Document:

Sixth Amendment to Amended and Restated Credit Agreement

 Exhibit 10.1 
 EXECUTION VERSION 
  

 
  

SIXTH AMENDMENT 
 TO 
 AMENDED AND RESTATED CREDIT AGREEMENT 

Dated as of April 3, 2012 
 AMONG 
 OASIS PETROLEUM NORTH AMERICA LLC, 

AS BORROWER, 
 THE GUARANTORS PARTY HERETO, 
 BNP PARIBAS, 

AS ADMINISTRATIVE AGENT, 

AND 
 THE LENDERS PARTY HERETO 
  

 
  

 SIXTH AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS SIXTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Sixth Amendment”) dated as of April 3, 2012, is among OASIS PETROLEUM NORTH AMERICA LLC, a Delaware
limited liability company (the “Borrower”); the Guarantors party hereto (the “Guarantors” and collectively with the Borrower, the “Obligors”); each of the lenders party to the Credit Agreement
referred to below (collectively, the “Lenders”); and BNP PARIBAS, as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”). 

R E C I T A L S 
 A. The Parents, the Borrower, the Administrative Agent and the Lenders are parties to that certain Amended and Restated Credit Agreement dated as of February 26, 2010, as amended by that certain
First Amendment to Amended and Restated Credit Agreement and Consent dated as of June 3, 2010, that certain Second Amendment to Amended and Restated Credit Agreement dated as of August 11, 2010, that certain Third Amendment to Amended and
Restated Credit Agreement and Limited Waiver dated as of January 21, 2011, that certain Fourth Amendment to Amended and Restated Credit Agreement dated as of June 16, 2011, and that certain Fifth Amendment to Amended and Restated Credit
Agreement dated as of October 6, 2011 (the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower. 

B. The Borrower, the Guarantors, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit
Agreement. 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Defined
Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Sixth Amendment. Unless otherwise indicated, all section references in this Sixth Amendment
refer to sections of the Credit Agreement. 
 Section 2. Amendments to Credit Agreement. 

2.1 Amendments to Section 1.02. 
 (a) The definition of “Agreement” is hereby amended in its entirety to read as follows: 
 “Agreement” means this Amended and Restated Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and
the Sixth Amendment, as the same may be further amended or supplemented from time to time. 

  
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 (b) The following definition of “Sixth Amendment” is hereby added where
alphabetically appropriate to read as follows: 
 “Sixth Amendment” means that certain Sixth
Amendment to Amended and Restated Credit Agreement, dated as of April 3, 2012, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto. 
 2.2 Amendment to Section 9.18(a). Section 9.18(a) is hereby amended in its entirety to read as follows: 
 (a) The Parent and the Borrower will not, and will not permit any Subsidiary to, enter into any Swap Agreements with any Person other than (i) Swap Agreements in respect of commodities (A) with
an Approved Counterparty and (B) the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed,
as of the date such Swap Agreement is executed, (I) for the period from 1 to 12 months after the date of execution of such Swap Agreement, 110% of the Current Production for each month during the period during which such Swap Agreement is in
effect for each of crude oil and natural gas, calculated separately (but in no event to exceed 100% of the forecasted production, as reasonably determined by the Borrower, of each of crude oil and natural gas, calculated separately, of the Borrower
and its Subsidiaries for each such month), (II) for the period from 13 to 24 months after the date of execution of such Swap Agreement, 100% of the Current Production for each month during the period during which such Swap Agreement is in effect for
each of crude oil and natural gas, calculated separately, (III) for the period from 25 to 36 months after such date of execution, 75% of the Current Production for each month during the period during which such Swap Agreement is in effect for each
of crude oil and natural gas, calculated separately, and (IV) for the period from 37 to 60 months after such date of execution, 50% of the Current Production for each month during the period during which such Swap Agreement is in effect for each of
crude oil and natural gas, calculated separately; provided, that the Borrower may purchase puts and floors the notional volumes for which exceed the foregoing percentage limitations (but which do not cause all notional volumes hedged to exceed 100%
of the Current Production for any period beyond the last day of the second calendar year following the calendar year in which such puts and/or floors are purchased), and (ii) Swap Agreements in respect of interest rates with an Approved
Counterparty, as follows: (A) Swap Agreements effectively converting interest rates from fixed to floating, the notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively
converting interest rates from fixed to floating) do not exceed 50% of the then outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a fixed rate and (B) Swap Agreements effectively converting
interest rates from floating to fixed, the 

  
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notional amounts of which (when aggregated with all other Swap Agreements of the Borrower and its Subsidiaries then in effect effectively converting interest rates from floating to fixed) do not
exceed 75% of the then outstanding principal amount of the Borrower’s Debt for borrowed money which bears interest at a floating rate. In no event shall any Swap Agreement contain any requirement, agreement or covenant for the Borrower or any
Subsidiary to post collateral or margin to secure their obligations under such Swap Agreement or to cover market exposures and in no event shall (y) any Swap Agreements in respect of interest rates have a term beyond 48 months from the date of
execution thereof or (z) any Swap Agreements in respect of commodities have a term beyond 60 months from the date of execution thereof. 

Section 3. Borrowing Base Redetermination. For the period from and including the Sixth Amendment Effective Date (as defined below) to but
excluding the next Redetermination Date, the amount of the Borrowing Base shall be $500,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Section 8.13(c) or
Section 9.12(d). For the avoidance of doubt, the redetermination herein shall constitute the April 1, 2012 Scheduled Redetermination and the next Scheduled Redetermination shall be the October 1, 2012 Scheduled Redetermination.

 Section 4. Assignments, New Lenders and Reallocation of Commitments and Loans. The Lenders have agreed among themselves, in
consultation with the Borrower, to reallocate their respective Maximum Credit Amounts and Commitments and to, among other things, allow Citibank, N.A. and Royal Bank of Canada to become parties to the Credit Agreement as Lenders, (the “New
Lenders”) by acquiring an interest in the total Maximum Credit Amounts and Commitments. The Administrative Agent and the Borrower hereby consent to such reallocation and the New Lenders’ acquisition of an interest in the Maximum Credit
Amounts and Commitments. On the Sixth Amendment Effective Date and after giving effect to such reallocations, (a) the Maximum Credit Amounts and Commitment of each Lender shall be as set forth on Annex I of this Sixth Amendment, which Annex I
supersedes and replaces Annex I to the Credit Agreement (and Annex I to the Credit Agreement is hereby amended and restated in its entirety to read as set forth on Annex I attached hereto) and (b) each New Lender is hereby added as a Lender
with the Maximum Credit Amount specified for it in the attached Annex I, and the New Lenders shall become parties to the Credit Agreement as “Lenders” and have all of the rights and obligations of a Lender under the Credit Agreement, as
amended by this Sixth Amendment, and the other Loan Documents. With respect to such reallocation, the New Lenders shall be deemed to have acquired the Maximum Credit Amount and Commitment allocated to them from each of the other Lenders pursuant to
the terms of the Assignment and Assumption Agreement attached as Exhibit E to the Credit Agreement as if the New Lenders and the other Lenders had executed an Assignment and Assumption Agreement with respect to such allocation. If, on the Sixth
Amendment Effective Date, any Eurodollar Loans have been funded, then the Borrower shall be obligated to pay any breakage fees or costs that are payable pursuant to Section 5.02, in connection with the reallocation of such outstanding
Eurodollar Loans to effectuate the provisions of this paragraph. 

  
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 Section 5. Conditions Precedent. This Sixth Amendment shall become effective as of the date when each
of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Sixth Amendment Effective Date”): 
 5.1 The Administrative Agent shall have received from each Lender, each Guarantor and the Borrower, counterparts (in such number as may be requested by the Administrative Agent) of this Sixth Amendment
signed on behalf of such Person. 
 5.2 The Administrative Agent shall have received all fees and other amounts due and payable
on or prior to the date hereof. 
 5.3 No Default shall have occurred and be continuing as of the date hereof, after giving
effect to the terms of this Sixth Amendment. 
 5.4 The Administrative Agent shall have received the most recently prepared
Reserve Report for the Oil and Gas Properties of the Borrower and its Subsidiaries, dated January 1, 2012. 
 5.5 The
Administrative Agent shall have received title information as the Administrative Agent may reasonably require satisfactory to the Administrative Agent setting forth the status of title to at least 80% of the total value of the Oil and Gas Properties
evaluated in the Reserve Report delivered pursuant to Section 5.4 of this Sixth Amendment. 
 5.6 The Administrative Agent
shall have received from the Borrower a duly executed and notarized amendment and/or supplement to each mortgage which shall be reasonably satisfactory to the Administrative Agent in form and substance. In connection therewith, the Administrative
Agent shall be reasonably satisfied that the Security Instruments create first priority, perfected Liens (subject only to Excepted Liens identified in clauses (a) to (d) and (f) of the definition thereof, but subject to the provisos
at the end of such definition) on at least 80% of the total value of the Oil and Gas Properties evaluated in the Reserve Report delivered pursuant to Section 5.4 of this Sixth Amendment. 

5.7 The Administrative Agent shall have received duly executed Notes payable to the order of each Lender requesting a new Note in a
principal amount equal to its Maximum Credit Amount (after giving effect to this Sixth Amendment) dated as of the effectiveness of this Sixth Amendment. 
 5.8 The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require. 

The Administrative Agent is hereby authorized and directed to declare this Sixth Amendment to be effective when it has received documents
confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 5 or the waiver of such conditions as permitted hereby. Such declaration shall be final, conclusive and binding
upon all parties to the Credit Agreement for all purposes. 
 Section 6. Miscellaneous. 

  
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 6.1 Confirmation. The provisions of the Credit Agreement, as amended by this Sixth
Amendment, shall remain in full force and effect following the effectiveness of this Sixth Amendment. 
 6.2 No Waiver.
Neither the execution by the Administrative Agent or the Lenders of this Sixth Amendment, nor any other act or omission by the Administrative Agent or the Lenders or their officers in connection herewith, shall be deemed a waiver by the
Administrative Agent or the Lenders of any Defaults or Events of Default which may exist, which may have occurred prior to the date of the effectiveness of this Sixth Amendment or which may occur in the future under the Credit Agreement and/or the
other Loan Documents. Similarly, nothing contained in this Sixth Amendment shall directly or indirectly in any way whatsoever either: (a) impair, prejudice or otherwise adversely affect the Administrative Agent’s or the Lenders’ right
at any time to exercise any right, privilege or remedy in connection with the Loan Documents with respect to any Default or Event of Default, (b) except as expressly provided herein, amend or alter any provision of the Credit Agreement, the
other Loan Documents, or any other contract or instrument, or (c) constitute any course of dealing or other basis for altering any obligation of the Borrower or any right, privilege or remedy of the Administrative Agent or the Lenders under the
Credit Agreement, the other Loan Documents, or any other contract or instrument. Each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or any other word or words of
similar import shall mean and be a reference to the Credit Agreement as amended hereby, and each reference in any other Loan Document to the Credit Agreement or any word or words of similar import shall be and mean a reference to the Credit
Agreement as amended hereby. 
 6.3 Ratification and Affirmation; Representations and Warranties. Each Obligor hereby
(a) acknowledges the terms of this Sixth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is
a party remains in full force and effect as expressly amended hereby and (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Sixth Amendment: (i) all of the representations and
warranties contained in each Loan Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall
continue to be true and correct as of such specified earlier date, (ii) no Default or Event of Default has occurred and is continuing and (iii) no event or events have occurred which individually or in the aggregate could reasonably be
expected to have a Material Adverse Effect. 
 6.4 Counterparts. This Sixth Amendment may be executed by one or more of
the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Sixth Amendment by facsimile or email transmission shall be effective
as delivery of a manually executed counterpart hereof. 
 6.5 No Oral Agreement. This Sixth Amendment, the Credit
Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties.
There are no subsequent oral agreements between the parties. 

  
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 6.6 GOVERNING LAW. THIS SIXTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
 6.7 Payment of Expenses. In accordance with Section 12.03 of
the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Sixth Amendment, any other documents prepared in connection
herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent. 
 6.8 Severability. Any provision of this Sixth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

6.9 Successors and Assigns. This Sixth Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns. 
 [SIGNATURES BEGIN NEXT PAGE] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be duly executed
as of the date first written above. 
  

							
	BORROWER:	 		 	OASIS PETROLEUM NORTH AMERICA LLC
				
		 		 	By:	 	/s/ Michael H. Lou
		 		 		 	Michael H. Lou
		 		 		 	Executive Vice President and Chief
		 		 		 	Financial Officer

  

							
	GUARANTORS:	 		 	OASIS PETROLEUM LLC
		 		 	OASIS PETROLEUM INC.
		 		 	OASIS PETROLEUM MARKETING LLC
		 		 	OASIS WELL SERVICES LLC
				
		 		 	By:	 	/s/ Michael H. Lou
		 		 		 	Michael H. Lou
		 		 		 	Executive Vice President and Chief
		 		 		 	Financial Officer

  
 Signature Page to Sixth
Amendment to Amended and Restated Credit Agreement 
 (Oasis Petroleum North America LLC) 

  

					
	ADMINISTRATIVE AGENT AND LENDER:	 	BNP PARIBAS
			
		 	By:	 	/s/ Edward Pak
		 		 	Edward Pak
		 		 	Director
			
		 	By:	 	/s/ Greg Smothers
		 		 	Greg Smothers
		 		 	Director
		 		 	
	LENDERS:	 	JPMORGAN CHASE BANK, N.A.
			
		 	By:	 	/s/ Michael A. Kamauf
		 	Name:	 	Michael A. Kamauf
		 	Title:	 	Authorized Officer
		 		 	
		 	UBS LOAN FINANCE, LLC
			
		 	By:	 	/s/ Mary E. Evans
		 	Name:	 	Mary E. Evans
		 	Title:	 	Associate Director
			
		 	By:	 	/s/ Irja R. Otsa
		 	Name:	 	Irja R. Otsa
		 	Title:	 	Associate Director
		 		 	
		 	WELLS FARGO BANK, N.A.
			
		 	By:	 	/s/ Todd Fogle
		 	Name:	 	Todd Fogle
		 	Title:	 	Assistant Vice President
		 		 	
		 	THE ROYAL BANK OF SCOTLAND PLC
			
		 	By:	 	/s/ James L. Moyes
		 	Name:	 	James L. Moyes
		 	Title:	 	Authorized Signatory

  
 Signature Page to Sixth
Amendment to Amended and Restated Credit Agreement 
 (Oasis Petroleum North America LLC) 

 
			
	AMEGY BANK, NATIONAL
	ASSOCATION
		
	By:	 	/s/ C. Wakeford Thompson
	Name:	 	C. Wakeford Thompson
	Title:	 	Vice President

  

			
	COMPASS BANK
		
	By:	 	/s/ Kathleen J. Bowen
	Name:	 	Kathleen J. Bowen
	Title:	 	Senior Vice President

  

			
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Justin M. Alexander
	Name:	 	Justin M. Alexander
	Title:	 	Vice President

  

			
	CITIBANK, N.A.
		
	By:	 	/s/ John F. Miller
	Name:	 	John F. Miller
	Title:	 	Attorney-in-Fact

  

			
	ROYAL BANK OF CANADA
		
	By:	 	/s/ Mark Lumpkin, Jr.
	Name:	 	Mark Lumpkin, Jr.
	Title:	 	Authorized Signatory

  
 Signature Page to Sixth
Amendment to Amended and Restated Credit Agreement 
 (Oasis Petroleum North America LLC) 

 ANNEX I 
 LIST OF MAXIMUM CREDIT AMOUNTS 
 Aggregate Maximum Credit Amounts 

 

					
	 Name of Lender
	  	 Applicable Percentage
	  	 Maximum

Credit Amount

	 BNP Paribas
	  	  10.80%	  	$          108,000,000.00
	 JPMorgan Chase Bank, N.A.
	  	  12.00%	  	$          120,000,000.00
	 UBS Loan Finance LLC
	  	  12.00%	  	$          120,000,000.00
	 Wells Fargo Bank, N.A.
	  	  10.00%	  	$          100,000,000.00
	 The Royal Bank of Scotland plc
	  	  12.00%	  	$          120,000,000.00
	 Amegy Bank, National Association
	  	   6.40%	  	$            64,000,000.00
	 Compass Bank
	  	   6.40%	  	$            64,000,000.00
	 U.S. Bank National Association
	  	   6.40%	  	$            64,000,000.00
	 Citibank, N.A.
	  	 12.00%	  	$          120,000,000.00
	 Royal Bank of Canada
	  	  12.00%	  	$          120,000,000.00
	 TOTAL
	  	100.00%	  	$       1,000,000,000.00Settlement Agreement

 Exhibit 10.1 
 AGREEMENT 
 This Agreement (this “Agreement”) is
made and entered into as of April 4, 2012, by and among DSP Group, Inc. (the “Company”) and the entities and natural persons listed on Exhibit A hereto and their respective Affiliates (collectively,
“Starboard”) (each of the Company and Starboard, a “Party” to this Agreement, and collectively, the “Parties”). 
 RECITALS 
 WHEREAS, the Company and Starboard have engaged in various discussions
and communications concerning the Company’s business, financial performance and strategic plans; 
 WHEREAS, Starboard is
deemed to beneficially own shares of Common Stock of the Company (the “Common Stock”) totaling, in the aggregate, 2,222,079 shares, or approximately 9.8%, of the Common Stock issued and outstanding on the date hereof; and

 WHEREAS the Company and the members of Starboard have determined to come to an agreement with respect to the election of
members of the Company’s board of directors (the “Board”) at the 2012 annual meeting of stockholders of the Company (the “2012 Annual Meeting”), certain matters related to the 2012 Annual Meeting and certain
other matters, as provided in this Agreement. 
 NOW, THEREFORE, in consideration of the foregoing premises and the mutual
covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto, intending to be legally bound hereby, agree as follows: 

1. Board Matters; Board Appointments; 2012 Annual Meeting; Committees. 

(a) Prior to the mailing of its definitive proxy statement for the 2012 Annual Meeting, the Company agrees that the Board shall take all
necessary actions to (i) increase the size of the Board from eight (8) to nine (9) members, effective as of the 2012 Annual Meeting, (ii) nominate Kenneth H. Traub and Tom Lacey (together, the “Starboard
Nominees”) for election to the Board as Class III directors at the 2012 Annual Meeting and (iii) cause Dr. Reuven Regev, a Class III director, to stand for re-election at the 2012 Annual Meeting for a term to expire at the 2013
annual meeting of stockholders. 
 (b) Prior to the execution of this Agreement, the Nomination and Corporate Governance
Committee of the Board (the “Nomination Committee”) shall have reviewed and reasonably approved, in accordance with the Company’s Corporate Governance Guidelines and the charter of the Nomination Committee, the qualifications
of the Starboard Nominees to serve as independent members of the Board and recommended to the Board that the Board nominate for election at the 2012 Annual Meeting the Starboard Nominees, in accordance with Section 1(a). 

(c) Starboard hereby agrees not to (i) nominate any person for election at the 2012 Annual Meeting, (ii) submit any proposal
for consideration at, or bring any other business 

 
before, the 2012 Annual Meeting, directly or indirectly, or (iii) initiate, encourage or participate in any “withhold” or similar campaign with respect to the 2012 Annual Meeting,
directly or indirectly. Starboard shall not publicly or privately encourage or support any other stockholder to take any of the actions described in this Section 1(c). 
 (d) The Company agrees that it will recommend, support and solicit proxies for the election of the Starboard Nominees to be elected at the 2012 Annual Meeting in the same manner as for the Company’s
other nominees standing for election to the Board at the 2012 Annual Meeting. 
 (e) The Company agrees to use its reasonable
best efforts to hold the 2012 Annual Meeting no later than May 31, 2012. 
 (f) At the first meeting of the Board following
the execution of this Agreement, but in any event no later than April 13, 2012, the Starboard Nominees shall be appointed as observers to the Board (the “Board Observers”) until the 2012 Annual Meeting. Each of the Board
Observers will (1) receive copies of all notices and written information furnished to the full Board at substantially the same time they are so furnished, and (2) be permitted to be present at all meetings of the full Board (whether by
phone or in person). Notwithstanding the foregoing, (i) the Company shall be entitled to withhold any information and exclude the Board Observers from any meeting, or any portion thereof, as is reasonably determined by the Company to be
necessary to protect the Company’s attorney-client privilege, or as otherwise may be appropriate until the 2012 Starboard Nominees are elected to the Board, and (ii) the Board Observers shall execute a confidentiality agreement in form and
substance reasonably acceptable to the Company with respect to the information and discussions to which the Board Observers will have access. The rights of the Board Observers shall terminate upon the date of the 2012 Annual Meeting. 

(g) The Company agrees that prior to the 2013 annual meeting of stockholders of the Company (the “2013 Annual Meeting”),
if either or both of the Starboard Nominees is unable to serve as a director, resigns as a director or is removed as a director, and at such time Starboard beneficially owns in the aggregate at least the lesser of 3.0% of the Company’s then
outstanding Common Stock and 681,954 shares of Common Stock (subject to adjustment for stock splits, reclassifications, combinations and similar adjustments), Starboard shall have the ability to recommend a substitute person(s), who will be
independent of Starboard and who will also qualify as “independent” pursuant to the listing standards of NASDAQ Stock Market, to fill the resulting vacancy or vacancies, subject to the approval of the Nomination Committee after
consideration in good faith and exercising its fiduciary duties, which approval shall not be unreasonably withheld (any such replacement nominee(s) appointed in accordance with the provisions of this Section 1(g) shall be referred to
individually as the “Replacement Director”). In the event the Nomination Committee does not accept a substitute person recommended by Starboard, Starboard will have the right to recommend additional substitute person(s),
subject to the terms of this Section 1(g), for consideration by the Nomination Committee. Upon the acceptance of a replacement director nominee by the Nomination Committee, the Board will appoint such replacement director to the Board no later
than five (5) business days after the Nomination Committee’s recommendation of such replacement director. 

  
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 (h) The parties hereto acknowledge that the only matters that may be presented by the
Company for consideration at the 2012 Annual Meeting are (i) the election of directors, (ii) the approval of the Company’s 2012 Equity Incentive Plan, (iii) the amendment and restatement of the Company’s 1993 Employee Stock
Purchase Plan to increase the number of Company shares reserved thereunder by 500,000, (iv) the ratification of the Company’s independent registered public accounting firm, and (v) the approval, on a non-binding basis, the
compensation arrangements of the Company’s named executive officers. 
 (i) At the 2012 Annual Meeting, Starboard agrees to
appear in person or by proxy at the 2012 Annual Meeting and vote all shares of Common Stock of the Company beneficially owned by Starboard at the meeting in favor of the proposals listed in clauses (i) through (v) of Section 1(h) above,
unless, as relates solely to the proposals listed in clauses (ii) through (v), Institutional Shareholder Services Inc. (“ISS”) recommends otherwise, in which case Starboard shall be permitted to vote all shares of Common Stock
of the Company beneficially owned by Starboard in accordance with the ISS recommendation if, after discussing the proposals with the Company in good faith, Starboard subsequently decides to follow the ISS recommendation rather than the Board’s
recommendation. 
 (j) Starboard agrees that it will cause its Affiliates and Associates to comply with the terms of this
Agreement. As used in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meanings set forth in Rule 12b-2 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended, or the rules or regulations promulgated thereunder (the “Exchange Act”) and shall include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of any person or
entity referred to in this Agreement. 
 (k) The Company agrees that by the end of the third quarter of 2012 the Company shall
use its reasonable best efforts to report its financial results, including revenue and profitability, across at least two (2) of the Company’s business segments, including Home and Enterprise. 

2. Standstill Provisions. 
 (a) Starboard agrees that, from the date of this Agreement until the earlier of (i) the date that is (ten) 10 business days prior to the deadline for the submission of stockholder nominations for the
2013 Annual Meeting pursuant to the Company’s bylaws or (ii) the date that is one-hundred (100) days prior to the first anniversary of the 2012 Annual Meeting (the “Standstill Period”), neither it nor any of its
Affiliates or Associates under its control or direction will, and it will cause each of its Affiliates and Associates under its control not to, directly or indirectly, in any manner: 

(i) solicit, or encourage or in any way engage in any solicitation of, any proxies or consents or become a “participant” in a
“solicitation” as such terms are defined in Regulation 14A under the Exchange Act of proxies or consents (including, without limitation, any solicitation of consents that improperly seeks to call a special meeting of stockholders), in each
case, with respect to securities of the Company; 

  
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 (ii) advise, encourage, support or influence any person with respect to the voting or
disposition of any securities of the Company at any annual or special meeting of stockholders, except in accordance with Section 1, or seek to do so; 
 (iii) form, join or in any way participate in any “group” (within the meaning of Section 13(d)(3) of the Exchange Act) with respect to the Common Stock (other than a “group” that
includes all or some of the persons identified on Exhibit A, but does not include any other entities or persons not identified on Exhibit A as of the date hereof); provided, however, that nothing herein shall limit the ability of an
Affiliate of Starboard to join the “group” following the execution of this Agreement, so long as any such Affiliate agrees to be bound by the terms and conditions of this Agreement; 

(iv) deposit any Common Stock in any voting trust or subject any Common Stock to any arrangement or agreement with respect to the voting
of any Common Stock, other than any such voting trust, arrangement or agreement solely among the members of Starboard and otherwise in accordance with this Agreement; 
 (v) seek or encourage any person to submit nominations in furtherance of a “contested solicitation” for the election or removal of directors with respect to the Company; provided, however, that
nothing herein will limit the ability of Starboard to recommend a Replacement Director(s) in accordance with Section 1(h); 
 (vi) (A) make any proposal for consideration by stockholders at any annual or special meeting of stockholders of the Company or (B) make any offer or proposal (with or without conditions, publicly or
otherwise) with respect to a merger, acquisition, disposition, consolidation, recapitalization, restructuring, liquidation, dissolution, or other business combination or extraordinary transaction involving the Company or any subsidiary or Affiliate
of the Company (each, a “Business Proposal”); provided, however, that nothing herein will limit the ability of (1) any member of Starboard, or its respective Affiliates and Associates to vote its shares of Common Stock on any matter
submitted to a vote of the stockholders of the Company relating to a Business Proposal, and (2) Starboard to publicly announce its opposition, including the reasons therefor, to any Board-approved publicly announced Business Proposal; provided
that other than the limited right to publicly announce its opposition and the reasons therefore, Starboard will not and will cause each of its Affiliates and Associates under its control not to, directly or indirectly, take any other action relating
to the Board-approved publicly announced Business Proposal otherwise prohibited by this Section 2; 
 (vii) seek, alone or
in concert with others, representation on the Board, except as specifically contemplated in Section 1; 
 (viii) otherwise
act, alone or in concert with others, to seek to control or influence the management, Board of Directors or policies of the Company or any of its subsidiaries, affiliates or divisions; 

(ix) enter into any discussions, negotiations, arrangements or understandings with any third party with respect to the matters set forth
in this Section 2; or 

  
 4 

 (x) take any action which could cause or require the Company or any Affiliate of the
Company to make a public announcement regarding any of the foregoing, publicly seek or request permission to do any of the foregoing, publicly make any request to amend, waive or terminate any provision of this Section 2 (including, without
limitation, this Section 2(a)(x), or make or seek permission to make any public announcement with respect to any of the foregoing. 
 (b) The Company agrees that it shall provide written notice to Starboard at least one-hundred (100) days prior to the date that the Company sets for holding its 2013 Annual Meeting. 

3. Representations and Warranties of the Company. 
 The Company represents and warrants to Starboard that (a) the Company has the corporate power and authority to execute this Agreement and to bind it thereto, (b) this Agreement has been duly and
validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles and (c) the execution, delivery and performance of this
Agreement by the Company does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event
which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of,
any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound. 
 4. Representations and Warranties of Starboard. 
 Starboard represents and
warrants to the Company that (a) the authorized signatory of Starboard set forth on the signature page hereto has the power and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this
Agreement and to bind it thereto, (b) this Agreement has been duly authorized, executed and delivered by Starboard, and is a valid and binding obligation of Starboard, enforceable against Starboard in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of creditors and subject to general equity principles, (c) the execution
of this Agreement, the consummation of any of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof, will not conflict with, or result in a breach or violation of the
organizational documents of Starboard as currently in effect, (d) the execution, delivery and performance of this Agreement by Starboard does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or
decree applicable to Starboard, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result
in the loss of a material benefit under, or give any right 

  
 5 

 
of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such member is a party or by which
it is bound, and (e) as of the date of this Agreement, (i) Starboard is deemed to beneficially own in the aggregate 2,222,079 shares of Common Stock and (ii) Starboard does not currently have, and does not currently have any right to
acquire, any interest in any other securities of the Company or any Other Equity Rights. 
 5. Press Release. 

Promptly following the execution of this Agreement, the Company and Starboard shall jointly issue a mutually agreeable press release (the
“Mutual Press Release”) announcing certain terms of this Agreement, in the form attached hereto as Exhibit B. Prior to the issuance of the Mutual Press Release, neither the Company nor Starboard shall issue any press release
or public announcement regarding this Agreement without the prior written consent of the other Party. During the Standstill Period, neither the Company nor Starboard or the Starboard Nominees shall make any public announcement or statement that is
inconsistent with or contrary to the statements made in the Mutual Press Release, except as required by law or the rules of any stock exchange or with the prior written consent of the other Party; provided, however, that nothing herein will limit
Starboard’s limited ability to make public announcements of the type described in Section 2(a)(vi)(B) above. 
 6.
Specific Performance. 
 Each of the members of Starboard, on the one hand, and the Company, on the other hand,
acknowledges and agrees that irreparable injury to the other party hereto would occur in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached and that such injury
would not be adequately compensable by the remedies available at law (including the payment of money damages). It is accordingly agreed that Starboard (or any of the entities and natural persons listed on Exhibit A), on the one hand, and the
Company, on the other hand (the “Moving Party”), shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other party hereto will not take action, directly or
indirectly, in opposition to the Moving Party seeking such relief on the grounds that any other remedy or relief is available at law or in equity. 
 7. Expenses. 
 The Company shall reimburse Starboard for its reasonable,
documented out-of-pocket fees and expenses (including legal expenses) incurred in connection with the matters related to the 2012 Annual Meeting, the filing of a Schedule 13D in connection with this Agreement and the negotiation and execution
of this Agreement, provided that such reimbursement shall not exceed $40,000 in the aggregate. 
 8. Severability.

 If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and 

  
 6 

 
shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be the intention of the Parties that the Parties would have executed the remaining terms, provisions,
covenants and restrictions without including any of such which may be hereafter declared invalid, void or unenforceable. In addition, the Parties agree to use their best efforts to agree upon and substitute a valid and enforceable term, provision,
covenant or restriction for any of such that is held invalid, void or enforceable by a court of competent jurisdiction. 
 9.
Notices. 
 Any notices, consents, determinations, waivers or other communications required or permitted to be given under
the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); or (iii) one business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses
and facsimile numbers for such communications shall be: 
  

			
	If to the Company:	 	 DSP Group, Inc.
 c/o DSP
Group, Ltd.
 5 Shenkar Street
 Herzelia
46120
 Israel
 Attention: Chief
Executive Officer
 Facsimile: 972-9-954-1234
 Telephone: 972-9-952-9696

		
	with a copy (which shall not constitute notice) to:	 	 Morrison & Foerster LLP
 425 Market Street
 San Francisco, California 94105

Attention: Bruce Mann, Esq. and Jackie Liu, Esq.

Facsimile: (415) 268-7522
 Telephone: (415)
268-7000

		
	If to Starboard or any member thereof:	 	 Starboard Value LP
 599
Lexington Avenue, 19th Floor
 New York, New York 10022
 Attention: Jeffrey C. Smith
 Telephone: (212) 845-7955

Facsimile: (212) 845-7988

  
 7 

			
	With a copy (which shall not constitute notice) to:	 	 Olshan Grundman Frome Rosenzweig & Wolosky LLP
 Park Avenue Tower
 65 East 55th Street
 New York, New York 10022
 Attention: Andrew Freedman, Esq.

Telephone: (212) 451-2250
 Facsimile: (212)
451-2222

 10. Applicable Law. 
 This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without reference to the conflict of laws principles thereof. Each of the Parties hereto
irrevocably agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations
arising hereunder brought by the other party hereto or its successors or assigns, shall be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State of Delaware (or, if the Delaware
Court of Chancery declines to accept jurisdiction over a particular matter, any state or federal court within the State of Delaware). Each of the Parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself and
in respect of its property, generally and unconditionally, to the personal jurisdiction of the aforesaid courts and agrees that it will not bring any action relating to this Agreement in any court other than the aforesaid courts. Each of the Parties
hereto hereby irrevocably waives, and agrees not to assert in any action or proceeding with respect to this Agreement, (i) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, (ii) any
claim that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts (whether through service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (iii) to the fullest extent permitted by applicable legal requirements, any claim that (A) the suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue of such
suit, action or proceeding is improper or (C) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. 
 11. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective when counterparts have been
signed by each of the Parties and delivered to the other Party (including by means of electronic delivery or facsimile). 
 12.
Entire Agreement; Amendment and Waiver; Successors and Assigns; Third Party Beneficiaries. 
 This Agreement contains the
entire understanding of the Parties hereto with respect to its subject matter. There are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties other than those expressly set forth herein.
No modifications of this Agreement can be made except in writing signed by an authorized representative of each the Company and Starboard. No failure on the part of any party to 

  
 8 

 
exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such party
preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement shall
be binding upon, inure to the benefit of, and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns. No party shall assign this Agreement or any rights or obligations
hereunder without, with respect to any member of Starboard, the prior written consent of the Company, and with respect to the Company, the prior written consent of Starboard. This Agreement is solely for the benefit of the Parties hereto and is not
enforceable by any other persons. 
 13. Mutual Non-Disparagement. 

Each of the Parties covenants and agrees that, during the Standstill Period, neither it nor any of its respective agents, subsidiaries,
affiliates, successors, assigns, officers, key employees or directors and with respect to Starboard its Starboard Nominees and Replacement Directors, shall in any way disparage, call into disrepute, or otherwise defame or slander the other Parties
or such other Parties’ subsidiaries, affiliates, successors, assigns, officers (including any current officer of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), directors
(including any current director of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the execution of this Agreement), employees, stockholders, agents, attorneys or representatives, or any of their products or
services, in any manner that would damage the business or reputation of such other Parties, their products or services or their subsidiaries, affiliates, successors, assigns, officers (or former officers), directors (or former directors), employees,
stockholders, agents, attorneys or representatives. For purposes of this Section, the Starboard Nominees shall not be deemed to be agents, affiliates, officers, key employees or directors of the Company or Starboard and no actions taken by any agent
or other representative of a Party in any capacity other than as a representative of such Party shall be covered by this Agreement. 
 [The remainder of this page intentionally left blank] 

  
 9 

 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized signatories of the Parties as of the date hereof. 
 DSP GROUP, INC. 

 

			
	By:	 	 /s/ Ofer Elyakim

	Name: Ofer Elyakim
	Title: Chief Executive Officer

 STARBOARD: 
  

							
	STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD	 	STARBOARD VALUE GP LLC
	By:	 	Starboard Value LP,	 	By:	 	Starboard Principal Co LP,
		 	its investment manager	 		 	its member
		
	STARBOARD VALUE AND OPPORTUNITY S LLC	 	STARBOARD PRINCIPAL CO LP
	By:	 	Starboard Value LP,	 	By:	 	Starboard Principal Co GP LLC,
		 	its manager	 		 	its general partner
		
	STARBOARD VALUE LP	 	STARBOARD PRINCIPAL CO GP LLC
	By:	 	Starboard Value GP LLC,	 		 	
		 	its general partner	 		 	

  

			
	By:	 	 /s/ Jeffrey C. Smith

	Name: Jeffrey C. Smith
	Title:   Authorized Signatory

 [Signature Page to Agreement] 

 EXHIBIT A 
 Starboard 
 STARBOARD VALUE AND OPPORTUNITY MASTER FUND LTD 

STARBOARD VALUE AND OPPORTUNITY S LLC 
 STARBOARD VALUE LP 
 STARBOARD VALUE GP LLC 

STARBOARD PRINCIPAL CO LP 
 STARBOARD PRINCIPAL CO GP LLC 
 JEFFREY C. SMITH 

MARK MITCHELL 

PETER A. FELD 

 EXHIBIT B 
 PRESS RELEASE

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