Document:

Form of Warrant to the Loan and Security Agreement for up to 100,000 shares

 Exhibit 4.2 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE
SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAW OR,
IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION. 

WARRANT TO PURCHASE SHARES 
  

			
	 Company:

Number of Shares:

Class of Shares:

Warrant Price:
	  	 GigOptix, Inc., a Delaware corporation

100,000
 Common Stock

The exercise price per Share shall be the price per Share equal to the closing market price on the stock exchange on which the shares are listed on the
date such Shares Vest in accordance with Section 1.1 of this Warrant; provided further, that if there is no closing selling price for the Shares on the applicable vesting date, then the exercise price shall be the closing selling price on the last
preceding date for which such quotation exists.

	 Issue Date:

Expiration Date:

Credit Facility:
	  	 Original Issue Date: April 23, 2010;

The 7th
anniversary after the Original Issue Date
 This Warrant is issued in connection
with the Loan and Security Agreement among Silicon Valley Bank, Company and ChipX, Incorporated, a Delaware corporation dated as of April 23, 2010 (the “LSA”).

THIS WARRANT CERTIFIES THAT, for good and valuable consideration, SILICON VALLEY BANK (Silicon Valley Bank, together with any registered
holder from time to time of this Warrant or any holder of the shares issuable or issued upon exercise of this Warrant, “Holder”) is entitled to purchase the number of fully paid and nonassessable shares of the class of securities (the
“Shares”) of the Company at the Warrant Price, all as set forth above and as adjusted pursuant to Article 2 of this Warrant, subject to the provisions and upon the terms and conditions set forth in this Warrant. 

ARTICLE 1. EXERCISE. 

1.1 Vesting. As of the Issue Date none of the Shares will be deemed “Vested” and all of the Shares shall be deemed
“Unvested.” This Warrant shall not be exercisable for any Shares unless and until the number of Shares being exercised become Vested as provided herein. The Unvested Shares will become “Vested” on the following schedule:

  

 1 

					
	 Date
	  	Monthly Number
of Shares Vested	  	Cumulative Number
of Shares Vested
			
	 September 1, 2010
	  	15,000	  	15,000
			
	 October 1, 2010
	  	15,000	  	30,000
			
	 November 1, 2010
	  	15,000	  	45,000
			
	 December 1, 2010
	  	15,000	  	60,000
			
	 January 1, 2011
	  	15,000	  	75,000
			
	 February 1, 2011
	  	15,000	  	90,000
			
	 March 1, 2011
	  	10,000	  	100,000

 As of March 1,
2011, all of the Shares will have become Vested; provided however, that no additional Shares shall Vest beyond those Shares already Vested, and those remaining Unvested Shares shall lapse, as of a date set for Vesting per the foregoing schedule upon
the earlier of: (i) the month immediately preceding the Vesting date, in the event the Company closes on an Equity Event (as defined in the LSA); or (ii) the date the Company has reported three (3) consecutive months of positive
EBITDA (as defined in the LSA). 
 1.2 Method of Exercise. Holder may exercise this Warrant by delivering a duly executed
Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in Article 1.3, Holder shall also deliver to the Company a check, wire transfer
(to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Shares being purchased. 

1.3 Conversion Right. In lieu of exercising this Warrant as specified in Article 1.2, Holder may from time to time convert this
Warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other securities otherwise issuable upon exercise of this Warrant minus the aggregate Warrant Price of such Shares
by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to Article 1.4. 

1.4 Fair Market Value. If the Company’s Shares are traded in a public market, the fair market value of each Share shall be
the closing price of a Share reported for the business day immediately before Holder delivers its Notice of Exercise to the Company (or in the instance where the Warrant is exercised immediately prior to the effectiveness of the Company’s
registered public offering, the “price to public” per share price specified in the final prospectus relating to such offering). If the Company’s securities are not traded in a public market, the Board of Directors of the Company shall
determine fair market value in its reasonable good faith judgment. 
  

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 1.5 Delivery of Certificate and New Warrant. Promptly after Holder exercises or
converts this Warrant and, if applicable, the Company receives payment of the aggregate Warrant Price, the Company shall deliver to Holder certificates for the Shares acquired and, if this Warrant has not been fully exercised or converted and has
not expired, a new Warrant representing the Shares not so acquired. 
 1.6 Replacement of Warrants. On receipt of
evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the
Company or, in the case of mutilation on surrender and cancellation of this Warrant, the Company shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor. 

1.7 Treatment of Warrant Upon Acquisition of Company. 

1.7.1 “Acquisition”. For the purpose of this Warrant, “Acquisition” means any sale, license, or other
disposition of all or substantially all of the assets of the Company, or any reorganization, consolidation, or merger of the Company where the holders of the Company’s securities before the transaction beneficially own less than 50% of the
outstanding voting securities of the surviving entity after the transaction. 
 1.7.2 Treatment of Warrant at
Acquisition. 
 A) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that is not an asset sale and
in which the sole consideration is cash, either (a) Holder shall exercise its conversion or purchase right under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if
Holder elects not to exercise the Warrant, this Warrant will expire upon the consummation of such Acquisition. The Company shall provide Holder with written notice of its request relating to the foregoing (together with such reasonable information
as Holder may request in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition. 

B) Upon the written request of the Company, Holder agrees that, in the event of an Acquisition that is an “arms length” sale of all or
substantially all of the Company’s assets (and only its assets) to a third party that is not an Affiliate (as defined below) of the Company (a “True Asset Sale”), either (a) Holder shall exercise its conversion or purchase right
under this Warrant and such exercise will be deemed effective immediately prior to the consummation of such Acquisition or (b) if Holder elects not to exercise the Warrant, this Warrant will continue until the Expiration Date if the Company
continues as a going concern following the closing of any such True Asset Sale. The Company shall provide Holder with written notice of its request relating to the foregoing (together with such reasonable information as Holder may request in
connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than ten (10) days prior to the closing of the proposed Acquisition. 

C) Upon the closing of any Acquisition other than those particularly described in subsections (A) and (B) above, the successor entity shall
assume the obligations of this 
  

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 Warrant, and this Warrant shall be exercisable for the same securities, cash, and property as would be
payable for the Shares issuable upon exercise of the unexercised portion of this Warrant as if such Shares were outstanding on the record date for the Acquisition and subsequent closing. The Warrant Price and/or number of Shares shall be adjusted
accordingly. 
 As used herein “Affiliate” shall mean any person or entity that owns or controls directly or indirectly ten
(10) percent or more of the voting securities of the Company, any person or entity that controls or is controlled by or is under common control with such persons or entities, and each of such person’s or entity’s officers, directors,
joint venturers or partners, as applicable. 
 ARTICLE 2. ADJUSTMENTS TO THE SHARES. 

2.1 Dividends, Splits, Etc. If the Company declares or pays a dividend on the Shares payable in securities, then upon exercise of
this Warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend occurred. If the
Company subdivides the Shares by reclassification or otherwise into a greater number of shares or takes any other action which increase the amount of securities into which the Shares are convertible, the number of shares purchasable hereunder shall
be proportionately increased and the Warrant Price shall be proportionately decreased. If the outstanding shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be
proportionately increased and the number of Shares shall be proportionately decreased. 
 2.2 Reclassification, Exchange,
Combinations or Substitution. Upon any reclassification, exchange, substitution, or other event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this Warrant, Holder shall be entitled
to receive, upon exercise or conversion of this Warrant, the number and kind of securities and property that Holder would have received for the Shares if this Warrant had been exercised immediately before such reclassification, exchange,
substitution, or other event. Such an event shall include any automatic conversion of the outstanding or issuable securities of the Company of the same class or series as the Shares upon the closing of a registered public offering of the
Company’s securities. The Company or its successor shall promptly issue to Holder an amendment to this Warrant setting forth the number and kind of such new securities or other property issuable upon exercise or conversion of this Warrant as a
result of such reclassification, exchange, substitution or other event that results in a change of the number and/or class of securities issuable upon exercise or conversion of this Warrant. The amendment to this Warrant shall provide for
adjustments which shall be as nearly equivalent as may be practicable to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon
exercise of the new Warrant. The provisions of this Article 2.2 shall similarly apply to successive reclassifications, exchanges, substitutions, or other events. 

2.3 Adjustments for Diluting Issuances. The Warrant Price and the number of Shares issuable upon exercise of this Warrant shall be
subject to adjustment, from time to time in the manner set forth in the Company’s Certificate of Incorporation as if the Shares were issued and outstanding on and as of the date of any 

 

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such required adjustment. The provisions set forth for the Shares in the Company’s Certificate of Incorporation relating to the above in effect as of the Issue Date may not be amended,
modified or waived, without the prior written consent of Holder unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as such amendment, modification or waiver affects the rights associated
with all other shares of the same series and class as the Shares granted to Holder. 
 2.4 No Impairment. The Company
shall not, by amendment of its Certificate of Incorporation, or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out of all the provisions of this Article 2 and in taking all such action as may be necessary or
appropriate to protect Holder’s rights under this Article against impairment. 
 2.5 Fractional Shares. No
fractional Shares shall be issuable upon exercise or conversion of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the
Warrant, the Company shall eliminate such fractional share interest by paying Holder the amount computed by multiplying the fractional interest by the fair market value of a full Share. 

2.6 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company shall promptly notify Holder in writing,
and, at the Company’s expense, promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon
written request, furnish Holder a certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 

ARTICLE 3. REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

3.1 Representations and Warranties. The Company represents and warrants to Holder as follows: 

(a) All Shares which may be issued upon the exercise of the purchase right represented by this Warrant, and all securities, if any,
issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable
federal and state securities laws. 
 (b) As of the Issue Date the Company had authorized 50,000,000 shares of its common stock
and it had issued 9,349,339 shares of its common stock, and it had not issued any shares of preferred stock. 
 3.2 Notice of
Certain Events. If the Company proposes at any time (a) to declare any dividend or distribution upon any of its securities, whether in cash, property, shares, or other securities and whether or not a regular cash dividend; (b) to offer
for sale any shares of the Company’s securities, other than (i) pursuant to the 
  

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Company’s stock option or other compensatory plans, (ii) in connection with commercial credit arrangements or equipment financings, or (iii) in connection with strategic
transactions for purposes other than capital raising; (c) to effect any reclassification or recapitalization of any of its securities; (d) to merge or consolidate with or into any other corporation, or sell, lease, license, or convey all
or substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer holders of registration rights the opportunity to participate in an underwritten public offering of the Company’s securities for cash, then, in
connection with each such event, the Company shall give Holder: (1) at least 10 days prior written notice of the date on which (I) a record will be taken for such dividend or distribution (and specifying the date on which the holders of
securities will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in (a) and (b) above, or (II) it intends to make an offer for the sale of securities,; (2) in the case of the
matters referred to in (c) and (d) above at least 10 days prior written notice of the date when the same will take place (and specifying the date on which the holders of shares will be entitled to exchange their shares for securities or
other property deliverable upon the occurrence of such event); and (3) in the case of the matter referred to in (e) above, the same notice as is given to the holders of such registration rights. Company will also provide information
requested by Holder reasonably necessary to enable Holder to comply with Holder’s accounting or reporting requirements. 

3.3 Registration Under Securities Act of 1933, as amended. The Company agrees that the Shares or, if the Shares are convertible
into other securities of the Company, such securities, shall have “piggyback” registration rights. The “piggyback” registration rights provided to Holder shall be at least as broad and favorable to Holder as the registration
rights of any other holder of securities of the same series and class as the Shares which holds “piggyback” registration rights. The registration rights of Holder may not be amended, modified, impaired or waived without the prior written
consent of Holder unless such amendment, modification or waiver affects the rights associated with the Shares in the same manner as such amendment, modification, or waiver affects the rights associated with all other shares of the same series and
class as the Shares granted to Holder. Notwithstanding the above (i) the Company shall not include the Shares underlying this warrant in any of the three Forms S-1 filed with the SEC on February 5, 2010, including any amendments to such
Forms S-1, unless (and only to the extent) the Shares shall have vested; and (ii) in accordance with the rules and guidance of the SEC, Holder’s registration rights shall not be exercised until such time as (and only to the extent) the
Shares shall have vested. 
 3.4 No Shareholder Rights. Except as provided in this Warrant, Holder will not have any
rights as a shareholder of the Company until the exercise of this Warrant. 
 ARTICLE 4. REPRESENTATIONS, WARRANTIES OF HOLDER. Holder
represents and warrants to the Company as follows: 
 4.1 Purchase for Own Account. This Warrant and the securities to be
acquired upon exercise of this Warrant by Holder will be acquired for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Act. Holder also represents
that Holder has not been formed for the specific purpose of acquiring this Warrant or the Shares. 
  

 6 

 4.2 Disclosure of Information. Holder has received or has had full access to all the
information it considers necessary or appropriate to make an informed investment decision with respect to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions and receive answers from
the Company regarding the terms and conditions of the offering of this Warrant and its underlying securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort
or expense) necessary to verify any information furnished to Holder or to which Holder has access. 
 4.3 Investment
Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can
bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment
in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the
character, business acumen and financial circumstances of such persons. 
 4.4 Accredited Investor Status. Holder is an
“accredited investor” within the meaning of Regulation D promulgated under the Act. 
 4.5 The Act. Holder
understands that this Warrant and the Shares issuable upon exercise or conversion hereof have not been registered under the Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature
of Holder’s investment intent as expressed herein. Holder understands that this Warrant and the Shares issued upon any exercise or conversion hereof must be held indefinitely unless subsequently registered under the Act and qualified under
applicable state securities laws, or unless exemption from such registration and qualification are otherwise available. 
 ARTICLE 5.
MISCELLANEOUS. 
 5.1 Term. This Warrant is exercisable in whole or in part at any time and from time to time in
accordance with the Vesting schedule set forth in Section 1.1 above, on or before the Expiration Date. 
 5.2
Legends. This Warrant and the Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form: 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR THE SECURITIES LAWS OF ANY STATE AND, EXCEPT AND PURSUANT TO THE PROVISIONS OF ARTICLE 5 BELOW, MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SAID ACT AND APPLICABLE
STATE SECURITIES LAW OR, IN THE OPINION OF LEGAL COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER OF 
  

 7 

 
THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION IS EXEMPT FROM REGISTRATION. 

5.3 Compliance with Securities Laws on Transfer. This Warrant and the Shares issuable upon exercise of this Warrant (and the
securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and the transferee
(including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, as reasonably requested by the Company). The Company shall not require Silicon Valley Bank
(“Bank”) to provide an opinion of counsel if the transfer is to Bank’s parent company, SVB Financial Group (formerly Silicon Valley Bancshares), or any other affiliate of Bank. Additionally, the Company shall also not require an
opinion of counsel if there is no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144(d) and (e) in reasonable detail, the selling broker represents
that it has complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. 
 5.4
Transfer Procedure. After receipt by Bank of the executed Warrant, Bank will transfer all of this Warrant to SVB Financial Group by execution of an Assignment substantially in the form of Appendix 2. Subject to the provisions of Article 5.3
and upon providing the Company with written notice, SVB Financial Group and any subsequent Holder may transfer all or part of this Warrant or the Shares issuable upon exercise of this Warrant (or the Shares issuable directly or indirectly, upon
conversion of the Shares, if any) to any transferee, provided, however, in connection with any such transfer, SVB Financial Group or any subsequent Holder will give the Company notice of the portion of the Warrant being transferred with the name,
address and taxpayer identification number of the transferee and Holder will surrender this Warrant to the Company for reissuance to the transferee(s) (and Holder if applicable). The Company may refuse to transfer this Warrant or the Shares to any
person who directly competes with the Company, unless, in either case, the shares of the Company are publicly traded. 
 5.5
Notices. All notices and other communications from the Company to Holder, or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as
may have been furnished to the Company or Holder, as the case may (or on the first business day after transmission by facsimile) be, in writing by the Company or such Holder from time to time. Effective upon receipt of the fully executed Warrant and
the initial transfer described in Article 5.4 above, all notices to Holder shall be addressed as follows until the Company receives notice of a change of address in connection with a transfer or otherwise: 

SVB Financial Group 

Attn: Treasury Department 

3003 Tasman Drive, HA 200 

Santa Clara, CA 95054 

Telephone: 408-654-7400 
  

 8 

 Facsimile: 408-496-2405 

Notice to the Company shall be addressed as follows until Holder receives notice of a change in address: 

GigOptix, Inc. 

2300 Geng Road, Suite 250 

Palo Alto, CA 94303 

Attn: Ron Shelton, Chief Financial Officer 

Telephone: (650) 424-1937 

Fax: (650) 424-1938 

5.6 Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 
 5.7
Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such
dispute, including reasonable attorneys’ fees. 
 5.8 Automatic Conversion upon Expiration. In the event that, upon
the Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.4 above is greater than the Warrant Price in effect on such date, then this Warrant shall
automatically be deemed on and as of such date to be converted pursuant to Section 1.3 above as to all Shares (or such other securities) for which it shall not previously have been exercised or converted, and the Company shall promptly deliver
a certificate representing the Shares (or such other securities) issued upon such conversion to Holder. 
 5.9
Counterparts. This Warrant may be executed in counterparts, all of which together shall constitute one and the same agreement. 

5.10 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California,
without giving effect to its principles regarding conflicts of law. 
 [Signature page follows.] 

 

 9 

							
	“COMPANY”	 		 	
				
	GigOptix, Inc.	 		 	Date:	 	April 23, 2010

  

			
		
	By:	 	/s/ Ron Shelton
		
	Name:	 	Ron Shelton
		 	(Print)
		
	Title:	 	CFO
	
	 “HOLDER”
  

SILICON VALLEY BANK

  

			
		
	By:	 	/s/ Rick Tu
		
	Name:	 	Rick Tu
		 	(Print)
		
	Title:	 	Market Manager / Deal Team Leader (DTL)

  

 10 

 APPENDIX 1 

NOTICE OF EXERCISE 

1. Holder elects to purchase
                     shares of GigOptix, LLC pursuant to the terms of the attached Warrant, and tenders payment of the purchase price of the shares
in full. 
 [or] 

1. Holder elects to convert the attached Warrant into Shares/cash [strike one] in the manner specified in the Warrant. This conversion is
exercised for                              of the Shares covered by the Warrant. 

[Strike paragraph that does not apply.] 

2. Please issue a certificate or certificates representing the shares in the name specified below: 

 

	
	
	 
	 Holders Name

	
	 
	
	 
	 (Address)

3. By its execution below and for the benefit of the Company, Holder hereby restates each of the representations and warranties in
Article 4 of the Warrant as the date hereof. 
  

					
	HOLDER:	 	
		
	 	 	
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 
		
	 (Date):
	 	 

  

 11 

 APPENDIX 2 

ASSIGNMENT 

For value received, Silicon Valley Bank hereby sells, assigns and transfers unto 

 

	 	Name:	SVB Financial Group 

	 	Address:	3003 Tasman Drive (HA-200) 

Santa Clara, CA 95054 
  

	 	Tax ID:	91-1962278 

 that certain
Warrant to Purchase Shares issued by GigOptix, Inc (the “Company”), on
                            , 2008 (the “Warrant”) together with all rights, title and interest
therein. 
  

			
	SILICON VALLEY BANK
		
	By:	 	 
		
	Name:	 	 
		
	Title:	 	 

  

			
		
	Date:	 	 

 By its execution below, and for the benefit of
the Company, SVB Financial Group makes each of the representations and warranties set forth in Article 4 of the Warrant and agrees to all other provisions of the Warrant as of the date hereof. 

 

			
	SVB FINANCIAL GROUP
		
	By:	 	 
		
	Name:	 	 
		
	Title:Loan and Security Agreement, dated April 23, 2010

 Exhibit 10.1 

 

 

 LOAN AND SECURITY AGREEMENT 

This LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of April 23, 2010 (the “Effective
Date”), between SILICON VALLEY BANK, a California chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 (FAX
(408)                    ) (“Bank”) on the one hand, and GIGOPTIX, INC., a Delaware corporation, and CHIPX,
INCORPORATED, a Delaware corporation (GigOptix, Inc., together with ChipX, Incorporated, shall collectively be referred to as (“Borrower”) on the other hand. GigOptix, Inc. and ChipX, Incorporated, are co-borrowers hereunder for
all purposes. Borrower has its offices at 2300 Geng Road #250, Palo Alto, CA 94303 (FAX (    )                     ). This
Agreement 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. The term “financial statements” includes the notes and schedules. The terms “including” and “includes” always mean “including (or includes) without limitation,” in this or any Loan Document. Capitalized
terms 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 meanings 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 unpaid principal amount of all Advances
hereunder with all interest, fees and finance charges due thereon as and when due in accordance with this Agreement. 

2.1.1 Financing of Accounts. 

(a) Availability. Subject to the terms of this Agreement, Borrower may request that Bank finance specific Eligible Accounts. Bank
may, in its sole discretion in each instance, finance such Eligible Accounts by extending credit to Borrower in an amount equal to the result of the Advance Rate multiplied by the face amount of the Eligible Account (the “Advance”). Bank
may, in its sole discretion, change the percentage of the Advance Rate for a particular Eligible Account on a case-by-case basis. When Bank makes an Advance, the Eligible Account becomes a “Financed Receivable.” 

(b) Maximum Advances. The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility
Amount, and the aggregate amount of all outstanding Advances at any time may not exceed Three Million Dollars ($3,000,000). 

(c) Borrowing Procedure. Borrower will deliver an Invoice Transmittal for each Eligible Account it offers. Bank may rely on
information set forth in or provided with the Invoice Transmittal. 
 (d) Credit Quality; Confirmations. Bank may, at
its option, conduct a credit check of the Account Debtor for each Account requested by Borrower for financing hereunder in order to approve any such Account Debtor’s credit before agreeing to finance such Account. Bank may also verify directly
with the respective Account Debtors the validity, amount and other matters relating to the Accounts (including confirmations of Borrower’s representations in Section 5.3) by means of mail, telephone or otherwise, either in the name of
Borrower or Bank from time to time in its sole discretion. 
 (e) Accounts Notification/Collection. Bank may notify any
Person owing Borrower money of Bank’s security interest in the funds and verify and/or collect the amount of the Account. 
  

 1 

 (f) Maturity. Unless otherwise terminated pursuant to subsection 2.1(g) or
(h) below, this Agreement shall terminate and all Obligations outstanding hereunder shall be immediately due and payable on the Revolving Line Maturity Date. 

(g) Early Termination. This Agreement may be terminated prior to the Revolving Line Maturity Date as follows: (i) by
Borrower, effective three Business Days after written notice of termination is given to Bank; or (ii) by Bank at any time after the occurrence of an Event of Default, without notice, effective immediately. If this Agreement is terminated
(A) by Bank in accordance with clause (ii) in the foregoing sentence, or (B) by Borrower for any reason, Borrower shall pay to Bank a termination fee in an amount equal to one percent (1%) of the maximum commitment amount for
Advances, which amount equals $30,000 (the “Early Termination Fee”). The Early Termination Fee shall be due and payable on the effective date of such termination and thereafter shall bear interest at a rate equal to the highest rate
applicable to any of the Obligations. Notwithstanding the foregoing, Bank agrees to waive the Early Termination Fee if Bank agrees to refinance and re-document this Agreement under another division or affiliate of Bank (in its sole and exclusive
discretion) prior to the Revolving Line Maturity Date. 
 (h) Bank’s Discretion. Notwithstanding anything to the
contrary contained herein, Bank is not obligated to finance any Eligible Accounts. Bank and Borrower hereby acknowledge and agree that Bank’s agreement to finance Eligible Accounts hereunder is discretionary in each instance. Accordingly, there
shall not be any recourse to Bank, nor liability of Bank, on account of any delay in Bank’s making of, and/or any decline by Bank to make, any loan or advance requested hereunder. In addition, this Agreement may be terminated by Borrower or
Bank at any time. 
 2.1.2 Term Loan. 

(a) Availability. 

(i) Bank shall make a term loan available to Borrower in an amount up to Four Hundred Thousand Dollars ($400,000) on the Effective Date,
subject to the satisfaction of the terms and conditions of this Agreement. The Term Loan is for the purpose of refinancing outstanding obligations of Borrower to Agility Capital, LLC. 

(ii) Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan set forth in this Agreement, to
obtain the Term Loan advance, Borrower shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form in the form of Exhibit B hereto executed by a Responsible Officer or his or her designee. Bank shall credit
the Term Loan advance to the Designated Deposit Account. There shall be one Term Loan advance. 
 (b)
Repayment. The Term Loan Advance shall immediately amortize and be payable in eighteen (18) equal payments of principal and interest beginning on May 1, 2010, and continuing on the first
(1st) day of each month thereafter. Notwithstanding
the foregoing, all unpaid principal and interest on the Term Loan Advance shall be due on the Term Loan Maturity Date. 
 (c)
Prepayment. 
 (i) Voluntary Prepayment. At Borrower’s option, so long as an Event of Default
has not occurred and is not continuing, Borrower shall have the option to prepay all, but not less than all, of the Term Loan then outstanding under this Agreement, provided Borrower (a) provides written notice to Bank of its election to
exercise to prepay the Term Loan at least thirty (30) days prior to such prepayment, and (b) pays, on the date of the prepayment (i) all accrued and unpaid interest with respect to the Term Loan through the date the prepayment is
made; (ii) all unpaid principal with respect to the Term Loan; and (iii) all other sums, if any, that shall have become due and payable with respect to this Agreement. 

(ii) Involuntary Prepayment. If the Term Loan has become due and payable according to the terms hereof because of the
occurrence and continuance of an Event of Default, 
  

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Borrower shall immediately pay to Bank all sums owing thereon. This shall include, at Bank’s option, all principal outstanding, all accrued and unpaid interest, any Make Whole Premium, all
attorneys’ and professional fees and costs, court costs and expenses, and all other sums, if any, that shall have become due and payable with respect to this Agreement. 

(d) Interest on the Term Loan. The principal amount outstanding under the Term Loan shall accrue interest at a rate per
annum equal to nine percent (9.00%) fixed, which interest shall be payable monthly. Immediately upon the occurrence and during the continuance of an Event of Default, Obligations including those under the Term Loan shall bear interest at the
Default Rate. Interest shall be computed on the basis of a 360-day year for the actual number of days elapsed. Bank may debit any of Borrower’s deposit accounts for principal and interest payments or any other amounts Borrower owes Bank when
due. These debits shall not constitute a set-off. 
 2.2 Collections, Finance Charges, Remittances and Fees. The
Obligations shall be subject to the following fees and Finance Charges. Unpaid fees and Finance Charges may, in Bank’s discretion, accrued interest and fees as described in Section 9.2 hereof. 

2.2.1 Collections. Collections will be credited to the Financed Receivable Balance for such Financed Receivable, but if
there is an Event of Default, Bank may apply Collections to the Obligations in any order it chooses. If Bank receives a payment for both a Financed Receivable and a non-Financed Receivable, the funds will first be applied to the Financed Receivable
and, if there is no Event of Default then existing, the excess will be remitted to Borrower, subject to Section 2.2.9. 

2.2.2 Facility Fee. A fully earned, non-refundable facility fee of Twenty Thousand Dollars ($20,000) is due upon execution
of this Agreement. 
 2.2.3 Anniversary Fee. A fully earned fee in the amount of Fifteen Thousand Dollars
($15,000) is due one year from the Effective Date of this Agreement. 
 2.2.4 Finance Charges. In computing
Finance Charges on the Obligations under this Agreement, all Collections received by Bank shall be deemed applied by Bank on account of the Obligations three (3) Business Days after receipt of the Collections. Borrower will pay a finance charge
(the “Finance Charge”) on each Financed Receivable which is equal to the Applicable Rate divided by 360 multiplied by the number of days each such Financed Receivable is outstanding multiplied by the outstanding
Financed Receivable Balance. The Finance Charge is payable on the date when the Advance made based on such Financed Receivable is payable in accordance with Section 2.3 hereof. After an Event of Default, the Applicable Rate will increase an
additional five percent (5.0%) per annum effective immediately upon the occurrence of such Event of Default. 
 2.2.5
Collateral Handling Fee. Borrower will pay to Bank a collateral handling fee as set forth herein (the “Collateral Handling Fee.”). 

(a) The Collateral Handling Fee shall be equal to 0.30% per month of the Financed Receivable Balance for each Financed Receivable
outstanding, based upon a 360 day year (“Standard CH Fee”); however, at such time that Borrower reports (in its financial reports provided to Bank and aggregated as necessary pursuant to Section 6.2 below) a positive EBITDA for
two (2) consecutive fiscal quarters, the Collateral Handling Fee shall be reduced, subject to the terms herein, and made equal to 0.20% per month of the Financed Receivable Balance for each Financed Receivable outstanding, based upon a 360
day year (the “Reduced CH Fee”). Notwithstanding the foregoing, the Reduced CH Fee shall be terminated and the Standard CH Fee shall thereafter be in effect if Borrower, after qualifying for the Reduced CH Fee, thereafter reports
EBITDA in an amount of less than $1.00 during any fiscal quarter. 
 (b) The fee described in subsection (a) above is
charged on a daily basis and is equal to the effective Collateral Handling Fee divided by 30, multiplied by the number of days each such Financed Receivable is outstanding, multiplied by the outstanding Financed Receivable Balance. The Collateral
Handling Fee is payable on the date when the Advance made based on such Financed Receivable is payable in accordance with Section 2.3 hereof. In computing Collateral Handling Fees under this Agreement, all Collections

  

 3 

 
received by Bank shall be deemed applied by Bank on account of Obligations three (3) Business Days after receipt of the Collections. The Collateral Handling Fee will increase by an
additional 0.50% effective immediately upon an Event of Default. 
 2.2.6 Early Termination Fee. An Early
Termination Fee, if applicable. 
 2.2.7 Make Whole Premium. A Make Whole Premium, if applicable.

 2.2.8 Accounting. After each Reconciliation Period, Bank will provide an accounting of the transactions
for that Reconciliation Period, including the amount of all Financed Receivables, all Collections, Adjustments, Finance Charges, Collateral Handling Fee, and the Facility Fee. If Borrower does not object to the accounting in writing within thirty
(30) days it shall be considered accurate. All Finance Charges and other interest and fees are calculated on the basis of a 360 day year and actual days elapsed. 

2.2.9 Deductions. Bank may deduct fees, Finance Charges, Advances which become due pursuant to Section 2.3, and other
amounts due pursuant to this Agreement from any Advances made or Collections received by Bank. 
 2.2.10 Lockbox; Account
Collection Services. 
 (a) Borrower shall direct each Account Debtor (and each depository institution where proceeds
of Accounts are on deposit) to remit payments with respect to the Accounts to a lockbox account established with Bank or to wire transfer payments to a cash collateral account that Bank controls (collectively, the “Lockbox”). It will be
considered an immediate Event of Default if the Lockbox is not set-up and operational within forty-five (45) days from the date of such direction by Bank. 

(b) Until such Lockbox is established, the proceeds of the Accounts shall be paid by the Account Debtors to an address consented to by
Bank. Upon receipt by Borrower of such proceeds, the Borrower shall immediately transfer and deliver the same to Bank, along with a detailed cash receipts journal. Provided no Event of Default exists or an event that with notice or lapse of time
will be an Event of Default, within three (3) days of receipt of such amounts by Bank, Bank will turn over to Borrower the proceeds of the Accounts other than Collections with respect to Financed Receivables and the amount of Collections in
excess of the amounts for which Bank has made an Advance to Borrower, less any amounts due to Bank, such as the Finance Charge, the Facility Fee, payments due to Bank, other fees and expenses, or otherwise; provided, however, Bank may hold such
excess amount with respect to Financed Receivables as a reserve until the end of the applicable Reconciliation Period if Bank, in its discretion, determines that other Financed Receivable(s) may no longer qualify as an Eligible Account at any time
prior to the end of the subject Reconciliation Period. This Section does not impose any affirmative duty on Bank to perform any act other than as specifically set forth herein. All Accounts and the proceeds thereof are Collateral and if an Event of
Default occurs, Bank may apply the proceeds of such Accounts to the Obligations. 
 2.2.11 Good Faith Deposit.
Borrower has paid to Bank a deposit of Twenty Thousand Dollars ($20,000) (the “Good Faith Deposit”) to initiate Bank’s due diligence review process and to pay Bank Expenses. Any portion of the Good Faith Deposit not utilized to pay
Bank Expenses will be applied to the Facility Fee. 
 2.3 Repayment of Advances; Adjustments. 

2.3.1 Repayment. Borrower will repay each Advance on the earliest of: (a) the date on which payment is received of
the Financed Receivable with respect to which the Advance was made, (b) the date on which the Financed Receivable is no longer an Eligible Account, (c) the date on which any Adjustment is asserted to the Financed Receivable (but only to
the extent of the Adjustment if the Financed Receivable remains otherwise an Eligible Account), (d) the date on which there is a breach of any warranty or representation set forth in Section 5.3, or (e) the Revolving Line Maturity
Date (or any earlier termination). Each payment will also include all 
  

 4 

 
accrued Finance Charges and Collateral Handling Fees with respect to such Advance and all other amounts then due and payable hereunder. 

2.3.2 Repayment on Event of Default. When there is an Event of Default, Borrower will, if Bank demands (or, upon the
occurrence of an Event of Default under Section 8.5, immediately without notice or demand from Bank) repay all of the Advances. The demand may, at Bank’s option, include the Advance for each Financed Receivable then outstanding and all
accrued Finance Charges, the Early Termination Fee, the Collateral Handling Fee, attorneys’ and professional fees, court costs and expenses, and any other Obligations. 

2.3.3 Debit of Accounts. Bank may debit any of Borrower’s deposit accounts for payments or any amounts Borrower owes
Bank hereunder. Bank shall promptly notify Borrower when it debits Borrower’s accounts. These debits shall not constitute a set-off. 

2.3.4 Adjustments. If at any time during the term of this Agreement any Account Debtor asserts an Adjustment or if
Borrower issues a credit memorandum or if any of the representations, warranties or covenants set forth in Section 5.3 are no longer true in all material respects, Borrower will promptly advise Bank. 

2.4 Power of Attorney. Borrower irrevocably appoints Bank and its successors and assigns as attorney-in-fact and authorizes
Bank, regardless of whether there has been an Event of Default, to: (a) sell, assign, transfer, pledge, compromise, or discharge all or any part of the Financed Receivables; (b) demand, collect, sue, and give releases to any Account Debtor
for monies due and compromise, prosecute, or defend any action, claim, case or proceeding about the Financed Receivables, including filing a claim or voting a claim in any bankruptcy case in Bank’s or Borrower’s name, as Bank chooses;
(c) prepare, file and sign Borrower’s name on any notice, claim, assignment, demand, draft, or notice of or satisfaction of lien or mechanics’ lien or similar document; (d) notify all Account Debtors to pay Bank directly;
(e) receive, open, and dispose of mail addressed to Borrower; (f) endorse Borrower’s name on checks or other instruments (to the extent necessary to pay amounts owed pursuant to this Agreement); and (g) execute on Borrower’s
behalf any instruments, documents, financing statements to perfect Bank’s interests in the Financed Receivables and Collateral and do all acts and things necessary or expedient, as determined solely and exclusively by Bank, to protect,
preserve, and otherwise enforce Bank’s rights and remedies under this Agreement, as directed by Bank. 
  

	 	3	CONDITIONS OF LOANS 

3.1 Conditions Precedent to Initial Advance/ Term Loan Advance. Bank’s agreement to make the initial Advance is subject
to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation:

 (a) certificates of the Secretary of Borrower with respect to articles, bylaws, incumbency and resolutions authorizing the
execution and delivery of this Agreement; 
 (b) a Perfection Certificate by Borrower; 

(c) IP Agreements; 

(d) the original Warrants to purchase stock; 

(e) the other Loan Documents to which Borrower is a party; 

(f) evidence satisfactory to Bank in its sole discretion that Borrower’s obligations to Bridge Bank, N.A. will be/ are being repaid
in full with the proceeds of the initial Advance. 
 (g) evidence satisfactory to Bank in its sole discretion that
Borrower’s obligations to Agility Capital, LLC will be/ are being repaid in full with the proceeds of the Term Loan Advance. 
  

 5 

 (h) evidence satisfactory to Bank that the insurance policies required by Section 6.4
hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; 

(i) payment of the fees and Bank Expenses then due and payable; 

(j) Certificate of Borrowers’ Good Standing/Legal Existence (Delaware); 

(k) Certificate of Borrowers’ foreign qualification to conduct business in California or any other states deemed appropriate in
Bank’s reasonable discretion; 
 (l) Guaranties by the Guarantors; 

(m) Security Agreements between Guarantors and Bank with respect to the intellectual property of Guarantors; 

(n) Intentionally omitted. 

(o) Certificates of Guarantors’ Good Standing/Legal Existence in their states of registration; and 

(p) such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate. 

3.2 Conditions Precedent to all Advances. Bank’s agreement to make each Advance, including the initial Advance, is
subject to the following: 
 (a) receipt of the Invoice Transmittal; 

(b) Bank shall have (at its option) conducted the confirmations and verifications as described in Section 2.1.1 (d); and

 (c) each of the representations and warranties in Section 5 shall be true on the date of the Invoice Transmittal and on
the effective date of each Advance and no Event of Default shall have occurred and be continuing, or result from the Advance. Each Advance is Borrower’s representation and warranty on that date that the representations and warranties in
Section 5 remain true. 
  

	 	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 and the performance of each of Borrower’s duties under the Loan Documents, a continuing security interest in, and pledges and assigns to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and
all proceeds and products thereof. Borrower warrants and represents that the security interest granted herein shall be a first priority security interest in the Collateral. 

If the Agreement is terminated, Bank’s lien and security interest in the Collateral shall continue until Borrower fully satisfies
its Obligations. If Borrower shall at any time, acquire a commercial tort claim, Borrower shall promptly notify Bank in a writing signed by Borrower of the brief 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 satisfactory to Bank. 

4.2 Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without
notice to Borrower, with all appropriate jurisdictions in order to perfect or protect 
  

 6 

 
Bank’s interest or rights hereunder, which financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal or
lesser scope, or with greater detail, all in Bank’s discretion. 
  

	 	5	REPRESENTATIONS AND WARRANTIES 

Borrower represents and warrants as follows: 

5.1 Due Organization and Authorization. Borrower and each of its Subsidiaries are duly existing and in good standing as a
Registered Organization in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any jurisdiction in which the conduct of their respective business or ownership of property requires
that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered to Bank a completed Perfection
Certificate signed by Borrower. Borrower represents and warrants to Bank that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof; (b) Borrower is an organization of the
type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none;
(d) 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);
(e) 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 (f) all other
information set forth on the Perfection Certificate pertaining to Borrower and each of its Subsidiaries is accurate and complete (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). 
 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 organizational 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
its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any action by, filing with or Governmental Approval from any Governmental Authority (except such Governmental Approvals which have already been obtained
and are in full force and effect) or (v) 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 have a material adverse effect on Borrower’s business. 
 5.2 Collateral. Borrower has good title, 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. Borrower has no deposit accounts in the United States 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. The accounts are bona fide, existing obligations of the Account Debtors. 
 The Collateral is not in
the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate
or as Borrower has given Bank notice pursuant to Section 7.2. In the event that Borrower, after the date hereof, intends to store or otherwise deliver any portion of the Collateral to a bailee, then Borrower will first receive the written
consent of Bank and such bailee must execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. 

Borrower is the sole owner of its intellectual property, except for non-exclusive licenses granted to its customers in the ordinary
course of business. Each patent is valid and enforceable, and no part of the intellectual property has been judged invalid or unenforceable, in whole or in part, and 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. 

 

 7 

 Except as noted on the Perfection Certificate, Borrower is not a party to, nor is bound by, any material
license or other agreement with respect to which Borrower is licensee that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. Borrower shall
provide written notice to Bank within 30 days of entering or becoming bound by any such license or agreement which is reasonably likely to have a material impact on Borrower’s business or financial condition (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 wavier by, any person whose consent or waiver is necessary for all such licenses or contract rights to be deemed
“Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement (such consent or authorization may include a licensor’s agreement to
a contingent assignment of the license to Bank if Bank determines that is necessary in its good faith judgment), whether now existing or entered into in the future. 

Without prior consent from Bank, Borrower shall not enter into, or become bound by, any such license or agreement which is reasonably
likely to have a material impact on Borrower’s business or financial condition. Borrower shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for all such licenses or
contract rights to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement, whether now existing or entered into in the
future. 
 5.3 Financed Receivables. Borrower represents and warrants for each Financed Receivable: 

(a) Each Financed Receivable is an Eligible Account; 

(b) Borrower has the right to sell, transfer, assign and encumber such Financed Receivable; 

(c) The correct amount is on the Invoice Transmittal and is not disputed; 

(d) Payment is not contingent on any obligation or contract and Borrower has fulfilled all its obligations as of the Invoice Transmittal
date; 
 (e) Each Financed Receivable is based on an actual sale and delivery of goods and/or services rendered, is due to
Borrower, is not past due or in default, has not been previously sold, assigned, transferred, or pledged and is free of any liens, security interests and encumbrances other than Permitted Liens; 

(f) There are no defenses, offsets, counterclaims or agreements for which the Account Debtor may claim any deduction or discount;

 (g) Borrower reasonably believes no Account Debtor is insolvent or subject to any Insolvency Proceedings; 

(h) Borrower has not filed or had filed against it Insolvency Proceedings and does not anticipate any filing; 

(i) Bank has the right to endorse and/ or require Borrower to endorse all payments received on Financed Receivables and all proceeds of
Collateral; and 
 (j) No representation, warranty or other statement of Borrower in any certificate or written statement given
to Bank contains any untrue statement of a material fact or omits to state a material fact necessary to make the statement contained in the certificates or statement not misleading. 

5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible Officers or
legal counsel, threatened by or against Borrower or any Subsidiary in which an adverse decision could reasonably be expected to cause a Material Adverse Change. 
  

 8 

 5.5 No Material Deviation in Financial Statements. All consolidated financial
statements for Borrower and any Subsidiary delivered to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material
deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 

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

5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an
“investment company” under the Investment Company Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has
complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or
any Subsidiary’s properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than
legally. Borrower and each Subsidiary have timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each
Subsidiary 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 its business as currently conducted except where the
failure to obtain or make such consents, declarations, notices or filings would not reasonably be expected to cause a Material Adverse Change. 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. 

No certificate, authorization, permit, consent, approval, order, license, exemption from, or filing or registration or qualification
with, any Governmental Authority or any Requirement of Law is or will be required to authorize, or is otherwise required in connection with Borrower’s performance of its obligations under the Loan Documents and the creation of the Liens
described in and granted by Borrower pursuant to the Loan Documents. 
 5.8 Subsidiaries. Borrower does not own
any stock, partnership interest or other equity securities except for Permitted Investments. 
 5.9 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 representations, warranties, or other statements were made, taken together with all
such written certificates and written statements give to Bank, 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 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). 
  

	 	6	AFFIRMATIVE COVENANTS 

Borrower shall do all of the following: 

6.1 Government Compliance. Maintain its and all its Subsidiaries’ legal existence and good standing in its
jurisdiction 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. Borrower shall comply, and have
each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business. 

6.2 Financial Statements, Reports, Certificates. 

 

 9 

 (a) Deliver to Bank: (i) as soon as available, but no later than thirty (30) days
after the last day of each month, a company prepared, consolidated balance sheet and income statement covering Borrower’s consolidated operations during the month, certified by a Responsible Officer and in a form acceptable to Bank;
(ii) as soon as available, but no later than one hundred eighty (180) days after the last day of Borrower’s fiscal year, commencing with the fiscal year ending December 31, 2009, consolidated financial statements prepared under
GAAP, consistently applied, audited by an independent certified public accounting firm; (iii) within five (5) days of filing, copies of all statements, reports and notices made available to Borrower’s security holders or to any
holders of Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission; (iv) a prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could result in
damages or costs to Borrower or any Subsidiary of One Hundred Thousand Dollars ($100,000.00) or more; (v) prompt notice of any material change in the composition of any copyright, patent, mask work, trademark, or other intellectual property
Collateral, or the registration of any copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark not shown in the IP Agreement, or knowledge of an event that materially adversely affects the value of
the intellectual property Collateral; (vi) an annual forecast for the Borrower for the fiscal year on a consolidated basis, approved by Borrower’s Board of Directors, within 30 days of the beginning of such fiscal year, and
(vii) budgets, sales projections, operating plans or other financial information reasonably requested by Bank. 
 (b)
Within thirty (30) days after the last day of each month, deliver to Bank with the monthly financial statements a Compliance Certificate signed by a Responsible Officer in the form of Exhibit C. 

(c) Allow Bank to audit Borrower’s Collateral, including, but not limited to, Borrower’s Accounts at Borrower’s expense,
upon reasonable notice to Borrower; provided, however, prior to the occurrence of an Event of Default, the fees for Bank’s Initial Audit shall not exceed $6,500 and the cost to Borrower of Bank’s audits shall not exceed, in aggregate,
$12,500 per year. The costs of such audits currently are $850.00 per day plus expenses. Borrower hereby acknowledges that the first such audit (“Initial Audit”) will be conducted within ninety (90) days after the execution of this
Agreement. After the occurrence of an Event of Default, Bank may audit Borrower’s Collateral, including, but not limited to, Borrower’s Accounts at Borrower’s expense, without regard to the cost limitations set forth above, and at
Bank’s sole and exclusive discretion and without notification and authorization from Borrower. 
 (d) Upon Bank’s
request, provide a written report respecting any Financed Receivable, if payment of any Financed Receivable does not occur by its due date and include the reasons for the delay. 

(e) Provide Bank with, as soon as available, but no later than thirty (30) days following each Reconciliation Period, an aged
listing of accounts receivable (domestic accounts) and accounts payable by invoice date, in form acceptable to Bank. 
 (f)
Provide Bank with, as soon as available, but no later than thirty (30) days following each Reconciliation Period, a Deferred Revenue report, in form acceptable to Bank. 

(g) Provide Bank with an annual projection form acceptable to Bank. 

6.3 Taxes. Borrower shall make, and cause each Subsidiary to make, timely payment of all material federal, state, and local
taxes or assessments (other than taxes and assessments which Borrower is contesting in good faith, with adequate reserves maintained in accordance with GAAP) and will deliver to Bank, on demand, appropriate certificates attesting to such payments.

 6.4 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. All property policies shall have a lender’s loss payable endorsement showing Bank as lender loss payee and waive subrogation against Bank, and all liability policies
shall show, or have endorsements showing, Bank as an additional insured. All policies (or the loss payable and additional insured endorsements) shall provide that the insurer must give Bank at least thirty (30) days notice before canceling,
amending, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under 

 

 10 

 any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. If Borrower fails
to obtain insurance as required under this Section 6.4 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 6.4, and take any action under the policies Bank deems prudent. 
 6.5 Accounts. 

(a) To permit Bank to monitor Borrower’s financial performance and condition, Borrower and all of Borrower’s United States
Subsidiaries, including Guarantors, shall maintain their primary operating deposit accounts and securities accounts with Bank and Bank’s affiliates, which accounts shall represent at least 85% of the dollar value of Borrowers’ and such
Subsidiaries’ accounts at all financial institutions. 
 (b) Borrower shall identify to Bank, in writing, any securities
account or other account holding cash, securities or similar instruments opened in the United States by Borrower or its Subsidiaries, including Guarantors, with any institution other than Bank. In addition, for each such account, Borrower or its
Subsidiary shall, at Bank’s request and option, pursuant to an agreement in form and substance acceptable to Bank, cause the depository bank or securities intermediary to agree that such account is the collateral of Bank, and under the control
of Bank, pursuant to the terms hereunder. The provisions of the previous sentence shall not apply to deposit or securities accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of
Borrower’s employees. 
 6.6 Financial Covenants. 

(a) Borrower shall provide to Bank evidence, acceptable to Bank in its reasonable discretion, that Borrower has received commitments
from investors for a new equity investment in Borrower in which Borrower will receive at least Four Million Dollars ($4,000,000), on terms satisfactory to Bank in form and substance. This covenant shall be waived if Borrower’s EBITDA is greater
than zero for the quarter ending July 4, 2010. 
 (b) Borrower shall provide to Bank evidence, acceptable to Bank in its
reasonable discretion, that an Equity Event has occurred not later than August 15, 2010. This covenant shall be waived if Borrower’s EBITDA is greater than zero for the quarter ending July 4, 2010. 

6.7 Further Assurances. Borrower shall execute any further instruments and take further action as Bank reasonably requests
to perfect or continue Bank’s security interest in the Collateral or to effect the purposes of this Agreement. 
  

	 	7	NEGATIVE COVENANTS 

Borrower shall not do any of the following without Bank’s prior written consent. 

7.1 Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively a “Transfer”), or permit
any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment; (c) in connection with Permitted Liens
and Permitted Investments; and (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business. 

7.2 Changes in Business, Ownership, Management or Business Locations. Engage in or permit any of its Subsidiaries to engage
in any business other than the businesses currently engaged in by Borrower or reasonably related thereto, or have a material change in its ownership (other than by the sale of Borrower’s equity securities in a public offering or to venture
capital investors so long as Borrower identifies to Bank the venture capital investors prior to the closing of the investment). Borrower shall not, without at least thirty (30) days prior written notice to Bank: (a) relocate its chief
executive office, or (b) change its jurisdiction of organization, or (c) change its organizational structure or type, or (d) change its legal name, or (e) change any organizational number (if any) assigned by its jurisdiction of
organization. 
  

 11 

 7.3 Mergers or Acquisitions. Without Bank’s prior written consent, which
shall not be withheld unreasonably, 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. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 
 7.4
Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 

7.5 Encumbrance. Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income,
including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein. The Collateral may also be subject to
Permitted Liens. 
 7.6 Distributions; Investments. (a) Directly or indirectly acquire or own any Person, or
make any Investment in any Person, other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment on, or redeem, retire or purchase, any capital stock or other
ownership interest in Borrower. 
 7.7 Transactions with Affiliates. Directly or indirectly enter into or permit
to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an
arm’s length transaction with a non-affiliated Person. 
 7.8 Subordinated Debt. (a) Make or permit any
payment on any Subordinated Debt, except 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. 
 7.9
Compliance. Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or
carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Advance 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 pay any of the Obligations when due; 

8.2 Covenant Default. Borrower fails or neglects to perform any obligation in Section 6 or violates any
covenant in Section 7 or fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant or agreement contained in this Agreement, any Loan Documents, or in any other present or future agreement between
Borrower and Bank; 
 8.3 Material Adverse Change. A Material Adverse Change occurs; 

8.4 Attachment. (a) Any material portion of Borrower’s assets is attached, seized, levied on, or comes
into possession of a trustee or receiver; (b) the service of process seeking to attach, by trustee or similar 
  

 12 

 
process, any funds of Borrower or of any entity under control of Borrower (including a Subsidiary) on deposit with Bank or any Bank Affiliate; (c) Borrower is enjoined, restrained, or
prevented by court order from conducting any part of its business; or (d) a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency, and the same under clauses (a) through (d) 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 Advances shall be made during any ten (10) day cure period; 

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 thirty (30) days (but no Advances 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. If there is a default in any agreement to which Borrower is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an
amount in excess of One Hundred Thousand Dollars ($100,000) or that could result in a Material Adverse Change; 
 8.7
Judgments. A judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Thousand Dollars ($100,000) (not covered by independent third-party insurance as to which liability has
been accepted by the insurance carrier) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Advances will be made prior to the satisfaction or stay of such judgment);

 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 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; or 
 8.9 Subordinated Debt. A default or breach occurs under any agreement between Borrower and any
creditor of Borrower that signed a subordination agreement, intercreditor, or other similar agreement with Bank, or any creditor that has signed subordination agreement with Bank breaches any terms of the subordination agreement. 

 

	 	9	BANK’S RIGHTS AND REMEDIES 

9.1 Rights and Remedies. When an Event of Default occurs and continues Bank may, without notice or demand, do any or all of
the following: 
 (a) Declare all Obligations immediately due and payable (but if an Event of Default described in
Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 
 (b) Stop advancing
money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Bank; 

(c) Settle or adjust disputes and claims directly with Account Debtors for amounts, on terms and in any order that Bank considers
advisable and notify any Person owing Borrower money of Bank’s security interest in such funds and verify the amount of such account. Borrower shall collect all payments in trust for Bank and, if requested by Bank, immediately deliver the
payments to Bank in the form received from the Account Debtor, with proper endorsements for deposit; 
 (d) Make any payments
and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower 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 

 

 13 

 
prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s
rights or remedies; 
 (e) Apply to the Obligations (i) any 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; 
 (f) 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, service marks, 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; 

(g) 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; and 

(h) Exercise all rights and remedies and dispose of the Collateral according to the Code. 

9.2 Bank Expenses; Unpaid Fees. If Borrower fails to obtain insurance called for by Section 6.4 or fails to pay any
premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or by 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 applicable rate, and secured by the Collateral. Bank will make reasonable effort 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. 

9.3 Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices regarding the
safekeeping of Collateral in 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. 

9.4 Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements
are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity. Bank’s exercise of one right or remedy is not an election, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s
delay is not a waiver, election, or acquiescence. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it was given. 

9.5 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. 

 Notices
or demands by either party under or about this Agreement must be in writing and personally delivered or sent by an overnight delivery service, by certified mail postage prepaid return receipt requested, or by fax to the addresses listed at the
beginning of this Agreement. A party may change notice address by written notice to the other party. 
  

 14 

	 	11	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 

California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Santa Clara County, California; 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 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 EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND BANK EACH WAIVES ITS 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 order 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 the 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, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights and benefits under this Agreement, the Loan Documents or any related agreement. 

 

 15 

 12.2 Indemnification. Borrower agrees to indemnify, defend, and hold Bank and
its officers, directors, employees, agents, attorneys or any other Person affiliated with or representing Bank harmless against: (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other
party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or Bank Expenses incurred, or paid by Bank from, following, or arising from transactions between Bank and Borrower (including reasonable
attorneys’ fees and expenses), except for Claims and/or losses caused by Bank’s gross negligence or willful misconduct. 

12.3 Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement. 

12.4 Severability of Provision. Each provision of this Agreement is severable from every other provision in determining the
enforceability of any provision. 
 12.5 Amendments in Writing; Integration. All amendments to this Agreement must
be in writing signed by both Bank and Borrower. This Agreement and 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 this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

12.6 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate
counterparts, each of which, when executed and delivered, are an original, and all taken together, constitute one Agreement. 

12.7 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this
Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied. 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. 

12.8 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; (b) to prospective transferees or purchasers of any interest in the Advances (provided, however, Bank
shall use commercially reasonable efforts to obtain such 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 in connection with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (i) is in
the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from
disclosing the information. 
 12.9 Attorneys’ Fees, Costs and Expenses. In any action or proceeding between
Borrower and Bank arising out of or related to the Loan Documents, the prevailing party will be entitled to recover its reasonable attorneys’ fees and other reasonable costs and expenses incurred, in addition to any other relief to which it may
be entitled. 
  

	 	13	DEFINITIONS 

13.1 Definitions. In this Agreement: 

“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 as defined in the Code and shall include, without limitation, any person liable on any Financed Receivable, such as, a guarantor of the Financed Receivable and any issuer of a letter of credit or banker’s acceptance. 

 

 16 

 “Adjustments” are all discounts, allowances, returns, disputes,
counterclaims, offsets, defenses, rights of recoupment, rights of return, warranty claims, or short payments, asserted by or on behalf of any Account Debtor for any Financed Receivable. 

“Advance” is defined in Section 2.1.1 (a). 

“Advance Rate” is eighty percent (80%), net of any Deferred Revenue and other offsets related to each specific Account
Debtor, or such other percentage as Bank establishes under Section 2.1.1 (a). 
 “Affiliate” is a Person
that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that
is a limited liability company, that Person’s managers and members. 
 “Applicable Rate” is a per annum
rate equal to the Prime Rate plus one and 50/100 percent (1.50%); (“Standard Applicable Rate”); however, at such time that Borrower reports (in its financial reports provided to Bank pursuant to Section 6.2 hereof and
aggregated as necessary) a positive EBITDA for two (2) consecutive fiscal quarters, the Applicable Rate shall be reduced and made equal to the Prime Rate plus one percent (1.00%) (the “Reduced Applicable Rate”).
Notwithstanding the foregoing, the Reduced Applicable Rate shall be terminated and the Standard Applicable Rate shall thereafter be in effect if Borrower, after qualifying for the Reduced Applicable Rate, thereafter reports EBITDA in an amount of
less than $0.00 during any fiscal quarter, to be measured as of the last day of such fiscal quarter. 
 “Bank
Expenses” are all audit fees and expenses and reasonable costs or expenses (including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or
Insolvency Proceedings). 
 “Borrower’s Books” are all Borrower’s books and records including
ledgers, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information. 

“Business Day” is any day that is not a Saturday, Sunday or a day on which Bank is closed. 

“Code” is the Uniform Commercial Code as adopted in California, as amended and as may be amended and in effect from time
to time. 
 “Collateral” is any and all properties, rights and assets of Borrower granted by Borrower to Bank
or arising under the Code, now, or in the future, in which Borrower obtains an interest, or the power to transfer rights, as described on Exhibit A. 

“Collateral Handling Fee” is defined in Section 2.2.5. 

“Collections” are all funds received by Bank from or on behalf of an Account Debtor for Financed Receivables.

 “Compliance Certificate” is a certificate by Borrower in the form attached as Exhibit C.

 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that
Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that
Person is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar
agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary
course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably

  

 17 

 
anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 

“Current Liabilities” is all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate
amount of Borrower’s Total Liabilities which mature within one (1) year. 
 “Deferred Revenue” is all
amounts received or invoiced, as appropriate, in advance of performance under contracts and not yet recognized as revenue. 

“Default Rate” is that rate of interest that is five percent (5.00%) per annum above the rate of interest in effect
with respect to any Obligations immediately prior to the occurrence of such Event of Default. 
 “Early Termination
Fee” is defined in Section 2.1.1(g) . 
 “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 Date” is the date of this Agreement. 

“Eligible Accounts” are billed Accounts in the ordinary course of Borrower’s business that meet all Borrower’s
representations and warranties in Section 5.3, have been, at the option of Bank, confirmed in accordance with Section 2.1.1(d), and are due and owing from Account Debtors deemed creditworthy by Bank in its sole discretion. Without limiting
the fact that the determination of which Accounts are eligible hereunder is a matter of Bank discretion in each instance, Eligible Accounts shall not include the following Accounts (which listing may be amended or changed in Bank’s discretion
with notice to Borrower): 
 (a) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date;

 (b) Accounts for which the Account Debtor does not have its principal place of business in the United States
(“Foreign Receivables”), unless agreed to by Bank in writing, in its sole discretion, on a case-by-case basis; the following accounts shall be deemed agreed to by Bank, to the extent any of such Accounts would be deemed Foreign
Receivables: Cisco Systems, National Instruments, Huawei, ZTE, Opnext, Oclaro, Alcatel-Lucent, Coreoptics, Barco Silex, Fujitsu, Mitsubishi, Sumitomo, and Sony. 

(c) Accounts for which the Account Debtor is a federal, state or local government entity or any department, agency, or instrumentality
thereof except for Accounts of the United States if the payee has assigned its payment rights to Bank and the assignment has been acknowledged under the Assignment of Claims Act of 1940 (31 U.S.C. 3727), excepting Accounts of the United States in an
aggregate amount of up to $500,000. 
 (d) Accounts for which Borrower owes the Account Debtor, but only up to the amount owed
(sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts); 
 (e) Accounts subject
to offset, including offset based on Deferred Revenue; 
 (f) Contract receivables or invoices based on milestone billings under
a contract or agreement; 
 (g) Accounts for demonstration or promotional equipment, or in which goods are consigned, sales
guaranteed, sale or return, sale on approval, bill and hold, or other terms if the Account Debtor’s payment may be conditional; 

(h) Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent; 

(i) Accounts in which the Account Debtor disputes liability or makes any claim and Bank believes there may be a basis for dispute (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; and 
  

 18 

 (j) Accounts for which Bank reasonably determines collection to be doubtful or any Accounts
which are unacceptable to Bank for any reason. 
 “Equity Event” is a new equity investment in Borrower in
which Borrower actually receives at least Four Million Dollars ($4,000,000), on terms satisfactory to Bank in form and substance. 

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

“Events of Default” are set forth in Article 8. 

“Facility Amount” is Three Million Seven Hundred Fifty Thousand Dollars ($3,750,000). 

“Facility Fee” is defined in Section 2.2.2. 

“Finance Charges” is defined in Section 2.2.4. 

“Financed Receivables” are all those Eligible Accounts, including their proceeds which Bank finances and makes an
Advance, as set forth in Section 2.1.1. A Financed Receivable stops being a Financed Receivable (but remains Collateral) when the Advance made for the Financed Receivable has been fully paid. 

“Financed Receivable Balance” is the total outstanding gross face amount, at any time, of any Financed Receivable.

 “GAAP” is generally accepted accounting principles. 

“Good Faith Deposit” is defined in Section 2.2.11. 

“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
Lumera Corporation and GigOptix, LLC. 
 “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. 
 “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. 
 “Investment” is any beneficial ownership of (including stock, partnership interest or other
securities) any Person, or any loan, advance or capital contribution to any Person. 
 “Invoice Transmittal”
shows Eligible Accounts which Bank may finance and, for each such Account, includes the Account Debtor’s, name, address, invoice amount, invoice date and invoice number. 

“IP Agreements” are those certain Intellectual Property Security Agreements executed and delivered by GigOptix, Inc. to
Bank and ChipX, Incorporated to Bank. 
 “Lockbox” is defined in Section 2.2.10. 

“Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 

 

 19 

 “Loan Documents” are, collectively, this Agreement, any note, or notes or
guaranties executed by Borrower, and any other present or future agreement between Borrower and Bank (or for the benefit of Bank) in connection with this Agreement, all as amended, extended or restated. 

“Make Whole Premium” is an amount equal to (i) all remaining principal and accrued interest thereon that would
otherwise be due after such prepayment date, and (ii) all other sums, including Bank Expenses, if any, that have become due and payable hereunder with respect to the Term Loan. 

“Material Adverse Change” is: (i) A material impairment in the perfection or priority of Bank’s security
interest in the Collateral or in the value of such Collateral; (ii) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (iii) a material impairment of the prospect of repayment of
any portion of the Obligations. 
 “Obligations” are all advances, liabilities, obligations, covenants and
duties owing, arising, due or payable by Borrower to Bank now or later under this Agreement or any other document, instrument or agreement, account (including those acquired by assignment) primary or secondary, such as all Advances, Finance Charges,
Facility Fee, Collateral Handling Fee, interest, fees, expenses, professional fees and attorneys’ fees, or other amounts now or hereafter owing by Borrower to Bank. 

“Perfection Certificate” is a certain representations and warranties letter agreement previously executed and delivered
by Borrower to Bank in connection with this Agreement. 
 “Permitted Indebtedness” is: 

(a) Borrower’s indebtedness to Bank under this Agreement or the Loan Documents; 

(b) Subordinated Debt; 

(c) Indebtedness to trade creditors incurred in the ordinary course of business; and 

(d) Indebtedness secured by Permitted Liens. 

“Permitted Investments” are: (i) marketable direct obligations issued or unconditionally guaranteed by the
United States or its agency or any state maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard & Poor’s Corporation or
Moody’s Investors Service, Inc., (iii) Bank’s certificates of deposit issued maturing no more than 1 year after issue, (iv) any other investments administered through Bank.  

“Permitted Liens” are: 

(a) Liens arising under this Agreement or other Loan Documents; 

(b) Liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good faith and
for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s security interests; 

(c) Purchase money Liens securing no more than $50,000 in the aggregate amount outstanding (i) on equipment acquired or held by
Borrower incurred for financing the acquisition of the equipment, or (ii) existing on equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the equipment; 

(d) Leases or subleases and non-exclusive licenses or sublicenses granted in the ordinary course of Borrower’s business, if
the leases, subleases, licenses and sublicenses permit granting Bank a security interest; 
  

 20 

 (e) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by
Liens described in (a) through (d), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase.  

“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. 

“Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate.

 “Reconciliation Period” is each calendar month. 

“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 each of the Chief Executive
Officer, President, Chief Financial Officer and Controller of Borrower. 
 “Revolving Line Maturity Date” is 2
years from the date of this Agreement. 
 “Subordinated Debt” is debt incurred by Borrower subordinated to
Borrower’s debt to Bank (pursuant to a subordination agreement entered into between Bank, Borrower and the subordinated creditor), on terms acceptable to Bank. 

“Subsidiary” is any Person, corporation, partnership, limited liability company, joint venture, or any other business
entity of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 

“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s
consolidated balance sheet, including all Indebtedness, and current portion of Subordinated Debt permitted by Bank to be paid by Borrower, but excluding all other Subordinated Debt. 

“Warrants” are those two (2) certain Warrants to Purchase Borrower’s stock in accordance with the terms
therein, each dated as of approximately the Effective Date hereof, executed by Borrower in favor of Bank; one Warrant shall constitute an unconditional grant of 125,000 shares in Borrower and a second warrant shall constitute a conditional grant of
up to 100,000 shares in Borrower, pursuant to the terms set forth therein (each, a “Warrant”). 
 [Remainder of
page intentionally left blank] 
  

 21 

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

							
	BORROWER:	 		 	
			
	GIGOPTIX, INC.	 		 	CHIPX, INCORPORATED
	A Delaware corporation	 		 	A Delaware corporation
			
	 By: /s/ Avi Katz
	 		 	 By: /s/ Avi Katz

	 Name: Avi Katz
	 		 	 Name: Avi Katz

	 Title: CEO
	 		 	 Title: CEO

			
	
	BANK:
	
	SILICON VALLEY BANK
	
	 By /s/ Rick Tu

	 Name: Rick Tu

	 Title: Market Manager / Deal Team Leader (DTL)

 

 22 

 EXHIBIT A 

The Collateral consists of all right, title and interest of GigOptix, Inc. and ChipX, Incorporated, and each of them, in and to the
following: 
 All goods, equipment, inventory, contract rights or rights to payment of money, leases, license agreements,
franchise agreements, general intangibles (including payment intangibles) accounts (including health-care receivables), 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), commercial tort claims, securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter
acquired, wherever located; and any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, now owned or later acquired; any patents,
trademarks, service marks and applications therefor; trade styles, trade names, any trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential information, now
owned or hereafter acquired; or any claims for damages by way of any past, present and future infringement of any of the foregoing; 

All of its copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and
derivative work, whether published or unpublished, any patents, patent applications and like protections, including improvements, divisions, continuations, renewals, reissues, extensions, and continuations-in-part of the same, trademarks, service
marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized thereby, know-how, operating manuals, trade secret rights,
rights to unpatented inventions, and any claims for damage by way of any past, present, or future infringement of any of the foregoing; and 

All of 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. 

 

 1 

 EXHIBIT B – LOAN PAYMENT/ADVANCE REQUEST FORM 

DEADLINE FOR SAME DAY PROCESSING IS
NOON PACIFIC TIME* 
  

							
	 Fax To:
	  		  	Date:                          
                                        
	  	

  

																	
	LOAN PAYMENT:	  	 	  	 	  	 	  	 	  	 	  	 	  	 	  	 
	 
	       
                                         
                [Insert Borrower name]
	 				 
	From Account
#                                         
                             	  		  		  	To Account
#                                         
                              	  	 
	(Deposit Account #)        	  		  		  	(Loan Account #)	  	 
	 				 
	Principal
$                                         
                                     	  		  		  	and/or Interest
$                                         
                           	  	 
	 			 
	Authorized
Signature:                                       
                                   	  		  	            Phone
Number:                                        
                   	  	 
	Print
Name/Title:                                       
                                         
	  		  		  		  		  	 
	 	  	 	  	 	  	 	  	 	  	 

  

									
	LOAN ADVANCE:	  	 	  	 	  	 	  	 
	 
	Complete Outgoing Wire Request
section below if all or a portion of the funds from this loan advance are for an outgoing wire.
	 			 
	From Account
#                                         
                           	  		  	To Account
#                                         
                                         
 	  	 
	(Loan Account #)	  		  	(Deposit Account #)	  	 
	 				 
	Amount of Advance
$                                         
                   	  		  		  		  	 
	 
	All Borrower’s representations and warranties in the Loan
and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; 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:
	 				 
	Authorized
Signature:                                       
                     	  		  		  	Phone
Number:                                        
                           	  	 
	Print
Name/Title:                                       
                            	  		  		  		  	 
	 	  	 	  	 	  	 	  	 

  

											
	OUTGOING WIRE REQUEST:	  	 	  	 	 	 	  	 	  	 
	Complete only if all or a portion of funds from the loan advance above is to be wired.	  	 
	Deadline for same day processing is noon, Pacific Time	  	 
	 					 
	Beneficiary
Name:                                        
                             	  		  		 		  	Amount of Wire:
$                                         
                          	  	 
	Beneficiary
Bank:                                        
                              	  		  		 		  	Account
Number:                                        
                            	  	 
	City and
State:                                        
                                  	  		  		 		  		  	 
	 				 
	Beneficiary Bank Transit (ABA)
#:                                        
       	  		  		 	Beneficiary Bank Code (Swift, Sort, Chip,
etc.):                                 	  	 
	 	  		  		 	         (For International Wire Only)
	  	 
	 				 
	Intermediary
Bank:                                        
                            	  		  		 	Transit (ABA)
#:                                        
                                   	  	 
	For Further Credit
to:                                        
                                         
                                         
                                         
                    	  	 
	 	 
	Special
Instruction:                                       
                                         
                                         
                                         
                        	  	 
	 	 
	By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in
accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).	  	 
	 			 
	Authorized
Signature:                                       
                          	  		  	2nd Signature (if
required):                                       
                             	  	 
	Print
Name/Title:                                       
                                	  		  	Print
Name/Title:                                       
                                         
	  	 
	Telephone
#:                                        
                                     	  		  	Telephone
#:                                        
                                         
     	  	 
	 	  	 	  	 	  	 

  

 

	*	Unless otherwise provided for an Advance bearing interest at LIBOR. 

 

 2 

 EXHIBIT C 

 

 

 SPECIALTY FINANCE DIVISION 

Compliance Certificate 

I, an authorized officer of GigOptix, Inc. and ChipX, Incorporated (“Borrower”) certify under the Loan and Security Agreement
(the “Agreement”) between Borrower and Silicon Valley Bank (“Bank”) as follows (all capitalized terms used herein shall have the meaning set forth in the Agreement): 

Borrower represents and warrants for each Financed Receivable: 

Each Financed Receivable is an Eligible Account. 

Borrower is the owner with legal right to sell, transfer, assign and encumber such Financed Receivable; 

The correct amount is on the Invoice Transmittal and is not disputed; 

Payment is not contingent on any obligation or contract and Borrower has fulfilled all its obligations as of the Invoice Transmittal date; 

Each Financed Receivable is based on an actual sale and delivery of goods and/or services rendered, is due to Borrower, is not past due or in default,
has not been previously sold, assigned, transferred, or pledged and is free of any liens, security interests and encumbrances other than Permitted Liens; 

There are no defenses, offsets, counterclaims or agreements for which the Account Debtor may claim any deduction or discount; 

It reasonably believes no Account Debtor is insolvent or subject to any Insolvency Proceedings; 

It has not filed or had filed against it Insolvency Proceedings and does not anticipate any filing; 

Bank has the right to endorse and/ or require Borrower to endorse all payments received on Financed Receivables and all proceeds of Collateral.

 No representation, warranty or other statement of Borrower in any certificate or written statement given to Bank contains any untrue
statement of a material fact or omits to state a material fact necessary to make the statement contained in the certificates or statement not misleading. 

Additionally, Borrower represents and warrants as follows: 

Borrower and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business in, and in good
standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. The execution, delivery and
performance of the Loan Documents have been duly authorized, and do not conflict with Borrower’s organizational documents, nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default
under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change. 

Borrower has good title to the Collateral, free of Liens except Permitted Liens. All inventory is in all material respects of good and marketable
quality, free from material defects. 
  

 Page 1 of 3 

 Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all
material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any
Subsidiary’s properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than
legally. Borrower and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes, except those being contested in good faith with adequate reserves under GAAP. Borrower and each
Subsidiary has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue its business as currently conducted except where the
failure to obtain or make such consents, declarations, notices or filings would not reasonably be expected to cause a Material Adverse Change. 

Except as noted herein, Borrower is in compliance with all Reporting Requirements and the Financial Covenant(s) as of the date of this
Certificate and as of the last day of the reporting period (the preceding calendar month). Certain covenants are summarized as follows: 

Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	    	 Complies

			
	 Monthly financial statements with Compliance Certificate
	  	Monthly, within 30 days	    	Yes    No
			
	 Annual financial statement (CPA Audited)
	  	FYE within 180 days	    	Yes    No
			
	 10-K, 10-Q and 8-K
	  	Within 5 days after filing with SEC	    	Yes    No
			
	 Annual Forecast (approved by Board of Directors)
	  	FYB within 30 days	    	Yes    No
			
	 Aged listing of accounts receivable and accounts payable
	  	Within 30 days after Reconciliation Period	    	Yes    No
			
	 Deferred Revenue report
	  	Within 30 days after Reconciliation Period	    	Yes    No

  

							
	 Financial Covenant
	    	 Required
	    	 Actual
	    	 Complies

				
	 Commitments for new funding for $4m due*
	    	July 31, 2010	    		    	Yes    No
				
	 Close new equity round of funding for $4m*
	    	August 15, 2010	    		    	Yes    No
				
	 *the above shall be waived if Borrower is EBITDA positive by
	    	July 4, 2010	    		    	Yes    No
				
	 Assurance of Equity Event
	    	August 15, 2010	    		    	Yes    No

  

					
	 Performance Pricing
	    	 Applies

			
	 Positive EBITDA 2 Consecutive Quarters
	  	Prime + 1.0%	    	Yes    No
			
	 Positive EBITDA Prior Quarter
	  	Reduced Rate Continues                        
                            	    	Yes    No

  

 Page 2 of 3 

 The following are the exceptions with respect to the certificate above: (If no exceptions
exist, state “No exceptions to note.”) 
  
  

 
  
  

 
 All representations and
warranties in the Agreement are true and correct in all material respects on this date, and the Borrower represents that there is no existing Event of Default. 

Sincerely, 
  

									
	 GIGOPTIX, INC.
 a
Delaware corporation
	 		 	 CHIPX, INCORPORATED

a Delaware corporation

					
	By:	 	 	 		 	By:	 	 
	Name:	 	 	 		 	Name:	 	 
	Title:	 	 	 		 	Title:	 	 
					
	Date:	 	 	 		 		 	

  

 Page 3 of 3

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