Document:

First Amendment to Revolving Credit Agreement

  
 Execution Copy

  
 Exhibit 10.34(a) 
  
 FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT 
  
 THIS FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT dated as of August 24,
2004 (the “Amendment”) by and among CERTEGY INC., a Georgia corporation (the “Borrower”), the several banks and other financial institutions from time to time party hereto (the “Lenders”), Wachovia
Bank, National Association, as syndication agent, Bank of America, N.A., as documentation agent and SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the “Administrative Agent”). 
  
 WHEREAS, the Borrower, the Administrative Agent and the Lenders are parties
to that certain Revolving Credit Agreement dated as of September 3, 2003, by and among the Borrower, the Administrative Agent and the other Lenders (the “Credit Agreement”; all capitalized terms not otherwise defined herein shall
have the meanings set forth in the Credit Agreement), pursuant to which the Lenders have made available certain financial accommodations to the Borrower and certain designated subsidiaries of the Borrower; 
  
 WHEREAS, the parties wish to amend the Credit Agreement, but only on the
terms and conditions contained herein. 
  
 NOW, THEREFORE,
for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto agree as follows: 
  
 Section 1. Amendments. 
  
 (a) The Credit Agreement is hereby amended by deleting the definition of “Acquisition” in Section 1.1 and inserting in lieu
thereof the following: 
  
 “Acquisition” shall mean any acquisition, whether by stock purchase, asset purchase, merger, consolidation or otherwise of all or substantially all of the capital stock or assets of a Person or the acquisition of a
business line of a Person. For the avoidance of doubt, the purchase price paid, and any debt incurred or obligations assumed, by a Person in connection with an Acquisition (along with the related costs and expenses incurred by such Person) shall not
be deemed to be an “Investment” by such Person under the provisions of this Agreement. 
  

 (b) The Credit Agreement is hereby further amended by deleting the definition of “Intercompany
Note” in Section 1.1 and inserting in lieu thereof the following: 
  
 “Intercompany Note” shall mean one or more intercompany notes executed and delivered by and among the Borrower and/or any of its Subsidiaries in substantially the form attached hereto as
Exhibit E or any other form approved by the Administrative Agent. 
  
 (c) The Credit Agreement is hereby further amended by deleting the definition of “Permitted Investments” in Section 1.1 and inserting in lieu thereof the following: 
  
 “Permitted Investments” shall mean: 
  
 (i) direct obligations of, or obligations the principal of
and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing within one year from the date of
acquisition thereof; 
  
 (ii) commercial paper
having the highest rating, at the time of acquisition thereof, of S&P or Moody’s and in either case maturing within six months from the date of acquisition thereof; 
  
 (iii) certificates of deposit, bankers’ acceptances and time deposits maturing within 180 days of the
date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any state thereof which has a
combined capital and surplus and undivided profits of not less than $500,000,000; 
  
 (iv) fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (i) above and
entered into with a financial institution satisfying the criteria described in clause (iii) above; and 
  
 (v) mutual funds investing solely in any one or more of the Permitted Investments described in clauses (i) through (iv) above; and

  
 (vi) with respect to investments made by
Foreign Subsidiaries, Investments (with maturities less than one year) of a non-speculative nature which are made with preservation of principal as the primary objective and in each case in accordance with normal investment practices for cash
management of such Foreign Subsidiaries. 
  

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 (d) The Credit Agreement is hereby further amended by deleting the definition of “Restricted
Investment” in Section 1.1 and inserting in lieu thereof the following: 
  
 “Restricted Investment” shall mean Investments by the Borrower or any of its Consolidated Subsidiaries in any Person other than the Borrower and its Consolidated Subsidiaries. In the event that any
Investment made by the Borrower or any of its Consolidated Subsidiaries is not otherwise permitted under the provisions of this Agreement, such Investment shall be deemed to be a Restricted Investment. 
  
 (e) The Credit Agreement is hereby further amended by deleting the definition
of “Total Acquisition Consideration” in Section 1.1 and inserting in lieu thereof the following: 
  
 “Total Acquisition Consideration” shall mean as at the date of any Acquisition: (a) the sum of, without
duplication, (i) the amount of any cash and fair market value of other property given as consideration, including at such date the deferred payment of any such amounts, (ii) the amount (determined by using the outstanding amount or the amount
payable at maturity, whichever is greater) of any obligations for money borrowed incurred, assumed or acquired by the Borrower or any Subsidiary in connection with such Acquisition, (iii) all amounts paid in respect of covenants not to compete and
consulting agreements that should be recorded on the financial statements of the Borrower and its Subsidiaries in accordance with GAAP, and (iv) the aggregate fair market value of all other consideration given by the Borrower or any Subsidiary
(including any shares of capital stock of the Borrower or any Subsidiary) in connection with such Acquisition; minus (b) all cash and cash equivalents (as determined in accordance with GAAP) acquired in connection with such Acquisition as reflected
on a balance sheet for the acquired company or acquired assets, as applicable (prepared as of the closing date of the Acquisition). 
  
 (f) The Credit Agreement is hereby further amended by adding the following definition to Section 1.1 of the Credit Agreement: 
  
 “Capital Management Subsidiary”
shall mean a domestic Wholly-Owned Subsidiary (direct or indirect) of the Borrower whose activities are limited to making and maintaining Investments in Subsidiaries of the Borrower and Permitted Investments and activities incidental thereto.

  
 (g) The Credit Agreement is hereby further amended by adding
the following definition to Section 1.1 of the Credit Agreement: 
  
 “Capital Management Subsidiary Transfer” shall mean one or more transfers on or prior to September 30, 2004 of Investments by the Borrower and its Consolidated Subsidiaries to the Capital
Management Subsidiary in an aggregate amount not to exceed $300,000,000. 
  

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 (h) The Credit Agreement is hereby further amended by deleting Section 4.16 in its entirety and inserting
in lieu thereof the following: 
  
 “Section 4.16 Investments. As of March 31, 2004, the Borrower and its Consolidated Subsidiaries have no Investments (other than Permitted Investments), which individually exceed $1,000,000 or in the aggregate exceed
$10,000,000, except as set forth on Schedule 4.16; provided, however, that where offsetting Investments exist between any two Persons, Schedule 4.16 may give effect to the netting of such Investments between those Persons by only
disclosing a single investment by one Person in the other Person.” 
  
 (i) The Credit Agreement is hereby further amended by adding the following new Section 4.17 to the end of Article IV: 
  
 “Section 4.17 Foreign Assets Control Regulations, etc. Neither the making of any Loan nor the use of the proceeds
thereof nor the issuance of any Letter of Credit will violate (a) the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or
any enabling legislation or executive order relating thereto, (b) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (the “Patriot Act”) or (c) Executive Order No.
13,224, 66 Fed. Reg. 49,079 (2001), issued by the President of the United States (Executive Order Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism). Without limiting the foregoing,
neither the Borrower nor any of its Consolidated Subsidiaries is a “blocked person” as described in Section 1 of such Executive Order. 
  
 (j) The Credit Agreement is hereby further amended by deleting Section 7.4 in its entirety and inserting in lieu thereof the following new Section 7.4:

  
 Section 7.4. Investments, Loans,
Acquisitions, Etc. The Borrower will not, and will not permit any of its Consolidated Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a Wholly-Owned Subsidiary prior to such merger),
any common stock, evidence of indebtedness or other securities (including any option, warrant, or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, Guarantee any obligations of, or make or permit to
exist any investment or any other interest in, any other Person (all of the foregoing being collectively called “Investments”, which term shall include all Restricted Investments but shall exclude all Acquisitions and shall exclude
the rendition of services 

  

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and provision of property or any charge therefor), or consummate any Acquisitions, except: 
  
 (a) Permitted Investments; 
  
 (b) Guarantees constituting Indebtedness not prohibited by Section 7.1; provided, that the
aggregate principal amount of Indebtedness of Consolidated Subsidiaries or any other entity that is Guaranteed by the Borrower or any other Consolidated Subsidiary shall be subject to the limitations set forth in clauses (c) and (d) hereof;

  
 (c) Investments by (i) the Borrower in its
domestic Consolidated Subsidiaries; (ii) the Borrower and its domestic Consolidated Subsidiaries in all Foreign Subsidiaries and (iii) all Foreign Subsidiaries in all domestic Consolidated Subsidiaries and in the Borrower, all to the extent existing
on March 31, 2004 and identified on Schedule 4.16 hereof (provided, however, that where offsetting Investments exist between any two Persons, all such Investments between such Persons existing on March 31, 2004 shall be deemed
permitted under this Section 7.4(c) even though Schedule 4.16 gives effect to the netting of such Investments between those Persons by disclosing only a single investment by one Person in the other Person); 
  
 (d) (i) Investments (other than Investments in Consolidated
Subsidiaries in the form of loans and Investments resulting from the Capital Management Subsidiary Transfer) made after March 31, 2004 by the Borrower and its Consolidated Subsidiaries in all Consolidated Subsidiaries (domestic or foreign) and all
Restricted Investments (whether in the form of loans or equity) made at any time; provided, however, that the Aggregate Net Amount (defined below) of such Investments and Restricted Investments, without duplication, shall not exceed
$200,000,000. 
  
 (ii) Investments (including,
without limitation, those in the form of loans) made after March 31, 2004 by the Borrower and its domestic Consolidated Subsidiaries in all Foreign Subsidiaries; provided, however, that (i) the Aggregate Net Amount of such Investments
made after March 31, 2004 (together with, but without duplication, all Guarantees made after March 31, 2004 by the Borrower and its domestic Consolidated Subsidiaries of Indebtedness of all Foreign Subsidiaries) shall not exceed $100,000,000. To the
extent that a particular Investment is of the 

  

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type contemplated by both clause (d)(i) and clause (d)(ii) of this Section 7.4, it must comply with both such clauses. 
  
 (iii) Investments made in the form of loans at any time by
the Borrower to its domestic Consolidated Subsidiaries or by any domestic Consolidated Subsidiaries to the Borrower or its domestic Consolidated Subsidiaries. Any Investments made by the Borrower or any Consolidated Subsidiary in any Consolidated
Subsidiary (domestic or foreign) in the form of loans shall be permitted only if otherwise permitted hereunder and evidenced by an Intercompany Note. Any Investments in the form of loans may be forgiven by the payee thereof, in whole or in
part, or otherwise converted by the payee, in whole or in part, into equity Investments so long as (y) immediately before and immediately after giving effect to the forgiveness or conversion of such loans, no Event of Default shall have occurred and
be continuing and (z) the Borrower and its Consolidated Subsidiaries shall otherwise be in compliance with the limitations on Investments set forth in this Section 7.4 after giving effect to such forgiveness or conversion. 
  
 (iv) The term “Aggregate Net Amount” shall mean
the sum (whether positive or negative) of the following Investments maintained by the relevant Person(s) making such Investments (collectively, the “Investors”) in the other relevant Person(s) (collectively, the “Investees”): (a)
with respect to equity Investments, if applicable, the amount of the equity Investments made by the subject Investors in the subject Investees after March 31, 2004 (determined at book value as of the dates such Investments are made) less the
amount of any cash dividends or other cash distributions distributed by the subject Investees to the subject Investors after March 31, 2004 in respect of the subject Investees’ equity interests plus (without duplication) the amount of
any loans to the subject Investees which are forgiven or otherwise converted into equity; (b) with respect to Investments in the form of loans, if applicable, the principal amount advanced by the subject Investors to the subject Investees after
March 31, 2004 less the amount of all principal payments made by the subject Investees to the subject Investors after March 31, 2004 in respect of loans less (without duplication) the amount of any loans to the subject Investees which
are forgiven or otherwise converted into equity; and (c) with respect to debt Investments in the form of guarantees of Indebtedness of the subject Investees by the subject Investors, the face amount of the guaranties made after March 31, 2004, less
the face amount of any guaranties that expire or are cancelled (to the extent not drawn upon) after March 31, 2004 (if any guaranty is 

  

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drawn upon, then, to the extent of such drawing, it shall be considered a debt Investment). Notwithstanding the foregoing, to the extent that either (i) the
amount of cash dividends or other cash distributions exceeds the amount of equity Investments otherwise made by any Investor in any subject Investee or (ii) the principal amount of debt repaid by any Investee exceeds the principal amount advanced to
the subject Investee by the subject Investor, then, in either case, such excess shall not be applied to reduce the Aggregate Net Amount of Investment in any other Investee. In calculating the Aggregate Net Amount of Investments in any Investees,
there will be excluded from such calculation (i) any amount that is contributed from the proceeds of equity issuances of the Borrower consummated after March 31, 2004 and (ii) the contribution to any Investee of capital stock of the Borrower held in
treasury on March 31, 2004 or any contributions to any Investee of the proceeds from any transfer thereof by the Borrower or any other Investee. 
  
 (v) The calculation of the Aggregate Net Amount of all Investments made in any Multi-Tier Investment Transaction (defined below) shall not
be done in a duplicative manner. “Multi-Tier Investment Transaction” shall mean any series of Investments made involving Borrower and/or any of its Consolidated Subsidiaries over any period of not more than 90 days where Borrower deems the
proceeds of the initial Investment (the “Initial Investment”) to have been used to make one or more subsequent Investments (each a “Subsequent Investment”); provided, however, that each such Subsequent Investment shall be deemed
not to exceed the amount of the Initial Investment or Subsequent Investment, as applicable, that immediately precedes it in such series. The calculation of the Aggregate Net Amount of the Investments made in any Multi-Tier Investment Transaction as
it relates to the usage of the equity Investment basket and the foreign Investment basket in the respective subsections (d)(i) and (d)(ii) of this Section 7.4 shall be performed so that once any portion of the Initial Investment or any Subsequent
Investment is applied in a way that constitutes usage of the applicable basket (such application being defined herein as an “Initial Basket Application”), all subsequent applications of such portion that would otherwise constitute usage of
that basket (such application being defined herein as a “Subsequent Basket Exemption”) are disregarded in the calculation of the usage of such basket. Furthermore, no return on any Subsequent Investment that constitutes a Subsequent Basket
Exemption shall reduce the Aggregate Net Amount of the basket usage of the Investments 

  

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involved in any Multi-Tier Investment Transaction unless such return is also distributed as a return on the related Initial Investment or Subsequent
Investment, as applicable, constituting the Initial Basket Application (and until so distributed, such return shall be available for reinvestment as another Subsequent Basket Exemption). 
  
 (e) loans or advances to employees, officers or directors of the Borrower or any Consolidated Subsidiary in
the ordinary course of business for travel, relocation and other business related expenses; 
  
 (f) Hedging Agreements permitted by Section 7.10; 
  
 (g) Permitted Acquisitions; 
  
 (h) Permitted Securitization Subsidiaries; 
  
 (i) Investments by Foreign Subsidiaries in other Foreign Subsidiaries, including transfers of such
Investments between Foreign Subsidiaries (without regard to the limitations set forth in subsection (d) of this Section 7.4); 
  
 (j) Investments transferred to Capital Management Subsidiary as a result of the Capital Management Subsidiary Transfer; 
  
 (k) Investments by Borrower or any domestic Consolidated
Subsidiary in any other domestic Consolidated Subsidiary to the extent consisting of any contribution of the contributors’ holdings of equity interests in any other domestic Consolidated Subsidiary; and 
  
 (l) Investments by Borrower or any domestic Consolidated
Subsidiary in any other Consolidated Subsidiary (domestic or foreign) to the extent consisting of any contribution of the contributors’ holdings of equity interests in any Foreign Subsidiary. 
  

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 (k) The Credit Agreement is hereby further amended by deleting Section 7.5 and substituting in lieu
thereof the following new Section 7.5: 
  
 Section 7.5. Restricted Payments. The Borrower will not, and will not permit its Consolidated Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any dividend on any class of its stock, or make
any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, retirement, defeasance or other acquisition of, any shares of common stock or Indebtedness subordinated to the Obligations of the
Borrower or any options, warrants, or other rights to purchase such common stock or such Indebtedness, whether now or hereafter outstanding (each, a “Restricted Payment”), except for (i) dividends payable by the Borrower solely in
shares of any class of its common stock, (ii) Restricted Payments made by any Consolidated Subsidiary or any Permitted Securitization Subsidiary to the Borrower or to another Consolidated Subsidiary or, in the case of a Permitted Securitization
Subsidiary, any Consolidated Subsidiary, (iii) cash dividends paid on, and cash redemptions of, the common stock of the Borrower and (iv) dividends and distributions made with respect to, and redemptions of, any stock of any Consolidated Subsidiary;
provided, that, in each case, no Event of Default has occurred and is continuing at the time such dividend is paid or redemption is made or would be caused thereby. 
  
 (l) The Credit Agreement is hereby further amended by deleting Section 7.6 and substituting in lieu thereof the following
new Section 7.6: 
  
 Section 7.6. Sale of
Assets. The Borrower will not, and will not permit any of its Consolidated Subsidiaries to, convey, sell, lease, assign, transfer or otherwise dispose of, any of its assets, business or property, whether now owned or hereafter acquired, or,
in the case of any Consolidated Subsidiary, issue or sell any shares of such Consolidated Subsidiary’s common stock to any Person other than the Borrower or any Wholly-Owned Subsidiary of the Borrower (or to qualify directors if required by
applicable law), except: 
  
 (a) the sale or
other disposition for fair market value of obsolete or worn out property or other property not necessary for operations disposed of in the ordinary course of business; 
  
 (b) the sale of inventory and Permitted Investments in the ordinary course of business; 
  
 (c) the sale of any receivables and related property to one
or more Permitted Securitization Subsidiaries so long as such sale is made in connection with a Permitted Securitization Transaction; 
  

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 (d) transfers made as part of Acquisitions and Investments permitted under Section 7.4
hereof; and 
  
 (e) the sale or other disposition
of such assets (which may include the capital stock of any Subsidiary of the Borrower or all or substantially all of the assets of any Subsidiary of the Borrower) so long as (i) the aggregate Consolidated EBIT attributable to assets which are
disposed of in any fiscal year of the Borrower does not exceed 10% of the Consolidated EBIT for the immediately preceding fiscal year and (ii) the aggregate amount of assets (determined at book value in accordance with GAAP) which are disposed of in
any fiscal year of the Borrower do not exceed in the aggregate 10% of the Consolidated Total Assets as of the end of the immediately preceding fiscal year. 
  
 (m) The Credit Agreement is hereby further amended by adding the following new Section 7.12 to the end of Article VII: 
  
 Section 7.12. Capital Management Subsidiary.
The Borrower will not permit its Capital Management Subsidiary to engage in any business other than making Investments (including Permitted Investments) and activities incidental thereto. Unless otherwise permitted by the Administrative Agent,
the Capital Management Subsidiary shall not own any material assets other than Investments (including Permitted Investments) and not incur any Indebtedness other than Indebtedness to the Borrower or any of its Subsidiaries or in connection with the
making of Permitted Investments. The Administrative Agent shall provide prompt notice to each of the Lenders following any consent given under this Section 7.12. 
  
 (n) The Credit Agreement is hereby further amended by deleting Schedule 4.16 and inserting in lieu thereof the new Schedule
4.16 attached hereto. 
  
 (o) The Credit Agreement is hereby
further amended by deleting Exhibit E and inserting in lieu thereof the new Exhibit E attached hereto. 
  

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 Section 2. Benefits of Loan Documents. 
  
 Each reference to the Credit Agreement in any of the Loan Documents shall be
deemed to be a reference to the Credit Agreement as amended by this Amendment, and as the Credit Agreement may from time to time be further amended, supplemented, restated or otherwise modified in the future by one or more other written amendments
or supplemental or modification agreements entered into pursuant to the applicable provisions thereof. 
  
 Section 3. Conditions to Effectiveness of Amendment. The effectiveness of this Amendment is subject to the condition precedent that each of the
following be received by the Administrative Agent (unless otherwise waived in writing by the Administrative Agent), each of which shall be satisfactory in form and substance to the Administrative Agent: 
  
 (a) this Amendment executed by the Borrower, the Administrative Agent and the
Required Lenders; and 
  
 (b) such other approvals, opinions or
documents as the Administrative Agent may reasonably request. 
  
 Section 4. Representations. The Borrower represents to the Lenders that: 
  
 (a) The execution, delivery and performance by the Borrower of this Amendment, (i) does not require any consent or approval of, registration or filing with, or any action by, any Governmental Authority, except those
as have been obtained or made and are in full force and effect or where the failure to do so, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (ii) will not violate any applicable law or
regulation or any order of any Governmental Authority which could reasonably be expected to have a Material Adverse Effect, (iii) will not violate the charter, by-laws or other organizational documents of the Borrower or any of its Consolidated
Subsidiaries, (iv) will not violate or result in a default under any indenture, material agreement or other material instrument binding on the Borrower or any of its Consolidated Subsidiaries or any of its assets or give rise to a right thereunder
to require any payment to be made by the Borrower or any of its Consolidated Subsidiaries and (v) will not result in the creation or imposition of any Lien on any asset of the Borrower or any of its Consolidated Subsidiaries, except Liens (if any)
created under the Loan Documents. 
  
 (b) The execution, delivery
and performance by the Borrower of this Amendment is within the Borrower’s organizational powers and has been duly authorized by all necessary organizational, and if required, stockholder action. This Amendment has been duly executed and
delivered by the Borrower, and constitutes the valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or 

  

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similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity. 
  
 (c) Immediately after giving effect to this Amendment, no Default or Event of
Default exists. 
  
 Section 5. Reaffirmation. The Borrower
hereby repeats and reaffirms all representations and warranties made by the Borrower in the Credit Agreement (as revised by this Amendment) and the other Loan Documents to which it is a party as of the date hereof with the same force and effect as
if such representations and warranties were set forth in this Amendment in full except to the extent such representations expressly relate to an earlier date or have been updated to the extent permitted by the Credit Agreement (as revised by this
Amendment). 
  
 Section 6. Benefits. This Amendment shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 Section 7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF GEORGIA. 
  
 Section 8. Effect. Except as expressly herein amended, the
terms and conditions of the Credit Agreement shall remain in full force and effect. Notwithstanding anything to the contrary in any Loan Document, the Administrative Agent and the Lenders hereby consent to all Investments made by the Borrower and
its Consolidated Subsidiaries on or prior to March 31, 2004; provided, however, that, with respect to any of such Investments that remained in existence on March 31, 2004, such consent shall not extend to those Investments required to be disclosed
on Schedule 4.16 and not disclosed thereon. 
  
 Section 9.
Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties. 
  
 [Signatures on following page] 
  

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 IN WITNESS WHEREOF, the parties have caused this First Amendment to Revolving Credit Agreement to be
executed by their authorized officers all as of the day and year first above written. 
  

			
	CERTEGY INC.
		
	By	 	 
	 	 	 Name:

	 	 	 Title:

  

			
	SUNTRUST BANK
	as Administrative Agent, as Issuing Bank, as Swingline Lender and as a Lender
		
	 By
	 	 
	 Name:
	 	 Brian K. Peters

	 Title:
	 	 Managing Director

  

			
	WACHOVIA BANK, NATIONAL
	ASSOCIATION
	as Syndication Agent and as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	BANK OF AMERICA, N.A.
	as Documentation Agent and as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	FLEET NATIONAL BANK
	as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 [Signatures
Continued on Next Page] 
  

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 [Signature Page to First Amendment to Revolving Credit Agreement – Certegy] 
  

			
	BNP PARIBAS
	as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	SUMITOMO MITSUI BANKING
	CORPORATION
	as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	MELLON BANK N.A.
	as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

			
	CALYON NEW YORK BRANCH
	as a Lender
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 
		
	 By
	 	 
	 Name:
	 	 
	 Title:
	 	 

  

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 EXHIBIT E 

 
 MASTER INTERCOMPANY NOTE 
  
 August     , 2004 
  
 FOR VALUE RECEIVED, each of the parties hereto, in its capacity as a borrower
(each, in such capacity, an “Intercompany Borrower”), hereby promises to pay to the order of each of the other parties hereto, in its capacity as a lender (each, in such capacity, an “Intercompany Lender”), as applicable, the
unpaid principal amount of advances made by the applicable Intercompany Lender to the applicable Intercompany Borrower from time to time as shown on the general ledger of the applicable Intercompany Lender at such time, unless previously paid in
full, ON DEMAND, and to pay interest on such unpaid principal amount for each day such amount shall remain outstanding at the interest rate agreed to by the applicable Intercompany Borrower and the applicable Intercompany Lender from time to
time with such interest payable at such times as may be required the applicable Intercompany Lender. 
  
 It is contemplated that the parties to this Master Intercompany Note shall be Certegy Capital, Inc., a Georgia corporation (“Capital”), Certegy
Inc., a Georgia corporation (“Certegy”), and certain of Certegy’s direct and indirect subsidiaries, as they may exist from time to time. Additional parties may be added to this Master Intercompany Note by the execution and delivery of
a Joinder to Master Intercompany Note substantially in the form attached hereto as Exhibit A (or in such other form as may be approved by Capital, in its sole discretion). Any of the parties to this Master Intercompany Note may be removed as parties
hereto at any time by the execution and delivery of a Withdrawal from Master Intercompany Note substantially in the form attached hereto as Exhibit B (or in such other form as may be approved by Capital, in its sole discretion); provided, however,
that (i) neither Certegy nor Capital may be removed unless all then remaining parties to this Master Intercompany Note are removed and this Master Intercompany Note is cancelled and (ii) unless this Master Intercompany Note is cancelled, no party
hereto may be removed from this Master Intercompany Note at any time when either (a) such party remains indebted to another party hereto for money borrowed or (b) such party is owed money by another party hereto for money borrowed (unless in the
case of either clause (a) or (b) above, the remaining indebtedness is then separately documented by a promissory note between the relevant parties). 
  
 Presentment, demand, protest and notice of dishonor are hereby waived by the parties hereto. 
  
 This Master Intercompany Note is one of the Intercompany Notes referred to in that certain Revolving Credit Agreement dated
as of September 3, 2003, by and among Certegy, the lenders from time to time a party thereto, Wachovia Bank, N.A., as syndication agent, Bank of America, N.A., as documentation agent, and SunTrust Bank, as administrative agent (as amended or
otherwise modified from time to time, the “Credit Agreement”) and is made in accordance with the provisions of Section 7.4 thereof. 
  

 This Master Intercompany Note may be executed in counterparts and delivered by facsimile transmission
with the same effect as if all parties hereto originally executed the same copy hereof and such originally executed copy hereof were delivered to all parties hereto. 
  
 THIS MASTER INTERCOMPANY NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF GEORGIA.

  
 IN WITNESS WHEREOF, each of the parties hereto has executed
this Master Intercompany Note as of the date of issuance first above written. 
  

									
	 CERTEGY INC.
	 	 	 	 CERTEGY CAPITAL, INC.

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 [ENTITY NAME]
	 	 	 	 [ENTITY NAME]

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 [ENTITY NAME]
	 	 	 	 [ENTITY NAME]

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 [ENTITY NAME]
	 	 	 	 [ENTITY NAME]

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 [ENTITY NAME]
	 	 	 	 [ENTITY NAME]

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 

  

									
	 [ENTITY NAME]
	 	 	 	 [ENTITY NAME]

					
	 By:
	 	 	 	 	 	 By:
	 	 
	 Name:
	 	 	 	 	 	 Name:
	 	 
	 Title:
	 	 	 	 	 	 Title:
	 	 

  

  
 EXHIBIT A 
 TO 
 MASTER INTERCOMPANY NOTE 
  
 FORM OF JOINDER TO MASTER INTERCOMPANY NOTE 
  
 JOINDER TO MASTER INTERCOMPANY NOTE 
  
 THIS JOINDER TO MASTER INTERCOMPANY NOTE (“Joinder”) is made by the
undersigned (collectively, the “Additional Party”) as of                     , 20    , and supplements
that certain Master Intercompany Note dated as of August     , 2004 (as the same may be amended, restated, supplemented or otherwise modified from time to time, and as subject to this and any other joinder thereto or
withdrawal therefrom, the “Master Intercompany Note”) by and among Certegy Capital, Inc., Certegy Inc. and the other parties thereto as borrowers and lenders. 
  
 Reference is made to that certain Revolving Credit Agreement dated as of September 3, 2003, by and among Certegy, the
lenders from time to time a party thereto, Wachovia Bank, N.A., as syndication agent, Bank of America, N.A., as documentation agent, and SunTrust Bank, as administrative agent (as amended or otherwise modified from time to time, the “Credit
Agreement”). 
  
 Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the Master Intercompany Note, and if not defined therein, shall have the meanings ascribed to such terms in the Credit Agreement. 
  
 Pursuant to Section 7.4 of the Credit Agreement, the Additional Party is
required to enter into the Master Intercompany Note on or prior to the time that certain investments are made between the Additional Party and one or more other parties to the Master Intercompany Note. The Master Intercompany Note provides that
additional parties may become parties under the Master Intercompany Note by execution and delivery of an instrument substantially in the form of this Joinder. 
  

In accordance with the Master Intercompany Note, the Additional Party by its signature below becomes a party to the Master Intercompany Note with the
same force and effect as if originally named therein as a party thereto and the Additional Party hereby agrees to all the terms thereof. Each reference to an “Intercompany Borrower” or an “Intercompany Lender” in the Master
Intercompany Note shall be deemed to include the Additional Party, as applicable, in its appropriate capacity. The Master Intercompany Note is hereby incorporated by reference. 
  
 This Joinder may be executed in counterparts and delivered by facsimile transmission with the same effect as if all parties
hereto originally executed the same copy hereof and such originally executed copy hereof were delivered to Capital. This Joinder shall become effective as of the date first set forth above upon delivery to Capital of a copy of this Joinder that
bears the signature of the Additional Party. 
  

 Except as expressly supplemented hereby, the Master Intercompany Note shall remain in full force and
effect. 
  
 THIS JOINDER SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA. 
  
 IN WITNESS
WHEREOF, the Additional Party has duly executed this Joinder as of the day and year first above written. 
  

			
	 [NAME OF ADDITIONAL PARTY]

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 [add any further Additional Party
signature blocks here] 
  

  
 Execution Copy

  
 EXHIBIT B 
 TO 
 MASTER INTERCOMPANY NOTE 
  
 FORM OF WITHDRAWAL FROM MASTER INTERCOMPANY NOTE 
  
 WITHDRAWAL FROM MASTER INTERCOMPANY NOTE 
  
 THIS WITHDRAWAL FROM MASTER INTERCOMPANY NOTE (“Withdrawal”) is
made by the undersigned (collectively, the “Withdrawing Party”) as of                     , 20    , and
supplements that certain Master Intercompany Note dated as of August     , 2004 (as the same may be amended, restated, supplemented or otherwise modified from time to time, and as subject to this and any other joinder
thereto or withdrawal therefrom, the “Master Intercompany Note”) by and among Certegy Capital, Inc., Certegy Inc. and the other parties thereto as borrowers and lenders. 
  
 Reference is made to that certain Revolving Credit Agreement dated as of September 3, 2003, by and among Certegy, the
lenders from time to time a party thereto, Wachovia Bank, N.A., as syndication agent, Bank of America, N.A., as documentation agent, and SunTrust Bank, as administrative agent (as amended or otherwise modified from time to time, the “Credit
Agreement”). 
  
 Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the Master Intercompany Note, and if not defined therein, shall have the meanings ascribed to such terms in the Credit Agreement. 
  
 Pursuant to Section 7.4 of the Credit Agreement, the Withdrawing Party was
required to enter into the Master Intercompany Note on or prior to the time that certain investments were to be made between the Withdrawing Party and one or more other parties to the Master Intercompany Note. The Master Intercompany Note provides
that existing parties thereto may withdraw therefrom upon the satisfaction of certain conditions and the execution and delivery of an instrument substantially in the form of this Withdrawal. 
  
 In accordance with the Master Intercompany Note, the Withdrawing Party by its
signature below hereby withdraws from the Master Intercompany Note, effective as of the date recited in Capital’s acceptance hereof below. 
  
 This Withdrawal may be executed in counterparts and delivered by facsimile transmission with the same effect as if all parties hereto originally executed
the same copy hereof and such originally executed copy hereof were delivered to Capital. 
  
 Except as against the Withdrawing Party from and after the effectiveness of this Withdrawal, the Master Intercompany Note shall remain in full force and effect. 
  

 THIS WITHDRAWAL SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

  
 IN WITNESS WHEREOF, the Withdrawing Party has duly executed
this Withdrawal as of the day and year first above written. 
  

			
	 [NAME OF WITHDRAWING PARTY]

		
	 By:
	 	 
	 Name:
	 	 
	 Title:
	 	 

  
 [add any further Withdrawing Party
signature blocks here] 
  
 Accepted as of the      day
of                     , 20    , by 
  

			
	 CERTEGY CAPITAL, INC.

		
	 By:
	 	 
	 Name:
	 	 
	 Title:2004 Omnibus Incentive Compensation Plan

 EXHIBIT 4.1 
  

  
 CALIFORNIA MICRO DEVICES CORPORATION 
  
 2004
OMNIBUS INCENTIVE COMPENSATION PLAN 
  
 (Adopted by the Board
on June 22, 2004) 
  

 Table of Contents 
  

					
	 	  	 	  	Page

	SECTION 1.	  	ESTABLISHMENT AND PURPOSE.	  	1
			
	SECTION 2.	  	DEFINITIONS.	  	1
	              (a)	  	“Affiliate”	  	1
	              (b)	  	“Award”	  	1
	              (c)	  	“Board of Directors”	  	1
	              (d)	  	“Change in Control”	  	1
	              (e)	  	“Code”	  	2
	              (f)	  	“Committee”	  	2
	              (g)	  	“Company”	  	2
	              (h)	  	“Consultant”	  	2
	              (i)	  	“Employee”	  	2
	              (j)	  	“Exchange Act”	  	2
	              (k)	  	“Exercise Price”	  	2
	              (l)	  	“Fair Market Value”	  	2
	              (m)	  	“ISO”	  	3
	              (n)	  	“Nonstatutory Option”	  	3
	              (o)	  	“Offeree”	  	3
	              (p)	  	“Option”	  	3
	              (q)	  	“Optionee”	  	3
	              (r)	  	“Outside Director”	  	3
	              (s)	  	“Parent”	  	3
	              (t)	  	“Participant”	  	3
	              (u)	  	“Plan”	  	3
	              (v)	  	“Purchase Price”	  	3
	              (w)	  	“Restricted Share”	  	3
	              (x)	  	“Restricted Share Agreement”	  	3
	              (y)	  	“SAR”	  	3
	              (z)	  	“SAR Agreement”	  	3
	              (aa)	  	“Service”	  	3
	              (bb)	  	“Share”	  	4
	              (cc)	  	“Stock”	  	4
	              (dd)	  	“Stock Option Agreement”	  	4
	              (ee)	  	“Stock Unit”	  	4
	              (ff)	  	“Stock Unit Agreement”	  	4
	              (gg)	  	“Subsidiary”	  	4
	              (hh)	  	“Total and Permanent Disability”	  	4
			
	SECTION 3.	  	ADMINISTRATION.	  	4
	              (a)	  	Committee Composition	  	4
	              (b)	  	Committee for Non-Officer Grants	  	4
	              (c)	  	Committee Procedures	  	4
	              (d)	  	Committee Responsibilities	  	4
			
	SECTION 4.	  	ELIGIBILITY.	  	5
	              (a)	  	General Rule	  	5
	              (b)	  	Automatic Grants to Outside Directors	  	6
	              (c)	  	Ten-Percent Stockholders	  	6
	              (d)	  	Attribution Rules	  	6
	              (e)	  	Outstanding Stock	  	6

  
 CALIFORNIA MICRO DEVICES CORPORATION 
 2004 OMNIBUS
INCENTIVE COMPENSATION PLAN 
  

 i 

					
	SECTION 5.	  	STOCK SUBJECT TO PLAN.	  	6
	              (a)	  	Basic Limitation	  	6
	              (b)	  	Individual Award Limitation	  	7
	              (c)	  	Additional Shares	  	7
			
	SECTION 6.	  	RESTRICTED SHARES.	  	7
	              (a)	  	Restricted Stock Agreement	  	7
	              (b)	  	Payment for Awards	  	7
	              (c)	  	Vesting	  	7
	              (d)	  	Voting and Dividend Rights	  	7
	              (e)	  	Restrictions on Transfer of Shares	  	7
			
	SECTION 7.	  	TERMS AND CONDITIONS OF OPTIONS.	  	7
	              (a)	  	Stock Option Agreement	  	7
	              (b)	  	Number of Shares	  	8
	              (c)	  	Exercise Price	  	8
	              (d)	  	Withholding Taxes	  	8
	              (e)	  	Exercisability and Term	  	8
	              (f)	  	Exercise of Options Upon Termination of Service	  	8
	              (g)	  	Effect of Change in Control	  	8
	              (h)	  	Leaves of Absence	  	8
	              (i)	  	No Rights as a Shareholder	  	9
	              (j)	  	Modification, Extension and Renewal of Options	  	9
	              (k)	  	Restrictions on Transfer of Shares	  	9
			
	SECTION 8.	  	PAYMENT FOR SHARES.	  	9
	              (a)	  	General Rule	  	9
	              (b)	  	Surrender of Stock	  	9
	              (c)	  	Services Rendered	  	9
	              (d)	  	Cashless Exercise	  	9
	              (e)	  	Exercise/Pledge	  	9
	              (f)	  	Other Forms of Payment	  	9
	              (g)	  	Limitations under Applicable Law	  	9
			
	SECTION 9.	  	STOCK APPRECIATION RIGHTS.	  	10
	              (a)	  	SAR Agreement	  	10
	              (b)	  	Number of Shares	  	10
	              (c)	  	Exercise Price	  	10
	              (d)	  	Exercisability and Term	  	10
	              (e)	  	Effect of Change in Control	  	10
	              (f)	  	Exercise of SARs	  	10
	              (g)	  	Modification or Assumption of SARs	  	10
			
	SECTION 10.	  	STOCK UNITS.	  	10
	              (a)	  	Stock Unit Agreement	  	10
	              (b)	  	Payment for Awards	  	10
	              (c)	  	Vesting Conditions	  	10
	              (d)	  	Voting and Dividend Rights	  	11
	              (e)	  	Form and Time of Settlement of Stock Units	  	11
	              (f)	  	Death of Recipient	  	11
	              (g)	  	Creditors’ Rights	  	11
			
	SECTION 11.	  	TRANSFERABILITY; PERFORMANCE GOALS	  	11
	              (a)	  	Transferability	  	11
	              (b)	  	Performance Goals	  	11
			
	SECTION 12.	  	ADJUSTMENT OF SHARES.	  	12
	              (a)	  	Adjustments	  	12
	              (b)	  	Dissolution or Liquidation	  	12

  
 CALIFORNIA MICRO DEVICES CORPORATION 
 2004 OMNIBUS
INCENTIVE COMPENSATION PLAN 
  

 ii 

					
	                (c)	  	Reorganizations	  	12
	                (d)	  	Reservation of Rights	  	13
			
	SECTION 13.	  	DEFERRAL OF AWARDS.	  	13
			
	SECTION 14.	  	AWARDS UNDER OTHER PLANS.	  	13
			
	SECTION 15.	  	PAYMENT OF DIRECTOR’S FEES IN SECURITIES.	  	13
	                (a)	  	Effective Date	  	13
	                (b)	  	Elections to Receive NSOs, Restricted Shares or Stock Units	  	13
	                (c)	  	Number and Terms of NSOs, Restricted Shares or Stock Units	  	14
			
	SECTION 16.	  	LEGAL AND REGULATORY REQUIREMENTS.	  	14
			
	SECTION 17.	  	WITHHOLDING TAXES.	  	14
	                (a)	  	General	  	14
	                (b)	  	Share Withholding	  	14
			
	SECTION 18.	  	NO EMPLOYMENT RIGHTS.	  	14
			
	SECTION 19.	  	DURATION AND AMENDMENTS.	  	14
	                (a)	  	Term of the Plan	  	14
	                (b)	  	Right to Amend or Terminate the Plan	  	14
	                (c)	  	Effect of Termination	  	14
			
	SECTION 20.	  	EXECUTION.	  	15

  
 CALIFORNIA MICRO DEVICES CORPORATION 
 2004 OMNIBUS
INCENTIVE COMPENSATION PLAN 
  

 iii 

 CALIFORNIA MICRO DEVICES CORPORATION 
  
 2004 OMNIBUS INCENTIVE COMPENSATION PLAN 
  
 SECTION 1. ESTABLISHMENT AND PURPOSE. 
  
 The Plan was adopted by the Board of Directors on June 22, 2004, subject to shareholder approval, which was effective on August 12, 2004 (the
“Effective Date”). The plan is a successor to the Company’s 1995 Employee Stock Option Compensation Plan and the 1995 Non-Employee Directors’ Stock Option Plan (the “Prior Plans”). As of the Effective Date, no further
awards shall be made under the Prior Plans. However, the provisions of the Prior Plans shall continue to apply to awards granted under the Prior Plans prior to the Effective Date. In the event that this Plan is not approved by shareholders, awards
shall continue to be made under the Prior Plans in accordance with their terms. The purpose of the Plan is to promote the long-term success of the Company and the creation of shareholder value by (a) encouraging Employees, Outside Directors and
Consultants to focus on critical long-range objectives, (b) encouraging the attraction and retention of Employees, Outside Directors and Consultants with exceptional qualifications and (c) linking Employees, Outside Directors and Consultants
directly to shareholder interests through increased stock ownership. The Plan seeks to achieve this purpose by providing for Awards in the form of restricted shares, stock units, options (which may constitute incentive stock options or nonstatutory
stock options) or stock appreciation rights. 
  
 SECTION 2. DEFINITIONS.

  
 (a) “Affiliate” shall mean any
entity other than a Subsidiary, if the Company and/or one of more Subsidiaries own not less than 50% of such entity. 
  
 (b) “Award” shall mean any award of an Option, a SAR, a Restricted Share or a Stock Unit under the Plan. 
  
 (c) “Board of Directors” shall mean the Board of
Directors of the Company, as constituted from time to time. 
  
 (d) “Change in Control” shall mean the occurrence of any of the following events: 
  
 (i) A change in the composition of the Board of Directors occurs, as a result of which fewer than one-half of the incumbent directors are directors who
either: 
  
 (A) Had been directors of the Company on the
“look-back date” (as defined below) (the “original directors”); or 
  
 (B) Were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority of the aggregate of the original directors who were still in office at the time of the election
or nomination and the directors whose election or nomination was previously so approved (the “continuing directors”); or 
  
 (ii) Any “person” (as defined below) who by the acquisition or aggregation of securities, is or becomes the “beneficial owner” (as
defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of the combined voting power of the Company’s then outstanding securities ordinarily (and apart from rights accruing
under special circumstances) having the right to vote at elections of directors (the “Base Capital Stock”); except that any change in the relative beneficial ownership of the Company’s securities by any person resulting solely from a
reduction in the aggregate number of outstanding shares of Base Capital Stock, and any decrease thereafter in such person’s ownership of securities, shall be disregarded until such person increases in any manner, directly or indirectly, such
person’s beneficial ownership of any securities of the Company; or 
  

 1 

 (iii) The consummation of a merger or consolidation of the Company with or into another entity or any
other corporate reorganization, if persons who were not shareholders of the Company immediately prior to such merger, consolidation or other reorganization own immediately after such merger, consolidation or other reorganization 50% or more of the
voting power of the outstanding securities of each of (A) the continuing or surviving entity and (B) any direct or indirect parent corporation of such continuing or surviving entity; or 
  
 (iv) The sale, transfer or other disposition of all or substantially all of the Company’s assets. 
  
 For purposes of subsection (d)(i) above, the term “look-back” date
shall mean the later of (1) the Effective Date or (2) the date 24 months prior to the date of the event that may constitute a Change in Control. 
  
 For purposes of subsection (d)(ii) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange
Act but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan maintained by the Company or a Parent or Subsidiary and (2) a corporation owned directly or indirectly by the shareholders of the Company in
substantially the same proportions as their ownership of the Stock. 
  
 Any other provision of this Section 2(d) notwithstanding, a transaction shall not constitute a Change in Control if its sole purpose is to change the state of the Company’s incorporation or to create a holding company that will be
owned in substantially the same proportions by the persons who held the Company’s securities immediately before such transaction, and a Change in Control shall not be deemed to occur if the Company files a registration statement with the
Securities and Exchange Commission for the initial offering of Stock to the public. 
  
 (e) “Code” shall mean the Internal Revenue Code of 1986, as amended. 
  
 (f) “Committee” shall mean the Compensation Committee as designated by the Board of Directors, which is authorized to administer
the Plan, as described in Section hereof. 
  
 (g)
“Company” shall mean California Micro Devices Corporation, a California corporation. 
  
 (h) “Consultant” shall mean a consultant or advisor who provides bona fide services to the Company, a Parent, a Subsidiary or an
Affiliate as an independent contractor or a member of the board of directors of a Parent or a Subsidiary who is not an Employee. Service as a Consultant shall be considered Service for all purposes of the Plan. 
  
 (i) “Employee” shall mean any individual who is a
common-law employee of the Company, a Parent or a Subsidiary. 
  
 (j) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
  
 (k) “Exercise Price” shall mean, in the case of an Option, the amount for which one Common Share may be purchased upon exercise of
such Option, as specified in the applicable Stock Option Agreement. “Exercise Price,” in the case of a SAR, shall mean an amount, as specified in the applicable SAR Agreement, which is subtracted from the Fair Market Value of one Common
Share in determining the amount payable upon exercise of such SAR. 
  
 (l) “Fair Market Value” with respect to a Share, shall mean the market price of one Share of Stock, determined by the Committee as follows: 
  
 (i) If the Stock was traded over-the-counter on the date in question but was not traded on The Nasdaq Stock Market, then the
Fair Market Value shall be equal to the last transaction price quoted for such date by the OTC Bulletin Board or, if not so quoted, shall be equal to the mean between the last reported representative bid and asked prices quoted for such date by the
principal automated inter-dealer quotation system on which the Stock is quoted or, if the Stock is not quoted on any such system, by the “Pink Sheets” published by the National Quotation Bureau, Inc.; 
  

 2 

 (ii) If the Stock was traded on The Nasdaq Stock Market, then the Fair Market Value shall be equal to the
last reported sale price quoted for such date by The Nasdaq Stock Market; 
  
 (iii) If the Stock was traded on a United States stock exchange on the date in question, then the Fair Market Value shall be equal to the closing price reported for such date by the applicable composite-transactions
report; and 
  
 (iv) If none of the foregoing provisions is
applicable, then the Fair Market Value shall be determined by the Committee in good faith on such basis as it deems appropriate. 
  
 (v) In all cases, the determination of Fair Market Value by the Committee shall be conclusive and binding on all persons. 
  
 (m) “ISO” shall mean an employee incentive stock
option described in Section 422 of the Code. 
  
 (n)
“Nonstatutory Option” or “NSO” shall mean an employee stock option that is not an ISO. 
  
 (o) “Offeree” shall mean an individual to whom the Committee has offered the right to acquire Shares under the Plan (other than
upon exercise of an Option). 
  
 (p)
“Option” shall mean an ISO or Nonstatutory Option granted under the Plan and entitling the holder to purchase Shares. 
  
 (q) “Optionee” shall mean an individual or estate who holds an Option or SAR. 
  
 (r) “Outside Director” shall mean a member of the
Board of Directors who is not a common-law employee of, or paid consultant to, the Company, a Parent or a Subsidiary. Service as an Outside Director shall be considered Service for all purposes of the Plan, except as provided in Section 4(a).

  
 (s) “Parent” shall mean any
corporation (other than the Company) in an unbroken chain of corporations ending with the Company, if each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one
of the other corporations in such chain. corporation that attains the status of a Parent on a date after the adoption of the Plan shall be a Parent commencing as of such date. 
  
 (t) “Participant” shall mean an individual or estate who holds an Award. 
  
 (u) “Plan” shall mean this 2004 Omnibus Incentive
Compensation Plan of California Micro Devices Corporation, as amended from time to time. 
  
 (v) “Purchase Price” shall mean the consideration for which one Share may be acquired under the Plan (other than upon exercise of an Option), as specified by the Committee. 
  
 (w) “Restricted Share” shall mean a Share awarded
under the Plan. 
  
 (x) “Restricted Share
Agreement” shall mean the agreement between the Company and the recipient of a Restricted Share which contains the terms, conditions and restrictions pertaining to such Restricted Shares. 
  
 (y) “SAR” shall mean a stock appreciation right
granted under the Plan. 
  
 (z) “SAR
Agreement” shall mean the agreement between the Company and an Optionee which contains the terms, conditions and restrictions pertaining to his or her SAR. 
  
 (aa) “Service” shall mean service as an Employee, Consultant or Outside Director. 
  

 3 

 (bb) “Share” shall mean one share of Stock, as adjusted in accordance with
Section 8 (if applicable). 
  
 (cc)
“Stock” shall mean the Common Stock of the Company. 
  
 (dd) “Stock Option Agreement” shall mean the agreement between the Company and an Optionee that contains the terms, conditions and restrictions pertaining to his Option. 
  
 (ee) “Stock Unit” shall mean a bookkeeping entry
representing the equivalent of one Share, as awarded under the Plan. 
  
 (ff) “Stock Unit Agreement” shall mean the agreement between the Company and the recipient of a Stock Unit which contains the terms, conditions and restrictions pertaining to such Stock Unit. 
  
 (gg) “Subsidiary” shall mean any corporation, if the
Company and/or one or more other Subsidiaries own not less than 50% of the total combined voting power of all classes of outstanding stock of such corporation. A corporation that attains the status of a Subsidiary on a date after the adoption of the
Plan shall be considered a Subsidiary commencing as of such date. 
  
 (hh) “Total and Permanent Disability” shall mean that the Optionee is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to
result in death or that has lasted, or can be expected to last, for a continuous period of not less than 12 months. 
  
 SECTION 3. ADMINISTRATION. 
  
 (a) Committee Composition. The Plan shall be administered by the Committee. The Committee shall consist of two or more directors of the
Company, who shall be appointed by the Board. In addition, the composition of the Committee shall satisfy (i) such requirements as the Securities and Exchange Commission may establish for administrators acting under plans intended to qualify for
exemption under Rule 16b-3 (or its successor) under the Exchange Act; and (ii) such requirements as the Internal Revenue Service may establish for outside directors acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of
the Code. 
  
 (b) Committee for Non-Officer Grants.
The Board may also appoint one or more separate committees of the Board, each composed of two or more directors of the Company who need not satisfy the requirements of Section 3(a), who may administer the Plan with respect to Employees who are not
considered officers or directors of the Company under Section 16 of the Exchange Act, may grant Awards under the Plan to such Employees and may determine all terms of such grants. Within the limitations of the preceding sentence, any reference in
the Plan to the Committee shall include such committee or committees appointed pursuant to the preceding sentence. Subject to compliance with applicable law, the Board of Directors may also authorize one or more officers of the Company to designate
Employees, other than officers under Section 16 of the Exchange Act, to receive Awards and/or to determine the number of such Awards to be received by such persons; provided, however, that the Board of Directors shall specify the total number of
Awards that such officers may so award. 
  
 (c)
Committee Procedures. The Board of Directors shall designate one of the members of the Committee as chairman. The Committee may hold meetings at such times and places as it shall determine. The acts of a majority of the Committee members
present at meetings at which a quorum exists, or acts reduced to or approved in writing by all Committee members, shall be valid acts of the Committee. 
  
 (d) Committee Responsibilities. Subject to the provisions of the Plan, the Committee shall have full authority and discretion to take the
following actions: 
  
 (i) To interpret the Plan and to apply its
provisions; 
  
 (ii) To adopt, amend or rescind rules, procedures
and forms relating to the Plan; 
  

 4 

 (iii) To authorize any person to execute, on behalf of the Company, any instrument required to carry out
the purposes of the Plan; 
  
 (iv) To determine when Awards are to
be granted under the Plan; 
  
 (v) To select the Offerees and
Optionees; 
  
 (vi) To determine the number of Shares to be made
subject to each Award; 
  
 (vii) To prescribe the terms and
conditions of each Award, including (without limitation) the Exercise Price or Purchase Price, and the vesting or duration of the Award (including accelerating the vesting of Awards, either at the time of the Award or thereafter, without the consent
of the Participant), to determine whether an Option is to be classified as an ISO or as a Nonstatutory Option, and to specify the provisions of the agreement relating to such Award; 
  
 (viii) To establish or verify the extent of satisfaction of any performance goals or other conditions applicable to the
grant, issuance, exercisability, vesting and/or ability to retain any Award; 
  
 (ix) To amend any outstanding Award agreement, subject to applicable legal restrictions and to the consent of the Participant if the Participant’s rights or obligations would be adversely affected; 
  
 (x) To prescribe the consideration for the grant of each Award or other right
under the Plan and to determine the sufficiency of such consideration; 
  
 (xi) To determine the disposition of each Award or other right under the Plan in the event of a Participant’s divorce or dissolution of marriage; 
  

(xii) To determine whether Options or other rights under the Plan will be granted in replacement of other grants under an incentive or other
compensation plan of an acquired business; 
  
 (xiii) To correct
any defect, supply any omission, or reconcile any inconsistency in the Plan or any Award agreement; and 
  
 (xiv) To take any other actions deemed necessary or advisable for the administration of the Plan. 
  
 (xv) Subject to the requirements of applicable law, the Committee may
designate persons other than members of the Committee to carry out its responsibilities and may prescribe such conditions and limitations as it may deem appropriate, except that the Committee may not delegate its authority with regard to the
selection for participation of or the granting of Options or other rights under the Plan to persons subject to Section 16 of the Exchange Act. All decisions, interpretations and other actions of the Committee shall be final and binding on all
Offerees, all Optionees, and all persons deriving their rights from an Offeree or Optionee. No member of the Committee shall be liable for any action that he has taken or has failed to take in good faith with respect to the Plan, any Option, or any
right to acquire Shares under the Plan. 
  
 SECTION 4. ELIGIBILITY.

  
 (a) General Rule. Only Employees shall be
eligible for the grant of ISOs. Only Employees, Consultants and Outside Directors shall be eligible for the grant of Restricted Shares, Stock Units, Nonstatutory Options or SARs. 
  
 (b) Automatic Grants to Outside Directors 
  
 (i) Each Outside Director who first joins the Board of Directors on or after the Effective Date shall receive a Nonstatutory
Option, subject to approval of the Plan by the Company’s stockholders, to purchase 15,000 Shares (subject to adjustment under Section 11) on the Effective Date or, if later, on his or her appointment or election to the Board of Directors.

  

 5 

 (ii) As of the date of each regular annual meeting of the Company’s stockholders, commencing with
the annual meeting occurring on the Effective Date, each Outside Director who is not eligible for the grant of an initial option under Section 4(b)(i) and who has been elected or reelected or is continuing to serve as a member of the Board of
Directors as of the adjournment of such meeting shall receive an Option to purchase 10,000 Shares (subject to adjustment under Section 11), provided that such Outside Director has served on the Board of Directors for at least six months. 

 
 (iii) Each Option granted under this Section 4(b) shall vest and become
exercisable as to one fourth of the Shares at the end of the 4th full calendar quarter following the date the Option was granted and as to an additional 1/16th of the Shares at the end of each subsequent full calendar quarter commencing with the 5th
full calendar quarter following the date the Option was granted; provided, however, that each such Option shall become fully vested if a Change in Control occurs with respect to the Company during the Outside Director’s Service (unless
otherwise provided by the Board in the Outside Director’s Nonstatutory Option agreement). 
  
 (iv) The Exercise Price of all Nonstatutory Options granted to an Outside Director under this Section 4(b) shall be equal to 100% of the Fair Market Value of a Share on the date of grant, payable in one of the forms
described in Section 8(a), (b) or (d). 
  
 (v) All Nonstatutory
Options granted to an Outside Director under this Section 4(b) shall terminate on the earlier of (A) the tenth anniversary of the date of grant of such Options, (B) the first anniversary of the date of termination of such Outside Director’s
Service by reason of death or Total and Permanent Disability, (C) the date 90 days after the termination of such Outside Director’s Service for any reason other than death or Total and Permanent Disability, (D) the first anniversary of the
Outside Director’s death during the 90 day period specified in Section 4(b)(v)(C), or (E) that date that such Outside Director files or has filed against him or her a petition in bankruptcy; provided, however, that any such Options that are not
vested upon the termination of the Outside Director’s Service for any reason shall terminate immediately and may not be exercised. The Board may also provide for earlier termination in the Outside Director’s Nonstatutory Option agreement.

  
 (c) Ten-Percent Stockholders. An Employee who
owns more than 10% of the total combined voting power of all classes of outstanding stock of the Company, a Parent or Subsidiary shall not be eligible for the grant of an ISO unless such grant satisfies the requirements of Section 422(c)(5) of the
Code. 
  
 (d) Attribution Rules. For purposes of
Section 4(c) above, in determining stock ownership, an Employee shall be deemed to own the stock owned, directly or indirectly, by or for such Employee’s brothers, sisters, spouse, ancestors and lineal descendants. Stock owned, directly or
indirectly, by or for a corporation, partnership, estate or trust shall be deemed to be owned proportionately by or for its shareholders, partners or beneficiaries. 
  
 (e) Outstanding Stock. For purposes of Section 4(c) above, “outstanding stock” shall include all
stock actually issued and outstanding immediately after the grant. “Outstanding stock” shall not include shares authorized for issuance under outstanding options held by the Employee or by any other person. 
  
 SECTION 5. STOCK SUBJECT TO PLAN. 
  
 (a) Basic Limitation. Shares offered under the Plan shall be
authorized but unissued Shares. The maximum aggregate number of Shares that may be subject to Awards granted under the Plan shall not exceed 1,070,000 Shares, plus any Shares remaining available for grant of awards under the Prior Plans on the
Effective Date (including Shares subject to outstanding options under the Prior Plans on the Effective Date that are subsequently forfeited or terminate for any other reason before being exercised and unvested Shares that are forfeited pursuant to
such Prior Plans after the Effective Date). Any Shares granted as Options or SARs shall be 
  

 6 

 counted against this limit as one (1) Share for every one (1) Share granted. Any Shares granted as Awards other than
Options or SARs shall be counted against this limit as two (2) Shares for every one (1) Share granted. The limitations of this Section 5(a) shall be subject to adjustment pursuant to Section 12. The number of Shares that are subject to Options or
other Awards outstanding at any time under the Plan shall not exceed the number of Shares which then remain available for issuance under the Plan. The Company, during the term of the Plan, shall at all times reserve and keep available sufficient
Shares to satisfy the requirements of the Plan. 
  
 (b)
Individual Award Limitation. Subject to the provisions of Section 12, no Participant may receive Options, SARs, Restricted Shares or Stock Units under the Plan in any one fiscal year of the Company that relate to more than 500,000 Shares.

  
 (c) Additional Shares. If Restricted Shares or
Shares issued upon the exercise of Options are forfeited, then such Shares shall again become available for Awards under the Plan. If Stock Units, Options or SARs are forfeited or terminate for any other reason before being settled or exercised,
then the corresponding Shares shall again become available for Awards under the Plan. If Stock Units are settled, then only the number of Shares (if any) actually issued in settlement of such Stock Units (multiplied by 2) shall reduce the number
available under Section 5(a) and the balance shall again become available for Awards under the Plan. If SARs are exercised, then only the number of Shares (if any) actually issued in settlement of such SARs shall reduce the number available in
Section 5(a) and the balance shall again become available for Awards under the Plan. 
  
 SECTION 6. RESTRICTED SHARES. 
  
 (a)
Restricted Stock Agreement. Each grant of Restricted Shares under the Plan shall be evidenced by a Restricted Stock Agreement between the recipient and the Company. Such Restricted Shares shall be subject to all applicable terms of the Plan
and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various Restricted Stock Agreements entered into under the Plan need not be identical. 
  
 (b) Payment for Awards. Subject to the following sentence, Restricted Shares may be sold or awarded under the
Plan for such consideration as the Committee may determine, including (without limitation) cash, cash equivalents, past services and future services. 
  
 (c) Vesting. Each Award of Restricted Shares may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Restricted Stock Agreement. A Restricted Stock Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or retirement or other events. The Committee may
determine, at the time of granting Restricted Shares of thereafter, that all or part of such Restricted Shares shall become vested in the event that a Change in Control occurs with respect to the Company. 
  
 (d) Voting and Dividend Rights. The holders of Restricted
Shares awarded under the Plan shall have the same voting, dividend and other rights as the Company’s other shareholders. A Restricted Stock Agreement, however, may require that the holders of Restricted Shares invest any cash dividends received
in additional Restricted Shares. Such additional Restricted Shares shall be subject to the same conditions and restrictions as the Award with respect to which the dividends were paid. 
  
 (e) Restrictions on Transfer of Shares. Restricted Shares shall be subject to such rights of repurchase,
rights of first refusal or other restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Restricted Stock Agreement and shall apply in addition to any general restrictions that may apply to all holders of
Shares. 
  
 SECTION 7. TERMS AND CONDITIONS OF OPTIONS. 
  
 (a) Stock Option Agreement. Each grant of an Option under the
Plan shall be evidenced by a Stock Option Agreement between the Optionee and the Company. Such Option shall be subject to all applicable terms and conditions of the Plan and may be subject to any other terms and conditions which are not inconsistent
with the Plan and which the Committee deems appropriate for inclusion in a Stock Option Agreement. The Stock Option 
  

 7 

 Agreement shall specify whether the Option is an ISO or an NSO. The provisions of the various Stock Option Agreements
entered into under the Plan need not be identical. Options may be granted in consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each Stock Option Agreement shall specify the number of Shares that are subject to the Option and shall provide for
the adjustment of such number in accordance with Section 12. 
  
 (c) Exercise Price. Each Stock Option Agreement shall specify the Exercise Price. The Exercise Price of an ISO shall not be less than 100% of the Fair Market Value of a Share on the date of grant, except as otherwise provided
in Section 4(c), and the Exercise Price of an NSO shall not be less 100% of the Fair Market Value of a Share on the date of grant. Subject to the foregoing in this Section 7(c), the Exercise Price under any Option shall be determined by the
Committee at its sole discretion. The Exercise Price shall be payable in one of the forms described in Section 8. 
  
 (d) Withholding Taxes. As a condition to the exercise of an Option, the Optionee shall make such arrangements as the Committee may require
for the satisfaction of any federal, state, local or foreign withholding tax obligations that may arise in connection with such exercise. The Optionee shall also make such arrangements as the Committee may require for the satisfaction of any
federal, state, local or foreign withholding tax obligations that may arise in connection with the disposition of Shares acquired by exercising an Option. 
  
 (e) Exercisability and Term. Each Stock Option Agreement shall specify the date when all or any installment of the Option is to become
exercisable. The Stock Option Agreement shall also specify the term of the Option; provided that the term of Option shall in no event exceed 10 years from the date of grant (five years for ISOs granted to Employees described in Section 4(c)). A
Stock Option Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability, or retirement or other events and may provide for expiration prior to the end of its term in the event of the termination of the
Optionee’s Service. Options may be awarded in combination with SARs, and such an Award may provide that the Options will not be exercisable unless the related SARs are forfeited. Subject to the foregoing in this Section 7(e), the Committee at
its sole discretion shall determine when all or any installment of an Option is to become exercisable and when an Option is to expire. 
  
 (f) Exercise of Options Upon Termination of Service. Each Stock Option Agreement shall set forth the extent to which the Optionee shall have
the right to exercise the Option following termination of the Optionee’s Service with the Company and its Subsidiaries, and the right to exercise the Option of any executors or administrators of the Optionee’s estate or any person who has
acquired such Option(s) directly from the Optionee by bequest or inheritance. Such provisions shall be determined in the sole discretion of the Committee, need not be uniform among all Options issued pursuant to the Plan, and may reflect
distinctions based on the reasons for termination of Service. 
  
 (g) Effect of Change in Control. The Committee may determine, at the time of granting an Option or thereafter, that such Option shall become exercisable as to all or part of the Shares subject to such Option in the event that
a Change in Control occurs with respect to the Company. 
  
 (h) Leaves of Absence. An Employee’s Service shall cease when such Employee ceases to be actively employed by, or a Consultant to, the Company (or any subsidiary) as determined in the sole discretion of the Board of
Directors. For purposes of Options, Service does not terminate when an Employee goes on a bona fide leave of absence, that was approved by the Company in writing, if the terms of the leave provide for continued service crediting, or when continued
service crediting is required by applicable law. However, for purposes of determining whether an Option is entitled to ISO status, an Employee’s Service will be treated as terminating 90 days after such Employee went on leave, unless such
Employee’s right to return to active work is guaranteed by law or by a contract. Service terminates in any event when the approved leave ends, unless such Employee immediately returns to active work. The Company determines which leaves count
toward Service, and when Service terminates for all purposes under the Plan. 
  

 8 

 (i) No Rights as a Shareholder. An Optionee, or a transferee of an Optionee, shall have no
rights as a shareholder with respect to any Shares covered by his Option until the date of the issuance of a stock certificate for such Shares. No adjustments shall be made, except as provided in Section 12. 
  
 (j) Modification, Extension and Renewal of Options. Within the
limitations of the Plan, the Committee may modify, extend or renew outstanding options or may accept the cancellation of outstanding options (to the extent not previously exercised), whether or not granted hereunder, in return for the grant of new
Options for the same or a different number of Shares and at the same or a different exercise price, or in return for the grant of the same or a different number of Shares. The foregoing notwithstanding, no modification of an Option shall, without
the consent of the Optionee, adversely affect his or her rights or obligations under such Option. In addition, notwithstanding any other provision of the Plan, in no event shall the Committee cancel any outstanding Option for the purpose of
reissuing the Option to the Optionee at a lower exercise price or reduce the exercise price of an outstanding Option. 
  
 (k) Restrictions on Transfer of Shares. Any Shares issued upon exercise of an Option shall be subject to such special forfeiture conditions,
rights of repurchase, rights of first refusal and other transfer restrictions as the Committee may determine. Such restrictions shall be set forth in the applicable Stock Option Agreement and shall apply in addition to any general restrictions that
may apply to all holders of Shares. 
  
 SECTION 8. PAYMENT FOR SHARES.

  
 (a) General Rule. The entire Exercise Price
or Purchase Price of Shares issued under the Plan shall be payable in lawful money of the United States of America at the time when such Shares are purchased, except as provided in Section 8(b) through Section 8(f) below. 
  
 (b) Surrender of Stock. To the extent that a Stock Option
Agreement so provides, payment may be made all or in part by surrendering, or attesting to the ownership of, Shares which have already been owned by the Optionee or his representative. Such Shares shall be valued at their Fair Market Value on the
date when the new Shares are purchased under the Plan. The Optionee shall not surrender, or attest to the ownership of, Shares in payment of the Exercise Price if such action would cause the Company to recognize compensation expense (or additional
compensation expense) with respect to the Option for financial reporting purposes. 
  
 (c) Services Rendered. At the discretion of the Committee, Shares may be awarded under the Plan in consideration of services rendered to the Company or a Subsidiary prior to the award. If Shares are
awarded without the payment of a Purchase Price in cash, the Committee shall make a determination (at the time of the award) of the value of the services rendered by the Offeree and the sufficiency of the consideration to meet the requirements of
Section 6(b). 
  
 (d) Cashless Exercise. To the
extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker to sell Shares and to deliver all or part of the sale
proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (e) Exercise/Pledge. To the extent that a Stock Option Agreement so provides, payment may be made all or in part by delivery (on a form prescribed by the Committee) of an irrevocable direction to a securities broker or lender
to pledge Shares, as security for a loan, and to deliver all or part of the loan proceeds to the Company in payment of the aggregate Exercise Price. 
  
 (f) Other Forms of Payment. To the extent that a Stock Option Agreement or Restricted Stock Agreement so provides, payment may be made in
any other form that is consistent with applicable laws, regulations and rules; provided that payment may not be made by delivery of a promissory note. 
  
 (g) Limitations under Applicable Law. Notwithstanding anything herein or in a Stock Option Agreement or Restricted Stock Agreement to the
contrary, payment may not be made in any form that is unlawful, as determined by the Committee in its sole discretion. 
  

 9 

 SECTION 9. STOCK APPRECIATION RIGHTS. 
  
 (a) SAR Agreement. Each grant of a SAR under the Plan shall be evidenced by a SAR Agreement between the Optionee and
the Company. Such SAR shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions of the various SAR Agreements entered into under the Plan need not be identical.
SARs may be granted in consideration of a reduction in the Optionee’s other compensation. 
  
 (b) Number of Shares. Each SAR Agreement shall specify the number of Shares to which the SAR pertains and shall provide for the adjustment of such number in accordance with Section 12. 
  
 (c) Exercise Price. Each SAR Agreement shall specify the Exercise
Price. A SAR Agreement may specify an Exercise Price that varies in accordance with a predetermined formula while the SAR is outstanding. 
  
 (d) Exercisability and Term. Each SAR Agreement shall specify the date when all or any installment of the SAR is to become exercisable. The SAR
Agreement shall also specify the term of the SAR. A SAR Agreement may provide for accelerated exercisability in the event of the Optionee’s death, disability or retirement or other events and may provide for expiration prior to the end of its
term in the event of the termination of the Optionee’s service. SARs may be awarded in combination with Options, and such an Award may provide that the SARs will not be exercisable unless the related Options are forfeited. A SAR may be included
in an ISO only at the time of grant but may be included in an NSO at the time of grant or thereafter. A SAR granted under the Plan may provide that it will be exercisable only in the event of a Change in Control. 
  
 (e) Effect of Change in Control. The Committee may determine, at the
time of granting a SAR or thereafter, that such SAR shall become fully exercisable as to all Common Shares subject to such SAR in the event that a Change in Control occurs with respect to the Company. 
  
 (f) Exercise of SARs. Upon exercise of a SAR, the Optionee (or any
person having the right to exercise the SAR after his or her death) shall receive from the Company (a) Shares, (b) cash or (c) a combination of Shares and cash, as the Committee shall determine. The amount of cash and/or the Fair Market Value of
Shares received upon exercise of SARs shall, in the aggregate, be equal to the amount by which the Fair Market Value (on the date of surrender) of the Shares subject to the SARs exceeds the Exercise Price. 
  
 (g) Modification or Assumption of SARs. Within the limitations of the
Plan, the Committee may modify, extend or assume outstanding SARs or may accept the cancellation of outstanding SARs (whether granted by the Company or by another issuer) in return for the grant of new SARs for the same or a different number of
shares and at the same or a different exercise price. The foregoing notwithstanding, no modification of a SAR shall, without the consent of the holder, may alter or impair his or her rights or obligations under such SAR. In addition, notwithstanding
any other provision of the Plan, in no event shall the Committee cancel any outstanding SAR for the purpose of reissuing the SAR to the Optionee at a lower exercise price or reduce the exercise price of an outstanding SAR. 
  
 SECTION 10. STOCK UNITS. 
  
 (a) Stock Unit Agreement. Each grant of Stock Units under the Plan
shall be evidenced by a Stock Unit Agreement between the recipient and the Company. Such Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not inconsistent with the Plan. The provisions
of the various Stock Unit Agreements entered into under the Plan need not be identical. Stock Units may be granted in consideration of a reduction in the recipient’s other compensation. 
  
 (b) Payment for Awards. To the extent that an Award is granted in the
form of Stock Units, no cash consideration shall be required of the Award recipients. 
  
 (c) Vesting Conditions. Each Award of Stock Units may or may not be subject to vesting. Vesting shall occur, in full or in installments, upon satisfaction of the conditions specified in the Stock Unit
Agreement. A 
  

 10 

 Stock Unit Agreement may provide for accelerated vesting in the event of the Participant’s death, disability or
retirement or other events. The Committee may determine, at the time of granting Stock Units or thereafter, that all or part of such Stock Units shall become vested in the event that a Change in Control occurs with respect to the Company.

  
 (d) Voting and Dividend Rights. The holders of Stock
Units shall have no voting rights. Prior to settlement or forfeiture, any Stock Unit awarded under the Plan may, at the Committee’s discretion, carry with it a right to dividend equivalents. Such right entitles the holder to be credited with an
amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding. Dividend equivalents may be converted into additional Stock Units. Settlement of dividend equivalents may be made in the form of cash, in the form of Shares,
or in a combination of both. Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions (including without limitation, any forfeiture conditions) as the Stock Units to which they
attach. 
  
 (e) Form and Time of Settlement of Stock Units.
Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares or (c) any combination of both, as determined by the Committee. The actual number of Stock Units eligible for settlement may be larger or smaller than the number
included in the original Award, based on predetermined performance factors. Methods of converting Stock Units into cash may include (without limitation) a method based on the average Fair Market Value of Shares over a series of trading days. Vested
Stock Units may be settled in a lump sum or in installments. The distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be deferred to any later date. The amount of
a deferred distribution may be increased by an interest factor or by dividend equivalents. Until an Award of Stock Units is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section 12. 
  
 (f) Death of Recipient. Any Stock Unit Award that becomes payable
after the recipient’s death shall be distributed to the recipient’s beneficiary or beneficiaries. Each recipient of a Stock Unit Award under the Plan shall designate one or more beneficiaries for this purpose by filing the prescribed form
with the Company. A beneficiary designation may be changed by filing the prescribed form with the Company at any time before the Award recipient’s death. If no beneficiary was designated or if no designated beneficiary survives the Award
recipient, then any Stock Unit Award that becomes payable after the recipient’s death shall be distributed to the recipient’s estate. 
  
 (g) Creditors’ Rights. A holder of Stock Units shall have no rights other than those of a general creditor of the Company. Stock Units
represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit Agreement. 
  
 SECTION 11. TRANSFERABILITY; PERFORMANCE GOALS 
  
 (a) Transferability 
  
 Except to the extent determined by the Committee, no Award shall be assigned or transferred by a Participant other than by will or the laws of descent and
distribution, and during the lifetime of the Participant may be exercised only by such Participant or his or her guardian or legal representative. 
  
 (b) Performance Goals 
  
 The number of Shares or other benefits granted, issued, retainable and/or vested under an Award may be made subject to the attainment of performance goals
for a specified period of time relating to one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Company as a whole or to a business unit or Subsidiary, either
individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to previous years’ results or to a designated comparison group
or index, in each case as specified by the Committee in the Award: [(a) cash flow, (b) earnings per share, (c) earnings before interest, taxes and amortization, (d) return on equity, (e) total shareholder return, (f) share price performance, (g)
return on capital, (h) return on 
  

 11 

 assets or net assets, (i) revenue, (j) income or net income, (k) operating income or net operating income, (l) operating
profit or net operating profit, (m) operating margin or profit margin, (n) return on operating revenue, (o) return on invested capital, (p) market segment shares, (q) sales, (r) unit openings or (s) customer satisfaction] (“Qualifying
Performance Criteria”). The Committee may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period: (i) asset write-downs, (ii)
litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other such laws or provisions affecting reported results, (iv) accruals for reorganization and restructuring programs and (v) any
extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in managements’ discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to
shareholders for the applicable year. The Committee shall determine the Qualifying Performance Criteria not later than the 90th day of the performance period, and shall determine and certify, for each Participant, the extent to which the Qualifying Performance Criteria have been met. The Committee may not in any event increase the amount of compensation
payable under the Plan upon the attainment of a Qualifying Performance Goal to a Participant who is a “covered employee” within the meaning of Section 162(m) of the Code. 
  
 SECTION 12. ADJUSTMENT OF SHARES. 
  
 (a) Adjustments. In the event of a subdivision of the outstanding Stock, a declaration of a dividend payable in Shares, a declaration of a dividend
payable in a form other than Shares in an amount that has a material effect on the price of Shares, a combination or consolidation of the outstanding Stock (by reclassification or otherwise) into a lesser number of Shares, a recapitalization, a
spin-off or a similar occurrence, the Committee shall make such adjustments as it, in its sole discretion, deems appropriate in one or more of: 
  
 (i) The number of Options, SARs, Restricted Shares and Stock Units available for future Awards under Section 5; 
  
 (ii) The limitations set forth in Section 5(a) and (b); 
  
 (iii) The number of Shares covered by each outstanding Option and SAR;

  
 (iv) The Exercise Price under each outstanding Option and SAR;
or 
  
 (v) The number of Stock Units included in any prior Award
which has not yet been settled. 
  
 Except as provided in this
Section 12, a Participant shall have no rights by reason of any issue by the Company of stock of any class or securities convertible into stock of any class, any subdivision or consolidation of shares of stock of any class, the payment of any stock
dividend or any other increase or decrease in the number of shares of stock of any class. 
  
 (b) Dissolution or Liquidation. To the extent not previously exercised or settled, Options, SARs and Stock Units shall terminate immediately prior to the dissolution or liquidation of the Company. 

 
 (c) Reorganizations. In the event that the Company is a party to a
merger or other reorganization, outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement shall provide for: 
  
 (i) The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation; 
  
 (ii) The assumption of the outstanding Awards by the surviving corporation or
its parent or subsidiary; 
  
 (iii) The substitution by the
surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards; 
  

 12 

 (iv) Full exercisability or vesting and accelerated expiration of the outstanding Awards; or 

 
 (v) Settlement of the full value of the outstanding Awards in cash or cash
equivalents followed by cancellation of such Awards. 
  
 (d)
Reservation of Rights. Except as provided in this Section 12, an Optionee or Offeree shall have no rights by reason of any subdivision or consolidation of shares of stock of any class, the payment of any dividend or any other increase or
decrease in the number of shares of stock of any class. Any issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Shares subject to an Option. The grant of an Option pursuant to the Plan shall not affect in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure, to merge or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets. 
  
 SECTION 13. DEFERRAL OF AWARDS. 
  
 The Committee (in its sole discretion) may permit or require a Participant to: 
  
 (a) Have cash that otherwise would be paid to such Participant as a result of the exercise of a SAR or the settlement of
Stock Units credited to a deferred compensation account established for such Participant by the Committee as an entry on the Company’s books; 
  
 (b) Have Shares that otherwise would be delivered to such Participant as a result of the exercise of an Option or SAR converted into an equal number of
Stock Units; or 
  
 (c) Have Shares that otherwise would be
delivered to such Participant as a result of the exercise of an Option or SAR or the settlement of Stock Units converted into amounts credited to a deferred compensation account established for such Participant by the Committee as an entry on the
Company’s books. Such amounts shall be determined by reference to the Fair Market Value of such Shares as of the date when they otherwise would have been delivered to such Participant. 
  
 A deferred compensation account established under this Section 13 may be
credited with interest or other forms of investment return, as determined by the Committee. A Participant for whom such an account is established shall have no rights other than those of a general creditor of the Company. Such an account shall
represent an unfunded and unsecured obligation of the Company and shall be subject to the terms and conditions of the applicable agreement between such Participant and the Company. If the deferral or conversion of Awards is permitted or required,
the Committee (in its sole discretion) may establish rules, procedures and forms pertaining to such Awards, including (without limitation) the settlement of deferred compensation accounts established under this Section 13. 
  
 SECTION 14. AWARDS UNDER OTHER PLANS. 
  
 The Company may grant awards under other plans or programs. Such awards may
be settled in the form of Shares issued under this Plan. Such Shares shall be treated for all purposes under the Plan like Shares issued in settlement of Stock Units and shall, when issued, reduce the number of Shares available under Section 5.

  
 SECTION 15. PAYMENT OF DIRECTOR’S FEES IN SECURITIES. 

 
 (a) Effective Date. No provision of this Section 15 shall be
effective unless and until the Board has determined to implement such provision. 
  
 (b) Elections to Receive NSOs, Restricted Shares or Stock Units. An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs,
Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Section 15 shall be filed with the Company on the prescribed
form. 
  

 13 

 (c) Number and Terms of NSOs, Restricted Shares or Stock Units. The number of NSOs, Restricted
Shares or Stock Units to be granted to Outside Directors in lieu of annual retainers and meeting fees that would otherwise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock
Units shall also be determined by the Board. 
  
 SECTION 16. LEGAL AND
REGULATORY REQUIREMENTS. 
  
 Shares shall not be issued under
the Plan unless the issuance and delivery of such Shares complies with (or is exempt from) all applicable requirements of law, including (without limitation) the Securities Act of 1933, as amended, the rules and regulations promulgated thereunder,
state securities laws and regulations and the regulations of any stock exchange on which the Company’s securities may then be listed, and the Company has obtained the approval or favorable ruling from any governmental agency which the Company
determines is necessary or advisable. 
  
 SECTION 17. WITHHOLDING TAXES.

  
 (a) General. To the extent required by applicable
federal, state, local or foreign law, a Participant or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of any withholding tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Shares or make any cash payment under the Plan until such obligations are satisfied. 
  
 (b) Share Withholding. The Committee may permit a Participant to satisfy all or part of his or her withholding or income tax obligations by having
the Company withhold all or a portion of any Shares that otherwise would be issued to him or her or by surrendering all or a portion of any Shares that he or she previously acquired. Such Shares shall be valued at their Fair Market Value on the date
when taxes otherwise would be withheld in cash. In no event may a Participant have Shares withheld that would otherwise be issued to him or her in excess of the number necessary to satisfy the legally required minimum tax withholding. 
  
 SECTION 18. NO EMPLOYMENT RIGHTS. 
  
 No provision of the Plan, nor any right or Option granted under the Plan,
shall be construed to give any person any right to become, to be treated as, or to remain an Employee. The Company and its Subsidiaries reserve the right to terminate any person’s Service at any time and for any reason, with or without notice.

  
 SECTION 19. DURATION AND AMENDMENTS. 
  
 (a) Term of the Plan. The Plan, as set forth herein, shall terminate
automatically ten (10) years after its adoption by the Board. The Plan may be terminated on any earlier date pursuant to Subsection (b) below. 
  
 (b) Right to Amend or Terminate the Plan. The Board of Directors may amend the Plan at any time and from time to time. Rights and obligations under
any Award granted before amendment of the Plan shall not be materially impaired by such amendment, except with consent of the Participant. An amendment of the Plan shall be subject to the approval of the Company’s shareholders only to the
extent required by applicable laws, regulations or rules. 
  
 (c) Effect of Termination. No Awards shall be granted under the Plan after the termination thereof. The termination of the Plan shall not affect any Award previously granted under the Plan. 
  
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 14 

 SECTION 20. EXECUTION. 
  

To record the adoption of the Plan by the Board of Directors, the Company has caused its authorized officer to execute the same. 
  

			
	 CALIFORNIA MICRO DEVICES CORPORATION

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  

 15

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