Document:

LOAN AND SECURITY AGREEMENT

 Exhibit 10.3 
 LOAN AND SECURITY AGREEMENT 
 THIS LOAN AND SECURITY
AGREEMENT (this “Agreement”) dated as of February 6, 2012 (the “Effective Date”) between SILICON VALLEY BANK, a California corporation (“Bank”), and MINDSPEED TECHNOLOGIES, INC., a
Delaware corporation (“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 

1        ACCOUNTING AND OTHER TERMS 

Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be
made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code
to the extent such terms are defined therein. 
 2        LOAN AND
TERMS OF PAYMENT 
 2.1        Promise to Pay.
Borrower hereby unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 

2.1.1        Revolving Advances. 

(a)        Availability. Subject to the terms and conditions of this
Agreement, Bank shall make Advances not exceeding the Availability Amount. Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. Each
Advance shall be (x) in an amount not less than Five Hundred Thousand Dollars ($500,000) or in any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof or (y) in an amount equal to the full remaining Availability
Amount. 
 (b)        Termination or Reduction; Repayment. The
Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. On and after the
first anniversary of the Effective Date, Borrower shall have the right, upon not less than three (3) Business Days’ notice to Bank, to terminate the Revolving Line or, from time to time, to reduce the amount of the Revolving Line;
provided, that no such termination or reduction of the Revolving Line shall be permitted if, after giving effect thereto and to any prepayments of Advances made on the effective date thereof, the aggregate outstanding amount of Advances would exceed
the Revolving Line. Any such reduction shall be in an amount not less than One Million Dollars ($1,000,000) or in any integral multiple of Five Hundred Thousand Dollars ($500,000) in excess thereof; provided further, if in connection with any such
reduction or termination of the Revolving Line a LIBOR Loan is prepaid on any day other than the last day of the Interest Period applicable thereto, Borrower shall also pay any amounts owing pursuant to Section 3.7(a). 

2.1.2        Term Loan. 

(a)        Availability. Bank shall make one (1) term loan available
to Borrower in an amount equal to Fifteen Million Dollars ($15,000,000) on the Effective Date subject to the satisfaction of the terms and conditions set forth in Section 3.1 of this Agreement. 

(b)        Repayment. Borrower shall repay the Term Loan in quarterly
installments of principal equal to the Applicable Term Loan Principal Payment Amount (each a “Term Loan Payment”), beginning on March 31, 2013 and continuing on the last day of each calendar quarter thereafter. Borrower’s
final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan. Once repaid, the Term Loan may not be reborrowed. 

  
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 (c)        Prepayment upon Event
of Default. If the Term Loan is accelerated following the occurrence and during the continuance of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of: (i) all outstanding principal of the Term Loan
plus accrued interest thereon through the prepayment date, (ii) the Prepayment Fee (if applicable), plus (iii) all other sums, that shall have become due and payable, including Bank Expenses and interest at the Default Rate with respect to
any past due amounts. 
 (d)        Permitted Prepayment of Term
Loan. Borrower shall have the option to prepay all or any portion of the Term Loan, provided Borrower (i) provides written notice to Bank of its election to prepay all or a portion of such Term Loan at least five (5) Business Days
prior to such prepayment, and (ii) pays to Bank on the date of such prepayment, an amount equal to the sum of (A) all outstanding principal of the Term Loan elected to be prepaid plus accrued interest thereon through the prepayment date,
(B) the Prepayment Fee, if applicable, plus (C) all other sums, that shall have become due and payable, including Bank Expenses, if any, and interest at the Default Rate with respect to any past due amounts. 

2.1.3        General Provisions Relating to the Loans. Each Loan
shall, at Borrower’s option in accordance with the terms of this Agreement, be either in the form of a Base Rate Loan or a LIBOR Loan; provided that in no event shall Borrower maintain at any time LIBOR Loans having more than five
(5) different Interest Periods. Borrower shall pay interest accrued on the Loans at the rates and in the manner set forth in Section 2.3. 
 2.2        Overadvances. If, at any time, the outstanding principal amount of any Advances exceeds the lesser of either the Revolving Line or the
Borrowing Base, Borrower shall immediately pay to Bank in cash such excess. 

2.3        Payment of Interest on the Credit Extensions. 

(a)        Computation of Interest. Interest on the Credit Extensions and
all fees payable hereunder shall be computed on the basis of a 360-day year and the actual number of days elapsed in the period during which such interest accrues. In computing interest on any Credit Extension, the date of the making of such Credit
Extension shall be included and the date of payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension.

 (b)        Loans. Each Loan shall bear interest on the
outstanding principal amount thereof from the date when made, continued or converted until paid in full at a rate per annum equal to the Base Rate plus the Base Rate Margin or the LIBOR Rate plus the LIBOR Rate Margin, as the case may be. On
and after the expiration of any Interest Period applicable to any LIBOR Loan outstanding on the date of occurrence of an Event of Default or acceleration of the Obligations, the Effective Amount of such LIBOR Loan shall, during the continuance of
such Event of Default or after acceleration, bear interest at a rate per annum equal to the Base Rate plus the Base Rate Margin plus two percent (2.00%). Pursuant to the terms hereof, interest on each Loan shall be paid in arrears on each Interest
Payment Date. Interest shall also be paid on the date of any prepayment of any Loan pursuant to this Agreement for the portion of any Loan so prepaid and upon payment (including prepayment) in full thereof. All accrued but unpaid interest on the
Loans shall be due and payable on the Revolving Line Maturity Date or the Term Loan Maturity Date (as applicable). 
 (c)        Default Interest. Except as otherwise provided in Section 2.3(b), after an Event of Default, Obligations shall bear interest two percent
(2.00%) above the rate effective immediately before the Event of Default (the “Default Rate”). Payment or acceptance of the increased interest provided in this Section 2.3(c) is not a permitted alternative to timely
payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (d)        Base Rate Loans. Each change in the interest rate of the Base Rate Loans based on changes in the Base Rate shall be effective on the effective
date of such change and to the extent of such change. Bank shall use its best efforts to give Borrower prompt notice of any such change in the Base Rate; provided, however, that any failure by Bank to provide Borrower with notice hereunder
shall not affect Bank’s right to make changes in the interest rate of the Base Rate Loans based on changes in the Base Rate. 

  
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 (e)         LIBOR Loans. The
interest rate applicable to each LIBOR Loan shall be determined in accordance with Section 3.6(a) hereunder. Subject to Sections 3.6 and 3.7, such rate shall apply during the entire Interest Period applicable to such LIBOR Loan, and interest
calculated thereon shall be payable on the Interest Payment Date applicable to such LIBOR Loan. 

(f)         Debit of Accounts. Bank may debit any of Borrower’s
deposit accounts, including the Designated Deposit Account, for principal and interest payments when due, or any other amounts Borrower owes Bank, when due. Bank shall promptly notify Borrower after it debits Borrower’s accounts. These debits
shall not constitute a set-off. 
 2.4         Fees.
Borrower shall pay to Bank: 
 (a)         Fees. All fees as set
forth in the Fee Letter; 
 (b)         Unused Fee. A fee (the
“Unused Fee”), payable quarterly, in arrears, on a calendar year basis, in an amount equal to the Applicable Unused Fee Percentage per annum of the average daily unused portion of the Revolving Line, as determined by Bank. Borrower
shall not be entitled to any credit, rebate or repayment of any Unused Fee previously earned by Bank pursuant to this Section notwithstanding any termination of the Agreement or the suspension or termination of Bank’s obligation to make loans
and advances hereunder; 
 (c)         Prepayment Fee. The
Prepayment Fee, if and when due pursuant to Sections 2.1.2(c) or 2.1.2(d); and 

(d)         Bank Expenses. All Bank Expenses (including reasonable
attorneys’ fees and expenses for documentation and negotiation of the Loan Documents) incurred through and after the Effective Date, when due. 
 2.5         Payments; Application of Payments. 
 (a)         All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds in U.S. Dollars,
without setoff or counterclaim, before 12:00 p.m. Pacific time on the date when due. Payments of principal and/or interest received after 12:00 p.m. 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 shall be due the next Business Day, and additional fees or interest, as applicable, shall continue to accrue until paid. 

(b)         During the continuance of an Event of Default, Bank shall apply the
whole or any part of collected funds against the Revolving Line or credit such collected funds to a depository account of Borrower with Bank (or an account maintained by an Affiliate of Bank), the order and method of such application to be in the
sole discretion of Bank. Borrower shall have no right to specify the order or the accounts to which Bank shall allocate or apply any payments required to be made by Borrower to Bank or otherwise received by Bank under this Agreement when any such
allocation or application is not specified elsewhere in this Agreement. 

3         CONDITIONS OF LOANS 

3.1         Conditions Precedent to Initial Credit Extension.
Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following documents, and completion of the following matters:

 (a)         duly executed original signatures to the Loan Documents
(other than Loan Documents that are permitted to be delivered after the Effective Date in accordance with the Postclosing Letter); 
 (b)         Borrower’s Operating Documents and a good standing certificate of Borrower certified by the Secretary of State of the State of Delaware as of a
date no earlier than thirty (30) days prior to the Effective Date; 

  
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 (c)         Each Domestic
Guarantor’s Operating Documents and a good standing certificate of each Domestic Guarantor certified by the Secretary of State of the state of such Domestic Guarantor’s formation as of a date no earlier than thirty (30) days prior to
the Effective Date; 
 (d)         duly executed copies of the
completed Borrowing Resolutions for Borrower; 
 (e)         duly
executed copies of the completed resolutions to guaranty for each Domestic Guarantor; 

(f)         certified copies, dated as of a recent date, of financing statement
searches with respect to Borrower and each Domestic Guarantor, as Bank shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted
Liens or have been or, in connection with the initial Credit Extension, will be terminated or released; 

(g)         the Perfection Certificates of Borrower and each Domestic Guarantor,
together with the duly executed original signatures thereto; 

(h)         a legal opinion of Borrower’s and each Domestic
Guarantor’s counsel dated as of the Effective Date together with the duly executed original signature thereto; 
 (i)         evidence satisfactory to Bank that Borrower, PicoChip and their Subsidiaries, taken as a whole, can demonstrate a Liquidity Ratio of at least 1.35 to
1.00 on a Pro Forma Basis; 
 (j)         payment of the fees and Bank
Expenses then due as specified in Section 2.4 hereof; 

(k)         timely receipt of an Effective Date Notice of Borrowing; 

(l)         no event, circumstance, or condition of any character shall have
occurred since the date of the Commitment Letter, or shall exist as of the Effective Time (as defined in the Merger Agreement) that has resulted in a Material Adverse Effect (as defined in the Merger Agreement) to Borrower, Picochip and their
Subsidiaries, taken as a whole; and 
 (m)         the Specified Merger
Agreement Representations and the Specified Representations shall be true, accurate, and complete in all material respects on the date of the Notice of Borrowing and on the Funding Date of the initial Credit Extension; provided, however, that such
materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a
specific date shall be true, accurate and complete in all material respects as of such date, and no Event of Default (other than an Event of Default described in Sections 8.3 or 8.8) shall have occurred and be continuing or result from the Credit
Extension. The initial Credit Extension is Borrower’s representation and warranty on that date that the Specified Merger Agreement Representations and the Specified Representations remain true, accurate, and complete in all material respects;
provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and
warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date. 
 3.2         Conditions Precedent to all subsequent Credit Extensions. Bank’s obligations to make each Credit Extension after the initial Credit
Extension on the Effective Date is subject to the following conditions precedent: 

(a)         timely receipt of a Subsequent Notice of Borrowing; 

(b)         the representations and warranties in this Agreement shall be true,
accurate, and complete in all material respects on the date of the Notice of Borrowing and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties
that 

  
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already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date, and no Event of Default shall 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 in this Agreement remain true, accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and

 (c)         in Bank’s sole but reasonable discretion, there has
not been a Material Adverse Change. 
 3.3         Covenant to
Deliver. Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement as a condition precedent to any Credit Extension. Borrower expressly agrees that a Credit Extension made prior to the receipt by Bank of
any such item shall not constitute a waiver by Bank of Borrower’s obligation to deliver such item, and the making of any Credit Extension in the absence of a required item shall be in Bank’s sole discretion. 

3.4         Procedure for the Borrowing of Loans. 

(a)         Subject to the prior satisfaction of all other applicable conditions
to the making of a Loan set forth in this Agreement, each Loan shall be made upon Borrower’s irrevocable written notice (provided that the initial Credit Extension hereunder may be contingent upon the consummation of the transaction
contemplated by the Merger Agreement) delivered to Bank in the form of a Notice of Borrowing, each executed by a Responsible Officer of Borrower or his or her designee or without instructions if the Loans 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, except to the extent resulting from
the gross negligence or willful misconduct of Bank. Such Notice of Borrowing must be received by Bank prior to 11:00 a.m. Pacific time, (i) at least three (3) Business Days prior to the requested Funding Date, in the case of LIBOR
Loans, and (ii) at least one (1) Business Day prior to the requested Funding Date, in the case of Base Rate Loans, specifying: 
 (1)         the amount of the Loan, which, if a LIBOR Loan is requested, shall be in (x) an aggregate minimum principal amount of Five Hundred Thousand Dollars
($500,000) or in any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof; or (y) an amount equal to the full remaining Availability Amount; 

(2)         the requested Funding Date; 

(3)         whether the Loan is to be comprised of LIBOR Loans or Base Rate
Loans; and 
 (4)         the duration of the Interest Period
applicable to any such LIBOR Loans included in such notice; provided that if the Notice of Borrowing shall fail to specify the duration of the Interest Period for any Loan comprised of LIBOR Loans, such Interest Period shall be one
(1) month. 
 (b)         The proceeds of all such Loans will then
be made available to Borrower on the Funding Date by Bank by transfer to the Designated Deposit Account and, subsequently, by wire transfer to such other account as Borrower may instruct in the Notice of Borrowing. No Loans shall be deemed made to
Borrower, and no interest shall accrue on any such Loan, until the related funds have been deposited in the Designated Deposit Account. 
 3.5         Conversion and Continuation Elections. 
 (a)         So long as (i) no Event of Default exists; (ii) Borrower shall not have sent any notice of termination of this Agreement; and
(iii) Borrower shall have complied with such customary procedures as Bank has established from time to time for Borrower’s requests for LIBOR Loans, Borrower may, upon irrevocable written notice to Bank: 

  
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 (1)         elect to convert on any
Business Day, Base Rate Loans (in a principal amount equal to Five Hundred Thousand Dollars ($500,000) or any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof) into LIBOR Loans; 

(2)         elect to continue on any Interest Payment Date any LIBOR Loans
maturing on such Interest Payment Date (or any part thereof in an amount equal to Five Hundred Thousand Dollars ($500,000) or any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof); or 

(3)         elect to convert on any Interest Payment Date any LIBOR Loans
maturing on such Interest Payment Date (or any part thereof in an amount equal to Five Hundred Thousand Dollars ($500,000) or any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof) into Base Rate Loans. 

provided, that the minimum increment requirements set forth above shall not apply to the conversion or continuation of any Loans that did
not meet the minimum increment required when borrowed pursuant to Section 2.1.1. 

(b)         Borrower shall deliver a Notice of Conversion/Continuation in
accordance with Section 10 to be received by Bank prior to 11:00 a.m. Pacific time at least (i) three (3) Business Days prior to the Conversion Date or Continuation Date, if any Loans are to be converted into or continued as LIBOR
Loans; and (ii) one (1) Business Day in Loan of the Conversion Date, if any Loans are to be converted into Base Rate Loans, in each case specifying the: 

(1)         proposed Conversion Date or Continuation Date; 

(2)         aggregate amount of the Loans to be converted or continued which, if
any Loans are to be converted into or continued as LIBOR Loans, shall be in an aggregate minimum principal amount of Five Hundred Thousand Dollars ($500,000) or in any integral multiple of One Hundred Thousand Dollars ($100,000) in excess thereof;

 (3)         nature of the proposed conversion or continuation; and

 (4)         duration of the requested Interest Period, in the case
of LIBOR Loans. 
 (c)         If upon the expiration of any Interest
Period applicable to any LIBOR Loans, Borrower shall have timely failed to select a new Interest Period to be applicable to such LIBOR Loans, Borrower shall be deemed to have elected to convert such LIBOR Loans into Base Rate Loans. 

(d)         Any LIBOR Loans shall, at Bank’s option, convert into Base Rate
Loans in the event that (i) an Event of Default shall exist, or (ii) the aggregate principal amount of the Base Rate Loans which have been previously converted to LIBOR Loans, or the aggregate principal amount of existing LIBOR Loans
continued, as the case may be, at the beginning of an Interest Period shall at any time during such Interest Period exceed the Revolving Line. Borrower agrees to pay Bank, upon demand by Bank (or Bank may, at its option, charge the Designated
Deposit Account or any other account Borrower maintains with Bank) any amounts required to compensate Bank for any loss (including loss of anticipated profits), cost, or expense incurred by Bank, as a result of the conversion of LIBOR Loans to Base
Rate Loans pursuant to any of the foregoing. 
 (e)        
Notwithstanding anything to the contrary contained herein, Bank shall not be required to purchase United States Dollar deposits in the London interbank market or other applicable LIBOR market to fund any LIBOR Loans, but the provisions hereof shall
be deemed to apply as if Bank had purchased such deposits to fund the LIBOR Loans. 

  
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 3.6         Special Provisions
Governing LIBOR Loans. 
 Notwithstanding any other provision of this Agreement to the contrary, the
following provisions shall govern with respect to LIBOR Loans as to the matters covered: 

(a)         Determination of Applicable Interest Rate. As soon as
practicable on each Interest Rate Determination Date, Bank shall determine (which determination shall, absent manifest error in calculation, be final, conclusive and binding upon all parties) the interest rate that shall apply to the LIBOR Loans for
which an interest rate is then being determined for the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone confirmed in writing) to Borrower. 

(b)         Inability to Determine Applicable Interest Rate. In the event
that Bank shall have determined (which determination shall be final and conclusive and binding upon all parties hereto), on any Interest Rate Determination Date with respect to any LIBOR Loan, that by reason of circumstances affecting the London
interbank market adequate and fair means do not exist for ascertaining the interest rate applicable to such Loan on the basis provided for in the definition of LIBOR, Bank shall on such date give notice (by facsimile or by telephone confirmed in
writing) to Borrower of such determination, whereupon (i) no Loans may be made as, or converted to, LIBOR Loans until such time as Bank notifies Borrower that the circumstances giving rise to such notice no longer exist, and (ii) any
Notice of Borrowing or Notice of Conversion/Continuation given by Borrower with respect to Loans in respect of which such determination was made shall be deemed to be rescinded by Borrower and be deemed a request to convert or continue Loans
referred to therein as Base Rate Loans. 
 (c)         Compensation
for Breakage or Non-Commencement of Interest Periods. Borrower shall compensate Bank, upon written request by Bank (which request shall set forth the manner and method of computing such compensation), for all reasonable losses, expenses and
liabilities, if any, that are customarily allocated to borrowers in the U.S. bank lending markets (including any interest paid by Bank to lenders of funds borrowed by it to make or carry its LIBOR Loans and any loss, expense or liability incurred by
Bank in connection with the liquidation or re-employment of such funds) such that Bank may incur: (i) if for any reason (other than a default by Bank or due to any failure of Bank to fund LIBOR Loans due to impracticability or illegality under
Sections 3.7(d) and 3.7(e)) a borrowing of or a conversion to or continuation of any LIBOR Loan does not occur on a date specified in a Notice of Borrowing or a Notice of Conversion/Continuation, as the case may be, or (ii) if any
principal payment or any conversion of any of its LIBOR Loans occurs on a date prior to the last day of an Interest Period applicable to that Loan. 
 (d)         Assumptions Concerning Funding of LIBOR Loans. Calculation of all amounts payable to Bank under this Section 3.6 and under Section 3.4
shall be made as though Bank had actually funded each of its relevant LIBOR Loans through the purchase of a Eurodollar deposit bearing interest at the rate obtained pursuant to the definition of LIBOR Rate in an amount equal to the amount of such
LIBOR Loan and having a maturity comparable to the relevant Interest Period; provided, however, that Bank may fund each of its LIBOR Loans in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of
calculating amounts payable under this Section 3.6 and under Section 3.4. 

(e)         LIBOR Loans After Default. After the occurrence and during
the continuance of an Event of Default, (i) Borrower may not elect to have a Loan be made or continued as, or converted to, a LIBOR Loan after the expiration of any Interest Period then in effect for such Loan and (ii) subject to the
provisions of Section 3.6(c), any Notice of Conversion/Continuation given by Borrower with respect to a requested conversion/continuation that has not yet occurred shall be deemed to be rescinded by Borrower and be deemed a request to convert
or continue Loans referred to therein as Base Rate Loans. 

3.7         Additional Requirements/Provisions Regarding LIBOR Loans.

 (a)         If for any reason (including voluntary or mandatory
prepayment or acceleration), Bank receives all or part of the principal amount of a LIBOR Loan prior to the last day of the Interest Period for such Loan, Borrower shall immediately notify Borrower’s account officer at Bank and, pursuant to the
terms of this Agreement, pay Bank the amount (if any) by which (i) the additional interest which would have been payable on the amount so received had it not been received until the last day of such Interest Period exceeds (ii) the amount
of interest which would accrue on such principal amount for such period at the interest rate which Bank would bid were it to bid, at the commencement of such period, for deposits in dollars of a comparable amount and period from

  
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other banks in the London interbank market. A certificate of Bank setting forth in reasonable detail the calculation of any amount or amounts that Bank is entitled to receive pursuant to this
Section shall be delivered to the Borrower and shall be conclusive absent manifest error. Borrower shall pay Bank the amount shown as due on any such certificate within thirty (30) days after receipt thereof. 

(b)         Borrower shall pay Bank, upon demand by Bank, from time to time such
amounts as Bank may determine to be necessary to compensate it for any costs incurred by Bank that Bank determines are attributable to its making or maintaining of any amount receivable by Bank hereunder in respect of any Loans relating thereto
(such increases in costs and reductions in amounts receivable being herein called “Additional Costs”), in each case resulting from any Regulatory Change which: 

(i)         changes the basis of taxation of any amounts payable to Bank under
this Agreement in respect of any Loans (other than changes which affect taxes measured by or imposed on the overall net income of Bank by the jurisdiction in which Bank has its principal office); 

(ii)         imposes or modifies any reserve, special deposit or similar
requirements relating to any extensions of credit or other assets of, or any deposits with, or other liabilities of Bank (including any Loans or any deposits referred to in the definition of LIBOR); or 

(iii)         imposes any other condition affecting this Agreement (or any of
such extensions of credit or liabilities). 
 Bank will notify Borrower of any event occurring after the
Effective Date which will entitle Bank to compensation pursuant to this Section 3.7 as promptly as practicable after it obtains knowledge thereof and determines to request such compensation. Bank will furnish Borrower with a statement setting
forth in reasonable detail the basis and amount of each request by Bank for compensation under this Section 3.7. Determinations and allocations by Bank for purposes of this Section 3.7 of the effect of any Regulatory Change on its costs of
maintaining its obligations to make Loans, of making or maintaining Loans, or on amounts receivable by it in respect of Loans, and of the additional amounts required to compensate Bank in respect of any Additional Costs, shall be conclusive absent
manifest error. 
 (c)         If Bank shall determine that the
adoption or implementation of any applicable law, rule, regulation, or treaty regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable
agency charged with the interpretation or administration thereof, or compliance by Bank (or its applicable lending office) with any respect or directive regarding capital adequacy (whether or not having the force of law) of any such authority,
central bank, or comparable agency, has or would have the effect of reducing the rate of return on capital of Bank or any person or entity controlling Bank (a “Parent”) as a consequence of its obligations hereunder to a level below
that which Bank (or its Parent) could have achieved but for such adoption, change, or compliance (taking into consideration policies with respect to capital adequacy) by an amount deemed by Bank to be material, then from time to time, within fifteen
(15) days after demand by Bank, Borrower shall pay to Bank such additional amount or amounts as will compensate Bank for such reduction. A statement of Bank claiming compensation under this Section 3.7(c) and setting forth in reasonable
detail the basis for and the additional amount or amounts to be paid to it hereunder shall be conclusive absent manifest error. 
 (d)         If, at any time, Bank, in its sole and absolute discretion, determines that (i) the amount of LIBOR Loans for periods equal to the corresponding
Interest Periods are not available to Bank in the offshore currency interbank markets, or (ii) LIBOR does not accurately reflect the cost to Bank of lending the LIBOR Loans, then Bank shall promptly give notice thereof to Borrower. Upon the
giving of such notice, Bank’s obligation to make such LIBOR Loans shall terminate; provided, however, Loans shall not terminate if Bank and Borrower agree in writing to a different interest rate applicable to LIBOR Loans. 

(e)         If it shall become unlawful for Bank to continue to fund or maintain
any LIBOR Loans, or to perform its obligations hereunder, upon demand by Bank, any outstanding LIBOR Loans shall be automatically converted to Base Rate Loans. Notwithstanding the foregoing, to the extent a determination by Bank as described above
relates to a LIBOR Loan then being requested by Borrower pursuant to a Notice of Borrowing or 

  
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a Notice of Conversion/Continuation, Borrower shall have the option, subject to the provisions of Section 3.6(c), to (i) rescind such Notice of Borrowing or Notice of
Conversion/Continuation by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such rescission on the date on which Bank gives notice of its determination as described above, or (ii) modify such Notice of Borrowing or
Notice of Conversion/Continuation to obtain a Base Rate Loan or to have outstanding Loans converted into or continued as Base Rate Loans by giving notice (by facsimile or by telephone confirmed in writing) to Bank of such modification on the date on
which Bank gives notice of its determination as described above. 

4         CREATION OF SECURITY INTEREST 

4.1         Grant of Security Interest. Borrower hereby grants
Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and
products thereof. 
 Borrower acknowledges that it previously has entered, and/or may in the future enter, into
Bank Services Agreements with Bank. Regardless of the terms of any Bank Services Agreement, until the Obligations (other than inchoate indemnity obligations and Bank Services that have been cash secured) are satisfied in full and all commitments to
lend hereunder have been terminated, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority
perfected security interest in the Collateral granted herein (subject only to Permitted Liens that may have superior priority to Bank’s Lien in this Agreement). 

Bank’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations and
Bank Services that have been cash secured) are satisfied in full, and at such time, Bank shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and all rights therein shall revert to Borrower. In the event
(x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash
collateral for any outstanding Bank Services acceptable to Bank in its reasonable business judgment consistent with Bank’s then current practice for such Bank Services, if any. In the event such Bank Services consist of outstanding Letters of
Credit, Borrower shall provide to Bank cash collateral in an amount equal to one hundred percent (100%) of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in
connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit. If any of the Collateral shall be sold, transferred or otherwise disposed of by Borrower in a
transaction permitted by this Agreement, then such Collateral shall be deemed released from the security interest granted herein. Bank, at the request and sole expense of Borrower, shall execute and deliver to Borrower all releases or other
documents reasonably necessary or desirable for the release of the Liens created hereby on any Collateral released pursuant to this Section. 
 4.2         Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all
times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement) to the extent that the security interest in the Collateral
can be perfected by the taking of the actions required under this Agreement and the other Loan Documents; provided, however, that until the date that is forty five (45) days after the Effective Date or as is otherwise specified in the
Postclosing Letter, the foregoing representation, warranty and covenant with respect to the perfection and priority of the security interest granted herein shall only apply to the extent that the security interest in the Collateral can be perfected
by (i) the filing of a financing statement pursuant to the Code, (ii) the possession of the certificated securities, if any, evidencing the capital stock of or other equity interests issued by the Material Domestic Subsidiaries of Borrower
or any Domestic Guarantor or (iii) Bank having control over Collateral Accounts maintained at Bank. If Borrower shall acquire a commercial tort claim having a potential value in excess of Two Hundred Fifty Thousand Dollars ($250,000), Borrower
shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in
form and substance reasonably satisfactory to Bank. 
 4.3
        Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect
Bank’s interest or 

  
 9 

 
rights hereunder, including a notice that any disposition of the Collateral (other than Collateral subject to Permitted Liens having priority over the Lien granted hereunder), by either Borrower
or any other Person, shall be deemed to violate the rights of Bank under the Code. 

5         REPRESENTATIONS AND WARRANTIES 

Borrower represents and warrants as follows: 

5.1         Due Organization, Authorization; Power and Authority.

 (a)         Each Credit Party is duly existing and in good standing
as a Registered Organization in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction 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 have a material adverse effect on Borrower’s business. 
 (b)         In connection with this Agreement, Borrower has delivered, or caused to be delivered, to Bank completed certificates signed by Borrower or one of its
Subsidiaries, respectively, entitled “Perfection Certificate” (unless otherwise specified, references in this Agreement to “Perfection Certificate” or “Perfection Certificates” shall include all Perfection Certificates
delivered to Bank by Borrower or any of its Subsidiaries). Borrower represents and warrants to Bank that, as of the Effective Date, with respect to the Perfection Certificate delivered by Borrower on the Effective Date, (i) Borrower’s
exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (ii) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (iii) the
Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none; (iv) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more
than one, its chief executive office as well as Borrower’s mailing address (if different than its chief executive office); (v) Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of
formation, organizational structure or type, or any organizational number assigned by its jurisdiction; and (vi) all other information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and
complete in all material respects (it being understood and agreed that Borrower may from time to time update certain information in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in
this Agreement). If Borrower is not now a Registered Organization but later becomes one, Borrower shall promptly notify Bank of such occurrence and provide Bank with Borrower’s organizational identification number. 

(c)         The execution, delivery and performance by Borrower of the Loan
Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law,
(iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or
affected, or (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and
effect). 
 (d)         The execution, delivery and performance by
Borrower of the Loan Documents to which it is a party do not constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound
in which the default could reasonably be expected to have a material adverse effect on Borrower’s business. 
 5.2         Collateral. 
 (a)         Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien hereunder, free
and clear of any and all Liens except Permitted Liens. 

  
 10 

 (b)        Borrower has no deposit
accounts other than the deposit accounts with Bank, the deposit accounts, if any, described in the Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to
give Bank a perfected security interest therein. (other than deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s employees and identified to Bank by
Borrower as such). The Eligible Accounts are bona fide, existing obligations of the Account Debtors. 

(c)        No portion of the Collateral with a value in excess of Two Hundred
Fifty Thousand Dollars ($250,000) is in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate or as otherwise disclosed to Bank in writing. None of the components of the Collateral
shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 6.12. 
 (d)        Borrower is the sole owner, or has the right to the use, of the Intellectual Property which it owns or purports to own except for (a) licenses
granted to its customers in the ordinary course of business or that are otherwise permitted pursuant to Section 7.1, (b) over-the-counter software that is commercially available to the public, and (c) Intellectual Property licensed to
Borrower. Each Patent which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to
Borrower’s business has been judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the
extent such claim could not reasonably be expected to have a material adverse effect on Borrower’s business. 
 (e)        Except as noted on the Perfection Certificate or as otherwise disclosed to Bank in writing, Borrower is not a party to, nor is it bound by, any
Restricted License. 
 5.3        Accounts Receivable;
Inventory. For any Eligible Account in any Borrowing Base Certificate, all statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Eligible Accounts are and shall be true and correct in
all material respects and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all material respects what they purport to be. All sales and other transactions underlying or giving rise to each
Eligible Account comply in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are Eligible Accounts in
any Borrowing Base Certificate. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements
are legally enforceable in accordance with their terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency or similar laws relating to or limiting creditors’ rights generally. 

5.4        Litigation. Except as disclosed in the Perfection
Certificate or as otherwise disclosed pursuant to Section 6.2(h), there are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against Borrower or any of its Subsidiaries that could
reasonably be expected to result in a liability to Borrower or any of its Subsidiaries of more than, individually or in the aggregate, Five Hundred Thousand Dollars ($500,000). 

5.5        Financial Statements; Financial Condition. All
consolidated financial statements for Borrower and any of its Subsidiaries 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. 

5.6        Solvency. The fair salable value of Borrower’s,
Guarantors’ and their Subsidiaries assets (including goodwill minus disposition costs), taken as a whole (giving pro forma effect to the transactions contemplated by the Merger Agreement), exceed the fair value of their liabilities; Borrower,
Guarantors and their Subsidiaries, taken as a whole (giving pro forma effect to the transactions contemplated by the Merger Agreement), are not left with unreasonably small capital after giving pro forma effect to the transactions contemplated by
this Agreement and the Merger Agreement; and Borrower, Guarantors and their Subsidiaries, taken as a whole (giving pro forma effect to the transactions contemplated by the Merger Agreement), are able to pay their debts (including trade debts) as
they mature. 

  
 11 

 5.7        Regulatory
Compliance. 
 (a)        Borrower is not an “investment
company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under
Regulations X, T and U of the Federal Reserve Board of Governors). Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Government
Authorities that are necessary to continue their respective businesses as currently conducted. 

(b)        Borrower has complied in all material respects with the Federal Fair
Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is
defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of
Borrower’s or any of its Subsidiaries’ 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 legally. 

5.8        Subsidiaries; Investments. Borrower does not own any
stock, partnership interest or other equity securities except for Permitted Investments. 

5.9        Tax Returns and Payments; Pension Contributions.
Borrower has timely filed all required tax returns and reports, and Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer payment of any contested
taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Bank in writing of the commencement of, and any material
development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted
Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could reasonably be expected to result in additional material taxes becoming due and payable by Borrower. Borrower has paid all
amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or
permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other
governmental agency. 
 5.10        Use of Proceeds.
Borrower shall use the proceeds of the Credit Extensions solely as working capital, to fund the purchase price for the Acquisition and to fund its general business requirements and not for personal, family, household or agricultural purposes.

 5.11        Full Disclosure. No written representation,
warranty or other statement of Borrower in any certificate or written statement given to Bank, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given
to Bank and with the Borrower’s filings with the SEC, as and when furnished, 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 or forecasted results). 

5.12        Definition of “Knowledge.” For
purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual
knowledge, after reasonable investigation, of the Responsible Officers. 

  
 12 

 6        AFFIRMATIVE
COVENANTS 
 Borrower shall do all of the following: 

6.1        Government Compliance. 

(a)        Maintain its and all its Subsidiaries’ legal existence and good
standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations;
provided that Borrower may liquidate or dissolve a Subsidiary in connection with internal reorganizations in its reasonable business judgment. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which
it is subject, noncompliance with which could reasonably be expected to have a material adverse effect on Borrower’s business. 
 (b)        Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which it is a party and
the grant of a security interest to Bank in all of its property. Borrower shall promptly provide copies of any such obtained Governmental Approvals to Bank. 
 6.2        Financial Statements, Reports, Certificates. Deliver to Bank: 

(a)        Borrowing Base Reports. Within thirty (30) days after the
last day of each month, aged listings of accounts receivable and accounts payable (by invoice date) and a Deferred Revenue report (the “Borrowing Base Reports”); 

(b)        Borrowing Base Certificate. Within thirty (30) days after
the last day of each month and together with the Borrowing Base Reports, a duly completed Borrowing Base Certificate signed by a Responsible Officer; 
 (c)        Quarterly Financial Statements. As soon as available, but no later than forty five (45) days after the last day of each fiscal quarter, a
company prepared consolidated and consolidating balance sheet, income statement and statement of cash flows covering Borrower’s and each of its Subsidiary’s operations for such quarter certified by a Responsible Officer and in a form
acceptable to Bank (the “Quarterly Financial Statements”); 

(d)        Quarterly Compliance Certificate. Within forty five
(45) days after the last day of each fiscal quarter and together with the Quarterly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer; 

(e)        Annual Audited Financial Statements. As soon as available, but
no later than one hundred twenty (120) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements
from an independent certified public accounting firm acceptable to Bank in its reasonable discretion; 

(f)        Other Statements. Within five (5) Business Days of
delivery, copies of all statements, reports and notices made available to Borrower’s security holders or to any holders of Subordinated Debt; 
 (g)        SEC Filings. Within five (5) Business Days of filing, copies of all periodic and other reports, proxy statements and other materials filed by
any Credit Party with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered
pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts
such documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address; 

  
 13 

 (h)        Legal Action
Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or
in the aggregate, Five Hundred Thousand Dollars ($500,000) or more; 

(i)        Filings with Governmental Authorities. Within five
(5) Business Days after the same are sent or received, copies of all material correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or
Requirements of Law that are material to the business or operations of Borrower and its Subsidiaries, taken as a whole, and 
 (j)        Other Financial Information. Such other budgets, sales projections, operating plans and other financial information reasonably requested by Bank.

 6.3        Inventory; Returns. Keep all Inventory in
good and marketable condition, free from material defects, other than in the ordinary course of business or as may otherwise be permitted by Section 7.1. Returns and allowances between Borrower and its Account Debtors shall follow
Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims outside the ordinary course of business. 

6.4        Taxes; Pensions. Timely file, and require each of its
Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of
its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, or as otherwise permitted pursuant to the terms of Section 5.9, and shall deliver to Bank, on demand, appropriate
certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

6.5        Insurance. Keep its business and the Collateral insured
for risks and in amounts standard for companies in Borrower’s industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory to Bank. All property policies
shall have a lender’s loss payable endorsement showing Bank as a lender loss payee and waive subrogation against Bank. All liability policies shall show, or have endorsements showing, Bank as an additional insured. All policies (or their
respective endorsements) shall provide that the insurer shall give Borrower at least thirty (30) days notice before canceling, amending, or declining to renew its policy (or ten (10) days for nonpayment of premiums) and Borrower shall,
within one (1) Business Day of receiving any such notice, provide Bank notice thereof. At Bank’s request, Borrower shall deliver copies of policies certified by Borrower and evidence of all premium payments. Proceeds payable under any
policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of
any casualty policy up to Five Million Dollars ($5,000,000) with respect to any loss, but not exceeding Ten Million Dollars ($10,000,000) in the aggregate under all casualty policies in any one year, toward the replacement or repair of destroyed or
damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority
security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. If Borrower fails
to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this
Section 6.5, and take any action under the policies Bank deems prudent. 

6.6         Operating Accounts. 

(a)        Maintain each Credit Parties’ and their Domestic
Subsidiaries’ primary operating and other deposit accounts and securities accounts with Bank and Bank’s Affiliates. 
 (b)        Each Credit Party shall provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial
institution other than Bank or Bank’s Affiliates. 

  
 14 

 
For each Collateral Account that any Credit Party at any time maintains, such Credit Party shall, no later than forty five (45) days after the Effective Date, cause the applicable bank or
financial institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such
Collateral Account in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for
payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of employees and identified to Bank by Borrower as such. 
 6.7        Financial Covenants. Maintain as of the last day of each fiscal quarter, on a consolidated basis with respect to Borrower and its
Subsidiaries: 
 (a)        Liquidity Ratio. A Liquidity Ratio
of at least 1.25 to 1.0. 
 (b)        Adjusted EBITDA. Adjusted
EBITDA of not less than the following amounts for the applicable measuring period: 
  

			
	 Measuring Period

 
	  	
Adjusted EBITDA

 

	 Borrower’s second fiscal quarter of
2012
	  	($3,000,000)
	 Borrower’s third fiscal quarter of
2012
	  	$500,000
	 Borrower’s fourth fiscal quarter of
2012
	  	$3,000,000
	 Borrower’s first fiscal quarter of
2013
	  	$5,000,000
	 Borrower’s second fiscal quarter of
2013
	  	$4,500,000
	 Borrower’s third fiscal quarter of
2013
	  	$7,000,000
	 Borrower’s fourth fiscal quarter of
2013
	  	$8,000,000

 (c)        Fixed Charge Coverage Ratio. A
Fixed Charge Coverage Ratio of not less than (i) 1.10 to 1.00 for Borrower’s first, second and third fiscal quarters of 2014 and (ii) 1.25 to 1.00 for each of Borrower’s fiscal quarters thereafter. 

(d)        Minimum Cash at Bank. A balance of unrestricted cash at Bank
of not less than Fifteen Million Dollars ($15,000,000). 

6.8         Protection of Intellectual Property Rights. 

(a)        (i) Protect, defend and maintain the validity and enforceability of
any Intellectual Property material to Borrower’s business; (ii) promptly advise Bank in writing of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s business
to be abandoned, forfeited or dedicated to the public without Bank’s written consent. 

(b)        Provide written notice to Bank within thirty (30) days of
entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public). 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 (i) any Restricted License 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 Restricted
License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Bank’s rights and remedies under this Agreement
and the other Loan Documents. 
 6.9        Litigation
Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent
that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 

  
 15 

 6.10        Access to Collateral;
Books and Records. Allow Bank, or its agents, at reasonable times, on five (5) Business Days’ notice (provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy
Borrower’s Books. Such inspections or audits shall be conducted no more often than once annually unless an Event of Default has occurred and is continuing. The foregoing inspections and audits shall be at Borrower’s expense, and the charge
therefor shall be Eight Hundred Fifty Dollars ($850) per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrower and Bank schedule
an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedule the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrower shall pay Bank
any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 
 6.11        Formation or Acquisition of Subsidiaries. Within thirty (30) days after (i) a Credit Party forms any Material Subsidiary or acquires
any Material Subsidiary or (ii) any Subsidiary that is not a Material Subsidiary becomes a Material Subsidiary (such determination in this clause (ii) to be made concurrently with the delivery of the Quarterly Financial Statements based on
the information contained therein), such Credit Party shall (a) cause such Material Subsidiary to provide to Bank either a joinder to the Loan Agreement to cause such Material Subsidiary to become a co-borrower hereunder or provide Bank with a
Guaranty, together with such appropriate financing statements and/or Control Agreements, all in form and substance satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the
assets of such Material Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such Material Subsidiary, in form and substance satisfactory
to Bank, and (c) provide to Bank all other documentation requested by Bank in form and substance satisfactory to Bank, including one or more opinions of counsel satisfactory to Bank, which in its opinion is appropriate with respect to the
execution and delivery of the applicable documentation referred to above. Any document, agreement, or instrument executed or issued pursuant to this Section 6.11 shall be a Loan Document. 

6.12        Organizational Changes; Locations of Collateral.
Borrower will deliver prior written notice to Bank at least five (5) Business Days prior to Borrower doing any of the following: (i) changing its jurisdiction of organization, (ii) changing its organizational structure or type,
(iii) changing its legal name, (iv) changing any organizational number (if any) assigned by its jurisdiction of organization, or (v) adding any new offices or business locations, including warehouses (unless such new offices or
business locations contain less than Two Hundred Fifty Thousand Dollars ($250,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of Two Hundred Fifty Thousand
Dollars ($250,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate. If Borrower intends to deliver any portion of the Collateral valued, individually or in the aggregate, in excess
of Two Hundred Fifty Thousand Dollars ($250,000) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral, then Borrower
will first (i) receive the written consent of Bank and (ii) cause such bailee, to execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. Notwithstanding the foregoing, Borrower shall not
be required to deliver notice or a bailee waiver to Bank with respect to (i) test equipment that is provided to third parties in the ordinary course of business and (ii) Inventory held outside the United States in the ordinary course of
business. 
 6.13        Further Assurances. Execute any
further instruments and take further action as Bank reasonably requests to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. 

7        NEGATIVE COVENANTS 

Borrower shall not do any of the following without Bank’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed: 

7.1        Dispositions. Convey, sell, lease, transfer, assign, or
otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for: 

(a)        Transfers in the ordinary course of business for reasonably
equivalent consideration and/or fair market value; 

  
 16 

 (b)        (i) Transfers to a
Credit Party from Borrower or any of its Subsidiaries; (ii) Transfers from a Subsidiary that is not a Credit Party to another Subsidiary that is not a Credit Party and (iii) Transfers from a Credit Party to a Subsidiary that is not a
Credit Party that constitutes a Permitted Investment; 

(c)        Transfers of property in connection with sale-leaseback transactions;

 (d)        Transfers of property to the extent such property is
exchanged for credit against, or proceeds are promptly applied to, the purchase price of other property used or useful in the business of Borrower or its Subsidiaries; 

(e)        Transfers constituting licenses and similar arrangements for the use
of the property of Borrower or its Subsidiaries in the ordinary course of business and consistent with past practices; 
 (f)        Transfers otherwise permitted by the Loan Documents; 
 (g)        sales or discounting of delinquent accounts in the ordinary course of business; 

(h)        Transfers of non-core patents that are not material to the business
of Borrower; 
 (i)        Transfers associated with the making or
disposition of a Permitted Investment; 
 (j)        Transfers of
Inventory in the ordinary course of business; 
 (k)        Transfers
of worn-out or obsolete property; and 
 (l)        Transfers of assets
(other than Accounts and Inventory (unless such Transfer is in the ordinary course of Borrower’s business)) not otherwise permitted in this Section 7.1, provided, that the aggregate net book value of all such Transfers by Borrower and its
Subsidiaries, together, shall not exceed One Million Dollars ($1,000,000) in any fiscal year. 

7.2        Changes in Business; Change in Control; Jurisdiction of
Formation. Engage in any material line of business other than those lines of business conducted by Borrower and its Subsidiaries on the date hereof and any businesses reasonably related, complementary or incidental thereto or reasonable
extensions thereof; or permit or suffer any Change in Control. Borrower will not, without prior written notice to Bank, change its jurisdiction of formation. 
 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 other than in connection with the Acquisition. Notwithstanding the foregoing, (a) a Subsidiary of a Credit Party
may merge or consolidate into another Subsidiary or into a Credit Party. (b) the Credit Parties may consummate the Acquisition, and (c) Borrower or its Subsidiaries may consummate Permitted Acquisitions provided that the total cash
consideration payable by Borrower and its Subsidiaries in connection with any such Permitted Acquisitions (including any earnout payments) does not exceed Two Million Five Hundred Thousand Dollars ($2,500,000) in any fiscal year in the aggregate for
all such transactions. 
 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, allow, or suffer 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, permit any Collateral not to be subject to the first priority security interest granted herein, or enter into any agreement, document, instrument or other
arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting a Credit Party or any if its Subsidiaries from assigning, mortgaging, pledging, granting a security interest in or
upon, or encumbering any of a Credit Party’s or any of its Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein. 

  
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 7.6        Maintenance of
Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.6(b) hereof. 
 7.7        Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock
provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange thereof, (ii) Borrower may pay dividends solely in common stock;
(iii) Borrower may purchase, cancel or retain capital stock in satisfaction of withholding tax obligations in connection with equity-based compensation plans; (iv) Borrower may purchase fractional shares of capital stock arising out of
stock dividends, splits or combinations or business combinations or conversion of convertible securities; (v) Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase agreements or other similar
agreements so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of Two Hundred Fifty Thousand Dollars
($250,000) per fiscal year; or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. For the avoidance of doubt, any reference to “capital stock” in this Agreement
shall not include any Indebtedness convertible into equity securities of the Borrower. 

7.8        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 non-affiliated Person, (b) transactions permitted pursuant to the terms of Section 7.2 hereof, (c) transactions that are approved by a majority of the
disinterested members of the Borrower’s Board of Directors; and (d) transactions with Subsidiaries that (i) are not otherwise prohibited under any other provision of this Agreement, (ii) would not be an Event of Default under any
other provision of this Agreement and (iii) would not, with the passage of time or otherwise, constitute an Event of Default under any other provision of this Agreement. 

7.9        Subordinated Debt. (a) Make or permit any payment
on any Subordinated Debt, except as permitted under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated
Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 
 7.10        Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment
Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any
Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit 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 have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in,
permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower,
including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 
 8        EVENTS OF DEFAULT 
 Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

8.1        Payment Default. Borrower fails to (a) make any payment of
principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations (other than Bank Expenses) within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure
period shall not apply to 

  
 18 

 
payments due on the Revolving Line Maturity Date or the Term Loan Maturity Date) (c) pay any Bank Expenses incurred through the Effective Date on the date the initial Credit Extension is
made or (d) pay any Bank Expenses due after the Effective Date within fifteen (15) days after invoicing. During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event
of Default (but no Credit Extension will be made during the cure period); 

8.2        Covenant Default. 

(a)        Borrower fails or neglects to perform any obligation in Sections 6.2,
6.4, 6.5, 6.6 or 6.7 or violates any covenant in Section 7; or 

(b)        Borrower fails or neglects to perform, keep, or observe any other
term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that
can be cured, has failed to cure the 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 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 cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among
other things, to financial covenants or any other covenants set forth in clause (a) above; 

8.3        Material Adverse Change. A Material Adverse Change occurs;

 8.4        Attachment; Levy; Restraint on Business.

 (a)        (i) The service of process seeking to attach, by trustee
or similar process, any funds of Borrower or of any entity under the control of Borrower (including a Subsidiary) on deposit or otherwise maintained with Bank or any Bank Affiliate, or (ii) a notice of lien or levy is filed against any of
Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise);
provided, however, no Credit Extensions shall be made during any ten (10) day cure period; or 

(b)        (i) any material portion of Borrower’s assets is attached,
seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 

8.5        Insolvency (a) Borrower is unable to pay its debts
(including trade debts) as they become due or otherwise becomes insolvent (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within forty-five (45) days
(but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 
 8.6        Other Agreements. There is, under any agreement to which Borrower or any Guarantor is a party with a third party or parties, (a) any
default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of One Million Dollars ($1,000,000); or (b) any
default by Borrower or Guarantor , the result of which could reasonably be expected to have a material adverse effect on the business of Borrower and its Subsidiaries, taken as a whole; 

8.7        Judgments. One or more final judgments, orders, or
decrees for the payment of money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars ($500,000) (not covered by independent third-party insurance as to which liability has been accepted by such insurance
carrier) shall be rendered against Borrower and the same are not, within ten (10) days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration of any
such stay (provided that no Credit Extensions will be made prior to the discharge, stay, or bonding of such judgment, order, or decree); 

  
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8.8        Misrepresentations. Borrower or any Person acting for
Borrower makes any representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Bank or to induce Bank to enter this Agreement or any Loan Document, and such representation, warranty,
or other statement is incorrect in any material respect when made; 

8.9        Subordinated Debt. A default or breach occurs under any
agreement between Borrower and any creditor of Borrower owed One Million Dollars ($1,000,000) or more that signed a subordination, intercreditor, or other similar agreement with Bank, where any such default or breach entitles the creditor party
thereto to accelerate the obligations that are the subject of any such agreement or any creditor that has signed such an agreement with Bank breaches any terms of such agreement; 

8.10        Guaranty. (a) Any guaranty of any Obligations
terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.4, 8.5, 8.7, or 8.8
occurs with respect to any Guarantor; or 

8.11        Governmental Approvals. Any Governmental Approval shall
have been (a) revoked, rescinded, suspended, modified in an adverse manner or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing with respect to any
applications for renewal of any of such Governmental Approval or that could reasonably be expected to result in the Governmental Authority taking any of the actions described in clause (a) above, and such decision or such revocation,
rescission, suspension, modification or non-renewal (i) has, or could reasonably be expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications of Borrower or any of its Subsidiaries to hold such
Governmental Approval in any applicable jurisdiction and such revocation, rescission, suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any of its Subsidiaries to hold
any Governmental Approval in any other jurisdiction. 

9        BANK’S RIGHTS AND REMEDIES 

9.1         Rights and Remedies. While 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)        for any Letters of Credit, demand that Borrower
(i) deposit cash with Bank in an amount equal to one hundred percent (100%) of the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in
connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and
Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 

(d)        terminate any FX Contracts; 

(e)        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 such funds, and verify the amount of such account; 

  
 20 

 (f)        make any payments and do
any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests 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; 
 (g)        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; 
 (h)        ship, reclaim, recover, store,
finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works,
rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection
with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 

(i)        place a “hold” on any account maintained with Bank and/or
deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

(j)        demand and receive possession of Borrower’s Books; and

 (k)        exercise all rights and remedies available to Bank under
the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof). 
 9.2        Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the
continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors;
(c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies;
(e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the
Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Bank’s security
interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied (or with respect to Bank Services, cash secured) in full and Bank is under no
further obligation to make Credit Extensions hereunder. Bank’s foregoing 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        Protective Payments. If Borrower fails to obtain the
insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay to a Person other than Bank under this Agreement or any other Loan Document, Bank may obtain such
insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable
efforts to provide Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. 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        Application of Payments
and Proceeds Upon Default. If an Event of Default has occurred and is continuing, Bank may apply any funds in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or
other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its sole discretion. Any surplus shall be paid to Borrower 

  
 21 

 
or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred
payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the
Obligations until the actual receipt by Bank of cash therefor. 

9.5        Bank’s Liability for Collateral. So long as Bank
complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible 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. Borrower bears all risk of loss, damage or destruction of the Collateral.

 9.6        No Waiver; Remedies Cumulative. Bank’s
failure, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict performance and compliance
herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the waiver and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under this Agreement
and the other Loan Documents 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 shall not preclude Bank from exercising any other remedy
under this Agreement or other remedy available at law or in equity, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

9.7        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. 
 10        NOTICES 

All notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other
Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified
mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges
prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below. Bank or Borrower may change its mailing or
electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10. 
  

							
		 	If to Borrower:	  	 Mindspeed Technologies, Inc.
 4000 Macarthur Blvd., East Tower
 Newport Beach, CA 92660

Attn: Stephen Ananias, CFO
 Fax: (949) 246-8267
 Email:
stephen.ananias@mindspeed.com
	  	
				
		 	If to Bank:        	  	 Silicon Valley Bank
 15260 Ventura Boulevard
 Suite 980

Sherman Oaks CA 91403
 Attn: Jack Garza – Relationship Manager
 Fax: (818) 783-7984

Email: jgarza@svb.com
	  	

  
 22 

 11        CHOICE OF LAW,
VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE 
 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; provided, however, that nothing in this Agreement shall be deemed to operate to
preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower expressly
submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and
hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of
such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so
made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY
CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, 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. 
 WITHOUT INTENDING IN ANY WAY
TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY, if the above waiver of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any nature
between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or, if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance
with California Code of Civil Procedure Section 638 (or pursuant to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting without a jury, in Santa Clara County, California;
and the parties hereby submit to the jurisdiction of such court. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive. The
private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be
closed to the public and confidential and all records relating thereto shall be permanently sealed. If during the course of any dispute, a party desires to seek provisional relief, but a judge has not been appointed at that point pursuant to the
judicial reference procedures, then such party may apply to the Santa Clara County, California Superior Court for such relief. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the
rules of evidence applicable to judicial proceedings. The parties shall be entitled to discovery which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The private
judge shall oversee discovery and may enforce all discovery rules and orders applicable to judicial proceedings in the same manner as a trial court judge. The parties agree that the selected or appointed private judge shall have the power to decide
all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to California Code of Civil Procedure § 644(a). Nothing in this paragraph shall limit the right of any party at any
time to exercise self-help remedies, foreclose against collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this paragraph. 

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 or obligations 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, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement and the other Loan Documents.

  
 23 

12.2        Indemnification. Borrower agrees to indemnify, defend
and hold Bank and its directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and
liabilities (collectively, “Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or expenses (including Bank Expenses) in any way suffered,
incurred, or paid by such Indemnified Person as a result of, following from, consequential to, or arising from transactions between Bank and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly
caused by such Indemnified Person’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 Provisions. Each provision of this
Agreement is severable from every other provision in determining the enforceability of any provision. 

12.5        Correction of Loan Documents. Bank may correct patent
errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties so long as Bank provides Borrower with written notice of such correction and allows Borrower at least ten (10) days to object to such correction.
In the event of such objection, such correction shall not be made except by an amendment signed by both Bank and Borrower. 
 12.6        Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or
termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the
generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan
Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or
commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 

12.7        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, is an original, and all taken together, constitute one Agreement. 

12.8        Survival. All covenants, representations and warranties
made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations. Bank Services that have been cash secured and any other obligations which, by
their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1
shall survive until the termination of all Bank Services Agreements. The obligation of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run.

 12.9        Confidentiality. In handling any
confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and
Affiliates, together with Bank, collectively, “Bank Entities”); (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its commercially reasonable efforts to obtain any
prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with
Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a confidentiality
agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) 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 (ii) disclosed to Bank by a third party if Bank does not know that the third party is prohibited from disclosing the information. 

  
 24 

 Bank Entities may use the confidential information for reporting purposes
and the development and distribution of databases and market analysis so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the
immediately preceding sentence shall survive the termination of this Agreement. 

12.10        Attorneys’ Fees, Costs and Expenses. In any
action or proceeding between Borrower and Bank arising out of or relating to the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses incurred, in addition to any other
relief to which it may be entitled. 
 12.11        Electronic
Execution of Documents. The words “execution,” “signed,” “signature” and words of like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including,
without limitation, any state law based on the Uniform Electronic Transactions Act. 

12.12        Captions. The headings used in this Agreement are for
convenience only and shall not affect the interpretation of this Agreement. 

12.13        Construction of Agreement. The parties mutually
acknowledge that they and their attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist.

 12.14        Relationship. The relationship of the
parties to this Agreement is determined solely by the provisions of this Agreement. The parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of
parties to an arm’s-length contract. 

12.15        Third Parties. Nothing in this Agreement, whether
express or implied, is intended to: (a) confer any benefits, rights or remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or
discharge the obligation or liability of any person not an express party to this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 

13             DEFINITIONS 

13.1        Definitions. As used in the Loan Documents, the word
“shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting
amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms have the following meanings: 
 “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other
sums owing to Borrower. 
 “Account Debtor” is any “account debtor” as defined in the
Code with such additions to such term as may hereafter be made. 
 “Acquisition” means the
transactions contemplated by the Merger Agreement. 
 “Advance” or “Advances”
means an advance (or advances) under the Revolving Line. 
 “Adjusted EBITDA” is EBITDA plus
(i) other non-cash charges including but not limited to stock based compensation, (ii) non-recurring charges incurred through the end of the second fiscal quarter of 2013 (which shall include transaction fees related to the Acquisition,
sign on bonuses, transitional employee expenses, redundant contractual commitments and severance payment), which non-recurring charges shall be capped at Five Million Five Hundred Thousand Dollars ($5,500,000) in the aggregate,
(iii) non-recurring charges incurred in connection with any Permitted Acquisition approved by Bank in its sole discretion (iv) unusual, non-recurring or other extraordinary 

  
 25 

 
charges or expenses approved by Bank in its sole discretion, (v) pro forma cost savings and synergies approved by Bank in its sole discretion, and (vi) to the extent covered by
insurance proceeds, losses in connection with casualty events approved by Bank in its sole discretion. 
 For
the purposes of calculating Adjusted EBITDA for any period, (a) if at any time during such period, Borrower or any of its Subsidiaries shall have made a Permitted Acquisition (or the effects therefor shall have occurred or be implemented in
such period), Adjusted EBITDA for such period shall be calculated on a Pro Forma Basis. 

“Affiliate” is, with respect to any Person, each other 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. 
 “Agreement” is defined in the preamble hereof.

 “Applicable Term Loan Principal Payment Amount” is (i) Three Hundred Seventy Five
Thousand Dollars ($375,000) for the principal payments due for each quarter during the 2013 calendar year, (ii) Seven Hundred Fifty Thousand Dollars ($750,000) for the principal payments due for each quarter during the 2014 calendar year,
(iii) One Million One Hundred Twenty Five Thousand Dollars ($1,125,000) for the principal payments due for each quarter during the 2015 calendar year and (iv) One Million Five Hundred Thousand Dollars ($1,500,000) for the principal
payments due for each quarter during the 2016 calendar year. 
 “Applicable Unused Fee
Percentage’ is (i) one half of one percent (0.50%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was less than 1.35 to 1.00, (ii) three eighths of one percent
(0.375%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than or equal to 1.35 to 1.00 but less than or equal to 1.50 to 1.00 or (iii) one quarter of one percent (0.25%)
if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than 1.50 to 1.00. 
 “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the Borrowing Base minus (b) the outstanding principal balance of
any Advances. 
 “Bank” is defined in the preamble hereof. 

“Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable
attorneys’ fees and expenses) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise
incurred with respect to Borrower or any other Credit Party. 
 “Bank Services” are
any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management
services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be
identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”). 
 “Base Rate” is the prime rate published in the Money Rates section of the Western Edition of The Wall Street Journal; provided however, that if such rate becomes unavailable, there after
the “Base Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
 “Base Rate Loan” means a Loan that bears interest at the Base Rate. 
 “Base Rate Margin” is (i) one and three quarters percent (1.75%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter
was less than 1.35 to 1.00, (ii) one and one half 

  
 26 

 
percent (1.50%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than or equal to 1.35 to 1.00 but less than or
equal to 1.50 to 1.00 or (iii) one and one quarter percent (1.25%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than 1.50 to 1.00. 

“Borrower” is defined in the preamble hereof. 

“Borrower’s Books” are all Borrower’s books and records including ledgers, federal and state
tax returns, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information. 

“Borrowing Base” is (a) eighty five percent (85%) of Eligible Accounts (other than Eligible
Discounted Distributor Accounts and Eligible Japanese Accounts) plus (b) sixty five percent (65%) of Eligible Discounted Distributor Accounts plus (c) the lesser of (i) eighty five percent (85%) of Eligible Japanese Accounts
or (ii) Five Million Dollars ($5,000,000), all as determined by Bank based on Borrower’s most recent Borrowing Base Certificate; provided, however, that Bank may decrease the foregoing amounts and/or percentages in its good faith business
judgment based on events, conditions, contingencies, or risks which, as determined by Bank, could reasonably be expected to materially and adversely affect the value of the Eligible Accounts. 

“Borrowing Base Certificate” is that certain certificate in the form attached hereto as Exhibit
D. 
 “Borrowing Base Report” is defined in Section 6.2(a). 

“Borrowing Resolutions” are, with respect to any Person, those resolutions substantially in the form
attached hereto as Exhibit E. 
 “Business Day” is any day other than a Saturday, Sunday
or other day on which banking institutions in the State of California are authorized or required by law or other governmental action to close, except that if any determination of a “Business Day” shall relate to a LIBOR Loan, the term
“Business Day” shall also mean a day on which dealings are carried on in the London interbank market, and if any determination of a “Business Day” shall relate to an FX Forward Contract, the term “Business Day” shall
mean a day on which dealings are carried on in the country of settlement of the foreign (i.e., non-Dollar) currency. 
 “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more
than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money market funds at least ninety-five percent (95%) of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (c) of this definition. 
 “Change
in Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), other than a trustee or other fiduciary holding
securities under an employee benefit plan of Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing forty nine percent
(49%) or more of the combined voting power of Borrower’s then outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors
of Borrower (together with any new directors whose election by the Board of Directors of Borrower was approved by a vote of not less than two-thirds of the directors then still in office who either were directions at the beginning of such period or
whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office. 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in
the State of California; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such

  
 27 

 
term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of,
or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as
enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A.

 “Collateral Account” is any Deposit Account, Securities Account, or Commodity Account.

 “Commitment Letter” means that certain Commitment Letter executed by Borrower and Bank dated
as of January 5, 2012. 
 “Commodity Account” is any “commodity account” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Compliance
Certificate” is that certain certificate in the form attached hereto as Exhibit F. 

“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that
Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another Person such as an obligation, in each case, 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; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) 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 any guarantee or other support arrangement. 
 “Continuation Date” means any date on which Borrower elects to continue a LIBOR Loan into another Interest Period. 

“Control Agreement” is any control agreement entered into among the depository institution at which
Borrower maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of
the Code) over such Deposit Account, Securities Account, or Commodity Account. 
 “Conversion
Date” means any date on which Borrower elects to convert a Base Rate Loan to a LIBOR Loan or a LIBOR Loan to a Base Rate Loan. 
 “Convertible Notes” are those certain unsecured 6.50% convertible senior notes due August 2013 issued by Borrower pursuant to an indenture, dated as of August 1, 2008, between the
Borrower and Wells Fargo Bank, N.A., as trustee. 
 “Copyrights” are any and all copyright
rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

“Credit Extension” is any Advance, the Term Loan or any other extension of credit by Bank for
Borrower’s benefit under this Agreement. 
 “Credit Party” means each of Borrower and each
Guarantor. 

  
 28 

 “Default Rate” is defined in Section 2.3(b).

 “Deferred Revenue” is all amounts received or invoiced in advance of performance
under contracts and not yet recognized as revenue. 
 “Deposit Account” is any
“deposit account” as defined in the Code with such additions to such term as may hereafter be made. 

“Designated Deposit Account” is Borrower’s deposit account, account number 3300624374, maintained
with Bank. 
 “Dollars,” “dollars” or use of the sign
“$” means only lawful money of the United States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United
States. 
 “Dollar Equivalent” is, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San
Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Domestic Guarantor’ means each of Picochip, Maker Communications, Mindspeed Development, Mindspeed Technologies and any Material Domestic Subsidiary that guarantees the Obligations.

 “Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or
any state or territory thereof or the District of Columbia. 
 “EBITDA” shall mean (a) Net
Income, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense. 

“Effective Amount” means with respect to any Loans on any date, the aggregate outstanding principal
amount thereof after giving effect to any borrowing and prepayments or repayments thereof occurring on such date. 
 “Effective Date” is defined in the preamble hereof. 
 “Effective Date Notice of Borrowing” means a notice given by Borrower to Bank in accordance with Section 3.1, substantially in the form of Exhibit B-1, with appropriate
insertions. 
 “Eligible Accounts” means Accounts which arise in the ordinary course of
Borrower’s or a Guarantor’s business that meet all Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after the Effective Date to adjust any of the criteria set forth below and to
establish new criteria in its good faith business judgment, based on the quality and dilution of the Accounts as determined by initial and ongoing periodic collateral field examinations by Bank. Unless Bank otherwise agrees in writing, Eligible
Accounts shall not include: 
 (a)         Accounts for which the
Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 

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

(c)         Accounts with credit balances over ninety (90) days from
invoice date; 
 (d)         Accounts owing from an Account Debtor, in
which fifty percent (50%) or more of the Accounts have not been paid within ninety (90) days of invoice date; 

  
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 (e)         Accounts owing from an
Account Debtor which does not have its principal place of business in the United States (other than Eligible Japanese Accounts and Eligible Foreign Accounts) unless supported by foreign credit insurance acceptable to Bank; 

(f)         Accounts billed and/or payable outside of the United States (other
than Eligible Japanese Accounts); 
 (g)         Accounts owing from an
Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit
accounts) other than Eligible Discounted Distributor Accounts; 

(h)         Accounts owing from an Account Debtor which is a United States
government entity or any department, agency, or instrumentality thereof unless Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended; 

(i)         Accounts for demonstration or promotional equipment, or in which
goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 

(j)         Accounts owing from an Account Debtor where goods or services have
not yet been rendered to the Account Debtor (sometimes called memo billings or pre-billings); 

(k)         Accounts subject to contractual arrangements between Borrower and an
Account Debtor where payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the
contract (sometimes called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (l)         Accounts owing from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of
Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings); 
 (m)         Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust; 

(n)         Accounts owing from an Account Debtor that has been invoiced for
goods that have not been shipped to the Account Debtor unless Bank, Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and
has ownership of the goods wherever located, (ii) a bona fide sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts);

 (o)         Accounts for which the Account Debtor has not been
invoiced; 
 (p)         Accounts that represent non-trade receivables
or that are derived by means other than in the ordinary course of Borrower’s business; 
 (q)
        Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond 90 days; 
 (r)         Accounts arising from chargebacks, debit memos or other payment deductions taken by an Account Debtor (but only to the extent the chargeback is
determined valid and not collected by Borrower); 
 (s)
        Accounts arising from product returns and/or exchanges (sometimes called “warranty” or “RMA” accounts); 

  
 30 

 (t)         Accounts in which the
Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 

(u)         Accounts owing from an Account Debtor with respect to which Borrower
has received Deferred Revenue (but only to the extent of such Deferred Revenue), other than with respect to Eligible Discounted Distributor Accounts; 
 (v)         Accounts owing from an Account Debtor, whose total obligations to Borrower exceed thirty-five percent (35%) of all Accounts, for the amounts that
exceed that percentage, unless Bank approves in writing; and 
 (w)
        Accounts for which Bank in its good faith business judgment after inquiry and consultation with Borrower determines collection to be doubtful, including, without limitation, accounts represented by
“refreshed” or “recycled” invoices. 
 “Eligible Discounted Distributor
Accounts” means Accounts which arise in the ordinary course of Borrower’s or a Guarantor’s business that meet all Borrower’s representations and warranties in Section 5.3, that otherwise meets the criteria for Eligible
Accounts (in each case, other than with respect to Subsections (g) and (u) of the definition thereof) and with respect to which the account debtors thereof have been agreed upon by Borrower and Bank from time to time. 

“Eligible Foreign Accounts” means Accounts which arise in the ordinary course of Borrower’s or a
Guarantor’s business that meet all of Borrower’s representations and warranties in Section 5.3, and that are Accounts owing from an Account Debtor which does not have its principal place of business in the United States (other than
Eligible Japanese Accounts) and that, at all times following the date that is sixty (60) days after the Effective Date, are supported by foreign credit insurance acceptable to Bank. 

“Eligible Japanese Accounts” means Accounts which arise in the ordinary course of Mindspeed Japan’s
business that meets all Borrower’s representations and warranties in Section 5.3, that otherwise meets the criteria for Eligible Accounts and that are billed by Mindspeed Japan out of Japan and that, at all times following the date that is
sixty (60) days after the Effective Date, are subject to a first priority security interest (or the Japanese equivalent thereof) in favor of Bank pursuant to the Japanese Secured Guaranty Documents. 

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may
hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing. 

“ERISA” is the Employee Retirement Income Security Act of 1974, and its regulations. 

“Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

“Fee Letter” means that certain Fee Letter executed by Borrower and Bank dated as of January 5,
2012. 
 “Fixed Charge Coverage Ratio” is a ratio of (i) Adjusted EBITDA minus the sum of
cash taxes, IP expenditures, and capitalized expenditures to (ii) the sum of Interest Expense and scheduled principal payments on all Indebtedness, all calculated on a trailing twelve (12) month basis. 

“Foreign Currency” means lawful money of a country other than the United States. 

“Foreign Subsidiary” means any Subsidiary which is not a Domestic Subsidiary. 

  
 31 

 “Funding Date” is any date on which a Credit Extension is
made to or for the account of Borrower which shall be a Business Day. 
 “FX Contract” is any
foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the
Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant
segment of the accounting profession, which are applicable to the circumstances as of the date of determination. In the event that any “Accounting Change” (as defined below) shall occur and such change results in a change in
the method of calculation of financial covenants, standards or terms in this Agreement, then Borrower and the Bank agree to enter into negotiations to amend such provisions of this Agreement so as to reflect equitably such Accounting Changes with
the desired result that the criteria for evaluating Borrower’s financial condition shall be the same after such Accounting Changes as if such Accounting Changes had not been made. The Borrower and the Bank further agree that the Bank shall not
charge Borrower any amendment, negotiation or other fee in connection with such negotiations or amendment. Until such time as such an amendment shall have been executed and delivered by Borrower and Bank, all financial covenants, standards and terms
in this Agreement shall continue to be calculated or construed as if such Accounting Changes had not occurred. “Accounting Changes” refers to changes in accounting principles required by the promulgation of any rule,
regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants or, if applicable, the SEC. 

“General Intangibles” is all “general intangibles” as defined in the Code in effect on the
date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds, security and other deposits, payment intangibles, contract rights, options to
purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption
insurance), payments of insurance and rights to payment of any kind. 
 “Governmental Approval”
is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” is any nation or government, any state or other political subdivision thereof,
any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization. 
 “Guarantor” is any present or future guarantor of the
Obligations, including Picochip, Maker Communications, Mindspeed Development, Mindspeed Technologies, Picochip UK, Mindspeed UK, Mindspeed Japan and any Material Subsidiary. 

“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
with respect to Indebtedness described in clauses (a) through (c) of this definition; provided, that, for the avoidance of doubt, unsecured earnout obligations or deferred payment of consideration payable in connection with the Acquisition
or any other acquisition permitted hereunder shall not constitute “Indebtedness” hereunder. 

“Indemnified Person” is defined in Section 12.2. 

“Insolvency Proceeding” is any proceeding 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. 

  
 32 

 “Intellectual Property” means all of a Credit Party’s
right, title, and interest in and to the following: 
 (a)         its
Copyrights, Trademarks and Patents; 
 (b)         any and all trade
secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals; 
 (c)         any and all source code, object code and software; 
 (d)         any and all design rights and inventions which may be available to a Borrower; 

(e)         All internet domain names (including any right related to the
registration thereof), trade names, brand names, d/b/a’s, logos, symbols, trade dress and all goodwill associated therewith and symbolized thereby; 
 (f)         any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue
for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and 
 (g)         all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents. 

“Interest Expense” means for any fiscal period, cash interest expense determined in accordance with GAAP
for the relevant period ending on such date, including, in any event, cash interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all commissions,
discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs (or net gains) associated with interest rate swap, cap, and similar arrangements, and the
interest portion of any deferred payment obligation (including leases of all types). 
 “Interest
Payment Date” means, with respect to any LIBOR Loan, (x) for an Interest Period of three (3) months or less, the last day of each Interest Period applicable to such LIBOR Loan, and (y) for an Interest Period of longer than
three (3) months, each day that is three months, or a whole multiple thereof, after the first day of such Interest Period and the last day of such Interest Period, and, with respect to Base Rate Loans, the last day of each calendar quarter (or,
if the last day of the quarter does not fall on a Business Day, then on the first Business Day following such date), and each date a Base Rate Loan is converted into a LIBOR Loan to the extent of the amount converted to a LIBOR Loan. 

“Interest Period” means, as to any LIBOR Loan, the period commencing on the date of such LIBOR Loan, or
on the conversion/continuation date on which the LIBOR Loan is converted into or continued as a LIBOR Loan, and ending on the date that is one (1), two (2), three (3), or six (6) months thereafter, in each case as Borrower may elect in the
applicable Notice of Borrowing or Notice of Conversion/Continuation; provided, however, that (a) no Interest Period with respect to any LIBOR Loan shall end later than the Revolving Maturity Date or the Term Loan Maturity Date (as
applicable), (b) the last day of an Interest Period shall be determined in accordance with the practices of the LIBOR interbank market as from time to time in effect, (c) if any Interest Period would otherwise end on a day that is not a
Business Day, that Interest Period shall be extended to the following Business Day unless, in the case of a LIBOR Loan, the result of such extension would be to carry such Interest Period into another calendar month, in which event such Interest
Period shall end on the preceding Business Day, (d) any Interest Period pertaining to a LIBOR Loan that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period, and (e) interest shall accrue from and include the first Business Day of an Interest Period but exclude the last
Business Day of such Interest Period. 
 “Interest Rate Determination Date” means each date for
calculating the LIBOR for purposes of determining the interest rate in respect of an Interest Period. The Interest Rate Determination Date shall be the second Business Day prior to the first day of the related Interest Period for a LIBOR Loan.

  
 33 

 “Inventory” is all “inventory” as defined in the
Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products,
including without limitation such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above. 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest
or other securities), and any loan, advance or capital contribution to any Person. 
 “Japanese Secured
Guaranty Documents” means those certain guaranty and security agreement executed by Mindspeed Japan in favor of Bank and any other documents reasonably requested by Bank in connection with the execution thereof. 

“Japanese Share Pledge Documents” means a share pledge agreement, minutes of board of directors and
related documents, request to update the shareholders registry, updated shareholders registry, seal certificate and any other documents reasonably requested by Bank with respect to the pledge by Borrower to Bank of one hundred percent (100%) of
the issued and outstanding equity securities of Mindspeed Japan. 
 “Letter of Credit” is a
standby or commercial letter of credit issued by Bank upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement. 
 “LIBOR Loan” means a Loan that bears interest based at the LIBOR Rate. 
 “LIBOR Rate” means, for any Interest Rate Determination Date with respect to an Interest Period for any Loan to be made, continued as or converted into a LIBOR Loan, the greater of
(i) three quarters of one percent (0.75%) per annum or (ii) the rate of interest per annum determined by Bank to be the per annum rate of interest at which deposits in United States Dollars are offered to Bank in the London interbank
market (rounded upward, if necessary, to the nearest 1/100th of one percent (0.01%)) in which Bank customarily participates at 11:00 a.m. (local time in such interbank market) two (2) Business Days prior to the first day of such Interest
Period for a period approximately equal to such Interest Period and in an amount approximately equal to the amount of such Loan. 
 “LIBOR Rate Margin” is (i) three and three quarters percent (3.75%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended
quarter was less than 1.35 to 1.00, (ii) three and one half percent (3.50%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than or equal to 1.35 to 1.00 but less
than or equal to 1.50 to 1.00 or (iii) three and one quarter percent (3.25%) if Borrower’s and its Subsidiaries’ consolidated Liquidity Ratio for the most recently ended quarter was greater than 1.50 to 1.00. 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance
of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property. 

“Liquidity” is the sum of cash and Cash Equivalents plus Accounts receivable, minus, at all times
beginning on March 31, 2013, the outstanding principal amount of the Convertible Notes, if any. 

“Liquidity Ratio” is a ratio of Liquidity to all Indebtedness owing from Borrower to Bank. 

“Loan” means either an Advance or the Term Loan. 

“Loan Documents” are, collectively, this Agreement, the Perfection Certificates, the Japanese Secured
Guaranty Documents, the Japanese Share Pledge Documents, the UK Secured Guaranty Documents, the UK Share Pledge Documents, the US Secured Guaranty Documents, the Fee Letter, any Bank Services Agreement, any subordination agreement between Bank and a
creditor of a Credit Party, any note, or notes or guaranties executed by Borrower or any Guarantor in connection with the Loans, and any other present or future agreement between Borrower and any Guarantor and/or for the benefit of Bank, all as
amended, restated, or otherwise modified. 

  
 34 

 “Maker Communications” means Maker Communications, Inc., a
wholly owned Subsidiary of Borrower organized under the laws of the State of Delaware. 
 “Material
Adverse Change” is (a) a material impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition
(financial or otherwise) of Borrower and its Subsidiaries, taken as a whole; or (c) a material impairment of the prospect of repayment of any portion of the Obligations. 

“Material Subsidiary” means a Subsidiary of a Credit Party that meets one of the following tests:
(i) such Subsidiary generates revenue greater than one percent (1.00%) of total consolidated revenue of the Credit Parties and their Subsidiaries, (ii) such Subsidiary has assets greater than or equal to five percent (5.00%) of
total consolidated assets of the Credit Parties and their Subsidiaries or (iii) such Subsidiary has assets with a value in excess of Three Million Dollars ($3,000,000). 

“Material Domestic Subsidiary” means a Domestic Subsidiary of a Credit Party that is a Material
Subsidiary. 
 “Merger Agreement” means that certain Agreement and Plan of Merger, dated as of
January 5, 2012 by and among Borrower, Mindspeed UK, Platinum Acquisition Corporation, Picochip, Picochip UK and the Stockholder Representative (as defined therein). 

“Mindspeed Development” means Mindspeed Development Sub, Inc., a wholly owned Subsidiary of Borrower
organized under the laws of the State of Delaware. 
 “Mindspeed Japan’ means Mindspeed
Technologies (K.K.), a wholly owned Subsidiary of Borrower organized under the laws of Japan. 

“Mindspeed Technologies” means Mindspeed Technologies LLC, a wholly owned Subsidiary of Borrower
organized under the laws of the State of Delaware. 
 “Mindspeed UK” means Platinum Acquisition
(UK) Limited, a wholly owned Subsidiary of Borrower organized under the laws of England and Wales. 

“Net Income” means, as calculated on a consolidated basis for Borrower and its Subsidiaries for any
period as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting period. 

“Notice of Borrowing” means either an Effective Date Notice of Borrowing or a Subsequent Notice of
Borrowing, as applicable. 
 “Notice of Conversion/Continuation” means a notice given by
Borrower to Bank in accordance with Section 3.5, substantially in the form of Exhibit C, with appropriate insertions. 
 “Obligations” are Borrower’s obligation to pay when due any debts, principal, interest, Bank Expenses, and other amounts Borrower owes Bank now or later, whether under this
Agreement, the other Loan Documents, or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and the performance of Borrower’s
duties under the Loan Documents. 
 “Operating Documents” are, for any Person, such
Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in
current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the
foregoing with all current amendments or modifications thereto. 

  
 35 

 “Patents” means all patents, patent applications and like
protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 
 “Payment/Advance Form” is that certain form attached hereto as Exhibit B. 
 “Perfection Certificate” is defined in Section 5.1. 
 “Permitted Acquisitions” are purchases or other acquisitions by Borrower or any of its Subsidiaries of (i) the capital stock in a Person that, upon the consummation thereof, will be
a Subsidiary (including as a result of a merger or consolidation) or (ii) all or substantially all of the assets of, or assets constituting one or more business units of, any Person; provided that, with respect to each such purchase or other
acquisition: 
 (i)         the newly-created or acquired Subsidiary
shall be in the same, similar, or a related line of business as that conducted by Borrower or its Subsidiaries on the date hereof; 
 (ii)         all transactions related to such purchase or acquisition shall be consummated in all material respects in accordance with all Requirements of Law;

 (iii)         Borrower shall give Bank at least 10 Business Days
prior written notice of any such purchase or acquisition; and 
 (iv)
        (x) immediately before and immediately after giving effect to any such purchase or other acquisition, no Event of Default shall have occurred and be continuing and (y) immediately after giving
effect to such purchase or other acquisition, Borrower and its Subsidiaries can demonstrate compliance on a Pro Forma Basis with the covenants set forth in Section 6.7 hereof, both before and for the twelve (12) months after the closing of
such purchase or acquisition. 
 “Permitted Indebtedness” is: 

(a)         Borrower’s Indebtedness to Bank under this Agreement and the
other Loan Documents; 
 (b)         Indebtedness existing on the
Effective Date and shown on the Perfection Certificate; 
 (c)
        Subordinated Debt; 
 (d)
        unsecured Indebtedness pursuant to the Convertible Notes; 

(e)         guaranties of Permitted Indebtedness; 

(f)         (1) 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), (2) 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 (3) 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 clauses (h) and (i) of the definition of Permitted Investments; 

(g)         unsecured Indebtedness to trade creditors incurred in the ordinary
course of business; 
 (h)         Indebtedness incurred as a result of
endorsing negotiable instruments received in the ordinary course of business; 
 (i)
        Indebtedness consisting of reimbursement obligations under letters of credit issued by Bank or unsecured guarantees required to support rental payments on any real estate lease; 

  
 36 

 (j)         Indebtedness consisting
of interest rate, currency, or commodity swap agreements, interest rate cap or collar agreements or arrangements designated to protect a Person against fluctuations in interest rates, currency exchange rates, or commodity prices; 

(k)         Indebtedness secured by Liens permitted under clause (c) of the
definition of “Permitted Liens” hereunder in a principal amount not exceeding Seven Million Five Hundred Thousand Dollars ($7,500,000) in the aggregate; 

(l)         Indebtedness of a Credit Party to another Credit Party; 

(m)         Indebtedness owing by or among Borrower and its Subsidiaries that
constitute Permitted Investments; 
 (n)         to the extent
constituting Indebtedness, obligations secured by a Lien described in clause (l) of the definition of Permitted Liens; 
 (o)         other Indebtedness not otherwise permitted by Section 7.4 not exceeding Five Hundred Thousand Dollars ($500,000) in the aggregate outstanding at
any time; and 
 (p)         extensions, refinancings, modifications,
amendments and restatements of any items of Permitted Indebtedness, 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 (including, without limitation, Subsidiaries) existing
on the Effective Date and shown on the Perfection Certificate and; 
 (b)
        (i) Investments consisting of Cash Equivalents, and (ii) any 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 in writing by Bank; 
 (c)
        Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower; 

(d)         Investments consisting of deposit accounts in which Bank has a
perfected security interest; 
 (e)         Investments accepted in
connection with Transfers permitted by Section 7.1 and transactions permitted by Section 7.3; 
 (f)
        Investments by Borrower in a Guarantor or by a Guarantor in another Guarantor or Borrower; 
 (g)         Investments by Subsidiaries who are not Guarantors in other Subsidiaries or in a Credit Party; 

(h)         Investments by Credit Parties in Subsidiaries that are not
Guarantors in an amount not to exceed Twenty Five Million Dollars ($25,000,000) in the aggregate in any fiscal year; 
 (i)         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, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors;

  
 37 

 (j)         Investments (including
debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

 (k)         Investments consisting of notes receivable of, or
prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (k) shall not apply to Investments of Borrower in any Subsidiary; 

(l)         joint ventures or strategic alliances in the ordinary course of
Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support, provided that any cash investments by Borrower do not exceed Two Hundred Fifty Thousand Dollars
($250,000) in the aggregate in any fiscal year; and 
 (m)
        other Investments not otherwise permitted by Section 7.7 not exceeding Five Hundred Thousand Dollars ($500,000) in the aggregate in any fiscal year. 

“Permitted Liens” are: 

(a)         Liens existing on the Effective Date and shown on the Perfection
Certificate or arising under this Agreement and the other Loan Documents; 
 (b)
        Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate
reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder; 

(c)         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 (x) the Lien is confined to such property (including accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof), and the principal amount of
Indebtedness secured thereby does not exceed Seven Million Five Hundred Thousand Dollars ($7,500,000) in the aggregate; 
 (d)         Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such
Liens attach only to Inventory, and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the
property subject thereto; 
 (e)         Liens to secure payment of
workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA); 

(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 secured thereby may
not increase; 
 (g)         leases or subleases of real property
granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than
Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit
granting Bank a security interest therein; 

  
 38 

 (h)         non-exclusive license
of Intellectual Property granted to third parties in the ordinary course of business, and licenses of Intellectual Property that could not result in a legal transfer of title of the licensed property that may be exclusive in respects other than
territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; 
 (i)         Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections 8.4 and 8.7; and

 (j)         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; 
 (k)
        easements, rights-of-way, restrictions and other similar encumbrances affecting real property which do not 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 which do not represent or secure an obligation for borrowed money; 
 (l)         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; 
 (m)         Liens securing Subordinated Debt; 

(n)         Liens on insurance proceeds in favor of insurance companies granted
solely to secure financed insurance premiums; and 
 (o)         Liens
in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at such institutions, provided that Bank has a perfected security interest in the amounts held in such deposit and/or
securities accounts to the extent that such accounts constitute Collateral. 
 “Person” is any
individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or
government agency. 
 “PicoChip” means, Picochip, LLC, a Delaware limited liability company
and, after giving effect to the Acquisition, a wholly owned Subsidiary of Mindspeed UK. 
 “PicoChip
UK’ means Picochip Limited, a wholly owned Subsidiary of Picochip organized under the laws of England and Wales. 
 “Postclosing Letter” means that certain Postclosing Letter executed by Borrower and Bank dated as of the Effective Date, as amended from time to time. 

“Prepayment Fee” means (i) prior to the first anniversary of the Effective Date, an amount equal to
one percent (1.00%) of the principal amount of Term Loans voluntarily prepaid in excess of the Applicable Term Loan Principal Payment Amount, and (ii) on or after the first anniversary of the Effective Date, zero. 

“Pro Forma Basis”: with respect to any calculation or determination for the Borrower for any period, in
making such calculation or determination on the specified date of determination (the “Determination Date”): 
 (a)         pro forma effect will be given to any Indebtedness incurred by the Borrower or any of its Subsidiaries (including by assumption of then outstanding
Indebtedness or by a Person becoming a Subsidiary (“Incurred”) after the beginning of the applicable period and on or before the Determination Date to the extent the Indebtedness is outstanding or is to be Incurred on the
Determination Date, as if such Indebtedness had been Incurred on the first day of such period; 

  
 39 

 (b)         pro forma calculations
of interest on Indebtedness bearing a floating interest rate will be made as if the rate in effect on the Determination Date (taking into account any interest rate swap agreement, interest rate cap or collar agreement or other arrangement designed
to protect a Person against fluctuations in interest rates, applicable to the Indebtedness) had been the applicable rate for the entire period; 
 (c)         Interest Expense and scheduled principal payments related to any Indebtedness no longer outstanding or to be repaid or redeemed on the Determination
Date, except for Interest Expense accrued during the period under a revolving credit to the extent of the commitment thereunder (or under any successor revolving credit) in effect on the Determination Date, will be excluded as if such Indebtedness
was no longer outstanding or was repaid or redeemed on the first day of such period; 

(d)         pro forma effect will be given to: (A) the acquisition or
disposition of companies, divisions or lines of businesses by the Borrower and its Subsidiaries, including any acquisition or disposition of a company, division or line of business since the beginning of the reference period by a Person that became
a Subsidiary after the beginning of the applicable period; and (B) the discontinuation of any discontinued operations but, in the case of Interest Expense and scheduled principal payments of Indebtedness, only to the extent that the obligations
giving rise to such Interest Expense and scheduled principal payments of Indebtedness will not be obligations of the Borrower or any of its Subsidiaries following the Determination Date; in each case of clauses (A) and (B), that have occurred
since the beginning of the applicable period and before the Determination Date as if such events had occurred, and, in the case of any disposition, the proceeds thereof applied, on the first day of such period. To the extent that pro forma effect is
to be given to an acquisition or disposition of a company, division or line of business, the pro forma calculation will be calculated in good faith by a responsible financial or accounting officer of the Borrower (x) in accordance with
Regulation S-X under the Securities Act of 1933, as amended, based upon the most recent four full fiscal quarters for which the relevant financial information is available or (y) in such other manner reasonably acceptable to Bank, as if any
such acquisition or disposition occurred on the first day of such period and by giving effect to reasonably expected savings in operating expenses relating to cost savings and synergies as if such cost savings and synergies had occurred on the first
day of such period. 
 “Quarterly Financial Statements” is defined in Section 6.2(c).

 “Registered Organization” is any “registered organization” as defined in the Code
with such additions to such term as may hereafter be made. 
 “Requirement of Law” is as to any
Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon
such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer
and Controller of Borrower.  
 “Restricted License” is any material license of
Intellectual Property or other material agreement with respect to Intellectual Property and with respect to which Borrower is the licensee, the termination of which could reasonably be expected to result in a Material Adverse Change. 

“Revolving Line” is an Advance or Advances in an amount equal to Twenty Million Dollars ($20,000,000),
as may be reduced from time to time pursuant to Section 2.1.1(b). 
 “Revolving Line Maturity
Date” is February 6, 2017. 
 “SEC” shall mean the Securities and Exchange Commission,
any successor thereto, and any analogous Governmental Authority. 
 “Securities Account” is any
“securities account” as defined in the Code with such additions to such term as may hereafter be made. 

  
 40 

 “Specified Merger Agreement Representations” means the
representations and warranties made by Picochip and its subsidiaries in the Merger Agreement to the extent Borrower or Merger Sub (as defined in the Merger Agreement) have the right to not consummate the Acquisition or to terminate their obligations
under the Merger Agreement as a result of a breach of such representations and warranties in the Merger Agreement 
 “Specified Representations” means the representations contained in Sections 5.1(a), 5.1(c), 5.2(a), 5.6, 5.7(a) and 5.10 of this Agreement. 

“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or
hereafter indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 

“Subsequent Notice of Borrowing” means a notice given by Borrower to Bank in accordance with
Section 3.2, substantially in the form of Exhibit B-2, with appropriate insertions. 

“Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity
of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors
or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless the context
otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of a Credit Party 
 “Term Loan” is a loan made by Bank pursuant to the terms of Section 2.1.2 hereof. 
 “Term Loan Maturity Date” is February 6, 2017. 

“Term Loan Payment” is defined in Section 2.1.2(b). 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks. 

“Transfer” is defined in Section 7.1. 

“UK Secured Guaranty Documents” means those certain (i) composite guarantee and debenture;
(ii) board resolutions for PicoChip UK and Mindspeed UK in respect of the guarantee and debenture; (iii) shareholder resolutions in respect of the guarantee and debenture from each of PicoChip UK and Mindspeed UK, and (iv) any other
documents reasonably required by Bank to be executed by a Credit Party in connection therewith. 
 “UK
Share Pledge Documents” means those certain Charge Over Shares, board minutes, shareholder resolutions and stock transfer form, and any other documents reasonably requested by Bank with respect to (i) the pledge by PicoChip to Bank of
one hundred percent (100%) of the issued and outstanding equity securities of PicoChip UK and (ii) the pledge by Mindspeed to Bank of one hundred percent (100%) of the issued and outstanding equity securities of Mindspeed UK

 “US Secured Guaranty Documents’ means those certain (i) Unconditional Guaranty and
(ii) Security Agreement executed by each Domestic Guarantor in favor of Bank and any other documents reasonably required by Bank to be executed by a Domestic Guarantor in connection therewith. 

[Signature page follows.] 

  
 41 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed as of the Effective Date. 
 BORROWER: 
 MINDSPEED TECHNOLOGIES, INC. 

	
	
	 By: /s/ Stephen N. Ananias

	 Name: Stephen N. Ananias

	Title: Senior Vice President and Chief Financial Officer

 BANK: 
 SILICON
VALLEY BANK 

	
	
	 By: /s/ Jack Garza

	 Name: Jack Garza

	 Title: Relationship Manager

 EXHIBIT A – COLLATERAL DESCRIPTION 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property: 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of
money, leases, license agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit
accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired,
wherever located; and 
 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, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include (a) more than 65% of the presently existing and
hereafter arising issued and outstanding shares of capital stock owned by Borrower of any Foreign Subsidiary that is not a Guarantor, which shares entitle the holder thereof to vote for directors or any other matter, (b) any property (including
accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof), the purchase or acquisition of which was financed by a third party that has a Permitted Lien on such property (including
accessions, additions, parts, replacements, fixtures, improvements and attachments thereto, and the proceeds thereof) and was not financed by the Bank, to the extent the grant of a security interest therein is prohibited by or would constitute a
default under the third party’s loan, lease or other financing documents, provided that upon the termination or lapsing of any such prohibition or payment in full of such third party, such property will at all times constitute Collateral,
(c) any property to the extent that such grant of a security interest is prohibited by any Requirements of Law of a Governmental Authority except to the extent that such Requirement of Law or the term in such contract, license, agreement,
instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination is ineffective under applicable law, or (d) any Intellectual Property; provided, however, the Collateral shall
include all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such
Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s
security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property. 
 Pursuant to the terms of a certain negative pledge arrangement with Bank, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s prior written consent. 

 EXHIBIT B-1 

EFFECTIVE DATE NOTICE OF BORROWING  
 MINDSPEED TECHNOLOGIES, INC. 
 Date: February __, 2012 

 

	TO:	 SILICON VALLEY BANK 

3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attention: Corporate Services Department

  

	RE:	Loan and Security Agreement dated as of February __, 2012 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”), by
and between MINDSPEED TECHNOLOGIES, INC. (“Borrower”) and Silicon Valley Bank (the “Bank”) 

 Ladies
and Gentlemen: 
 The undersigned refers to the Loan Agreement, the terms defined therein and used herein as so defined, and
hereby gives you notice irrevocably, pursuant to Section 3.4(a) of the Loan Agreement, of the borrowing of Loans. 

1.         The Funding Date, which shall be a Business Day, of the requested borrowing is
                    . 
 2.         The aggregate amount of the requested borrowing is
$                    , which consists of
$                     of Term Loans and
$                     of Advances. 
 3.         The requested Loans shall consist of
$                     of Base Rate Loans and
$                     of LIBOR Loans. 
 4.         The duration of the Interest Period for the LIBOR Loans included in the requested Loans shall be
                     months. 
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loans before and after giving effect thereto, and to the
application of the proceeds therefrom, as applicable: 
 (a)         the
Specified Merger Agreement Representations and the Specified Representations contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such materiality qualifier shall not
be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true,
accurate and complete in all material respects as of such date; 

(b)         no Event of Default (other than an Event of Default described in
Sections 8.3 or 8.8) has occurred and is continuing, or would result from such proposed Loan; and 

(c)         the requested Loans will not cause the aggregate principal amount of
the outstanding Advances to exceed, as of the designated Funding Date, (i) the lesser of the Revolving Line or the Borrowing Base minus (ii) the aggregate outstanding Advances. 

  

							
	BORROWER	 		 	 MINDSPEED TECHNOLOGIES, INC.

				
		 		 	By:	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 For internal Bank use only 
  

							
	 LIBOR Pricing Date

 
	 	LIBOR	 	LIBOR Variance	 	Maturity Date
	 	 	 	 	 ____%

 
	 	 

 EXHIBIT B-2 

FORM OF SUBSEQUENT NOTICE OF BORROWING  
 MINDSPEED TECHNOLOGIES, INC. 
 Date:
                     
  

	TO:	 SILICON VALLEY BANK 

3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attention: Corporate Services Department

  

	RE:	Loan and Security Agreement dated as of February __, 2012 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”), by
and between MINDSPEED TECHNOLOGIES, INC. (“Borrower”) and Silicon Valley Bank (the “Bank”) 

 Ladies
and Gentlemen: 
 The undersigned refers to the Loan Agreement, the terms defined therein and used herein as so defined, and
hereby gives you notice irrevocably, pursuant to Section 3.5(a) of the Loan Agreement, of the borrowing of a Loan. 

1.         The Funding Date, which shall be a Business Day, of the requested borrowing is
                    . 
 2.         The aggregate amount of the requested borrowing is
$                    . 
 3.         The requested Loan shall consist of
$                     of Base Rate Loans and
$                     of LIBOR Loans. 
 4.         The duration of the Interest Period for the LIBOR Loans included in the requested Loan shall be
                     months. 
 The undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed Loan before and after giving effect thereto, and to the application
of the proceeds therefrom, as applicable: 
 (a)         all
representations and warranties of Borrower contained in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in
all material respects as of such date; 
 (b)         no Event of
Default has occurred and is continuing, or would result from such proposed Loan; and 

(c)         the requested Loan will not cause the aggregate principal amount of
the outstanding Advances to exceed, as of the designated Funding Date, (i) the lesser of the Revolving Line or the Borrowing Base minus (ii) the aggregate outstanding Advances. 

							
	BORROWER	 		 	 MINDSPEED TECHNOLOGIES, INC.

				
		 		 	By: 	 	 
		 		 	Name:	 	 
		 		 	Title:	 	 

 For internal Bank use only 
  

							
	 LIBOR Pricing Date

 
	 	LIBOR	 	LIBOR Variance	 	Maturity Date
	 	 	 	 	 ____%

 
	 	 

 EXHIBIT C 

FORM OF NOTICE OF CONVERSION/CONTINUATION 
 MINDSPEED TECHNOLOGIES, INC., on behalf of all Borrowers 

Date:                 
     
  

	TO:	 SILICON VALLEY BANK 

3003 Tasman Drive 
 Santa Clara, CA 95054 
 Attention: 

 

	RE:	 Loan and Security Agreement dated as of February __, 2012 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”), by and between MINDSPEED TECHNOLOGIES, INC. (“Borrower”) and Silicon Valley Bank (the “Bank”) 

 Ladies and Gentlemen: 
 The undersigned refers to the Loan
Agreement, the terms defined therein being used herein as therein defined, and hereby gives you notice irrevocably, pursuant to Section 3.6 of the Loan Agreement, of the [conversion] [continuation] of the Loans specified herein, that:

 1.         The date of the [conversion] [continuation] is
                    , 20        . 

2.         The aggregate amount of the proposed Loans to be [converted] is
$                     or [continued] is
$                    . 
 3.         The Loans are to be [converted into] [continued as] [LIBOR] [Base Rate] Loans. 

4.         The duration of the Interest Period for the LIBOR Loans included in the
[conversion] [continuation] shall be            months. 
 The undersigned, on behalf of Borrower, hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed [conversion] [continuation], before and
after giving effect thereto and to the application of the proceeds therefrom: 
 (a)
        all representations and warranties of Borrower stated in the Loan Agreement are true, accurate and complete in all material respects as of the date hereof; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date
shall be true, accurate and complete in all material respects as of such date; and 
 (b)
        no Event of Default has occurred and is continuing, or would result from such proposed [conversion] [continuation]. 
 [Signature page follows.] 

							
	BORROWER	 		 	MINDSPEED TECHNOLOGIES, INC.
				
		 		 	By:	 	 
		 		 	 Name:
	 	 
		 		 	Title:	 	 

     For internal Bank use only 

 

							
	 LIBOR Pricing Date

 
	  	 LIBOR

 
	  	
LIBOR Variance
  
	  	
Maturity Date

 

	 	  	 	  	 ___%

 
	  	 

 EXHIBIT D 

BORROWING BASE CERTIFICATE 
  

 
 Borrower: MINDSPEED TECHNOLOGIES, INC.

 Lender: Silicon Valley Bank 

Commitment Amount:             $20,000,000 

 

							
	 ACCOUNTS RECEIVABLE
	  			
	 1.
	  	Accounts Receivable (invoiced) Book Value as of
                        	  	 	$______________        	  
	 2.
	  	Additions (please explain on next page)	  	 	$______________        	  
	 3.
	  	Less: Intercompany / Employee / Non-Trade Accounts	  	 	$______________        	  
	 4.
	  	NET TRADE ACCOUNTS RECEIVABLE	  	 	$______________        	  
		
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  			
	 5.
	  	90 Days Past Invoice Date	  	 	$______________        	  
	 6.
	  	Credit Balances over 90 Days	  	 	$______________        	  
	 7.
	  	Balance of 50% over 90 Day Accounts (Cross-Age or Current Affected)	  	 	$______________        	  
	 8.
	  	Foreign Account Debtor Accounts	  	 	$______________        	  
	 9.
	  	Foreign Invoiced and/or Collected Accounts	  	 	$______________        	  
	 10.
	  	Contra/Customer Deposit Accounts	  	 	$______________        	  
	 11.
	  	U.S. Governmental Accounts	  	 	$______________        	  
	 12.
	  	Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts	  	 	$______________        	  
	 13.
	  	Accounts with Memo or Pre-Billings	  	 	$______________        	  
	 14.
	  	Contract Accounts; Accounts with Progress / Milestone Billings	  	 	$______________        	  
	 15.
	  	Accounts for Retainage Billings	  	 	$______________        	  
	 16.
	  	Trust / Bonded Accounts	  	 	$______________        	  
	 17.
	  	Bill and Hold Accounts	  	 	$______________        	  
	 18.
	  	Unbilled Accounts	  	 	$______________        	  
	 19.
	  	Non-Trade Accounts (if not already deducted above)	  	 	$______________        	  
	 20.
	  	Accounts with Extended Term Invoices (Net 90+)	  	 	$______________        	  
	 21.
	  	Chargeback Accounts / Debit Memos	  	 	$______________        	  
	 22.
	  	Product Returns/Exchanges	  	 	$______________        	  
	 23.
	  	Disputed Accounts; Insolvent Account Debtor Accounts	  	 	$______________        	  
	 24.
	  	Deferred Revenue, if applicable/Other (please explain on next page)	  	 	$______________        	  
	 25.
	  	Concentration Limits	  	 	$______________        	  
	 26.
	  	 TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  	 	$______________        	  
			
	 27.
	  	Eligible Accounts (#4 minus #26)	  	 	$______________        	  
	 28.
	  	ELIGIBLE AMOUNT OF ACCOUNTS (85% of #27)	  	 	$______________        	  
		
	 DISCOUNTED DISTRIBUTOR ACCOUNTS
	  			
	 29.
	  	Discounted Distributor Accounts not subject to the exclusions above (other than with respect to items #10 and #24) value as of
                    	  	 	$______________        	  
	 30.
	  	 ELIGIBLE AMOUNT OF DISCOUNTED DISTRIBUTOR ACCOUNTS
 (65% of #29)
	  	 	$______________        	  
		
	 ELIGIBLE JAPANESE ACCOUNTS
	  			
	 31.
	  	Eligible Japanese Accounts not subject to the exclusions above (other than with respect to items #8 and #9 value as of as of
                    )	  	 	$______________        	  
	 32.
	  	 ELIGIBLE AMOUNT OF ELIGIBLE JAPANESE ACCOUNTS
 (lesser of (i) $5,000,000 or (iii) 85% of #31)
	  	 	$______________        	  
		
	 BALANCES
	  			
	 33.
	  	Maximum Loan Amount	  	 	$ 20,000,000	  
	 34.
	  	Total Funds Available Lesser of #33 or (#28 plus #30 plus #32)	  	 	$______________        	  
	 35.
	  	Present balance owing on Line of Credit	  	 	$______________        	  
	 36.
	  	RESERVE POSITION (#34 minus #35)	  	 	$______________        	  

 Explanatory comments from previous page: 

 
  
  

 
  

 
  

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

  

									
		 		 		 	BANK USE ONLY	 	 
	COMMENTS:	 		 		 	  Received by:
                                      	 	 
		 		 		 	 AUTHORIZED SIGNER
	 	 
				 	 
		 		 		 	  Date:
                                         
           	 	 
	By:
                                         
                               	 		 	  Verified:
                                         
     	 	 
	 Authorized Signer
	 		 	 AUTHORIZED SIGNER
	 	 
			 	 
	Date:
                                         
                           	 		 	  Date:
                                         
           	 	 
		 		 		 	   Compliance Status:
        Yes       No
  
	 	 

 EXHIBIT E 

BORROWING RESOLUTIONS 
 [See attached] 
 [Borrower to provide form of Secretary’s Certificate and
Resolutions] 

 EXHIBIT F 
 COMPLIANCE CERTIFICATE 
  

									
	 TO:
	  	 SILICON VALLEY BANK
	  		  	Date:  	  	 
	 FROM:
	  	MINDSPEED TECHNOLOGIES, INC.	  		  		  	

  
   The undersigned
authorized officer of MINDSPEED TECHNOLOGIES, INC. (“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): (1) Borrower is in complete
compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events of
Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits
of which Borrower has not previously provided written notification to Bank. 
   Attached are the
required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned
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.
Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance
status by circling Yes/No under “Complies” column. 
  

					
	Reporting Covenant	 	Required	  	Complies
	 Quarterly financial statements with Compliance Certificate
	 	 Quarterly within 45 days
	  	Yes   No
	 Annual financial statement (CPA Audited)
	 	 FYE within 120 days
	  	Yes   No
	 10-Q, 10-K and 8-K
	 	
Within 5 days after filing with SEC
	  	Yes   No
	 Borrowing Base Certificate A/R & A/P Agings and Deferred Revenue Schedule
	 	 Monthly within 30 days
	  	Yes   No
	 Annual Board Approved Projections
	 	 FYE within 45 days
	  	Yes   No

  

									
	Financial Covenant	  	Required	  	Actual	  	  	  	Complies
	 Maintain on a Quarterly Basis (unless
otherwise noted):
  
	  	 	  	 	  	 	  	 
	 Minimum Liquidity Ratio
	  	1.25:1.0	  	_____:1.0	  	 	  	Yes   No
	 Minimum Adjusted EBITDA
	  	See Schedule	  	$_______	  	 	  	Yes   No
	 Minimum Fixed Charge Coverage Ratio
	  	*	  	$_______	  	 	  	Yes   No
	 Minimum Cash at Bank (at all times)
	  	$15,000,000	  	$_______	  	 	  	Yes   No

 *not less than (i) 1.10 to 1.00 for Borrower’s first, second and third fiscal quarters of
2014 and (ii) 1.25 to 1.00 for each of Borrower’s fiscal quarters thereafter. 

					
	            Performance
Pricing	  	Applies
	 	 	 	  	 
	 Liquidity Ratio < 1.35 to 1.00
	 	 LIBOR + 3.75%, Base Rate + 1.75%,
Unused Fee 0.50%
  
	  	Yes    
No
	 Liquidity Ratio 3 1.35 to 1.00
but £ 1.50 to 1.00
	 	 LIBOR + 3.50%, Base Rate + 1.50%,
Unused Fee 0.375%
  
	  	Yes    
No
	 Liquidity Ratio > 1.50 to 1.00
	 	 LIBOR + 3.25%, Base Rate + 1.25%,
Unused Fee 0.25%
  
	  	Yes    
No

 The following financial covenant analyses and information set forth in
Schedule 1 attached hereto are true and accurate as of the date of this Certificate. 
 The
following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”) 
  

	
	 
	
	 
	
	 

  

							
		 	MINDSPEED TECHNOLOGIES, INC.	  	BANK USE ONLY
				
		 		 		  	 Received by:
                                         
           

		 	 By:
                                         
                                   
	 		  	 AUTHORIZED SIGNER

		 	 Name:
                                         
                              
	 		  	 Date:
                                         
                       

		 	 Title:
                                         
                                
	 		  	
		 		 		  	 Verified:
                                         
                 

		 		 		  	 AUTHORIZED SIGNER

		 		 		  	 Date:
                                         
                       

				
		 		 		  	 Compliance Status:         Yes     No

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 
 In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 
 Dated:
                                         
        
 I.         Liquidity Ratio
(Section 6.7(a)) 
 Required:             1.25:1.00 

Actual: 
  

							
	 A.
	  	Aggregate value of the unrestricted cash and cash equivalents of Borrower and Guarantors	  	 	$            	  
			
	 B.
	  	Aggregate value of the net billed accounts receivable of Borrower and Guarantors	  	 	$            	  
			
	 C.
	  	At all times beginning on March 31, 2013, the outstanding principal amount of the Convertible Notes	  	 	$            	  
			
	 D.
	  	Liquidity (the sum of lines A through C)	  	 	$            	  
			
	 E.
	  	Aggregate value of all Indebtedness owing from Borrower to Bank	  	 	$            	  
			
	 F.
	  	Liquidity Ratio (line D divided by line E)	  	 	_______	  

 Is line F equal to or greater than 1.25:1:00? 

 

			
	
                             No,
not in compliance
	  	             Yes, in compliance

 II.         Adjusted EBITDA (Section 6.7(b)) 

Required: 
  

					
		  	 Measuring
Period
  
	 	
Adjusted EBITDA

 

		  	
Borrower’s second fiscal quarter of 2012
	 	($3,000,000)
		  	
Borrower’s third fiscal quarter of 2012
	 	$500,000
		  	
Borrower’s fourth fiscal quarter of 2012
	 	$3,000,000
		  	
Borrower’s first fiscal quarter of 2013
	 	$5,000,000
		  	
Borrower’s second fiscal quarter of 2013
	 	$4,500,000
		  	
Borrower’s third fiscal quarter of 2013
	 	$7,000,000
		  	
Borrower’s fourth fiscal quarter of 2013
	 	$8,000,000

 Actual: 
  

							
	 A.
	  	Net Income	  	 	$            	  
			
	 B.
	  	Interest Expense	  	 	$            	  
			
	 C.
	  	to the extent deducted in the calculation of Net Income, Depreciation expense	  	 	$            	  
			
	 D.
	  	to the extent deducted in the calculation of Net Income, Amortization expense	  	 	$            	  
			
	 E
	  	Income Tax Expense	  	 	$            	  
			
	 F.
	  	Other non-cash charges including but not limited to stock based compensation	  	 	$            	  
			
	 G.
	  	non-recurring charges incurred through the third fiscal quarter of 2013 (which shall include transaction fees related to the Acquisition, sign on bonuses, transitional employee
expenses, redundant contractual commitments and severance payment), which non-recurring charges shall be capped at Five Million Five Hundred Thousand Dollars ($5,500,000) in the aggregate	  	 	$            	  
			
	 H.
	  	non-recurring charges incurred in connection with any Permitted Acquisition approved by Bank in its sole discretion	  	 	$            	  
			
	 I.
	  	unusual, non-recurring or other extraordinary charges or expenses approved by Bank in its sole discretion	  	 	$            	  
			
	 J.
	  	pro forma cost savings and synergies approved by Bank in its sole discretion	  	 	$            	  
			
	 K
	  	to the extent covered by insurance proceeds, losses in connection with casualty events approved by Bank in its sole discretion	  	 	$            	  
			
	 L.
	  	Adjusted EBITDA (Line A plus Line B plus Line C plus Line D plus Line E plus Line F plus Line G plus line H plus Line I plus Line J plus Line K)	  	 	$            	  

 Is line L greater than or the equal to the amount required above? 

 

			
	
                             No,
not in compliance
	  	             Yes, in compliance

 III.         Fixed Charge Coverage Ratio (Section 6.7(c))

 Required:           not less than (i) 1.10 to 1.00 for Borrower’s
first, second and third fiscal quarters of 2014 and (ii) 1.25 to 1.00 for each of Borrower’s fiscal quarters thereafter. 
 Actual:

  

							
	 A.
	  	Adjusted EBITDA (value of line II.L above)	  	 	$            	  
			
	 B.
	  	Cash Taxes Paid	  	 	$            	  
			
	 C.
	  	IP Expenditures	  	 	$            	  
			
	 D.
	  	Capitalized Expenditures	  	 	$            	  
			
	 E.
	  	Interest expense	  	 	$            	  
			
	 F.
	  	Scheduled Principal Payments on all Indebtedness	  	 	$            	  
			
	 G.
	  	Fixed Charge Coverage Ratio: (Line A minus lines B, C and D all divided by Line E plus line F)	  	 	___:1.00	  

 Is line G equal to or greater than the amount required above? 

 

			
	
                             No,
not in compliance
	  	             Yes, in complianceAcquisition and Stock Purchase Agreement

 Exhibit 10.1 
 ACQUISITION AND STOCK PURCHASE AGREEMENT 
 Table of Contents

  

									
	 RECITALS
	  	 	1	  
	 1.
	 	Acquisition and Sale of Company Stock	  	 	1	  
		 	1.1	 	Purchase and Sale of Company Stock	  	 	1	  
		 	1.2	 	Purchase Price for Company Stock, Options and Warrants	  	 	1	  
		 	1.3	 	The Closing	  	 	2	  
		 	1.4	 	Options and Warrants	  	 	2	  
	 2.
	 	Representations and Warranties of the Company and the Shareholders	  	 	2	  
		 	2.1	 	Organization and Authority to Do Business. Good Standing	  	 	3	  
		 	2.2	 	Authority and Enforceability	  	 	3	  
		 	2.3	 	Capitalization	  	 	3	  
		 	2.4	 	No Subsidiaries	  	 	4	  
		 	2.5	 	Consents and Approvals; No Violations	  	 	4	  
		 	2.6	 	Brokers’ Fees	  	 	4	  
		 	2.7	 	Financial Statements	  	 	4	  
		 	2.8	 	No Adverse Changes	  	 	5	  
		 	2.9	 	Absence of Undisclosed Liabilities	  	 	5	  
		 	2.10	 	Compliance	  	 	5	  
		 	2.11	 	Environmental Laws and Regulations	  	 	6	  
		 	2.12	 	Taxes	  	 	6	  
		 	2.13	 	Real Property	  	 	6	  
		 	2.14	 	Intellectual Property Rights	  	 	7	  
		 	2.15	 	Contracts	  	 	7	  
		 	2.16	 	Insurance	  	 	8	  
		 	2.17	 	Litigation	  	 	8	  
		 	2.18	 	Employees	  	 	8	  
		 	2.19	 	Employee Benefits	  	 	10	  
		 	2.20	 	Guarantees	  	 	10	  
		 	2.21	 	Related-Party Transactions	  	 	10	  
		 	2.23	 	Inventory	  	 	11	  
		 	2.24	 	Receivables	  	 	11	  
		 	2.25	 	Assets	  	 	11	  
		 	2.26	 	Disclosure	  	 	11	  
	 3.    
	 	Representations and Warranties of each Shareholder	  	 	12	  
		 	3.1	 	Authority and Enforceability	  	 	12	  
		 	3.2	 	No Violations	  	 	12	  
		 	3.3	 	Company Stock	  	 	12	  
		 	3.4	 	Claims Against the Company	  	 	12	  
		 	3.5	 	Termination of Rights to Purchase Securities	  	 	12	  
		 	3.6	 	Disclosure of Information	  	 	12	  
		 	3.7	 	Investment Experience	  	 	13	  
		 	3.8	 	Legend	  	 	13	  
		 	3.9	 	Compliance with Laws	  	 	13	  
		 	3.10	 	Regulation S	  	 	13	  
		 	3.11	 	Married Shareholders	  	 	14	  
	 4.
	 	Representations and Warranties of Purchaser	  	 	14	  
		 	4.1	 	Organization, Good Standing and Qualification	  	 	14	  
		 	4.2	 	Authority and Enforceability	  	 	14	  

  
 Acquisition and Stock Purchase
Agreement 

  
 i 

											
		 	 4.3
	 	Compliance with Instruments	  	 	14	  
		 	 4.4
	 	Broker’s Fees	  	 	14	  
		 	 4.5
	 	Disclosure	  	 	14	  
	 5.
	 	Conditions to Closing	  	 	15	  
		 	 5.1
	 	Conditions of the Shareholders to Closing	  	 	15	  
		 	 5.2
	 	Conditions of Purchaser and Parent to Closing	  	 	15	  
		 		 	 (a)  
	 	Representations and Warranties	  	 	15	  
		 		 	 (b)
	 	Sale of All Company Stock	  	 	15	  
		 		 	 (c)
	 	No Material Adverse Change	  	 	15	  
		 		 	 (d)
	 	Securities	  	 	15	  
		 		 	 (e)
	 	Directors; Officers	  	 	15	  
		 		 	 (f)
	 	Options and Warrants	  	 	15	  
		 		 	 (g)
	 	Exemption from Registration	  	 	15	  
		 		 	 (h)
	 	Ancillary Agreements	  	 	15	  
		 		 	 (i)
	 	Due Diligence	  	 	16	  
		 		 	 (j)
	 	Working Capital	  	 	16	  
		 		 	 (k)
	 	Regulatory Approvals	  	 	16	  
		 		 	 (l)
	 	Company Approval	  	 	16	  
	 6.
	 	Covenants	  	 	16	  
		 	 6.1
	 	Insurance	  	 	16	  
		 	 6.2
	 	Public Announcements	  	 	16	  
		 	 6.3
	 	Non-Competition; Non-Solicitation	  	 	16	  
		 	 6.4
	 	Releases of Shareholders	  	 	17	  
		 	 6.5
	 	Releases of Prete and Truglio against LDK	  	 	18	  
		 	 6.6
	 	Further Action	  	 	18	  
		 	 6.7
	 	Specific Performance	  	 	19	  
	 7.
	 	Indemnification	  	 	19	  
		 	 7.1
	 	Survival of Representations and Warranties	  	 	19	  
		 	 7.2
	 	Indemnification by the Shareholders	  	 	19	  
		 	 7.3
	 	Procedure for Indemnification	  	 	20	  
		 	 7.4
	 	Payments	  	 	21	  
	 8.
	 	Reserved	  	 	21	  
	 9.    
	 	Miscellaneous	  	 	21	  
		 	 9.1
	 	Assignment	  	 	21	  
		 	 9.2
	 	Modifications, Amendments and Waivers	  	 	21	  
		 	 9.3
	 	Administrative law	  	 	22	  
		 	 9.4
	 	Product liability	  	 	22	  
		 	 9.5
	 	Data protection	  	 	22	  
		 	 9.6
	 	Governing Law	  	 	22	  
		 	 9.7
	 	Counterparts; Facsimile	  	 	22	  
		 	 9.8
	 	Titles and Subtitles	  	 	22	  
		 	 9.9
	 	Notices	  	 	22	  
		 	 9.10
	 	Severability	  	 	23	  
		 	 9.11
	 	Entire Agreement	  	 	23	  

  
 Acquisition and Stock Purchase
Agreement 

  
 ii 

 ACQUISITION AND STOCK PURCHASE AGREEMENT 

THIS ACQUISITION AND STOCK PURCHASE AGREEMENT (this “Agreement”) is entered into as of June 25, 2012 (the
“Effective Date”), by and among Solar Power, Inc., a California corporation, (“Purchaser”), SOLAR GREEN TECHNOLOGY SPA, an Italian Limited Liability (Joint Stock) Company (the
“Company”), and the security holders of the Company listed on the signature pages hereto (the “Shareholders”). 
 RECITALS 
 A. The Shareholders are the owners of 100% of the issued and
outstanding shares of equity securities and warrants, options or other rights to acquire equity securities of the Company (the “Company Stock”). 
 B. The Shareholders wish to sell all of their Company Stock and any and all other equity interests to Purchaser (the “Acquisition”) in exchange for cash and common stock of the
Purchaser (the “Acquisition Consideration”). 
 C. Pursuant to the Acquisition, (i) the
Shareholders that own outstanding shares of Company Stock will receive cash and/or Purchaser’s stock payment at the closing of the Acquisition all as described herein. 
 D. The Boards of Directors of the Company and Purchaser believe that the Acquisition is in the best interest of the Company and Purchaser and have approved the Acquisition. 

NOW, THEREFORE, in consideration of the promises and the mutual representations, warranties, covenants and agreements set forth in this
Agreement and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT 
  

	1.	Acquisition and Sale of Company Stock 

 1.1 Purchase and Sale of Company Stock. Subject to all the terms and conditions of this Agreement, (i) each Shareholder hereby sells, transfers and delivers to Purchaser, and Purchaser
hereby purchases from each Shareholder, all the shares of the Company Stock owned by such Shareholder, free and clear of any Encumbrances (as defined in Section 2.5) and (ii) each option, warrant or other right to purchase any securities
of the Company Stock shall terminate. Following the consummation of the Acquisition, Purchaser shall own 100% of the issued and outstanding shares of equity securities and warrants, options or other rights to acquire equity securities of the
Company. 
 1.2 Purchase Price for Company Stock, Options and Warrants. Subject to the terms and conditions of
this Agreement, in exchange for the Company Stock, Purchaser shall make the following payments (the “Purchase Price”): 
 (a) Within five (5) business days following the Closing, Purchaser shall deliver to LDK Solar Europe Holding S.A. (LUX) (“LDK”) a certain number of shares of SPI Stock
equal to the quotient of in the principal amount of Three Million Five Hundred Thousand Euros (€3,500,000) divided by the Ninety (90) day VWAP (as defined below) of SPI Stock as of June 11, 2012; 

 
 Acquisition and Stock Purchase Agreement 

  
 1 

 (b) Within five (5) business days following the Closing, Purchaser shall deliver
to each of Angelo Prete (“Prete”) and Giuseppe Truglio (“Truglio”) a certain number of shares of the Purchaser’s common stock (“SPI Stock”) equal to the quotient of
Six Hundred and Fifty Thousand Euros (€650,000) divided by the Ninety (90) Trading Day VWAP (as defined below) of SPI Stock as of June 11, 2012; and 
 (c) At the Closing, Purchaser shall deliver by wire transfer in immediately available funds to each of Prete and Truglio, One Hundred Thousand Euros (€100,000) (the “Initial
Closing Payment”); 
 For purposes of this Section 1.2, (i) “VWAP” means the
dollar volume-weighted average price of SPI Stock on the principal market in which it trades during the period beginning at 9:30:01 a.m., New York time, and ending at 4:00:00 p.m., New York time, and (ii) “Trading Day”
means any day on which the SPI Stock is traded on the principal securities exchange or securities market on which the SPI Stock is then tradable. 
 1.3 The Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices of Maiano Pisano e de Vito &
Partners located at Palazzo Veneranda Fabbrica del Duomo, Piazza del Duomo, 20, 20122 Milano , on the Effective Date, or at such other time and place as Purchaser and the Shareholders may agree. At the Closing, (i) Purchaser shall make the
Initial Closing Payment to each of Prete and Truglio in accordance with Section 1.2(c) above; and (ii) the Company, Shareholders and Purchaser, as applicable, shall deliver the certificates and other documents and instruments required to
be delivered by or on behalf of such party. Within five (5) business days of the Closing (i) each Shareholder shall deliver to Purchaser certificates representing the Company Stock owned by such Shareholder, duly endorsed for transfer or
accompanied by duly executed stock powers with all requisite transfer stamps affixed thereto, and (ii) Purchaser shall issue SPI Stock to the Shareholders in accordance with Sections 1.2(a) and 1.2(b) above. 

1.4 Options and Warrants. Any outstanding options, warrants or other rights to purchase Company Stock or any other
securities of the Company shall terminate as of the Closing and will not be assumed as a result of the Acquisition. 
  

	2.	Representations and Warranties of the Company and the Shareholders 

 The Shareholders and the Company hereby severally and not jointly represent and warrant to Purchaser that each of the following representations and warranties is true and correct in all respects as
of the Closing, except as disclosed in the disclosure letter separately delivered to the Company at the Closing (the “Disclosure Schedule”). As used in this Section 2, “Material Adverse
Effect” shall mean, with respect to the business of the Company, any substantial adverse effect or change in the business, including the operations, properties, prospects, financial condition, or results of operations of the
business, taken as a whole.  
 The parties hereby agree and acknowledge that the Disclosure Schedule delivered by the
Shareholders and the Company to Purchaser on the date hereof is incomplete. The Shareholders and the Company each hereby severally and not jointly agree to provide Purchaser with supplements (“Supplements”) to their
respective Disclosure Schedule on or before July 15, 2012, which Supplements shall contain all information that should have been disclosed in the 
  

Acquisition and Stock Purchase Agreement 

  
 2 

 
Disclosure Schedule that was delivered on the date hereof. Upon delivery of the Supplements as provided above, the Disclosure Schedule, as updated by the Supplements, shall be deemed to have been
delivered as of the date hereof to the extent that the information contained therein conforms to the prior understandings and discussions of the parties. 
 2.1 Organization and Authority to Do Business. Good Standing. The Company is a is a non-listed Joint-Stock Company (“società per azioni”/“S.P.A.”), duly organized,
validly existing and in good standing under the laws of the Republic of Italy and is qualified to do business in every jurisdiction in which it is required to be qualified. The Company has full power and authority and all licenses, permits and
authorizations necessary to own and operate its properties and to carry on its business as now conducted. Correct and complete copies of the Company’s articles of incorporation and bylaws have been furnished to the Purchaser (together, the
“Charter Documents”). Correct and complete copies of the minute books containing the records of all the meetings of the stockholders and board of directors, the stock certificate books and the stock record books of the
Company have been furnished to the Purchaser. The corporate books as well as the records of the Company are complete and accurate in all respects and all facts and corporate actions reflected therein have been conducted or taken in material
compliance with all applicable laws and with the relevant By-laws. All books and records required to be maintained by the Company have been accurately maintained on a timely basis. The Company is not in default under or in violation of any provision
of its Charter Documents, is not insolvent, nor declared bankrupt, and no action or request are pending to declare it bankrupt or to make it subject to – inter alia - any insolvency proceedings, composition with creditors or other winding up
procedure as provided by Royal Decree no. 267/1942, as amended. Schedule 2.1 of the Disclosure Schedule lists all of the directors and officers of the Company. 
 2.2 Authority and Enforceability. The Company has full corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated hereby and thereby.
The board of directors and the shareholders of the Company has duly approved this Agreement and has duly authorized the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. No corporate proceedings
on behalf of the Company are necessary to approve this Agreement or the consummation of the Acquisition. This Agreement constitutes the valid and legally binding obligation of the Company, enforceable in accordance with its terms and conditions.

 2.3 Capitalization. The authorized shares of the Company consist of 1,000,000 shares -fully paid in- of the
Company’s common stock (the “Common Stock”) and, namely, 700,000 Class A shares and 300,000 Class B shares. The Common Stock held by the Shareholders, each of whom is listed on the signature pages hereto,
constitutes 100% of the issued and outstanding shares of the Company immediately before the Closing. The Shareholders have delivered to Purchaser a schedule, in form satisfactory to Purchaser, that fully and accurately reflects the capitalization of
the Company, including all Company Stock and options, warrants and other rights to acquire capital stock of the Company, and the interests of any other party receiving consideration in connection with the Acquisition, as of the date hereof and the
disposition of all such interests upon the Closing (the “Capitalization Schedule”). The Company Stock has been duly authorized, is validly issued, fully paid and nonassessable, and is not subject to, nor was it issued in
violation of, any preemptive rights or rights of first refusal. The Company Stock is free of any pledge, attachment, charge, lien or restriction or encumbrance of any kind. Immediately upon and simultaneously with the Closing (i) the only
outstanding shares of Company Stock will be 1,000,000 shares of Common Stock, (ii) there will be no outstanding or authorized options, warrants, rights, contracts, calls, puts, rights to subscribe, 

 
 Acquisition and Stock Purchase Agreement 

  
 3 

 
conversion rights or other agreements or commitments to which the Company is a party or which are binding upon the Company providing for the issuance, disposition or acquisition of any of its
capital stock (other than this Agreement), (iii) there will be no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to the Company, (iv) there are no voting trusts, proxies or any other agreements
or understandings with respect to the voting of the capital stock of the Company and (v) the Company is not subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its capital stock. Other
than the Common Stock, no other class or series of capital stock has been issued by the Company at any time. The Company has not at any time redeemed any shares of its stock. All Company option plans or other incentive plans have been terminated.

 2.4 No Subsidiaries. Except for certain SPV (Special Purposes Vehicles) companies, duly incorporated in
connection with the implementation of solar power plants, the Company has no subsidiaries and has never had any subsidiaries and does not own or have the right to acquire an equity interest in any other entity. 

2.5 Consents and Approvals; No Violations. No filing with, and no permit, authorization, consent or approval of, any public
or governmental body or authority is necessary for the consummation of the Acquisition, unless the failure to obtain the foregoing would not have a Material Adverse Effect. Neither the execution and the delivery of this Agreement nor the
consummation of the Acquisition will: (i) violate any statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or authority, any nongovernmental,
self-regulatory organization or agency to which the Company or any of its properties or assets may be subject, or any court to which the Company is subject, or any provision of the Charter Documents; or (ii) conflict with, result in a breach
of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which
the Company is a party or by which it is bound or to which any of its assets is subject (or result in the imposition of any Encumbrance upon any of its assets) unless the cumulative effect of any the foregoing in this Section 2.5(ii) would not
have a Material Adverse Effect. For purposes of this Agreement, “Encumbrance” means any encumbrance, claim, lien, charge, mortgage, security interest, equity, option, pledge, restriction on transferability (including, without
limitation, any voting agreement, voting trust, any restriction on voting rights or right of disposition), defect of title, attachments, preliminary attachments or adverse claims (whether or not made, known or contingent) or other claims or third
party rights of whatever nature on any property or property interest. 
 2.6 Brokers’ Fees. Except as set
forth on Schedule 2.6 of the Disclosure Schedule, the Company has no Liability or obligation to pay any fees, commissions or expenses to any broker, finder, or agent with respect to the Acquisition. 

2.7 Financial Statements. The Shareholders have previously delivered to Purchaser the unaudited financial statements of the
Company for each fiscal year since formation of the Company (the “Financial Statements”), and the balance sheet of the Company at May 31, 2012, the “Balance Sheet”). The Financial Statements and
the Balance Sheet have been prepared from, and are in accordance with, the books and records of the Company and present fairly, in all material respects, the financial position and results of operations of the Company as of the dates and for the
periods indicated, in each case in accordance with generally accepted accounting principals (“GAAP”), except that notes required by GAAP shall not be required. The accounting books as well as the records of the Company are
complete and accurate in all 
  
 Acquisition and Stock
Purchase Agreement 

  
 4 

 
respects and all facts and accounting actions reflected therein have been conducted or taken in material compliance with all applicable laws and with the relevant By-laws. All accounting books
and records required to be maintained by the Company have been accurately maintained on a timely basis. 
 2.8 No Adverse
Changes. Except as disclosed on Schedule 2.8 of the Disclosure Schedule, since the date of the Balance Sheet the business of the Company has been conducted only in the ordinary course and in accordance with past and current practices,
which comply with the law and are reasonable and customary in the circumstances, due to use of the due diligence of a “prudent business man” and, thus, there has not been: 

(a) any material adverse change in the business of the Company or any event or condition that has had or is reasonably likely to
have a Material Adverse Effect on the business of the Company; 
 (b) any transaction, commitment, contract or agreement
entered into by the Company or any relinquishment by the Company of any contract or other right; 
 (c) any payment or
other provision of value to any third party, outside the ordinary course of the business of the Company; or 
 (d) any
significant change in the payment terms with the suppliers or customers of the Company; 
 (e) any amendment to the
Company’s articles of incorporation or bylaws or other comparable organizational documents 
 (f) any loss of
important customer or supplier, and the Company’s management has not received any written notice from any such important customer stating its intent to cease doing business with the Company. 

2.9 Absence of Undisclosed Liabilities. Except as disclosed on Schedule 2.9 of the Disclosure Schedule, the Company
has no liabilities or obligations of any nature (whether absolute, accrued, contingent or otherwise) except (i) liabilities or obligations that are fully accrued or reserved against in the Balance Sheet, and (ii) liabilities or obligations
arising since the date of the Balance Sheet in the ordinary course of business and consistent with past practice that would not separately or cumulatively reasonably likely result in a Material Adverse Effect 

2.10 Compliance. All activities of the Company have been, and are currently being, conducted in compliance with all
applicable state, local or foreign laws, ordinances, regulations, interpretations, judgments, decrees, injunctions, permits, licenses, certificates, governmental requirements, orders, guidelines and other similar items of any court or other
governmental entity, unless the cumulative effect of failure to so comply with the foregoing would not have a Material Adverse Effect. All Company indebtedness is listed on Scheduled 2.10 of the Disclosure Schedule. No event (including the
Acquisition) has occurred or been alleged that is, or with the passing of any time or the giving of any notice, certificate, declaration or demand would become, an event of default under, or breach of, any of the terms of any loan, borrowing,
debenture or financial facility of the Company or which would entitle any person to call for repayment prior to normal maturity. 
  

Acquisition and Stock Purchase Agreement 

  
 5 

 2.11 Environmental Laws and Regulations. There has been no storage, disposal,
generation, manufacture, refinement, transportation, handling, Release (as defined below) or treatment of waste or hazardous substances by the Company at, upon, or from any of the property now or previously owned or leased by the Company or at, upon
or from any third party property where the Company implemented any solar power plant, in violation of any applicable law, ordinance, rule, regulation, order, judgment, decree or permit or which could reasonably be expected to require remedial action
under any applicable law, ordinance, rule, regulation, order, judgment, decree or permit. For the purposes of this Section, “Release” shall mean any material spill, discharge, leak, emission, injection, escape, dumping or other release of
any kind. 
 2.12 Taxes. 
 (a) For purposes of this Agreement: “Tax” or “Taxes” means any state, local or foreign net income, gross income, gross receipts, windfall profit,
severance, property, production, sales, use, license, excise, franchise, employment, payroll, withholding, alternative or add-on minimum, ad valorem, value-added, transfer, stamp, or environmental tax, or any other tax, custom, duty, governmental
fee or other like assessment or charge of any kind whatsoever, including, without limitation, taxes or withholdings associated with the use of independent contractors, together with any interest or penalty, addition to tax or additional amount
imposed by any governmental authority, and “Tax Return” means any return, report or similar statement required to be filed with respect to any Taxes (including any attached schedules), including, without limitation, any
information return, claim for refund, amended return and declaration of estimated Tax. 
 (b) The Company has filed all
Tax Returns required to be filed; all such Tax Returns are complete and accurate and disclose all Taxes required to be paid by the Company for the periods covered thereby; all Taxes owed by the Company (whether or not shown on any such Tax Return)
have been timely paid or accrued for; the Company is not currently the beneficiary of any extension of time within which to file any Tax Return; the Company has duly and timely withheld from employee and consultant salaries, wages and other
compensation and paid over to the appropriate governmental authority all amounts required to be so withheld and paid over for all periods under all applicable laws; the Company has not waived or been requested to waive any statute of limitations in
respect of Taxes which waiver is currently in effect; all deficiencies asserted or assessments made as a result of any examination or audit of the Company’s Tax Returns have been paid in full; there is no action, suit, investigation, audit,
claim or assessment pending or proposed or threatened with respect to Taxes of the Company and no basis exists therefor; there are no liens for Taxes upon the assets of the Company except liens relating to current Taxes not yet due; all Taxes which
the Company is required by law to withhold or to collect for payment have been duly withheld and collected, and have been paid or accrued, reserved against and entered on the books of the Company; and the Company has never been a member of any
Company group or had any direct or indirect ownership in any corporation, partnership, joint venture or other entity. 
 2.13
Real Property. The Company owns no real property except for the right of property over the land surface as duly specified in the Disclosure Schedule. Schedule 2.13 of the Disclosure Schedule lists and describes briefly all real
property leased, subleased, occupied, held, controlled or otherwise used or contemplated to be used by the Company. The Company is in actual and exclusive occupation of each such property. None of the properties occupied by the Company is in
material violation of any law or in violation of any building, zoning, or other ordinance, code or regulation which would have a Material Adverse Effect or materially interfere with the use and occupancy thereof in the ordinary course by the Company
of its business. 
  
 Acquisition and Stock Purchase
Agreement 

  
 6 

 Any existing lease agreement is in full force and effect; the terms of the existing lease agreements are
fair and reasonable for the market and the rental payments under the lease agreements are at fair market rental prices. The Company is not in default, and no circumstances exist which, if unremedied, would, either with or without notice or the
passage of time or both, result in such default under the existing lease agreements. 
 The leased properties, as well as all
the equipment, plants and installations therein, inclusive, without limitation, of the heating system, electrical plants - all of which are in compliance with the provisions of Law no. 46 of March 30, 1990 - machinery and outfits are:

 a) in compliance with all applicable laws and regulations, including those concerning health, safety, hygienic and
environmental conditions; and: 
 b) save for normal wear and tear, in good operating condition, maintenance and repair and in
any event fit for use in the ordinary course of Company’s business 
 2.14 Intellectual Property Rights. The
Company owns, possesses, or has applied for all patents, patent rights, trademarks, trademark registrations, service marks, service mark registrations, trade names, licenses, inventions, copyrights, know-how (including trade secrets and other
unpatented or unpatentable proprietary or confidential information systems or procedures) and other rights or interests in items of intellectual property as are necessary for the operation of the business now conducted or proposed by the Company to
be conducted by the Company (collectively, the “Intellectual Property”), all of which are listed on Schedule 2.14 of the Disclosure Schedule. Tangible Assets. The Company owns or leases all buildings,
machinery, equipment, and other tangible assets necessary for the conduct of the business as conducted or as proposed to be conducted. Each such tangible asset is free from defects (patent and latent), has been maintained in accordance with normal
industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it is used currently. The Intellectual Property is not subject, also after the completion of the transaction
contemplated in this Agreement, to any constraints or limitations. 
 2.15 Contracts. Schedule 2.16 of the
Disclosure Schedule contains an accurate and complete list of every contract (whether express or implied), plan, agreement, lease or understanding to which the Company is a party or may be bound that involves (i) obligations of, or payments to,
the Company in excess of €10,000, (ii) the license of any patent, copyright, trade secret or other proprietary right to or from the Company, other than licenses to the Company available at a cost not exceeding $2,000 and widely available
through regular commercial distribution channels on standard terms and conditions, or (iii) the granting of rights to manufacture, produce, assemble, distribute, license, market or sell the Company’s products or affecting the
Company’s exclusive right to develop, manufacture, assemble, distribute, market or sell its products (each, a “Contract,” and collectively, the “Contracts”). The Company has performed all material
obligations required to be performed by it under the Contracts. There has not been any event of default (or any event or condition with notice or the lapse of time, both or otherwise, would constitute an event of default) thereunder on the part of
the Company or any other party thereto under one or more Contracts, the result of which, separately or cumulatively, is reasonably likely to result in a Material Adverse Effect. The Contracts are in full force and effect, have been signed by
individuals vested with the necessary powers and are valid and enforceable by the Company in accordance with their respective terms, except to the extent that 
  

Acquisition and Stock Purchase Agreement 

  
 7 

 
enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws now or hereafter in effect relating to creditors’ rights generally, by general
principles of equity. 
 2.16 Insurance. Schedule 2.17 of the Disclosure Schedule sets forth a true and
complete list of the insurance policies maintained with respect to the Company, its respective assets and properties, or their directors, officers or employees. True and complete copies of all such insurance policies and all related applications,
together with all modifications and amendments thereto, have been delivered to Purchaser before the date hereof. All such policies are in full force and effect, all premiums due and payable thereon have been paid, and no notice of cancellation or
termination has been received with respect to any such policy that has not been replaced on substantially similar terms before the date of such cancellation. The Company has performed in all material respects their respective obligations under each
policy to which the Company is a party or that provides coverage to the Company or any director, officer or employee thereof. The insurance policies coverage are sufficient for compliance with all requirements of applicable law, regulations and of
any contract to which the Company is party to and cover risks of the kind customarily insured against and in amounts customarily carried by businesses similarly situated. 
 2.17 Litigation. Except as described at Schedule 2.18 of the Disclosure Schedule: (i) there is no action, suit, proceeding, hearing, investigation, charge, complaint, claim, or
demand pending or threatened against or involving the Company its employees, Directors, collaborators, current or former, or any of its properties or rights, before any court, tax court, arbitrator, or administrative or governmental body, and there
exists no reasonable basis for any such action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand; (ii) there is no judgment, decree, injunction, rule or order of any court, tax court, governmental department,
commission, agency, instrumentality or arbitrator outstanding against the Company; and (iii) the Company is not in violation of any term of any judgment, decree, injunction or order outstanding against it. 

2.18 Employees. 
 (a) Schedule 2.19 of the Disclosure Schedule contains a complete list of every employee, consultant, collaborator (including project-workers), commercial agent and business finder of the
Company, providing their position, start dates, compensation (including benefits), accrued vacation, and stock options or other equity incentive issued or granted to them by the Company (including grant date, vesting terms, amount expected to be
vested as of the Closing, and exercise price). As of the Closing, all such options or other rights to acquire securities will have been terminated or exercised. 
 (b) The employment relationships of the Employees are covered by the National Collective Labour Agreement of the “Commercial Sector” (“CCNL Commercio”). The Company is not a
party to or bound by any collective bargaining agreement at the Company’s level, and it has not experienced any strikes, has not committed any unfair labor practice and has no knowledge of any organizational effort presently being made or
threatened by or on behalf of any labor union with respect to employees of the Company. The Company is in compliance with all laws and regulations respecting employment and employment practices, terms and conditions of employment, and wages and
hours and, except as disclosed in Schedule 2.19 of the Disclosure Schedule, the Company has not violated or incurred any liabilities for breach or unlawful termination of any employment contract with any of its employees or former employees or
for failure to comply with an order for the reinstatement or reengagement and back pay of any of its employees or former employees. 
  

Acquisition and Stock Purchase Agreement 

  
 8 

 (c) No employee has tendered his resignation for “just cause” according to
Art. 2119 of the Italian Civil Code over the last five years. No employee has been dismissed by the Company over the last five years. The employment of any former employee of the Company has been terminated in accordance with applicable law and
CCNL, and the Company has no liability under any individual or collective agreement or applicable law toward any such terminated employee. 
 (d) The Company has complied at any time with all the requirements provided by Legislative Decrees no. 626/1994 and no. 81/2008 (which replaced Legislative Decree no. 626/1994) and the related
regulations on occupational safety and health. The Company has not been served with any communication of the competent Authority regarding the institution of any investigation having as its subject matter any infringement of the abovementioned
requirements. 
 (e) All social security contributions due by the Company to private insurance Companies or government
Entities pursuant to the terms of the pension plans and/or policies for the employees of the Company have been duly paid and such pension plans and/or policies fully cover the statutory, government pension entitlements and the private,
non-government pension entitlements to which the employees are entitled. 
 (f) All insurance premiums due by the Company
to INAIL (“National Insurance Institute for Industrial Accidents”) pursuant to the applicable laws and regulations have been duly paid. 
 (g) Except for those provided for by law and the CCNL, the Company is not party to any: 
  

	 	•	 	 arrangements regarding bonus, deferred compensation, profit sharing, stock option; 

 

	 	•	 	 plans for medical or health insurance or other benefits of any kind, severance or pension. 

(h) The accrual for Employee severance indemnity (i.e., the so-called “Trattamento di Fine Rapporto”/TFR) on the
financial statements is adequate for all Employees. 
 (i) The Company has not granted any loans to any Employee.

 (j) The Company is not experiencing and has not experienced any “Cassa integrazione” and work stoppage
involving the Employees within the past five years. 
 (k) The Company has paid in full to all Employees all wages,
salaries and bonuses due and payable to such Employees, and has paid in full any related withholding tax to the Tax Authority. 

(l) No golden parachutes or similar advantages for Employees exist, nor any contractual obligations in excess of mandatory
provisions of law in case of dismissal. 
  
 Acquisition
and Stock Purchase Agreement 

  
 9 

 (m) The Acquisition will not give rise to (i) any extraordinary payment
obligations to any employee, consultant or other party on the part of the Company or (ii) the right of any employee or consultant to terminate or modify the terms of such party’s relationship with the Company. 

(n) No employee, director, consultant or independent contractor is party to any contract, including without limitation any
employment, consulting, contracting or similar contract, oral or written, with the Company. No employee, director, consultant or independent contractor is entitled to severance, bonus, or any other payment upon termination of such party’s
employment, consulting or independent contractor relationship with the Company or any extraordinary payment upon a change of control of the Company. Except as disclosed in Schedule 2.19 of the Disclosure Schedule, all employees, consultants and
independent contractors provide such employment, consulting or independent contractor services to the Company on an “at will” basis. 
 2.19 Employee Benefits. The Company maintains no employee benefit plans. 
 2.20 Guarantees. The Company is not a guarantor of, nor is it otherwise liable for, any liability or obligation (including indebtedness) of any other person or entity. 

2.21 Related-Party Transactions. 
 Except as set forth on Schedule 2.22 of the Disclosure Schedule, (i) no present employee, consultant, officer, shareholder, director or Affiliate (as defined below) of the Company, or, in the
case of any of the foregoing who are individuals, any member of his or her immediate family, or any Affiliate of any of the foregoing, and (ii) no former employee, consultant, officer, shareholder, director or Affiliate of the Company, or, in
the case of any of the foregoing who are individuals, any member of his or her immediate family, or any Affiliate of any of the foregoing: 
 (a) is indebted to the Company nor is the Company indebted (or committed to make loans or extend or guaranty credit) to any such person, other than for (i) the payment of salary or performance
bonuses for services rendered, (ii) reimbursement for reasonable expenses incurred on behalf of the Company, or (iii) other standard employee benefits made generally available to all employees or to similarly situated persons; 

(b) is, directly or indirectly, interested in any material contract with the Company (other than such contracts as relate to any
such person’s employment with the Company or ownership of capital stock of the Company) nor holds any direct or indirect ownership interest in any firm or corporation (i) with which the Company is affiliated or with which the Company has a
business relationship or (ii) that competes with the Company, except that such persons may own stock in publicly traded companies (not exceeding one percent of any such company’s outstanding capital stock) that may compete with the
Company. 
 As used herein the term “Affiliate” shall mean any person or entity that controls or is
controlled by, or is under common control with, the designated party. For purposes of this definition, “control” means the possession, directly or indirectly, of the power to direct the management or policies of a person or entity, whether
by ownership of voting securities, by contract or otherwise, or the ownership, directly or indirectly, of more than fifty percent (50%) of the voting securities or other interest of a person or entity. 

 
 Acquisition and Stock Purchase Agreement 

  
 10 

 2.23 Inventory. Each item of inventory of the Company whether reflected on the
Balance Sheet or subsequently acquired, (a) is free of any material defect or deficiency, (b) is in good, usable and currently marketable condition consistent with past practice in the ordinary course of business of the Company, and
(c) is properly reflected in the books and records of the Company at the lesser of cost and fair market value, with adequate obsolescence reserves, all as determined in accordance with GAAP. Since the date of the Balance Sheet, there have not
been any write-downs of the value of, or establishment of any reserves against, any inventory of the Company and except for write-downs and reserves in the ordinary course of business. 

2.24 Receivables. All the accounts receivable of the Company that are reflected on the Balance Sheet or on the accounting
records of the Company as of the Closing (a) represent actual indebtedness incurred by the applicable account debtors and (b) have arisen from bona fide transactions in the ordinary course of business. Except as disclosed in
Schedule 2.24 of the Disclosure Schedule, all such accounts receivable are good and collectible at the aggregate recorded amounts thereof, net of any applicable reserves for doubtful accounts reflected on the Balance Sheet. Since the date of
the Balance Sheet, there have not been any write-offs as uncollectible of any customer accounts receivable of the Company, except for write-offs in the ordinary course of business. 

2.25 Assets. Except as would not reasonably be expected to have a Material Adverse Effect, the Company has good and valid
title to all the assets reflected on the Balance Sheet or thereafter acquired, other than assets disposed of in the ordinary course of business since the date of the Balance Sheet, in each case free and clear of all Encumbrances. Schedule 2.25 of
the Disclosure Letter sets forth a brief description of each item of equipment or other personal property of the Company with an original cost in excess of €250,000, indicating, in each case, the purchase price thereof, the year of purchase and
the accumulated book depreciation through the Balance Sheet Date. Each item set forth or required to be set forth in Schedule 2.25 of the Disclosure Letter is adequate for the uses to which it is being put, is in good working order (ordinary wear
and tear excepted), is free from any material defect and has been maintained in all material respects in accordance with the past practice of the Company and generally accepted industry practice. All leased equipment and other personal property of
the Company is in all material respects in the condition required of such property by the terms of the lease applicable thereto. The buildings, plants and structures of the Company are structurally sound, are in good condition and repair, and are
adequate for the uses to which they are being put, and none of such buildings, plants or structures are in need of maintenance or repairs except for ordinary, routine maintenance and repairs. The assets of the Company are sufficient for the
continued conduct of the business of the Company in substantially the same manner as conducted before the date hereof. 

2.26 Disclosure. The representations and warranties contained in this Section 2 do not contain any untrue statement of
a material fact or omit to state any material fact necessary in order to make the statements and information contained in this Section 2 not misleading. 
  

Acquisition and Stock Purchase Agreement 

  
 11 

	3.	Representations and Warranties of each Shareholder 

 Each of the Shareholders, with respect only to such Shareholder individually and no other person or entity, represents and warrants to Purchaser that each of the representations and warranties set forth
below is true and correct in all respects as of the Closing with respect to such Shareholder, except as fairly disclosed in the Disclosure Schedule: 
 3.1 Authority and Enforceability. The Shareholders are the only owners of the Company’s shares and, thus, have full power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby and thereby. This Agreement constitutes the valid and legally binding obligation of the Shareholder, enforceable in accordance with its terms and conditions, except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of a specific performance,
injunctive relief, or other equitable remedies. 
 3.2 No Violations. Neither the execution and the delivery of
this Agreement nor the consummation of the Acquisition will conflict with, result in a breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any
notice under any agreement, contract, lease, license, instrument, or other arrangement to which the Shareholder is a party or by which the Shareholder is bound that could affect the Company Stock or the Company. 

3.3 Company Stock. The Shareholder holds of record and owns beneficially the Company Stock set forth next to the
Shareholder’s name on Exhibit A attached hereto, free and clear of any restrictions on transfer (other than any restrictions under applicable securities laws), taxes, security interests, options, warrants, purchase rights, contracts,
commitments, equities, claims, demands or any other Encumbrances. The Shareholder is not a party to any option, warrant, purchase right, or other agreement, understanding, contract or commitment that would entitle the Shareholder to hold or own,
directly or indirectly, of record or beneficially, any other equity interest in the Company or that could require the Shareholder to sell, transfer, or otherwise dispose of any equity interest in the Company (other than this Agreement) other than as
set forth in Exhibit A. The Shareholder is not a party to any voting trust, proxy, or other agreement or understanding with respect to the voting of any Company Stock. There is no litigation, claim, proceeding or governmental investigation
pending or threatened against the Shareholder which seeks to delay or prevent the consummation of, or which would be reasonably likely to adversely affect the Shareholder’s ability to consummate, the Acquisition. Upon transferring of the
Company’s shares at the Closing Date, Purchaser obtains good and valid title to such shares, legally and beneficially 

3.4 Claims Against the Company. The Shareholder does not have any claims against the Company other than rights or claims
arising with respect to the Shareholder’s ownership of the Company Stock. 
 3.5 Termination of Rights to Purchase
Securities. By execution of this Agreement, each Shareholder hereby permanently and irrevocably terminates any interest or right that such Shareholder has in, or to acquire, any security of the Company, effective as of the Closing.

 3.6 Securities Act. The SPI Stock are being acquired for investment only and not with a view to any public
distribution thereof in violation of any of the registration requirements of the Securities Act. 
 3.6 Disclosure of
Information. Each Shareholder has received and/or have had full access to a copy of all reports, registration statements, prospectuses and other information required to be filed by SPI (the “SEC Filings”) with the
Securities and Exchange Commission pursuant to the Exchange Act of 1934, as amended, and the Securities Act of 1933, as amended (the “Securities Act”). Each Shareholder has received or has had full access to all the

  
 Acquisition and Stock Purchase Agreement

  
 12 

 
information it considers necessary or appropriate to make an informed investment decision with respect to the SPI Shares to be issued by SPI to each Shareholder under this Agreement. Each
Shareholder further has had an opportunity to ask questions and receive answers from Purchaser on the terms and conditions of the offering of the SPI Shares and to obtain additional information necessary to make its investment decision. 

3.7 Investment Experience. Each Shareholder understands that the purchase of the SPI Shares involves substantial risk. Each
Shareholder (i) has experience as an investor in securities of companies such as Purchaser, (ii) acknowledges that each Shareholder is able to fend for himself, (iii) can bear the economic risk of Shareholder’s investment in the
SPI Shares and (iv) has such knowledge and experience in financial or business matters that each Shareholder is capable of evaluating the merits and risks of this investment in the SPI Shares and protecting its own interests in connection with
this investment. 
 3.8 Legend. 
 (a) It is understood that any certificates evidencing the SPI Shares will bear the legend set forth below: 
 THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN OFFERED AND SOLD IN AN “OFFSHORE TRANSACTION” IN RELIANCE UPON REGULATION S AS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.
ACCORDINGLY, THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) AND MAY NOT BE TRANSFERRED OTHER THAN IN ACCORDANCE WITH REGULATION S, PURSUANT TO REGISTRATION
UNDER THE SECURITIES ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT. 
 (b) The
legend set forth in paragraph (a) shall, upon the request of Shareholder, be promptly removed by SPI from any certificate evidencing the SPI Shares upon delivery to SPI of an opinion of counsel to Shareholder, reasonably satisfactory to SPI,
that the legended security can be freely transferred without a registration statement being in effect under the Securities Act. 

3.9 Compliance With Laws. Each Shareholder has satisfied the laws of each SPI Shareholder’s jurisdiction in connection
with the Acquisition, including (i) the legal requirements within the jurisdiction for the purchase of the SPI Shares, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other consents that
may need to be obtained and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase or holding of the SPI Shares. 
 3.10 Regulation S. Each Shareholder is not a United States person (as defined in Regulation S of the Securities Act) (a “U.S. Person”), and in order to establish the
basis for an exemption for the offer and sale of the SPI Shares under Regulation S promulgated under the Securities Act for offshore transactions with non-U.S. Persons, each Shareholder makes the representations, warranties and acknowledgements set
forth on Exhibit B attached hereto. 
  

Acquisition and Stock Purchase Agreement 

  
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 3.11 Married Shareholders. All of the Shareholders who are not married in regime of
separate marital property (“separazione dei beni”) with their respective spouses, for the purposes and effect of Sec. 215 et seq. of the Italian Civil Code, have provided notarized powers of attorney from their spouses. 

 

	4.	Representations and Warranties of Purchaser 

 Purchaser hereby represents and warrants to each Shareholder that each of the representations and warranties set forth below is true and correct in all respects as of the Closing. As used in this
Section 4, the term “Knowledge” shall mean, with respect to Purchaser, actual knowledge upon reasonable investigation of any officer of Purchaser. As used in this Section 4, “Material Adverse
Effect” shall mean, with respect to the business of Purchaser, as the case may be, any substantial adverse effect or change in the business, including the operations, properties, prospects, financial condition, or results of operations
of the business, taken as a whole. 
 4.1 Organization, Good Standing and Qualification. Purchaser is a corporation
duly organized, validly existing and in good standing under the laws of the State of California and has all requisite corporate power and authority to carry on its business as now conducted and as currently proposed to be conducted. 

4.2 Authority and Enforceability. Purchaser has full corporate power and authority to execute and deliver this Agreement
and to consummate the transactions contemplated hereby and thereby. The board of directors of the Purchaser have duly approved this Agreement and have duly authorized the execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby. To the Knowledge of the Purchaser, no additional corporate proceedings on behalf of either Purchaser is necessary to approve this Agreement or the consummation of the Acquisition. This Agreement constitutes the
valid and legally binding obligation of Purchaser enforceable in accordance with its terms and conditions, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws of general
application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies. 

4.3 Compliance with Instruments. Purchaser is not in violation or default of any provisions of its respective Articles of
Incorporation or Bylaws or in violation or default in any material respect of any instrument, judgment, order, writ, decree or contract to which it is a party or by which it is bound or of any material provision of federal or state statute, rule or
regulation applicable to such representing party. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby will not result in any such material violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either a material default under any such provision, instrument, judgment, order, writ, decree or contract or an event which results in the creation of any material lien, charge or
Encumbrance upon any assets of Purchaser. 
 4.4 Broker’s Fees. Purchaser has no liability or obligation to
pay any fees, commissions or expenses to any broker, finder, or agent with respect to the Acquisition. 
 4.5
Disclosure. The representations and warranties contained in this Section 4 do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements and information contained
in this Section 4 not misleading. 
  
 Acquisition
and Stock Purchase Agreement 

  
 14 

	5.	Conditions to Closing 

 5.1 Conditions of the Shareholders to Closing. The obligations of each Shareholder under this Agreement are subject to (i) the representations and warranties of Purchaser contained in
Section 4 being true and correct as of the Closing, unless otherwise waived by the Shareholder, (ii) Purchaser having duly authorized and entered into the Agreement, (iii) Purchaser entering into that certain employment agreement with
Prete (the “Prete Employment Agreement”); (iv) Purchaser entering into that certain consulting agreement with Truglio (the “Consulting Agreement”); and (v) Purchaser shall have performed and complied in
all material respects with all agreements, obligations and conditions contained in this Agreement that are required by this Agreement to be performed or complied with by it on or prior to the Closing and shall have obtained all approvals, consents
and qualifications necessary to complete the purchase and sale described herein. 
 5.2 Conditions of Purchaser and Parent
to Closing. The obligations of Purchaser under this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived in writing by Purchaser: 

(a) Representations and Warranties. The representations and warranties of the Company and each Shareholder contained in
Sections 2 and 3 shall be true and correct at the Closing. 
 (b) Sale of All Company Stock. All of the
Shareholders shall have tendered all of their Company Stock to Purchaser for purchase and shall have executed this Agreement. 

(c) No Material Adverse Change. Between the date of the Balance Sheet and the Closing, there shall have occurred no event
that is reasonably likely to have a Material Adverse Effect (as defined in Section 2) on the Company. 
 (d)
Securities. The Company shall have terminated any and all agreements, arrangements or plans relating to its equity securities, and all such agreements, arrangements and plans shall be of no further force and effect and there shall be no
rights or obligations outstanding under any such agreements, arrangements or plans. 
 (e) Directors; Officers.
Except as otherwise specified in writing by the Purchaser to the Company, all of the Company’s directors and officers shall have resigned and such resignations shall be effective as of the Closing. 

(f) Options and Warrants. All options, warrants or other rights to purchase Company stock or other securities of the
Company shall have either been terminated or exercised for shares of Company Stock. All Company option plans or other incentive plans shall have been terminated. 
 (g) Exemption from Registration. The offer and sale of the SPI Shares in the Acquisition shall be qualified or exempt from registration or qualification under all applicable United States
federal and state securities laws. 
 (h) Ancillary Agreements. Prete shall have entered into the Prete Employment
Agreement and Truglio shall have entered into the Consulting Agreement. 
  
 Acquisition and Stock Purchase Agreement 

  
 15 

 (i) Due Diligence. SPI shall have completed its due diligence in its full
satisfaction and in its sole discretion of the Company. If, as a result of the limited legal due diligence exercise to be conducted after closing or/and the contents of the Disclosure Supplements, liabilities arise in an amount exceeding Euro
500,000 (five-hundred-thousand), the Shareholders shall proportionally reimburse the Purchaser of said amount of Euro 500,000 (five-hundred-thousand), safe in any case the recovery of any damages. 

(j) Working Capital. The working capital of the Company at the Closing shall be at least €1,000,000 calculated in
accordance with GAAP. 
 (k) Regulatory Approvals. Each SPI Shareholder shall have obtained all material required
governmental, foreign exchange and regulatory approvals or consents in its jurisdiction of organization that are required under the laws of its jurisdiction of organization in order for such SPI Shareholder to purchase the SPI Shares as contemplated
by this Agreement. 
 (l) Company Approval. The board of directors and the shareholders of the Company has duly
approved this Agreement and has duly authorized the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 
  

	6.	Covenants. 

6.1 Insurance. The Company shall keep, or cause to be kept, all insurance policies set forth in Schedule 2.17 of the
Company Disclosure Letter, or suitable 
 6.2 Public Announcements. None of the Parties will issue any press
release or make any statement or disclosure to any third party (whether or not in response to an inquiry) regarding the existence of this Agreement or its terms, except as may be required by law, without prior written approval of Purchaser.

 6.3 Non-Competition; Non-Solicitation. 

(a) Each of Prete and LDK, for a period of two (2) years commencing on the Closing , and Truglio, for a period of one (1) year
commencing on the Closing, (both the two years and the one year period above jointly indicated as the “Restricted Period”) - without limiting the generality of this covenant also in conformity with Section 2557 of
the Italian Civil Code - shall not, and shall not permit any of its affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the business of the Company in the European Union (the
“Territory”); (ii) have an interest in any Person that engages directly or indirectly in the business of the Company in the Territory in any capacity, including as a partner, shareholder, member, employee, principal,
agent, trustee or consultant; or (iii) intentionally interfere in any material respect with the business relationships (whether formed prior to or after the date of this Agreement) between the Company and customers or suppliers of the Company.
With respect to Truglio and for the purpose of this paragraph a) of the Non-Competition clause, it is expressly agreed that the Business of the Company shall be intended as EPC (Engineering, Procurement and Construction) activity related to solar
power plants having a capacity of at least 20KW. Notwithstanding the foregoing, each of the Shareholders may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange if Seller is not a
controlling Person of, or a member of a group which controls, such Person and does not, directly or indirectly, own 5% or more of any class of securities of such Person. 
 (b) During the Restricted Period, each of the Shareholders shall not, and shall not 
  

Acquisition and Stock Purchase Agreement 

  
 16 

 
permit any of its affiliates to, directly or indirectly, hire or solicit any employee of the Company or encourage any such employee to leave such employment or hire any such employee who has left
such employment, except pursuant to a general solicitation which is not directed specifically to any such employees. 
 (c)
During the Restricted Period, each of the Shareholders shall not, and shall not permit any of its affiliates to, directly or indirectly, solicit or entice, or attempt to solicit or entice, any clients or customers of the Company or potential clients
or customers of the Company for purposes of diverting their business or services from the Company. 
 (d) Each of the
Shareholders acknowledge that a breach or threatened breach of this Section 6.3 would give rise to irreparable harm to Purchaser, for which monetary damages would not be an adequate remedy, and hereby agrees that in the event of a breach or a
threatened breach by each of the Shareholders of any such obligations, Purchaser shall, in addition to any and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including a
temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond). 

(e) Each of the Shareholders acknowledge that the restrictions contained in this Section 6.3 are reasonable and necessary to protect
the legitimate interests of Purchaser and constitute a material inducement to Purchaser to enter into this Agreement and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this Section 6.3
should ever be adjudicated to exceed the time, geographic, product or service, or other limitations permitted by applicable law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed
reformed, in such jurisdiction to the maximum time, geographic, product or service, or other limitations permitted by applicable law. The covenants contained in this Section 6.4 and each provision hereof are severable and distinct covenants and
provisions. The invalidity or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants or provisions hereof, and any such invalidity or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such covenant or provision in any other jurisdiction. 
 6.4 Releases of
Shareholders. 
 (a) Effective upon the Closing, each of the Shareholders, for such Shareholder and such
Shareholder’s predecessors, successors, personal representatives and assigns (the “Releasors”), hereby irrevocably releases and forever discharges the Company and Purchaser, and the Company’s and Purchaser’s
past, present and future officers, directors, employees, agents, stockholders, partners, managers, successors, representatives, assigns and affiliates (other than the Shareholders) (the “Releasees”), as the case may be, from
(i) any and all claims, liabilities, costs, expenses, rights, causes of action, suits, litigation, proceedings, arbitrations, demands, however arising, whether at law or equity, actual or contingent, known or unknown arising solely out of, or
relating solely to, the Shareholder’s ownership (direct or indirect) of any debt or equity interests in the Company (including, without limitation, the Company Stock) and (ii) any and all obligations, whether previously or now existing, up
to and through the Closing, which the Company may have to, or have incurred for the benefit or on behalf of, any Releasor, whether pursuant to law, contract (including without limitation any shareholders agreement between the Shareholders),
provision of the Company’s charter documents or otherwise, arising solely out of, or relating solely to, the Releasors’ ownership 
  

Acquisition and Stock Purchase Agreement 

  
 17 

 
(direct or indirect) of any debt or equity interests in the Company (including, without limitation, the Company Stock); provided, that this release shall not extend to claims or
obligations arising out of, or relating to this Agreement. 
 (b) Each Shareholder hereby acknowledges and agrees that
the consideration received by each of them for the execution and delivery of this Agreement, including without limitation the consideration received by the Shareholders for the Company Stock, was fully negotiated and bargained for and constitutes
full and fair consideration for the agreements and releases by each of them set forth in this Agreement. 
 (c) Each
Shareholder hereby confirms that such party (i) has carefully read the provisions of this Section 6.4, (ii) has reviewed such provisions with such party’s respective attorneys and has consulted therewith regarding such
party’s rights and obligations hereunder, and (iii) has had ample and sufficient opportunity to consider the terms of this Section 6.4 without duress or coercion. Accordingly, each Releasor forever waives all rights to assert that the
release contained in this Section 6.4 was the result of a mistake in law or in fact or to assert that any or all of the legal theories or factual assumptions used for negotiating purposes are for any reason inaccurate or inappropriate.

 6.5 Releases of Prete and Truglio against LDK. 

(a) Effective upon the Closing, each of Prete and Truglio (the “Releasors”), hereby irrevocably releases
and forever discharges LDK and its past, present and future officers, directors, employees, agents, stockholders, partners, managers, successors, representatives, assigns and affiliates (the “Releasees”), as the case may be,
from any and all claims, liabilities, costs, expenses, rights, causes of action, suits, litigation, proceedings, arbitrations, demands, however arising, whether at law or equity, actual or contingent, known or unknown arising solely out of, or
relating solely to, any and all obligations, whether previously or now existing, up to and through the Closing, which LDK may have to, or have incurred for the benefit or on behalf of, any Releasor; provided, that this release shall not
extend to claims or obligations arising out of, or relating to this Agreement. 
 (b) Each Shareholder hereby
acknowledges and agrees that the consideration received by each of them for the execution and delivery of this Agreement, including without limitation the consideration received by the Shareholders for the Company Stock, was fully negotiated and
bargained for and constitutes full and fair consideration for the agreements and releases by each of them set forth in this Agreement. 
 (c) Each Shareholder hereby confirms that such party (i) has carefully read the provisions of this Section 6.5, (ii) has reviewed such provisions with such party’s respective
attorneys and has consulted therewith regarding such party’s rights and obligations hereunder, and (iii) has had ample and sufficient opportunity to consider the terms of this Section 6.5 without duress or coercion. Accordingly, each
Releasor forever waives all rights to assert that the release contained in this Section 6.5 was the result of a mistake in law or in fact or to assert that any or all of the legal theories or factual assumptions used for negotiating purposes
are for any reason inaccurate or inappropriate. 
 6.6 Further Action. Before and after the Closing, each of
Purchaser and the Shareholders agrees promptly to take all such reasonable and lawful actions as may be necessary or desirable to effect the Acquisition in accordance with this Agreement, including without limitation the execution of such further
instruments of conveyance and transfer and additional action as Purchaser may reasonably request to effect, consummate, confirm or evidence the transfer to Purchaser of the Company Stock and any other transactions contemplated hereby. 

 
 Acquisition and Stock Purchase Agreement 

  
 18 

 Within 40 days as from the Closing Date, Shareholders will provide Purchaser with the
following certificates, which contents shall be satisfactory to Purchaser and not in conflict with any information provided by the Shareholders: 
 1) the certificates, issued by the competent Courts or other judicial Authorities, listing any pending legal proceedings or insolvency procedures against the Company; 

2) the certificate concerning the Company’s tax liabilities pursuant to Article 14 of Legislative Decree no. 472/1997, as amended,
duly issued by the relevant Tax Office (hereinafter, the “Tax Certificate”); 
 3) an updated list of work in
progress existing at the Closing Date 
 6.7 Specific Performance. Each Shareholder acknowledges that the
Company’s business is unique and recognizes and affirms that in the event of a breach of this Agreement by such Shareholder, money damages may be inadequate and Purchaser may have no adequate remedy at law. Accordingly, each Shareholder agrees
that Purchaser shall have the right, in addition to any other rights and remedies existing in its favor, to enforce its rights and such Shareholder’s obligations hereunder not only by an action or actions for damages but also by an action or
actions for specific performance, injunctive and/or other equitable relief. 
  

	7.	Indemnification 

7.1 Survival of Representations and Warranties. All representations and warranties in this Agreement and any other
certificate or document delivered pursuant to this Agreement shall survive for eighteen (18) months following the Closing; provided, that the representations and warranties in Section 2.3 (Capitalization) shall survive the
Closing indefinitely, and the representations and warranties in Sections 2.7 (Financial Statements), 2.11 (Environmental Laws and Regulations), 2.12 (Taxes), 2.17 (Litigation) and 2.18 (Employees) shall survive the Closing and continue in full
force and effect until expiration of any applicable statute of limitation or audit and examination period. Notwithstanding anything in the foregoing to the contrary, any claim relating to fraud or willful misconduct shall also survive the Closing
indefinitely. All covenants and obligations contained in this Agreement shall survive the Closing until all obligations with respect thereto have been performed or until they have expired in accordance with their respective terms. The right to
indemnification, setoff, payment of Damages (as defined in this Section 7) or other remedy based on any representations, warranties, covenants, and obligations will not be affected by any investigation conducted with respect to, or any
knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or at the Closing, with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant, or obligation. 
 7.2 Indemnification by the Shareholders. Subject to the limitations set
forth in this Agreement, each Shareholder shall severally, and not jointly, indemnify Purchaser, and the Company and each of their respective officers, directors, stockholders, employees, agents, representatives, affiliates, successors and assigns
and hold each of them harmless from and against and pay on behalf of or reimburse such party in respect of any damage, liability, demand, claim, action, cause of action, cost, damage, diminution in value, deficiency, tax, penalty, fine or other loss
or expense, whether or not arising out of a third party claim, including all interest, 
  
 Acquisition and Stock Purchase Agreement 

  
 19 

 
penalties, reasonable attorneys’ fees and expenses and all amounts paid or incurred in connection with any action, demand, proceeding, investigation or claim by any third party (including
any governmental entity or any department, agency or political subdivision thereof) ( “Damages”) against or affecting such party or which, if determined adversely to such party, would give rise to, evidence the existence of,
or relate to, any other Damages and the investigation, defense or settlement of any of the foregoing Damages which such party may suffer, sustain or become subject to, as a result of or relating to: 

(a) the breach of any representation or warranty made by the Company or any Shareholder contained in this Agreement with respect
thereto in connection with the Closing if such breach is not cured within fifteen (15) days of such notice; or 
 (b)
the breach of any covenant or agreement made by the Company (if such covenant or agreement is to be performed at or prior to the Closing) or any Shareholder contained in this Agreement with respect thereto in connection with the Closing if such
breach is not cured within fifteen (15) days of such notice. 
 Purchaser’s remedy for any indemnification of Damages
hereunder may be satisfied by proceeding against the indemnifying party or parties for all or any portion of any such Damages or pursuant to the terms of Section 7.4, or both. 

7.3 Procedure for Indemnification. 
 (a) If a party hereto seeks indemnification under this Section 7, such party (the “Indemnified Party”) shall give written notice to the other party (the
“Indemnifying Party”) after receiving written notice of any action, lawsuit, proceeding, investigation or other claim against it (if by a third party) or discovering the liability, obligation or facts giving rise to such
claim for indemnification, describing the claim, the amount thereof (if known and quantifiable), whether insurance may be available (if known), and the basis thereof; provided that the failure to so notify the Indemnifying Party shall not relieve
the Indemnifying Party of its or his obligations hereunder except to the extent such failure shall have harmed the Indemnifying Party. In that regard, if any action, lawsuit, proceeding, investigation or other claim shall be brought or asserted by
any third party which, if adversely determined, would entitle the Indemnified Party to indemnity pursuant to this Section 7, the Indemnified Party shall promptly notify the Indemnifying Party of the same in writing, specifying in detail the
basis of such claim and the facts pertaining thereto and the Indemnifying Party shall be entitled to notify any applicable insurer and to control (subject to the rights of such insurer) the defense of such action, lawsuit, proceeding, investigation
or other claim giving rise to the Indemnified Party’s claim for indemnification at its expense with reputable counsel reasonably acceptable to the Indemnified Party; provided that, as a condition precedent to the Indemnifying Party’s right
to assume control of such defense, it must first agree to be fully responsible for all Damages relating to such claims and that it will provide full indemnification to the Indemnified Party for all Damages (to the extent not reimbursed by insurance)
relating to such claim; and provided further that the Indemnifying Party shall not have the right to assume control of such defense and shall pay the fees and expenses of counsel retained by the Indemnified Party, if the claim over which the
Indemnifying Party seeks to assume control (i) seeks non-monetary relief, (ii) involves criminal or quasi-criminal allegations, or (iii) involves a claim which, upon petition by the Indemnified Party, the appropriate court rules
that the Indemnifying Party failed or is failing to vigorously prosecute or defend. 
  
 Acquisition and Stock Purchase Agreement 

  
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 (b) If the Indemnifying Party is permitted to assume and control the defense and
elects to do so, the Indemnified Party shall have the right to employ counsel separate from counsel employed by the Indemnifying Party in any such action and to participate in the defense thereof, subject to the control of the Indemnifying Party,
but the fees and expenses of such counsel employed by the Indemnified Party shall be at the expense of the Indemnified Party unless (i) the employment thereof has been specifically authorized by the Indemnifying Party in writing, or (ii) a
conflict of interest between the Indemnifying Party and the Indemnified Party. 
 (c) If the Indemnifying Party shall
control the defense of any such claim, the Indemnifying Party shall obtain the prior written consent of the Indemnified Party (which shall not be unreasonably withheld) before entering into any settlement of a claim or ceasing to defend such claim,
if pursuant to or as a result of such settlement or cessation, injunction or other equitable relief will be imposed against the Indemnified Party or if such settlement does not expressly unconditionally release the Indemnified Party from all
liabilities and obligations with respect to such claim, without prejudice. If the Indemnified Party shall control the defense of any such claim, the Indemnified Party shall obtain the prior written consent of the Indemnifying Party (which shall not
be unreasonably withheld) before entering into any settlement of a claim or ceasing to defend such claim, if the Indemnifying Party is a named defendant in such claim and pursuant to or as a result of such settlement or cessation, injunction or
other equitable relief will be imposed against the Indemnifying Party or if such settlement does not expressly unconditionally release the Indemnifying Party from all liabilities and obligations with respect to such claim, without prejudice.

 7.4 Payments. Any payment pursuant to a claim for indemnification shall be made not later than thirty
(30) days after receipt by the Indemnifying Party of written notice from the Indemnified Party stating the amount of the claim, unless the claim is subject to defense as provided hereunder, in which case payment shall be made not later than ten
(10) days after the amount of the claim is finally determined. Any payment required under this Section 7 which is not made when due shall bear interest at a rate equal to five percent (5%) per annum for each day until paid.

  

	8.	Reserved. 

  

	9.	Miscellaneous 

9.1 Assignment. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the
parties hereto. Neither this Agreement nor any of the rights, interests, or obligations hereunder shall be assigned by any party hereto by operation of law or otherwise without the prior written consent of Purchaser and the Shareholders;
provided, that Purchaser, in its sole discretion, may assign all or any portion of its rights, interests and obligations hereunder to any affiliate of Purchaser if such assignee assumes and agrees in writing with the Shareholders to perform
all of Purchaser’s obligations hereunder. This Agreement shall be binding upon and inure to the benefit of successors and assigns of the parties hereto. 
 9.2 Modifications, Amendments and Waivers. Except as expressly provided herein, neither this Agreement nor any term hereof may be modified, amended, waived or supplemented other than by a
written instrument referencing this Agreement and signed by Purchaser and each of the Shareholders. Any such modification, amendment, waiver or supplement effected in accordance with this Section 9.2 shall be binding upon each Shareholder. The
conditions to each party’s obligations to consummate the Acquisition are for the sole benefit 
  
 Acquisition and Stock Purchase Agreement 

  
 21 

 
of such party and may be waived by such party in whole or in part to the extent permitted by law in a writing signed by such party or by closing with actual knowledge that a condition to the
Closing has not been satisfied; provided, however, that any such waiver of a condition of the Closing shall not be deemed a waiver of any other right or remedy of any party, including without limitation in respect of
misrepresentations, breaches of warranty or covenant, or any right to indemnification. No failure to enforce any provision of this Agreement shall be deemed to or shall constitute a waiver of such provision and no waiver of any of the provisions of
this Agreement shall be deemed to or shall constitute a waiver of any other provision hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. 
 9.3 Administrative law. The Company has obtained all governmental and or local approvals, authorizations, permits or licenses which are required or necessary for the lawful conduct of its
business. 
 9.4 Product liability. In all its processes the Company adopts the highest level of diligence and
makes use of the highest known available scientific and technologic standards for the activities carried out pursuant to its corporate purpose. There are no actions, suits or proceedings pending or threatened against the Company in connection with
the products sold by it or which are likely to be started against it. There are no liabilities with regard to warranties given in relation to products of the Company supplied to customers prior to the execution of this Agreement. 

9.5 Data protection. The Company has complied with all requirements provided by and Legislative Decree no. 196 of
June 30, 2003, and subsequent amendments and adopts all necessary measures in order to comply with the said requirements. 

9.6 Governing Law. Jurisdiction. This Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the Republic of Italy, without giving effect to principles of conflicts of law. Any dispute which may arise under this Agreement, or which
is in any way connected with it, shall be decided and settled with exclusive jurisdiction by the Court of Milan (Tribunale di Milano). 
 9.7 Counterparts; Facsimile. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.
Delivery of an executed signature page to this Agreement by facsimile transmission shall be effective as delivery of a manually signed counterpart hereof or thereof. 
 9.8 Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

9.9 Notices. All notices, requests, claims, demands and other communications required or permitted under this Agreement
shall be in writing and shall be deemed to have been duly given upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile, or 48 hours after being deposited in the U.S. mail as certified or registered
mail with postage prepaid, if such notice is addressed to the party to be notified as follows: 
  

	 If to Purchaser: 
	Solar Power, Inc. 

 2240 Douglas Blvd, Suite 200

 Roseville, California 95661 
 Attention: Chief Financial Officer 
 Telephone: (800) 548-8767 

Facsimile: (916) 770-8199 
  

Acquisition and Stock Purchase Agreement 

  
 22 

 with a copy (which shall not constitute notice) to: 

Weintraub Genshlea Chediak Tobin & Tobin 
 400 Capitol Mall, Suite 11000 
 Sacramento, CA 95814-4428 

Attention: David Adams 
 Telephone: (916) 558-6028 
 Facsimile: (916) 446-1611 

 

	 If to a Shareholder: 
	to the address set forth on such Shareholder’s signature page. 

  

	 If to the Company: 
	Solar Green Technology 

 Via Procaccini 48 

20154 Milano, Italy 
 Attention: 
 Telephone: 

Facsimile: 

9.10 Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the
parties agree to renegotiate such provision in good faith, in order to maintain the economic position enjoyed by each party as close as possible to that under the provision rendered unenforceable. In the event that the parties cannot reach a
mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision were so excluded and
(iii) the balance of the Agreement shall be enforceable in accordance with its terms. 
 9.11 Entire
Agreement. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement, and any and all other written or oral agreements existing between the parties are expressly canceled.

 [remainder of this page intentionally blank - signature pages follow] 
  
 Acquisition and Stock Purchase Agreement 

  
 23 

 The parties have executed this Acquisition and Stock Purchase Agreement as of the date first
written above. 
  

			
	SHAREHOLDERS:
	
	ANGELO PRETE
	
	 /s/ Angelo Prete

		
	Address:	 	 [redacted]

	
	  

	
	GIUSEPPE TRUGLIO
	
	 /s/ Guiseppe Truglio

		
	Address:	 	 [redacted]

	
	  

	
	LDK SOLAR EUROPE HOLDING S.A.
	
	 /s/ Paolo Giacometti

	Name:	 	Paolo Giacometti
	Title:	 	Proxy holder
	  

		
	Address:	 	 [redacted]

	
	  

  
 24 

 
	
	THE PURCHASER:
	
	SOLAR POWER, INC.
	
	   /s/ Jim Pekarsky

	Name: Jim Pekarsky
	Title: Chief Financial Officer
	
	THE COMPANY:
	
	SOLAR GREEN TECHNOLOGY
	
	   /s/ Angelo Prete

	Name: Angelo Prete
	Title: Managing Director

  
 Acquisition and Stock
Purchase Agreement 

  
 25 

 Pursuant to Sections 1341 and 1342 of the Italian Civil Code, the Parties expressly approve the following
provisions of this ACQUISITION AND STOCK PURCHASE AGREEMENT: Article 2 (Representations and Warranties of the Company and the Shareholders); Article 3 (Representations and Warranties of each Shareholder); Article 4 (Representations and Warranties of
Purchaser); Article 6 (Covenants), Article 6.1 (Insurance); Article 6.3 (Non-Competition; Non-Solicitation); Article 6.4 (Releases of Shareholders); Article 6.5 (Releases of Prete and Truglio against LDK); Article 6.7 (Specific Performance); Article
7 (Indemnification), Article 7.1 (Survival of Representations and Warranties); Article 7.2 (Indemnification by the Shareholders); Article 7.3 (Procedure for Indemnifications); Article 7.4 (Payments); Article 9 (Miscellaneous); Article 9.1
(Assignment); Article 9.2 (Modifications, Amendments and Waivers); Article 9.4 (Product Liability); Article 9.6 (Governing Law. Jurisdiction); Article 9.10 (Severability); Article 9.11 (Entire Agreement). 

 

									
	THE PURCHASER:	  		  	 SHAREHOLDERS:

	SOLAR POWER, INC.	  		  	ANGELO PRETE
			
	     /s/ Jim Pekarsky
	  		  	     /s/ Angelo Prete

	Name: Jim Pekarsky	  		  		 	
	Title: Chief Financial Officer	  		  	Address:	 	     [redacted]

	  		  	  

 

			
	THE COMPANY:	  		  	
	SOLAR GREEN TECHNOLOGY	  		  	GIUSEPPE TRUGLIO
			
	     /s/ Angelo Prete
	  		  	     /s/ Guiseppe Truglio

	 Name: Angelo Prete
 Title: Managing Director
	  		  		 	
	  		  	Address:	 	     [redacted]

			
	  
	  		  	  

				
	Address:	 	     [redacted]
	  		  	
				
	  
	  		  		 	
			
		  		  	LDK SOLAR EUROPE HOLDING S.A.
			
		  		  	     /s/ Paolo Giacometti

		  		  	Name: Paolo Giacometti
		  		  	Title: Proxy holder
			
		  		  	  

				
		  		  	Address:	 	     [redacted]

			
		  		  	  

  
 Acquisition and Stock Purchase
Agreement 

  
 26 

 EXHIBIT A 

SHAREHOLDERS 
  

			
	 SHAREHOLDER
	  	 NUMBER OF SHARES OWNED

	 LDK SOLAR EUROPE HOLDING S.A.
	  	700,000, CLASS A
	 ANGELO PRETE
	  	150,000, CLASS B
	 GIUSEPPE TRUGLIO
	  	150,000, CLASS B

  
 Acquisition and Stock Purchase
Agreement 

  
 27 

 EXHIBIT B 
 REGULATION S REPRESENTATIONS 
 (a) SPI Shareholder understands and
acknowledges that (A) the SPI Shares are being sold in reliance upon an exemption from registration afforded by Regulation S promulgated under the Securities Act (or other applicable exemption from the registration requirements under the
Securities Act), and that such SPI Shares have not been registered with any state securities commission or authority; and (B) pursuant to the requirements of Regulation S, the SPI Shares may not be transferred, sold or otherwise exchanged,
unless in compliance with the provisions of Regulation S and/or pursuant to registration under the Securities Act, or pursuant to another available exemption thereunder. 
 (b) SPI Shareholder is not a U.S. Person (as defined under Regulation S) and is not acquiring the SPI Shares of for the account of any U.S. Person; and SPI Shareholder is not otherwise deemed to be a
“U.S. Person” within the meaning of Regulation S. 
 (c) The offer leading to the sale evidenced hereby was made in an
“offshore transaction.” For purposes of Regulation S, SPI Shareholder understands that an “offshore transaction” as defined under Regulation S is any offer or sale not made to a person in the United States and either (A) at
the time the buy order is originated, the purchaser is outside the United States, or the seller or any person acting on his/her behalf reasonably believes that the purchaser is outside the United States; or (B) for purposes of (1) Rule 903
of Regulation S, the transaction is executed in, or on or through a physical trading floor of an established foreign exchange that is located outside the United States or (2) Rule 904 of Regulation S, the transaction is executed in, on or
through the facilities of a designated offshore securities market, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the U.S. 

(d) Neither SPI Shareholder, nor any affiliate or any Person acting on SPI Shareholder’s behalf, has made or is aware of any
“directed selling efforts” in the United States, which is defined in Regulation S to be any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States
for any of the SPI Shares being purchased hereby. 
 (e) SPI Shareholder understands that SPI is the seller of the SPI Shares,
and that, for purpose of Regulation S, a “distributor” is any underwriter, dealer or other person who participates, pursuant to a contractual arrangement, in the distribution of securities offered or sold in reliance on Regulation S and
that an “affiliate” is any partner, officer, director or any person directly or indirectly controlling, controlled by or under common control with any person in question. SPI Shareholder agrees that he/she will not, during the Restricted
Period set forth under Rule 903(b)(iii)(A), act as a distributor, either directly or through any affiliate, nor shall he/she sell, transfer, hypothecate or otherwise convey the SPI Shares other than to a non-U.S. Person. 

(f) SPI Shareholder is purchasing the SPI Shares for its own account and risk and not for the account or benefit of a U.S. Person (as
defined in Regulation S) and no other person has any interest in or participation in the SPI Shares or any right, option, security interest, pledge or other interest in or to the SPI Shares. 
  
 Acquisition and Stock Purchase Agreement 

  
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 (g) SPI Shareholder will, after the expiration of the Restricted Period, as set forth under
Regulation S Rule 903(b)(3)(iii)(A), offer, sell, pledge or otherwise transfer the SPI Shares only in accordance with Regulation S, or pursuant to an available exemption under the Securities Act and, in any case, in accordance with applicable state
securities laws. The transactions contemplated by this Agreement have neither been pre-arranged with a purchaser who is in the U.S. or who is a U.S. Person, nor are they part of a plan or scheme to evade the registration provisions of the United
States federal securities laws. 
  
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Stock Purchase Agreement 

  
 29

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