Document:

Amended and Restated Employment Agreement of David L. Kennedy

 Exhibit 10.3 

This AMENDED AND RESTATED EMPLOYMENT AGREEMENT (this “Agreement”), dated as of October 27, 2011, is
entered into by and between REVLON CONSUMER PRODUCTS CORPORATION, a Delaware corporation (“RCPC” and, together with its parent Revlon, Inc. (“Revlon”) and its subsidiaries, the “Company”), and David Kennedy (the
“Executive”). 
 WHEREAS, RCPC wishes to continue to employ the Executive and the Executive wishes to
accept continued employment with the Company on the terms and conditions set forth in this Agreement. 
 NOW,
THEREFORE, RCPC and the Executive hereby agree as follows: 
  

	 	1.	 Employment, Duties and Acceptance. 

1.1 Employment, Duties.    RCPC hereby employs the Executive for the Term (as defined in
Section 2.1) to render services to the Company, in the capacity of Vice Chairman of the Board of Directors of Revlon and RCPC, reporting to the Board of Directors of each of Revlon and RCPC, and to perform such other duties and responsibilities
consistent with such position (including continuing to serve as a director of Revlon and RCPC and additional service as a director or officer of any subsidiary of Revlon, if elected), as may be assigned by the Board of Directors of Revlon. The
Executive’s title shall be Vice Chairman of the Board of Directors of Revlon and RCPC. The Executive’s duties shall include, without limitation, oversight of the formulation of the Company’s strategy, including strategy related to
brand equity, new products and innovation processes and capabilities, and talent development and succession planning for the Company’s key employees. RCPC agrees to use its best efforts to cause the Executive to continue to be elected to the
Board of Directors of Revlon and of RCPC, so that the Executive may continue to serve as a member of both Boards throughout the Term. 
 1.2 Acceptance.    The Executive hereby accepts such employment and agrees to render the services described above. During the Term, the Executive agrees to serve the Company
faithfully and to the best of the Executive’s ability, and to use the Executive’s best efforts, skill and ability to promote the Company’s interests. 

1.3 Performance Warranty.    As an inducement for the Company to enter into this Agreement,
the Executive hereby represents that he is not a party to any contract, agreement or understanding which prevents, prohibits or limits him in any way from entering into and fully performing his obligations under this Agreement and any duties and
responsibilities that may be assigned to the Executive hereunder. 
 2. Term of Employment; Certain
Post-Term Benefits. 
 2.1 The Term.    The term of the Executive’s
employment under this Agreement (the “Term”) shall commence as of the date first set forth above (the “Effective Date”) and shall end twenty-four months after RCPC provides to the Executive a notice of non-renewal, unless in
either case sooner terminated pursuant to Section 4. Non-extension of the Term shall not be 

 
deemed to be a breach of this Agreement by RCPC for purposes of Section 4.4. Additionally, the Executive may terminate the Term at any time upon sixty (60) days’ prior written
notice to the Company and such termination shall not be deemed a breach of this Agreement. During any period that the Executive’s employment shall continue following the end of the Term, the Executive shall be deemed an employee at will,
provided, however, that the Executive shall be eligible for severance on the terms and subject to the conditions of the Revlon Executive Severance Pay Plan as in effect from time to time, or such plan or plans, if any, as may succeed it (the
“Executive Severance Plan”), provided that the Severance Period for the Executive under the Executive Severance Plan shall be 24 months, subject to the terms and conditions of such plan. 

2.2 Special Curtailment.    The Term shall end earlier than the date provided in
Section 2.1, if sooner terminated pursuant to Section 4. 
  

	 	3.	 Compensation; Benefits. 

 3.1 Salary.    As compensation for all services to be rendered pursuant to this Agreement, RCPC agrees to pay the Executive during the Term a base salary, payable in bi-weekly
arrears, at the annual rate of not less than $150,000 (the “Base Salary”). All payments of Base Salary or other compensation hereunder shall be less such deductions or withholdings as are required by applicable law and regulations. The
Base Salary shall be reviewed by Revlon’s Board of Directors or Compensation Committee from time to time. In the event that Revlon’s Board of Directors or Compensation Committee, in its sole discretion, determines to increase the Base
Salary, such increased amount shall, from and after the effective date of the increase, constitute “Base Salary” for purposes of this Agreement. 
 3.2 Bonus.    The Executive shall be eligible to participate in the Revlon Annual Executive Bonus Program as in effect from time to time (or such plan or plans, if any, as may
succeed it) (the “Bonus Program”), with target bonus eligibility of 100% of Base Salary for achieving performance objectives set by the Compensation Committee or its designee, subject to the terms and conditions of such Bonus Program,
commencing with performance for the 2012 calendar year. In the event that the Executive’s employment shall terminate pursuant to Section 4.4 during any calendar year, the Executive’s bonus with respect to the year during which such
termination occurs shall be pro-rated for the actual number of days of active employment during such year and such bonus, as pro-rated, shall be payable (i) if and to the extent bonuses are payable to executives under the Bonus Program for that
year based upon achievement of the objectives set for that year and not including any discretionary bonus amounts which may otherwise be payable to other executives despite non-achievement of bonus objectives for such year, and (ii) on the date
bonuses would otherwise be payable to executives under the Bonus Program. Notwithstanding anything herein or contained in the Bonus Program to the contrary, in the event that the Executive’s employment shall terminate pursuant to
Section 4.4 during any calendar year, the Executive shall be entitled to receive his bonus (if eligible and not already paid) with respect to the year immediately preceding the year of termination (if bonuses with respect to such year are
payable to other executives based upon achievement of bonus objectives and not based upon discretionary amounts which may be paid to other executives despite non-achievement of bonus objectives) as and when such

 
bonuses would otherwise be payable to executives under the Bonus Program, despite the fact that the Executive may not be actively employed on such date of payment. The Executive shall not be
eligible for new awards under the Third Amended and Restated Revlon, Inc. Stock Plan or long-term incentive compensation plan awards. 
 3.3 Business Expenses.    RCPC shall pay or reimburse the Executive for all reasonable expenses actually incurred or paid by the Executive during the Term in the performance of
the Executive’s services under this Agreement, subject to and in accordance with the Revlon Travel and Entertainment Policy as in effect from time to time, or such policy or policies, if any, as may succeed it. 

3.4 Vacation.    During each year of the Term, the Executive shall be entitled to a vacation
period or periods in accordance with the vacation policy of the Company as in effect from time to time, but not less than four weeks. 
 3.5 Fringe Benefits.    During the Term, the Executive shall be entitled to participate in those qualified and non-qualified defined benefit, defined contribution, group life
insurance, medical, dental, disability and other benefit plans and programs of the Company as from time to time in effect (or their successors) generally made available to other executives of the Executive’s level and in such other plans and
programs and in such perquisites as may be generally made available to senior executives of the Company of the Executive’s level generally (other than the Company’s long-term incentive compensation plans). Further, during the Term, the
Executive will be eligible (a) to participate in Revlon’s Executive Financial Counseling and Tax Preparation Program, as from time to time in effect, or such program or programs, if any, as may succeed it, and (b) to receive a car
allowance at the rate of $15,000 per annum, which is intended to cover lease, insurance, operating and maintenance costs under the car allowance program as in effect from time to time, or such program or programs, if any, as may succeed it.

  

	 	4.	 Termination. 

 4.1 Death.    If the Executive shall die during the Term, the Term shall terminate and no further amounts or benefits shall be payable hereunder, other than (i) for
accrued, but unpaid, Base Salary as of such date and (ii) pursuant to life insurance provided under Section 3.5. 
 4.2 Disability.    If during the Term the Executive shall become physically or mentally disabled, whether totally or partially, such that the Executive is unable to perform the
Executive’s services hereunder for (i) a period of six consecutive months or (ii) shorter periods aggregating six months during any twelve month period, RCPC may at any time after the last day of the six consecutive months of
disability or the day on which the shorter periods of disability shall have equaled an aggregate of six months, by written notice to the Executive (but before the Executive has returned to active service following such disability), terminate the
Term and no further amounts or benefits shall be payable hereunder. 

 4.3 Cause.    RCPC may at any time by written
notice to the Executive terminate the Term for “Cause” and, upon such termination, the Executive shall be entitled to receive no further amounts or benefits hereunder, except for accrued, but unpaid, salary as of such date and as required
by law. As used herein the term “Cause” shall mean gross neglect by the Executive of the Executive’s duties hereunder, conviction of the Executive of any felony, conviction of the Executive of any lesser crime or offense involving the
property of the Company or any of its affiliates, misconduct by the Executive in connection with the performance of the Executive’s duties hereunder or other material breach by the Executive of this Agreement (specifically including, without
limitation, Section 1.3), any breach of the Revlon Code of Business Conduct, or the Employee Agreement as to Confidentiality and Non-Competition, or any other conduct on the part of the Executive which would make the Executive’s continued
employment by the Company prejudicial in any material respect to the best interests of the Company. 
 4.4
Company Breach; Other Termination.    The Executive shall be entitled to terminate the Term and the Executive’s employment upon 60 days’ prior written notice (if during such period RCPC fails to cure any such
breach) in the event that RCPC materially breaches any of its obligations hereunder. In addition, RCPC shall be entitled to terminate the Term and the Executive’s employment at any time and without prior notice (otherwise than pursuant to the
provisions of Section 4.2 or 4.3). In consideration of the Executive’s covenant in Section 5.2, upon termination under this Section 4.4 by the Executive, or in the event RCPC so terminates the Term otherwise than pursuant to the
provisions of Section 4.2 or 4.3, RCPC agrees, and the Company’s sole obligation arising from such termination shall be, for RCPC either: 
 (i) to make payments in lieu of Base Salary in the amounts prescribed by Section 3.1, to pay the Executive any annual bonus contemplated by Section 3.2, and to continue the Executive’s
participation in the medical, dental and group life insurance plans and other perquisites of the Company in which the Executive was entitled to participate pursuant to Section 3.5 (in each case less amounts required by law to be withheld)
through the date on which the Term would have expired pursuant to Section 2.1, if RCPC had given notice of non-renewal on the date of termination (such period shall be referred to as the “Severance Period”), provided that
(1) such benefit continuation is subject to the terms of such plans, (2) life insurance continuation is subject to a limit of two years, (3) the Executive shall cease to be covered by medical and/or dental plans of the Company at such
time as the Executive becomes covered by like plans of another company, (4) any bonus payments required pursuant to this Section 4.4(i) shall be payable as and when bonuses would otherwise be payable to executives under the Bonus Program
as then in effect, (5) the Executive shall, as a condition, execute such release, confidentiality, non-competition and other covenants as would be required in order for the Executive to receive payments and benefits under the Executive
Severance Plan referred to in clause (ii) below, and (6) any cash compensation paid or payable or any non-cash compensation paid or payable in lieu of cash compensation earned by the Executive from other employment or consultancy during
such period (but not including any pension or retirement benefits payable by The Coca Cola Company or Coca Cola Amatil Limited and also not including any compensation payable by Scientific Games Corporation or MacAndrews and Forbes Holdings Inc.)
shall reduce the payments provided for herein payable with respect to such other employment or consultancy, or 

 (ii) to make the payments and provide the benefits prescribed by the
Executive Severance Plan of the Company as in effect from time to time, upon the Executive’s compliance with the terms and conditions thereof, provided that the Severance Period for the Executive shall be 24 months. 

The Company shall provide the greater of the payments and other benefits described under clauses (i) and (ii) of this
Section 4.4; provided, however, if the provision of any benefits described above would trigger a tax under Section 409A, the Company shall instead promptly pay to the Executive in a cash lump sum payment an amount equal to the value
(based on the then-current cost to the Company) of such benefits. Any compensation earned by the Executive from other employment or a consultancy (but not including any pension or retirement benefits payable by The Coca Cola Company or Coca Cola
Amatil Limited and also not including any compensation payable by Scientific Games Corporation or MacAndrews and Forbes Holdings Inc.) shall reduce the payments required pursuant to clause (i) above or shall be governed by the terms of the
Executive Severance Plan in the case of clause (ii) above. 
 4.5 Litigation
Expenses.    If RCPC and the Executive become involved in any action, suit or proceeding relating to the alleged breach of this Agreement by RCPC or the Executive, or any dispute as to whether a termination of the
Executive’s employment is with or without Cause, then if and to the extent that a final judgment in such action, suit or proceeding is rendered in favor of the Executive, RCPC shall reimburse the Executive for all expenses (including reasonable
attorneys’ fees) incurred by the Executive in connection with such action, suit or proceeding or the portion thereof adjudicated in favor of the Executive. 

4.6 No Mitigation.    In no event shall the Executive be obligated to seek other employment.

 4.7 Internal Revenue Code Section 409A.    Section 409A of the Code (as
defined below) and/or its related rules and regulations (“Section 409A”), imposes additional taxes and interest on compensation or benefits deferred under certain “nonqualified deferred compensation plans” (as defined under the
Code). These plans may include, among others, nonqualified retirement plans, bonus plans, stock option plans, employment agreements and severance agreements. The Company reserves the right to provide compensation or benefits under any such plan in
amounts, at times and in a manner that minimizes taxes, interest or penalties as a result of Section 409A, including any required withholdings, and the Executive agrees to cooperate with the Company in such actions. Specifically, and without
limitation of the previous sentence, if the Executive is a “specified employee,” as such term is defined under Section 409A (generally one of the Company’s top 50 highest paid officers), to the extent required under
Section 409A, the Company will not make any payments to the Executive under this Agreement upon a “separation from service,” as such term is defined under Section 409A, until six months after the Executive’s date of
separation from service or, if earlier, the date of the Executive’s death. Upon expiration of the six-month period, or, if earlier, the date of the Executive’s death, the Company shall make a payment to the Executive (or his beneficiary or
estate, if applicable) equal to the sum of all payments that would have been paid to the Executive from the date of separation from service had the Executive not 

 
been a “specified employee” through the end of the six month period, and thereafter the Company will make all the payments at the times specified in this Agreement or applicable policy
as the case may be. In addition, the Company and the Executive agree that, for purposes of this Agreement, termination of employment (or any variation thereof) will satisfy all of the requirements of “separation from service” as defined
under Section 409A. For purposes of this Agreement, the right to a series of installment payments, such as salary continuation or severance payments, shall be treated as the right to a series of separate payments and shall not be treated as a
right to a single payment. For purposes of this Agreement, the term “Code” shall mean the Internal Revenue Code of 1986, as amended, including all final regulations promulgated thereunder, and any reference to a particular section of the
Code shall include any provision that modifies, replaces or supersedes such section. 
  

	 	5.	 Protection of Confidential Information; Non-Competition. 

5.1 The Executive acknowledges that the Executive’s services will be unique, that they will involve the development
of Company-subsidized relationships with key customers, suppliers, and service providers as well as with key Company employees and that the Executive’s work for the Company will give the Executive access to highly confidential information not
available to the public or competitors, including trade secrets and confidential marketing, sales, product development and other data and plans which it would be impracticable for the Company to effectively protect and preserve in the absence of
this Section 5 and the disclosure or misappropriation of which could materially adversely affect the Company. Accordingly, the Executive agrees: 
 5.1.1 except in the course of performing the Executive’s duties provided for in Section 1.1, not at any time, whether during or after the Executive’s employment with the Company, to divulge
to any other entity or person any confidential information acquired by the Executive concerning the Company’s or its affiliates’ financial affairs or business processes or methods or their research, development or marketing programs or
plans, any other of its or their trade secrets, any information regarding personal matters of any directors, officers, employees or agents of the Company or its affiliates or their respective family members, or any information concerning the
circumstances of the Executive’s employment and any termination of the Executive’s employment with the Company or any information regarding discussions related to any of the foregoing. The foregoing prohibitions shall include, without
limitation, directly or indirectly publishing (or causing, participating in, assisting or providing any statement, opinion or information in connection with the publication of) any diary, memoir, letter, story, photograph, interview, article, essay,
account or description (whether fictionalized or not) concerning any of the foregoing, publication being deemed to include any presentation or reproduction of any written, verbal or visual material in any communication medium, including any book,
magazine, newspaper, theatrical production or movie, or television or radio programming or commercial or over the internet. In the event that the Executive is requested or required to make disclosure of information subject to this Section 5.1.1
under any court order, subpoena or other judicial process, the Executive will promptly notify RCPC, take all reasonable steps requested by RCPC to defend against the compulsory disclosure and permit RCPC, at its expense, to control with counsel of
its choice any proceeding relating to the compulsory disclosure. The Executive acknowledges that all 

 
information the disclosure of which is prohibited by this section is of a confidential and proprietary character and of great value to the Company; and 

5.1.2 to deliver promptly to the Company on termination of the Executive’s employment with the Company, or at any
time that RCPC may so request, all memoranda, notes, records, reports, manuals, drawings, blueprints and other documents (and all copies thereof) relating to the Company’s business and all property associated therewith, which the Executive may
then possess or have under the Executive’s control. 
 5.2 In consideration of RCPC’s covenant in
Section 4.4, the Executive agrees (i) in all respects fully to comply with the terms of the Employee Agreement as to Confidentiality and Non-Competition referred to in the Executive Severance Plan (the “Non-Competition
Agreement”), whether or not the Executive is a signatory thereof, with the same effect as if the same were set forth herein in full, and (ii) in the event that the Executive shall terminate the Executive’s employment otherwise than as
provided in Section 4.4, the Executive shall comply with the restrictions set forth in paragraph 9(e) of the Non-Competition Agreement through the date on which the Term would then otherwise have expired pursuant to Section 2.1, subject
only to the Company continuing to make payments equal to the Executive’s Base Salary during such period, notwithstanding the limitation otherwise applicable under paragraph 9(d) thereof or any other provision of the Non-Competition Agreement.

 5.3 If the Executive commits a breach of any of the provisions of Sections 5.1 or 5.2 hereof, RCPC shall
have the following rights and remedies: 
 5.3.1 the right and remedy to immediately terminate all further
payments and benefits provided for in this Agreement, except as may otherwise be required by law in the case of qualified benefit plans; 
 5.3.2 the right and remedy to have the provisions of this Agreement specifically enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach will cause
irreparable injury to the Company and that money damages and disgorgement of profits will not provide an adequate remedy to the Company, and, if the Executive attempts or threatens to commit a breach of any of the provisions of Sections 5.1 or 5.2,
the right and remedy to be granted a preliminary and permanent injunction in any court having equity jurisdiction against the Executive committing the attempted or threatened breach (it being agreed that each of the rights and remedies enumerated
above shall be independent of the others and shall be severally enforceable, and that all of such rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to RCPC under law or in equity); and

 5.3.3 the right and remedy to require the Executive to account for and pay over to the Company all
compensation, profits, monies, accruals, increments or other benefits (collectively “Benefits”) derived or received by the Executive as the result of any transactions constituting a breach of any of the provisions of Sections 5.1 or 5.2
hereof, and the Executive hereby agrees to account for and pay over such Benefits as directed by RCPC. 

 5.4 If any of the covenants contained in Sections 5.1, 5.2 or 5.3, or any
part thereof, hereafter are construed to be invalid or unenforceable, the same shall not affect the remainder of the covenant or covenants, which shall be given full effect, without regard to the invalid portions. 

5.5 If any of the covenants contained in Sections 5.1 or 5.2, or any part thereof, are held to be unenforceable because
of the duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision so as to be enforceable to the maximum extent
permitted by applicable law and, in its reduced form, said provision shall then be enforceable. 
 5.6 The
parties hereto intend to and hereby confer jurisdiction to enforce the covenants contained in Sections 5.1, 5.2 and 5.3 upon the courts of any state or country within the geographical scope of such covenants. In the event that the courts of any one
or more of such states or countries shall hold such covenants wholly unenforceable by reason of the breadth of such covenants or otherwise, it is the intention of the parties hereto that such determination not bar or in any way affect RCPC’s
right to the relief provided above in the courts of any other states or countries within the geographical scope of such covenants as to breaches of such covenants in such other respective jurisdictions, the above covenants as they relate to each
state or country being for this purpose severable into diverse and independent covenants. 
 5.7 Any
termination of the Term or the Executive’s employment shall have no effect on the continuing operation of this Section 5. 
  

	 	6.	 Inventions and Patents. 

 6.1 The Executive agrees that all processes, technologies and inventions (collectively, “Inventions”), including new contributions, improvements, ideas and discoveries, whether patentable or
not, conceived, developed, invented or made by him during the Term shall belong to the Company, provided that such Inventions grew out of the Executive’s work with the Company or any of its subsidiaries or affiliates, are related in any manner
to the business (commercial or experimental) of the Company or any of its subsidiaries or affiliates or are conceived or made on the Company’s time or with the use of the Company’s facilities or materials. The Executive shall further:
(a) promptly disclose such Inventions to the Company; (b) assign to the Company, without additional compensation, all patent and other rights to such Inventions for the United States and foreign countries; (c) sign all papers
necessary to carry out the foregoing; and (d) give testimony in support of the Executive’s inventorship. 
 6.2 If any Invention is described in a patent application or is disclosed to third parties, directly or indirectly, by the Executive within two years after the termination of the Executive’s
employment with the Company, it is to be presumed that the Invention was conceived or made during the Term. 

 6.3 The Executive agrees that the Executive will not assert any rights to
any Invention as having been made or acquired by the Executive prior to the date of this Agreement, except for Inventions, if any, disclosed to the Company in writing prior to the date hereof. 

 

	 	7.	 Intellectual Property. 

 Notwithstanding and without limitation of Section 6, the Company shall be the sole owner of all the products and proceeds of the Executive’s services hereunder, including, but not limited to,
all materials, ideas, concepts, formats, suggestions, developments, arrangements, packages, programs and other intellectual properties that the Executive may acquire, obtain, develop or create in connection with or during the Term, free and clear of
any claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than the Executive’s right to receive payments hereunder). The Executive shall, at the request of RCPC, execute such assignments,
certificates or other instruments as RCPC may from time to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or defend its right, title or interest in or to any such properties. 

 

	 	8.	 Revlon Code of Business Conduct. 

 In consideration of the Company’s execution of this Agreement, the Executive agrees in all respects to fully comply with the terms of the Revlon Code of Business Conduct, annexed at Schedule
A, whether or not he is a signatory thereof, with the same effect as if the same were set forth herein in full. 
  

	 	9.	 Indemnification. 

 Subject to the terms, conditions and limitations of its by-laws and applicable Delaware law, RCPC will defend and indemnify the Executive against all costs, charges and expenses incurred or sustained by
the Executive in connection with any action, suit or proceeding to which the Executive may be made a party, brought by any shareholder of the Company directly or derivatively or by any third party by reason of any act or omission of the Executive as
an officer, director or employee of the Company or of any subsidiary or affiliate of the Company. 

	 	10.	 Notices. 

 All notices, requests, consents and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, sent by
overnight courier or mailed first class, postage prepaid, by registered or certified mail (notices mailed shall be deemed to have been given on the date mailed) provided that all notices to the Company shall be sent simultaneously by fax and email,
as follows (or to such other address as either party shall designate by notice in writing to the other in accordance herewith): 
 If to the Company, to: 
 Revlon Consumer Products Corporation

 237 Park Avenue 
 New York, New York 10017 
 Attention: Lauren Goldberg, Senior Vice
President and General Counsel 
 Fax: 212-527-5180 

Email: lauren.goldberg@revlon.com 

If to the Executive, to the Executive’s principal residence as reflected in the records of the Company. 

 

	 	11.	 General. 

 11.1 This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York applicable to agreements made between residents thereof and to be performed
entirely in New York. 
 11.2 The section headings contained herein are for reference purposes only and shall
not in any way affect the meaning or interpretation of this Agreement. 
 11.3 This Agreement sets forth the
entire agreement and understanding of the parties relating to the subject matter hereof, and supersedes all prior agreements, arrangements and understandings, written or oral, relating to the subject matter hereof including any offer letter or term
sheets. No representation, promise or inducement has been made by either party that is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not so set forth. 

11.4 This Agreement shall be binding on the parties hereto and their successors and permitted assigns. This Agreement,
and the Executive’s rights and obligations hereunder, may not be assigned by the Executive, nor may the Executive pledge, encumber or anticipate any payments or benefits due hereunder, by operation of law or otherwise. RCPC may assign its
rights, together with its obligations, hereunder (i) to any affiliate or (ii) to a third party in connection with any sale, transfer or other disposition of all or substantially all of any business to which the Executive’s services
are then principally devoted, provided that no assignment pursuant to clause (ii) shall relieve RCPC from its obligations hereunder to the extent the same are not timely discharged by such assignee. 

 11.5 This Agreement may be amended, modified, superseded, canceled, renewed
or extended and the terms or covenants hereof may be waived, only by a written instrument executed by both of the parties hereto, or in the case of a waiver, by the party waiving compliance. The failure of either party at any time or times to
require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any
one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in this Agreement. 

11.6 This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original but all
of which together will constitute one and the same instrument. 
 12. Subsidiaries and
Affiliates.    As used herein, the term “subsidiary” shall mean any corporation or other business entity controlled directly or indirectly by the corporation or other business entity in question, and the term
“affiliate” shall mean and include any corporation or other business entity directly or indirectly controlling, controlled by or under common control with the corporation or other business entity in question. 

 

	 	13.	 Change of Control  

 13.1 Change of Control Payments and Benefits. 
 (a)
Extension of Term. In the event of any Change of Control, as defined on Schedule B, the Term of the Executive’s Agreement shall be automatically extended for 24 months from the effective date (the “COC Effective Date”)
of any such Change of Control (the “Extended Term”). 
 (b) Benefit Continuation; Bonus and Salary
Payment. If during the Extended Term, the Executive terminates the Term of his employment for “Good Reason” (as defined below in subclause (b)(iii)) or if the Company terminates the Term of the Executive’s employment other than
for “Cause” (as defined in Section 4.3 of the Agreement): 
 (i) to the extent
available under applicable law and the Company’s benefit programs, the Company shall provide for a period of two years from such termination date all fringe benefits, if any, then provided to the Executive, including, without limitation,
qualified and non-qualified defined benefit, defined contribution, insurance, medical, dental, disability, automobile, financial planning, tax preparation and other benefit plans and programs of the Company as from time to time in effect (or their
successors) in which the Executive participated on the COC Effective Date. To the extent that such benefits, if any, are not available under applicable law or the Company’s benefit programs, or such benefits, if any, would trigger a tax under
Section 409A, the Company shall immediately pay to the Executive in a cash lump sum payment an amount equal to the value (based on the then current cost to the Company) of such benefits (or the remaining eligible portion thereof, as the case
may be) , if any, and shall have no further obligation to continue to provide such benefits, if any, under this Section; 

 (ii) the Company shall immediately pay to the Executive in
a cash lump sum payment two times the sum of (A) the greater of the Executive’s Base Salary in effect on (1) the COC Effective Date or (2) such termination date plus (B) the average amount of the gross bonus amounts earned
by the Executive over the five calendar years preceding such termination. 
 (iii) “Good
Reason” means, for purposes of this subclause (b) only (and not for any other purpose or reason under this Agreement): (A) a material adverse change in the Executive’s job responsibilities; (B) any reduction in the
Executive’s Base Salary; (C) any reduction in the Executive’s annual bonus opportunity; (D) any reduction in the Executive’s aggregate value of benefits, if any; or (E) the Executive’s being required by the Company
to relocate beyond a 50 mile radius of the Executive’s then current residence. 
 (iv) The
Executive shall have no duty to mitigate by seeking other employment or otherwise and no compensation earned by the Executive from other employment, a consultancy or otherwise shall reduce any payments provided for under this Section 13.1.

 (c) Equity Compensation. In the event of any Change of Control, all then unvested stock options and
restricted shares held by the Executive shall immediately vest and be fully exercisable and all restrictions shall lapse. 
 (d) Governing Provision. In the event of any conflict between this Section 13 of the Agreement and any other section or provision of the Agreement, the section which provides the Executive
with the most favored treatment in the event of a Change of Control shall govern and prevail. 
 13.2
Section 280G. 
 (a) If the aggregate of all amounts and benefits (if any) due to the Executive
under this Agreement or any other plan, program, agreement or arrangement of the Company or any of its Affiliates, which, if received by the Executive in full, would constitute “parachute payments” as such term is defined in and under
Section 280G of the Code (collectively, “Change of Control Benefits”), reduced by all Federal, state and local taxes applicable thereto, including the excise tax imposed pursuant to Section 4999 of the Code, is less than the
amount the Executive would receive, after all such applicable taxes, if the Executive received aggregate Change of Control Benefits equal to an amount which is $1.00 less than three times the Executive’s “base amount,” as defined in
and determined under Section 280G of the Code, then such Change of Control Benefits shall be reduced or eliminated to the extent necessary so that the Change of Control Benefits received by the Executive will not constitute parachute payments.
If a reduction in the Change of Control Benefits is necessary, reduction shall occur in the following order unless the Executive elects in writing a different order, subject to the Company’s consent (which consent shall not be unreasonably
withheld): first, a reduction of cash payments not attributable to equity awards which vest on an accelerated basis; second, the cancellation of accelerated vesting of stock awards; third, the reduction of employee benefits, if any; and fourth, a
reduction in any other “parachute payments.” If acceleration of 

 
vesting of stock award compensation is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant of the Executive’s stock awards unless the
Executive elects in writing a different order for cancellation. 
 (b) It is possible that after the
determinations and selections made pursuant to Section 13.2(a) above the Executive will receive Change of Control Benefits that are, in the aggregate, either more or less than the amounts contemplated by Section 13.2(a) above (hereafter
referred to as an “Excess Payment” or “Underpayment”, respectively). If there is an Excess Payment, the Executive shall promptly repay the Company an amount consistent with this Section 13.2. If there is an Underpayment, the
Company shall pay the Executive an amount consistent with this Section 13.2. 
 (c) The determinations
with respect to this Section 13.2 shall be made by an independent auditor (the “Auditor”) compensated by the Company. The Auditor shall be the Company’s regular independent auditor, unless the Executive objects to the use of that
firm, in which event the Auditor shall be a nationally-recognized United States public accounting firm chosen by the Company and approved by the Executive (which approval shall not be unreasonably withheld or delayed). 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written. 
  

					
	 REVLON CONSUMER PRODUCTS CORPORATION

		
	 By:
	 	 /s/ Robert K. Kretzman

		 	 Name:
	 	 Robert K. Kretzman

		 	 Title:
	 	 Executive Vice President and Chief Administrative Officer

		
		 	 /s/ David Kennedy

		 	 David Kennedy

 SCHEDULE A 
 REVLON CODE OF BUSINESS CONDUCT 
 {copy on file} 

 SCHEDULE B 
 CHANGE IN CONTROL 
 A “Change of Control” shall be deemed to have
occurred if the event set forth in any one of the following paragraphs shall have occurred: 
 (i) any Person,
other than one or more Permitted Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this definition a Person will be deemed to have “beneficial ownership” of
all shares that any such Person has the right to acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Voting Stock of the Company;
provided that under such circumstances the Permitted Holders do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of the Company (for the purposes of this
clause (i) and clause (iii), such other Person will be deemed to beneficially own any Voting Stock of a specified corporation held by a parent corporation, if such other Person beneficially owns, directly or indirectly, more than 50% of the
voting power of the Voting Stock of such parent corporation and the Permitted Holders do not have the right or ability by voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of such parent
corporation); 
 (ii) during any period of two consecutive years, individuals who at the beginning of such
period constituted the Board of Directors of the Company (together with any new directors whose election by such Board of Directors or whose nomination for election by the shareholders of the Company was approved by a vote of 66-2/3% of the
directors of the Company then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the Board of Directors
of the Company then in office; 
 (iii) the shareholders of the Company approve a plan of complete liquidation
or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets to an entity in which any Person, other than one or more Permitted Holders is or
becomes the Beneficial Owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that for purposes of this definition a Person will be deemed to have “beneficial ownership” of all shares that any Person has the right to
acquire, whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of securities of such entity representing 50% or more of the combined voting power of such entity’s Voting Stock, and the
Permitted Holders “beneficially own” (as so defined) directly or indirectly, in the aggregate a lesser percentage of the total voting power of the Voting Stock of such entity than such other Person and do not have the right or ability by
voting power, contract or otherwise to elect or designate for election a majority of the Board of Directors of such entity; or 

 (iv) a “Change of Control” shall have occurred under, and as
defined in, the indenture governing Revlon Consumer Products Corporation’s 8 5/8% Senior Subordinated Notes Due 2008 or any other Subordinated Obligations of Revlon Consumer Products Corporation so long as such 8 5/8% Senior Subordinated Notes Due 2008 or Subordinated Obligations are
outstanding. 
 Notwithstanding the foregoing, a “Change of Control” shall not be deemed to have
occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue
to have substantially the same combined voting power of the Voting Stock in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions. 

“Capital Stock” of any Person shall mean any and all shares, interests, rights to purchase, warrants, options, participations
or other equivalents of or interests in (however designated) equity of such Person, including any Preferred Stock, but excluding any debt securities convertible into or exchangeable for such equity. 

“Company” means Revlon, Inc. together with its subsidiaries, including, without limitation, Revlon Consumer Products
Corporation. 
 “8 5/8% Senior Subordinated Notes Due 2008” means Revlon Consumer Products Corporation’s 8 5/8% Senior Subordinated Notes due 2008 and any notes exchanged
therefor. 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time. 

“Permitted Holders” means Ronald O. Perelman (or in the event of his incompetence or death, his estate, heirs, executor,
administrator, committee or other personal representative (collectively, “heirs”)) or any Person controlled, directly or indirectly, by Ronald O. Perelman or his heirs. 

“Person” shall have the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and
14(d) thereof, except that such term shall not include (i) the Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company. 
 “Preferred Stock,” as applied to the Capital Stock of the Company, means Capital Stock of any class or
classes (however designated) which is preferred as to the payment of dividends, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of the Company, over shares of Capital Stock of any other class of the
Company. 

 “Subordinated Obligations” has the meaning ascribed thereto in the indenture for
Revlon Consumer Products Corporation’s 9 1/2%
Senior Notes due 2011. 
 “Voting Stock” means all classes of Capital Stock of the Company then outstanding and
normally entitled to vote in the election of Directors.Credit Agreement

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Exhibit 10.40 

CREDIT AGREEMENT 

THIS CREDIT AGREEMENT (this “Agreement”) is entered into as of December 5, 2011, by and between MAXWELL TECHNOLOGIES, INC.
(“Borrower”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”). 
 RECITALS 

Borrower has requested that Bank extend credit to Borrower as described below, and Bank has agreed to provide such credit to Borrower on
the terms and conditions contained herein. 
 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Bank and Borrower hereby agree as follows: 
 ARTICLE I 

CREDIT TERMS 
 SECTION 1.1. LINE OF CREDIT. 
 (a) Line of Credit. Subject to the terms and
conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including December 5, 2013, not to exceed at any time the aggregate principal amount of Fifteen Million Dollars ($15,000,000) (“Line
of Credit”), the proceeds of which shall be used to finance Borrower’s working capital requirements and general corporate purposes. Borrower’s obligation to repay advances under the Line of Credit shall be evidenced by a promissory
note dated as of even date herewith as amended, restated, modified or supplemented from time to time (“Line of Credit Note”), all terms of which are incorporated herein by this reference. 

(b) Letter of Credit Subfeature. As a subfeature under the Line of Credit, Bank agrees from time to time during the term thereof
to issue or cause an affiliate to issue standby letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, “Letters of Credit”); provided however, that the sum of (i) the aggregate undrawn
amount of all outstanding Letters of Credit (the “Letters of Credit Sublimit”) plus (ii) the Credit Card Services Sublimit shall not at any time exceed One Million Five Hundred Thousand Dollars ($1,500,000.00). The form and substance
of each Letter of Credit shall be subject to approval by Bank, in its sole discretion. Each Letter of Credit shall be issued for a term not to exceed three hundred sixty five (365) days, as designated by Borrower; provided however, that no
Letter of Credit shall have an expiration date subsequent to the maturity date of the Line of Credit. The undrawn amount of all Letters of Credit shall be reserved under the Line of Credit and shall not be available for borrowings thereunder. Each
Letter of Credit shall be subject to the additional terms and conditions of the Letter of Credit agreements, applications and any related documents required by Bank in connection with the issuance thereof. Each drawing paid under a Letter of Credit
shall be deemed an advance under the Line of Credit and shall be repaid by Borrower in accordance with the terms and conditions of this Agreement applicable to such advances; provided however, that if advances under the Line of Credit are not
available, for any reason, at the time any drawing is paid, then Borrower shall immediately pay to Bank the full 

  
 1 

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amount drawn, together with interest thereon from the date such drawing is paid to the date such amount is fully repaid by Borrower, at the rate of interest applicable to advances under the Line
of Credit. In such event Borrower agrees that Bank, in its sole discretion, may debit any account maintained by Borrower with Bank for the amount of any such drawing. 
 (c) Credit Card Services Subfeature. Subject to the terms and conditions of this Agreement, Borrower may request corporate credit cards from Bank (the “Credit Card Services”) for itself
and its respective officers and employees. The sum of (i) the aggregate limit of the corporate credit cards (the “Credit Card Services Sublimit”) plus (ii) the Letters of Credit Sublimit shall not exceed One Million Five Hundred
Thousand Dollars ($1,500,000.00), provided that availability under the Line of Credit shall be reduced by the aggregate limits of the corporate credit cards issued to Borrower and its respective officers and employees. In addition, Bank may, in its
sole reasonable discretion, charge as advances under the Line of Credit any amounts that become due or owing to Bank in connection with the Credit Card Services. The terms and conditions (including repayment and fees) of such Credit Card Services
shall be subject to the terms and conditions of the Bank’s standard forms of application and agreement for the Credit Card Services, which Borrower hereby agrees to execute. 

(d) Borrowing and Repayment. Borrower may from time to time during the term of the Line of Credit borrow, partially or wholly
repay its outstanding borrowings, and reborrow, subject to all of the limitations, terms and conditions contained herein or in the Line of Credit Note; provided however, that the total outstanding borrowings under the Line of Credit shall not at any
time exceed the maximum principal amount available thereunder, as set forth above. On the maturity date of the Line of Credit, or such earlier date as all principal owing under the Line of Credit becomes due and payable by acceleration or otherwise,
all of the advances and other extensions of credit under the Line of Credit shall be immediately due and payable, in cash. 

SECTION 1.2. EQUIPMENT TERM COMMITMENT. 
 (a) Equipment Term Commitment. Subject to the terms and conditions of this Agreement, Bank hereby agrees to make advances to Borrower from time to time up to and including April 30, 2012 not
to exceed the aggregate principal amount of Twelve Million Five Hundred Thousand Dollars ($12,500,000) (“Equipment Term Commitment”). The proceeds of the initial advance under the Equipment Term Commitment shall be used to finance Eligible
Equipment purchased since April 1, 2011 (determined based upon the applicable invoice date of such Eligible Equipment); subsequently, all Eligible Equipment must have been new when purchased by Borrower, except for such Eligible Equipment that
is disclosed in writing to Bank by Borrower, and that Bank in its sole discretion has agreed to finance, prior to being financed by Bank. No Equipment Advance may exceed eighty percent (80%) of the total invoice for Eligible Equipment
(excluding taxes, shipping, warranty charges, freight discounts and installation expenses relating to such Eligible Equipment except to the extent such are allowed to be financed pursuant hereto as Other Equipment). Unless otherwise agreed to by
Bank, not more than twenty percent (20%) of the proceeds of the Equipment Line shall be used to finance Other Equipment. On April 30, 2012, the Equipment Term Commitment shall convert to a term loan, as described more fully below.
Borrower’s obligation to repay advances under the Equipment Term Commitment shall be evidenced by a promissory note dated as of even date herewith as amended, restated, modified or supplemented from time to time (“Equipment Term Commitment
Note”; and together with the Line of Credit Note, collectively, the “Promissory Notes”), all terms of which are incorporated herein by this reference. 

  
 2 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 As used herein, “Eligible Equipment” shall mean the following to the extent it
complies with all of Borrower’s representations and warranties to Bank, is reasonably acceptable to Bank in all respects, is located at 5271 Viewridge Court, Suite 100, San Diego, CA 92123-1604, 9244 Balboa Ave, San Diego, CA 92123, 3912 Calle
Fortunada, Suite B, San Diego, CA 92123, 8644 West Ludlow Dr, Building C, Peoria, AZ 85381, or such other location of which Bank has approved in writing, and is subject to a first priority Lien in favor of Bank: (a) general purpose equipment,
manufacturing equipment, computer equipment, office equipment, test and laboratory equipment, furnishings, and (b) Other Equipment. 
 As used herein, “Other Equipment” shall mean leasehold improvements, intangible property such as computer software and software licenses, prepaid maintenance charges, equipment specifically
designed or manufactured for Borrower, other intangible property, limited use property and other similar property and soft costs approved by Bank, including taxes, shipping, warranty charges, freight discounts and installation expenses. 

(b) Borrowing and Repayment. Borrower may from time to time during the period in which Bank will make advances under the Equipment
Term Commitment borrow and partially or wholly repay its outstanding borrowings, provided that amounts repaid may not be reborrowed, subject to all the limitations, terms and conditions contained herein or in the Equipment Term Commitment Note;
provided however, that the total outstanding borrowings under the Equipment Term Commitment shall not at any time exceed the maximum principal amount available thereunder, as set forth above. Accrued interest on advances made under the Equipment
Term Commitment shall be payable on the last day of each month, commencing on January 31, 2012. The outstanding principal balance of the Equipment Term Commitment and all accrued interest thereon, shall be due and payable in full on
April 30, 2012; provided however, that so long as Borrower is in material compliance on said date with all terms and conditions contained herein and in any other documents evidencing any credit subject hereto, Bank agrees to restructure
repayment of said outstanding principal balance so that principal and interest shall be amortized over three (3) years and shall be repaid in thirty-six (36) installments, as set forth in the Equipment Term Commitment Note. 

(c) Prepayment. Subject to the terms of the Equipment Term Commitment Note, Borrower may prepay principal on the Equipment Term
Commitment at any time, in any amount and without premium or fee. 
 SECTION 1.3. INTEREST/FEES. 

(a) Interest. The outstanding principal balance of advances made under the Line of Credit or the Equipment Term Commitment Line,
and all other amounts owing hereunder, shall bear interest and the amount of each drawing paid under any Letter of Credit shall bear interest from the date such drawing is paid and not reimbursed to the date such amount is fully repaid by Borrower,
at the rate of interest set forth in the Promissory Notes and each other promissory note or other instrument, document or agreement executed in connection herewith or therewith. 

(b) Computation and Payment. Interest shall be computed on the basis of a three hundred sixty (360) day year, actual days
elapsed. Interest shall be payable at the times and place set forth in each promissory note or other instrument or document required hereby. The amount and date of each loan or advance under this Agreement, the Line of Credit Note, the

  
 3 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
Equipment Term Commitment Note, or any other Loan Document, its applicable interest rate, and the amount and date of any repayment shall be noted on Bank’s records, which records shall be
conclusive evidence thereof, absent manifest error; provided, however, any failure by Bank to make any such notation, or any error in any such notation, shall not relieve Borrower or any Subsidiary, any Guarantor hereunder or any general partner or
joint venturer in Borrower if a partnership or joint venture (with each such, Subsidiary, Guarantor, general partner and/or joint venturer referred to herein as a “Third Party Obligor”) of its obligations to repay Bank all amounts payable
by Borrower to Bank under or pursuant to this Agreement or any other Loan Document, when due in accordance with the terms hereof. 
 (c) Unused Commitment Fee. Borrower shall pay to Bank a fee equal to one quarter of one percent (0.25%) per annum (computed on the basis of a three hundred sixty (360) day year, actual days
elapsed) on the average daily unused amount of the Line of Credit, which fee shall be calculated on a quarterly basis by Bank and shall be due and payable by Borrower in arrears on the last day of each calendar quarter. 

(d) Letter of Credit Fees. Borrower shall pay to Bank (i) fees upon the issuance of each Letter of Credit equal to one and
one quarter percent (1.25%) of the face amount thereof; provided that if any such Letter of Credit is cash-secured, such percentage shall be reduced to three quarters of one percent (0.75%) and (ii) fees upon the occurrence of any activity
with respect to any Letter of Credit (including without limitation, the transfer, amendment or cancellation of any Letter of Credit) determined in accordance with Bank’s standard fees and charges then in effect for such activity. 

SECTION 1.4. COLLECTION OF PAYMENTS. Borrower authorizes Bank to collect all principal, interest and fees due under this Agreement by
charging Borrower’s deposit account number 4121736615 with Bank, or any other deposit account maintained by Borrower with Bank, for the full amount thereof. Should there be insufficient funds in any such deposit account to pay all such sums
when due, the full amount of such deficiency shall be immediately due and payable by Borrower. 
 SECTION 1.5. COLLATERAL.

 As security for all Indebtedness and other obligations of Borrower to Bank subject hereto, Borrower hereby grants to Bank
security interests of first priority in those of Borrower’s assets provided in that certain Security Agreement of even date herewith executed by Borrower for the benefit of Bank (the “Collateral”). 

SECTION 1.6. GUARANTIES. The payment and performance of all Indebtedness and other obligations of Borrower to Bank hereunder shall be
guaranteed jointly and severally by all present and future Material Subsidiaries which guaranties shall be secured by unconditional, continuing pledges and security interests in and to all of the assets and properties of such Material Subsidiaries
(any such Material Subsidiary, together with any other guarantors of the Line of Credit, the Equipment Term Commitment and/or any other Indebtedness of Borrower to Bank from time to time, each a “Guarantor” and collectively,
“Guarantors”), as evidenced by and subject to the terms of guaranties in form and substance satisfactory to Bank (the “Guaranty”). Upon the creation or acquisition of any new Material Subsidiary or of any Subsidiary becoming a
Material Subsidiary, Borrower and such Subsidiary shall: (a) promptly notify Bank of the creation or acquisition of such Material Subsidiary, (b) take all such action as may be reasonably

  
 4 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
required by Bank to cause such Material Subsidiary to guarantee the obligations of Borrower hereunder and grant such pledges and security interests in all of its properties and assets to secure
payment and performance of such obligations, and (c) take all such action as may be reasonably required by Bank to grant and pledge to Bank a first-priority security interest in the stock or other equity interests of, and any indebtedness owing
from, such Material Subsidiary. Notwithstanding anything to the contrary contained herein, (i) no Foreign Subsidiary shall be required to provide a Guaranty and (ii) Borrower shall not be required to pledge more than sixty five percent
(65%) of the of the total combined voting power of all classes of stock entitled to vote the shares of capital stock of any such Foreign Subsidiary. 
 As used herein, “Subsidiary” is, as to any person or entity, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other
entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such person or entity. 
 As used herein, “Material Subsidiary” means (i) Maxwell Technologies SA and (ii) as of the last day of each of Borrower’s fiscal quarters, any of Borrower’s Subsidiaries that
has (i) total revenues for the two quarter period ending on such date equal to or greater than two percent (2.0%) of Borrower’s and its consolidated Subsidiaries’ total revenues during such six (6) month period or
(ii) owns or holds assets as of such date equal to or greater than two percent (2.0%) of Borrower’s and its consolidated Subsidiaries’ total assets as of such date. 
 As used herein, “Foreign Subsidiary” means any Subsidiary of Borrower not incorporated or organized under the laws of one of the States or jurisdictions of the United States. 

SECTION 1.7. SUBORDINATION OF DEBT. All Indebtedness and other obligations of Borrower to any other creditor (other than Permitted
Indebtedness defined in Section 5.4 below) shall be subordinated in right of repayment to all Indebtedness and other obligations of Borrower to Bank, as evidenced by and subject to the terms of subordination agreements in form and substance
satisfactory to Bank. 
 ARTICLE II 
 REPRESENTATIONS AND WARRANTIES 
 Borrower makes the following
representations and warranties to Bank, which representations and warranties shall survive the execution of this Agreement and shall continue in full force and effect until the full and final payment, and satisfaction and discharge, of all
obligations of Borrower to Bank subject to this Agreement. 
 SECTION 2.1. LEGAL STATUS. Borrower and each Third Party Obligor
is duly organized and existing and in good standing under the laws of its respective jurisdiction of organization and is qualified or licensed to do business (and is in good standing as a foreign corporation, if applicable) in all jurisdictions in
which such qualification or licensing is required or in which the failure to so qualify or to be so licensed could have a material adverse effect. 

  
 5 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 SECTION 2.2. AUTHORIZATION AND VALIDITY. Borrower and each Third Party Obligor, as
applicable, has full power and authority to execute and deliver this Agreement, the Promissory Notes and each other promissory note, contract, instrument and other document required hereby or at any time hereafter delivered to Bank in connection
herewith (collectively, the “Loan Documents”), in each case, to which it is a party. The Loan Documents have been duly authorized, and upon their execution and delivery in accordance with the provisions hereof will constitute legal, valid
and binding agreements and obligations of Borrower or the party which executes the same, enforceable in accordance with their respective terms (subject to the effect of applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and other similar laws affecting the rights of creditors generally and the effect of the exercise of judicial discretion in accordance with general principles of equity (whether applied by a court of law or of equity)). Borrower and each
Third Party Obligor, as applicable, have rights in and the power to transfer any Collateral, and their respective right, title and interest to the Collateral is free and clear of Liens, adverse claims, and restrictions on transfer or pledge except
for Permitted Liens. Except as set forth on Schedule 2.2 attached hereto, which schedule may be updated from time to time, Borrower is in possession of and has control over all of its assets and properties, and, without limiting the generality of
the foregoing, none of Borrower’s affiliates is in possession or control of any such assets or property, or collects, services or administers Borrower’s contract rights, accounts receivable or any proceeds thereof. Except as set forth on
Schedule 2.2 attached hereto, which schedule may be updated from time to time, Borrower and each Third Party Obligor are the sole owners of their respective intellectual property, except for licenses granted in the ordinary course of business for
the use of the intellectual property of Borrower that are either non-exclusive or that may be exclusive in one or more respects as to a particular field of use, geographic area or limited period of time that do not result in a legal transfer of
title to, or all substantial rights in, the licensed property under applicable law. Except as set forth on Schedule 2.2 attached hereto, which schedule may be updated from time to time, each of the copyrights, trademarks and patents is valid and
enforceable, and no material part of Borrower’s or any Third Party Obligor’s intellectual property has been judged invalid or unenforceable, in whole or in part, and no claim has been made to Borrower or any Third Party Obligor that any
part of its intellectual property violates the rights of any third party except to the extent such claim could not reasonably be expected to cause a material adverse effect. 
 SECTION 2.3. NO VIOLATION. The execution, delivery and performance by Borrower and each Third Party Obligor of the Loan Documents to which it is a party do not and will not violate or contravene any
provision of Borrower’s or any Third Party Obligor’s articles or certificate of incorporation, memorandum of association, bylaws, operating agreement or other constituting or governing documents, in each case, as currently in effect and as
amended or restated from time to time. The execution, delivery and performance by Borrower and each Third Party Obligor of the Loan Documents to which it is a party do not and will not violate any provision of any law or regulation, or result in any
breach of or default under any contract, obligation, indenture or other instrument to which Borrower or any Third Party Obligor is a party or by which Borrower or any Third Party Obligor or their respective properties may be bound. 

SECTION 2.4. LITIGATION. There are no pending, or to the best of Borrower’s knowledge threatened, actions, claims, investigations,
suits or proceedings by or before any governmental authority, arbitrator, court or administrative agency which could have a material adverse effect on the financial condition or operation of Borrower or any Third Party Obligor other than those set
forth on Schedule 2.4 attached hereto, which schedule may be updated from time to time. 

  
 6 

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 SECTION 2.5. CORRECTNESS OF FINANCIAL STATEMENT; FULL DISCLOSURE. 

(a) The annual financial statements of Borrower for the 2010 fiscal year, and all interim financial statements delivered to Bank since
said date, true copies of which have been delivered by Borrower to Bank prior to the date hereof, (a) are complete and correct and present fairly the financial condition of Borrower in all material respects, (b) disclose all liabilities of
Borrower that are required to be reflected or reserved against under generally accepted accounting principles, whether liquidated or unliquidated, fixed or contingent, and (c) have been prepared in accordance with generally accepted accounting
principles consistently applied. Since the dates of such financial statements there has been no material adverse change in the financial condition of Borrower, nor has Borrower mortgaged, pledged, granted a security interest in or otherwise
encumbered any of its assets or properties except for Permitted Liens. 
 (b) No representation, warranty or other statement in
any certificate or written statement given to Bank by or on behalf of Borrower or any Third Party Obligor, as of the date such representation, warranty, or other statement was made or deemed made and when taken together with all other
representations, warranties or other statements, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements, in the light of the circumstances under
which they were made, not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or
periods covered by such projections and forecasts may differ from the projected or forecasted results). 
 SECTION 2.6. INCOME
TAX RETURNS. Borrower has no knowledge of any pending assessments or adjustments of its or any Third Party Obligor’s income tax payable with respect to any year. Borrower and each Third Party Obligor has timely filed or has obtained extensions
for filing all required federal, and all material foreign, state and local, tax returns and reports, and Borrower and each Third Party Obligor has timely paid all federal and all material foreign, state and local taxes, assessments, deposits and
contributions owed by Borrower or such Third Party Obligor, except as set forth on Schedule 2.6 attached hereto, which schedule may be updated from time to time. 
 SECTION 2.7. NO SUBORDINATION. There is no agreement, indenture, contract or instrument to which Borrower or any Third Party Obligor is a party or by which Borrower or any Third Party Obligor may be bound
that requires the subordination in right of payment of any of Borrower’s or any Third Party Obligor’s obligations subject to this Agreement to any other obligation of Borrower or such Third Party Obligor. 

SECTION 2.8. PERMITS, FRANCHISES. Borrower and each Third Party Obligor possesses, and will hereafter possess, all permits, consents,
approvals, franchises and licenses required and rights to all trademarks, trade names, patents, and fictitious names, if any, necessary to enable it to conduct the business in which it is now engaged in compliance with applicable law. 

SECTION 2.9. ERISA. Borrower and each Third Party Obligor is in compliance in all material respects with all applicable provisions of the
Employee Retirement Income Security Act of 1974, as amended or recodified from time to time (“ERISA”); Neither Borrower nor any Third 

  
 7 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
Party Obligor has violated any provision of any defined employee pension benefit plan (as defined in ERISA) maintained or contributed to by Borrower or a Third Party Obligor (each, a
“Plan”); no Reportable Event as defined in ERISA has occurred and is continuing with respect to any Plan initiated by Borrower; Borrower and each Third Party Obligor has met its minimum funding requirements under ERISA with respect to each
Plan; and each Plan will be able to fulfill its benefit obligations as they come due in accordance with the Plan documents and under generally accepted accounting principles. 
 SECTION 2.10. OTHER OBLIGATIONS. Neither Borrower nor any Third Party Obligor is in default on any obligation for borrowed money, any purchase money obligation or any other material lease, commitment,
contract, instrument or obligation the effect of which could reasonably be expected to have a material adverse effect on the financial condition of Borrower or any Third Party Obligor. 

SECTION 2.11. ENVIRONMENTAL MATTERS. Except as disclosed on Schedule 2.11 attached hereto, which schedule may be updated from time to
time, Borrower and each Third Party Obligor is in compliance in all material respects with all applicable federal or state environmental, hazardous waste, health and safety statutes, and any rules or regulations adopted pursuant thereto, which
govern or affect any of Borrower’s or such Third Party Obligor’s operations and/or properties, including without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act of 1976, and the Federal Toxic Substances Control Act, as any of the same may be amended, modified or supplemented from time to time. None of the operations of Borrower
or any Third Party Obligor is the subject of any federal or state investigation evaluating whether any remedial action involving a material expenditure is needed to respond to a release of any toxic or hazardous waste or substance into the
environment. Neither Borrower nor any Third Party Obligor has any material contingent liability in connection with any release of any toxic or hazardous waste or substance into the environment. 

SECTION 2.12 REGULATORY COMPLIANCE. 
 (a) Neither Borrower nor any Third Party Obligor is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act. Borrower is
not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor Standards Act.
Neither Borrower nor any Third Party Obligor has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect. Borrower and each Third Party Obligor has obtained all consents,
approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue their respective businesses as currently conducted. 

(b) Borrower and each Third Party Obligor is in compliance with (i) the Trading with the Enemy Act, as amended, and each of the
foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (ii) the Uniting And Strengthening America By
Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001) and the USA PATRIOT Improvement and Reauthorization Act of 2005 (Pub. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
L. 109-177) (the “Patriot Act”). No part of the proceeds of the Line of Credit, the Equipment Term Commitment Line or any other extension of credit from Bank from time to time, will be
used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or
direct business or obtain any improper advantage, in violation of the United Stats Foreign Corrupt Practices Act of 1977, as amended. 
 (c) Neither Borrower nor any Third Party Obligor (i) is a person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of
September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001), (ii) engages in any dealings or transactions prohibited by Section 2 of
such executive order, or is otherwise associated with any such person in any manner violative of Section 2, or (iii) is a person on the list of Specially Designated Nationals and Blocked Persons or subject to the limitations or
prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order. 

ARTICLE III 

CONDITIONS 

SECTION 3.1. CONDITIONS OF INITIAL EXTENSION OF CREDIT. The obligation of Bank to extend any credit contemplated by this Agreement is
subject to the fulfillment to Bank’s satisfaction of all of the following conditions: 
 (a) Approval of Bank
Counsel. All legal matters incidental to the extension of credit by Bank shall be satisfactory to Bank’s counsel. 

(b) Documentation. Bank shall have received, in form and substance reasonably satisfactory to Bank, each of the following, duly
executed: 
  

	 	(i)	This Agreement, the Line of Credit Note, the Equipment Term Commitment Note and each other promissory note or other instrument or document required hereby.

  

	 	(ii)	Certificates of Incumbency. 

  

	 	(iii)	Corporate Resolutions: Borrowing. 

  

	 	(iv)	Security Agreement: Borrower. 

  

	 	(v)	Such landlord and bailee waivers as Bank may require. 

  

	 	(vi)	An opinion of counsel to Borrower covering such matters as may be required by Bank. 

 

	 	(vii)	Account control agreements, in favor of and in form and substance satisfactory to, Bank for any accounts maintained outside of Bank. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

	 	(viii)	Such other documents as Bank may require under any other Section of this Agreement. 

(c) Financial Condition. There shall have been no material adverse change, as determined by Bank, in the financial condition or
business of Borrower or any Third Party Obligor hereunder, nor any material decline, as determined by Bank, in the market value of any collateral required hereunder or a substantial or material portion of the assets of Borrower or any such Third
Party Obligor. 
 (d) Insurance. Borrower shall have delivered to Bank evidence of insurance coverage on all
Borrower’s property, in form, substance, amounts, covering risks and issued by companies satisfactory to Bank, and where required by Bank, with loss payable endorsements in favor of Bank. 

(e) Payment of Fees. Borrower shall have paid to Bank the fees and expenses, then due as specified in the Loan Documents.

 (f) Financing Statement. Borrower hereby authorizes Bank to file a UCC National Form Financing Statement, identifying
Bank as the secured party, and Borrower as the debtor. 
 SECTION 3.2. CONDITIONS OF EACH EXTENSION OF CREDIT. The obligation of
Bank to make each extension of credit requested by Borrower hereunder shall be subject to the fulfillment to Bank’s satisfaction of each of the following conditions: 
 (a) Compliance. The representations and warranties contained herein and in each of the other Loan Documents shall be true, correct and complete in all material respects on and as of the date of the
signing of this Agreement and on the date of each extension of credit by Bank pursuant hereto, with the same effect as though such representations and warranties had been made on and as of each such date, and on each such date, no Event of Default
as defined herein, and no condition, event or act which with the giving of notice or the passage of time or both would constitute an Event of Default, shall have occurred and be continuing or shall exist. 

(b) Documentation. Bank shall have received all additional documents which may be required in connection with such extension of
credit. 
 SECTION 3.3. CONDITIONS SUBSEQUENT. Bank shall have received, in form and substance reasonably satisfactory to Bank,
each of the following, duly executed: 
 (a) By no later than December 31, 2011, a landlord waiver in respect of
Borrower’s leased location located at 8644 West Ludlow Drive, Building C, Peoria, Arizona 85381 
 (b) By no later than
January 31, 2012, a pledge of sixty five percent (65%) of the Shares of Maxwell Technologies SA. 
 ARTICLE IV

 AFFIRMATIVE COVENANTS 
 Borrower covenants that so long as Bank remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of

  
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Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of all obligations of Borrower subject hereto, Borrower shall, unless Bank otherwise consents in
writing: 
 SECTION 4.1. PUNCTUAL PAYMENTS. Punctually pay all principal, interest, fees or other liabilities due under any of
the Loan Documents at the times and place and in the manner specified therein, and immediately upon demand by Bank, the amount by which the outstanding principal balance of any credit subject hereto at any time exceeds any limitation on borrowings
applicable thereto. 
 SECTION 4.2. ACCOUNTING RECORDS. Maintain adequate books and records in accordance with generally
accepted accounting principles consistently applied, and permit, and cause each Third Party Obligor to permit, any representative of Bank, at any reasonable time, upon reasonable prior notice unless and Event of Default has occurred and is
continuing, to inspect, audit and examine such books and records, to make copies of the same, and to inspect the properties of Borrower and each Third Party Obligor. 
 SECTION 4.3. FINANCIAL STATEMENTS. Provide to Bank all of the following, in form and detail satisfactory to Bank: 
 (a) as soon as available, but no later than the earlier of (i) five (5) days after filing with the Securities Exchange Commission or (ii) ninety (90) days after the end of each fiscal
year of Borrower, Borrower’s consolidated audited financial statements (to include a balance sheet, income statement, statement of cash flows and footnotes) prepared in accordance with GAAP consistently applied together with an unqualified
opinion with respect to the financial statements prepared by an independent certified public accounting firm reasonably acceptable to Bank and Form 10-K; 
 (b) as soon as available, but no later than the earlier of (i) five (5) days after filing with the Securities Exchange Commission or (ii) forty-five (45) days after the end of each
fiscal quarter of Borrower, Borrower’s consolidated and consolidating financial statements (to include a balance sheet, income statement, statement of cash flows) prepared in accordance with GAAP consistently applied (other than being subject
to normal year-end adjustments) and Form 10-Q; 
 (c) contemporaneously with each annual and quarterly financial statement of
Borrower required hereby, a certificate of the president or chief financial officer of Borrower, in form and substance reasonably satisfactory to Bank, that said financial statements are accurate and that there exists no Event of Default nor any
condition, act or event which with the giving of notice or the passage of time or both would constitute an Event of Default; 

(d) not later than forty five (45) days after and as of the end of each quarter, an aged listing of accounts receivable and accounts
payable, a reconciliation of accounts, and a statement with respect to the then existing obligations of Borrower under that certain Maxwell Technologies Guaranty dated March 10, 2011 by and between the Borrower and Neuman Aluminum Impact
Extrusion, Inc., and immediately upon each request from Bank, a list of the names and addresses of all Borrower’s account debtors; 

  
 11 

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 (e) not later than thirty (30) days after and as of the end of each fiscal year,
annual projections approved by Parent’s board of directors; and 
 (f) from time to time such other information as Bank may
reasonably request. 
 SECTION 4.4. COMPLIANCE. Preserve and maintain, and cause each Third Party Obligor to perform and
maintain, all licenses, permits, governmental approvals, rights, privileges and franchises necessary for the conduct of its business; and comply with the provisions of all documents pursuant to which Borrower or any Third Party Obligor is organized
and/or which govern Borrower’s or such Third Party Obligor’s continued existence and with the requirements of all laws, rules, regulations and orders of any governmental authority applicable to Borrower, any Third Party Obligor, and/or
their respective business to the extent the failure to maintain or comply with such items could reasonably be expected to have a material adverse effect on the financial condition of Borrower or any Third Party Obligor. 

SECTION 4.5. INSURANCE. Maintain and keep in force, for each business in which Borrower or any Third Party Obligor is engaged, insurance
of the types and in amounts customarily carried in similar lines of business, including but not limited to fire, extended coverage, public liability, flood, property damage and workers’ compensation, with all such insurance carried with
companies and in amounts reasonably satisfactory to Bank, and deliver to Bank from time to time at Bank’s request schedules setting forth all insurance then in effect. 
 SECTION 4.6. FACILITIES. Keep all properties useful or necessary to Borrower’s or any Third Party Obligor’s business in good repair and condition subject to ordinary wear and tear, and from time
to time make necessary repairs, renewals and replacements thereto so that such properties shall be fully and efficiently preserved and maintained. 
 SECTION 4.7. TAXES AND OTHER LIABILITIES. Pay and discharge, and cause each Third Party Obligor to pay and discharge, when due any and all indebtedness, obligations, assessments and taxes, both real or
personal, including without limitation federal and state income taxes and state and local property taxes and assessments, except (a) such as Borrower may in good faith contest or as to which a bona fide dispute may arise, and (b) for which
Borrower has made provision, to Bank’s reasonable satisfaction, for eventual payment thereof in the event Borrower is obligated to make such payment. 
 SECTION 4.8. LITIGATION. Promptly give notice in writing to Bank of any litigation pending or threatened against Borrower or any Third Party Obligor with a claim in excess of Two Hundred Fifty Thousand
Dollars ($250,000.00). 
 SECTION 4.9. FINANCIAL CONDITION. Maintain Borrower’s financial condition as follows using
generally accepted accounting principles consistently applied and used consistently with prior practices (except to the extent modified by the definitions herein): 
 (a) Minimum Liquidity Coverage Ratio not less than 2.0 to 1.0 at any time measured as of the end of each fiscal quarter, with “Minimum Liquidity Coverage Ratio” defined as the ratio of
(i) the sum of (1) Borrower’s domestic unrestricted cash and cash equivalents on deposit with Bank and/or subject to control agreements in favor of Bank, plus (2) thirty percent (30%) of net accounts receivable billed by
Borrower, provided that: (x) no such account receivable is more than (90) days past invoice date; and (y) the aggregate amount of such net domestic 

  
 12 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
accounts receivable shall not comprise more than fifty percent (50%) of the numerator of the Minimum Liquidity Coverage Ratio, and divided by (ii) outstanding advances under the Line of
Credit (including the Letters of Credit Sublimit and Credit Card Sublimit). 
 (b) Quick Ratio not less than 1.125 to 1.000 at
any time, measured as of the end of each fiscal quarter, with “Quick Ratio” defined as the ratio of (i) the sum of (1) consolidated unrestricted cash plus (2) net consolidated accounts receivable, and (ii) divided by
the sum of (1) total consolidated current liabilities plus (2) outstanding advances under the Line of Credit (including the Letters of Credit Sublimit and Credit Card Sublimit). 

(c) EBITDA not less than (i) Three Million Two Hundred Fifty Thousand Dollars ($3,250,000.00) as of the fiscal quarters ending
September 30, 2011 and December 31, 2011, and (ii) Four Million Dollars ($4,000,000.00) as of each quarter end thereafter; with “EBITDA” defined as the sum net profit before tax plus interest expense (net of capitalized
interest expense), depreciation expense, amortization expense and non-cash stock compensation expense, each on a consolidated basis. 
 (d) Net consolidated income after taxes not less than One Dollar ($1.00) on an annual basis, determined as of each fiscal year end, beginning with the 2011 fiscal year. 

SECTION 4.10. NOTICE TO BANK. Promptly (but in no event more than five (5) business days after the occurrence of each such event or
matter) give written notice to Bank in reasonable detail of: (a) the occurrence of any Event of Default, or any condition, event or act which with the giving of notice or the passage of time or both would constitute an Event of Default;
(b) any change in the name or the organizational structure of Borrower or any Third Party Obligor; (c) the occurrence and nature of any Reportable Event or Prohibited Transaction, each as defined in ERISA, or any funding deficiency with
respect to any Plan; or (d) any termination or cancellation of any insurance policy which Borrower is required to maintain, or any uninsured or partially uninsured loss through liability or property damage, or through fire, theft or any other
cause affecting Borrower’s or any Third Party Obligor’s property in excess of an aggregate of Two Hundred Fifty Thousand Dollars ($250,000.00). 
 SECTION 4.11 ACCOUNTS. Maintain its and its domestic Subsidiaries’ primary deposit, operating and investment accounts with Bank or Bank’s affiliates (subject to control agreements reasonably
acceptable to Bank) which accounts shall represent at least fifty percent (50%) of the dollar value of Borrower’s accounts. For any deposit, operating, investment or other account maintained at any time at a domestic financial institution
outside of Bank, Borrower shall cause the applicable bank or financial institution at or with which such account is maintained to execute a control agreement in favor of, and in form and substance reasonably satisfactory to, Bank. The provisions of
the preceding sentence shall not apply to (i) deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees identified to Bank by Borrower as such,
(ii) accounts with balances not to exceed Twenty Five Thousand Dollars ($25,000) individually or One Hundred Thousand Dollars ($100,000) in the aggregate at any time, or (iii) accounts maintained by Borrower or its Subsidiaries with
financial institutions outside of the United States not to exceed One Hundred Thousand Dollars ($100,000) in the aggregate at any time. 
 SECTION 4.12 COLLATERAL AUDIT. Permit Bank to perform audits of the Collateral at Borrower’s sole cost and expense, which collateral audits will be conducted at Bank’s request;

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 
provided, that, so long as no Event of Default has occurred and is continuing, Borrower shall not be required to pay for more than one (1) collateral audit in any calendar year at a cost of
not more than Ten Thousand Dollars ($10,000). 
 SECTION 4.12 LANDLORD WAIVERS; BAILEE WAIVERS. Borrower shall provide at least
thirty (30) days’ prior written notice to Bank if Borrower intends to add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000)
in assets or property of Borrower); and shall deliver to Bank, a bailee waiver or landlord waiver, as applicable, in favor of, and in form and substance reasonably satisfactory to, Bank prior to the addition of any such new offices or business
locations. 
 ARTICLE V 
 NEGATIVE COVENANTS 
 Borrower further covenants that so long as Bank
remains committed to extend credit to Borrower pursuant hereto, or any liabilities (whether direct or contingent, liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents remain outstanding, and until payment in full of all
obligations of Borrower subject hereto, Borrower will not, and will not permit any Third Party Obligor to, without Bank’s prior written consent: 
 SECTION 5.1. USE OF FUNDS. Use any of the proceeds of any credit extended hereunder except for the purposes stated in Article I hereof. 

SECTION 5.2. CAPITAL EXPENDITURES. Make any additional investment in fixed assets in any fiscal year in excess of an aggregate of Twenty
Five Million Dollars ($25,000,000) plus any unused amount available from the immediately preceding year from and after January 1, 2012. 
 SECTION 5.3. INTENTIONALLY OMITTED. 
 SECTION 5.4. OTHER INDEBTEDNESS. Create,
incur, assume or permit to exist any Indebtedness, except Permitted Indebtedness. 
 As used herein, “Indebtedness”
shall be construed in its most comprehensive sense and shall include any and all advances, debts, obligations and liabilities of Borrower, or any of them, heretofore, now or hereafter made, incurred or created, whether voluntary or involuntary and
however arising, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, including under any swap, derivative, foreign exchange, hedge, deposit, treasury management or other similar transaction or
arrangement, and whether Borrower may be liable individually or jointly with others, or whether recovery upon such Indebtedness may be or hereafter becomes unenforceable. 
 As used herein, “Permitted Indebtedness” shall mean: (i) Indebtedness of Borrower in favor of Bank, whether arising under this Credit Agreement, the Line of Credit Note, the Equipment Term
Commitment Note or other instrument or documents executed in connection therewith or otherwise; (ii) Indebtedness of Borrower existing as of the date hereof and set forth on Schedule 5.2 attached hereto; (iii) Indebtedness of Borrower
secured by a Lien described in clause (vii) of the definition of Permitted Liens in Section 5.9 below, provided (A) such 

  
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Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness, and (B) such Indebtedness does not exceed Two Million Dollars
($2,000,000) in the aggregate at any time; (iv) Indebtedness of Maxwell Technologies SA, not to exceed Ten Million Dollars ($10,000,000) outstanding at any time; (v) Indebtedness of a Borrower or Third Party Obligor to another Borrower or
Third Party Obligor not to exceed Ten Million Dollars ($10,000,000) at any time, (vi) additional unsecured Indebtedness of Borrower in an aggregate principal amount not to exceed Two Million Dollars ($2,000,000) outstanding at any time;
(vi) extensions, refinancings, modifications, amendments and restatements of any item of Permitted Indebtedness described in (i) through (vi) above; and (vii) any other Indebtedness permitted in writing by Bank. 

SECTION 5.5. MERGER, CONSOLIDATION, TRANSFER OF ASSETS. (a) Merge into or consolidate with any other entity (provided that
(i) a Subsidiary may merge with and into another Subsidiary and (ii) a Subsidiary may merge with Borrower, so long as Borrower is the surviving entity), other than in connection with a Permitted Acquisition; (b) engage in any business
other than the businesses of Borrower and its Subsidiaries as conducted as of the date hereof or businesses reasonably related or incidental thereto; (c) acquire all or substantially all of the assets of any other entity, other than in
connection with a Permitted Acquisition; nor (d) sell, lease, transfer or otherwise dispose of all or a substantial or material portion of Borrower’s assets except in the ordinary course of its business, other than Permitted Dispositions.

 As used herein: 

“Permitted Acquisition” means any transaction or series of related transactions for the purpose of or resulting, directly or
indirectly, in the acquisition of all or substantially all of the assets or stock (or other equity interests) of a business entity, or of all or substantially all of any business or division of a business entity, or a merger or consolidation or any
other combination with another business entity so long as: (a) Borrower or its Subsidiary must be the surviving entity of any such acquisition, merger or consolidation to which it is a party, (b) the total cash and non-cash consideration
(including the fair market value of all equity interests issued or transferred to the sellers thereof, all earnouts, holdbacks and other contingent payment obligations to the sellers thereof, and all assumptions of debt, liabilities and other
obligations in connection therewith) paid by or on behalf of Borrower and its Subsidiaries for any such Permitted Acquisition shall not exceed $10,000,000 individually or exceed $30,000,000 in the aggregate over the term of this Agreement with
respect to all Permitted Acquisitions, (c) any such acquired business entity shall comply with the requirements of Section 1.6 in connection with the consummation of such Permitted Acquisition, if applicable, (d) the business,
division or assets acquired are for use in, or the business acquired is engaged in, the businesses of Borrower and its Subsidiaries as conducted as of the date hereof or businesses reasonably related or incidental thereto, (e) immediately
before and after giving effect to such Permitted Acquisition, no Event of Default shall exist, (f) immediately after giving effect to such Permitted Acquisition, Borrower is in pro forma compliance with all financial covenants set forth in
Section 4.9 hereof, and (g) Borrower shall have delivered to Bank, prior to the date of the consummation of each Permitted Acquisition, a certificate of an officer of Borrower certifying that all the requirements in clauses
(a) through (f) above have been met or will be satisfied on or prior to the consummation of such Permitted Acquisition, which certificate shall attach copies of all of the documents, instruments, certificates and/or agreements (including,
without limitation, all supporting schedules and calculations), all in substantially final form, necessary to, or delivered in connection with, such Permitted Acquisition. 

  
 15 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 “Permitted Dispositions” means: (a) dispositions of obsolete, damaged,
worn out or surplus property in the ordinary course of business, and (b) any other dispositions provided that (i) at the time of such disposition no Event of Default exists or would result from such disposition, and (ii) the aggregate
fair market value of all property disposed of in reliance on this clause (b) over the term of this Agreement shall not exceed Ten Million Dollars ($10,000,000). 
 SECTION 5.6. GUARANTIES. Guarantee or become liable in any way as surety, endorser, accommodation endorser or otherwise for, nor pledge or hypothecate any assets of Borrower or any of its Subsidiaries as
security for, any liabilities or obligations of any other person or entity, except any of the foregoing in favor of Bank or: 

(a) those resulting from endorsement of negotiable instruments for collection in the ordinary course of business; 

(b) those existing on the date hereof and as set forth on Schedule 5.6 attached hereto; 

(c) those arising with respect to customary indemnification obligations incurred in the ordinary course of business (including, without
limitation, customary indemnification provisions issued by Borrower or any of its Subsidiaries to officers and directors of Borrower and its Subsidiaries); provided that the aggregate uninsured and unpaid amount thereof does not exceed One Million
Dollars ($1,000,000) in the aggregate at any time without the Bank’s consent, which consent shall not be unreasonably withheld; 
 (d) those incurred in the ordinary course of business with respect to surety and appeal bonds, performance and return-of-money bonds, letters of credit and other similar obligations; provided that the
aggregate amount thereof does not exceed One Million Dollars ($1,000,000) in the aggregate at any time; 
 (e) any guaranty by a
Third Party Obligor of an obligation of (i) Borrower or another Third Party Obligor, to the extent such underlying obligation is permitted under this Agreement; provided that the aggregate amount thereof does not exceed Five Hundred Thousand
Dollars ($500,000) in the aggregate at any time; 
 (f) any other contingent obligation not permitted by clauses
(a) through (e) above, so long as any such other contingent obligations, in the aggregate at any time outstanding, do not exceed One Hundred Thousand Dollars ($100,000). 

SECTION 5.7. LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to or investments in any person or entity, except Permitted
Indebtedness and the following: 
 (a) Borrower and its Subsidiaries may make and own investments in cash or cash equivalents in
accounts which are subject to control agreements in form and substance reasonably satisfactory to, and in favor of, Bank; 
 (b)
Borrower and its Subsidiaries may make loans and advances to employees or Borrower or its Subsidiaries for moving, entertainment, travel and other similar expenses in the ordinary course of business not to exceed Twenty Five Thousand Dollars
($25,000) in the aggregate at any time outstanding. 

  
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 SECTION 5.8. DIVIDENDS, DISTRIBUTIONS. Declare or pay any dividend or distribution
either in cash, stock or any other property on Borrower’s stock now or hereafter outstanding, nor redeem, retire, repurchase or otherwise acquire any shares of any class of Borrower’s stock now or hereafter outstanding except pursuant to
existing employee compensation plans; provided that the aggregate amount thereof does not exceed Seven Hundred Fifty Thousand Dollars ($750,000) in any fiscal year. 
 SECTION 5.9. PLEDGE OF ASSETS. Mortgage, pledge, grant or permit to exist a security interest in, or lien upon, all or any portion of Borrower’s assets now owned or hereafter acquired, except for
Permitted Liens. 
 As used herein, “Lien” shall mean, with respect to any property, any security interest, mortgage,
pledge, lien, claim, charge or other encumbrance in, of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement, capital lease or other title retention
agreement, or any agreement to provide any of the foregoing, and the filing of any financing statement or similar instrument under the Uniform Commercial Code or comparable law of any jurisdiction. 

As used herein, “Permitted Liens” shall mean and include: (i) Liens in favor of Bank; (ii) Liens on the assets of
Borrower existing as of the date hereof as set forth on Schedule 5.9 attached hereto; (iii) Liens on the assets of Maxwell Technologies SA existing on the date hereof as set forth on Schedule 5.9 attached hereto; (iv) Liens of carriers,
warehousemen, mechanics, materialmen, vendors, landlords and similar liens incurred in the ordinary course of business for sums not overdue or being contested in good faith, provided provision is made to the reasonable satisfaction of Bank for the
eventual payment thereof if subsequently found payable; (v) leases or subleases and non-exclusive licenses or sublicenses granted in the ordinary course of Borrower’s business; (vi) Liens upon or in any equipment which was acquired or
held by Borrower or any of its Subsidiaries to secure the purchase price of such equipment (and any accessions, attachments, replacements or improvements thereon) or Indebtedness incurred solely for the purpose of financing the acquisition of such
equipment (and any accessions, attachments, replacements or improvements thereon); (vii) Liens existing on any equipment (and any accessions, attachments, replacements or improvements thereon) at the time of its acquisition, provided that
the Lien is confined solely to the property so acquired and any accessions, attachments, replacements or improvements thereon, and the proceeds of such equipment (and any accessions, attachments, replacements or improvements thereon);
(viii) provided that Borrower complies with Section 4.11 hereof, bankers’ Liens, rights of setoff and similar Liens incurred on deposits or securities accounts made in the ordinary course of business to the extent Bank has a security
interest in such accounts; (ix) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default; (x) Liens for taxes not at the time delinquent or thereafter payable without penalty or being
contested in good faith, provided provision is made to the reasonable satisfaction of Bank for the eventual payment thereof if subsequently found payable; (xi) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payments of customs duties in connection with the importation of goods; and (xii) any other Liens permitted in writing by Bank. 

  
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 SECTION 5.10. CHANGE IN MANAGEMENT. Permit any change in the Borrower’s Chief
Financial Officer or Chief Executive Officer unless a replacement for such officer, reasonably acceptable to Bank, is approved by Borrower’s Board of Directors and engaged by Borrower within ninety (90) days of such change. 

SECTION 5.11 AGREEMENTS NOT TO ENCUMBER. Agree with any person other than Bank not to grant or allow to exist a lien upon any of its or
any of its Subsidiaries’ property, or covenant to any other person that Borrower or any Subsidiary in the future will refrain from creating, incurring, assuming or allowing any lien with respect to any of Borrower’s or any
Subsidiaries’ property other than with respect to documents executed in connection with Permitted Liens. 
 SECTION 5.12
TRANSACTIONS WITH AFFILIATES. Directly or indirectly enter into or permit to exist any material transaction with any affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable
terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated person. 
 SECTION 5.13 COMPLIANCE. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its or their
important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any credit extension for that purpose; fail to meet the minimum
funding requirements of ERISA with respect to any Plan, permit a reportable event (as defined in Section 4043 of ERISA) other than an event in relation to which the requirement to give notice of that event is waived by any regulation or
non-exempt prohibited transaction (within the meaning of Section 406 of ERISA), to occur with respect to any Plan; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the failure to comply or
violation could reasonably be expected to have a material adverse effect; withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any Plan which could reasonably be
expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency that could reasonably be expected to have a material adverse effect. 

ARTICLE VI 

EVENTS OF DEFAULT 
 SECTION 6.1. The occurrence of any of the following shall constitute an “Event of Default” under this Agreement: 
 (a) Borrower shall fail to pay when due any principal, interest, fees or other amounts payable under any of the Loan Documents. 
 (b) Any financial statement or certificate furnished to Bank in connection with, or any representation or warranty made by Borrower or any other party under this Agreement or any other Loan Document shall
prove to be incorrect, false or misleading in any material respect when furnished or made. 

  
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 CONFIDENTIAL TREATMENT REQUESTED 

 

 (c) Any default in the performance of or compliance with any obligation, agreement or
other provision contained herein or in any other Loan Document (other than those specifically described as an “Event of Default” in this section 6.1), and with respect to any such default that by its nature can be cured, such default shall
continue for a period of thirty (30) days after the earlier to occur of (i) the date on which Borrower knew or reasonably should have known of the existence of such default or (ii) delivery by Bank of notice of such default.

 (d) Any default in the payment or performance of any material obligation, or any defined event of default, under the terms of
any material contract, including, without limitation, that certain Deferred Prosecution Agreement (case Mp. ‘11CR0329JM) filed on January 31, 2011 with the Clerk of the U.S. District Court for the Southern District of California,
instrument or document (other than any of the Loan Documents) pursuant to which any Third Party Obligor has incurred any debt or other liability to any person or entity, including Bank. 

(e) Borrower or any Third Party Obligor shall become insolvent, or shall suffer or consent to or apply for the appointment of a receiver,
trustee, custodian or liquidator of itself or any of its property, or shall generally fail to pay its debts as they become due, or shall make a general assignment for the benefit of creditors; Borrower or any Third Party Obligor shall file a
voluntary petition in bankruptcy, or seeking reorganization, in order to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United States Code, as amended or recodified from time to
time (“Bankruptcy Code”), or under any state or federal law granting relief to debtors, whether now or hereafter in effect; or Borrower or any Third Party Obligor shall file an answer admitting the jurisdiction of the court and the
material allegations of any involuntary petition; or Borrower or any Third Party Obligor shall be adjudicated a bankrupt, or an order for relief shall be entered against Borrower or any Third Party Obligor by any court of competent jurisdiction
under the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors. 
 (f) The filing of a notice of judgment lien in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) against Borrower or any Third Party Obligor which is not released within thirty
(30) days of filing; or the recording of any abstract of judgment in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) against Borrower or any Third Party Obligor in any county in which Borrower or such Third Party Obligor
has an interest in real property which is not released within thirty (30) days of filing; or the service of a notice of levy and/or of a writ of attachment or execution, or other like process, against the assets of Borrower or any Third Party
Obligor which is not released within thirty (30) days; or the entry of a judgment against Borrower or any Third Party Obligor for an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000) which is not satisfied within thirty
(30) days of entry; or any involuntary petition or proceeding pursuant to the Bankruptcy Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors is filed or commenced against Borrower
or any Third Party Obligor which is not dismissed within thirty (30) days of filing. 
 (g) There shall exist or occur any
event or condition that has or could reasonably be expected to have (a) a material adverse change in, or a material adverse effect upon the operations, business, properties, liabilities (actual or contingent) or financial condition of the
Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of the Borrower to perform its payment and other material obligations under the terms of this 

  
 19 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
Agreement and the other Loan Documents or the ability of the Guarantors, collectively, to pay or perform any portion of their obligations in accordance with the terms of the Guaranties; or
(c) a material adverse effect upon the legality, validity, binding effect or enforceability against Borrower or any Third Party Obligor of any Loan Document to which it is a party. 

(h) The death or incapacity of Borrower or any Third Party Obligor if an individual. The dissolution or liquidation of Borrower or any
Third Party Obligor if a corporation, partnership, joint venture or other type of entity; or Borrower or any such Third Party Obligor, or any of its directors, stockholders or members, shall take action seeking to effect the dissolution or
liquidation of Borrower or such Third Party Obligor. 
 (i) A transaction or series of related transactions to which the
Borrower is a party, other than the sale of Borrower’s equity securities for bona fide financing purposes, the result of which results in a change in control of Borrower or any entity or combination of entities that directly or indirectly
control Borrower, with “control” defined as ownership of an aggregate of thirty five percent (35%) or more of the common stock, members’ equity or other ownership interest (other than a limited partnership interest). 

(j) Other than with respect to Permitted Liens or Permitted Dispositions, the sale, transfer, hypothecation, assignment or encumbrance,
whether voluntary, involuntary or by operation of law, without Bank’s prior written consent, of all or any part of or interest in any collateral required hereby. 
 SECTION 6.2. REMEDIES. Upon the occurrence and during the continuance of any Event of Default: (a) all indebtedness of Borrower under each of the Loan Documents, any term thereof to the contrary
notwithstanding, shall at Bank’s option and without notice become immediately due and payable without presentment, demand, protest or notice of dishonor, all of which are hereby expressly waived by Borrower; (b) the obligation, if any, of
Bank to extend any further credit under any of the Loan Documents shall immediately cease and terminate; and (c) Bank shall have all rights, powers and remedies available under each of the Loan Documents, or accorded by law, including without
limitation the right to resort to any or all security for any credit subject hereto and to exercise any or all of the rights of a beneficiary or secured party pursuant to applicable law. All rights, powers and remedies of Bank may be exercised at
any time by Bank and from time to time after the occurrence of an Event of Default, are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided by law or equity. 

ARTICLE VII 

MISCELLANEOUS 
 SECTION 7.1. NO WAIVER. No delay, failure or discontinuance of Bank in exercising any right, power or remedy under any of the Loan Documents shall affect or operate as a waiver of such right, power or
remedy; nor shall any single or partial exercise of any such right, power or remedy preclude, waive or otherwise affect any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver, permit, consent or
approval of any kind by Bank of any breach of or default under any of the Loan Documents must be in writing and shall be effective only to the extent set forth in such writing. 

  
 20 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 SECTION 7.2. NOTICES. All notices, requests and demands which any party is required or
may desire to give to any other party under any provision of this Agreement must be in writing delivered to each party at the following address: 
  

			
	 BORROWER:
	  	MAXWELL TECHNOLOGIES, INC.
		  	5271 Viewridge Court, Suite 100
		  	San Diego, CA 92123-1604
		  	Attn: Chief Financial Officer
		
	 BANK:
	  	WELLS FARGO BANK, NATIONAL ASSOCIATION
		  	Technology & Venture Banking
		  	2030 Main Street, Suite 900
		  	Irvine, CA 92614
		  	Attn: Loan Team Manager

 or to such other address as any party may designate by written notice to all other parties. Each such notice, request and
demand shall be deemed given or made as follows: (a) if sent by hand delivery, upon delivery; (b) if sent by mail, upon the earlier of the date of receipt or three (3) days after deposit in the U.S. mail, first class and postage
prepaid; and (c) if sent by telecopy, upon receipt. 
 SECTION 7.3. COSTS, EXPENSES AND ATTORNEYS’ FEES. Borrower
shall pay to Bank immediately upon demand the full amount of all reasonable, documented, out-of-pocket payments, advances, charges, costs and expenses, including reasonable attorneys’ fees (to include outside counsel fees and all allocated
costs of Bank’s in-house counsel), reasonably expended or incurred by Bank in connection with (a) the negotiation and preparation of this Agreement and the other Loan Documents, Bank’s continued administration hereof and thereof
(including audit and inspection fees and expenses, not to exceed Ten Thousand Dollars ($10,000) per audit, unless an Event of Default has occurred and is continuing), and the preparation of any amendments, modifications, extensions or waivers of, or
consents relating to, the provisions hereof or thereof (b) the enforcement of Bank’s rights and/or the collection of any amounts which become due to Bank under any of the Loan Documents, and (c) the prosecution or defense of any
action in any way related to any of the Loan Documents, including without limitation, any action for declaratory relief, whether incurred at the trial or appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing
incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by Bank or any other person) relating to Borrower or any other person or entity. 

SECTION 7.4. SUCCESSORS, ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of the heirs, executors,
administrators, legal representatives, successors and assigns of the parties; provided however, that Borrower may not assign or transfer its interests or rights hereunder without Bank’s prior written consent. Bank reserves the right to sell,
assign, transfer, negotiate or grant participations in all or any part of, or any interest in, Bank’s rights and benefits under each of the Loan Documents. In connection therewith, Bank may disclose all documents and information which Bank now
has or may hereafter acquire relating to any credit subject hereto, Borrower or its business, any Guarantor hereunder or the business of such Guarantor, or any collateral required hereunder. 

  
 21 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 SECTION 7.5. ENTIRE AGREEMENT; AMENDMENT. This Agreement and the other Loan Documents
constitute the entire agreement between Borrower and Bank with respect to each credit subject hereto and supersede all prior negotiations, communications, discussions and correspondence concerning the subject matter hereof. This Agreement may be
amended or modified only in writing signed by each party hereto. 
 SECTION 7.6. NO THIRD PARTY BENEFICIARIES. This Agreement is
made and entered into for the sole protection and benefit of the parties hereto and their respective permitted successors and assigns, and no other person or entity shall be a third party beneficiary of, or have any direct or indirect cause of
action or claim in connection with, this Agreement or any other of the Loan Documents to which it is not a party. 
 SECTION
7.7. TIME. Time is of the essence of each and every provision of this Agreement and each other of the Loan Documents. 
 SECTION
7.8. SEVERABILITY OF PROVISIONS. If any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent of such prohibition or invalidity without invalidating the remainder
of such provision or any remaining provisions of this Agreement. 
 SECTION 7.9. COUNTERPARTS. This Agreement may be executed in
any number of counterparts, each of which when executed and delivered shall be deemed to be an original, and all of which when taken together shall constitute one and the same Agreement. 

SECTION 7.10. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

 SECTION 7.11. ARBITRATION. 
 (a) Arbitration. The parties hereto agree, upon demand by any party, to submit to binding arbitration all claims, disputes and controversies between or among them (and their respective employees,
officers, directors, attorneys, and other agents), whether in tort, contract or otherwise in any way arising out of or relating to (i) any credit subject hereto, or any of the Loan Documents, and their negotiation, execution, collateralization,
administration, repayment, modification, extension, substitution, formation, inducement, enforcement, default or termination; or (ii) requests for additional credit. 
 (b) Governing Rules. Any arbitration proceeding will (i) proceed in a location in California selected by the American Arbitration Association (“AAA”); (ii) be governed by the
Federal Arbitration Act (Title 9 of the United States Code), notwithstanding any conflicting choice of law provision in any of the documents between the parties; and (iii) be conducted by the AAA, or such other administrator as the parties
shall mutually agree upon, in accordance with the AAA’s commercial dispute resolution procedures, unless the claim or counterclaim is at least One Million Dollars ($1,000,000.00) exclusive of claimed interest, arbitration fees and costs in
which case the arbitration shall be conducted in accordance with the AAA’s optional procedures for large, complex commercial disputes (the commercial dispute resolution procedures or the optional procedures for large, complex commercial
disputes to be referred to herein, as applicable, as the “Rules”). If there is any inconsistency between the terms hereof and the Rules, the terms and procedures set forth herein shall control. Any party who fails or

  
 22 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
refuses to submit to arbitration following a demand by any other party shall bear all costs and expenses incurred by such other party in compelling arbitration of any dispute. Nothing contained
herein shall be deemed to be a waiver by any party that is a bank of the protections afforded to it under 12 U.S.C. §91 or any similar applicable state law. 
 (c) No Waiver of Provisional Remedies, Self-Help and Foreclosure. The arbitration requirement does not limit the right of any party to (i) foreclose against real or personal property
collateral; (ii) exercise self-help remedies relating to collateral or proceeds of collateral such as setoff or repossession; or (iii) obtain provisional or ancillary remedies such as replevin, injunctive relief, attachment or the
appointment of a receiver, before during or after the pendency of any arbitration proceeding. This exclusion does not constitute a waiver of the right or obligation of any party to submit any dispute to arbitration or reference hereunder, including
those arising from the exercise of the actions detailed in sections (i), (ii) and (iii) of this paragraph. 
 (d)
Arbitrator Qualifications and Powers. Any arbitration proceeding in which the amount in controversy is Five Million Dollars ($5,000,000.00) or less will be decided by a single arbitrator selected according to the Rules, and who shall not
render an award of greater than Five Million Dollars ($5,000,000.00). Any dispute in which the amount in controversy exceeds Five Million Dollars ($5,000,000.00) shall be decided by majority vote of a panel of three arbitrators; provided however,
that all three arbitrators must actively participate in all hearings and deliberations. The arbitrator will be a neutral attorney licensed in the State of California or a neutral retired judge of the state or federal judiciary of California, in
either case with a minimum of ten years experience in the substantive law applicable to the subject matter of the dispute to be arbitrated. The arbitrator will determine whether or not an issue is arbitratable and will give effect to the statutes of
limitation in determining any claim. In any arbitration proceeding the arbitrator will decide (by documents only or with a hearing at the arbitrator’s discretion) any pre-hearing motions which are similar to motions to dismiss for failure to
state a claim or motions for summary adjudication. The arbitrator shall resolve all disputes in accordance with the substantive law of California and may grant any remedy or relief that a court of such state could order or grant within the scope
hereof and such ancillary relief as is necessary to make effective any award. The arbitrator shall also have the power to award recovery of all costs and fees, to impose sanctions and to take such other action as the arbitrator deems necessary to
the same extent a judge could pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil Procedure or other applicable law. Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction. The
institution and maintenance of an action for judicial relief or pursuit of a provisional or ancillary remedy shall not constitute a waiver of the right of any party, including the plaintiff, to submit the controversy or claim to arbitration if any
other party contests such action for judicial relief. 
 (e) Discovery. In any arbitration proceeding, discovery will be
permitted in accordance with the Rules. All discovery shall be expressly limited to matters directly relevant to the dispute being arbitrated and must be completed no later than twenty (20) days before the hearing date. Any requests for an
extension of the discovery periods, or any discovery disputes, will be subject to final determination by the arbitrator upon a showing that the request for discovery is essential for the party’s presentation and that no alternative means for
obtaining information is available. 

  
 23 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 (f) Class Proceedings and Consolidations. No party hereto shall be entitled to
join or consolidate disputes by or against others in any arbitration, except parties who have executed any Loan Document, or to include in any arbitration any dispute as a representative or member of a class, or to act in any arbitration in the
interest of the general public or in a private attorney general capacity. 
 (g) Payment Of Arbitration Costs And
Fees. The arbitrator shall award all costs and expenses of the arbitration proceeding. 
 (h) Real Property
Collateral; Judicial Reference. Notwithstanding anything herein to the contrary, no dispute shall be submitted to arbitration if the dispute concerns indebtedness secured directly or indirectly, in whole or in part, by any real property unless
(i) the holder of the mortgage, lien or security interest specifically elects in writing to proceed with the arbitration, or (ii) all parties to the arbitration waive any rights or benefits that might accrue to them by virtue of the single
action rule statute of California, thereby agreeing that all indebtedness and obligations of the parties, and all mortgages, liens and security interests securing such indebtedness and obligations, shall remain fully valid and enforceable. If any
such dispute is not submitted to arbitration, the dispute shall be referred to a referee in accordance with California Code of Civil Procedure Section 638 et seq., and this general reference agreement is intended to be specifically enforceable
in accordance with said Section 638. A referee with the qualifications required herein for arbitrators shall be selected pursuant to the AAA’s selection procedures. Judgment upon the decision rendered by a referee shall be entered in the
court in which such proceeding was commenced in accordance with California Code of Civil Procedure Sections 644 and 645. 
 (i)
Miscellaneous. To the maximum extent practicable, the AAA, the arbitrators and the parties shall take all action required to conclude any arbitration proceeding within one hundred eighty (180) days of the filing of the dispute with the
AAA. No arbitrator or other party to an arbitration proceeding may disclose the existence, content or results thereof, except for disclosures of information by a party required in the ordinary course of its business or by applicable law or
regulation. If more than one agreement for arbitration by or between the parties potentially applies to a dispute, the arbitration provision most directly related to the Loan Documents or the subject matter of the dispute shall control. This
arbitration provision shall survive termination, amendment or expiration of any of the Loan Documents or any relationship between the parties. 
 (j) Small Claims Court. Notwithstanding anything herein to the contrary, each party retains the right to pursue in Small Claims Court any dispute within that court’s jurisdiction. Further,
this arbitration provision shall apply only to disputes in which either party seeks to recover an amount of money (excluding attorneys’ fees and costs) that exceeds the jurisdictional limit of the Small Claims Court. 

[Balance of Page Intentionally Left Blank] 

  
 24 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the day and year first written above. 
  

									
	MAXWELL TECHNOLOGIES, INC.	 		 	 WELLS FARGO BANK,

NATIONAL ASSOCIATION

					
	By:	 	 /s/ Kevin Royal
	 		 	By:	 	 /s/ Susan Worsham

	Name:	 	Kevin Royal	 		 	Name:	 	Susan Worsham
	Title:	 	CFO	 		 	Title:	 	VP

 [Signature Page to Credit Agreement] 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 SCHEDULE 
 Schedule 2.2 – Control over Assets and Property 
 Borrower does not have physical
possession of its assets located at the facilities set forth on Schedule 5(c) of the Security Agreement of even date herewith. 
 Schedule
2.4 – Litigation 
 Customer Claim 
 In 2005, a customer claimed a possible defect in a product that was produced for the Borrower’s Swiss subsidiary, Maxwell SA, under contract by a third party manufacturer, Epcos AG, and resold to the
customer. In July 2011, the Borrower reached an agreement in principal with the customer to settle any and all claims for consideration of 1.8 million Euro (approximately $2.4 million as of September 30, 2011), with 500,000 Euro
(approximately $670,000 as of September 30, 2011) payable to the customer up front and the remaining amount of 1.3 million Euro (approximately $1.7 million as of September 30, 2011) available to the customer as a specified discount on
future purchases of the Borrower’s products. Any balance remaining of the 1.3 million Euro not used as product discount by December 31, 2014 is payable in cash at that time. This agreement is not yet final, and is therefore subject to
change until a written agreement between the parties is executed. The Borrower is continuing to pursue recovery of damages from the manufacturer of the defective product, but at this time is unable to ascertain the amount of the recovery, if any.
The anticipated settlement amount of 1.8 million Euro (approximately $2.4 million as of September 30, 2011) due from the Borrower to the customer has been fully accrued in “accounts payable and accrued liabilities” in the
consolidated balance sheet as of September 30, 2011. 
 FCPA Matter 

As a result of its international operations, the Borrower is subject to the U.S. Foreign Corrupt Practices Act (“FCPA”), which
prohibits companies from making improper payments to foreign officials for the purpose of obtaining or keeping business. Beginning in 2009, the Borrower conducted an internal review into payments made to its former independent sales agent in China
with respect to sales of the Borrower’s high voltage capacitor products produced by the Borrower’s Swiss subsidiary. In January 2011, the Borrower reached settlements with the SEC and the U.S. Department of Justice (“DOJ”) with
respect to charges asserted by the SEC and DOJ relating to the anti-bribery, books and records, internal controls, and disclosure provisions of the FCPA and other securities law violations. The Borrower settled civil charges with the SEC, agreeing
to an injunction against further violations of the FCPA. Under the terms of the settlement with the SEC, the Borrower agreed to pay a total of $6.4 million in profit disgorgement and prejudgment interest, in two installments, with $3.2 million paid
in the first quarter of 2011, and the remaining $3.2 million payable in the first quarter of 2012. Under the terms of the settlement with the DOJ, the Borrower agreed to pay a total of $8.0 million in penalties in three installments, with $3.5
million paid in the first quarter of 2011, and $2.3 million payable in each of the first quarters of 2012 and 2013. As part of the settlement, the Borrower 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
entered into a three-year deferred prosecution agreement (“DPA”) with the DOJ. If the Borrower remains in compliance with the terms of the DPA, at the conclusion of the term, the
charges against the Borrower will be dismissed with prejudice. Further, under the terms of the agreements, the Borrower will periodically report to the SEC and DOJ on the Borrower’s internal compliance program concerning anti-bribery. As of
September 30, 2011, $5.4 million is included in “accounts payable and accrued liabilities” and $2.3 million is included in “other long-term liabilities” on the accompanying consolidated balance sheet. 

Shareholder Derivative Suit 
 In August 2010, a shareholder derivative action was filed in the Superior Court for San Diego County, California, allegedly on behalf of and for the benefit of the Borrower, against certain of the
Borrower’s current and former officers and directors alleging, among other claims, breach of fiduciary duty, waste of corporate assets, and unjust enrichment. The complaint was titled Lozides v. Schramm et al. and alleged that the individual
defendants allowed the Borrower to violate the U.S. Foreign Corrupt Practices Act (“FCPA”) and failed to maintain internal controls and accounting systems for compliance with the FCPA. In September 2010, Washtenaw County Employees’
Retirement System v. Guyett et al., another derivative action, was filed in the same court against certain of the Borrower’s current and former officers and directors, as well as a member of the Borrower’s management team, alleging
substantially similar claims. In October 2010, the two actions were consolidated. The amended consolidated shareholder derivative complaint was filed on March 24, 2011 against certain of the Borrower’s current and former directors and
officers, as well as members of the Borrower’s management team, bringing similar claims as the previous complaints. On May 6, 2011, the defendants filed a demurrer (motion to dismiss) for all claims asserted under the complaint. On
June 23, 2011, the plaintiffs filed an opposition to this demurrer contesting the validity of the defendants’ grounds for dismissal. On August 12, 2011, the court considered the parties’ respective filings and granted in part and
denied in part the defendants’ demurrer. Mediation is scheduled for December 15, 2011. Because the consolidated action is derivative in nature, it does not seek monetary damages from the Borrower. However, the Borrower may be required
throughout the term of the action to advance the legal fees and costs incurred by the individual defendants and to incur other financial obligations. At this preliminary stage, the Borrower cannot predict the ultimate outcome of this action and
therefore has not accrued an amount for any potential costs associated with this action. 
 ISE Matter 

On January 11, 2011, the Borrower attended a bankruptcy proceeding for a previous customer, ISE, in order to bid on certain
intellectual property and other assets that were being auctioned. During this proceeding, an offer for sale was presented for any and all potential ISE claims against Maxwell. These potential claims essentially related Maxwell’s intellectual
property and also possible preference payments made to Maxwell by ISE prior to ISE filing bankruptcy. It should be noted that these claims had never been presented to Maxwell by ISE or any other party prior to this time. Although the Borrower was
aware of a potential opinion by ISE that Maxwell’s products infringed ISE’s intellectual property, the opinion had never been substantiated by ISE or brought forth in any formal or written matter. At the January 11, 2011 proceeding,
the Borrower bid $250,000 to purchase the right to any and all future ISE claims against Maxwell, with the intent to absolve itself of any future potential claims by third parties. Since this time, in the interest of a more expedient resolution to
this matter, Maxwell has increased its settlement offer to ISE to $500,000. To date, ISE has not indicated whether it will 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 
accept or reject the revised settlement offer of $500,000. The Borrower continues to believe that it has strong legal defenses against this claim, and the Borrower does not believe a settlement
amount significantly in excess of $500,000 is likely. This amount has been fully accrued in “accounts payable and accrued liabilities” in the consolidated balance sheet as of September 30, 2011. 

IP Infringement Matter 

In late March 2011, Dr. Linda Zhong, the Senior Director of Research and Development for the Borrower’s ultracapacitor products,
resigned from the Borrower. Due to suspicious facts surrounding the employee’s departure from the Borrower, the Borrower conducted a forensic analysis of the employee’s work-issued computer. As a result of this analysis, it was discovered
that a large number of the Borrower’s proprietary documents had been copied to the employee’s local computer and then transferred to the employee’s personal external storage medium. On May 11, 2011, the Borrower filed a formal
complaint in San Diego Superior Court against the former employee asserting, among other causes of action, trade secret misappropriation and breach of contract. The Borrower has incurred significant legal expenses in pursuing this claim, and could
continue to incur significant legal costs due to the ongoing nature of this matter. 
 DCIS Matter 

In 2007, the Borrower delivered single board computer (SBC) products to two separate customers who were planning to supply the SBC
products as incorporated into larger systems for agencies of the US. During Q3 2008, one of these two customers reported intermittent failures in the SBCs sold to it by Maxwell. On March 23, 2010, the Borrower was contacted by an agent from the
Defense Criminal Investigative Services (DCIS) requesting a meeting to discuss the failures experienced by the SBC product. On April 19, 2011, the DCIS agent contacted the Borrower again to request a follow up meeting to ask additional
questions. Essentially, the Borrower believes that the DCIS agent is considering the appropriateness of the Borrower’s actions regarding the discovered failures of the SBC. On June 3, 2011, the DCIS served a subpoena on the Borrower
requesting that the Borrower produce certain documents. The Borrower has been producing documents to DCIS on a rolling basis since July 15, 2011. To date, no formal actions have been taken by DCIS with respect to any documents provided by the
Borrower. At this time, the Borrower is unable to estimate any loss associated with this matter given the early phase of the document production to DCIS. The Borrower has incurred significant legal expenses in pursuing this claim, and could continue
to incur significant legal costs due to the ongoing nature of this matter. 
 Wrongful Termination Claim 

In November 2011, the Borrower received a demand letter claiming disability discrimination and wrongful termination of a former employee.
The letter included a settlement offer of approximately $400,000. Due to the early stage of the matter, the Borrower is not able to estimate the outcome of this matter at this time. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Schedule 2.6 – Taxes 

Borrower’s tax advisors have advised Borrower that it may have an unpaid tax liability to [*] in the approximate amount of
$272,000 [*]1. Borrower is continuing to evaluate this
matter with its tax advisors. This amount has been fully accrued for in the balance sheet. 
 Schedule 2.11 – Environmental Matters

 None. 
 Schedule 5.2 –
Existing Indebtedness 
 Foreign currency hedge contracts with Bank or its affiliates. 

Real estate leases for the locations set forth on Schedule 5(b) of the Security Agreement of even date herewith. 

Various automobile leases. 
 Amounts owed under
the settlement agreement for the FCPA discussed in Schedule 2.4 to this Agreement. 
 Schedule 5.6 – Existing Guarantees 

Obligations under that certain Maxwell Technologies Guaranty dated March 10, 2011 by and between the Borrower and Neuman Aluminum Impact Extrusion,
Inc.; provided that the aggregate amount owing by Borrower at any time under such Guaranty does not exceed Seven Hundred Fifty Thousand Dollars ($750,000). 

 

	*	CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Schedule 5.9 – Permitted Liens 
 That certain lien held by Banc of America Leasing & Capital, LLC described in the UCC Financing Statement filed with the state of Delaware as Filing # 2007 1513216. 

That certain lien held by Banc of America Leasing & Capital, LLC described in the UCC Financing Statement filed with the state of Delaware as
Filing # 2008 3692777. 
 Automobile liens held by the lessors of such vehicles under various automobile leases. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 COMPLIANCE CERTIFICATE 

 

			
	 TO:    
	  	 WELLSFARGO BANK, NATIONAL ASSOCIATION

		  	 10421Wateridge Court, Suite 150

		  	 San     Diego, CA 92121

 I am an officer of MAXWELL TECHNOLOGIES, INC. (“Borrower”). Under the terms of that certain
Credit Agreement between Borrower and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) dated as of December 5, 2011 (the “Agreement”), I hereby certify that: 

1. The attached financial statements of Borrower and/or each Subsidiary dated as of
                    (the “Statement Date”) are true and correct and have been accurately prepared in accordance with generally accepted
accounting principles and used consistently with prior practices. 
 2. Unless expressly stated otherwise in a written statement
attached to this Certificate, all representations and warranties contained in the Agreement remain true and correct, and as of the date hereof there exists no default or defined event of default under the Agreement or any promissory note or other
contract, instrument or document executed in connection therewith, nor any condition, act or event which with the giving of notice or the passage of time or both would constitute such a default or defined event of default. 

3. The calculations regarding each financial covenant below (with capitalized terms not otherwise defined having the meanings given to
them in the Agreement), as of the Statement Date, and regardless of whether Borrower must be in compliance with each covenant as of the Statement Date, are as follows: 
 BORROWER FINANCIAL COVENANTS: 
  

							
	 SECTION
	  	 COVENANT
	  	 ACTUAL
	  	 REQUIRED

				
	 4.9(a)
	  	 Minimum Liquidity
 Coverage
Ratio
	  	         to 1.0	  	Not less than 2.0 to 1.0
				
	 4.9(b)
	  	Quick Ratio	  	         to 1.0	  	Not less than 1.125 to 1.000
				
	 4.9(c)
	  	Quarterly EBITDA	  	$            	  	 $3,250,000.00 during
 2011,
$4,000,000.00 thereafter

				
	 4.9(d)
	  	Annual Net Income after Taxes	  	$            	  	Not less than $1.00

 MAXWELL TECHNOLOGIES, INC. 
  

					
	By:	 	  
	 	Date:
	Title:	 	  
	 	

 CONFIDENTIAL TREATMENT REQUESTED 

 

 EXHIBIT A 
 TO 
 UCC FINANCING STATEMENT 

This Exhibit A is attached to and made a part of that certain UCC Financing Statement naming MAXWELL TECHNOLOGIES, INC., as Debtor, and
WELLS FARGO BANK, NATIONAL ASSOCIATION as Secured Party. 
 The following is hereby incorporated into said UCC Financing
Statement as the description of the collateral subject thereto: 
 All assets and personal property of the Debtor, whether presently existing or
hereafter created or acquired, and wherever located (the Collateral”). 
 Notwithstanding the foregoing, the Collateral
does not include (i) any of the following, whether now owned or hereafter acquired: any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or
unpublished; any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same; trademarks, trade names, service marks, mask works, rights
of use of any name or domain names and, to the extent permitted under applicable law, any applications therefor, whether registered or not; and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating
manuals, trade secret rights, clinical and non-clinical data, rights to unpatented inventions; and any claims for damage by way of any past, present, or future infringement of any of the foregoing (collectively, the “Intellectual
Property”); provided, however, the Collateral shall include all accounts, license and royalty fees and other revenues, proceeds, or income arising out of or relating to any of the foregoing; (ii) more than sixty five percent (65%) of
the total combined voting power of all classes of stock entitled to vote the shares of capital stock (the “Shares”) of Maxwell Technologies SA or any other Subsidiary of Borrower, not incorporated or organized under the laws of one of the
States or jurisdictions of the United States; or (iii) any rights or interests in any lease, license, contract, or agreement, as such or the assets subject thereto if under the terms of such lease, license, contract, or agreement, or applicable
law with respect thereto, the valid grant of lien therein or in such assets to Bank is prohibited and such prohibition has not been or is not waived or the consent of the other party to such lease, license, contract, or agreement has not been or is
not otherwise obtained or under applicable law such prohibition cannot be waived; provided that such rights or interests in any such lease, license, contract or agreement and such assets subject thereto will be deemed to be “Collateral”
hereunder upon the termination of; or consent, release or waiver under, such lease, license, contract or agreement, subject to applicable law. 
 Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 CORPORATE RESOLUTION: BORROWING 
 TO: WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) 
 RESOLVED: That
this corporation, MAXWELL TECHNOLOGIES, INC., proposes to obtain credit from time to time, or has obtained credit, from Bank. 

BE IT FURTHER RESOLVED, that any     of the following officers (use titles only): 

 
  

together with any     of the following officers (use titles only): 

 
  

of this corporation be and they are hereby authorized and empowered for and on behalf of and in the name of this corporation and as its
corporate act and deed: 
 4. To borrow money from Bank and to assume any liabilities of any other person or entity to Bank, in
such form and on such terms and conditions as shall be agreed upon by those authorized above and Bank, and to sign and deliver to Bank such promissory notes and other evidences of indebtedness for money borrowed or advanced and/or for indebtedness
assumed as Bank shall require; such promissory notes or other evidences of indebtedness may provide that advances be requested by telephone communication and by any officer, employee or agent of this corporation so long as the advances are deposited
into any deposit account of this corporation with Bank; this corporation shall be bound to Bank by, and Bank may rely upon, any communication or act, including telephone communications, purporting to be done by any officer, employee or agent of this
corporation provided that Bank believes, in good faith, that the same is done by such person. 
 5. To contract for the issuance
by Bank of letters of credit, to discount with Bank notes, acceptances and evidences of indebtedness payable to or due this corporation, to endorse the same and execute such contracts and instruments for repayment thereof to Bank as Bank shall
require, and to enter into any swap, derivative, foreign exchange, hedge or other similar transaction or arrangement with or through Bank. 
 6. To mortgage, encumber, pledge, convey, grant, assign or otherwise transfer all or any part of this corporation’s real or personal property for the purpose of securing the payment of any of the
promissory notes, contracts, instruments and other evidences of indebtedness authorized hereby, and to execute and deliver to Bank such deeds of trust, mortgages, pledge agreements, security agreements and/or other related documents as Bank shall
require. 
 7. To perform all acts and to execute and deliver all documents described above and all other contracts and
instruments which Bank deems necessary or convenient to accomplish the purposes of this resolution and/or to perfect or continue the rights, remedies and security interests to be given to Bank pursuant hereto, including without limitation, any
modifications, renewals and/or extensions of any of this corporation’s obligations to Bank, however evidenced. 

 CONFIDENTIAL TREATMENT REQUESTED 

 

 Loans made pursuant to a special resolution and loans made by offices of Bank other than
the office to which this resolution is delivered shall be in addition to the foregoing limitation. 
 BE IT FURTHER RESOLVED,
that the authority hereby conferred is in addition to that conferred by any other resolution heretofore or hereafter delivered by this corporation to Bank and shall continue in full force and effect until Bank shall have received notice in writing,
certified by the Secretary of this corporation, of the revocation hereof by a resolution duly adopted by the Board of Directors of this corporation. Any such revocation shall be effective only as to credit which is extended or committed by Bank, or
actions which are taken by this corporation pursuant to the resolutions contained herein, subsequent to Bank’s receipt of such notice. The authority hereby conferred shall be deemed retroactive, and any and all acts authorized herein which were
performed prior to the passage of this resolution are hereby approved and ratified. 
 CERTIFICATION 

I,
                                        ,
Secretary of MAXWELL TECHNOLOGIES, INC., a corporation created and existing under the laws of Delaware, do hereby certify and declare that the foregoing is a full, true and correct copy of the resolutions duly passed and adopted by the Board of
Directors of said corporation, by written consent of all Directors of said corporation or at a meeting of said Board duly and regularly called, noticed and held on December 5, 2011, at which meeting a quorum of the Board of Directors was
present and voted in favor of said resolutions; that said resolutions are now in full force and effect; that there is no provision in the Certificate of Incorporation or Bylaws of said corporation, or any shareholder agreement, limiting the power of
the Board of Directors of said corporation to pass the foregoing resolutions and that such resolutions are in conformity with the provisions of such Articles of Incorporation and Bylaws; and that no approval by the shareholders of, or any of the
outstanding shares of, said corporation is required with respect to the matters which are the subject of the foregoing resolutions. 
 IN WITNESS WHEREOF, I have hereunto set my hand, and if required by Bank affixed the corporate seal of said corporation, as of December 5, 2011. 

 

	
	  

	Secretary
	

 CERTIFICATE OF INCUMBENCY 

 

	To:	WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) 

 The undersigned,
                                        ,
Secretary of MAXWELL TECHNOLOGIES, INC., a corporation created and existing under the laws of Delaware, hereby certifies to Bank that: (a) each of the following named persons are duly elected officers of this corporation and presently hold the
titles specified below; (b) said officers are authorized to act on behalf of this corporation in transactions with Bank; and (c) the signature opposite each officer’s name is his or her true signature: 

 

					
	 Title
	  	 Name
	  	 Signature

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

			
	  
	  	  
	  	  

 The undersigned further certifies that if any of the above-named officers change, or if, at any time, any
of said officers are no longer authorized to act on behalf of this corporation in transactions with Bank, this corporation shall immediately provide to Bank a new Certificate of Incumbency. Bank is hereby authorized to rely on this Certificate of
Incumbency until a new Certificate of Incumbency certified by the Secretary of this corporation is received by Bank. 
 IN
WITNESS WHEREOF, I have hereunto set my hand, and if required by Bank affixed the corporate seal of said corporation, as of December 5, 2011. 
  

	
	  

	Secretary

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