Document:

Form of Success Bonus Letter

 Exhibit 10.42 
  
 Form of Success Bonus Letter 
  

                                      
      , 2005 

							
				
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 
	 	 	 	 	 	  	 

  
 Dear
                        : 
  
 As you know, Toys “R” Us, Inc. (the “Corporation”) has been undergoing a strategic review in which we are exploring a number of possible business
strategies, including the separation of the toy and babies businesses. In your role as a member of the Executive Committee, you have played and will continue to play a critical role in this process, up to and including the time when the toys and
babies businesses are separated. 
  
 Accordingly, in December 2004, I advised you
that the Compensation and Organizational Development Committee of the Corporation’s Board of Directors approved a special retention/success bonus to you, as a member of the Executive Committee, provided that you sign this agreement and follow
all its terms. As an Executive Committee member, you shall receive a retention/success bonus in conjunction with your work as part of the Corporation’s ongoing strategic review. To receive this bonus, you must be actively employed by the
Corporation at the time the toys and babies businesses are legally separated, or the entire Corporation has been sold, as a result of this strategic review. Payment shall be made by the Corporation at the closing (i.e., when the transaction is
consummated) that results in the separation of the businesses or the sale of the entire Corporation. Termination of your employment, if any, as a result of the transaction will not affect your eligibility to receive the retention/success bonus,
provided you are actively employed by the Corporation as of the date immediately prior to closing. 
  
 The amount of the bonus will depend on the legal structure of the separation: 
  
 (a) If the separation is effected as a spin-off of the babies business to the public shareholders of Toys “R” Us, Inc., the success bonus will
equal 100% of your base annual salary as in effect immediately prior to the spin-off. 
  
 (b) If the separation is effected in the form of a sale of the international and domestic toy businesses, or the domestic toy business alone, or the sale of the entire Corporation (international toys, domestic toys,
and the babies business) to a third party, the success bonus will equal 200% of your base annual salary as in effect immediately prior to the closing of the transaction. 
  

 The Corporation may withhold from the retention/success bonus, or from any other amounts payable under this agreement or
otherwise, such Federal, state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. This retention/success bonus will be in addition to any other compensation or benefits for which you may
otherwise be eligible to receive. 
  
 This retention/success bonus should be
viewed as an indication of the Corporation’s confidence in and appreciation of your abilities, and as an additional form of compensation to meet a special need. It is not a guarantee of continued employment or a permanent or recurring element
of your compensation, nor will it impact any other element of compensation for which you may otherwise be eligible. This special retention/success bonus will not be utilized to compute your annual or quarterly incentive payments, merit increases,
profit sharing contributions, or any other Corporation benefit or payment for which you may otherwise be eligible. 
  
 The terms of this retention/success bonus are to be kept strictly confidential, until such time as these terms are made public by the Corporation when required by
applicable law. Until that event occurs, your disclosure of the terms of this retention/success bonus to other employees of the Corporation, or anyone other than your immediate family or financial/tax/legal advisors, will result in appropriate
remedial action, including forfeiture of the retention/success bonus. Nothing shall prevent the Corporation from disclosing the terms of this bonus opportunity to a potential purchaser or otherwise. 
  

	
	 Sincerely,

	
	  
	 John H. Eyler, Jr.

	 Chairman and Chief Executive Officer

	 Toys “R” Us, Inc.

  
 Accepted this
             day of
                            , 2005 
  

 2Memorandum dated February 7, 2005

 Exhibit 10.43 
  

			
	 TO:
	  	JOHN BARBOUR
		
	 FROM:
	  	DEBORAH DERBY
		
	 DATE:
	  	FEBRUARY 7, 2005
		
	 SUBJECT:
	  	RELOCATION EXPENSES

  
 I followed up with John Eyler and the
Compensation and Organizational Development Committee of the Board of Directors regarding the verbal commitments you indicated had been made to you by Mike Goldstein at the time of your hire regarding reimbursement for various relocation expenses.
Based on those discussions, I have memorialized below the Company’s agreement to reimburse you for various relocation expenses associated with purchasing a primary residence within commuting distance of the Company’s headquarters:

  

	•	 	All “one time charges” associated with the closing on your home will be eligible for reimbursement, as provided for under the Company’s current relocation policy.
Such charges include related attorney fees, inspections, title fees, transfer fees, and tax stamps. To the extent these expenses are incurred and reimbursed, these payments will also be “grossed up” for tax purposes. (Currently, for
someone at your level, we use a 35% tax rate for purposes of calculating the Federal tax “gross up” and the applicable state tax rate for the state in which you purchase your home.) 

  

	•	 	Mortgage interest, pmi, and real estate escrow taxes are not considered “one time charges” and are not eligible for reimbursement. 

  

	•	 	You will be covered for up to 2 points, if such a fee is required by a lending institution. However, points that are used to “buy down” a mortgage rate are NOT eligible
for reimbursement, either under current policy or the relocation policy in effect when you were hired. (Points are not eligible for “gross up”, as they are deductible on your income taxes.) 

  

	•	 	The Company will arrange and pay for the move of your household goods in New York into the new primary residence you purchase in the area. 

  
 In order for any of these expenses to be eligible for reimbursement by the Company, a
contract for the purchase of a primary residence must be signed no later than December 31, 2006 and you must be actively employed with the Company at the time you are requesting reimbursement for these relocation expenses. 
  
 Should you have any questions concerning this, please do not hesitate to call me. 

 

	Cc:	John EylerLoan and Security Agreement

 Exhibit 10.8 
  

  
 LOAN AND SECURITY AGREEMENT 
 ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED 
  

  

 1 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	 1
	  	ACCOUNTING AND OTHER TERMS	  	4
			
	 2
	  	LOAN AND TERMS OF PAYMENT	  	4
	 	  	 2.1    Promise to Pay
	  	4
	 	  	 2.2    Overadvances
	  	5
	 	  	 2.3    Interest Rate, Payments
	  	5
	 	  	 2.4    Fees
	  	5
			
	 3
	  	CONDITIONS OF LOANS	  	6
	 	  	 3.1    Conditions Precedent to Initial Credit Extension
	  	6
	 	  	 3.2    Conditions Precedent to all Credit Extensions
	  	6
			
	 4
	  	CREATION OF SECURITY INTEREST	  	6
	 	  	 4.1    Grant of Security Interest
	  	6
	 	  	 4.2    Authorization of File
	  	6
			
	 5
	  	REPRESENTATIONS AND WARRANTIES	  	7
	 	  	 5.1    Due Organization and Authorization
	  	7
	 	  	 5.2    Collateral
	  	7
	 	  	 5.3    Litigation
	  	7
	 	  	 5.4    No Material Adverse Change in Financial Statements
	  	7
	 	  	 5.5    Solvency
	  	7
	 	  	 5.6    Regulatory Compliance
	  	8
	 	  	 5.7    Investments in Subsidiaries
	  	8
	 	  	 5.8    Full Disclosure
	  	8
			
	 6
	  	AFFIRMATIVE COVENANTS	  	8
	 	  	 6.1    Government Compliance
	  	8
	 	  	 6.2    Financial Statements, Reports, Certificates
	  	8
	 	  	 6.3    Inventory; Returns
	  	9
	 	  	 6.4    Taxes
	  	9
	 	  	 6.5    Insurance
	  	9
	 	  	 6.6    Primary Accounts
	  	9
	 	  	 6.7    Financial Covenants
	  	10
	 	  	 6.8    Further Assurances
	  	10
			
	 7
	  	NEGATIVE COVENANTS	  	10
	 	  	 7.1    Dispositions
	  	10
	 	  	 7.2    Changes in Business, Ownership, Management or Locations of Collateral
	  	10
	 	  	 7.3    Mergers or Acquisitions
	  	11
	 	  	 7.4    Indebtedness
	  	11
	 	  	 7.5    Encumbrance
	  	11
	 	  	 7.6    Distributions; Investments
	  	11
	 	  	 7.7    Transactions with Affiliates
	  	11
	 	  	 7.8    Subordinated Debt
	  	11
	 	  	 7.9    Compliance
	  	11
			
	 8
	  	EVENTS OF DEFAULT	  	12
	 	  	 8.1    Payment Default
	  	12
	 	  	 8.2    Covenant Default
	  	12
	 	  	 8.3    Material Adverse Change
	  	12

  

 2 

					
	 	  	 8.4    Attachment
	  	12
	 	  	 8.5    Insolvency
	  	13
	 	  	 8.6    Other Agreements
	  	13
	 	  	 8.7    Judgments
	  	13
	 	  	 8.8    Misrepresentations
	  	13
			
	 9
	  	BANK’S RIGHTS AND REMEDIES	  	13
	 	  	 9.1    Rights and Remedies
	  	13
	 	  	 9.2    Power of Attorney
	  	14
	 	  	 9.3    Bank Expenses
	  	14
	 	  	 9.4    Bank’s Liability for Collateral
	  	14
	 	  	 9.5    Remedies Cumulative
	  	14
	 	  	 9.6    Demand Waiver
	  	14
			
	 10
	  	NOTICES	  	15
			
	 11
	  	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER	  	15
			
	 12
	  	GENERAL PROVISIONS	  	15
	 	  	 12.1   Successors and Assigns
	  	15
	 	  	 12.2   Indemnification
	  	15
	 	  	 12.3   Time of Essence
	  	15
	 	  	 12.4   Severability of Provision
	  	15
	 	  	 12.5   Amendments in Writing, Integration
	  	15
	 	  	 12.6   Counterparts
	  	16
	 	  	 12.7   Survival
	  	16
	 	  	 12.8   Confidentiality
	  	16
	 	  	 12.9   Attorneys’ Fees, Costs and Expenses
	  	16
			
	 13
	  	DEFINITIONS	  	16
	 	  	 13.1   Definitions
	  	16

  

 3 

 This LOAN AND SECURITY AGREEMENT (“Agreement”) dated as of the Effective Date, between
SILICON VALLEY BANK (“Bank”), whose address is 3003 Tasman Drive, Santa Clara, California 95054 and ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED (“Borrower”), whose address is 830 East Arques Avenue, Mountain View, California
94085 provides the terms on which Bank will lend to Borrower and Borrower will repay Bank. The parties agree as follows: 
  

	1	ACCOUNTING AND OTHER TERMS 

  
 Accounting terms not defined in this Agreement will be construed following GAAP. Calculations and determinations must be made following GAAP. The term
“financial statements” includes the notes and schedules. The terms “including” and “includes” always mean “including (or includes) without limitation,” in this or any Loan Document. 
  

	2	LOAN AND TERMS OF PAYMENT  

  

	2.1	Promise to Pay. 

  
 Borrower promises to pay Bank the unpaid principal amount of all Credit Extensions and interest on the unpaid principal amount of the Credit Extensions.

  

	2.1.1	 Revolving Advances. 

  
 (a) Bank will make Advances not exceeding the lesser of (A) the Committed Revolving Line or (B) the Borrowing Base, minus (i) the amount of all
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), (ii) minus the Cash Management Services Sublimit and minus (iii) the FX Reserve. Amounts borrowed under this Section may be repaid and reborrowed during the term of
this Agreement. 
  
 (b) To obtain an Advance, Borrower must notify
Bank by facsimile or telephone by 12:00 p.m. Pacific time on the Business Day the Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank the Payment/Advance Form attached as Exhibit B. Bank will credit Advances
to Borrower’s deposit account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due.
Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss Bank suffers due to such reliance. 
  
 (c) The Committed Revolving Line terminates on the Revolving Maturity Date,
when all Advances are immediately payable. 
  

	2.1.2	 Letters of Credit Sublimit. 

  
 Bank will issue or have issued Letters of Credit for Borrower’s account not exceeding the lesser of (A) the Committed Revolving Line or (B) the
Borrowing Base minus (i) the outstanding principal balance of the Advances minus (ii) the Cash Management Sublimit, and (iii) minus the FX Reserve; however, the face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters
of Credit) may not exceed $3,000,000, increasing to $5,000,000 upon Bank’s receipt of the Renewal Fee. Borrower’s Letter of Credit reimbursement obligation will be secured by unencumbered cash on terms acceptable to Bank at any time upon
the Revolving Maturity Date if the term of this Agreement is not extended by Bank. Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. 
  

 4 

	2.1.3	 Foreign Exchange Sublimit. 

  
 If there is availability under the Committed Revolving Line and the Borrowing Base, then Borrower may enter in foreign exchange forward contracts with the
Bank under which Borrower commits to purchase from or sell to Bank a set amount of foreign currency more than one business day after the contract date (the “FX Forward Contract”). Bank will subtract 10% of each outstanding FX Forward
Contract from the foreign exchange sublimit which is a maximum of $3,000,000, increasing to $5,000,000 upon Bank’s receipt of the Renewal Fee (the “FX Reserve”). The total FX Forward Contracts at any one time may not exceed 10 times
the amount of the FX Reserve. Bank may terminate the FX Forward Contracts if an Event of Default occurs. 
  

	2.1.4	 Cash Management Services Sublimit. 

  
 Borrower may use up to $3,000,000, increasing to $5,000,000 upon Bank’s receipt of the Renewal Fee, which may include merchant services, direct
deposit of payroll, business credit card, and check cashing services identified in various cash management services agreements related to such services (the “Cash Management Services”). All amounts Bank pays for any Cash Management
Services will be treated as Advances under the Committed Revolving Line. 
  

	2.2	Overadvances. 

  
 If Borrower’s Obligations under Sections 2.1.1, 2.1.2, 2.1.3 and 2.1.34 exceed the lesser of either (i) the Committed Revolving Line or (ii) the
Borrowing Base, Borrower must immediately pay Bank the excess. 
  

	2.3	Interest Rate, Payments. 

  
 (a) Interest Rate. Advances accrue interest on the outstanding principal balance at the per annum rate greater of either (a) 0.5 of one percentage point
above the Prime Rate or (ii) 4.50%. After an Event of Default, Obligations accrue interest at 5 percent above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate changes. Interest
is computed on a 360 day year for the actual number of days elapsed. 
  
 (b) Payments. Interest due on the Committed Revolving Line is payable on the 14th of each month. Bank may debit any of Borrower’s deposit accounts including Account Number
                                        
                 for principal and interest payments owing or any amounts Borrower owes Bank. Bank will promptly notify Borrower when it debits Borrower’s
accounts. These debits are not a set-off. Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment is due the
next Business Day and additional interest shall accrue. 
  

	2.4	Fees. 

  
 Borrower will pay: 
  
 (a) Facility Fee. A fully earned, non-refundable Facility Fee of $20,000 due on the Effective Date. 
  
 (b) Bank Expenses. All Bank Expenses (including reasonable attorneys’
fees and reasonable expenses) incurred through and after the date of this Agreement, are payable when due. 
  
 (c) Renewal Fee. A fully earned, non-refundable fee of $25,000 (the “Renewal Fee”) for the Committed Revolving Line is due on the first
anniversary of the Effective Date. 
  

 5 

	3	CONDITIONS OF LOANS 

  

	3.1	Conditions Precedent to Initial Credit Extension. 

  
 Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that it receive the agreements, documents, Bank’s
audit of Borrower’s Collateral and fees it requires. 
  

	3.2	Conditions Precedent to all Credit Extensions. 

  
 Bank’s obligations to make each Credit Extension, including the initial Credit Extension, is subject to the following: 
  
 (a) timely receipt of any Payment/Advance Form; and 
  
 (b) the representations and warranties in Section 5 must be materially true
on the date of the Payment/Advance Form and on the effective date of each Credit Extension and no Event of Default may have occurred and be continuing, or result from the Credit Extension. Each Credit Extension is Borrower’s representation and
warranty on that date that the representations and warranties of Section 5 remain true unless such representation or warranty solely relates to an earlier date. 
  

	4	CREATION OF SECURITY INTEREST 

  

	4.1	Grant of Security Interest. 

  
 Borrower grants Bank a continuing security interest in all presently existing and later acquired Collateral to secure all Obligations and performance of
each of Borrower’s duties under the Loan Documents. Except for Permitted Liens, any security interest will be a first priority security interest in the Collateral. Bank may place a “hold” on any deposit account pledged as Collateral.
If this Agreement is terminated, Bank’s lien and security interest in the Collateral will continue until Borrower fully satisfies its Obligations. Notwithstanding the foregoing, the security interest granted herein does not extend to and the
term “Collateral” does not include any license or contract rights to the extent (i) the granting of a security interest in it would be contrary to applicable law, or (ii) that such rights are nonassignable by their terms (but only to the
extent such prohibition is enforceable under applicable law or the Code) without the consent of the licensor or other party (but only to the extent such consent has not been obtained). Except as disclosed on the Schedule, Borrower is not a party to,
nor is bound by, any license or other agreement that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property. Without prior notice to Bank, Borrower
shall not enter into, or become bound by, any such license or agreement which is reasonably likely to have a material impact on Borrower’s business or financial condition. Borrower shall take such steps as Bank requests to obtain the consent
of, or waiver by, any person whose consent or waiver is necessary for such licenses or contract rights to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by
the terms of any such license or agreement, whether now existing or entered into in the future. 
  

	4.2	Authorization of File. 

  
 Borrower authorizes Bank to file financing statements without notice to Borrower, with all appropriate jurisdictions, as Bank deems appropriate, in order
to perfect or protect Bank’s interest in the Collateral. 
  

 6 

	5	REPRESENTATIONS AND WARRANTIES 

  
 Borrower represents and warrants as follows: 
  

	5.1	Due Organization and Authorization. 

  
 Borrower and each Subsidiary is duly existing and in good standing in its 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. Borrower has not changed
its state of formation or its organizational structure or type or any organizational number (if any) assigned by its jurisdiction of formation. 
  
 The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower’s formation documents, nor
constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse
Change. 
  

	5.2	Collateral. 

  
 Borrower has good title to the Collateral, free of Liens except Permitted Liens or Borrower has Rights to each asset that is Collateral. Borrower has no
other deposit account, other than the deposit accounts described in the Schedule. The Accounts are bona fide, existing obligations, and the service or property has been performed, shipped or licensed to the account debtor. The Collateral is not in
the possession of any third party bailee (such as at a warehouse) within the United States without first providing Bank with a warehouseman’s lien waiver or equivalent, in form and substance acceptable to Bank. In the event that Borrower, after
the date hereof, intends to store or otherwise deliver the Collateral to such a bailee, then Borrower will receive the prior written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the
benefit of Bank. Borrower has no notice of any actual or imminent Insolvency Proceeding of any account debtor whose accounts are an Domestic Eligible Account in any Borrowing Base Certificate. All Inventory, excluding Inventory processed and stored
outside the United States, is in all material respects of good and marketable quality, free from material defects. 
  

	5.3	Litigation. 

  
 Except as shown in the Schedule, there are no actions or proceedings pending or, to the knowledge of Borrower’s Responsible Officers, threatened by
or against Borrower or any Subsidiary in which a likely adverse decision could reasonably be expected to cause a Material Adverse Change. 
  

	5.4	No Material Adverse Change in Financial Statements. 

  
 All consolidated financial statements for Borrower, and any Subsidiary, delivered to Bank fairly present in all material respects Borrower’s
consolidated financial condition and Borrower’s consolidated results of operations. There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements
submitted to Bank. 
  

	5.5	Solvency. 

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

 7 

	5.6	Regulatory Compliance. 

  
 Borrower is not an “investment company” or a company “controlled” by an “investment company” under the Investment Company
Act. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations T and U of the Federal Reserve Board of Governors). Borrower has complied in all material respects with the Federal Fair Labor
Standards Act. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s or any Subsidiary’s properties or assets has been used by
Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than 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 do so could not reasonably be expected to cause a
Material Adverse Change. 
  

	5.7	Investments in Subsidiaries. 

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

	5.8	Full Disclosure. 

  
 No material written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank (taken together with all
such written certificates and written statements 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 the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may
differ from the projected and forecasted results. 
  

	6	AFFIRMATIVE COVENANTS 

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

	6.1	Government Compliance. 

  
 Borrower will maintain its and all 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 cause a material adverse effect on Borrower’s business or operations. Borrower will comply, and have each Subsidiary comply, with all laws, ordinances and
regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business or operations or would reasonably be expected to cause a Material Adverse Change. 
  

	6.2	Financial Statements, Reports, Certificates. 

  
 (a) Borrower will deliver to Bank: (i) as soon as available, but no later than 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 period certified by a Responsible Officer and in a form acceptable to Bank; (ii) as soon as available, but no later than 120 days after the last day of
Borrower’s fiscal year, audited consolidated financial statements 

  

 8 

 
prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting
firm reasonably acceptable to Bank (except for the absence of footnotes and subject to normal year-end adjustments); (iii) a prompt report of any legal actions pending or threatened against Borrower or any Subsidiary that could reasonably be
expected to result in a Material Adverse Change; and (iv) budgets, sales projections, operating plans or other financial information Bank reasonably requests. 
  

(b) Within 30 days after the last day of each month, Borrower will deliver to Bank a Borrowing Base Certificate signed by a Responsible Officer in the
form of Exhibit C, with aged listings of accounts receivable and accounts payable by invoice date. 
  
 (c) Allow Bank to audit Borrower’s Collateral at Borrower’s expense, however capped at $750 per day, per auditor, plus out of pocket expenses.
The initial audit will be conducted prior to the initial Advance and subsequent audits shall be no more often than every 6 months or annually if there are no outstanding Advances, unless an Event of Default has occurred and is continuing.

  

	6.3	Inventory; Returns. 

  
 Borrower will keep all Inventory in good and marketable condition, free from material defects, except for those Inventory processed and stored outside the
United States. Returns and allowances between Borrower and its account debtors will follow Borrower’s customary practices as they exist at execution of this Agreement. Borrower must promptly notify Bank of all returns, recoveries, disputes and
claims, that involve more than $250,000. 
  

	6.4	Taxes. 

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

	6.5	Insurance. 

  
 Borrower will keep its business and the Collateral insured for risks and in amounts, as Bank requests. Insurance policies will be in a form, with
companies, and in amounts that are satisfactory to Bank. All property policies will have a lender’s loss payable endorsement showing Bank as a loss payee and all liability policies will show the Bank as an additional insured and provide that
the insurer must give Bank at least 20 days notice before canceling its policy. At Bank’s request, Borrower will deliver certified copies of policies and evidence of all premium payments. If no Event of Default has occurred and is continuing,
proceeds payable under any casualty policy will, at Borrower’s option, be payable to Borrower to replace the property subject to the claim, provided that any such replacement property shall be deemed Collateral in which Bank has been granted a
first priority security interest. If an Event of Default has occurred and is continuing, then, at Bank’s option, proceeds payable under any policy will be payable to Bank on account of the Obligations. 
  

	6.6	Primary Accounts. 

  
 Borrower will maintain its primary banking relationship with Bank, which relationship shall include Borrower maintaining account balances in any accounts
at or through Bank representing at least 85% of all account balances of Borrower at any financial institution. 
  

 9 

	6.7	Financial Covenants. 

  
 Borrower will maintain as of the last day of each month: 
  
 (i) Liquidity Coverage. A ratio of unrestricted cash (and equivalents) including marketable securities plus net availability under
the Committed Revolving Line divided by the Committed Revolving Line of not less than 2.50 to 1.00. 
  

	6.8	Further Assurances. 

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

	7	NEGATIVE COVENANTS 

  
 For so long as Bank has an obligation to lend or there are any outstanding Obligations, Borrower shall not, without Bank’s prior written consent
(which shall be a matter of its good faith business judgment), do any of the following: 
  

	7.1	Dispositions. 

  
 Convey, sell, lease, transfer or otherwise dispose of (collectively “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part
of its business or property (other than the use of cash or cash equivalents in a manner that is not prohibited by the terms of this Agreement of the Loan Documents), except for Transfers (i) of Inventory in the ordinary course of
business; (ii) of non-exclusive licenses and similar arrangements for the use of the property of Borrower or its Subsidiaries in the ordinary course of business; (iii) of worn-out or obsolete Equipment; (iv) other Transfers which in the aggregate do
not exceed $250,000 in any fiscal year; (v) Transfers of Intellectual Property developed by the Borrower which is unrelated to the design and manufacture of products sold in connection with Borrower’s primary business and (vi) other Transfers
permitted under this Section 7. Notwithstanding the forgoing, the transfer of non-perpetual exclusive licenses in the ordinary course of Borrower’s business (provided that such exclusive licenses are limited to specified fields of use, or
specific geographic location, or custom products developed for the exclusive use of a particular customer approved by at least one of Borrower’s Responsible Officers in good faith, and do not in each case or in the aggregate constitute a sale
of the Intellectual Property that is the subject of such licenses) will be allowed by Bank. 
  

	7.2	Changes in Business, Ownership, Management or Locations of Collateral. 

  

Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower or reasonably related
thereto or have a material change in its ownership of greater than 25% (other than by the sale of Borrower’s equity securities in a public offering or to venture capital or strategic investors so long as Borrower identifies the venture capital
or strategic investors prior to the closing of the investment); or have a change in Responsible Officers provided, however, it will not be considered an Event of Default if those Responsible Officers are replaced within ninety (90) days with a
person acceptable to the Board of Directors of the Borrower. Borrower will not, without at least 30 days prior written notice, relocate its chief executive office, change its state of formation (including reincorporation), change its organizational
number or name or add any new offices or business locations (such as warehouses) in which Borrower maintains or stores over $250,000 in Collateral, provided, however, that Borrower may maintain its Inventory outside of the United States in the
ordinary course of business. 
  

 10 

	7.3	Mergers or Acquisitions. 

  
 Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to
acquire, all or substantially all of the capital stock or property of another Person, except where (i) no Event of Default has occurred and is continuing or would result from such action during the term of this Agreement and (ii) such
transaction would not result in a decrease of more than 25% of Tangible Net Worth. Notwithstanding the foregoing, a Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 
  

	7.4	Indebtedness. 

  
 Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness. 
  

	7.5	Encumbrance. 

  
 Create, incur, or allow any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit
any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted here, subject to Permitted Liens. 
  

	7.6	Distributions; Investments. 

  
 Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted Investments, or permit any of its
Subsidiaries to do so. Pay any dividends or make any distribution or payment on or redeem, retire or purchase any capital stock except for repurchases of stock from former employees or directors of Borrower under the terms of applicable repurchase
agreements in an aggregate amount not to exceed $100,000 in any fiscal year, provided that no Event of Default has occurred, is continuing or would exist after giving effect to the repurchases. 
  

	7.7	Transactions with Affiliates. 

  
 Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower except for (a) transactions that are in the
ordinary course of Borrower’s business, upon fair and reasonable terms that are no less favorable to Borrower than would be obtained in an arm’s length transaction with a nonaffiliated Person, (b) transactions with Subsidiaries consisting
Permitted Investments and (c) transactions with Subsidiaries permitted by this Section 7, (d) transaction as set forth on the Schedule. Notwithstanding anything to the foregoing, Borrower shall notify Bank of any transaction under clauses (a)
through (d) hereunder this Section 7.7 no later than 10 days after the consummation of such transaction. 
  

	7.8	Subordinated Debt. 

  
 Make or permit any payment on any Subordinated Debt, except under the terms of the Subordinated Debt, or amend any provision in any document relating to
the Subordinated Debt without Bank’s prior written consent. 
  

	7.9	Compliance. 

  
 Become an “investment company” or a company controlled by an “investment company,” under the Investment Company Act of 1940 or
undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable 

  

 11 

 
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 operations or would reasonably be expected to cause a Material Adverse Change, or permit any of its Subsidiaries to do so.

  

	8	EVENTS OF DEFAULT 

  
 Any one of the following is an Event of Default: 
  

	8.1	Payment Default. 

  
 If Borrower fails to pay any of the Obligations within 3 days after their due date (other than Bank Expenses, as defined in Section 13.1, within 10 days
after their due date), however, during such period no Credit Extensions will be made; 
  

	8.2	Covenant Default. 

  
 (a) If Borrower fails to perform any obligation under Sections 6.2 or 6.7 or violates any of the covenants contained in Section 7 of this Agreement, or

  
 (b) If Borrower fails or neglects to perform, keep, or observe
any other material term, provision, condition, covenant, or agreement contained in this Agreement, in any of the Loan Documents, or in any other present or future agreement between Borrower and Bank and as to any default under such other term,
provision, condition, covenant or agreement that can be cured, has failed to cure such default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or
cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional reasonable period (which shall not in any case exceed thirty
(30) days) to attempt to cure such default, and within such reasonable time period the failure to have cured such default shall not be deemed an Event of Default (provided that no Credit Extensions will be made during such cure period); 

 

	8.3	Material Adverse Change. 

  
 If there (i) occurs a material adverse change in the business, operations, or financial condition of the Borrower, or (ii) is a material impairment of the
prospect of repayment of any portion of the Obligations; or (iii) is a material impairment of the value or priority of Bank’s security interests in the Collateral (the foregoing being defined as a “Material Adverse Change”).

  

	8.4	Attachment. 

  
 If any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver and the attachment,
seizure or levy is not removed in 10 days, or if Borrower is enjoined, restrained, or prevented by court order from conducting a material part of its business or if a judgment or other claim becomes a Lien on a material portion of Borrower’s
assets, or if a notice of lien, levy, or assessment is filed against any of Borrower’s assets by any government agency and not paid within 10 days after Borrower receives notice. These are not Events of Default if stayed or if a bond is posted
pending contest by Borrower (but no Credit Extensions will be made during the cure period); 
  

 12 

	8.5	Insolvency. 

  
 If Borrower becomes insolvent or if Borrower begins an Insolvency Proceeding or an Insolvency Proceeding is begun against Borrower and not dismissed or
stayed within 45 days (but no Credit Extensions will be made before any Insolvency Proceeding is dismissed); 
  

	8.6	Other Agreements. 

  
 If there is a default in any agreement between Borrower and a third party that gives the third party the right to accelerate any Indebtedness exceeding
$100,000 or that could cause a Material Adverse Change; 
  

	8.7	Judgments. 

  
 If a money judgment(s) in the aggregate of at least $50,000 is rendered against Borrower and is unsatisfied and unstayed for 30 days (but no Credit
Extensions will be made before the judgment is stayed or satisfied); or 
  

	8.8	Misrepresentations. 

  
 If Borrower or any Person acting for Borrower makes any material misrepresentation or material misstatement now or later in any warranty or representation
in this Agreement or in any communication delivered to Bank or to induce Bank to enter this Agreement or any Loan Document. 
  

	9	BANK’S RIGHTS AND REMEDIES 

  

	9.1	Rights and Remedies. 

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

  
 (c) Settle or adjust disputes and claims directly with account
debtors for amounts, on terms and in any order that Bank considers advisable; notify any Person owing Borrower money of Bank’s security interest in the funds and verify the amount of the Account. Borrower must collect all payments in trust for
Bank and, if requested by Bank, immediately deliver the payments to Bank in the form received from the account debtor, with proper endorsements for deposit; 
  
 (d) Make any payments and do any acts it considers necessary or reasonable to protect its security interest in the Collateral. Borrower will assemble the
Collateral if Bank requires and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which
appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 
  
 (e) Apply to the Obligations any (i) balances and deposits of Borrower it
holds, or (ii) any amount held by Bank owing to or for the credit or the account of Borrower; 
  

 13 

 (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and
sell the Collateral; and 
  
 (g) Dispose of the Collateral
according to the Code. 
  

	9.2	Power of Attorney. 

  
 Effective only when an Event of Default occurs and continues, Borrower irrevocably appoints Bank as its lawful attorney to: (i) endorse Borrower’s
name on any checks or other forms of payment or security; (ii) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against account debtors, (iii) make, settle, and adjust all claims under Borrower’s insurance
policies; (iv) settle and adjust disputes and claims about the Accounts directly with account debtors, for amounts and on terms Bank determines reasonable; and (v) transfer the Collateral into the name of Bank or a third party as the Code permits.
Bank may exercise the power of attorney to sign Borrower’s name on any documents necessary to perfect or continue the perfection of any security interest regardless of whether an Event of Default has occurred. Bank’s appointment as
Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates.

  

	9.3	Bank Expenses. 

  
 If Borrower fails to pay any amount or furnish any required proof of payment to third persons, Bank may make all or part of the payment or obtain
insurance policies required in Section 6.5, and take any action under the policies Bank deems prudent. Any amounts paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then applicable rate and secured by the
Collateral. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 
  

	9.4	Bank’s Liability for Collateral. 

  
 If Bank complies with reasonable banking practices and Section 9-207 of the Code, it is not liable for: (a) the safekeeping of the Collateral; (b) any
loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other person. Except as provided above, Borrower bears all risk of loss, damage or destruction of
the Collateral. 
  

	9.5	Remedies Cumulative. 

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

	9.6	Demand Waiver. 

  
 Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release,
compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 
  

 14 

	10	NOTICES 

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

	11	CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER 

  
 California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of
the State and Federal courts in Santa Clara County, California. 
  
 BORROWER
AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL
INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL. 
  

	12	GENERAL PROVISIONS 

  

	12.1	Successors and Assigns. 

  
 This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights
under it without Bank’s prior written consent which may be granted or withheld in Bank’s discretion. Bank has the right, without the consent of or notice to Borrower, to sell, transfer, negotiate, or grant participation in all or any part
of, or any interest in, Bank’s obligations, rights and benefits under this Agreement. 
  

	12.2	Indemnification. 

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

	12.3	Time of Essence. 

  
 Time is of the essence for the performance of all obligations in this Agreement. 
  

	12.4	Severability of Provision. 

  
 Each provision of this Agreement is severable from every other provision in determining the enforceability of any provision. 
  

	12.5	Amendments in Writing, Integration. 

  
 All amendments to this Agreement must be in writing and signed by Borrower and Bank. This Agreement represents the entire agreement about this subject
matter, and supersedes prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement merge into this Agreement and the Loan
Documents. 
  

 15 

	12.6	Counterparts. 

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

	12.7	Survival. 

  
 All covenants, representations and warranties made in this Agreement continue in full force while any Obligations remain outstanding. The obligations of
Borrower in Section 12.2 to indemnify Bank will survive until all statutes of limitations for actions that may be brought against Bank have run. 
  

	12.8	Confidentiality. 

  
 In handling any confidential information, Bank will exercise the same degree of care that it exercises for its own proprietary information, but disclosure
of information may be made (i) to Bank’s subsidiaries or affiliates in connection with their present or prospective business relations with Borrower, (ii) to prospective transferees or purchasers of any interest in the loans (provided, however,
Bank shall use commercially reasonable efforts in obtaining such prospective transferee or purchasers agreement of the terms of this provision), (iii) as required by law, regulation, subpoena, or other order, (iv) as required in connection with
Bank’s examination or audit and (v) as Bank considers appropriate in exercising remedies under this Agreement. Confidential information does not include information that either: (a) is in the public domain or in Bank’s possession when
disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (b) is disclosed to Bank by a third party, if Bank does not know that the third party is prohibited from disclosing the information. 
  

	12.9	Attorneys’ Fees, Costs and Expenses. 

  
 In any action or proceeding between Borrower and Bank arising out of the Loan Documents, the prevailing party will be entitled to recover its reasonable
attorneys’ fees and other reasonable costs and expenses incurred, in addition to any other relief to which it may be entitled. 
  

	13	DEFINITIONS 

  

	13.1	Definitions. 

  
 In this Agreement: 
  
 “Accounts” are all existing and later arising accounts, contract rights, and other obligations owed Borrower in connection with its sale
or lease of goods (including licensing software and other technology) or provision of services, all credit insurance, guaranties, other security and all merchandise returned or reclaimed by Borrower and Borrower’s Books relating to any of the
foregoing, as such definition may be amended from time to time according to the Code. 
  
 “Advance” or “Advances” is a loan advance (or advances) under the Committed Revolving Line. 
  
 “Affiliate” of a Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by
or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members. 
  

 16 

 “Bank Expenses” are all audit fees and expenses and reasonable costs and expenses
(including reasonable attorneys’ fees and expenses) for preparing, negotiating, administering, defending and enforcing the Loan Documents (including appeals or Insolvency Proceedings). 
  
 “Borrower’s Books” are all Borrower’s books and
records including ledgers, records regarding Borrower’s assets or liabilities, the Collateral, business operations or financial condition and all computer programs or discs or any equipment containing the information. 
  
 “Borrowing Base” is (i) 80% of Domestic Eligible Accounts,
plus (ii) 80% of Eligible Foreign Accounts A, and plus (iii) 65% of Eligible Foreign Accounts B (not to exceed 35% of the total Accounts) as determined by Bank from Borrower’s most recent Borrowing Base Certificate; provided,
however, that Bank may lower the percentage of the Borrowing Base after performing an audit of Borrower’s Collateral. 
  
 “Business Day” is any day that is not a Saturday, Sunday or a day on which the Bank is closed. 
  
 “Cash Management Services” are defined in Section 2.1.4.

  
 “Code” is the California Uniform Commercial
Code, as applicable. 
  
 “Collateral” is the
property described on Exhibit A. 
  
 “Committed
Revolving Line” is an Advance of up to $3,000,000, increasing up to $5,000,000 at such time as Bank’s receipt of Borrower’s payment of the Renewal Fee. 
  
 “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that
Person for (i) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person
is directly or indirectly liable; (ii) any obligations for undrawn letters of credit for the account of that Person; and (iii) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or
other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business.
The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in
good faith; but the amount may not exceed the maximum of the obligations under the guarantee or other support arrangement. 
  
 “Credit Extension” is each Advance, Letter of Credit, Exchange Contract, or any other extension of credit by Bank for Borrower’s
benefit. 
  
 “Domestic Eligible Accounts” are
Accounts in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5; but Bank may change eligibility standards by giving Borrower 30 days written notice. Unless Bank agrees
otherwise in writing, Domestic Eligible Accounts will not include: 
  
 (a) Accounts that the account debtor has not paid within 90 days of invoice date (60 days for Eligible Foreign Accounts B); 
  
 (b) Accounts for an account debtor, 50% or more of whose Accounts have not been paid within 90 days of invoice date; 
  
 (c) Credit balances over 90 days from invoice date; 
  

 17 

 (d) Accounts for an account debtor, including Affiliates, whose total obligations to Borrower exceed 25%
of all Accounts, for the amounts that exceed that percentage, unless the Bank approves in writing except for those certain Accounts from Samsung Electronics, Samsung Electro-mechanics and LG Electronics for each of which the percentage may be 35%
respectively; 
  
 (e) Accounts for which the account debtor does
not have its principal place of business in the United States except for Eligible Foreign Accounts A and Eligible Foreign Accounts B; 
  
 (f) Accounts for which the account debtor is a federal, state or local government entity or any department, agency, or instrumentality; 
  
 (g) 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); 
  
 (h) 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 account debtor’s payment may be conditional; 
  
 (i) Accounts for which the account debtor is Borrower’s Affiliate, officer, employee, or agent; 
  
 (j) 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; 
  
 (k) Accounts for which Bank reasonably determines collection to be doubtful. 
  
 “Effective Date” is the date Bank executes this Agreement. 
  
 “Eligible Foreign Accounts A” are Accounts for which the
account debtor does not have its principal place of business in the United States, provided, however, Eligible Foreign Accounts A shall include Accounts that are: (1) covered by credit insurance satisfactory to Bank, less any deductible; or (2)
supported by letter(s) of credit advised negotiated and acceptable to Bank; or (3) that Bank approves in writing; or (4) from LG Electronics, Inc., Chailease Resources Trading Co. Ltd, Samsung Electronics H.K. Co. Ltd and Samsung Electro-Mechanics
(H.K.) Ltd. 
  
 “Eligible Foreign Accounts B” are
Accounts for which the account debtor does not have its principal place of business in the United States, subject to the same exclusions as Domestic Eligible Accounts above, provided, however, Eligible Foreign Accounts B shall include Accounts from
Chief Tech Electronics Ltd, EPCO Technology Co. Ltd, Kei Kong Electronics Ltd and Memec Plc - Insight Ltd. 
  
 “Equipment” is all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and
attachments in which Borrower has any interest. 
  
 “ERISA” is the Employment Retirement Income Security Act of 1974, and its regulations. 
  
 “FX Forward Contract” is defined in Section 2.1.3. 
  
 “FX Reserve” is defined in Section 2.1.3. 
  
 “GAAP” is generally accepted accounting principles. 
  

 18 

 “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” are proceedings by or against any
Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement,
or other relief. 
  
 “Inventory” is present and
future inventory in which Borrower has any interest, including merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products intended for sale or lease or to be furnished under a contract of
service, of every kind and description now or later owned by or in the custody or possession, actual or constructive, of Borrower, including inventory temporarily out of its custody or possession or in transit and including returns on any accounts
or other proceeds (including insurance proceeds) from the sale or disposition of any of the foregoing and any documents of title. Inventory shall not include those Inventory processed and stored at the facilities outside of the United States.

  
 “Investment” is any beneficial ownership of
(including stock, partnership interest or other securities) any Person, or any loan, advance or capital contribution to any Person. 
  
 “Letter of Credit” is defined in Section 2.1.2. 
  

“Lien” is a mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance. 
  
 “Loan Documents” are, collectively, this Agreement, any
note, or notes or guaranties executed by Borrower or Guarantor, and any other present or future agreement between Borrower and/or for the benefit of Bank in connection with this Agreement, all as amended, extended or restated. 
  
 “Material Adverse Change” is defined in Section 8.3.

  
 “Obligations” are debts, principal, interest,
Bank Expenses and other amounts Borrower owes Bank now or later, including cash management services, letters of credit and foreign exchange contracts, if any and including interest accruing after Insolvency Proceedings begin and debts, liabilities,
or obligations of Borrower assigned to Bank. 
  
 “Permitted Indebtedness” is: 
  
 (a)
Borrower’s indebtedness to Bank under this Agreement or any other Loan Document; 
  
 (b) Indebtedness existing on the Effective Date and shown on the Schedule; 
  
 (c) Subordinated Debt; 
  
 (d) Indebtedness to trade creditors incurred in the ordinary course of business; and 
  
 (e) Indebtedness secured by Permitted Liens. 
  
 (f) Indebtedness of Borrower to any Subsidiary, Indebtedness of any Subsidiary to any other Subsidiary and Indebtedness of
any Subsidiary to Borrower that is permitted under clause (f) of the definition Permitted Investments; 
  

 19 

 (g) Indebtedness relating to letters of credit issued for the benefit of any landlord or other Person or
guarantees required to secure rental payments on any real estate lease; 
  
 (h) Indebtedness of any Person existing at the time such Person is merged with or into Borrower or becomes a Subsidiary as permitted hereby, provided that such Indebtedness is not incurred in connection with, or contemplation of, such
Person merging with and into the Borrower or becoming a Subsidiary of the Borrower. 
  
 (i) Other Indebtedness not otherwise permitted by Section 7.4 not exceeding One Hundred Thousand Dollars ($100,000) in the aggregate outstanding at any time; and 
  
 (j) Extensions, refinancings, modifications, amendments and restatements of
any items of Permitted Indebtedness (a) through (h) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be.

  
 “Permitted Investments” are: 
  
 (a) Investments shown on the Schedule and existing on the Effective Date; and

  
 (b) (i) marketable direct obligations issued or
unconditionally guaranteed by the United States or its agency or any State maturing within 1 year from its acquisition, (ii) commercial paper maturing no more than 1 year after its creation and having the highest rating from either Standard &
Poor’s Corporation or Moody’s Investors Service, Inc., (iii) Bank’s certificates of deposit issued maturing no more than 1 year after issue, and (iv) any Investments permitted by Borrower’s investment policy, as amended from time
to time, provided that such investment policy (and any such amendment thereto) has been approved by Bank. 
  
 (c) Investments permitted by Borrower’s investment policy that has been approved by its board of directors (or a committee thereof) and acceptable to
Bank; 
  
 (d) Investments consisting of deposit and
investment accounts in the name of Borrower; 
  
 (e) Investments
consisting of extensions of credit to Borrower’s or its Subsidiaries’ customers in the nature of accounts receivable, prepaid royalties or notes receivable arising from the sale or lease of goods, provision of services or licensing
activities of Borrower; 
  
 (f) Investments received in
satisfaction or partial satisfaction of obligations owned by financially troubled obligors; 
  
 (g) Investments acquired in exchange for any other Investments in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization; 
  
 (h) Investments of Subsidiaries in or to other Subsidiaries or Borrower and
Investments by Borrower in Subsidiaries not to exceed $250,000 in the aggregate in any fiscal year; 
  
 (i) Deposits, repayments and other credits to suppliers made in the ordinary course of business; 
  
 (j) Investments received in a transaction permitted under Section 7.3;

  
 (k) Investments consisting of travel advances and employee
relocation loans and other employee loans and advances in the ordinary course of business not to exceed $250,000 in the aggregate per fiscal year; and 
  

 20 

 (l) Other Investments, if, on the date of incurring any Investments pursuant to this clause, the
outstanding aggregate amount of all Investments incurred pursuant to this clause does not exceed $250,000 in any fiscal year. 
  
 “Permitted Liens” are: 
  
 (a) Liens existing on the Effective Date and shown on the Schedule or arising under this Agreement or other Loan Documents; 
  
 (b) Liens for taxes, fees, assessments or other government charges or levies,
either not delinquent or being contested in good faith and for which Borrower maintains adequate reserves on its Books, if they have no priority over any of Bank’s security interests; 
  
 (c) Purchase money Liens (i) on Equipment acquired or held by Borrower or its
Subsidiaries 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) Licenses or sublicenses granted in the ordinary course of Borrower’s
business and any interest or title of a licensor or under any license or sublicense, if the licenses and sublicenses permit granting Bank a security interest; 
  
 (e) Leases or subleases granted in the ordinary course of Borrower’s business, including in connection with
Borrower’s leased premises or leased property; 
  
 (f) Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the
principal amount of the indebtedness may not increase; 
  
 (g)
Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7; 
  
 (h) Liens in favor of other financial institutions arising in connection with Borrower’s deposit accounts held at such institutions, provided that
Bank has a perfected security interest in the amounts held in such deposit accounts; 
  
 (i) Liens to secure payment of workers’ compensation, employment insurance, old age pensions, social security or other like obligations incurred in the ordinary course of business; 
  
 (j) Easements, rights-of-way, restrictions and other similar encumbrances
affecting real property which, in the aggregate, are not substantial in amount, and which do no in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the
applicable Person; and 
  
 (k) Liens on cash relating to
Borrower’s real property ownership or leases. 
  
 “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company association, trust, unincorporated organization, association, corporation, institution, public benefit
corporation, firm, joint stock company, estate, entity or government agency. 
  
 “Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest rate. 
  
 “Renewal Fee” is defined in Section 2.4 (c). 
  

 21 

 “Responsible Officer” is each of the Chief Executive Officer, the President, the Chief
Financial Officer and the Controller of Borrower. 
  
 “Revolving Maturity Date” is April 14, 2006. 
  
 “Rights”, as applied to the Collateral, means the Borrower’s rights and interests in, and powers with respect to, that Collateral, whatever the nature of those rights, interests and powers and, in any event, including
Borrower’s power to transfer rights in such Collateral to Bank. 
  
 “Schedule” is any attached schedule of exceptions. 
  
 “Subordinated Debt” is debt incurred by Borrower subordinated to Borrower’s indebtedness owed to Bank and which is reflected in a written agreement in a manner and form acceptable to Bank and
approved by Bank in writing. 
  
 “Subsidiary” is
for any Person, or any other business entity of which more than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Person or one or more Affiliates of the Person. 
  
 “Tangible Net Worth” is, on any date, the consolidated total
assets of Borrower and its Subsidiaries minus, (i) any amounts attributable to (a) goodwill, (b) intangible items such as unamortized debt discount and expense, patents, trade and service marks and names, copyrights and research and
development expenses except prepaid expenses, and (c) reserves not already deducted from assets, and (ii) Total Liabilities. 
  
 “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 Subordinated Debt allowed to be paid, but excluding all other Subordinated Debt. 
  

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

	 Title:
	 	 President, CEO, CTO

	
	BANK:
	
	SILICON VALLEY BANK
		
	By:	 	 /s/ Illegible

	 Title:
	 	 Vice President

			
	 Effective Date: 
	 	 7/13/04

  

 22 

 EXHIBIT A 
  

The Collateral consists of all of Borrower’s right, title and interest in and to the following whether owned now or hereafter arising and whether
the Borrower has rights now or hereafter has rights therein and wherever located: 
  
 All goods and equipment now owned or hereafter acquired, including, without limitation, all machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all
attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located; 
  
 All inventory, (except for those processed and stored at the facilities outside of the United States), now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or possession or in transit and including
any returns upon any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above; 
  
 All contract rights and general intangibles (as such definitions may be
amended from time to time according to the Code), now owned or hereafter acquired, including, without limitation, goodwill, trademarks, servicemarks, trade styles, trade names, patents, patent applications, leases, license agreements, franchise
agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, computer programs, computer discs, computer tapes, literature, reports, catalogs, design rights, income tax refunds, payments of insurance and
rights to payment of any kind,; 
  
 All now existing and hereafter
arising accounts, contract rights, royalties, license rights and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by Borrower (as such definitions
may be amended from time to time according to the Code) whether or not earned by performance, and any and all credit insurance, insurance (including refund) claims and proceeds, guaranties, and other security therefor, as well as all merchandise
returned to or reclaimed by Borrower; 
  
 All documents, cash,
deposit accounts, securities, securities entitlements, securities accounts, investment property, financial assets, letters of credit, letter of credit rights, certificates of deposit, instruments and chattel paper and electronic chattel paper now
owned or hereafter acquired and Borrower’s Books relating to the foregoing; 
  
 All copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired; all
trade secret rights, including all rights to unpatented inventions, know-how, operating manuals, license rights and agreements and confidential information, now owned or hereafter acquired; all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired; all claims for damages by way of any past, present and future infringement of any of the foregoing; and 
  
 All Borrower’s Books relating to the foregoing and any and all claims, rights and interests in any of the above and all
substitutions for, additions and accessions to and proceeds thereof. 
  
 Notwithstanding anything herein to the contrary, in no event shall the Collateral include in any of the outstanding capital stock of a controlled foreign corporation (as such term is defined in the Internal Revenue Code of 1986, as amended)
in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporation entitled to vote. 
  
 Notwithstanding the foregoing, the Collateral shall not be deemed to include any copyrights, copyright applications, copyright registration and like
protection in each work of authorship and derivative work thereof, whether published or unpublished, now owned or hereafter acquired; any patents, patent applications and like protections including without limitation improvements, divisions,
continuations, renewals, reissues, extensions and continuations-in-part of the same, trademarks, servicemarks and applications therefor, whether registered or not, and the goodwill of the business of Borrower connected with and symbolized by such
trademarks, any trade secret rights, including any rights to unpatented inventions, know-how, operating manuals, license rights and agreements and any confidential information, now owned or hereafter acquired; or any claims for damage by way of any
past, present and future infringement of any of the foregoing (collectively, the “Intellectual Property”), except that the Collateral shall include the Proceeds of all the Intellectual Property that are accounts, (i.e. accounts receivable)
of Borrower, or general intangibles consisting of rights to payment, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in such
accounts and general intangibles of Borrower that are 

  

 
Proceeds of the Intellectual Property, then the Collateral shall automatically, and effective as of the Closing Date, include the Intellectual Property to
the extent necessary to permit perfection of Bank’s security interest in such accounts and general intangibles of Borrower that are Proceeds of the Intellectual Property. 
  

 2 

 EXHIBIT B 
  

LOAN PAYMENT/ADVANCE REQUEST FORM 
 DEADLINE FOR SAME DAY PROCESSING IS 12:00 P.S.T. 
  

			
	FAX TO:	 	Date:                     

  
  ̈ LOAN PAYMENT: 
  
 Advanced Analogic Technologies, Incorporated (Borrower) 
  

			
	 From Account #
                                        
        
	 	 To Account #
                                        
    

	 (Deposit Account #)
	 	             (Loan Account #)

  
 Principal $
                                        
                 and/or Interest
$                                        
                                        
                     
  
 All Borrower’s representation and warranties in the Loan and Security Agreement are true, correct and complete in all material respects up to and including the date
of the transfer request for a loan payment, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of that date: 
  

			
	Authorized Signature:
                                        
        	 	 Phone Number:
                                        
    

  
  ̈ 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 representation and warranties in the Loan and Security Agreement are
true, correct and complete in all material respects up to and including the date of the transfer request for an advance, but those representations and warranties expressly referring to another date shall be true, correct and complete in all material
respects as of that date: 
  

			
	Authorized Signature:
                                        
        	 	 Phone Number:
                                        
    

  
 OUTGOING
WIRE REQUEST 
 Complete only if all or a portion of funds from the loan advance above
are to be wired. 
 Deadline for same day processing is 12:00pm, P.S.T. 
  

			
	Beneficiary Name:
                                    	 	Amount of Wire: $
                                    
		
	Beneficiary Bank:
                                    	 	Account Number:
                                    
		
	City and State:
                                        
            	 	Beneficiary Bank Code (Swift, Sort, Chip, etc.):
                    
		
	Beneficiary Bank Transit (ABA) #: ______________________	 	(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 #
                                        
                                    

  

 3 

 Schedule to Loan and Security Agreement 
  
 The exact correct corporate name of Borrower is (attach a copy of the formation documents,
e.g., articles, partnership agreement):
                                        
                                     
  
 Borrower’s State of formation:
                                        
                                     
  
 Borrower has operated under only the following other names (if none, so state): 

_________________________________________________________________________ 
  
 All other address at which the Borrower does business are as follows (attach additional sheets if necessary and include all warehouse addresses): 
 ______________________________________________________________________________________ 
  
 Borrower has deposit accounts and/or investment accounts located only at the following institutions: 
 ______________________________________________________________________________________ 
  
 List Acct. Numbers: _____________________________________________________________________ 
  
 Liens existing on the Effective Date and disclosed to and accepted by Bank in writing:

 ______________________________________________________________________________________ 
 ______________________________________________________________________________________ 
 ______________________________________________________________________________________ 
  
 Investments existing on the Effective Date and disclosed to and accepted by Bank in writing: 
 ______________________________________________________________________________________ 
 ______________________________________________________________________________________ 
 ______________________________________________________________________________________ 
  
 Subordinated Debt: 
  
 Indebtedness on the
Effective Date and disclosed to and consented to by Bank in writing: 
 ______________________________________________________________________________________

 ______________________________________________________________________________________ 
 ______________________________________________________________________________________ 
  
 Borrower is not subject to litigation which would have a material adverse effect on the Borrower’s financial condition, except the following (attach additional
comments, if needed): 
 _______________________________________________________________________________________________________ 
 _______________________________________________________________________________________________________ 
  
 Tax ID Number
                                        
                                        
     
  
 Organizational Number, if any:
                                        
                         
  

 4 

 EXHIBIT C 
 BORROWING BASE CERTIFICATE 
  

							
	Borrower:	  	Advanced Analogic Technologies, Incorporated	  	Bank:	  	Silicon Valley Bank
3003 Tasman Drive
Santa Clara, CA 95054

  
 Commitment Amount: $3,000,000
increasing up to $5,000,000 upon Bank’s receipt of the Renewal Fee 
  

							
	 	 	ACCOUNTS RECEIVABLE	 	 	 	 
				
	 1
	 	 Total Accounts Receivable Book Value as of
                    
	 	 	 	 _______

				
	 	 	 DOMESTIC ACCOUNTS RECEIVABLE AND FOREIGN ACCOUNTS RECEIVABLE ADVANCED AT 80% (“Accounts A”)- without
duplication
	 	 	 	 
	 2
	 	 Total Domestic Accounts A
	 	 	 	 _______

	 3
	 	 Total Foreign Accounts A*
	 	 	 	 _______

	 4
	 	 Total Foreign Letter of Credit-Backed Accounts
	 	 	 	 _______

	 5
	 	 Amounts over 90 days due
	 	 _______
	 	 
	 6
	 	 Balance of 50% over 90 days
	 	 _______
	 	 
	 7
	 	 Credit Balances over 90 days
	 	 _______
	 	 
	 8
	 	 25% Concentration Limits (35% for Samsung and LG Electronics)
	 	 _______
	 	 
	 9
	 	 Governmental Accounts
	 	 _______
	 	 
	 10
	 	 Contra Accounts
	 	 _______
	 	 
	 11
	 	 Promotion/Demo Accounts
	 	 _______
	 	 
	 12
	 	 Intercompany/Employee Accounts
	 	 _______
	 	 
	 13
	 	 Other (Please explain on reverse)
	 	 _______
	 	 
	 14
	 	 Total Accounts A Deductions
	 	 	 	 _______

	 15
	 	 Eligible Accounts A (#2 plus #3 plus #4 minus #14)
	 	 	 	 _______

	 16
	 	 Loan Value of Accounts A (80% of #15)
	 	 	 	 _______

				
	 	 	 *Foreign accounts advanced at 80% (“Foreign Accounts A”) include the following:
	 	 	 	 
	 	 	 -Chailease Resources Trading Company
	 	 	 	 
	 	 	 -LG Electronics
	 	 	 	 
	 	 	 -Samsung
	 	 	 	 
				
	 	 	 FOREIGN ACCOUNTS RECEIVABLE ADVANCED AT 65%** (“Accounts B”)
	 	 	 	 
	 17
	 	 Total Foreign Accounts Receivable (Excluding Foreign Accounts A)
	 	 	 	 _______

	 18
	 	 Amounts over 60 days due
	 	 _______
	 	 
	 19
	 	 Ineligible Foreign Accounts
	 	 _______
	 	 
	 20
	 	 Balance of 50% over 60 days
	 	 _______
	 	 
	 21
	 	 Credit Balances over 60 days
	 	 _______
	 	 
	 22
	 	 25% Concentration Limits
	 	 _______
	 	 
	 23
	 	 Governmental Accounts
	 	 _______
	 	 
	 24
	 	 Contra Accounts
	 	 _______
	 	 
	 25
	 	 Promotion/Demo Accounts
	 	 _______
	 	 
	 26
	 	 Intercompany/Employee Accounts
	 	 _______
	 	 
	 27
	 	 Other (Please explain on reverse)
	 	 _______
	 	 
	 28
	 	 Total Accounts B Deductions
	 	 	 	 _______

	 29
	 	 Eligible Accounts B (#17 minus #28)
	 	 	 	 _______

  

							
	 30
	 	 The Lesser of Eligible Accounts B (#29) or 35% of Total A/R (#1)
	 	 	 	 _______

	 31
	 	 Loan Value of Foreign Accounts (65% of #30)
	 	 	 	 _______

				
	 	 	 BALANCE
	 	 	 	 
	 32
	 	 Maximum Loan Amount
	 	 _______
	 	 
	 33
	 	 Total Funds Available (Lesser of [#16 plus #31] or #32)
	 	 _______
	 	 
	 34
	 	 Outstandings on Line of Credit
	 	 _______
	 	 
	 35
	 	 Outstandings on Sublimits
	 	 _______
	 	 
	 36
	 	 Reserve Position (#33 minus #34 minus #35)
	 	 _______
	 	 
				
	 	 	 **Eligible Foreign Accounts B include the following, but in aggregate cannot exceed 35% of the total trade Accounts
Receivable:
	 	 	 	 
	 	 	 -Chief Tech Electronics
	 	 	 	 
	 	 	 -EPCO Technology Company
	 	 	 	 
	 	 	 -Kei Kong Electronics
	 	 	 	 
	 	 	 -Memec Plc- Insight
	 	 	 	 

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

  
 COMMENTS: 
  

													
	 	 	 	 	 	 	BANK USE ONLY
							
	 	 	 	 	 	 	 	 	 	 	 Rec’d By:
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 Auth. Signer

	 Advanced Analogic Technologies, Incorporated
	 	 	 	 	 	 	 	 Date:
	 	 
							
	 By:
	 	 	 	 	 	 	 	 	 	 Verified:
	 	 
	 	 	 Authorized Signer
	 	 	 	 	 	 	 	 	 	 Auth. Signer

	 	 	 	 	 	 	 	 	 	 	 Date:
	 	 
	 	 	 	 	 	 	 	 	 	 	 ____________________

  

 2 

 EXHIBIT D 
 COMPLIANCE CERTIFICATE 
  

			
	 TO:
	  	 SILICON VALLEY BANK
 3003 Tasman Drive
 Santa Clara, CA 95054

		
	 FROM:
	  	ADVANCED ANALOGIC TECHNOLOGIES, INCORPORATED

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

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

									
	 Reporting Covenant

	  	 Required

	  	 	  	Complies

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

	  	 Required

	  	 Actual

	  	Complies

	 Maintain on a Monthly Basis:
	  	 	  	 	  	 
	 Minimum Liquidity Coverage
	  	2.50:1.00	  	        :1.00	  	Yes	  	    No

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

							
	 Comments Regarding Exceptions: See Attached.
	 	 	 	BANK USE ONLY
			 
	 Sincerely,
	 	 	 	 Received by:
___________________________________________

	 	 	 	 	AUTHORIZED SIGNER
	 Advanced Analogic Technologies, Incorporated
	 	 	 	 
			 
	  	 	 	 	 Date:
_________________________________________________

	 SIGNATURE
	 	 	 	  
	 	 	 	 	 Verified:
______________________________________________

	 	 	 	 	AUTHORIZED SIGNER
			 
	  	 	 	 	 Date:
_________________________________________________

	 TITLE
	 	 	 	  
 Compliance Status:
	 	Yes     No
			
	  	 	 	 	  
	 DATE
	 	 	 	 

  

 CORPORATE BORROWING RESOLUTION 
  

							
	 Borrower:    
	  	Advanced Analogic Technologies,	  	Bank:	  	Silicon Valley Bank
	 	  	Incorporated	  	 	  	3003 Tasman Drive
	 	  	830 East Arques Avenue	  	 	  	Santa Clara, CA 95054-1191
	 	  	Mountain View, CA 94085	  	 	  	 

  
 I, the Secretary or Assistant
Secretary of Advanced Analogic Technologies, Incorporated (“Borrower”), CERTIFY that Borrower is a corporation existing under the laws of the State of California. 
  
 I certify that at a meeting of Borrower’s Directors (or by other authorized corporate action) duly held the following
resolutions were adopted. 
  
 It is resolved that any one of the following
officers of Borrower, whose name, title and signature is below: 
  

					
	 NAMES

	  	 POSITIONS

	 	 ACTUAL SIGNATURES

	 Richard K. Williams
	  	 CEO, President, CTO
	 	/s/ Richard K. Williams

  
 may act for Borrower and: 

 
 Borrow Money. Borrow money from Silicon Valley Bank
(“Bank”).  
  
 Execute Loan Documents.
Execute any loan documents Bank requires.  
  
 Grant Security. Grant Bank a security interest in any of Borrower’s assets. 
  
 Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and
receive cash or otherwise use the proceeds. 
  
 Letters of
Credit. Apply for letters of credit from Bank. 
  
 Foreign
Exchange Contracts. Execute spot or forward foreign exchange contracts. 
  
 Issue Warrants. Issue warrants for Borrower’s stock. 
  
 Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or
agreement that waive Borrowers right to a jury trial) they think necessary to effectuate these Resolutions. 
  
 Further resolved that all acts authorized by these Resolutions and performed before they were adopted are ratified. These Resolutions remain in effect and Bank may rely on them until Bank receives written notice of
their revocation. 
  
 I certify that the persons listed above are Borrower’s
officers with the titles and signatures shown following their names and that these resolutions have not been modified are currently effective. 
  

	
	CERTIFIED TO AND ATTESTED BY:
	
	 /s/ Illegible

	 *Secretary or Assistant Secretary

	
	  

  

	*	NOTE: In case the Secretary or other certifying officer is designated by the foregoing resolutions as one of the signing officers, this resolution should also be signed by a second
Officer or Director of Borrower. 

  

 2 

 

 
  
 SILICON VALLEY BANK

  
 PRO FORMA INVOICE FOR LOAN CHARGES 
  

							
	 BORROWER:
	  	Advanced Analogic Technologies, Incorporated	  	 
				
	 LOAN OFFICER:
	  	Teresa Li	  	 	  	 
				
	 DATE:
	  	April 15, 2004	  	 	  	 
				
	 	  	Revolving Loan Fee	  	$20,000.00	  	 
	 	  	Credit Report	  	35.00	  	 
	 	  	UCC Search Fee	  	300.00	  	 
	 	  	UCC Filing Fee	  	100.00	  	 
	 	  	Documentation Fee	  	2,500.00	  	 
				
	 	  	Less: Good Faith Deposit	  	(5,000.00)	  	 
				
	 	  	TOTAL FEE DUE	  	$17,935.00	  	 
	 	  	 	  	
	  	 

  
 Please indicate the method of payment:

  

	 	 ̈	A check for the total amount is attached. 

  

	 	x	Debit DDA#
                                 for the total amount. 

 

	 	 ̈	Loan proceeds. 

  

			
	Borrower:
		
	By:	 	 /s/ Richard K. Williams

	 	 	 (Authorized Signer)

  

			
		
	 /s/ Illegible
	 	 7/13/14

	 Silicon Valley Bank
	 	 (Date)

	 Account Officer’s Signature
	 	 

  

 3

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