Document:

Prepared by R.R. Donnelley Financial -- Amended and Restated Loan and Security Agreement

 EXHIBIT 10.8 
  

  
 AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 
 ADVANCED ANALOGIC TECHNOLOGIES INCORPORATED 
  

 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 1.
	  	ACCOUNTING AND OTHER TERMS	  	1
			
	 2.
	  	LOAN AND TERMS OF PAYMENT	  	1
				
	 	  	2.1	  	Promise to Pay	  	1
	 	  	2.2	  	Overadvances	  	2
	 	  	2.3	  	Interest Rate, Payments	  	2
	 	  	2.4	  	Bank Expenses	  	2
	 	  	2.5	  	Prepayment	  	3
			
	 3.
	  	CONDITIONS OF LOANS	  	3
				
	 	  	3.1	  	Conditions Precedent to all Credit Extensions	  	3
			
	 4.
	  	CREATION OF SECURITY INTEREST	  	3
				
	 	  	4.1	  	Grant of Security Interest	  	3
			
	 5.
	  	REPRESENTATIONS AND WARRANTIES	  	4
				
	 	  	5.1	  	Due Organization and Authorization	  	4
	 	  	5.2	  	Collateral	  	4
	 	  	5.3	  	Litigation	  	4
	 	  	5.4	  	No Material Adverse Change in Financial Statements	  	4
	 	  	5.5	  	Solvency	  	5
	 	  	5.6	  	Regulatory Compliance	  	5
	 	  	5.7	  	Investments in Subsidiaries	  	5
	 	  	5.8	  	Full Disclosure	  	5
			
	 6.
	  	AFFIRMATIVE COVENANTS	  	6
				
	 	  	6.1	  	Government Compliance	  	6
	 	  	6.2	  	Financial Statements, Reports, Certificates	  	6
	 	  	6.3	  	Inventory; Returns	  	6
	 	  	6.4	  	Taxes	  	6
	 	  	6.5	  	Insurance	  	6
	 	  	6.6	  	Primary Accounts	  	7
	 	  	6.7	  	Financial Covenant	  	7
	 	  	6.8	  	Further Assurances	  	7
			
	 7.
	  	NEGATIVE COVENANTS	  	7
				
	 	  	7.1	  	Dispositions	  	7
	 	  	7.2	  	Changes in Business, Control or Locations of Collateral	  	7
	 	  	7.3	  	Mergers or Acquisitions	  	8
	 	  	7.4	  	Indebtedness	  	8
	 	  	7.5	  	Encumbrance	  	8
	 	  	7.6	  	Distributions; Investments	  	8

  

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 TABLE OF CONTENTS 
  

							
	 	  	 	  	 	  	Page

	 	  	7.7	  	Transactions with Affiliates	  	8
	 	  	7.8	  	Subordinated Debt	  	8
	 	  	7.9	  	Compliance	  	8
			
	8.	  	EVENTS OF DEFAULT	  	9
				
	 	  	8.1	  	Payment Default	  	9
	 	  	8.2	  	Covenant Default	  	9
	 	  	8.3	  	Material Adverse Change	  	9
	 	  	8.4	  	Attachment	  	9
	 	  	8.5	  	Insolvency	  	10
	 	  	8.6	  	Other Agreements	  	10
	 	  	8.7	  	Judgments	  	10
	 	  	8.8	  	Misrepresentations	  	10
			
	9.	  	BANK’S RIGHTS AND REMEDIES	  	10
				
	 	  	9.1	  	Rights and Remedies	  	10
	 	  	9.2	  	Power of Attorney	  	11
	 	  	9.3	  	Bank Expenses	  	11
	 	  	9.4	  	Bank’s Liability for Collateral	  	11
	 	  	9.5	  	Remedies Cumulative	  	11
	 	  	9.6	  	Demand Waiver	  	11
			
	10.	  	NOTICES	  	12
			
	11.	  	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER	  	12
			
	12.	  	GENERAL PROVISIONS	  	12
				
	 	  	12.1	  	Successors and Assigns	  	12
	 	  	12.2	  	Indemnification	  	12
	 	  	12.3	  	Time of Essence	  	12
	 	  	12.4	  	Severability of Provision	  	12
	 	  	12.5	  	Amendments in Writing, Integration	  	12
	 	  	12.6	  	Counterparts	  	13
	 	  	12.7	  	Survival	  	13
	 	  	12.8	  	Confidentiality	  	13
	 	  	12.9	  	Attorneys’ Fees, Costs and Expenses	  	13
			
	13.	  	DEFINITIONS	  	14
				
	 	  	13.1	  	Definitions	  	14

  
  

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 This AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (“Agreement”) dated as of the
Effective Date, between SILICON VALLEY BANK (“Bank”), whose address is 3003 Tasman Drive, Santa Clara, California 95054 and ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED, a Delaware corporation (“Borrower”), whose address is 830
East Arques Avenue, Sunnyvale, California 94085 provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties agree as follows: 
  
 1. ACCOUNTING AND OTHER TERMS 
  
 Accounting terms not defined in this Agreement will be construed following GAAP. Calculations and determinations must be made following GAAP. The term
“financial statements” includes the notes and schedules. The terms “including” and “includes” always mean “including (or includes) without limitation,” in this or any Loan Document. 
  
 2. LOAN AND TERMS OF PAYMENT 
  
 2.1 Promise to Pay. Borrower promises to pay Bank the unpaid
principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions. 
  
 2.1.1 Revolving Advances. 
  
 (a) Bank will make Advances not exceeding the Committed Revolving Line minus (i) the amount of all outstanding Letters of Credit (including drawn but
unreimbursed Letters of Credit), (ii) minus the Cash Management Services Sublimit and minus (iii) the FX Reserve. Amounts borrowed under this Section may be repaid and reborrowed during the term of this Agreement. 
  
 (b) To obtain an Advance, Borrower must notify Bank by facsimile or
telephone by 12:00 p.m. Pacific time on the Business Day the Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank the Payment/Advance Form attached hereto as Exhibit B. Bank will credit Advances to
Borrower’s deposit account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due.
Bank may rely on any telephone notice given by a person whom Bank reasonably believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance. 
  
 (c) The Committed Revolving Line terminates on the Revolving Maturity Date,
when all Advances are immediately payable. 
  
 2.1.2 Letters of
Credit Sublimit. Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding the Committed Revolving minus (i) the outstanding principal balance of the Advances minus (ii) the Cash Management Services Sublimit, and
(iii) minus the FX Reserve; however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) may not exceed the Committed Revolving Line. Borrower’s 

 reimbursement obligation relating to any such Letters of Credit shall be secured by cash upon termination of this
Agreement for Letters of Credit which remain outstanding at such time. Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. 
  
 2.1.3 Foreign Exchange Sublimit. If there is availability under the
Committed Revolving Line, then Borrower may enter in foreign exchange forward contracts with the Bank under which Borrower commits to purchase from or sell to Bank a set amount of foreign currency more than one business day after the contract date
(the “FX Forward Contract”). Bank will subtract 10% of each outstanding FX Forward Contract from the foreign exchange sublimit which is the Committed Revolving Line (the “FX Reserve”). The total FX Forward Contracts at any one
time may not exceed 10 times the amount of the FX Reserve. Bank may terminate the FX Forward Contracts if an Event of Default occurs and is continuing. 
  
 2.1.4 Cash Management Services Sublimit. Borrower may use cash management services, which may include merchant services, direct deposit of payroll,
business credit card, and check cashing services identified in various cash management services agreements related to such services (the “Cash Management Services”) in an amount up to the Committed Revolving Line. Any amounts Bank pays on
behalf of Borrower and any amounts that are not paid by Borrower for any Cash Management Services will be treated as Advances under the Committed Revolving Line. 
  
 2.2 Overadvances. If Borrower’s Obligations under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.4 exceed the Committed
Revolving Line, Borrower must immediately pay Bank the excess. 
  
 2.3 Interest Rate, Payments Interest Rate. Advances accrue interest on the outstanding principal balance at the per annum rate equal to the greater of either (i) 0.25 of one percentage point (0.25%) above the Prime Rate or
(ii) 5.75% . After an Event of Default, Advances accrue interest at 5 percent above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate changes. Interest is computed on a 360 day
year for the actual number of days elapsed. 
  
 (b)
Payments. Interest due on the Committed Revolving Line is payable on the 14th of each month. Bank may debit
any of Borrower’s deposit accounts including Account Number 3300235902 for principal and interest payments owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when it debits Borrower’s accounts. These debits are not
a set-off. Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and
additional interest shall accrue. 
  
 2.4 Bank Expenses

  
 Borrower will pay all Bank Expenses (including reasonable
attorneys fees and reasonable expenses) incurred through and after the date of this Agreement, which expenses are payable when due. 
  

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 2.5 Prepayment 
  
 Borrower shall have the option at any time during the term of this Agreement to prepay all Obligations, without a premium or
penalty, and thereupon to terminate this Agreement together with the Bank’s commitments and other undertakings hereunder, subject to the survival of the indemnity provisions as set forth herein and in any other Loan Documents. 
  
 3. CONDITIONS OF LOANS 
  
 3.1 Conditions Precedent to all Credit Extensions. Bank’s
obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following: 
  
 (a) timely receipt of any Payment/Advance Form; and 
  
 (b) the representations and warranties in Section 5 must be materially true on the date of the Payment/Advance Form and on the effective date of each
Credit Extension and no Event of Default may have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties of Section 5
remain true in all material respects unless such representation or warranty solely relates to an earlier date. 
  
 4. CREATION OF SECURITY INTEREST 
  
 4.1 Grant of Security Interest Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of each of Borrower’s
duties under the Loan Documents. Except for Permitted Liens, any security interest will be a first priority security interest in the Collateral. If this Agreement is terminated, Bank’s lien and security interest in the Collateral will continue
until Borrower fully satisfies its Obligations. Notwithstanding the foregoing, the security interest granted herein does not extend to and the term “Collateral” does not include any license or contract rights to the extent (i) the granting
of a security interest in it would be contrary to applicable law, or (ii) that such rights are nonassignable by their terms (but only to the extent such prohibition is enforceable under applicable law or the Code) without the consent of the licensor
or other party (but only to the extent such consent has not been obtained). Except as disclosed on the Schedule, Borrower is not a party to, nor is bound by, any license or other agreement that prohibits or otherwise restricts Borrower from granting
a security interest in Borrower’s interest in such license or agreement or any other property which is reasonably likely to have a material adverse impact on Borrower’s business or financial condition. Without prior notice to Bank,
Borrower shall not enter into, or become bound by, any such license or agreement which is reasonably likely to have a material impact on Borrower’s business or financial condition. Borrower shall take such steps as Bank requests to obtain the
consent of, or waiver by, any person whose consent or waiver is necessary for such licenses or contract rights to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law
or by the terms of any such license or agreement, whether now existing or entered into in the future. 
  

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 4.2 Authorization to File Borrower authorizes Bank to file financing statements without notice to
Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order to perfect or protect Bank’s interest in the Collateral. 
  
 5. REPRESENTATIONS AND WARRANTIES 
  
 Borrower represents and warrants as follows: 
  
 5.1 Due Organization and Authorization Borrower and each Subsidiary is duly existing and in good standing in its jurisdiction of formation and
qualified and licensed to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified, except where the failure to do so could not reasonably be expected to cause
a Material Adverse Change. Except to the extent Borrower has given notice thereof to Bank in writing, Borrower has not changed its state of formation or its organizational structure or type or any organizational number (if any) assigned by its
jurisdiction of formation. 
  
 The execution, delivery and
performance of the Loan Documents have been duly authorized, and do not conflict with Borrower’s formation documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under
any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change. 
  
 5.2 Collateral Borrower has good title to the Collateral, free of Liens except Permitted Liens or Borrower has Rights to each asset that is
Collateral. Borrower has no other deposit account, other than the deposit accounts described in the Schedule. The Accounts are bona fide, existing obligations, and the service or property has been performed, shipped or licensed to the account
debtor. The Collateral is not in the possession of any third party bailee (such as at a warehouse) within the United States without first providing Bank with a warehouseman’s lien waiver or equivalent, in form and substance acceptable to Bank.
In the event that Borrower, after the date hereof, intends to store or otherwise deliver any Collateral to such a bailee, then Borrower will receive the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is
holding such Collateral for the benefit of Bank. Borrower has no notice of any actual or imminent Insolvency Proceeding of any account debtor whose accounts are a Domestic Eligible Account in any Borrowing Base Certificate. All Inventory, excluding
Inventory processed and stored outside the United States, is in all material respects of good and marketable quality, free from material defects. 
  
 5.3 Litigation Except as shown in the Schedule or as described in Borrower’s S-1 registration statement, there are no actions or proceedings
pending or, to the knowledge of Borrower’s Responsible Officers, threatened against Borrower or any Subsidiary in which a likely adverse decision could reasonably be expected to cause a Material Adverse Change. 
  
 5.4 No Material Adverse Change in Financial Statements All
consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been
any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 
  

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 5.5 Solvency The fair salable value of Borrower’s assets (including goodwill minus
disposition costs) exceeds the fair value of its liabilities; the Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature.

  
 5.6 Regulatory Compliance Borrower is not 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. Borrower has not violated any laws, ordinances or rules, the violation of which could
reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any Subsidiary’s properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in
disposing, producing, storing, treating, or transporting any hazardous substance other than in compliance in all material respects with the law. Borrower and each Subsidiary has timely filed, or obtained appropriate extensions for filing with
respect to, all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary 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 its business as currently conducted, except where the failure to do so could not reasonably be expected to
cause a Material Adverse Change. 
  
 5.7 Investments in
Subsidiaries Borrower does not own any stock, partnership interest or other equity securities except for Permitted Investments. 
  
 5.8 Full Disclosure No material written representation, warranty or other statement of Borrower in any certificate or written statement given to
Bank in connection with, or in contemplation of entering into this Agreement and related documents, when taken together with all such written certificates and written statements to Bank and Borrower’s 10-Q and 10-K filings with the Securities
and Exchange Commission, 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 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 and
forecasted results. 
  

 -5- 

 6. AFFIRMATIVE COVENANTS 
  
 Borrower will do all of the following for so long as Bank has an obligation to lend, or there are outstanding Obligations:

  
 6.1 Government Compliance Borrower will maintain its
and its Subsidiaries’ legal existence and good standing in their jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to cause a material adverse effect on
Borrower’s business or operations. Borrower will comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which such Person is subject, to the extent that noncompliance therewith could reasonably be expected to
cause a Material Adverse Change. 
  
 6.2 Financial Statements,
Reports, Certificates Borrower will deliver to Bank: (i) as soon as available, but no later than 45 days after the last day of each fiscal quarter, a compliance certificate signed by a Responsible Officer in the form of Exhibit D, and (ii) a
prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be expected to result in a Material Adverse Change. 
  
 6.3 Inventory; Returns Borrower will keep all Inventory in good and marketable condition, free from material defects,
except for those Inventory processed and stored outside the United States. Returns and allowances between Borrower and its account debtors will follow Borrower’s customary practices in Borrower’s industry. 
  
 6.4 Taxes Borrower will make, and cause each Subsidiary to make,
timely payment or timely request for extension of payment, of all material federal, state, and local taxes or assessments (other than taxes and assessments which Borrower is contesting in good faith, with adequate reserves maintained in accordance
with GAAP) and will deliver to Bank, on demand, appropriate certificates attesting to the payment. 
  
 6.5 Insurance Borrower will keep its business and the Collateral insured for risks and in amounts standard for Borrower’s industry. All
property policies will have a lender’s loss payable endorsement showing Bank as loss payee and all liability policies will show the Bank as an additional insured and provide that the insurer must give Bank at least 20 days notice before
canceling its policy. At Bank’s request, Borrower will deliver certified copies of policies and evidence of all premium payments. If no Event of Default has occurred and is continuing, proceeds payable under any casualty policy will, at
Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a first priority security interest. If an Event
of Default has occurred and is continuing, then, at Bank’s option, proceeds payable under any casualty policy will be payable to Bank on account of the Obligations. 
  

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 6.6 Primary Accounts Borrower will maintain its primary banking relationship with Bank and will
maintain at least $25,000,000 of its deposits with SVB Asset Management. 
  
 6.7 Financial Covenant Borrower will maintain at all times Net Cash of not less than $30,000,000. 
  
 6.8 Further Assurances Borrower will execute any further instruments and take further action as Bank reasonably requests to perfect or continue
Bank’s security interest in the Collateral or to effect the purposes of this Agreement. 
  
 7. NEGATIVE COVENANTS 
  
 For so long as Bank has an obligation to lend or there are any outstanding Obligations, Borrower shall not, without Bank’s prior written consent (which shall be a matter of its good faith business judgment), do any of the following:

  
 7.1 Dispositions Convey, sell, lease, transfer or
otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property (other than the use of cash or cash equivalents in a manner that is not prohibited by the terms of
this Agreement or the other Loan Documents), except for (i) Transfers of Inventory in the ordinary course of business; (ii) Transfers of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in
the ordinary course of business; (iii) Transfers of non-perpetual exclusive licenses in the ordinary course of Borrower’s business (provided that such exclusive licenses are limited to specified fields of use, or specific geographic
location, or custom products developed for the exclusive use of a particular customer approved by at least one of Borrower’s Responsible Officers, and do not in each case or in the aggregate constitute a sale of the Intellectual Property that
is the subject of such licenses); (iv) Transfers of unneeded, worn-out or obsolete Equipment; (v) other Transfers of assets having book values which in the aggregate do not exceed $1,000,000; (vi) Transfers of Intellectual Property developed by the
Borrower which is unrelated to the design and manufacture of products sold in connection with Borrower’s primary business; (vii) Transfers consisting of Permitted Investments, and (viii) other Transfers permitted under Section 7.3 hereof.

  
 7.2 Changes in Business, Ownership, Management or Locations
of Collateral 
  
 Engage in or permit any of its Subsidiaries
to engage in any business other than the businesses currently engaged in by Borrower or reasonably related or incidental thereto. Have a change in Responsible Officers (unless a replacement is approved by a majority of Borrower’s Board of
Directors who are not employees of Borrower (the “Outside Directors”), within 180 days of the date of termination of such Responsible Officer, provided that if a majority of the Outside Directors determinate that such Responsible Officer
shall not be replaced, then Borrower shall notify Agent within 30 days of such determination). Cause a Change of Control to occur. Without contemporaneous written notice, relocate its chief executive office, change its state of formation (including
reincorporation), change its organizational number or name or add any new offices or business locations (such as warehouses) in which Borrower maintains or stores Collateral with a book value of greater than $250,000, provided,
however, that Borrower need not give such notice with respect to locations outside of the United States and Canada. 
  

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 7.3 Mergers or Acquisitions Merge or consolidate, or permit any of its Subsidiaries to merge or
consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person, except where (i) no Event of Default has occurred and is continuing or would
result from such action during the term of this Agreement and (ii) such transaction would not result in a decrease of more than 25% of Tangible Net Worth. Notwithstanding the foregoing, a Subsidiary may merge or consolidate into another Subsidiary
or into Borrower. 
  
 7.4 Indebtedness Create, incur,
assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
  
 7.5 Encumbrance Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any
Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens. 
  
 7.6 Distributions; Investments Directly or indirectly acquire or own
any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to do so. Pay any dividends or make any distribution or payment on or redeem, retire or purchase any capital stock other than
Permitted Distributions. 
  
 7.7 Transactions with
Affiliates Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) 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 non­affiliated Person, (b) transactions constituting Permitted Investments and (c) transactions with Subsidiaries are permitted in Section 7, (d)
transactions set forth on the Schedule. Notwithstanding the foregoing, Borrower shall notify Bank of any transaction under clause (a) of this Section 7.7 no later than 10 days after the consummation of such transaction. The foregoing
notwithstanding, compensation arrangements for Borrower’s senior executive officers shall not to the requirements of this Section 7.7, to the extent that such arrangements are approved by Borrower’s Board of Directors. 
  
 7.8 Subordinated Debt Make or permit any payment on any Subordinated
Debt, except under the terms of the Subordinated Debt, or amend any provision in any document relating to the Subordinated Debt without Bank’s prior written consent. 
  
 7.9 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 important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements
of ERISA, permit 
  

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 a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor
Standards Act or violate any other law or regulation, if the violation could reasonably be expected to cause a Material Adverse Change, or permit any of its Subsidiaries to do so. 
  
 8. EVENTS OF DEFAULT 
  
 Any one of the following is an Event of Default: 
  
 8.1 Payment Default If Borrower fails to pay any of the Obligations within 3 Business Days after their due date (other than Bank Expenses, as
defined in Section 13.1, within 10 days after their due date), however, during such period no Credit Extensions will be made); 
  
 8.2 Covenant Default If Borrower fails to perform any obligation under Section 6.2 or 6.7 or violates any of the covenants contained in Section 7
of this Agreement, or 
  
 (b) If Borrower fails or neglects to
perform, keep, or observe any other material term, provision, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such
other term, provision, condition, covenant or agreement that can be cured, has failed to cure such default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within
the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall
not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default (provided that no Credit Extensions will be made
during such cure period); 
  
 8.3 Material Adverse Change
If (i) a material impairment in the perfection or priority of Bank’s security interest in the Collateral or in the value of such Collateral other than normal depreciation which is not covered by adequate insurance occurs; or (ii) Bank
determines, based on information available to it and in its reasonable judgment, that there is a substantial likelihood that Borrower will fail to comply with the covenants in Section 6.7 (the foregoing being defined as a “Material Adverse
Change”); 
  
 8.4 Attachment If any material portion
of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment, seizure or levy is not removed in 10 days, or if Borrower is enjoined, restrained, or prevented by court order from
conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government
agency and not paid within 10 days after Borrower receives notice. These are not Events of Default if stayed or if a bond is posted pending contest by Borrower (but no Credit Extensions will be made during the cure period); 
  

 -9- 

 8.5 Insolvency If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an
Insolvency Proceeding is begun against Borrower and not dismissed or stayed within 45 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed); 
  
 8.6 Other Agreements If there is a default in any agreement between Borrower and a third party that gives the third
party the right to accelerate any Indebtedness exceeding $2,000,000; 
  
 8.7 Judgments If a money judgment(s) in the aggregate of at least $2,000,000 is rendered against Borrower and is unsatisfied and unstayed for 30 days (but no Credit Extensions will be made before the judgment is stayed or satisfied);
or 
  
 8.8 Misrepresentations If Borrower or any Person
acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation in this Agreement or in any communication delivered to Bank or to induce Bank to enter this Agreement or any Loan
Document. 
  
 9. BANK’S RIGHTS AND REMEDIES 
  
 9.1 Rights and Remedies When an Event of Default occurs and continues
Bank may, without notice or demand, do any or all of the following: 
  
 (a) Declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
  
 (b) Stop advancing money or extending credit for Borrower’s benefit
under this Agreement or under any other agreement between Borrower and Bank; 
  
 (c) Settle or adjust disputes and claims directly with account debtors for amounts, on terms and in any order that Bank considers advisable; notify any Person owing Borrower money of Bank’s security interest in
the funds and verify the amount of the Account. Borrower must collect all payments in trust for Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for
deposit; 
  
 (d) Make any payments and do any acts it considers
necessary or reasonable to protect its security interest in the Collateral. Borrower will assemble the Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain
possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its
premises, without charge, to exercise any of Bank’s rights or remedies; 
  
 (e) Apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 
  

 -10- 

 (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and
sell the Collateral; and 
  
 (g) Dispose of the Collateral
according to the Code. 
  
 9.2 Power of Attorney Effective
only when an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower’s name on any checks or other forms of payment or security; (ii) sign Borrower’s name on any invoice or
bill of lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower’s insurance policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for
amounts and on terms Bank determines reasonable; and (v) transfer the Collateral into the name of Bank or a third party as the Code permits. Bank may exercise the power of attorney to sign Borrower’s name on any documents necessary to perfect
or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank’s appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are
irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 
  
 9.3 Bank Expenses If Borrower fails to pay any amount or furnish any required proof of payment to third persons, Bank may make all or part of the
payment or obtain insurance policies required in Section 6.5, and take any action under the policies Bank deems prudent. Any amounts paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then applicable rate and
secured by the Collateral. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
  
 9.4 Bank’s Liability for Collateral If Bank complies with reasonable banking practices and Section 9207 of the Code, it is not liable for: (a)
the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other person. Except as provided above, Borrower bears
all risk of loss, damage or destruction of the Collateral. 
  
 9.5 Remedies Cumulative Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s
exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay is not a waiver, election, or acquiescence. No waiver is effective unless signed by Bank and then is
only effective for the specific instance and purpose for which it was given. 
  
 9.6 Demand Waiver Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal
of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 
  

 -11- 

 10. NOTICES 
  
 All notices or demands by any party about this Agreement or any other related agreement must be in writing and be personally delivered or sent by an
overnight delivery service, by certified mail, postage prepaid, return receipt requested, or by telefacsimile to the addresses set forth at the beginning of this Agreement. A party may change its notice address by giving the other party written
notice. 
  
 11. CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

  
 California law governs the Loan Documents without regard
to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Santa Clara County, California. 
  
 BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
  
 12. GENERAL PROVISIONS 
  
 12.1 Successors and Assigns This Agreement binds and is for the
benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights under it without Bank’s prior written consent which may be granted or withheld in Bank’s discretion. Bank has the right,
without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits under this Agreement. 
  
 12.2 Indemnification Borrower will indemnify, defend and hold harmless
Bank and its officers, employees, and agents against: (a) all obligations, demands, claims, and liabilities asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses
incurred, or paid by Bank from, following, or consequential to transactions between Bank and Borrower (including reasonable attorneys fees and expenses), except for losses caused by Bank’s gross negligence or willful misconduct. 
  
 12.3 Time of Essence Time is of the essence for the performance of all
obligations in this Agreement. 
  
 12.4 Severability of
Provision Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
  
 12.5 Amendments in Writing, Integration All amendments to this Agreement must be in writing and signed by Borrower and Bank. This Agreement
represents the entire agreement 
  

 -12- 

 about this subject matter, and supersedes prior negotiations or agreements. All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject matter of this Agreement merge into this Agreement and the Loan Documents. 
  

12.6 Counterparts This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, are an original, and all taken together, constitute one Agreement. 
  
 12.7 Survival All covenants, representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding.
The obligations of Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run. 
  
 12.8 Confidentiality All financial information (other than any such information contained periodic reports filed by
Borrower with the Securities and Exchange Commission) disclosed by Borrower to Bank in writing and together with all other written information disclosed by Borrower to Bank that is marked “Confidential” shall be considered confidential for
purposes hereof. In handling any confidential information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made (i) to Bank’s subsidiaries or affiliates in
connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the loans (provided, however, that Bank shall use commercially reasonable efforts to obtain such
prospective transferee’s or purchaser’s agreement to the terms of this provision and any transferee or purchaser, by agreeing to assume the obligations hereunder shall therefore agree to abide by the provisions hereof, including, without
limitation, the provisions of this Section 12.8, and if Bank is unable to secure such potential transferee’s or purchaser’s agreement to this provision or another provision having substantially similar import and, further, if any such
disclosure would violate any material provision of any securities laws or regulations applicable to Borrower, Bank will not make such a disclosure without the prior consent of the Borrower (not to unreasonably withheld) or will take other measures
to preclude any such disclosure from causing or otherwise resulting in any such violation), (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with Bank’s examination or audit and (v) as Bank
considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (a) is in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public
domain after disclosure to Bank; or (b) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
  
 12.9 Attorneys’ Fees, Costs and Expenses In any action or proceeding between Borrower and Bank arising out of
the Loan Documents, the prevailing party will be entitled to recover its reasonable attorneys’ fees and other reasonable costs and expenses incurred, in addition to any other relief to which it may be entitled. 
  

 -13- 

 13. DEFINITIONS 
  

13.1 Definitions In this Agreement: 
  
 “Accounts” are all existing and later arising accounts, contract rights, and other obligations owed Borrower in connection with its sale
or lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guaranties, other security and all merchandise returned or reclaimed by Borrower and Borrower’s Books relating to any of the
foregoing, as such definition may be amended from time to time according to the Code. 
  
 “Advance” or “Advances” is a loan advance (or advances) under the Committed Revolving Line. 
  
 “Affiliate” of a Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by
or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
  
 “Bank Expenses” are all audit fees and expenses and
reasonable costs and expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings). 
  
 “Borrower’s Books” are all Borrower’s books and
records including ledgers, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information. 
  
 “Business Day” is any day that is not a Saturday, Sunday or
a day on which the Bank is closed. 
  
 “Cash
Equivalent” is a cash equivalents and short-term investment that would be shown on Borrower’s consolidated balance sheet in accordance with GAAP. 
  

“Cash Management Services” are defined in Section 2.1.4. 
  
 “Change of Control” is a transaction in which any “person” or “group” (within the
meaning of Section 13(d) or Section 14(d)(2) of the Securities and Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated by the Securities and Exchange Commission under said Act), directly
or indirectly, of greater than thirty-five percent (35%) of the shares of all classes of stock then outstanding of Borrower ordinarily entitled to vote in the election of directors. 
  
 “Closing Date” is the date of the First Amendment. 
  
 “Code” is the Uniform Commercial Code, as applicable.

  
 “Collateral” is the property described on
Exhibit A. 
  

 -14- 

 “Committed Revolving Line” is (i) $20,000,000, so long as Net Cash is $40,000,000 or
more, and (ii) $15,000,0000, so long as Net Cash is $30,000,000 or more, but less than $40,000,000. 
  
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (i) any indebtedness,
lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable;
(ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement
designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business. The amount of a Contingent
Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount
may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
  
 “Credit Extension” is each Advance, Letter of Credit, Exchange Contract, or any other extension of credit by Bank for Borrower’s
benefit. 
  
 “Effective Date” is the date the
conditions in Section 2 of the First Amendment are satisfied or waived in writing by Bank. 
  
 “Equipment” is all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments in which Borrower has any interest. 
  
 “ERISA” is the Employment Retirement Income Security Act of
1974, and its regulations. 
  
 “First Amendment”
is the First Amendment to Loan and Security Agreement, dated as of July 15, 2005, amending the Loan and Security Agreement, dated as of July 14, 2004, between Borrower and Bank, to which this Agreement is attached. 
  
 “FX Forward Contract” is defined in Section 2.1.3.

  
 “FX Reserve” is defined in Section 2.1.3.

  
 “GAAP” is generally accepted accounting
principles. 
  
 “Indebtedness” is (a)
indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c)
capital lease obligations and (d) Contingent Obligations. 
  

 -15- 

 “Insolvency Proceeding” are proceedings by or against any Person under the United States
Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief. 

 
 “Inventory” is present and future inventory in which
Borrower has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of service, of every kind and
description now or later owned by or in the custody or possession, actual or constructive, of Borrower, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts or other proceeds (including
insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title. Inventory shall not include those Inventory processed and stored at the facilities outside of the United States. 
  
 “Investment” is any beneficial ownership of (including
stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person. 
  
 “Letter of Credit” is defined in Section 2.1.2. 
  

“Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
  
 “Loan Documents” are, collectively, this Agreement, any
note, or notes or guaranties executed by Borrower or other Persons with respect hereto, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, extended or
restated. 
  
 “Material Adverse Change” in
defined in Section 8.3. 
  
 “Net Cash” as of any
date is the sum of (i) unrestricted cash, and (ii) Cash Equivalents, less Indebtedness outstanding (which includes for this purpose the undrawn face amount of Letters of Credit outstanding). 
  
 “Obligations” are debts, principal, interest, Bank Expenses
and other amounts Borrower owes Bank now or later, including cash management services, letters of credit and foreign exchange contracts, if any and including interest accruing after Insolvency Proceedings begin, and debts, liabilities, or
obligations of Borrower assigned to Bank. 
  
 “Permitted
Distributions” are: 
  
 (a) purchases of capital stock
from former employees, consultants and directors; 
  
 (b)
distributions or dividends consisting solely of Borrower’s capital stock; 
  

 -16- 

 (c) purchases for value of any rights distributed in connection with any stockholder rights plan;

  
 (d) exchanges of securities of Borrower for other securities
of Borrower that do not provide for any mandatory dividend or redemption prior to the Maturity Date; and 
  
 (e) other distributions, dividends or redemptions, retirements or purchases of Borrower’s capital stock, provided that after giving effect to the
same Borrower remains in compliance with Section 6.7. 
  
 “Permitted Indebtedness” is: 
  
 (a)
Borrower’s indebtedness to Bank under this Agreement or any other Loan Document; 
  
 (b) Indebtedness existing on the Closing Date and shown on the Schedule; 
  
 (c) Subordinated Debt; 
  
 (d) Indebtedness to trade creditors incurred in the ordinary course of business; 
  
 (e) Indebtedness secured by Permitted Liens. 
  
 (f) Indebtedness of Borrower to any Subsidiary and Contingent Obligations of any Subsidiary with respect to obligations of
Borrower (provided that the primary obligations are not prohibited hereby), Indebtedness of any Subsidiary to any other Subsidiary and Contingent Obligations of any Subsidiary with respect to the obligations of any other Subsidiary (provided that
the primary obligations are not prohibited hereby), and Indebtedness of any Subsidiary to Borrower and Contingent Obligations of Borrower with respect to the obligations of another Subsidiary (provided that the primary obligations are not prohibited
hereby) that are permitted under clause (g) of the definition of Permitted Investments; 
  
 (g) obligations (contingent or otherwise) of Borrower or any Subsidiary existing or arising under any Swap Contract; provided that such obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets or property held or reasonably anticipated by such Person, or changes in the value of securities issued by such Person and not for
the purposes of speculation; 
  
 (h) Indebtedness consisting of
reimbursement obligations under letters of credit issued for the benefit of any landlord or other Person or guarantees required to secure rental payments on any real estate lease; 
  
 (i) Indebtedness of any Person existing at the time such Person is merged with or into Borrower or becomes a Subsidiary as
otherwise permitted hereby, provided that such Indebtedness is not incurred in connection with, or in contemplation of, such Person merging with and into the Borrower or becoming a Subsidiary of the Borrower. 
  

 -17- 

 (j) Indebtedness with respect to surety, appeal, indemnity, performance or other similar bonds incurred
in the ordinary course of business; 
  
 (k) Other Indebtedness not
otherwise permitted by Section 7.4 so long as Borrower is in compliance with Section 6.7; and 
  
 (l) Extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (k) above, provided that the principal amount thereof is not increased or the terms
thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
  
 “Permitted Investments” are: 
  
 (a) Investments shown on the Schedule and existing on the Closing Date; 
  
 (b) (i) marketable direct obligations issued or unconditionally guaranteed by the United States or its agency or any State
maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor’s Corporation or Moody’s Investors Service, Inc., (iii)
Bank’s certificates of deposit issued maturing no more than 1 year after issue; and Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto)
has been approved by Bank; 
  
 (c) Investments permitted by
Borrower’s investment policy that has been approved by its board of directors (or a committee thereof) and Bank; 
  
 (d) Investments consisting of deposit and investment accounts in the name of Borrower; 
  
 (e) Investments consisting of extensions of credit to Borrower’s or its Subsidiaries’ customers in the nature of
accounts receivable, prepaid royalties or notes receivable arising from the sale or lease of goods, provision of services or licensing activities of Borrower; 
  

(f) Investments received in satisfaction or partial satisfaction of obligations owned by financially troubled obligors; 
  
 (g) Investments acquired in exchange for any other Investments in connection
with or as a result of a bankruptcy, workout, reorganization or recapitalization; 
  
 (g) Investments of Subsidiaries in or to other Subsidiaries or Borrower and Investments by Borrower in Subsidiaries to the extent that Borrower would be in compliance with Section 6.7 after giving effect thereto;

  

 -18- 

 (h) Deposits, repayments and other credits to suppliers made in the ordinary course of business;

  
 (i) Investments received in a transaction permitted under
Section 7.3; 
  
 (j) Investments consistent of notes receivable
of, or prepaid royalties and other credit extensions, to customers and suppliers, in each case who are not Affiliates in the ordinary course of business; 
  
 (k) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business
and (ii) loans to employees relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plan agreements approved by Borrower’s Board of Directors as long as no cash proceeds are distributed
in connection therewith; and 
  
 (l) Other Investments, if, on the
date of incurring any Investments pursuant to this clause, Borrower is in compliance with Section 6.7. 
  
 “Permitted Liens” are: 
  
 (a) Liens existing on the Closing Date and shown on the Schedule or arising under this Agreement or other Loan Documents; 
  
 (b) Liens for taxes, fees, assessments or other government charges or levies,
either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s security interests; 
  
 (c) Purchase money Liens (including with respect to capital leases) (i) on
property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) acquired or held by Borrower or its Subsidiaries incurred for financing such property (including accessions,
additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof), or (ii) existing on property (and accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds
thereof) when acquired, if the Lien is confined to such property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof); provided, that the aggregate principal amount of the
Indebtedness secured by such Liens may not exceed Five Million Dollars ($5,000,000) at any time; 
  
 (d) Licenses or sublicenses granted in the ordinary course of Borrower’s business and, with respect to any licenses where Borrower is the licensee,
any interest or title of a licensor or under any such license or sublicense, if the licenses and sublicenses permit granting Bank a security interest; 
  
 (e) Leases or subleases entered into in the ordinary course of Borrower’s business, including in connection with Borrower’s leased premises or
leased property; 
  

 -19- 

 (f) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens
described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 
  
 (g) Liens arising from judgments, decrees or attachments in circumstances not
constituting an Event of Default under Section 8.4 or 8.7; 
  
 (h)
Liens in favor of other financial institutions arising in connection with Borrower’s deposit accounts or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such
accounts; 
  
 (i) Liens to secure payment of workers’
compensation, employment insurance, old age pensions, social security or other like obligations incurred in the ordinary course of business; 
  
 (j) Easements, rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in amount,
and which do no in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; and 
  
 (k) Liens on cash relating to Borrower’s real property ownership or
leases. 
  
 (l) Carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business which are not overdue for a period of more than thirty (30) days or which are being contested in good faith and by appropriate
proceeding if adequate reserves with respect thereto are maintained on the books of the applicable Person; 
  
 (m) Deposits to secure the performance of bids, trade contracts (other than for borrowed money), contracts for the purchase of property, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case, incurred in the ordinary course of business and not representing an obligation for borrowed money; 
  
 (n) Liens in favor of customs or revenue authorities arising as a matter of
law to secure payment of customs duties in connection with the importation of goods; 
  
 (o) Liens on insurance proceeds in favor of insurance companies granted solely to secure financed insurance premiums; and 
  
 (p) Liens not otherwise permitted, provided that the amount secured by all such Liens is not in excess of $500,000. 
  
 “Person” is any individual, sole proprietorship,
partnership, limited liability company, joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

  

 -20- 

 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it
is not Bank’s lowest rate. 
  
 “Qualified
IPO” is the first underwritten sale of Borrower’s common stock to the public pursuant to a registration statement under the Securities Act of 1933, as amended, in which the Borrower issues shares for its own account for an aggregate
net cash proceeds received by Borrower of not less than $60,000,000. 
  
 “Responsible Officer” is each of the Chief Executive Officer, the President, the Chief Financial Officer and the Controller of Borrower. 
  
 “Revolving Maturity Date” is the earlier of (i) the first anniversary of the Qualified IPO closing, or (ii)
September 30, 2006. 
  
 “Rights” as applied to
the Collateral, means the Borrower’s rights and interests in, and powers with respect to, that Collateral, whatever the nature of those rights, interests and powers and, in any event, including Borrower’s power to transfer rights in such
Collateral to Bank. 
  
 “Schedule” is any
attached schedule of exceptions. 
  
 “Swap
Contract” is any agreement or instrument described under clause (iii) of the definition of Contingent Obligations. 
  
 “Subordinated Debt” is debt incurred by Borrower subordinated to Borrower’s indebtedness owed to Bank and which is reflected in a
written agreement in a manner and form acceptable to Bank and approved by Bank in writing. 
  
 “Subsidiary” is for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Person or one
or more Affiliates of the Person. 
  
 “Tangible Net
Worth” is, on any date, the consolidated total assets of Borrower and its Subsidiaries minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, patents, trade and
service marks and names, copyrights and research and development expenses except prepaid expenses, and (c) reserves not already deducted from assets, and (ii) Total Liabilities. 
  

 -21- 

 “Total Liabilities” is on any day, obligations that should, under GAAP, be classified as
liabilities on Borrower’s consolidated balance sheet, including all Indebtedness, and the current portion of Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt. 
  
 BORROWER: 
  
 ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED 
  

			
	 By: /s/ Richard Williams

	  
 Title: President, CEO and CTO

	
	BANK:
	
	SILICON VALLEY BANK
	
	 By: /s/ Teresa Li

	  
 Title: VP and Relationship Manager

	  
 Effective Date: 7/15/2005

  

 -22- 

 EXHIBIT A 
  
 The Collateral consists of all of Borrower’s right, title and interest in and to the following whether owned now or
hereafter arising and whether the Borrower has rights now or hereafter has rights therein and wherever located: 
  
 All goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and
trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 
  
 All inventory, (except for those processed and stored at the facilities
outside of the United States), now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is
temporarily out of Borrower’s custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of
title representing any of the above; 
  
 All contract rights and
general intangibles (as such definitions may be amended from time to time according to the Code), now owned or hereafter acquired, including, without limitation, goodwill, trademarks, servicemarks, trade styles, trade names, patents, patent
applications, leases, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer discs, computer tapes, literature, reports, catalogs, design
rights, income tax refunds, payments of insurance and rights to payment of any kind,; 
  
 All now existing and hereafter arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology
or the rendering of services by Borrower (as such definitions may be amended from time to time according to the Code) whether or not earned by performance, and any and all credit insurance, insurance (including refund) claims and proceeds,
guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower; 
  
 All documents, cash, deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets, letters of credit,
letter of credit rights, certificates of deposit, instruments and chattel paper and electronic chattel paper now owned or hereafter acquired and Borrower’s Books relating to the foregoing; 
  
 All copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired; all trade secret rights, including all rights to unpatented inventions, know-how, operating manuals, license
rights and agreements and confidential information, now owned or hereafter acquired; all mask work or similar rights available for the protection of semiconductor chips, now owned or hereafter acquired; all claims for damages by way of any past,
present and future infringement of any of the foregoing; and 
  

 A-1 

 All Borrower’s Books relating to the foregoing and any and all claims, rights and interests in any
of the above and all substitutions for, additions and accessions to and proceeds thereof. 
  
 Notwithstanding anything herein to the contrary, in no event shall the Collateral include in any of the outstanding capital stock of a controlled foreign corporation (as such term is defined in the Internal Revenue
Code of 1986, as amended) in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporation entitled to vote. 
  
 Notwithstanding the foregoing, the Collateral shall not be deemed to include any copyrights, copyright applications, copyright registration and like
protection in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired; any patents, patent applications and like protections including without limitation improvements, divisions,
continuations, renewals, reissues, extensions and continuations-in-part of the same, trademarks, servicemarks and applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized by such
trademarks, any trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, license rights and agreements and any confidential information, now owned or hereafter acquired; or any claims for damage by way of any
past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”), except that the Collateral shall include the Proceeds of all the Intellectual Property that are accounts, (i.e. accounts receivable)
of Borrower, or general intangibles consisting of rights to payment, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in such
accounts and general intangibles of Borrower that are Proceeds of the Intellectual Property, then the Collateral shall automatically, and effective as of the Closing Date, include the Intellectual Property to the extent necessary to permit
perfection of Bank’s security interest in such accounts and general intangibles of Borrower that are Proceeds of the Intellectual Property. 
  

 A-2 

 FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT 
  
 This First Amendment to Loan and Security Agreement is entered into as of
July 15, 2005, by and between Advanced Analogic Technologies, Incorporated (the “Borrower”) and Silicon Valley Bank (“Bank”). 
  

RECITALS 
  
 WHEREAS, Bank has extended a Committed Revolving Line to Borrower pursuant to the Loan and Security Agreement, dated July 13, 2004, by and between
Borrower and Bank (as may be amended from time to time, the “Loan Agreement”; defined terms used herein without definition shall have the meanings set forth in the Amended and Restated Loan Agreement attached hereto as Attachment
A); 
  
 WHEREAS, Borrower desires that Bank amend the Loan
Agreement to provide that upon Borrower’s completion of its initial public offering of common stock (i) the Committed Revolving Line will become a non-formula line of credit and Bank’s commitment thereunder will be increased, (ii) the
interest rate for the Committed Revolving Line will be adjusted, and (iii) the Revolving Maturity Date will be extended; and 
  
 WHEREAS, Bank is willing to so amend the Loan Agreement, on the conditions specified herein, and Borrower is willing to agree to such conditions;

  
 NOW, THEREFORE, IT IS AGREED THAT: 
  
 1. AMENDMENT AND RESTATEMENT OF THE LOAN AGREEMENT. Effective upon
the satisfaction of the conditions set forth in Section 2, the Loan Agreement shall be amended and restated to read in its entirety as set forth in Attachment A hereto. 
  
 2. CONDITIONS TO EFFECTIVENESS. This First Amendment shall be effective immediately but the amendment and restatement
of the Loan Agreement set forth in Section 1 shall be effective upon: 
  
 (a) The closing of the first underwritten sale of Borrower’s common stock to the public pursuant to a registration statement under the Securities Act of 1933, as amended in which the Borrower issues shares for
its own account for an aggregate net cash proceeds received by Borrower of not less than $60,000,000; and 
  
 (b) The payment to Bank of a fully earned, non-refundable success fee in the amount of $75,000. 
  
 3. NO DEFENSES OF BORROWER. Borrower agrees that, as of the date
hereof, it has no defenses against paying any of the Obligations. 
  
 4. CONDITIONS. The effectiveness of this Amendment is conditioned upon payment of all Bank Expenses relating to this Amendment: 
  
 5. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations and Loan Agreement hereunder, Bank is relying
upon Borrower’s representations, warranties, and agreements, as set forth in the Loan Documents as modified by this Amendment. Except as expressly modified pursuant to this Amendment, the terms of the Loan Documents remain unchanged and in full
force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Amendment in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Amendment shall constitute a
satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Loan Documents as in effect prior to the effectiveness of this Amendment, unless the party is expressly released by
Bank in writing. Unless expressly released herein, no maker, endorser, or guarantor will be released by virtue of this Amendment. The terms of this paragraph apply not only to this Amendment, but also to all subsequent loan modification agreements.

  

 1 

 6. COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different
parties in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this Amendment. 
  
 This Amendment is executed as of the date first written above. 
  

							
	BORROWER:	 	BANK:
		
	 ADVANCED ANALOGIC TECHNOLOGIES,
 INCORPORATED
	 	SILICON VALLEY BANK
				
	By:	 	 /s/ Richard K. Williams

	 	By:	 	 /s/ Teresa Li

				
	Name:	 	 Richard K. Williams
	 	Name:	 	 Teresa Li

				
	Title:	 	 President, CEO and CTO
	 	Title:	 	 VP and Relationship Manager

  

 2 

 ATTACHMENT “A” 
 TO FIRST AMENDMENT 
  
 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	TO:	  	SILICON VALLEY BANK
	 	  	3003 Tasman Drive
	 	  	Santa Clara, CA 95054
		
	FROM:	  	ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED

  
 The undersigned
Responsible Officer of Advanced Analogic Technologies, Incorporated (“Borrower”) certifies that to the best of Responsible Officer’s knowledge, under the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the “Agreement”), (i) Borrower is in compliance for the period ending 6/30/05 with all required covenants except as noted below and (ii) all representations and warranties in the Agreement are true and correct in all material
respects on this date. In addition, the undersigned certifies that Borrower, and each Subsidiary, has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith
with adequate reserves under GAAP. Attached are the required documents supporting the certification. The Officer certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one
period to the next except as explained in an accompanying letter or footnotes. The Responsible Officer acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of
the Agreement, and that compliance is determined not just at the date this certificate is delivered. 
  
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

										
	 Reporting Covenants Prior to Qualified IPO

	  	 Required        

	  	Complies

	 Monthly financial statements + CC
	  	Monthly within 30 days	  	Yes	  	No
	 Annual (Audited)
	  	FYE within 120 days	  	Yes	  	No
	 A/R & A/P Agings
	  	Monthly within 20 days	  	Yes	  	No
	 A/R Audit
	  	Initial and Semi-Annual	  	Yes	  	No
	 Borrowing Base Certificate
	  	Monthly within 30 days	  	Yes	  	No
				
	 Financial Covenant Prior to Qualified IPO

	  	 Required

	  	Actual

	  	Complies

	 Maintain on a Monthly Basis:
	  	 	  	 	 	  	 	  	 
	   Minimum Liquidity Coverage
	  	2.50:1.00	  	 	7.89:1.00	  	Yes	  	No
			
	 Reporting Covenants After Qualified IPO

	  	 Required

	  	Complies

	 Compliance Certificate
	  	Quarterly within 45 days	  	Yes	  	No
	 Quarterly on Form 10-Q
	  	Quarterly within 45 days	  	Yes	  	No
	 Annual on Form 10-K(Audited)
	  	FYE within 180 days	  	Yes	  	No
				
	 Financial Covenant After Qualified IPO

	  	 Required

	  	Actual

	  	Complies

	 Maintain at All Times:
	  	 	  	 	 	  	 	  	 
	   Minimum Net Cash
	  	$30,000,000	  	$	            	  	Yes	  	No

  
 Borrower only has deposit accounts
located at the following institutions:                             . 
  

 3 

 Comments Regarding Exceptions: See Attached. 
  

			
	 	 	BANK USE ONLY
		
	Sincerely,	 	 Received by:

                                        
     AUTHORIZED SIGNER

		
	Advanced Analogic Technologies, Incorporated	 	 Date:

	  
 /s/ Ashok Chandran

 SIGNATURE
	 	  
 Verified:

                                        
     AUTHORIZED SIGNER

	  
 Corporate Controller
 TITLE
	 	  
 Date:

	  
 7/15/05
 DATE
	 	  
 Compliance
Status:                                       
                     Yes    No

  

 4Prepared by R.R. Donnelley Financial -- Joint Development Agreement

 Exhibit 10.9 
  

	[***]	CERTAIN INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 406 OF THE
SECURITIES ACT OF 1933, AS AMENDED. 

  
 JOINT
DEVELOPMENT AGREEMENT 
  
 This JOINT DEVELOPMENT AGREEMENT
(“Agreement”) is entered into as of June 1, 1999, by and between Advanced Analogic Technologies, Inc. (“AATI”), a California corporation with offices at 1250 Oakmead Parkway, Suite 310, Sunnyvale, CA 94086 and GEM
Services, Inc. (“GEM”), a Cayman Islands corporation with offices at 43170 Osgood Road, Fremont, CA 94538. GEM and AATI are hereinafter also referred to, singly, as the “Party,” and collectively, as the
“Parties.” 
  
 RECITALS 

 
 A. AATI has established capabilities in designing, engineering,
manufacturing, and marketing certain semiconductor integrated circuit and discrete devices. 
  
 B. GEM has established capabilities as an outsourcing company for designing, engineering, manufacturing, and marketing packages and packaging technologies for semiconductor integrated circuit and discrete devices.

  
 C. GEM and AATI have decided that it is in their mutual
interests to cooperate in the development of certain packages commonly employed in the manufacturing, packaging and assembly of discrete and integrated circuit devices as set forth herein. 
  
 NOW, THEREFORE, in consideration of the recitals and other good and valuable
consideration the PARTIES agree as follows: 
  

	1.	NATURE & SCOPE OF AGREEMENT & RELATIONSHIP OF THE PARTIES 

  
 This Agreement defines guidelines and legal obligations for GEM and AATI to engage in cooperative development efforts of packages, packaging
techniques, and packaging related manufacturing techniques. The Agreement also prescribes guidelines and obligations for the manufacturing of packages, whenever applicable. The Agreement describes an initial co-development effort in specifics, and
sets forth a set of guidelines for future co-developments whose scope, content, and innovations have yet to be defined and agreed upon by the Parties (the initial development final deliverable and agreed upon subsequent development final
deliverables are collectively referred to as “Products”). For the purposes of this Agreement, “Processes” means those certain related processes, assembly and test techniques and other novel manufacturing and
engineering know-how and innovation discovered, conceived, or developed in the course of the Parties cooperative development effort of the Products. 
  
 1.1 First Co-Development Effort: The Parties agree to co-develop a JW-Type Package comprising a proprietary modification of a plastic
surface-mounted-package combining a J-lead type leaded package with a plastic body expanded to improve the lead-frame die-pad area (hence the nomenclature JW-Type packaging, an acronym for the J-lead Widebody package construction) as further
described in Annex A-1. The co-developed JW-Type Package of this Agreement houses a larger die and provides other improvements over conventional gull-wing and standard J-lead surface mount packages available today. The Parties also agree to
co-develop any related Processes needed to implement a JW-Type Package. The functional, mechanical, technical and reliability specifications of such a JW-Type Package (the “Product Success Criteria”) are to be included along with a
mutually agreed upon work and development plan (“Development Plan”) described in Annexes A-1 and B-1. The Parties agree to use commercially 
  

 
reasonable efforts to meet the Product Success Criteria, e.g. in this specific case to design, develop, test, and qualify the new JW-Type Package and to
bring it to a state of production readiness. The status of the JW-Type Package development at the signing date of this Agreement is also described in Annex A-1. 
  
 1.2 Subsequent Co-Development Efforts: The Parties may from time-to-time agree to co-develop other new
packaging-related Products or Processes that may be mutually beneficial to both Parties; the scope and the extent of such developments are to be attached as subsequent Annexes A’s and B’s to this Agreement (e.g. Annex A-2, Annex A-3, etc)
and each such Product shall be described in a mutually agreed upon Development Plan. The functional, mechanical, technical, and reliability specifications of such a Product Success Criteria are to be included along with the Development Plan in the
applicable Annex. Only key criteria are to be listed in the Product Success Criteria (it is not meant to replace technical knowledge and common-sense engineering practices). In the event that the Development Plan includes the realization of
working prototypes or manufacturable product, the Parties agree to use commercially reasonable efforts to design, develop, test, and qualify the agreed-upon new package, process, or technique and to bring it to a state of production readiness
consistent with the Development Plan. Except in case of Section 1.1 (JW-Type Package), there is no presumption that the Development Plan for any Product or Process must or should result in a manufactured Product or marketed Process. In some
instances the Parties may agree that reduction to practice may be limited to a patent application. 
  
 1.3 Independent Contractors: This Agreement is not intended to and does not constitute a joint venture, partnership or other formal business
organization. Each Party hereto shall act as an independent contractor solely and shall not, except as specifically authorized and provided herein, act, or be construed, as an agent for the other Party for any purpose whatsoever and no Party shall
have the authority to bind the other or make any commitment or incur any costs or expenses for or in the name of the other Party except to the extent prescribed herein. 
  
 1.4 Development Expenses: Except as otherwise provided herein or by subsequent written contract, each Party shall
bear the expenses incurred by it with respect to this Agreement. 
  
 1.5 Patent Prosecution Expenses: Development expenses are separate and distinct from patent prosecution expenses, which are provided for in Section 2.6. 
  
 1.6 Key Employee: Richard K. Williams, an individual residing at 10292 Norwich Ave. Cupertino, CA 95014 is hereby
designated as a “Key Employee” under this Agreement. If Williams is for any reason, without GEM’s consent, no longer an AATI employee, such event shall give each Party the right to terminate any further development obligations
under this Agreement except for those programs and obligations in which it already is engaged. AATI represents that it has entered into an agreement with Richard K. Williams, and that he exclusively assigns AATI the authority, the right, and the
requirement to enter this Agreement with GEM for any and all of his innovations associated with (but specifically limited to) cooperative development efforts between GEM and AATI as set forth herein. 
  

	2.	INTELLECTUAL PROPERTY 

  
 It is anticipated in the course of package co-development efforts between GEM and AATI, that intellectual property, inventive know-how, and patentable
material may and will likely result. The Intellectual Property (defined below) from this combined effort is separate and distinct from independently developed Intellectual Property that each of the Parties may utilize in the co-development.

  

 2.1 Definition: For the purposes of this Agreement, “Intellectual Property” means
any intellectual property right of any kind or nature, including without limitation, invention (whether patentable or not), utility patents, design patents, copyrights and works of authorship, software, mask works, technology, devices, apparatus,
processes, methods, know-how, trade secrets and confidential or proprietary information. Annex C-l lists the Intellectual Property. 
  
 2.2 AATI Intellectual Property: Except as otherwise provided in Section 2.4, all Intellectual Property conceived or created by or for AATI pursuant
to its responsibilities under this Agreement (collectively, “AATI Intellectual Property”) shall as between the Parties, be the sole and exclusive property of AATI, and AATI will retain any and all rights to file any patent and/or
copyright applications thereon. 
  
 2.3 GEM Intellectual
Property: Except as otherwise provided in Section 2.4, all Intellectual Property conceived or created by or for GEM pursuant to its responsibilities under this Agreement (collectively, “GEM Intellectual Property”) shall as
between the Parties, be the sole and exclusive property of GEM, and GEM will retain any and all rights to file any patent and/or copyright applications thereon. 
  

2.4 Jointly Developed Intellectual Property: For the purposes of this Agreement and unless otherwise designated under this Section 2.4 or any
applicable Annex A, any Intellectual Property first discovered, conceived or created jointly by one or more of GEM employees and one or more of AATI employees (including the Key Employee’s related contributions) in the course of
performing development under this Agreement, shall be considered jointly-developed Intellectual Property (collectively, “Joint Intellectual Property”). 
  
 (a) Ownership of “First Co-Development Effort” Joint Intellectual Property (JW-Type
Package): Notwithstanding Section 2.4 above and unless otherwise agreed upon by the Parties in writing, all Joint Intellectual Property regarding the JW-Type Package referred to in Section 1.1 of this Agreement (collectively,
“JW-Package Intellectual Property”) will be exclusively owned by GEM free and clear from any restrictions by AATI. 
  
 (b) Ownership of Packaging-Related “Subsequent Co-Development Efforts” Joint Intellectual Property:
Notwithstanding Section 2.4 above and unless otherwise agreed upon by the Parties in writing, all Joint Intellectual Property regarding Subsequent Co-Development Efforts between GEM and AATI (as referred to in Section 1.2) limited solely within the
field of semiconductor packaging and assembly methods, semiconductor packages, lead frames, packaging and assembly equipment, handlers, test equipment and/or other packaging-related apparatus and methods (collectively “Packaging Intellectual
Property”) will be exclusively owned by GEM, unless otherwise specified in writing between GEM and AATI. Such ownership will be free and clear from any restrictions by AATI. 
  
 (c) Ownership of Non-Package-Related “Subsequent Co-Development Efforts” Joint
Intellectual Property: This Agreement does not provide for nor anticipate Joint Intellectual Property other than that related to JW-Package Intellectual Property or Packaging Intellectual Property. Accordingly, AATI does not agree to, nor
implies any assignment of its Intellectual Property regarding the design of semiconductor devices, processes, discrete power devices and transistors, wafer processing, circuit design, or other non-packaging related technology (collectively,
“Semiconductor Intellectual Property”). Notwithstanding Section 2.4 above, all Joint Intellectual Property regarding Semiconductor Intellectual Property will be exclusively owned by AATI, unless otherwise specified in writing
between GEM and 

  

 
AATI. Such ownership will be free and clear from any restrictions by GEM. Unless otherwise agreed upon by the Parties in writing, any Joint Intellectual
Property which does not constitute JW Package Intellectual Property, Packaging Intellectual Property or Semiconductor Intellectual Property, shall be jointly owned by the Parties without a duty of accounting. 
  
 2.5 “Joint Intellectual Property” Derivatives: For the
purpose of this Agreement, any improvement, modification, derivative, optimization, or other innovation resulting from or requiring Joint Intellectual Property shall likewise be considered as Joint Intellectual Property and remain subject to and
bound by the terms of this Agreement, including all inventive matter included in any and all “continuation” and “continuation in part” (CIP) patent applications or foreign filings. 
  
 2.6 “Joint Intellectual Property” Patent Prosecution: Under
this Agreement, the Parties agree to establish a Development Committee (defined below) will (i) determine whether the Parties intend to seek intellectual property protection of the Joint Intellectual Property, (ii) decide which claims and in what
countries patent prosecution of Joint Intellectual Property will be executed, (iii) determine whether “reduction to practice” should and will be extended to include producing functional prototypes (or limited to the filing of patent
applications) and (iv) determine which Party shall have primary responsibility for obtaining intellectual property protection for an invention or work of authorship and allocate the costs of the determined Intellectual Property filings and
prosecution between the Parties. 
  
 (a)
Patent Prosecution of Joint Intellectual Property of JW-Type Package and Packaging Intellectual Property: Notwithstanding Section 2.6 to the contrary and unless otherwise determined by the Development Committee, GEM shall be responsible for
all costs to prepare, prosecute, issue and maintain patents regarding the “JW-Package Intellectual Property” and “Packaging Intellectual Property.” 
  
 (b) Patent Prosecution of Joint Intellectual Property Not Approved By the Development Committee:
Notwithstanding Section 2.6 to the contrary and in the event that the Development Committee is unable to agree to file an application or applications regarding Joint Intellectual Property, the following provisions shall apply: 
  
 (1) Responsibility for Filings: Unless otherwise
determined by the Development Committee, GEM shall have the initial right to control the preparation, filing, prosecution and maintenance of any patent applications and patents within the Joint Intellectual Property. GEM shall keep the Development
Committee reasonably informed as to the status of such matters, including without limitation providing the Development Committee with copies of any substantive documents that GEM receives from the patent or copyright office promptly after receipt,
and by providing the Development Committee the opportunity, as far in advance of filing dates as reasonably possible, to review and comment on any documents which will be filed. AATI shall reasonably cooperate with and assist GEM and the Development
Committee in connection with such activities. 
  
 (2) Abandonment of Prosecution: If GEM decides that it no longer desires to prepare, file, prosecute or maintain an application or Intellectual Property right as provided in this Section 2.6 in any country or countries, GEM shall
give written notice to AATI of such election, but in no case later than 60 days before any required action relating to the filing, prosecution or maintenance of such patent application or Intellectual Property right. Upon such notice, AATI shall
have the right, but not the obligation, to file and maintain such Intellectual Property right or patent application in its own name and at 

  

 
its own expense and GEM shall reasonably cooperate with and assist AATI in connection with such activities. 
  
 2.7 Enforcement of Joint Intellectual Property. 
  
 (a) Enforcement Rights: Subject to the provisions of
this Section 2.7, if either Party reasonably believes that any Joint Intellectual Property is infringed or misappropriated by a third party, such Party shall promptly notify the Development Committee. In such event, GEM shall have the initial right
(but not the obligation) to enforce such technology with respect to such infringement, or defend any declaratory judgment action with respect thereto (for purposes of this Section 2.7, an “Enforcement Action”). AATI shall cooperate
and joint such Enforcement Action. If GEM chooses not to enforce the patent, AATI may request GEM to enforce the applicable Intellectual Property. 
  
 (b) Initiating Actions: If GEM fails to initiate an Enforcement Action within sixty (60) days of AATI’s request, AATI may
initiate an Enforcement Action against such infringement or misappropriation and GEM shall cooperate in such Enforcement Action. The Party initiating or defending any such Enforcement Action shall keep the other Party reasonably informed of the
progress of any such Enforcement Action, and such other Party shall have the right to participate with counsel of its own choice. The Parties shall share equally in all costs and expenses incurred in any such Enforcement Action, except as set forth
in Section 2.7 (c) below. In settling any Enforcement Action, neither Party shall enter into any agreement, license or settlement that materially affects the other Party’s rights or interests without such Party’s written consent, which
consent shall not be unreasonably withheld. 
  
 (c) Recoveries: Any recovery received as a result of any Enforcement Action to enforce the Joint Intellectual Property under this Section 2.7 shall be used first to reimburse the Parties for the costs and expenses (including
attorneys’ and professional fees) incurred in connection with such Enforcement Action, and the remainder of the recovery shall be shared equally between the Parties; provided, however, if either Party has requested not to share in the
costs and expenses of the Enforcement Action and the Party prosecuting such action has agreed to such request, the other Party prosecuting such action retain one hundred percent (100%) of the amounts recovered in such Enforcement Action. 

 
 2.8 No Implied Transfer of Intellectual Property: Except for the
limited licenses granted regarding Joint Intellectual Property herein, nothing in this Agreement shall transfer any right title or interest in any Intellectual Property owned, conceived, or created solely by GEM to AATI. Conversely, except for the
limited licenses granted regarding Joint Intellectual Property herein, nothing in this Agreement shall transfer any right title or interest in any Intellectual Property owned, conceived, or created solely by AATI to GEM. 
  

	3.	DEVELOPMENT COMMITTEE 

  
 The PARTIES shall establish a joint development committee (hereinafter “Development Committee”), which has the overall responsibility for
providing oversight for the joint development effort outlined in this Agreement. The composition, operation, detailed responsibilities, and limits upon the authority of the Development Committee shall be as follows: 
  
 3.1 Membership: The Development Committee shall be composed of one (1)
representative of GEM and one (1) representative of AATI. An alternate from each Party shall be also nominated, who in case of absence of a Party’s representative shall be fully empowered to act on behalf of the Party. Each 

  

 
Party may replace its representatives and the alternate upon giving notice to the Chairman and the other Party. 
  
 3.2 Meetings: The Chairmanship of the Development Committee shall be
alternated between the Parties every six calendar months with GEM chairing the Development Committee from January 1 through June 30, and AATI chairing such Development Committee from July 1 through December 31 of each year. Meetings of the
Development Committee shall be held, in principle, at least quarterly, but should circumstances so require, a meeting may be convened at any time at the request of either of the Parties hereto. The decisions of the Development Committee shall be
made by unanimous agreement and shall be binding on the Parties subject to each Party’s executive management’s or Board of Director’s approval, if any, and then represent their decisions under this Agreement. The Chairman shall
prepare minutes of each meeting of the Development Committee and shall distribute copies to each Party in a timely manner. Such minutes shall be deemed to have been accepted by the Parties unless changes are requested in writing within thirty (30)
days of distribution. Such minutes (as amended and accepted by each Party) shall represent a complete and representative record of the decisions made by the Development Committee. Any development activities not covered by this Agreement may be
considered or investigated by the Development Committee, but neither Party shall have an obligation to participate in such development and such development activities shall be governed by a separate agreement in writing between AATI and GEM. In such
cases, the Development Committee can recommend allocation of costs, division of responsibilities, and ownership rights of such Intellectual Property not covered by this Agreement, as detailed in said separate agreement acknowledged and approved by
both AATI and GEM. 
  
 3.3 Limitations on the Power of the
Development Committee: Except as expressly provided for elsewhere in this Agreement, the Development Committee shall have no power to alter or vary any of the provisions of this Agreement nor to dissolve the Development Committee nor take any
action contrary to the intent or terms of this Agreement. The Development Committee shall not have the power to incur expenditure or financial liability on behalf of the Parties beyond that provided by this Agreement; provided, however, that the
Development Committee can agree upon new tasks to be delegated to each of the Parties not originally specified in Annex A-l or Annex B-l and propose such tasks to the Parties. Each Party can only be bound to perform any such additional task upon its
written consent thereto, which agreement may be provided in its sole discretion. THE DECISION MAKING POWERS OF THE DEVELOPMENT COMMITTEE SHALL NOT SUPERSEDE THE PREROGATIVE OF EITHER PARTY TO ACT UNILATERALLY AS PROVIDED BY THIS AGREEMENT OR AS
OTHERWISE PROVIDED BY LAW. 
  

	4.	SUPPLY AGREEMENT OF CO-DEVELOPED PRODUCTS 

  
 Some of the Products, Processes, and Joint Intellectual Property resulting from the co-development effort of GEM and AATI will or may result in
manufactured products or be used in manufacturing services. Depending upon the parties mutual agreement, (i) in some instances GEM may serve the role of a manufacturing subcontractor to AATI and to other semiconductor product companies, (ii) in some
instances GEM may license other packaging, assembly, test, and backend-manufacturing subcontractors as a second source (or conceivably as a primary or sole source) of a package or service using Joint Intellectual Property or (iii) in some instances,
AATI may also be a customer of GEM licensed suppliers. The parties intend to enter into a definitive Supply Agreement within one year of the date of this Agreement. 
  
 4.1 Intent of Supply Agreement: The intent of this Section 4 is to ensure that in the event that GEM (or a licensed
subcontractor of GEM) manufactures and supplies Products, Processes or related 

  

 
services to customers using know-how based on cooperative development efforts of GEM and AATI or utilizing Joint Intellectual Property pursuant to this
Agreement, that AATI shall have access to buy said Products, practice or have practices such Processes and manufacturing services from GEM meeting prescribed guarantees for capacity, pricing, delivery and other quantifiable deliverables. 

 
 4.2 Decision to Manufacture Product: For each Product under this
Agreement, GEM has the right-of-first refusal to manufacture said Product. GEM is under no obligation to produce such Products. 
  
 (a) In the event that GEM elects to mass-produce the aforementioned Product, it will inform AATI of its intent to do so and estimate the
timing of mass production (“Manufacturing Date”). GEM will then use commercially reasonable effort to meet the production schedule for mass production. 
  
 (b) In the event that GEM elects not to mass-produce the aforementioned Product, GEM will seek to establish
one or more qualified alternate source (“Alternate Sources”) or alternatively assist AATI in doing same. The Alternate Source subcontractor will be licensed to manufacture the Product for AATI and any other customers that GEM wishes
to supply through its Alternate Sources. 
  
 4.3 Production
Success Criteria: In the event that GEM elects to mass-produce the aforementioned Product pursuant to 4.2(a) above, the Development Committee shall set forth reasonable conditions which define when commercially-ready Products have been produced
(the “Manufacturing Success Criteria”). GEM will then use commercially reasonable effort to meet the production schedule for mass production and to meet the Manufacturing Success Criteria. 
  
 (a) To the extent that the Parties cannot agree whether
either the Manufacturing Success Criteria have been achieved, or in the event that GEM is no longer able to provide the Products, the Executive Management of GEM and AATI will meet within thirty (30) days thereafter to seek remedies. 
  
 (b) In the extreme case where the Parties cannot agree
whether either the Manufacturing Success Criteria have been achieved even after the meeting specified in 4.3(a), the matter shall be resolved through arbitration in accordance with Article 9 hereof. 
  
 4.4 Supply Terms: The following terms describe the Parties’
obligations concerning the purchase and sale of the Products: 
  
 (a) Supply. GEM hereby agrees to sell to AATI on a non-exclusive basis and AATI hereby agrees to buy on a non-exclusive basis from GEM the Product developed under the Agreement [***]. 
  
 (b) Second Source Establishment. Upon or at any time
after a Product meets its Product Success Criteria and its Manufacturing Success Criteria or is otherwise accepted by AATI (the “Release to Manufacturing Date”), AATI may establish, or in its option have GEM establish, a second
source (the “Second Source”) to manufacture such Product for AATI and for other customers GEM may wish to supply using said Second Source. Within sixty (60) days after AATI’s request, GEM shall select an unaffiliated
third-party outsourcing company that is reasonably acceptable to AATI and qualified to manufacture anticipated quantities of the Product for AATI. AATI shall be entitled to establish, or have established, a Second Source for each Product developed
under this Agreement. In addition, if at any time AATI reasonably objects to a Second Source (including, without limitation, because the Second Source has 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 
manufactured Products for AATI of unacceptable quality), AATI may establish, or have established, another Second Source. 
  
 (c) Preferred Vendor: Notwithstanding the establishment of a
Second Source under Section 4.4(b) and so long as GEM offers the Products on competitive terms, AATI shall buy from GEM, and GEM agrees to sell AATI the Product on a preferred basis. To the extent that a Second Source is established under Section
4.4(b), AATI cannot source any Products during the term of this Agreement from the Second Source for [***] than those contained herein for equivalent volumes and terms than those contained herein [***] to GEM for all Products purchased hereunder.

  
 (d) Alternate Source Establishment. To
the extent that GEM and any GEM qualified Alternate Sources are unable or unwilling (e.g., change of control, change of corporate goals, lack of capacity) to satisfy all of AATI’s orders for the Products at any time during the term of this
Agreement after the Production Success Date, GEM agrees that AATI may, in its reasonable select and utilize alternative sources to provide AATI with such additional capacity (the “Alternate Sources”), and GEM Services agrees to
provide appropriate licenses for such additional capacity. 
  

	5.	LIMITATION OF LIABILITY 

  
 EXCEPT FOR A BREACH OF SECTION 6 (CONFIDENTIALITY), IT IS EXPRESSLY AGREED THAT IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INDIRECT,
CONTINGENT OR CONSEQUENTIAL LOSS OR DAMAGE (INCLUDING, WITHOUT LIMITATION, LOSS OF CONTRACT, LOSS OF BUSINESS, LOSS OF REVENUE, LOSS OF GOODWILL, LOSS OF MARKET, LOSS OF PROFIT OR LOSS OF ANTICIPATED PROFIT), EXPENSE OR COST WHATSOEVER OR HOWSOEVER
SUFFERED OR INCURRED, WHETHER OR NOT THE SAME ARE FORESEEABLE AND WHETHER ARISING IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, RELATING TO OR ARISING OUT OF PERFORMANCE OF THIS AGREEMENT OR PURSUANT TO THIS AGREEMENT, EVEN IF EITHER PARTY
HAD BEEN ADVISED, KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY THEREOF. AS LONG AS THE PARTIES USE COMMERCIALLY REASONABLE EFFORTS IN CONNECTION WITH THE DEVELOPMENT EFFORTS CONTEMPLATED HEREIN, NEITHER PARTY SHALL HAVE ANY LIABILITY TO THE OTHER
SOLELY AS A RESULT OF THE FAILURE TO ACHIEVE THE PRODUCT SUCCESS CRITERIA. 
  

	6.	PROPRIETARY INFORMATION 

  
 In furtherance of the purposes of this Agreement, the Parties contemplate that it may be advantageous and/or necessary to exchange proprietary
information. The Parties wish to protect such proprietary information from unauthorized use and disclosure and accordingly the Parties hereby agree as follows: 
  

6.1 Subject to the terms of this Agreement, neither Party shall disclose to any person or persons outside its corporation or to any person or persons
within its corporation not having a need to know for the purposes of this Agreement any non-public, proprietary information: (1) which the other Party submits in writing or electronically and designates by an appropriate stamp, marking or legend
thereon to be of a proprietary nature; or (2) which the other Party orally or visually submits and identifies as proprietary provided that in the case of oral or visual disclosure the submitting Party notifies the receiving Party in writing,
specifically identifying any such proprietary information so orally or visually submitted within 
  

	***	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

  

 
thirty (30) days of the oral or visual disclosure (hereinafter referred to as “Proprietary Information”). In addition, a receiving Party
shall use the Proprietary Information except as permitted under the terms of this Agreement. 
  
 6.2 The Parties shall take appropriate action to provide for and prevent the unauthorized disclosure of Proprietary Information in accordance with Section 6.1 above. A Party shall not be liable for disclosure of any
such Proprietary Information if the same is: (1) in the public domain or becomes available to the public through no wrongful or negligent act or omission on the receiving Party’s part; or (2) properly known to or independently developed by the
Party in receipt of such Proprietary Information prior to disclosure; or (3) disclosed to the receiving Party by a third Party without any obligation of confidentiality; or (4) disclosed to the receiving Party by the other Party without any
obligation of confidentiality; or (5) independently developed by the receiving Party without the use of Proprietary Information received hereunder and there is adequate evidence to demonstrate such condition; or (6) disclosed by the receiving Party
with the prior written approval of the disclosing Party. 
  
 6.3
Each Party agrees to use its best efforts to minimize any damage resulting from inadvertent or accidental disclosure of Proprietary Information. 
  
 6.4 Each Party agrees that upon expiration or termination of this Agreement, reasonable recall by the disclosing Party, or request for destruction by the
disclosing Party, the receiving Party shall promptly return to the disclosing Party any Proprietary Information provided by such disclosing Party. The Parties acknowledge and agree that certain Joint Intellectual Property may be deemed Proprietary
Information and that following termination or expiration of this Agreement, each party may use Residuals of such Proprietary Information; provided however each party acknowledges and agrees that no licenses are granted under either party’s
copyrights or patent rights under this Section 6.4. For the purposes of this Agreement, Residuals means that information which is retained in the memory of those persons that had authorized access to the Proprietary Information under this Agreement.

  
 6.5 The Parties’ obligations to protect Proprietary
Information disclosed in accordance with this Agreement prior to its termination shall survive termination of this Agreement. 
  
 6.6 In the event any governmental or judicial order requires the disclosure of Proprietary Information, the recipient of such Proprietary Information
shall promptly and, if possible, prior to such disclosure notify the originator of the Proprietary Information of the requirement and provide reasonable aid and assistance if the originator decides to oppose such governmental or judicial order. The
recipient shall not be liable for any disclosure of Proprietary Information made pursuant to such governmental or judicial order if it has complied with the provisions of this paragraph. 
  
 6.7 The terms of this Article 6 shall also apply to any Proprietary Information disclosed between the Parties during the
course of the relationship between them before the date of this Agreement. Notwithstanding anything in this Section 6, either Party may disclose the terms and conditions of this Agreement: (i) to legal counsel of the Parties; (ii) in confidence, to
accountants, banks, and financing sources and their advisors; (iii) in connection with the enforcement of this Agreement or rights under this Agreement; or (iv) in confidence, in connection with an actual or proposed merger, acquisition, or similar
transaction. 
  

	7.	TERM AND TERMINATION 

  
 7.1 Term: Unless earlier terminated pursuant to Section 7.2 hereof, this Agreement shall expire upon the completion of performance by the Parties
of their responsibilities under this Agreement (the “Completion Date”). 
  
 7.2 Early Termination of the Agreement: The Agreement can be terminated at any time prior to the Completion Date upon any of the following events: (a) by the mutual written agreement of the Parties; or (b) by
either Party if the Product Success Criteria for the initial Product has not occurred (or has not been waived in writing by both Parties) on or prior to five (5) years from the date of this Agreement; or (c) by either Party in the event that the
other Party breaches, in any material respect, any of the terms of this Agreement and does not cure such breach within a forty-five (45) day cure period following written notice of such breach from the other Party; provided, however, the failure to
satisfy the Product Prototype Success Criteria or the Product Commercial Success Criteria will not be deemed a breach by either Party as long as the Party has used commercially reasonable efforts. 
  

	8.	GOVERNING LAW 

  
 This Agreement shall be governed and interpreted in accordance with the laws of the State of California without regard to any conflicts of law provisions
contained therein. 
  

	9.	SETTLEMENT OF DISPUTES 

  
 9.1 Dispute Resolution: In the event of any dispute, difference or claim arising out of or relating to this Agreement or the performance,
enforcement, breach, termination or validity thereof (a “Claim”), the Parties shall use their best endeavors to settle such Claim. To this effect, they shall consult and negotiate with each other, in good faith and understanding of
their mutual interests, to reach a just and equitable solution satisfactory to both Parties. If they do not reach such solution within a period of thirty (30) days, then the Claim shall be finally settled by arbitration administered by and in
accordance with the rules of American Arbitration Association (the “AAA”) for Commercial Cases, as such rules exist on the date of the arbitration. Notwithstanding, either Party is entitled to seek equitable remedies from a court of law.

  
 9.2 Venue. The exclusive place for any Claim shall be
arbitration in San Jose under the rules and auspices of the American Arbitration Association for Commercial Cases; provided, however, that a Party is entitled to seek equitable remedies from a court of law having jurisdiction. 
  

	10.	ASSIGNMENT 

  
 Neither Party shall assign this Agreement or any rights or obligations hereunder in whole or in part to any third Party without the prior written consent
of the other Party, and no purported assignment by either Party shall be binding on the other Party without such written consent; provided, however, either Party can, without the prior written consent of the other, assign its rights and
obligations hereunder to any affiliate of the Party. 
  

	11.	PUBLICITY 

  
 Neither Party shall issue a news release, advertisement, public announcement or any other form of publicity concerning this Agreement or the other
Party’s efforts in connection with this Agreement without prior written consent of the other Party. The Parties may issue news releases, advertisements, public 

  

 
announcements and other forms of publicity concerning this Agreement from time to time, and each Party agrees to not unreasonably withhold its consent to
such publicity. 
  

	12.	AMENDMENTS 

  
 Any amendments or modifications to this Agreement and/or Annexes must be made in writing by both Parties and executed by a duly authorized representative
of each Party. 
  

	13.	NOTICES 

  
 All Notices, requests, demands and other communications shall be given to or made upon the respective Parties as follows: 
  

			
	If to GEM:	  	If to AATI:
		
	 GEM Services, Inc.
 43170 Osgood Road
 Fremont, CA 94538
	  	 Advanced Analogic Technologies, Inc.
 1250 Oakmead
Parkway, Suite 310
 Sunnyvale, CA 94086

		
	 Attention: Richard Kulle
	  	Attention: Richard K. Williams

  
 The address for giving notice or point
of contact may be changed by complying with the written notice provisions of this Article. All notices, requests, demands and other communications given or made concerning the terms of this Agreement shall be in writing and shall be given either by
mail or fax and shall become effective on the date received by the receiving Party if given by mail or on the date of transmission if given by fax (confirmation retained). 
  

	14.	FORCE MAJEURE EVENT 

  
 Nonperformance of either Party shall be excused to the extent that performance is rendered impossible by strike, fire, flood, governmental acts or orders
or restrictions, or any other reason where failure to perform is beyond the reasonable control of the non-performing Party (each a “Force Majeure Event”). The Party whose performance is affected by a Force Majeure Event shall use
reasonable efforts to: (i) avoid, remove, or minimize the impact of such event on its performance and other obligations; and (ii) recommence performance of its obligations at the required level as soon as possible. If either Party is, or anticipates
it is likely to be, delayed or prevented from performing its obligations in connection with a Force Majeure Event, such Party shall promptly notify the other Party by telephone with confirmation in writing within two (2) business days after the
inception of such delay. 
  

	15.	COMPLIANCE WITH LAWS 

  
 15.1 This Agreement is not intended to require, and will not require, any Party to violate any applicable laws or regulations of the U.S., or any other
country or jurisdiction, including without limitation, the export control laws of the United States. 
  
 15.2 The Parties understand and agree that both Parties are subject to all applicable laws and regulations of the U.S. and certain other countries with
respect to the export and use of technology exported from such countries. Without limiting the generality of the foregoing, the Parties shall, to the extent 

  

 
necessary, obtain the prior written approval of the competent authorities of the U.S., or any other country having proper jurisdiction, before any technology
may be resold, sublicensed, diverted, transferred, transshipped, reshipped, or re-exported to, or used in, any country for any purpose other than as described on the applicable export license. 
  

	16.	SURVIVAL OF PROVISIONS 

  
 Notwithstanding any termination of the Agreement, the Parties’ obligations with respect to Article 2 - Intellectual Property, Article 4 - Supply
Agreement, Article 5 - Limitation of Liability, Article 6 - Proprietary Information, Article 7 - Termination, Article 8 - Governing Law, Article 9 - Settlement of Disputes and Article 17 - Equitable Remedies shall survive any such termination and
shall bind the Parties, their successors, their assigns, and their legal representatives. All licenses and sublicenses granted under Section 4.4 shall survive any termination or expiration of this Agreement. 
  

	17.	EQUITABLE REMEDIES 

  
 The Parties acknowledge that remedies at law may be inadequate to protect each other against any actual or threatened breach of this Agreement, and, that
either Party may apply to seek injunctive relief for a material on-going breach of this Agreement. 
  

	18.	ENTIRE AGREEMENT 

  
 This Agreement and Annexes hereto contain the entire understanding and agreement between the Parties with respect to the subject matter hereof and
supersedes any previous proposals, understandings, commitments or representations whatsoever, oral or written. 
  

	19.	WAIVER 

  
 No term or condition of this Agreement shall be deemed to have been waived, nor shall there be any estoppel to enforce any provision of this Agreement,
except by written instrument of the Party charged with such waiver or estoppel. 
  

	20.	MULTIPLE COUNTERPARTS 

  
 This Agreement may be executed in separate or multiple counterparts, each of which shall be deemed an original, but all of which together shall be
considered as one and the same agreement. 
  

	21.	SEVERABILITY 

  
 In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any
respect, such provision will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full force and effect. The Parties shall negotiate in good faith an
enforceable substitute provision that most nearly achieves the intent and economic effect of such invalid or unenforceable provision. 
  

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly authorized
representatives. 
  

									
	 	 	 	 	 AATI

					
	By:	 	 /s/ R. J. Kulle
	 	 	 	By:	 	 /s/ Richard K. Williams

	 Name:
	 	 R. J. Kulle
	 	 	 	 Name:
	 	 Richard K. Williams

	 	 	 President & CEO
	 	 	 	 Title:
	 	 President & CEO/CTO

	 Date:
	 	 6-1-99
	 	 	 	 Date:
	 	 June 1, 1999

  

  
 ANNEX A-1 

PLAN & PRODUCT SUCCESS CRITERIA 
  

			
	 Product to Develop (name)
	  	 JW-Type Packages

		
	 Brief Description
	  	 J-lead (reverse gull-wing) plastic surface mount package
 Widebody to expand package cavity
 SC70 footprint & TSOP footprint packages
 Tighter pin pitch than conventional low pin count packages
 Improved thermal resistance (more grounded pins)
 Low profile

		
	 Product Success Criteria
	  	 Die to package footprint area ratio over 35%
 Thermal
resistance junction to board < ?
 8 pins for SC70 form factor
 12 pins for TSOP form factor
 Height not to exceed 1.1 mm
 Meets industry-standard suite of package qualification tests

		
	 Development Plan
	  	 J-lead (reverse gull-wing) plastic surface mount package
 Widebody to expand package cavity
 SC70 footprint & TSOP footprint packages
 Tighter pin pitch than conventional low pin count packages
 Improved thermal resistance (more grounded pins)
 Low profile

		
	 	  	 Multiple Patents Applications
 Mass Production of
8-pin SC70
 Mass Production of 12-pin TSOP
 Mass Production of
8-pin TSOP

		
	 Target Release to
 Manufacturing Date
	  	 SC70JW: TBD
 TSOP12JW: TBD
 TSOP8JW: TBD

  

  
 ANNEX B-1 

 
 PRODUCT DEVELOPMENT PLAN & PRODUCT SUCCESS CRITERIA 

 

			
	 Product to Develop (name)
	 	 TBD

		
	 Brief Description
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Product Success Criteria
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Development Plan
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Reduction To Practice
	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 Target Release to
 Manufacturing Date
	 	 

  

  
 ANNEX C-1 

 
 INTELLECTUAL PROPERTY 
  
 GEM Owned-JW Package and Packaging Related-Joint Intellectual Property

  

									
	 TTC Ref
 Country
 ATTY(s) Handling

	  	 Client’s Ref

	  	 Title

	  	 Inventor

	  	 Application
 No.
 Filing Date

					
	 020964-000100US
 KJT (RTO)
	  	TSSOP-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/143227
 06/08/01

					
	 020964-000200US
 KJT (RTO)
	  	 	  	 Surface Mount
 Package
	  	 Harden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 60/291212
 05/15/01

					
	 020964-000210US
 KJT (RTO)
	  	 	  	 Surface Mount
 Package
	  	 Harden, James
 Williams.
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 09/895478
 06/29/01

					
	 020964-000300US
 KJT (RTO)
	  	2928-6J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141964
 05/15/01

					
	 020964-000400US
 KJT (RTO)
	  	2828-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141963
 05/15/01

					
	 020964-000500US
 KJT (RTO)
	  	2021-8J	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/141966
 05/15/01

					
	 020964-000600US
 KJT (RTO)
	  	SOT-2303J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145235
 07/17/01

					
	 020964-000700US
 KJT (RTO)
	  	 2021-8J
 Lead Frame
	  	 Surface Mount
 Package Leadframe
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/143226
 06/08/01

  

									
	 TTC Ref
 Country
 ATTY(s) Handling

	  	 Client’s Ref

	  	 Title

	  	 Inventor

	  	 Application
 No.
 Filing Date

					
	 020964-000800US
 KJT (RTO)
	  	2928-SJ	  	 Surface Mount
 Package
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142096
 05/18/01

					
	 020964-000900US
 KJT (RTO)
	  	 J Lead Form
 Design
	  	 Surface Mount
 Package Lead
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142106
 05/18/01

					
	 020964-001000US
 KJT (RTO)
	  	 J Lead
 FootDesign
	  	 Surface Mount
 Package Lead Foot
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142111
 05/18/01

					
	 020964-001100US
 KJT (RTO)
	  	 J Lead
 Notch
 Design
	  	 Surface Mount
 Package Body
	  	 Williams,
 Richard K.
 Harnden, James
 Chia, Anthony
 Weibing, Chu
	  	 29/142097
 05/18/01

					
	 020964-001200US
 KJT (RTO)
	  	Micro-8J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145233
 07/17/01

					
	 020964-001300US
 KJT (RTO)
	  	Micro-12J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145234
 07/17/01

					
	 020964-001400US
 KJT (RTO)
	  	3528-14J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145236
 07/17/01

					
	 020964-001500US
 KJT (RTO)
	  	SC-70-3J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145292
 07/18/01

					
	 020964-001600US
 KJT (RTO)
	  	2928-12J	  	 Surface Mount
 Package
	  	 Harnden, James
 Williams,
 Richard K.
 Chia, Anthony
 Weibing, Chu
	  	 29/145237
 07/17/01

  
 AATI Owned Non-Package-Joint
Intellectual Property

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