrument in writing signed on behalf of each of the parties hereto. At any time prior to the
Closing, the parties hereto may, to the extent legally permitted, (a) extend the time for the
performance of any of the obligations or other acts of any other party hereto, (b) waive any
inaccuracies in the representations and warranties contained herein or in any document delivered
hereto and (c) waive compliance with any of the agreements or conditions contained herein. Any
agreement on the part of a party hereto to any such extension or waiver shall be valid only if set
forth in a written instrument signed on behalf of such party. The failure of a party to assert any
of its rights under this Agreement or otherwise shall not constitute a waiver of those rights.

     11.9 Costs and Expenses. Regardless of whether the transactions contemplated by this
Agreement are consummated and except as otherwise provided in this Agreement, the Seller, on the
one hand, and the Buyer, on the other hand, will each bear its own costs and expenses (including
attorneys’ fees and costs) incurred in connection with this Agreement and the transactions
contemplated by this Agreement.

54

 

     11.10 Mutual Drafting. The parties hereto have been represented by counsel who have
carefully negotiated the provisions hereof. As a consequence, the parties do not intend that the
presumptions of any laws or rules relating to the interpretation of contracts against the drafter
of any particular clause should be applied to this Agreement and therefore waive their effects.
The provisions of this Agreement shall be interpreted in a reasonable manner to effect the intent
of the parties.

     11.11 Governing Law. This Agreement shall be governed by, and construed and
interpreted in accordance with, the laws of the State of California, without giving effect to the
principles of conflict of laws thereof.

     11.12 Severability. Any term or provision of this Agreement which is invalid or
unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
such invalidity or unenforceability and shall not render invalid or unenforceable the remaining
terms and provisions of this Agreement or affect the validity or enforceability of any of the terms
or provisions of this Agreement in any other jurisdiction. If any provision of this Agreement is
so broad as to be unenforceable, the provision shall be interpreted to be only so broad as is
enforceable.

     11.13 Specific Performance. The parties hereto agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed that the parties
shall be entitled to an injunction or injunctions to prevent breaches of any provision of this
Agreement and to enforce specifically the terms and provisions hereof in any court of the United
States or any state having jurisdiction, this being in addition to any other remedy to which they
are entitled at law or in equity.

[SIGNATURE PAGE FOLLOWS]

55

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
by their respective duly authorized Representatives as of the date first above written.

	 	 	 	 	 
	 	Finisar Corporation, a Delaware corporation

 	 
	 	By:  	/s/ Jerry S. Rawls
 	 
	 	 	Name:  	Jerry S. Rawls 	 
	 	 	Title:  	Executive Chairman 	 
	 
	 	JDS Uniphase Corporation, a Delaware corporation

 	 
	 	By:  	/s/ Sharad Rastogi
 	 
	 	 	Name:  	Sharad Rastogi 	 
	 	 	Title:  	Senior Vice President,
Corporate  Development and Marketing 	 
	 

[Signature Page to Asset Purchase Agreement]exv10w66

Exhibit
10.66

FOURTH LOAN MODIFICATION AGREEMENT

     This Fourth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into
as of July 15, 2009, by and among (a) SILICON VALLEY BANK, a California corporation, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 (“Bank”) and (b)
FINISAR CORPORATION, a Delaware corporation, with its chief executive office located at 1399
Moffett Park Drive, Sunnyvale, California 94089 (“Finisar”) and OPTIUM CORPORATION, a Delaware
corporation, with its principal place of business at 500 Horizon Drive, Suite 505, Chalfont,
Pennsylvania 18914 (“Optium”) (hereinafter, Finisar and Optium are jointly and severally,
individually and collectively, referred to as “Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan
arrangement dated as of March 14, 2008, evidenced by, among other documents, a certain Loan and
Security Agreement dated as of March 14, 2008, among Borrower and Bank, as affected by a certain
Joinder Agreement dated as of October 30, 2008, as amended by a certain First Loan Modification
Agreement dated as of October 30, 2008, as further amended by a certain Second Loan Modification
Agreement dated as of February 6, 2009, and as further amended by a certain Third Loan Modification
Agreement dated as of June 10, 2009 (as amended and affected, the “Loan Agreement”). Capitalized
terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement (together with any other collateral security granted to Bank, the
“Security Documents”). Hereinafter, the Security Documents, together with all other documents
evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

3. DESCRIPTION OF CHANGE IN TERMS.

	 	A.	 	Modifications to Loan Agreement.

	 	1	 	The effectiveness of this Loan Modification Agreement is
expressly conditioned upon Borrower’s receipt of net cash proceeds of at least
Forty Million Two Hundred Fifty Thousand Dollars ($40,250,000.00) in connection
with the sale of Borrower’s “Network Tools” division.
	 
	 	2	 	The Loan Agreement shall be amended by deleting the following,
appearing as Section 2.2 thereof:

	 	 	 	“ 2.2 Overadvances; Further Limitation.

     (a) If, at any time, the sum of (i) the outstanding principal
amount of any Advances (including any amounts used for Cash
Management Services), plus (ii) the face amount of any outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit
and any Letter of Credit Reserve), plus (iii) the FX Reserve, exceeds
the lesser of either the Revolving Line or the Borrowing Base,
Borrower shall immediately pay to Bank in cash such excess.

     (b) In order to have Credit Extensions made pursuant to Sections
2.1.1, 2.1.2, 2.1.3 and 2.1.4 outstanding that exceed Twenty-Five
Million Dollars ($25,000,000.00) in the aggregate, Borrower shall
provide evidence to Bank, upon Bank’s request, that it has
unrestricted cash (as set forth on its most recent

 

 

balance sheet delivered pursuant to Section 6.2) in an amount
equal to at least the sum of (i) Fifty Million Dollars
($50,000,000.00) plus (ii) the aggregate amount of Credit Extensions
made pursuant to Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 outstanding
at such time. Borrower shall be required to comply with this
provision at all times that the aggregate amount of Credit Extensions
outstanding exceeds Twenty-Five Million Dollars ($25,000,000.00).
With respect to each request of a Credit Extension that, when made,
would result in the aggregate principal amount of Credit Extensions
made pursuant to Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 outstanding
exceeding Twenty-Five Million Dollars ($25,000,000.00), Borrower
shall deliver to Bank evidence of Borrower’s compliance with this
provision (after giving effect to such Credit Extension) as a
condition precedent to such Credit Extension. If at any time the
aggregate amount of Credit Extensions outstanding exceeds the amount
permitted by this Section 2.2(b), then Borrower shall immediately pay
to Bank in cash such excess.”

	 	 	 	and inserting in lieu thereof the following:

“ 2.2 Overadvances. If, at any time, the sum of (i) the outstanding
principal amount of any Advances (including any amounts used for Cash
Management Services), plus (ii) the face amount of any outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit
and any Letter of Credit Reserve), plus (iii) the FX Reserve, exceeds
the lesser of either the Revolving Line or the Borrowing Base,
Borrower shall immediately pay to Bank in cash such excess.”

	 	3	 	The Loan Agreement shall be amended by deleting the following
appearing as Section 6.7 thereof:

	 	 	 	“ 6.7 Financial Covenants

     Borrower shall maintain at all times, to be tested as of the
last day of each month, unless otherwise noted:

	 	(a)	 	Adjusted Quick Ratio.

     (i) Quarterly Adjusted Quick Ratio. An
Adjusted Quick Ratio of at least (A) 1.10 to 1.00 as
of April 30, 2009, (B) 1.15 to 1.00 as of July 31,
2009 and October 31, 2009, and (C) 1.25 to 1.00 as of
January 31, 2010 and as of the last day of each of
Borrower’s fiscal quarters thereafter (it being
understood that the last day of each of Borrower’s
fiscal quarters occurs in January, April, July and
October).

     (ii) Intraquarterly Adjusted Quick Ratio.
An Adjusted Quick Ratio of at least (A) 0.95 to 1.00
as May 31, 2009 and June 30, 2009, and (B) 1.00 to
1.00 as of August 31, 2009 and as of the last day of
each of the first two months in each of Borrower’s
fiscal quarters thereafter (it being understood that
the first two months in each of Borrower’s fiscal
quarters are February, March, May, June, August
September, November and December).

     (b) EBITDA. As of the last day of each of
Borrower’s fiscal quarters, Borrower shall have EBITDA for the
six-month period

 

 

ending on the last day of such quarter of at least (i)
Fifteen Million Dollars ($15,000,000.00) for the quarter
ending April 30, 2009, (ii) Seven Million Five Hundred
Thousand Dollars ($7,500,000.00) for the quarter ending July
31, 2009, (iii) Fifteen Million Dollars ($15,000,000.00) for
the quarter ending October 31, 2009, and (iv) Twenty Million
Dollars ($20,000,000.00) for the quarter ending on January 31,
2010 and as of the last day of each quarter thereafter.”

	 	 	 	and inserting in lieu thereof the following:

	 	 	 	“ 6.7 Financial Covenants

     Borrower shall maintain at all times, to be tested as of the
last day of each month, unless otherwise noted:

	 	(a)	 	Adjusted Quick Ratio.

     (i) Quarterly Adjusted Quick Ratio. An
Adjusted Quick Ratio of at least (A) 1.10 to 1.00 as
of April 30, 2009, (B) 1.15 to 1.00 as of July 31,
2009, October 31, 2009, January 31, 2010 and April 30,
2010, and (C) 1.25 to 1.00 as of July 31, 2010 and as
of the last day of each of Borrower’s fiscal quarters
thereafter (it being understood that the last day of
each of Borrower’s fiscal quarters occurs in January,
April, July and October).

     (ii) Intraquarterly Adjusted Quick Ratio.
An Adjusted Quick Ratio of at least (A) 0.95 to 1.00
as May 31, 2009, June 30, 2009, August 31, 2009, and
September 30, 2009, and (B) 1.00 to 1.00 as of
November 30, 2009 and as of the last day of each of
the first two months in each of Borrower’s fiscal
quarters thereafter (it being understood that the
first two months in each of Borrower’s fiscal quarters
are February, March, May, June, August September,
November and December).

     (b) EBITDA. As of the last day of each of
Borrower’s fiscal quarters, Borrower shall have EBITDA for the
six-month period ending on the last day of such quarter of at
least (i) Fifteen Million Dollars ($15,000,000.00) for the
quarter ending April 30, 2009, (ii) Seven Million Five Hundred
Thousand Dollars ($7,500,000.00) for the quarter ending July
31, 2009, and (iii) Fifteen Million Dollars ($15,000,000.00)
for the quarter ending October 31, 2009 and as of the last day
of each quarter thereafter.”

	 	4	 	The Loan Agreement shall be amended by deleting the following,
appearing as Section 7.7 thereof:

“ 7.7 Distributions; Investments. (a) Pay any dividends or make any
distribution or payment or redeem, retire or purchase any capital
stock other than Permitted Distributions; or (b) directly or
indirectly acquire or own any Person, or make any Investment in any
Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so.”

 

 

	 	 	 	and inserting in lieu thereof the following:

“ 7.7 Distributions; Investments. (a) Pay any dividends or make any
distribution or payment or redeem, retire or purchase any capital
stock other than Permitted Distributions; provided that Borrower may
redeem certain of its convertible notes so long as (i) an Event of
Default does not exist at the time of such redemption and would not
exist after giving effect to such redemption, and (ii) the aggregate
amount of cash used by Borrower in connection with such redemption
does not exceed Fifty Million Dollars ($50,000,000.00); or (b)
directly or indirectly acquire or own any Person, or make any
Investment in any Person, other than Permitted Investments, or permit
any of its Subsidiaries to do so.”

	 	5	 	The Loan Agreement shall be amended by deleting the following
text, appearing in the definition of Eligible Accounts in Section 13.1 thereof:

“ (a) Accounts that the Account Debtor has not paid within ninety
(90) days of invoice date regardless of invoice payment period terms;

     (b) Accounts owing from an Account Debtor, fifty percent (50%)
or more of whose Accounts have not been paid within ninety (90) days
of invoice date;

     (c) Accounts owing from an Account Debtor which does not have
its principal place of business in the United States, unless such
Accounts are otherwise Eligible Accounts and covered in full by
credit insurance satisfactory to Bank;

	 	 	 	and inserting in lieu thereof the following:

“ (a) Accounts that the Account Debtor has not paid within ninety
(90) days (or, for Accounts for which the Account Debtor is Ericsson
or one of its affiliates, one hundred (100) days) of invoice date
regardless of invoice payment period terms;

     (b) Accounts owing from an Account Debtor, fifty percent (50%)
or more of whose Accounts have not been paid within ninety (90) days
(or, for Accounts for which the Account Debtor is Ericsson or one of
its affiliates, one hundred (100) days) of invoice date;

     (c) Accounts owing from an Account Debtor which does not have
its principal place of business in the United States, unless such
Accounts are (i) otherwise Eligible Accounts, (ii) covered in full by
credit insurance satisfactory to Bank, and (iii) approved by Bank in
writing in Bank’s sole and absolute discretion on a case-by-case
basis (it being understood Bank has approved Ericsson, Huawei and
Jabil Circuit);

	 	6	 	The Loan Agreement shall be amended by deleting the following
definitions, appearing in Section 13.1 thereof:

“ “Eligible Foreign Accounts” are Accounts that would be Eligible
Accounts but for the fact that the Account Debtor’s principal place
of business is

 

 

not in the United States that are approved by Bank in writing in
Bank’s sole and absolute discretion on a case-by-case basis.”

“ “LIBOR Rate” means, for each Interest Period in respect of LIBOR
Credit Extensions comprising part of the same Credit Extensions, an
interest rate per annum (rounded upward to the nearest 1/16th of one
percent (0.0625%)) equal to LIBOR for such Interest Period divided by
one (1) minus the Reserve Requirement for such Interest Period.”

“ “LIBOR Rate Margin” is three percent (3.0%).”

“ “Prime Rate” is Bank’s most recently announced “prime rate,” even
if it is not Bank’s lowest rate.”

“ “Prime Rate Margin” is one-half of one percent (0.50%).”

“ “Revolving Line” is an Advance or Advances in an aggregate amount
of up to Forty-Five Million Dollars ($45,000,000.00) outstanding at
any time.”

	 	 	 	and inserting in lieu thereof the following:

“ “Eligible Foreign Accounts” are Accounts that (a) would be Eligible
Accounts but for the fact that the Account Debtor’s principal place
of business is not in the United States, (b) are approved by Bank in
writing in Bank’s sole and absolute discretion on a case-by-case
basis, and (c) are not covered in full by credit insurance
satisfactory to Bank.”

“ “LIBOR Rate” means, for each Interest Period in respect of LIBOR
Credit Extensions comprising part of the same Credit Extensions, an
interest rate per annum (rounded upward to the nearest 1/16th of one
percent (0.0625%)) equal to the greater of (a) one and one-half
percent (1.50%), and (b) LIBOR for such Interest Period divided by
one (1) minus the Reserve Requirement for such Interest Period.”

“ “LIBOR Rate Margin” is three and one-half percent (3.50%).”

“ “Prime Rate” is the greater of (a) four percent (4.0%), and (b)
Bank’s most recently announced “prime rate,” even if it is not Bank’s
lowest rate.”

“ “Prime Rate Margin” is one percent (1.0%).”

“ “Revolving Line” is an Advance or Advances in an aggregate amount
of up to Twenty-Five Million Dollars ($25,000,000.00) outstanding at
any time.”

	 	7	 	The Borrowing Base Certificate appearing as Exhibit E
to the Loan Agreement is hereby replaced with the Borrowing Base Certificate
attached hereto as Schedule 1.

4. FEES. Borrower shall pay to Bank a modification fee equal to Ten Thousand Dollars
($10,000.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the
date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in
connection with this Loan Modification Agreement.

5. RATIFICATION OF PERFECTION CERTIFICATES.

 

 

     (a) Finisar hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of March 14, 2008 between
Finisar and Bank, and acknowledges, confirms and agrees that the disclosures and information
Finisar provided to Bank in the Perfection Certificate have not changed, as of the date hereof.

     (b) Optium hereby ratifies, confirms and reaffirms, all and singular, the terms and
disclosures contained in a certain Perfection Certificate dated as of October 30, 2008 between
Optium and Bank, and acknowledges, confirms and agrees that the disclosures and information Optium
provided to Bank in the Perfection Certificate have not changed, as of the date hereof.

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no
offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or
otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby
expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force
and effect. Bank’ s agreement to modifications to the existing Obligations pursuant to this Loan
Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the
Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will
be released by virtue of this Loan Modification Agreement.

10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it
shall have been executed by Borrower and Bank.

[The remainder of this page is intentionally left blank]

 

 

     This Loan Modification Agreement is executed as a sealed instrument under the laws of the
State of California as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	BANK:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	FINISAR CORPORATION	 	 	 	SILICON VALLEY BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ S. K. Workman	 	 	 	By:	 	/s/ Tom Smith	 	 
	 
	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:
	 	Stephen K. Workman
	 	 	 	Name:
	 	Tom Smith	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	Chief Financial Officer
	 	 	 	Title:
	 	Managing Director	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	OPTIUM CORPORATION	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ S. K. Workman	 	 	 	 	 	 	 	 
	 
	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:
	 	Stephen K. Workman	 	 	 	 	 	 	 	 
	 
	 	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
	 	Chief Financial Officer	 	 	 	 	 	 	 	 
	 
	 	 

	 	 	 	 	 	 	 	 

 

 

SCHEDULE 1

EXHIBIT E

BORROWING BASE CERTIFICATE

Borrower: Finisar Corporation and Optium Corporation

Lender: Silicon Valley Bank

Commitment Amount:     $25,000,000.00

	 	 	 	 	 
	ACCOUNTS RECEIVABLE
	 	 	 	 
	1. Accounts Receivable Book Value as of                     
	 	$	                    	 
	2. Additions (please explain on reverse)
	 	$	                    	 
	3. TOTAL ACCOUNTS RECEIVABLE
	 	$	                    	 
	 
	 	 	 	 
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	 	 	 	 
	4. Amounts over 90 days due
	 	$	                    	 
	5. Balance of 50% over 90 day accounts
	 	$	                    	 
	6. Credit balances over 90 days
	 	$	                    	 
	7. Concentration Limits
	 	$	                    	 
	8. Foreign Accounts
	 	$	                    	 
	9. Governmental Accounts
	 	$	                    	 
	10. Contra Accounts
	 	$	                    	 
	11. Promotion or Demo Accounts
	 	$	                    	 
	12. Intercompany/Employee Accounts
	 	$	                    	 
	13. Disputed Accounts
	 	$	                    	 
	14. Deferred Revenue
	 	$	                    	 
	15. Other (please explain on reverse)
	 	$	                    	 
	16. TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	 	$	                    	 
	17. Eligible Accounts (#3 minus #16)
	 	$	                    	 
	18. ELIGIBLE AMOUNT OF ACCOUNTS (80% of #17)
	 	$	                    	 
	19. Eligible Foreign Accounts
	 	$	                    	 
	20. ELIGIBLE AMOUNT OF ELIGIBLE FOREIGN ACCOUNTS (lesser of
(a) 65% of #19, and (b) $5,000,000))
	 	$	                    	 
	 
	 	 	 	 
	BALANCES
	 	 	 	 
	21. Maximum Loan Amount
	 	$	                    	 
	22. Total Funds Available Lesser of #21 or (#18 plus #20)
	 	$	                    	 
	23. Present balance owing on Line of Credit
	 	$	                    	 
	24. Outstanding under Sublimits
	 	$	                    	 
	25. RESERVE POSITION (#22 minus #23 and #24)
	 	$	                    	 

The undersigned represents and warrants that this is true, complete and correct, and that the
information in this Borrowing Base Certificate complies with the representations and warranties in
the Loan and Security Agreement between the undersigned and Silicon Valley Bank.

 

 

	 	 	 	 	 
	COMMENTS:

	 	 	          BANK USE ONLY	 
	 

	 		Received by:                
             	 
	FINISAR CORPORATION

	 		authorized signer	 
	OPTIUM CORPORATION

	 		Date:                 
                        
	 
	 

	 		Verified:             
                  
      	 
	By:            
                   
          

	 		authorized signer	 
	Authorized Signer

	 		Date:              
                      
     	 
	Date:

	 	 	Compliance Status:    Yes     No

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]