Document:

Trust Preferred Securities Guarantee Agmt

  
 Exhibit 10.19 
  
 GUARANTEE AGREEMENT 
  
 CENTENNIAL FIRST
FINANCIAL SERVICES 
  
 Dated as of July 11, 2002 

  
 TABLE OF CONTENTS 
  
 
	  	 	  	  	 Page
 

	 
	  	 	 ARTICLE I
  
 	  	  
	 
	  	 	 DEFINITIONS AND INTERPRETATION
  
 	  	  
	 SECTION 1.1.
 	 	 Definitions and Interpretation
  
 	  	 ii
  
 
	 
	  	 	 ARTICLE II
  
 	  	  
	 
	  	 	 POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE
  
 	  	  
	 SECTION 2.1
 	 	 Powers and Duties of the Guarantee Trustee
 	  	 4
 
	 SECTION 2.2
 	 	 Certain Rights of the Guarantee Trustee
 	  	 6
 
	 SECTION 2.3
 	 	 Not Responsible for Recitals or Issuance of Guarantee
 	  	 8
 
	 SECTION 2.4
 	 	 Events of Default; Waiver
 	  	 8
 
	 SECTION 2.5
 	 	 Events of Default; Notice
 	  	 8
 
	  	 	  	  	  
	 
	  	 	  
 ARTICLE III
  
 	  	  
	 
	  	 	 THE GUARANTEE TRUSTEE
  
 	  	  
	 SECTION 3.1
 	 	 The Guarantee Trustee; Eligibility
 	  	 8
 
	 SECTION 3.2
 	 	 Appointment, Removal and Resignation of the Guarantee Trustee
 	  	 9
 
	  	 	  	  	  
	 
	  	 	  
 ARTICLE IV
  
 	  	  
	 
	  	 	 GUARANTEE
  
 	  	  
	 SECTION 4.1
 	 	 Guarantee
 	  	 10
 
	 SECTION 4.2
 	 	 Waiver of Notice and Demand
 	  	 10
 
	 SECTION 4.3
 	 	 Obligations Not Affected
 	  	 10
 
	 SECTION 4.4
 	 	 Rights of Holders
 	  	 11
 
	 SECTION 4.5
 	 	 Guarantee of Payment
 	  	 12
 
	 SECTION 4.6
 	 	 Subrogation
 	  	 12
 
	 SECTION 4.7
 	 	 Independent Obligations
 	  	 12
 
	 SECTION 4.8
 	 	 Enforcement
 	  	 12
 
	  	 	  	  	  
	 
	  	 	  
 ARTICLE V
  
 	  	  
	 
	  	 	 LIMITATION OF TRANSACTIONS; SUBORDINATION
  
 	  	  
	 SECTION 5.1
 	 	 Limitation of Transactions
 	  	 13
 
	 SECTION 5.2
 	 	 Ranking
 	  	 13
 
	  	 	  	  	  
	 
	  	 	  
 ARTICLE VI
  
 	  	  
	 
	  	 	 TERMINATION
  
 	  	  
	 SECTION 6.1
 	 	 Termination
 	  	 14
 

 

 
 i 

 
	 
	  	 	 ARTICLE VII
  
 	  	  
	 
	  	 	 INDEMNIFICATION
  
 	  	  
	 SECTION 7.1
 	 	 Exculpation
 	  	 14
 
	 SECTION 7.2
 	 	 Indemnification
 	  	 14
 
	 SECTION 7.3
 	 	 Compensation; Reimbursement of Expenses
 	  	 15
 
	  	 	  	  	  
	 
	  	 	 ARTICLE VIII
  
 	  	  
	 
	  	 	 MISCELLANEOUS
 	  	  
	 SECTION 8.1
 	 	 Successors and Assigns
 	  	 16
 
	 SECTION 8.2
 	 	 Amendments
 	  	 16
 
	 SECTION 8.3
 	 	 Notices
 	  	 16
 
	 SECTION 8.4
 	 	 Benefit
 	  	 17
 
	 SECTION 8.5
 	 	 Governing Law
 	  	 17
 
	 SECTION 8.6
 	 	 Counterparts
 	  	 17
 

 
  
  
 GUARANTEE AGREEMENT

  
 This GUARANTEE AGREEMENT (the “Guarantee”), dated as of July 11, 2002, is executed and delivered by
Centennial First Financial Services, a bank holding company incorporated in California (the “Guarantor”), and Wilmington Trust Company, a Delaware banking corporation, as trustee (the “Guarantee Trustee”), for the benefit of the
Holders (as defined herein) from time to time of the Capital Securities (as defined herein) of Centennial Capital Trust I, a Delaware statutory business trust (the “Issuer”). 
  
 WHEREAS, pursuant to an Amended and Restated Declaration of Trust (the “Declaration”), dated as of July 11, 2002, among the trustees named therein of the Issuer,
Centennial First Financial Services, as sponsor, and the Holders from time to time of undivided beneficial interests in the assets of the Issuer, the Issuer is issuing on the date hereof securities, having an aggregate liquidation amount of up to
$6,000,000, designated the Floating Rate TRUPS® (the “Capital Securities”);
and 
  
 WHEREAS, as incentive for the Holders to purchase the Capital Securities, the Guarantor desires irrevocably
and unconditionally to agree, to the extent set forth in this Guarantee, to pay to the Holders of Capital Securities the Guarantee Payments (as defined herein) and to make certain other payments on the terms and conditions set forth herein.

  
 NOW, THEREFORE, in consideration of the purchase by each Holder of the Capital Securities, which purchase the
Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this Guarantee for the benefit of the Holders. 
  
  
 ARTICLE I 
  
 
DEFINITIONS AND INTERPRETATION 
  
 SECTION 1.1.  
Definitions and Interpretation. 
  
 In this Guarantee, unless the context otherwise
requires: 

 
 ii 

  
 (a)  capitalized terms used in this Guarantee but not
defined in the preamble above have the respective meanings assigned to them in this Section 1.1; 
  
 (b)  a term defined anywhere in this Guarantee has the same meaning throughout; 
  
 (c)  all references to “the Guarantee” or “this Guarantee” are to this Guarantee as modified, supplemented or amended from time to time; 
  
 (d)  all references in this Guarantee to Articles and Sections are to Articles and Sections of this Guarantee, unless otherwise specified;

  
 (e)  terms defined in the Declaration as at the date of execution of this Guarantee
have the same meanings when used in this Guarantee, unless otherwise defined in this Guarantee or unless the context otherwise requires; and 
  
 (f)  a reference to the singular includes the plural and vice versa. 
  
 “Beneficiaries” means any Person to whom the Issuer is or hereafter becomes indebted or liable. 
  
 “Corporate Trust Office” means the office of the Guarantee Trustee at which the corporate trust business of the Guarantee Trustee shall, at any
particular time, be principally administered, which office at the date of execution of this Guarantee is located at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001. 
  

“Covered Person” means any Holder of Capital Securities. 
  
 “Debentures” means the junior subordinated debentures of Centennial First Financial Services, designated the Floating Rate Junior Subordinated
Debt Securities due 2032, held by the Institutional Trustee (as defined in the Declaration) of the Issuer. 
  
 “Event of Default” has the meaning set forth in Section 2.4. 
  
 “Guarantee Payments” means the following payments or distributions, without duplication, with respect to the Capital Securities, to the extent not paid or made by the Issuer: (i) any accrued and unpaid Distributions (as
defined in the Declaration) which are required to be paid on such Capital Securities to the extent the Issuer has funds available in the Property Account (as defined in the Declaration) therefor at such time, (ii) the Redemption Price (as defined in
the Indenture) to the extent the Issuer has funds available in the Property Account therefor at such time, with respect to any Capital Securities called for redemption by the Issuer, (iii) the Special Redemption Price (as defined in the Indenture)
to the extent the Issuer has funds available in the Property Account therefor at such time, with respect to Capital Securities called for redemption upon the occurrence of a Special Event (as defined in the Indenture), and (iv) upon a voluntary or
involuntary liquidation, dissolution, winding-up or termination of the Issuer (other than in connection with the distribution of Debentures to the Holders of the Capital Securities in exchange therefor as provided in the Declaration), the lesser of
(a) the aggregate of the liquidation amount and all accrued and unpaid Distributions on the Capital Securities to the date of payment, to the extent the Issuer has funds available in the Property Account therefor at 

 
 2 

 
such time, and (b) the amount of assets of the Issuer remaining available for distribution to Holders in liquidation of the Issuer after satisfaction of liabilities to creditors of the Issuer as
required by applicable law (in either case, the “Liquidation Distribution”). 
  
 “Guarantee Trustee” means Wilmington Trust Company, until a Successor Guarantee Trustee has been appointed and has accepted such appointment pursuant to the terms of this Guarantee and thereafter means each such Successor
Guarantee Trustee. 
  
 “Holder” means any holder, as registered on the books and records of
the Issuer, of any Capital Securities; provided, however, that, in determining whether the holders of the requisite percentage of Capital Securities have given any request, notice, consent or waiver hereunder, “Holder” shall
not include the Guarantor or any Affiliate of the Guarantor. 
  
 “Indemnified Person” means
the Guarantee Trustee (including in its individual capacity), any Affiliate of the Guarantee Trustee, or any officers, directors, shareholders, members, partners, employees, representatives, nominees, custodians or agents of the Guarantee Trustee.

  
 “Indenture” means the Indenture, dated as of July 11, 2002, between the Guarantor and
Wilmington Trust Company, not in its individual capacity but solely as trustee, and any indenture supplemental thereto pursuant to which the Debentures are to be issued to the Institutional Trustee of the Issuer. 
  
 “Liquidation Distribution” has the meaning set forth in the definition of “Guarantee Payments” herein.

  
 “Majority in liquidation amount of the Capital Securities” means Holder(s) of
outstanding Capital Securities, voting together as a class, but separately from the holders of Common Securities, of more than 50% of the aggregate liquidation amount (including the stated amount that would be paid on redemption, liquidation or
otherwise, plus accrued and unpaid Distributions to, but excluding, the date upon which the voting percentages are determined) of all Capital Securities then outstanding. 
  
 “Obligations” means any costs, expenses or liabilities (but not including liabilities related to taxes) of the Issuer, other than obligations of
the Issuer to pay to holders of any Trust Securities the amounts due such holders pursuant to the terms of the Trust Securities. 
  
 “Officer’s Certificate” means, with respect to any Person, a certificate signed by one Authorized Officer of such Person. Any Officer’s Certificate delivered with respect to
compliance with a condition or covenant provided for in this Guarantee shall include: 
  
 (a)  a statement that each officer signing the Officer’s Certificate has read the covenant or condition and the definitions relating thereto; 
  
 (b)  a brief statement of the nature and scope of the examination or investigation undertaken by each officer in rendering the Officer’s
Certificate; 

 
 3 

  
 (c)  a statement that each such officer has made such
examination or investigation as, in such officer’s opinion, is necessary to enable such officer to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (d)  a statement as to whether, in the opinion of each such officer, such condition or covenant has been
complied with. 
  
 “Person” means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited liability company, trust, unincorporated association, or government or any agency or political subdivision thereof, or any other entity of whatever nature. 

 
 “Responsible Officer” means, with respect to the Guarantee Trustee, any officer within the Corporate
Trust Office of the Guarantee Trustee with direct responsibility for the administration of any matters relating to this Guarantee, including any vice president, any assistant vice president, any secretary, any assistant secretary, the treasurer, any
assistant treasurer, any trust officer or other officer of the Corporate Trust Office of the Guarantee Trustee customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of that officer’s knowledge of and familiarity with the particular subject. 
  
 “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the qualifications to act as Guarantee Trustee under Section 3.1.

  
 “Trust Securities” means the Common Securities and the Capital Securities.

  
 ARTICLE II 
  
 POWERS, DUTIES AND RIGHTS OF THE GUARANTEE TRUSTEE 
  
 SECTION
2.1.  

Powers and Duties of the Guarantee Trustee. 
  
 (a)  This
Guarantee shall be held by the Guarantee Trustee for the benefit of the Holders of the Capital Securities, and the Guarantee Trustee shall not transfer this Guarantee to any Person except a Holder of Capital Securities exercising his or her rights
pursuant to Section 4.4(b) or to a Successor Guarantee Trustee on acceptance by such Successor Guarantee Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of the Guarantee Trustee shall automatically
vest in any Successor Guarantee Trustee, and such vesting and cessation of title shall be effective whether or not conveyancing documents have been executed and delivered pursuant to the appointment of such Successor Guarantee Trustee. 

 
 (b)  If an Event of Default actually known to a Responsible Officer of the Guarantee Trustee has
occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee for the benefit of the Holders of the Capital Securities. 
  
 (c)  The Guarantee Trustee, before the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred, shall 

 
 4 

  
 undertake to perform only such duties as are specifically set forth in this
Guarantee, and no implied covenants shall be read into this Guarantee against the Guarantee Trustee. In case an Event of Default has occurred (that has not been cured or waived pursuant to Section 2.4(b)) and is actually known to a Responsible
Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its exercise thereof, as a prudent person would exercise or use under
the circumstances in the conduct of his or her own affairs. 
  
 (d)  No provision of this
Guarantee shall be construed to relieve the Guarantee Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 
  
 (i)  prior to the occurrence of any Event of Default and after the curing or waiving of all Events of Default that may have occurred:

  
 (A)  the duties and obligations of the Guarantee Trustee shall be determined solely by
the express provisions of this Guarantee, and the Guarantee Trustee shall not be liable except for the performance of such duties and obligations as are specifically set forth in this Guarantee, and no implied covenants or obligations shall be read
into this Guarantee against the Guarantee Trustee; and 
  
 (B)  in the absence of bad
faith on the part of the Guarantee Trustee, the Guarantee Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Guarantee Trustee
and conforming to the requirements of this Guarantee; but in the case of any such certificates or opinions furnished to the Guarantee Trustee, the Guarantee Trustee shall be under a duty to examine the same to determine whether or not on their face
they conform to the requirements of this Guarantee; 
  
 (ii)  the Guarantee Trustee shall
not be liable for any error of judgment made in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be proved that such Responsible Officer of the Guarantee Trustee or the Guarantee Trustee was negligent in ascertaining the
pertinent facts upon which such judgment was made; 
  
 (iii)  the Guarantee Trustee shall
not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the written direction of the Holders of not less than a Majority in liquidation amount of the Capital Securities relating to the time,
method and place of conducting any proceeding for any remedy available to the Guarantee Trustee, or exercising any trust or power conferred upon the Guarantee Trustee under this Guarantee; and 
  

(iv)  no provision of this Guarantee shall require the Guarantee Trustee to expend or risk its own funds or otherwise incur personal
financial liability in the 

 
 5 

  
 performance of any of its duties or in the exercise of any of its rights or
powers, if the Guarantee Trustee shall have reasonable grounds for believing that the repayment of such funds is not reasonably assured to it under the terms of this Guarantee, or security and indemnity, reasonably satisfactory to the Guarantee
Trustee, against such risk or liability is not reasonably assured to it. 
  
 SECTION
2.2.  

Certain Rights of the Guarantee Trustee. 
  
 (a)  Subject to
the provisions of Section 2.1: 
  
 (i)  The Guarantee Trustee may conclusively rely, and
shall be fully protected in acting or refraining from acting upon, any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper
or document believed by it to be genuine and to have been signed, sent or presented by the proper party or parties. 
  
 (ii)  Any direction or act of the Guarantor contemplated by this Guarantee shall be sufficiently evidenced by an Officer’s Certificate. 
  
 (iii)  Whenever, in the administration of this Guarantee, the Guarantee Trustee shall deem it desirable that a matter be proved or established
before taking, suffering or omitting any action hereunder, the Guarantee Trustee (unless other evidence is herein specifically prescribed) may, in the absence of bad faith on its part, request and conclusively rely upon an Officer’s Certificate
of the Guarantor which, upon receipt of such request, shall be promptly delivered by the Guarantor. 
  
 (iv)  The Guarantee Trustee shall have no duty to see to any recording, filing or registration of any instrument or other writing (or any rerecording, refiling or reregistration thereof). 
  
 (v)  The Guarantee Trustee may consult with counsel of its selection, and the advice or opinion of such counsel
with respect to legal matters shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with such advice or opinion. Such counsel may be counsel to the
Guarantor or any of its Affiliates and may include any of its employees. The Guarantee Trustee shall have the right at any time to seek instructions concerning the administration of this Guarantee from any court of competent jurisdiction.

  
 (vi)  The Guarantee Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Guarantee at the request or direction of any Holder, unless such Holder shall have provided to the Guarantee Trustee such security and indemnity, reasonably satisfactory to the Guarantee Trustee, against the costs,
expenses (including attorneys’ fees and expenses and the expenses of the Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be incurred by it in complying with such request or direction, including such

 
 6 

  
 reasonable advances as may be requested by the Guarantee Trustee;
provided, however, that nothing contained in this Section 2.2(a)(vi) shall be taken to relieve the Guarantee Trustee, upon the occurrence of an Event of Default, of its obligation to exercise the rights and powers vested in it by this
Guarantee. 
  
 (vii)  The Guarantee Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Guarantee
Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 
  
 (viii)  The Guarantee Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, nominees, custodians or attorneys, and the Guarantee Trustee
shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 
  
 (ix)  Any action taken by the Guarantee Trustee or its agents hereunder shall bind the Holders of the Capital Securities, and the signature of the Guarantee Trustee or its agents alone shall
be sufficient and effective to perform any such action. No third party shall be required to inquire as to the authority of the Guarantee Trustee to so act or as to its compliance with any of the terms and provisions of this Guarantee, both of which
shall be conclusively evidenced by the Guarantee Trustee’s or its agent’s taking such action. 
  
 (x)  Whenever in the administration of this Guarantee the Guarantee Trustee shall deem it desirable to receive instructions with respect to enforcing any remedy or right or taking any other action hereunder, the Guarantee
Trustee (A) may request instructions from the Holders of a Majority in liquidation amount of the Capital Securities, (B) may refrain from enforcing such remedy or right or taking such other action until such instructions are received and (C) shall
be protected in conclusively relying on or acting in accordance with such instructions. 
  
 (xi)  The Guarantee Trustee shall not be liable for any action taken, suffered, or omitted to be taken by it in good faith and reasonably believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Guarantee. 
  
 (b)  No provision of this Guarantee shall be
deemed to impose any duty or obligation on the Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation conferred or imposed on it, in any jurisdiction in which it shall be illegal or in which the Guarantee
Trustee shall be unqualified or incompetent in accordance with applicable law to perform any such act or acts or to exercise any such right, power, duty or obligation. No permissive power or authority available to the Guarantee Trustee shall be
construed to be a duty. 

 
 7 

  
 SECTION 2.3.  

Not Responsible for Recitals or Issuance of Guarantee. 
  
 The recitals contained in
this Guarantee shall be taken as the statements of the Guarantor, and the Guarantee Trustee does not assume any responsibility for their correctness. The Guarantee Trustee makes no representation as to the validity or sufficiency of this Guarantee.

  
 SECTION 2.4.  

Events of Default; Waiver. 
  
 (a)  An Event of Default
under this Guarantee will occur upon the failure of the Guarantor to perform any of its payment or other obligations hereunder. 
  
 (b)  The Holders of a Majority in liquidation amount of the Capital Securities may, voting or consenting as a class, on behalf of the Holders of all of the Capital Securities, waive any past
Event of Default and its consequences. Upon such waiver, any such Event of Default shall cease to exist, and shall be deemed to have been cured, for every purpose of this Guarantee, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon. 
  
 SECTION 2.5.  

Events of Default; Notice. 
  
 (a)  The Guarantee Trustee
shall, within 90 days after the occurrence of an Event of Default, transmit by mail, first class postage prepaid, to the Holders of the Capital Securities, notices of all Events of Default actually known to a Responsible Officer of the Guarantee
Trustee, unless such defaults have been cured before the giving of such notice, provided, however, that the Guarantee Trustee shall be protected in withholding such notice if and so long as a Responsible Officer of the Guarantee
Trustee in good faith determines that the withholding of such notice is in the interests of the Holders of the Capital Securities. 
  
 (b)  The Guarantee Trustee shall not be charged with knowledge of any Event of Default unless the Guarantee Trustee shall have received written notice thereof from the Guarantor or a Holder
of the Capital Securities, or a Responsible Officer of the Guarantee Trustee charged with the administration of this Guarantee shall have actual knowledge thereof. 
  
 ARTICLE III 
  
 THE GUARANTEE TRUSTEE 
  
 SECTION 3.1.  

The Guarantee Trustee; Eligibility. 
  
 (a)  There shall at
all times be a Guarantee Trustee which shall: 
  
 (i)  not be an Affiliate of the
Guarantor; and 
  
 (ii)  be a corporation organized and doing business under the laws of
the United States of America or any State or Territory thereof or of the District of Columbia, or Person authorized under such laws to exercise corporate trust 

 
 8 

  
 powers, having a combined capital and surplus of at least 50 million U.S. dollars
($50,000,000), and subject to supervision or examination by Federal, State, Territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the
supervising or examining authority referred to above, then, for the purposes of this Section 3.1(a)(ii), the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. 
  
 (b)  If at any time the Guarantee Trustee shall cease
to be eligible to so act under Section 3.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set forth in Section 3.2(c). 
  
 (c)  If the Guarantee Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust
Indenture Act, the Guarantee Trustee shall either eliminate such interest or resign to the extent and in the manner provided by, and subject to, this Guarantee. 
  
 SECTION 3.2.  

Appointment, Removal and Resignation of the Guarantee Trustee. 
  
 (a)  Subject to Section 3.2(b), the Guarantee Trustee may be appointed or removed without cause at any time by the Guarantor except during an Event of Default. 
  
 (b)  The Guarantee Trustee shall not be removed in accordance with Section 3.2(a) until a Successor Guarantee Trustee has been appointed and has
accepted such appointment by written instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor. 
  
 (c)  The Guarantee Trustee appointed to office shall hold office until a Successor Guarantee Trustee shall have been appointed or until its removal or resignation. The Guarantee Trustee may
resign from office (without need for prior or subsequent accounting) by an instrument in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation shall not take effect until a Successor Guarantee Trustee has been
appointed and has accepted such appointment by an instrument in writing executed by such Successor Guarantee Trustee and delivered to the Guarantor and the resigning Guarantee Trustee. 
  
 (d)  If no Successor Guarantee Trustee shall have been appointed and accepted appointment as provided in this Section 3.2 within 60 days after
delivery of an instrument of removal or resignation, the Guarantee Trustee resigning or being removed may petition any court of competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon, after prescribing such
notice, if any, as it may deem proper, appoint a Successor Guarantee Trustee. 
  
 (e)  No
Guarantee Trustee shall be liable for the acts or omissions to act of any Successor Guarantee Trustee. 

 
 9 

  
 (f)  Upon termination of this Guarantee or removal or
resignation of the Guarantee Trustee pursuant to this Section 3.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing to the Guarantee Trustee under Sections 7.2 and 7.3 accrued to the date of such termination, removal or
resignation. 
  
 ARTICLE IV 
  
 GUARANTEE 
  
 SECTION 4.1.  

Guarantee. 
  
 (a)  The Guarantor irrevocably and
unconditionally agrees to pay in full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the Issuer), as and when due, regardless of any defense (except as defense of payment by the Issuer), right of set-off or
counterclaim that the Issuer may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by direct payment of the required amounts by the Guarantor to the Holders or by causing the Issuer to pay such amounts to
the Holders. 
  
 (b)  The Guarantor hereby also agrees to assume any and all Obligations of
the Issuer and in the event any such Obligation is not so assumed, subject to the terms and conditions hereof, the Guarantor hereby irrevocably and unconditionally guarantees to each Beneficiary the full payment, when and as due, of any and all
Obligations to such Beneficiaries. This Guarantee is intended to be for the Beneficiaries who have received notice hereof. 
  
 SECTION 4.2.  

Waiver of Notice and Demand. 
  
 The Guarantor hereby waives notice of acceptance of
this Guarantee and of any liability to which it applies or may apply, presentment, demand for payment, any right to require a proceeding first against the Issuer or any other Person before proceeding against the Guarantor, protest, notice of
nonpayment, notice of dishonor, notice of redemption and all other notices and demands. 
  
 SECTION
4.3.  

Obligations Not Affected. 
  
 The obligations, covenants, agreements and duties of
the Guarantor under this Guarantee shall in no way be affected or impaired by reason of the happening from time to time of any of the following: 
  
 (a)  the release or waiver, by operation of law or otherwise, of the performance or observance by the Issuer of any express or implied agreement, covenant, term or condition relating to the
Capital Securities to be performed or observed by the Issuer; 
  
 (b)  the extension of
time for the payment by the Issuer of all or any portion of the Distributions, Redemption Price, Special Redemption Price, Liquidation Distribution or any other sums payable under the terms of the Capital Securities or the extension of time for the
performance of any other obligation under, arising out of, or in connection with, the Capital Securities (other than an extension of time for the payment of the 

 
 10 

  
 Distributions, Redemption Price, Special Redemption Price, Liquidation
Distribution or other sums payable that results from the extension of any interest payment period on the Debentures or any extension of the maturity date of the Debentures permitted by the Indenture); 
  
 (c)  any failure, omission, delay or lack of diligence on the part of the Holders to enforce, assert or exercise
any right, privilege, power or remedy conferred on the Holders pursuant to the terms of the Capital Securities, or any action on the part of the Issuer granting indulgence or extension of any kind; 
  
 (d)  the voluntary or involuntary liquidation, dissolution, sale of any collateral, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization, arrangement, composition or readjustment of debt of, or other similar proceedings affecting, the Issuer or any of the assets of the Issuer; 
  
 (e)  any invalidity of, or defect or deficiency in, the Capital Securities; 
  
 (f)  the settlement or compromise of any obligation guaranteed hereby or hereby incurred; or 

 
 (g)  any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge
or defense of a guarantor, it being the intent of this Section 4.3 that the obligations of the Guarantor hereunder shall be absolute and unconditional under any and all circumstances. 
  
 There shall be no obligation of the Holders to give notice to, or obtain consent of, the Guarantor with respect to the happening of any of the foregoing. 

 
 SECTION 4.4.  

Rights of Holders. 
  
 (a)  The Holders of a Majority in
liquidation amount of the Capital Securities have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or
power conferred upon the Guarantee Trustee under this Guarantee; provided, however, that (subject to Sections 2.1 and 2.2) the Guarantee Trustee shall have the right to decline to follow any such direction if the Guarantee Trustee
shall determine that the actions so directed would be unjustly prejudicial to the Holders not taking part in such direction or if the Guarantee Trustee being advised by counsel determines that the action or proceeding so directed may not lawfully be
taken or if the Guarantee Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors or trustees and/or Responsible Officers shall determine that the action or proceeding so directed would
involve the Guarantee Trustee in personal liability. 
  
 (b)  Any Holder of Capital
Securities may institute a legal proceeding directly against the Guarantor to enforce the Guarantee Trustee’s rights under this Guarantee, without first instituting a legal proceeding against the Issuer, the Guarantee Trustee or any other
Person. The Guarantor waives any right or remedy to require that any such 

 
 11 

  
 action be brought first against the Issuer, the Guarantee Trustee or any other
Person before so proceeding directly against the Guarantor. 
  
 SECTION 4.5.  

Guarantee of Payment. 
  
 This Guarantee creates a guarantee of payment and not of
collection. 
  
 SECTION 4.6.  

Subrogation. 
  
 The Guarantor shall be subrogated to all (if any) rights of the
Holders of Capital Securities against the Issuer in respect of any amounts paid to such Holders by the Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by applicable
provisions of law) be entitled to enforce or exercise any right that it may acquire by way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to any
such payment, any amounts are due and unpaid under this Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence, the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to
the Holders. 
  
 SECTION 4.7.  

Independent Obligations. 
  
 The Guarantor acknowledges that its obligations
hereunder are independent of the obligations of the Issuer with respect to the Capital Securities and that the Guarantor shall be liable as principal and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
notwithstanding the occurrence of any event referred to in subsections (a) through (g), inclusive, of Section 4.3 hereof. 
  
 SECTION 4.8.  

Enforcement. 
  
 A Beneficiary may enforce the Obligations of the Guarantor contained
in Section 4.1(b) directly against the Guarantor, and the Guarantor waives any right or remedy to require that any action be brought against the Issuer or any other person or entity before proceeding against the Guarantor. 
  
 The Guarantor shall be subrogated to all rights (if any) of any Beneficiary against the Issuer in respect of any amounts paid to the
Beneficiaries by the Guarantor under this Guarantee; provided, however, that the Guarantor shall not (except to the extent required by applicable provisions of law) be entitled to enforce or exercise any rights that it may acquire by
way of subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment under this Guarantee, if, after giving effect to such payment, any amounts are due and unpaid under this Guarantee. 

 
 12 

  
 ARTICLE V 
  
 LIMITATION OF TRANSACTIONS; SUBORDINATION 
  
 SECTION 5.1.  

Limitation of Transactions. 
  
 So long as any Capital Securities remain outstanding,
if (a) there shall have occurred and be continuing an Event of Default or (b) the Guarantor shall have selected an Extension Period as provided in the Declaration and such period, or any extension thereof, shall have commenced and be continuing,
then the Guarantor may not (x) declare or pay any dividends or distributions on, or redeem, purchase, acquire, or make a liquidation payment with respect to, any of the Guarantor’s capital stock or (y) make any payment of principal of or
interest or premium, if any, on or repay, repurchase or redeem any debt securities of the Guarantor that rank pari passu in all respects with or junior in interest to the Debentures (other than (i) payments under this Guarantee, (ii)
repurchases, redemptions or other acquisitions of shares of capital stock of the Guarantor (A) in connection with any employment contract, benefit plan or other similar arrangement with or for the benefit of one or more employees, officers,
directors, or consultants, (B) in connection with a dividend reinvestment or stockholder stock purchase plan or (C) in connection with the issuance of capital stock of the Guarantor (or securities convertible into or exercisable for such capital
stock), as consideration in an acquisition transaction entered into prior to the occurrence of the Event of Default or the applicable Extension Period, (iii) as a result of any exchange or conversion of any class or series of the Guarantor’s
capital stock (or any capital stock of a subsidiary of the Guarantor) for any class or series of the Guarantor’s capital stock or of any class or series of the Guarantor’s indebtedness for any class or series of the Guarantor’s
capital stock, (iv) the purchase of fractional interests in shares of the Guarantor’s capital stock pursuant to the conversion or exchange provisions of such capital stock or the security being converted or exchanged, (v) any declaration of a
dividend in connection with any stockholder’s rights plan, or the issuance of rights, stock or other property under any stockholder’s rights plan, or the redemption or repurchase of rights pursuant thereto, or (vi) any dividend in the form
of stock, warrants, options or other rights where the dividend stock or the stock issuable upon exercise of such warrants, options or other rights is the same stock as that on which the dividend is being paid or ranks pari passu with or
junior to such stock). 
  
 SECTION 5.2.  

Ranking. 
  
 This Guarantee will constitute an unsecured obligation of the Guarantor
and will rank subordinate and junior in right of payment to all present and future Senior Indebtedness (as defined in the Indenture) of the Guarantor. By their acceptance thereof, each Holder of Capital Securities agrees to the foregoing provisions
of this Guarantee and the other terms set forth herein. 
  
 The right of the Guarantor to participate in any
distribution of assets of any of its subsidiaries upon any such subsidiary’s liquidation or reorganization or otherwise is subject to the prior claims of creditors of that subsidiary, except to the extent the Guarantor may itself be recognized
as a creditor of that subsidiary. Accordingly, the Guarantor’s obligations under this Guarantee will be effectively subordinated to all existing and future liabilities of the Guarantor’s subsidiaries, and claimants should look only to the
assets of the Guarantor for payments 

 
 13 

  
 thereunder. This Guarantee does not limit the incurrence or issuance of other secured or unsecured debt
of the Guarantor, including Senior Indebtedness of the Guarantor, under any indenture or agreement that the Guarantor may enter into in the future or otherwise. 
  
 ARTICLE VI 
  
 TERMINATION 
  
 SECTION 6.1.  

Termination. 
  
 This Guarantee shall terminate as to the Capital Securities (i) upon
full payment of the Redemption Price or the Special Redemption Price, as the case may be, of all Capital Securities then outstanding, (ii) upon the distribution of all of the Debentures to the Holders of all of the Capital Securities or (iii) upon
full payment of the amounts payable in accordance with the Declaration upon dissolution of the Issuer. This Guarantee will continue to be effective or will be reinstated, as the case may be, if at any time any Holder of Capital Securities must
restore payment of any sums paid under the Capital Securities or under this Guarantee. 
  
 ARTICLE VII 

 
 INDEMNIFICATION 
  
 SECTION 7.1.  

Exculpation. 
  
 (a)  No Indemnified Person shall be
liable, responsible or accountable in damages or otherwise to the Guarantor or any Covered Person for any loss, damage or claim incurred by reason of any act or omission of such Indemnified Person in good faith in accordance with this Guarantee and
in a manner that such Indemnified Person reasonably believed to be within the scope of the authority conferred on such Indemnified Person by this Guarantee or by law, except that an Indemnified Person shall be liable for any such loss, damage or
claim incurred by reason of such Indemnified Person’s negligence or willful misconduct with respect to such acts or omissions. 
  
 (b)  An Indemnified Person shall be fully protected in relying in good faith upon the records of the Issuer or the Guarantor and upon such information, opinions, reports or statements
presented to the Issuer or the Guarantor by any Person as to matters the Indemnified Person reasonably believes are within such other Person’s professional or expert competence and who, if selected by such Indemnified Person, has been selected
with reasonable care by such Indemnified Person, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from
which Distributions to Holders of Capital Securities might properly be paid. 
  
 SECTION
7.2.  

Indemnification. 
  
 (a)  The Guarantor agrees to indemnify
each Indemnified Person for, and to hold each Indemnified Person harmless against, any and all loss, liability, damage, claim or expense incurred without negligence or willful misconduct on the part of the Indemnified Person, arising out of or in
connection with the acceptance or administration of the trust or trusts hereunder, including but not limited to the costs and expenses (including 

 
 14 

  
 reasonable legal fees and expenses) of the Indemnified Person defending itself
against, or investigating, any claim or liability in connection with the exercise or performance of any of the Indemnified Person’s powers or duties hereunder. The obligation to indemnify as set forth in this Section 7.2 shall survive the
resignation or removal of the Guarantee Trustee and the termination of this Guarantee. 
  
 (b)  Promptly after receipt by an Indemnified Person under this Section 7.2 of notice of the commencement of any action, such Indemnified Person will, if a claim in respect thereof is to be made against the Guarantor under
this Section 7.2, notify the Guarantor in writing of the commencement thereof; but the failure so to notify the Guarantor (i) will not relieve the Guarantor from liability under paragraph (a) above unless and to the extent that the Guarantor did not
otherwise learn of such action and such failure results in the forfeiture by the Guarantor of substantial rights and defenses and (ii) will not, in any event, relieve the Guarantor from any obligations to any Indemnified Person other than the
indemnification obligation provided in paragraph (a) above. The Guarantor shall be entitled to appoint counsel of the Guarantor’s choice at the Guarantor’s expense to represent the Indemnified Person in any action for which indemnification
is sought (in which case the Guarantor shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the Indemnified Person or Persons except as set forth below); provided, however, that such counsel shall
be satisfactory to the Indemnified Person. Notwithstanding the Guarantor’s election to appoint counsel to represent the Indemnified Person in any action, the Indemnified Person shall have the right to employ separate counsel (including local
counsel), and the Guarantor shall bear the reasonable fees, costs and expenses of such separate counsel, if (i) the use of counsel chosen by the Guarantor to represent the Indemnified Person would present such counsel with a conflict of interest,
(ii) the actual or potential defendants in, or targets of, any such action include both the Indemnified Person and the Guarantor and the Indemnified Person shall have reasonably concluded that there may be legal defenses available to it and/or other
Indemnified Persons which are different from or additional to those available to the Guarantor, (iii) the Guarantor shall not have employed counsel satisfactory to the Indemnified Person to represent the Indemnified Person within a reasonable time
after notice of the institution of such action or (iv) the Guarantor shall authorize the Indemnified Person to employ separate counsel at the expense of the Guarantor. The Guarantor will not, without the prior written consent of the Indemnified
Persons, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the
Indemnified Persons are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Person from all liability arising out of such claim, action, suit or
proceeding. 
  
 SECTION 7.3.  

Compensation; Reimbursement of Expenses. 
  
 The Guarantor agrees: 

 
 (a)  to pay to the Guarantee Trustee from time to time such compensation for all services rendered by
it hereunder as the parties shall agree to from time to time (which 

 
 15 

  
 compensation shall not be limited by any provision of law in regard to the
compensation of a trustee of an express trust); and 
  
 (b)  except as otherwise expressly
provided herein, to reimburse the Guarantee Trustee upon request for all reasonable expenses, disbursements and advances incurred or made by it in accordance with any provision of this Guarantee (including the reasonable compensation and the
expenses and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or willful misconduct. 
  
 The provisions of this Section 7.3 shall survive the resignation or removal of the Guarantee Trustee and the termination of this Guarantee. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 SECTION 8.1.  

Successors and Assigns. 
  
 All guarantees and agreements contained in this Guarantee
shall bind the successors, assigns, receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the Holders of the Capital Securities then outstanding. Except in connection with any merger or consolidation of the
Guarantor with or into another entity or any sale, transfer or lease of the Guarantor’s assets to another entity, in each case to the extent permitted under the Indenture, the Guarantor may not assign its rights or delegate its obligations
under this Guarantee without the prior approval of the Holders of not less than a Majority in liquidation amount of the Capital Securities. 
  
 SECTION 8.2.  

Amendments. 
  
 Except with respect to any changes that do not adversely affect the
rights of Holders of the Capital Securities in any material respect (in which case no consent of Holders will be required), this Guarantee may be amended only with the prior approval of the Holders of not less than a Majority in liquidation amount
of the Capital Securities. The provisions of the Declaration with respect to amendments thereof shall apply equally with respect to amendments of the Guarantee. 
  
 SECTION 8.3.  

Notices. 
  
 All notices provided for in this Guarantee shall be in writing, duly
signed by the party giving such notice, and shall be delivered, telecopied or mailed by first class mail, as follows: 
  
 (a)  If given to the Guarantee Trustee, at the Guarantee Trustee’s mailing address set forth below (or such other address as the Guarantee Trustee may give notice of to the Holders of the Capital Securities):

  
 Wilmington Trust Company 
 Rodney Square North 
 1100 North Market Street 

 
 16 

  
 Wilmington, Delaware 19890-0001 
 Attention: Corporate Trust Administration 
 Telecopy: 302-651-8882 
 Telephone: 302-651-1000 
  
 (b)  If given to the Guarantor, at the Guarantor’s mailing address set forth below (or such other address as the Guarantor may give notice of
to the Holders of the Capital Securities and to the Guarantee Trustee): 
  
 Centennial First
Financial Services 
 218 East State Street 
 Redlands, California 92373 
 Attention: Mrs. Beth Sanders, Executive Vice President and Chief 
 Financial Officer 
 Telecopy: (909) 798-1872

 Telephone: (909) 798-3611 
  
 (c)  If given to any Holder of the Capital Securities, at the address set forth on the books and records of the Issuer. 
  
 All such notices shall be deemed to have been given when received in person, telecopied with receipt confirmed, or mailed by first class mail, postage prepaid, except that
if a notice or other document is refused delivery or cannot be delivered because of a changed address of which no notice was given, such notice or other document shall be deemed to have been delivered on the date of such refusal or inability to
deliver. 
  
 SECTION 8.4.  

Benefit. 
  
 This Guarantee is solely for the benefit of the Holders of the Capital
Securities and, subject to Section 2.1(a), is not separately transferable from the Capital Securities. 
  
 SECTION 8.5.  

Governing Law. 
  
 THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF. 
  
 SECTION 8.6.  

Counterparts. 
  
 This Guarantee may contain more than one counterpart of the
signature page and this Guarantee may be executed by the affixing of the signature of the Guarantor and the Guarantee Trustee to any of such counterpart signature pages. All of such counterpart signature pages shall be read as though one, and they
shall have the same force and effect as though all of the signers had signed a single signature page. 

 
 17 

  
 THIS GUARANTEE is executed as of the day and year first above written.

  
 
	 CENTENNIAL FIRST FINANCIAL SERVICES,
      as Guarantor
 
	 
	 By:
 	 	 

	  	 	 Name
 Title

 
  
 
	 WILMINGTON TRUST COMPANY,
      as Guarantee Trustee
 
	 
	 By:
 	 	 

	  	 	 Name
 Title

 
  
  

 
 18Separation Agreement-Jens Albers

 Exhibit 10.18
 SEPARATION AGREEMENT AND GENERAL RELEASE
           This Separation Agreement and General Release (this “Agreement”) is entered into by and between Multilink Technology Corporation, a California corporation
(the “Company”), and Jens Albers, an individual (“Albers”).  This Agreement is intended by the parties to resolve fully and finally any and all obligations and/or differences between them, including, without limitation,
those obligations and/or differences arising out of Albers’ employment with the Company or the cessation of that relationship.
 R E C I T A L S :
           WHEREAS, Albers has been an employee, officer and director of the Company and certain of its subsidiaries;
           WHEREAS, Albers has resigned from his positions as an officer and director of the Company and its subsidiaries and the parties mutually desire to terminate
Albers’ employment with the Company and its subsidiaries;
           WHEREAS, the parties mutually desire to enter into this Agreement in order
to confirm Albers’ resignation from his employment with the Company and its subsidiaries, on the terms and in the manner set forth in this Agreement.
           NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and with the intent to be legally bound, the parties agree as follows:
 A G R E E M E N T :
           1.  Termination of Employment; Final Pay.  
                (a)  Effective as of December 31, 2002 (the “Separation Date”), Albers’ employment with the Company and its
subsidiaries and any employment relationship between Albers and the Company and any of the Company’s subsidiaries, including MLTC Israel, Ltd. and Multilink Technology GmbH (“MLTC GmbH”), is terminated by way of his resignation, an
executed copy of which is attached hereto as Exhibit A and incorporated herein by reference (the “Resignation”).  
                (b)  Albers hereby confirms his resignation from any and all positions he held as an officer and/or director of the Company
and any of its subsidiaries, effective August 5, 2002, pursuant to the Resignation.  
                (c)  Albers shall be paid his final pay and vacation, through the Separation Date, and acknowledges that receipt of said sums
was not conditioned upon the execution of this Agreement.
           2.  Severance Payment. The Company shall pay Albers a severance
payment (the “Severance Payment”) in the lump sum amount of $125,000, less applicable withholdings and deductions and any amounts deductible pursuant to Sections 4(c) and 12(c) of this Agreement.  A Form W-2 shall issue, at the end of
calendar year 2002, reflecting said Severance Payment as wages.  The Severance Payment will be mailed to Albers’ home address or be retrievable in person by Albers at the Company’s offices located in Somerset, New Jersey, and shall be
made within seven (7) days of the Separation Date; provided, however, that the Company’s obligation to pay Albers the Severance Payment is conditioned upon Albers’ execution and delivery to the Company within three (3) calendar days after
the Separation Date the Reaffirmation Addendum attached hereto as Exhibit B.
 -1-

           3.  Activities.  During the period between the date hereof and the Separation Date, Albers shall
be entitled to continue to serve on all outside boards of directors on which he currently serves.
           4.  Equity
Interests.  
                (a)  Stock Options.  
                      (i)     During the term of his employment with the Company, Albers was
granted non-statutory stock options (the “Options”) to purchase 580,000 shares of the Company’s Class A Common Stock (the “Option Shares”).  Such grants were made pursuant and subject to the terms and conditions of the
Company’s 1998 Stock Option Plan, as amended (the “1998 Plan”), a copy of which was previously provided to Albers.  The grant of options was evidenced by and made subject to Stock Option Plan Agreements entered into between the
Company and Albers on January 28, 1999 (for 200,000 shares) and October 14, 1999 (for 380,000 shares) (the “Option Agreements”), which Option Agreements shall be deemed to be amended in accordance with the terms hereof.  

                     (ii)    As of the Separation Date, the Company and Albers agree
that all 580,000 Option Shares shall, to the extent not otherwise vested, accelerate and become fully vested.  The parties further agree that upon the Separation Date, the Options shall (a) remain exercisable for a period of eighteen (18)
months following the Separation Date, which date is June 30, 2004, and (ii) shall be exercised pursuant to the terms and conditions otherwise set forth in the 1998 Plan and the Option Agreements, as amended hereby.  
                (b)  No Other Interests in Company.  Albers acknowledges and agrees that except as set forth in Section 4(a), and
with respect to 848,000 shares of Class B common stock held by him (a portion of which have been pledged to the Company as described under Section 13(a) herein), he is not entitled to, nor shall he make any claim for, any other equity interest in
the Company of any type whatsoever, including, but not limited to, any other stock option, any shares of any class or series of capital stock in the Company or any security of the Company.  Albers further acknowledges and agrees that he waives
any claim of right to any other equity interest in the Company not specifically set forth in this Section 4.
                (c)  Responsibility for Taxes.  Albers agrees: (i) that he shall be solely liable for and shall pay any and all
taxes, costs, interest, assessments, penalties, damages, attorney’s fees or other losses to which he is or may be subject by reason of the payments by the Company to him identified in Section 2 of this Agreement, by reason of the equity
interests identified in Section 3 of this Agreement and/or by reason of the reimbursements identified in Sections 12 and 14 of this Agreement; (ii) to indemnify and hold the Company Releasees (defined below) harmless from any and all taxes, costs,
assessment, interest, penalties, damages, attorney’s fees or other losses to which the Company Releasees, or any of them, are or may be subject by reason of such payments, interest, reimbursements, including, but not limited to, any claim or
claims against the Company Releasees, for failure to withhold or underwithholding of taxes; (iii) not to seek or make any claim or claims against the Company Releasees, or any of them, for contribution, indemnity, compensation, recompense, damages,
taxes, costs, interest, penalties, attorneys’ fees or other losses, if a determination is made that withholdings should have been made from any payments to Albers; and (iv) to assume responsibility for contending and defending any claim or
assertion that withholding should have been made from any payment or other interest provided, or that the Company Releasees, or any of them, owe taxes thereon for any reason, and to cooperate fully in the defense of any such claim or claims which
is/are brought against the Company Releases, or any of them.  
                (d)  Lock-Up. 
Albers agrees that he will not, during the period commencing on the date hereof and ending on the Separation Date, (1) offer, pledge, sell, contract to sell, sell any option or
 -2-

 contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any shares of the Company’s Class A Common Stock or Class B Common Stock (“Company Common Stock”) (including shares of Company Common Stock obtained by the undersigned upon the exercise or conversion of securities exercisable or
convertible into Company Common Stock) or any securities convertible into or exercisable or exchangeable for Company Common Stock, (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of Company Common Stock, or (3) convert any shares of Class B Common Stock into Class A Common Stock, whether any such transaction described in clause (1), (2) or (3) above is to be settled by delivery of Company
Common Stock or such other securities, in cash or otherwise.  The foregoing sentence shall not apply to up to 20,000 shares of the Company’s Class A Common Stock that may be obtained by Albers through the exercise of stock options;
provided that Albers shall not sell more than 5,000 shares in any calendar month, and shall only sell such shares in accordance with the Company’s insider trading policy and applicable state and federal securities laws. 
           5.  Insurance and Benefits.  The Company will continue to pay its portion of the premium for group health insurance coverage for Albers
through December 31, 2002.  Albers’ rights, if any, regarding continuation of group health insurance coverage will be governed by the Consolidated Omnibus Budget Reconciliation Act of 1984, as amended (“COBRA”), effective January
1, 2003.  The Company will provide Albers with a COBRA notice, which will include the health insurance premium rate for coverage for Albers to pay under COBRA.  If Albers applies and remains eligible for COBRA coverage under the
Company’s group health insurance plan, the Company will pay the COBRA premium for Albers’ coverage for up to a maximum of six (6) months (through June 30, 2003).  Any premiums required for COBRA coverage after June 30, 2003 shall be
solely Albers’ responsibility.  In addition, if Albers becomes covered under any other health plan prior to June 30, 2003, Albers must inform the Company immediately and the Company may cease paying Albers’ COBRA premiums.  The
COBRA payments by the Company may be included on Albers’ Form 1099.
           6.  Return of Company Property by Albers. 
Albers represents and warrants that he has returned or will return by the Separation Date all Company property and equipment in his possession or under his control, including, but not limited to, computer equipment, computer manuals, computer
software, keys, credit cards, security access cards, telephone calling cards, manuals, notebooks, reports and other property of the Company.
           7.  General Release of All Claims.  Albers agrees to, and by signing this Agreement does, forever waive and release the Company, and each of its
affiliated or related entities, shareholders, officers, directors, employees, agents, representatives, insurers, attorneys, and parent and subsidiary corporations (collectively, the “Company Releasees”), from any and all known and unknown
claims, rights, actions, complaints, agreements, contracts, causes of action and demands of any nature whatsoever, whether known or unknown, which Albers ever had, now has, or may claim to have against the Company Releases, or any of them, as of the
moment Albers signs this Agreement, including, without limiting the generality of the foregoing, any claim arising out of (i) Albers’ employment with the Company or the cessation of that employment; (ii) any common law causes of action or
torts; (iii) any federal, state or governmental constitution, statute, regulation or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964, the Employee Retirement Income Security Act, the Americans with Disabilities
Act, the Age Discrimination in Employment Act, the New Jersey Law Against Discrimination, the New Jersey Civil Code, the California Labor Code, the California Fair Employment and Housing Act and the California Civil Code; (iv) any impairment of
Albers’ ability to obtain subsequent employment; (v) any permanent or temporary disability or loss of future earnings as a result of injury or disability arising from or associated with Albers’ employment or the cessation of Albers’
employment with the Company; (vi) any loss of reputation to Albers; or (vii) any agreement, oral or
 -3-

 written, express or implied, between Albers and the Company Releasees, or any of them, including any employment agreement.
           8.  Agreement Effective Notwithstanding Subsequent Discovery of Different Information.  Albers acknowledges that he may hereafter discover facts
different from or in addition to those he now knows or believes to be true with respect to the claims, suits, rights, actions, complaints, agreements, contracts, causes of action, and liabilities of any nature whatsoever that are the subject of the
release set forth in this Agreement, and Albers expressly agrees to assume the risk of the possible discovery of additional or different facts, and agrees that this Agreement shall be and remain effective in all respects regardless of such
additional or different facts.
           9.  Waiver of California Civil Code Section 1542.  Further, in connection with the
releases set forth above in Section 7 of this Agreement, Albers expressly agrees that he waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, or any similar provision under the laws of any
state, including New Jersey.  Section 1542 reads as follows:

	 “Section 1542.  [Certain claims not affected by general release.]  A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.”
 

           Notwithstanding the provisions of Section 1542, and for the purpose of implementing a full and complete release and discharge of the Company Releasees, Albers
expressly acknowledges that this Agreement is intended to include and does include in its effect, without limitation, all claims which Albers does not know or suspect to exist in his favor against the Company Releasees, or any of them, at the moment
of execution hereof, and that this Agreement expressly contemplates the extinguishment of all such claims.
           10.  Assistance in
Legal Actions.  In the event the Company is or becomes involved in any legal action relating to events which occurred or alleged to have occurred while Albers was rendering services to the Company or about which Albers possesses any
information, Albers agrees to assist in the preparation, prosecution or defense of any case involving the Company, including, without limitation, executing truthful declarations or documents or providing information requested by the Company and
attending and/or testifying truthfully at deposition(s) or at trial without the necessity of a subpoena.  
           11.  Non-Solicitation of Company Employees.  Albers agrees that he will not, without the prior written permission of the Company, for himself or
on behalf or in conjunction with any other person, partnership, firm, corporation or other entity until the date that is one year following the Separation Date: (a) induce or attempt to induce any person then an employee of the Company, or any of
its related or affiliated entities, to resign from or otherwise terminate his or her employment with the Company, or any of its related or affiliated entities; or (b) solicit, recruit, hire or attempt to solicit, recruit or hire any person then
employed by the Company, or any of its related or affiliated entities.
           12.  Sale of Residence; Commission Payments. 

                  (a)  As a condition to the Company’s obligations hereunder, Albers covenants and
agrees that he will sell his personal residence located in Pacific Palisades, California (the “Residence”) and such sale shall close on or before the Separation Date.
                  (b)  Upon the closing of such sale prior to the Separation Date, the Company shall reimburse Albers up to a
maximum amount of $50,000 for brokerage commissions paid by Albers to one
 -4-

 or more licensed real estate brokers with respect to such sale (“Commission Payments”).  Such reimbursement shall be reduced on a dollar-for-dollar basis by the
amount, if any, by which the net proceeds from the sale of the Residence (after deductions for real estate transfer taxes, Commission Payments, escrow payments and other similar fees customarily paid by sellers in transactions of this type) exceeds
(or would exceed if such reimbursement is made) the original purchase price paid for the Residence by Albers (as determined by reference to the purchase and sale agreement). Such reimbursement shall be made upon presentation by Albers to the Company
of appropriate documentation showing the amount and nature of the Commission Payments, and purchase price and net selling price of the Residence.  If Albers sells the Residence but the sale does not close until after the Separation Date, then
the Company shall not pay or reimburse any Commission Payments with respect to such sale. 
                  (c)  Albers acknowledges that (i) the Commission Payments shall be included in Albers’ taxable income for
income and employment tax purposes, (ii) the Company will report the Commission Payments to the appropriate taxing authorities on Albers Form W-2, and (iii) the Company is required to withhold income and employment taxes on the Commission Payments
(the “Withholding Taxes”).  The Company shall satisfy its withholding obligation by deducting such Withholding Taxes from the Severance Payment; however, in the event that the net amount payable to Albers pursuant to the Severance
Payment is not sufficient (as determined by the Company’s accounting department under applicable tax withholding laws) to cover all of the Withholding Taxes on the Commission Payments and the Severance Payment itself, Albers shall issue a check
payable to the Company for the amount of the deficiency on or before the Severance Date.  
           13.  Repayment of Promissory
Note.  
                  (a)  Albers previously borrowed funds from the Company to pay a
portion of the purchase price of the Residence.  Such borrowing is evidenced by that certain Promissory Note dated as of January 4, 2002, made by Albers in favor of the Company in the principal amount of $483,230.58  Additionally, Albers
and the Company entered into that certain Amended and Restated Pledge Agreement dated as of July 31, 2002, pursuant to which Albers pledged shares of the Company’s Class B common stock as security for repayment of the Promissory Note. 

                  (b)  Albers acknowledges and agrees that, pursuant to the terms of the Promissory Note
all outstanding principal and accrued interest thereunder shall be due and payable no later than thirty (30) days following the Separation Date (the “Repayment Date”).  In addition, Albers covenants to repay the Promissory Note in
full, including with respect to all outstanding principal and accrued interest thereunder, upon the date of the closing of the sale of the Residence should such sale close prior to the Repayment Date, and the Promissory Note shall be deemed to be
amended hereby to reflect such promise.  Albers further covenants and agrees to tender to the Company any additional shares of stock pursuant to the Security Agreement referenced above as the Company may deem necessary to fully collateralize
the loan, and the Amended and Restated Pledge Agreement shall be deemed to be amended hereby to reflect such promise.
           14.  Reimbursement for Relocation.  The Company expressly agrees to reimburse Albers up to $25,000 for his actual relocation costs incurred in
moving his household goods from the United States to Germany, including, but not limited to, with respect to travel by Albers with respect to such move.  The parties hereto further agrees that any bills for relocation expenses must be submitted
to the Company by January 31, 2003 in accordance with the Company’s Relocation Policy, a copy of which Albers acknowledges receiving.
           15.  Expenses; Liability Insurance.  Albers shall be entitled to expense reimbursement for reasonable business expenses incurred by him prior to
the Separation Date consistent with past practice as
 -5-

 follows:  (i) for the automobile currently leased by him and (ii) for other reasonable business expenses incurred by him in accordance with the Company’s expense
reimbursement policies.  All requests for reimbursement must be submitted to the Company no later than forty-five (45) days following the Separation Date.  Except as otherwise provided in this Agreement, Albers shall thereafter not be
entitled to reimbursement for any expenses incurred by Albers after the Separation Date. 
           16.  No Disclosure of Confidential
Information.
                  (a)  Albers acknowledges and agrees that (i) by reason of Albers’
position with the Company, Albers has been given access to information, designs, drawings, plans, computer software and programs, trade secrets, strategies, procedures, and expertise unique to the Company, as well as other confidential materials and
information; and (ii) the foregoing constitute trade secrets and/or confidential, privileged and proprietary information respecting the business affairs of the Company which gravely affect the successful and effective operation of the Company. 
As such, Albers agrees not to, directly or indirectly, disclose to any third person or use for the benefit of anyone other than the Company, or use for Albers’ own benefit or purposes any such confidential, privileged or proprietary information
without the prior written approval of the Company.  Albers agrees to immediately return all documents and writings of any kind, including both originals and copies, whether developed by Albers or others, within Albers’ custody, possession
or control, which contain any non-public information which in any way relates or refers to the Company.  Albers further acknowledges and agrees that the provisions of that certain Proprietary Information and Confidentiality Agreement dated June
10, 2000 (the “Proprietary Information Agreement”) remain in full force and effect and that he will abide by each of the terms and conditions set forth therein, including, but not limited to, execution of any certifications required as of
the Separation Date.
                  (b)  Albers acknowledges the particular value to the Company of
subsection (a) of this Section 16 and of Section 11, the breach of which cannot be reasonably or adequately compensated in an action at law.  Therefore, Albers expressly agrees that the Company, in addition to any other rights or remedies that
the Company shall possess, shall be entitled to injunctive and other equitable relief to prevent or remedy a breach of this Section 16 and/or Section 11 by Albers.  
           17.  No Assignment.  Albers represents and warrants that he has made no assignment, and will make no assignment, of any claim, chose in action,
right of action or any right of any kind whatsoever, embodied in any of the claims released herein, and that no other person or entity of any kind had or has any interest in any of the claims, demands, obligations, actions, causes of action, debts,
liabilities, rights, contracts, damages, attorneys’ fees, costs, expenses or losses released herein.
           18.  No
Disparagement.  Albers agrees not to make or publish any disparaging or defamatory communication or statement which has the purpose of causing, or which by natural consequence causes, injury or damage to the reputation or business of the
Company Releasees, or any of them.
           19.  No Waiver.  Failure to insist on compliance with any term, covenant or
condition contained in this Agreement shall not be deemed a waiver of that term, covenant or condition, nor shall any waiver or relinquishment of any right contained in this Agreement at any one time or more times be deemed a waiver or
relinquishment of any right at any other time or times.
           20.  Successors and Assigns.  This Agreement, and all terms
and provisions hereof, shall be binding upon and shall inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns.  This Agreement shall be expressly assumed by any person or entity that
succeeds to the Company’s business by reason of merger, consolidation, combination, asset purchase or similar transaction, and in such event such person or entity shall be expressly bound by the terms hereof as if
 -6-

 such person or entity were the original party hereto.  Notwithstanding the foregoing, no such succession and assumption shall in any way affect the treatment of the Stock
Options under the 1998 Plan, including, but not limited to, the change in control provisions of Section 13.01 therein.  
           21.  No Admission of Liability.  The parties to this Agreement acknowledge that this Agreement effects the resolution of issues which are in
controversy and that nothing contained herein shall constitute or be construed as an admission of liability or as an admission of the truth of the facts and the matters asserted by either party.  The parties hereto desire to resolve their
disputes in an amicable fashion and have entered into this Agreement with the desire to forever resolve between them those matters described in this Agreement.  The prevailing party in any proceeding brought to enforce the terms of this
Agreement shall be entitled to recover from the other party all damages, costs and expenses, including with limitations, attorneys’ and arbitrator’s fees, incurred as a result of said action.
           22.  Severability.  Should any portion, word, clause, phrase, sentence or paragraph of this Agreement be declared void of unenforceable, such
portion may be considered and independent and severable from the remainder, the validity of which shall remain unaffected.
           23.  Representation.  Both parties to this Agreement represent and warrant that this Agreement in all respects has been voluntarily and
knowingly executed by them after having received independent legal advice, if they desired, from attorneys of their choice.  Both parties also represent and warrant that they have carefully read this Agreement and the contents hereof are known
and understood by them.
           24.  Choice of Law.  This Agreement has been negotiated and executed in the State of New
Jersey and shall in all respects be interpreted, enforced and governed in accordance with the laws of New Jersey.  After execution of this Agreement, any dispute regarding enforcement or breach of this Agreement, or any aspect of Albers’
employment with the Company or the cessation of such employment, will be submitted to final and binding arbitration pursuant to the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”) in
Somerset County, New Jersey, as the exclusive remedy for such claim or dispute.  In any such arbitration, discovery may be conducted pursuant to applicable New Jersey law.  The arbitrator shall issue a written opinion and shall have full
authority to award all remedies which would be available in court.  Judgment upon the award rendered by the AAA arbitrator may be entered in any court having jurisdiction thereof.
           25.  Further Assurances.  Albers agrees to assist the Company and take all reasonable and necessary actions to ensure a smooth transition
hereunder.  In connection therewith, he represents that all necessary actions have been taken  to transfer the Geschaeftsfuehrer he holds in Multilink Technology GmbH to Andre Stichelen, who now holds such position, subject only to formal
registration in the Commercial Registry in Germany for declarative purposes.  
           26.  Joint Preparation.  The
parties acknowledge that this Agreement was jointly prepared by them, by and through their respective legal counsel, and any uncertainty or ambiguity existing herein shall not be interpreted against any of the parties, but otherwise according to the
application of the rules on interpretation of contracts.
           27.  Entire Agreement.  This Agreement, the Option
Agreements, the Promissory Note, the Amended and Restated Pledge Agreement, the Proprietary Information Agreement and the Indemnification Agreement dated September 29, 2000 between Albers and the Company (each, to the extent applicable, as amended
hereby) (the “Albers’ Agreements”) constitute the entire integrated agreement between the parties and supersede any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, express or implied,
between the parties to this Agreement.  The
 -7-

 parties to this Agreement each acknowledge that no representations, inducements, promises, agreements or warranties, oral or otherwise, have been made by them, or anyone acting
on their behalf, which are not embodied in the Albers’ Agreements that they have not executed this Agreement in reliance on any such representation, inducement, promise, agreement or warranty, and that no representation, inducement, promise,
agreement or warranty not contained in the Albers’ Agreements, including, without limitation, any purported supplements, modifications, waivers or terminations of any of the Albers’ Agreements, shall be valid or binding unless executed in
writing by both of the parties to this Agreement.
           28.  Costs; Miscellaneous.
                  (a)  The parties to this Agreement agree to bear their owns costs and attorneys’ fees in connection with this
Agreement, except as otherwise expressly stated herein.
                  (b)  The parties, and each of
them, warrant: (i) that no other person or entity owns, owned, or claims to own, any interest in any of the claims, demands, causes of action, obligations, damages, property rights or liabilities covered in this Agreement; (ii) that they, and each
of them, have the sole right and exclusive authority to execute this Agreement; and (iii) that they have not sold, assigned, transferred, conveyed or otherwise disposed of any claim, demand, cause of action, obligation, damage, property right or
liability covered in this Agreement.
                  (c)  The headings in this Agreement are for
convenience only and do not limit, alter or affect the matters contained in this Agreement or the paragraphs they encaption.
           29.  Notices.  All notices, payments or other communications received under this Agreement shall be sent in writing to the following addresses
designated in writing by the parties:
           If to Albers, to his address as reflected on the Company’s records.
           If to the Company, to:
           300 Atrium Drive, 2nd
Floor
           Somerset, New Jersey
           Attention:  President
           or to such other address as shall be designated in writing by the party to whom the notice is to be sent.  
           30.  Counterparts.  This Agreement may be executed in one or more counterparts, all of which together constitute one single document.  It
is further understood that no legal obligations will arise under this instrument unless and until each and every party has signed its respective copy of the Agreement.
 [Remainder of page
left intentionally blank]
 -8-

           IN WITNESS WHEREOF, the undersigned have executed this Separation Agreement and General Release on the dates set forth
hereinafter.

	  
 	 MULTILINK TECHNOLOGY CORP.,
 a California corporation
 
	  
 	  
 
	  
 	  
 
	 Dated: October 30, 2002
 	 By:
 	 /s/ RICHARD N. NOTTENBURG
 	  
 
	  
 	  
 	 
 	  
 
	  
 	 Its:
 	 President, Chairman and CEO
 	  
 
	  
 	  
 	   
 	  
 
	  
 	  
 	   
 	  
 
	 Dated: October 30, 2002
 	  
 	 /s/ JENS ALBERS
 	  
 
	  
 	  
 	 
 	  
 
	  
 	  
 	 Jens Albers
 	  
 

 -9-

 Exhibit 10.18
 EXHIBIT A
 LETTER OF RESIGNATION
 August 5, 2002
 To the Board of Directors of Multilink Technology Corporation:
           I hereby resign my employment with Multilink Technology Corporation and any of its related or affiliated entities and subsidiaries, including MLTC Israel, Ltd.
and Multilink Technology GmbH, effective December 31, 2002.  I hereby further confirm that I resigned my positions as director and officer of Multilink Technology Corporation and any of its subsidiaries, effective August 5, 2002.

	  
 	 Sincerely,
 
	  
 	  
 
	  
 	  
 
	  
 	 JENS ALBERS
 
	  
 	  
 

 EXHIBIT A
 -1-

 EXHIBIT B
 REAFFIRMATION ADDENDUM
           Albers and the Company, as identified in the Separation Agreement and General Release (the “Agreement”) to which this Addendum is attached, hereby reaffirm
said Agreement as if it were set forth in full in this Reaffirmation Addendum.  With the intent of giving current date effectiveness to the release of liability in the Agreement, thereby releasing the Company and each of the Company Releasees
(as defined in the Agreement) with respect to any and all claims (as defined in the Agreement) that Albers has, or claims to have, as a result of events that have occurred as of the date of this Reaffirmation Addendum, Albers and the Company
acknowledge and agree that the Agreement shall be deemed to have been signed by each of them as of the date set forth next to their signatures below.
           This Reaffirmation Addendum may be signed in any number of counterparts, each of which, when so signed, shall be deemed an original.
           Albers and the Company have read this Reaffirmation Addendum and fully understand its content and legal effect and intend to be bound thereby.
           IN WITNESS WHEREOF, the parties hereto have each executed this Reaffirmation Addendum on the dates set forth opposite their respective signatures.

	 Dated:
 	  
 	  
 	  
 	  
 	  
 
	  
 	 
 	  
 	  
 	 
 	  
 
	  
 	  
 	  
 	  
 	 JENS ALBERS
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	 Dated:
 	  
 	  
 	 MULTILINK TECHNOLOGY CORPORATION
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	 
 	  
 	 By:
 	  
 	  
 
	  
 	  
 	  
 	  
 	 
 	  
 
	  
 	  
 	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	 Its:
 	  
 	  
 

 EXHIBIT B
 -1-

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