Document:

Exhibit 10.1

AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

dated as of

  June 29, 2006

among

SIEGER ENGINEERING, INC.

  LEONID MEZHVINSKY

  ULTRA CLEAN HOLDINGS, INC.

  BOB ACQUISITION INC. 

  PETE ACQUISITION LLC 

SOLELY WITH RESPECT TO SECTIONS 4.01(b), 4.02(b), 4.04, Section 5.01, 

Section 5.02, Section 5.03 and Section 5.04 (in each case only with respect to

itself),
and SECTIONS 9.03, 9.05, 9.06, 9.07 and 12.02: 

     LEONID AND INNA MEZHVINSKY
AS TRUSTEES OF THE

REVOCABLE TRUST AGREEMENT OF LEONID MEZHVINSKY AND

INNA MEZHVINSKY DATED APRIL 26, 1988 

JOE AND JENNY CHEN AS TRUSTEES OF THE JOE CHEN AND

JENNY
CHEN REVOCABLE TRUST DATED 2002

VICTOR MEZHVINSKY

     VICTOR MEZHVINSKY AS TRUSTEE
OF THE JOSHUA

MEZHVINSKY 2004 IRREVOCABLE TRUST UNDER AGREEMENT

DATED JUNE 4, 2004 

DAVID HONGYU WU AND WINNIE WEI ZHEN WU AS TRUSTEES OF

THE
CHEN MINORS IRREVOCABLE TRUST 

  FRANK MOREMAN

  and

LEONID MEZHVINSKY, as Sellers’ Agent

	 	 	 TABLE OF CONTENTS	 	 
	

		 
		

		 
		
PAGE
	
	 ARTICLE 1 DEFINITIONS	 
		
2
	
	 	 	 	 	 
	
Section 1.01.
		 
		
Definitions
		 
		
2
	
	
Section 1.02.
		 
		
Other Definitional and Interpretative Provisions
		 
		
10
	
	 	 	 	 	 
	 ARTICLE 2 THE MERGERS	 
		
11
	
	 	 	 	 	 
	
Section 2.01.
		 
		
The Mergers
		 
		
11
	
	
Section 2.02.
		 
		
Conversion of Shares
		 
		
12
	
	
Section 2.03.
		 
		
Conversion of Shares in the Second Merger
		 
		
12
	
	
Section 2.04.
		 
		
Surrender and Payment
		 
		
12
	
	
Section 2.05.
		 
		
Dissenting Shares
		 
		
14
	
	
Section 2.06.
		 
		
Closing Balance Sheet
		 
		
14
	
	
Section 2.07.
		 
		
Adjustment of Merger Consideration
		 
		
16
	
	
Section 2.08.
		 
		
Sellers’ Agent
		 
		
18
	
	
Section 2.09.
		 
		
Company Audit Expenses
		 
		
19
	
	
Section 2.10.
		 
		
Fractional Shares
		 
		
19
	
	
Section 2.11.
		 
		
Withholding Rights
		 
		
20
	
	
Section 2.12.
		 
		
Escrow
		 
		
20
	
	
Section 2.13.
		 
		
Lost Certificates
		 
		
21
	
	
Section 2.14.
		 
		
Parent Stock Consideration Adjustment
		 
		
21
	
	 	 	 	 	 
	 ARTICLE 3 INITIAL SURVIVING CORPORATION;
    THE SURVIVING ENTITY	 
		
21
	
	 	 	 	 	 
	
Section 3.01.
		 
		
Articles of Incorporation and Bylaws of the Initial Surviving	 	 
	

		 
		
Corporation
		 
		
21
	
	
Section 3.02.
		 
		
Directors and Officers
		 
		
22
	
	
Section 3.03.
		 
		
Certificate of Formation and Limited Liability Company
		 	 
	

		 
		
Agreement
		 
		
22
	
	
Section 3.04.
		 
		
Managers and Officers
		 
		
22
	
	 	 	 	 	 
	 ARTICLE 4 REPRESENTATIONS
	    AND WARRANTIES
    OF THE COMPANY	 
		
22
	
	 	 	 	 	 
	
Section 4.01.
		 
		
Existence and Power	 
		
23
	
	
Section 4.02.
		 
		
Authorization
		 
		
23
	
	
Section 4.03.
		 
		
Governmental Authorization
		 
		
24
	
	
Section 4.04.
		 
		
Noncontravention
		 
		
24
	
	
Section 4.05.
		 
		
Capitalization
		 
		
24
	
	
Section 4.06.
		 
		
Ownership of Shares
		 
		
25
	
	
Section 4.07.
		 
		
No Subsidiaries
		 
		
25
	
	
Section 4.08.
		 
		
Financial Statements
		 
		
25
	
	
Section 4.09.
		 
		
Absence of Certain Changes
		 
		
26
	
	
Section 4.10.
		 
		
No Undisclosed Liabilities
		 
		
27
	
	
Section 4.11.
		 
		
Affiliated Balances
		 
		
27
	

i

	
Section 4.12.
		 
		
Material Contracts
		 
		
28
	
	
Section 4.13.
		 
		
Litigation
		 
		
30
	
	
Section 4.14.
		 
		
Compliance with Laws and Court Orders
		 
		
30
	
	
Section 4.15.
		 
		
Properties; Sufficiency of Assets in Company
		 
		
30
	
	
Section 4.16.
		 
		
Products
		 
		
31
	
	
Section 4.17.
		 
		
Intellectual Property
		 
		
31
	
	
Section 4.18.
		 
		
Insurance Coverage
		 
		
33
	
	
Section 4.19.
		 
		
Licenses and Permits
		 
		
33
	
	
Section 4.20.
		 
		
Inventories
		 
		
33
	
	
Section 4.21.
		 
		
Receivables
		 
		
33
	
	
Section 4.22.
		 
		
Finders’ Fees
		 
		
34
	
	
Section 4.23.
		 
		
Labor Matters
		 
		
34
	
	
Section 4.24.
		 
		
Employee Benefit Plans
		 
		
34
	
	
Section 4.25.
		 
		
Environmental Matters
		 
		
36
	
	
Section 4.26.
		 
		
Certain Interests
		 
		
37
	
	
Section 4.27.
		 
		
Customers; Suppliers
		 
		
38
	
	
Section 4.28.
		 
		
Debt
		 
		
38
	
	
Section 4.29.
		 
		
Books and Records
		 
		
39
	
	
Section 4.30.
		 
		
Independent Public Accountants
		 
		
39
	
	
Section 4.31.
		 
		
FIRPTA
		 
		
39
	
	 	 	 	 	 
	
ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF CERTAIN SELLERS
		 
		
39
	
	 	 	 	 	 
	
Section 5.01.
		 
		
Experienced and Accredited Investor	 
		
39
	
	
Section 5.02.
		 
		
Investment Intent; Blue Sky
		 
		
39
	
	
Section 5.03.
		 
		
Rule 144
		 
		
39
	
	
Section 5.04.
		 
		
Restrictions on Transfer; Restrictive Legends
		 
		
40
	
	 	 	 	 	 
	
ARTICLE 6 REPRESENTATIONS AND WARRANTIES OF PARENT
		 
		
40
	
	 	 	 	 	 
	
Section 6.01.
		 
		
Corporate Existence and Power	 
		
40
	
	
Section 6.02.
		 
		
Corporate Authorization
		 
		
40
	
	
Section 6.03.
		 
		
Governmental Authorization
		 
		
41
	
	
Section 6.04.
		 
		
Noncontravention
		 
		
41
	
	
Section 6.05.
		 
		
SEC Filings; Financial Statements
		 
		
41
	
	
Section 6.06.
		 
		
Litigation
		 
		
42
	
	
Section 6.07.
		 
		
Finders’ Fees
		 
		
42
	
	
Section 6.08.
		 
		
Common Stock
		 
		
42
	
	
Section 6.09.
		 
		
No Material Adverse Effect
		 
		
42
	
	 	 	 	 	 
	
ARTICLE 7 COVENANTS OF PARENT
		 
		
42
	
	 	 	 	 	 
	
Section 7.01.
		 
		
Indemnification of Company Directors and Officers
		 
		
42
	
	 	 	 	 	
	
ARTICLE 8 COVENANTS OF PARENT, THE MERGER SUBSIDIARIES AND THE
		 
		

	
	
COMPANY
		 
		

		 
		
43
	
	
Section 8.01.
		 
		
Reasonable Efforts; Further Assurances
		 
		
43
	

ii

	Section 8.02. 	 	Certain Filings 	 	 43
	Section 8.03. 	 	Further Assurances	 	44 
	 Section 8.04. 	 	 Confidentiality 	 	 44 
	 Section 8.05. 	 	 Consent Of
          Moss Adams 	 	 44 
	 	 	 	 	 
	ARTICLE 9 TAX MATTERS	 	45
	 	 	 	 	 
	 Section 9.01. 	 	 Tax Definitions 	 	 45 
	 Section 9.02. 	 	 Tax Representations 	 	 46 
	 Section 9.03. 	 	 Covenants 	 	 48 
	 Section 9.04. 	 	 Tax Sharing 	 	 50 
	 Section 9.05. 	 	 Cooperation
          on Tax Matters 	 	 50 
	 Section 9.06. 	 	 Tax Indemnification 	 	 50 
	 Section 9.07. 	 	 Certain Disputes 	 	 53 
	 Section 9.08. 	 	 Purchase
          Price Adjustment 	 	 54 
	 Section 9.09. 	 	 Tax Certificates 	 	 54 
	 Section 9.10. 	 	 Tax-Free
          Reorganization Treatment 	 	 54 
	 Section 9.11. 	 	 Survival 	 	 54 
	 	 	 	 	 
	ARTICLE 10 EMPLOYEE BENEFITS	 	54
	 	 	 	 	 
	 Section 10.01. 	 	 Company
          Plans	 	 54 
	 Section 10.02. 	 	Parent
          Benefit Plans	 	 55 
	 Section 10.03. 	 	 Parent
          Employee Stock Purchase Plan	 	 55 
	 Section 10.04. 	 	 Parent
          Management and Board Appointee	 	 56 
	 	 	 	 	 
	ARTICLE 11 CONDITIONS
    TO CLOSING	 	56
	 	 	 	 	 
	 Section 11.01. 	 	 Conditions
          to Obligations of Each Party	 	 56 
	 Section 11.02.	 	Conditions
          to Obligation of Parent and the Merger Subsidiaries	 	56
	Section 11.03.	 	 Conditions to Obligation of
    the Company and Sellers	 	57
	 	 	 	 	 
	ARTICLE 12 SURVIVAL;
    INDEMNIFICATION	 	58
	 	 	 	 	 
	 Section 12.01. 	 	 Survival 	 	 58 
	 Section 12.02. 	 	 Indemnification 	 	 58 
	 Section 12.03. 	 	 Procedures 	 	 60 
	 	 	 	 	 
	ARTICLE 13 TERMINATION	 	62
	 	 	 	 	 
	 Section 13.01.	 	 Grounds
          for Termination	 	 62 
	 Section 13.02.	 	 Effect
          of Termination	 	 63 
	 	 	 	 	 
	ARTICLE 14 MISCELLANEOUS	 	63
	 	 	 	 	 
	 Section 14.01.	 	 Notices	 	 63 
	 Section 14.02.	 	 Amendments
          and Waivers	 	 64 

iii

	 Section 14.03. 	 	 Expenses 	 	 65 
	 Section 14.04. 	 	 Successors
          and Assigns 	 	 65 
	 Section 14.05. 	 	 Governing
          Law 	 	 65 
	 Section 14.06. 	 	 Jurisdiction 	 	 65 
	 Section 14.07. 	 	 Counterparts;
          Effectiveness; Third Party Beneficiaries 	 	 65 
	 Section 14.08. 	 	 Entire Agreement 	 	 66 
	 Section 14.09. 	 	 Severability 	 	 66 
	 Section 14.10. 	 	 Specific
          Performance 	 	 66 
	 	 	 	 	 
	INDEX TO EXHIBITS	 	 
	 	 	 	 	 
	 Exhibit A 	 	 Amended and
        Restated Stockholders’ Agreement 	 	 
	 Exhibit B 	 	 Mezhvinsky Employment
        Agreement 	 	 
	 Exhibit C 	 	 Mezhvinsky Non-Compete
        Agreement 	 	 
	 Exhibit D 	 	 Chen Non-Compete
        Agreement 	 	 
	 Exhibit E 	 	 Lease Amendment 	 	 
	 Exhibit F 	 	 Amended and
        Restated Registration Rights Agreement 	 	 
	 Exhibit G 	 	 Escrow Agreement 	 	 
	 Exhibit H 	 	 Lockup Agreement 	 	 
	 Exhibit I-1 	 	 Parent Closing
        Tax Representation Certificate 	 	 
	 Exhibit I-2 	 	 Company Closing
        Tax Representation Certificate 	 	 
	 Exhibit J-1 	 	 Parent Final
        Tax Representation Certificate 	 	 
	 Exhibit J-2 	 	 Company Final
        Tax Representation Certificate 	 	 
	 Exhibit K 	 	 Company Sales
        to Applied Materials, Inc. 	 	 
	 	 	 	 	 
	INDEX TO SCHEDULES	 	 
	 	 	 	 	 
	Schedule A	 	 Company Fees and Expenses Related to
    This Agreement	 	 

    iv

  

  AGREEMENT AND PLAN OF MERGER AND REORGANIZATION

          AGREEMENT AND
        PLAN OF MERGER AND REORGANIZATION (this “Agreement”)
        dated as of June 29, 2006 among Sieger Engineering, Inc., a California
        corporation (the “Company”); Leonid Mezhvinsky; Ultra
        Clean Holdings Inc., a Delaware corporation (“Parent”);
        Bob Acquisition Inc., a California corporation and a wholly-owned subsidiary
        of Parent (“Merger Subsidiary I”); Pete Acquisition
        LLC, a Delaware limited liability company and a wholly-owned subsidiary
        of Parent (“Merger Subsidiary II” and,
        together with Merger Subsidiary I, the “Merger
  Subsidiaries”); solely with respect to Sections 4.01(b), 4.02(b),
  4.04, Section 5.01, Section 5.02, Section 5.03 and Section 5.04 (in each case
  only with respect to itself), and Sections 9.03, 9.05, 9.06, 9.07 and 12.02,
  Leonid and Inna Mezhvinsky as trustees of the Revocable Trust Agreement of
  Leonid Mezhvinsky and Inna Mezhvinsky dated April 26, 1988 (the “Mezhvinsky Living Trust”),
  Joe and Jenny Chen as trustees of the Joe Chen and Jenny Chen Revocable Trust
  dated 2002 (the “Chen Living Trust), Victor Mezhvinsky, Victor Mezhvinsky as trustee of the Joshua Mezhvinsky
  2004 Irrevocable Trust under Agreement dated June 4, 2004 (the “Joshua
  Trust”), David Hongyu Wu and Winnie Wei Zhen Wu as trustees of the Chen Minors Irrevocable Trust (the
  “Chen Minors Trust”) and Frank
  Moreman (each of the Mezhvinsky Living Trust, the Chen Living Trust, Victor
  Mezhvinsky, the Joshua Trust, the Chen Minors Trust and Frank Moreman, a “Seller” and
  collectively, the “Sellers”); and Leonid Mezhvinsky as the “Sellers’ Agent.”  

     WHEREAS, upon the terms and subject to the conditions of this 
  Agreement and in accordance with California Law and Delaware Law, Parent and the Company will enter into a business combination transaction pursuant to which Merger Subsidiary I will merge with and into the Company (the
“First Merger”), with the Initial Surviving Corporation (as defined herein) then merging with and into Merger Subsidiary II (the “Second
  Merger” and, together with the First Merger, the “Mergers”);  

     WHEREAS, it is intended that the Mergers will together qualify for U.S. federal income tax purposes as a reorganization within the meaning of Section 368(a) of the U.S. Internal Revenue Code of 1986,
  as amended (the “Code”);

      WHEREAS, the Boards of Directors of Parent, the Company and Merger Subsidiary I each have determined that a business combination transaction among the parties is fair to and in the best interests of
  their respective companies, shareholders and equityholders and presents an opportunity for their respective companies to achieve long-term strategic and financial benefits, and accordingly have agreed to effect the Mergers upon the terms and subject
  to the conditions set forth in this Agreement and have approved this Agreement and declared this Agreement and the Mergers advisable; 

     WHEREAS, the Board of Directors of the Company has unanimously determined to recommend that the shareholders of the Company approve the 

Merger, the Escrow Agreement (as defined herein), this Agreement and the transactions contemplated hereby and thereby; and

      WHEREAS, contemporaneously with the execution and delivery of this Agreement, (i) Leonid Mezhvinsky is entering into the Mezhvinsky Employment Agreement (as defined herein), (ii) Leonid Mezhvinsky is
  entering into the Mezhvinsky Non-Compete Agreement (as defined herein), (iii) Joe Chen is entering into the Chen Non-Compete Agreement (as defined herein), and (iv) Parent and Leonid
  Mezhvinsky, Inna Mezhvinsky, Joe Chen and Jenny Chen are entering into the Lease Amendment (as defined herein), (v) Parent, FP and Sellers are entering into the Amended and Restated Stockholders’ Agreement (as defined herein), (vi) Parent, FP
  and Sellers are entering into the Amended and Restated Registration Rights Agreement (as defined herein) and (vii) Parent, FP and Sellers are entering into the Lockup Agreement (as defined herein), each of which is to take effect upon the Closing
(as defined herein).

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, the parties hereto agree as follows:   

ARTICLE 1

DEFINITIONS

     Section 1.01. Definitions.  

     (a) The following terms, as used herein, have the following meanings:

      “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common
  control with such Person. For the purpose of this definition, the term “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and “under common control with”),
  as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or
  otherwise.

      “Amended and Restated Registration Rights Agreement” means the agreement in the form of Exhibit F hereto.

       “Amended and Restated Stockholders’ Agreement” means the agreement in the form of Exhibit A hereto.

       “Ancillary Documents” means
    the (i) Amended and Restated Stockholders’ Agreement, (ii) Mezhvinsky
    Employment Agreement, 
(iii) Mezhvinsky Non-Compete Agreement, (iv) Chen Non-Compete
Agreement, 

2

  

(v) Lease Amendment, (vi) Amended and Restated Registration Rights Agreement, (vii) Escrow Agreement and (viii) Lockup Agreement.

      “Applicable Law” means, with respect to any Person, any federal, state or local law (statutory, common or otherwise), constitution,
  treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a Governmental Authority that is binding upon or applicable to such Person,
  as amended through the Closing Date unless expressly specified otherwise.  

     “Assumed Debt” means the outstanding principal, any accrued interest and any other amounts outstanding (including any fees,
  penalties or other amounts payable) under certain accounts stated on the Closing Balance Sheet as: (i) Notes Payable – Revolving L.O.C., (ii) Loan from Shareholders, (iii) Notes Payable – Current, (iv) Notes Payable – Prior
  Shareholders, (v) Notes Payable – Machinery & Equipment and (vi) Note Payable.

      “Business Day” means a day, other than Saturday, Sunday or other day on which commercial banks in San Francisco, California are
  authorized or required by Applicable Law to close.

       “California Law” means the California Corporations Code. 

       “Cash Account” means cash and cash equivalents of the Company.

      “Cash Amount” means the quotient obtained by dividing (i) the Cash Consideration by (ii) the Shares.

     
  “Cash Consideration” means $10,463,881.

     
  “Cash Escrow Holdback Amount” means $2,000,000.

      “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, and any rules or
  regulations promulgated thereunder.

      “Chen Non-Compete Agreement” means the agreement in the form of Exhibit D hereto.

      “Chen Persons” means Joe Chen, the Chen Living Trust and the Chen Minors Trust. 

     “Closing Date” means the date on which the Effective Time occurs. 

     “Closing Price” means $7.844
     “Code” means the Internal Revenue Code of 1986, as amended.

3

  

     “Company Balance Sheet” means the audited balance sheet of the Company as of December 31, 2005.

     
  “Company Balance Sheet Date” means December 31, 2005.

      “Company Common Stock” means the shares of common stock, no par value per share, of the Company.

      “Company IP” means all Intellectual Property owned or exclusively licensed to the Company.

      “Delaware Law” means the General Corporation Law of the State of Delaware.

      “Environmental Requirements” means any applicable federal, state, local or foreign law (including, without limitation, common law),
  treaty, judicial decision, regulation, rule, judgment, order, decree, injunction, permit, or governmental restriction or requirement relating to human health and safety, the environment or to pollutants, contaminants, wastes or chemicals or any
  toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substances, wastes or materials.

      “Environmental Permits” means all permits, licenses, franchises, certificates, approvals and other similar authorizations of
  Governmental Authorities required by Environmental Requirements.

      “ERISA” means the Employee Retirement Income Security Act of 1974, as amended and the rules and regulations promulgated thereunder.

      “ERISA Affiliate” of any entity means any other entity which, together with such entity, would be treated as under common control
  pursuant to Section 414 of the Code and the regulations issued thereunder.

     
  “Escrow Holdback” means the Pro Rata Share of the Escrow Fund.

       “Final Cash Escrow Holdback Amount” means $250,000. 

     “Final Determination” means (i) any final determination of liability in respect of a Tax that, under applicable law, is not subject
to further appeal, review or modification through proceedings or otherwise (including the expiration of a statute of limitations or a period for the filing of claims for refunds, amended returns or appeals from adverse determinations), including a
“determination” as defined in Section 1313(a) of the Code or execution of an Internal Revenue Service Form 870AD or (ii) the payment of Tax by Parent or its Affiliates, with respect to any item disallowed or adjusted by a Taxing Authority,
provided that Parent determines that no action should be taken to recoup such payment from the Taxing Authority and the Sellers’ Agent agrees. 

4

  

     “FP” means FP-Ultra Clean, L.L.C.
     “GAAP” means generally accepted accounting principles in the United States of America.

      “Governmental Authority” means any transnational, domestic or foreign federal, state or local, governmental authority, department,
  court, agency or official, including any political subdivision thereof.

      “Hazardous Substances” means any pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable, corrosive,
  reactive or otherwise hazardous substance, waste or material, or any substance, waste or material having any constituent elements displaying any of the foregoing characteristics, including, without limitation, petroleum, its derivatives, by-products
  and other hydrocarbons, and any substance, waste or material regulated under any Environmental Requirements.

      “Intellectual Property” means all trademarks, trade names, service marks, domain names, patents, copyrights, trade secrets, and all
  applications and registrations of such worldwide; and technology (including but not limited to computer software programs, applications, algorithms, models, databases or documentation) inventions, know-how and tangible or intangible proprietary information or materials.

      “Knowledge of Company,” “Company’s knowledge” and any
  similar knowledge qualification in this Agreement means the actual knowledge of each of Leonid Mezhvinsky, Joe Chen and Frank Moreman, after reasonable inquiry (with respect to any particular section of this Agreement) of such individual employed by
  the Company, if any, who (a) has the title of director or a more senior title, and (b) has management responsibility over the functional area of the Company relating to such section of this Agreement. 

     “Lease Amendment” means
the agreement in the form of Exhibit E hereto.

     “Lien” means, with respect to any property or asset, any mortgage, lien, pledge, security interest, hypothecation, option, right of
first refusal, easement, right of way, lease, sublease, license, sublicense, covenant, restriction on transfer or use, title defect, encroachment or other encumbrance or other adverse claim of any kind in respect of such property or asset. For the
purposes of this Agreement, a Person shall be deemed to own subject to a Lien any property or asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to such property or asset. 

     “LLC Act” means the Delaware Limited Liability Company Act. 

5

  

     “Lockup Agreement” means
the agreement in the form of Exhibit H hereto.

     “Material Adverse Effect” means, with respect to any Person, a material adverse effect on the financial condition, business, assets
or results of operations of such Person and its Subsidiaries, taken as a whole; provided that in no event shall any of the following, alone or in combination, be deemed to constitute, nor
shall any of the following be taken into account in determining whether there has been or will be, a Material Adverse Effect with respect to any Person: (A) any change, event, circumstance
or effect (any such item, an “Effect”) resulting from general economic conditions or events affecting the Person’s industry generally but which does not disproportionately
affect the Person in any substantial respect; (B) any Effect to the extent resulting from compliance with the terms and conditions of this Agreement and the Ancillary Documents; (C) any Effect to the extent resulting from the announcement or
pendency of the Mergers, including loss of any employees, customers, suppliers, partners or distributors; (D) any Effect to the extent resulting from general economic, financial or business conditions at Applied Materials, Inc.; or (E) any Effect
resulting from natural disasters, the outbreak or escalation of war, hostilities or terrorist activities, either in the United States or abroad, which does not disproportionately affect the Person in any substantial respect. 

     “Merger Consideration” means
    the sum of (i) the aggregate Cash Amount and (ii) the aggregate Parent Stock
    Amount, collectively  payable or issuable, as the case may be, in respect
    of the Shares pursuant to Section 2.02(a).

      “Mezhvinsky
    Employment Agreement” means the agreement in the form of Exhibit
    B hereto.

      “Mezhvinsky
    Non-Compete Agreement” means the agreement
    in the form of  Exhibit C hereto.

      “Mezhvinsky
    Persons” means Leonid Mezhvinsky, the Mezhvinsky Living Trust, Victor
    Mezhvinsky and the Joshua Trust.

      “1933
    Act” means the Securities Act of 1933, as amended, and the rules
    and regulations promulgated thereunder.

      “1934
    Act” means the Securities Exchange Act of 1934, as amended, and
    the rules and regulations promulgated thereunder.

      “Parent
    Common Stock” means the common stock, par value $0.001 per share,
    of Parent. 

     “Parent Stock Amount” means a number of shares of Parent Common Stock equal to the quotient obtained by dividing (i) the Parent
Stock Consideration by (ii) the Shares. 

6

  

     “Parent Stock Consideration” means 2,471,910 shares of Parent Common Stock.

      “Parent Stock Escrow Holdback Amount” means the number of shares of Parent Common Stock equal to the quotient obtained by dividing
  (i) $1,000,000 by (ii) the Closing Price.

      “Permitted Liens” means (i) liens for taxes and other similar governmental charges and assessments which are not yet due or
  delinquent or which are being contested in good faith (and for which adequate accruals or reserves have been established on the Company Balance Sheet), (ii) liens of landlords and liens of carriers, warehousemen, mechanics and materialmen and other
  like liens arising in the ordinary course of business for sums not yet due and payable, (iii) undetermined or inchoate liens, charges and privileges and any statutory liens, licenses, charges, adverse claims, security interests or encumbrances of
  any nature whatsoever and claimed or held by any Governmental Authority that have not been filed or registered or that are related to obligations that are not due or delinquent, (iv) security given in the ordinary course of business to any public
  utility, Governmental Authority or other statutory or public authority, (v) liens encumbering the landlord’s fee simple title to the Company’s leased real property, (vi) liens encumbering leased or financed equipment, (vii) purchase money
  security interests and (viii) liens which do not materially detract from the value or materially interfere with any present use of the underlying property or assets.

      “Person” means an individual, corporation, partnership, limited liability company, association, trust or other entity or
  organization, including a government or political subdivision or an agency or instrumentality thereof.

      “Pro Rata Share” means with respect to a holder of Shares, the quotient obtained by dividing (i) the number of Shares held by such
  holder by (ii) the number of all Shares.

      “Registered IP” means all U.S. and foreign registrations, and applications thereof, for any Company IP. 

     “Shares” means
all of the outstanding shares of Company Common Stock.

     “Subsidiary” means any entity of which securities or other ownership interests having ordinary voting power to elect a majority of
the board of directors or other Person performing similar functions are at the time directly or indirectly owned by Parent. 

     “Tax Escrow Fund” means the number of shares of Parent Common Stock equal to the quotient obtained by dividing (i) $3,800,000, by
(ii) the Closing Price. 

7

  

     “Tax Escrow Share” means
with respect to the Mezhvinsky Living Trust, 28.71%, with respect to Victor Mezhvinsky,
0.645%, with respect to the Joshua Trust,  0.645%, with respect to the Chen Living
Trust, 63.175%, with respect to the Chen Minors Trust, 3.325%, and with respect
to Frank Moreman, 3.5%.

      “Trust” means
  any of the Mezhvinsky Living Trust, the Chen Living Trust, the Joshua Trust or
  the Chen Minors Trust.

      “Trust Seller” means
  any of Leonid and Inna Mezhvinsky as trustees of the Mezhvinsky Living Trust,
  Joe and Jenny Chen as trustees  of the Chen Living Trust, Victor Mezhvinsky as
  trustee of the Joshua Trust or David Hongyu Wu and Winnie Wei Zhen as trustees
  of the Chen Minors Trust. 

     (b) Each of the following terms is defined in the Section set forth opposite such term: 

	 	
Term
		
Section
	
	 	
368 Reorganization
		
2.14
	
	 	
Accounting Referee
		
9.07
	
	 	
Agreement
		
Preamble
	
	 	
Assumed Debt Downward Adjustment Amount
		
2.07
	
	 	
Assumed Debt Upward Adjustment Amount
		
2.07
	
	 	
Certificates
		
2.04
	
	 	
Claim Certificate
		
12.03
	
	 	
Closing
		
2.01
	
	 	
Closing Balance Sheet
		
2.06
	
	 	
Closing Working Capital
		
2.06
	
	 	
Code
		
Preamble
	
	 	
Company
		
Preamble
	
	 	
Company Audit Expenses
		
2.09
	
	 	
Company Disclosure Schedule
		
Article 4
	
	 	
Company Financial Statements
		
4.08
	
	 	
Company Insurance Policies
		
4.18
	
	 	
Company Securities
		
4.05
	
	 	
Company Stock Options
		
4.05
	
	 	
Confidentiality Agreement
		
8.04
	
	 	
Consent Expenses
		
8.05
	
	 	
Continuing Employees
		
10.02
	
	 	
Damages
		
12.02
	
	 	
Designated Accounting Firm
		
2.06
	
	 	
Downward Adjustment Amount
		
Section 2.07
	
	 	
Effective Time
		
2.01
	
	 	
End Date
		
13.01
	
	 	
Employee Plans
		
4.24
	
	 	
Escrow Account
		
2.12
	
	 	
Escrow Agent
		
2.12
	
	 	
Escrow Agreement
		
2.12
	

8

	 	
Term
		
Section
	
	 	
Escrow Fund
		
2.12
	
	 	
Exchange Agent
		
2.04
	
	 	
Expert Calculations
		
2.06
	
	 	
Final Working Capital

		
2.07
	
	 	
First Merger
		
Preamble
	
	 	
Indemnified Parties
		
12.02
	
	 	
Indemnifying Party
		
12.03
	
	 	
Indemnity Period
		
12.01
	
	 	
Initial Surviving Corporation
		
2.01
	
	 	
Loan Agreement
		
4.28
	
	 	
Loss
		
9.06
	
	 	
Material Consent
		
4.12
	
	 	
Material Contracts
		
4.12
	
	 	
Merger Subsidiaries
		
Preamble
	
	 	
Merger Subsidiary I
		
Preamble
	
	 	
Merger Subsidiary II
		
Preamble
	
	 	
Mergers
		
Preamble
	
	 	
Minimum Working Capital
		
2.07
	
	 	
Necessary IP Rights
		
4.17
	
	 	
Parent
		
Preamble
	
	 	
Parent ESPP
		
10.03
	
	 	
Parent Financials
		
6.05
	
	 	
Parent Indemnitee(s)
		
9.01
	
	 	
Parent SEC Reports
		
6.05
	
	 	
Parent Working Capital Certificate
		
2.06
	
	 	
Permits
		
4.19
	
	 	
Plans
		
10.02
	
	 	
Post-Closing Tax Period
		
9.01
	
	 	
Pre-Closing Tax Period
		
9.01
	
	 	
QSST
		
2.12(b)
	
	 	
Returns
		
9.02
	
	 	
S Corporation Share
		
9.01
	
	 	
Second Effective Time
		
2.01
	
	 	
Second Merger
		
Preamble
	
	 	
Seller(s)
		
Preamble
	
	 	
Seller Dispute Notice
		
2.06
	
	 	
Sellers’ Agent
		
Preamble
	
	 	
Sellers’ Requested Adjustment
		
2.14
	
	 	
Shareholder’s Certificate
		
12.03
	
	 	
Significant Customer
		
4.27
	
	 	
Surviving Entity
		
2.01
	
	 	
Tax
		
9.01
	
	 	
Tax Contest
		
9.06
	
	 	
Tax Escrow Account
		
2.12
	
	 	
Tax Sharing Agreements
		
9.01
	

    9

  

	 	
Term
		
Section
	
	 	
Taxing Authority
		
9.01
	
	 	
Third Party Claim
		
12.03
	
	 	
Third Party Claim Notice
		
12.03
	
	 	
Upward Adjustment Amount
		
2.07
	
	 	
WARN Act
		
Section 4.24
	
	 	
Warranty Breach
		
12.02
	
	 	
Working Capital Downward Adjustment Amount
		
2.07
	
	 	
Working Capital Upward Adjustment Amount
		
2.07
	

     Section 1.02. Other Definitional and Interpretative Provisions. The words “hereof,” “herein” and “hereunder”
and words of like import used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement unless otherwise specified. The captions herein are included for convenience of reference only and shall
be ignored in the construction or interpretation hereof. References to Articles, Sections, Exhibits and Schedules are to Articles, Sections, Exhibits and Schedules, respectively, of this Agreement unless otherwise specified. All Exhibits and
Schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit or Schedule but not otherwise defined therein, shall have the
meaning as defined in this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not
they are in fact followed by those words or words of like import. “Writing,” “written” and comparable terms refer to printing, typing and other means of reproducing words (including electronic media) in a visible form. References
to any statute are to such statute as amended through the Closing Date, unless expressly specified otherwise, and include the rules and regulations promulgated thereunder as amended through the Closing Date, unless expressly specified otherwise.
References to any agreement or contract are to that agreement or contract as amended, modified or supplemented through the date hereof or as of the Closing Date, as the case may be, in accordance with the terms hereof or thereof, as the case may be;
provided that with respect to any other agreement or contract listed on any schedules hereto, any material amendments, modifications or supplements must also be listed in the appropriate
schedule unless otherwise specified. References from or through any date mean, unless otherwise specified, from and including such date and through and including such date, respectively. This Agreement has been negotiated by the parties and their
respective legal counsel, and legal or equitable principles that might require the construction of this Agreement or any provision of this Agreement against the party drafting this Agreement will not apply in any construction or interpretation of
this Agreement. 

10

  

  

    ARTICLE 2

    THE MERGERS

Section 2.01. The Mergers.

     (a) The consummation of the transactions contemplated by this Agreement (the “Closing”) will be held at the offices of Davis Polk & Wardwell, 1600 El Camino Real, Menlo Park, California 94025 (or such other place as the parties may agree) as soon as practicable after the
satisfaction or, to the extent permitted, waiver of the last of the conditions to the Mergers to be satisfied. Immediately following the Closing, the Company and Merger Subsidiary I will file an agreement of merger with the Secretary of State of the
State of California and make all other filings or recordings required by California Law in connection with the First Merger. The First Merger shall become effective at such time (the “Effective Time”) as the agreement of merger is accepted by the Secretary of State of the State of California or at such later time as is specified in the agreement of merger.

      (b) At the Effective Time, Merger Subsidiary I shall be merged with and into the Company in accordance with California Law,
  whereupon the separate existence of Merger Subsidiary I shall cease, and the Company shall be the surviving corporation (the “Initial Surviving Corporation”).

      (c) From and after the Effective Time, the Initial Surviving Corporation shall possess all the rights, powers, privileges and
  franchises and be subject to all of the obligations, liabilities, restrictions and disabilities of the Company and Merger Subsidiary I, all as provided under California Law.

      (d) Immediately following the Effective Time, the Initial Surviving Corporation and Merger Subsidiary II shall file an agreement
  of merger with the Secretary of State of the State of California, a certificate of merger with the Delaware Secretary of State and make all other filings or recordings required by California Law and the LLC Act in connection with the Second Merger.
  The Second Merger shall become effective at such time (the “Second Effective Time”) as the agreement of merger and certificate of merger are duly filed with the Secretaries of
  State of the States of California and Delaware, respectively, or at such later time as may be specified in the agreement of merger and certificate of merger.

      (e) At the Second Effective Time, the Initial Surviving Corporation shall be merged with and into Merger Subsidiary II in
  accordance with California Law and the LLC Act, whereupon the separate existence of the Initial Surviving Corporation shall cease, and Merger Subsidiary II shall be the surviving entity (the “Surviving
  Entity”).

      (f) From and after the Second Effective Time, the Surviving Entity shall possess all the rights, powers, privileges and
  franchises and be subject to all 

11

of the obligations, liabilities, restrictions and disabilities of the Initial Surviving Corporation and Merger Subsidiary II, all as provided under California Law and the LLC Act. 

Section 2.02. Conversion of Shares. At the Effective Time:

      (a) subject to Sections 2.07, 2.10, 2.11, 2.12, 2.14 and 9.08, each Share outstanding immediately prior to the Effective Time
  shall be converted into the right to receive:

      (i) an amount in cash, without interest, equal to the Cash Amount; and   

     (ii) the Parent Stock Amount;

      (b) each share of common stock of Merger Subsidiary I outstanding immediately prior to the Effective Time shall be converted into
  and become one share of common stock of the Initial Surviving Corporation with the same rights, powers and privileges as the shares so converted and shall constitute the only outstanding shares of capital stock of the Initial Surviving Corporation,
  and all of such shares shall be held by Parent.

      Section 2.03. Conversion of Shares in the Second Merger. At the Second Effective Time, (i) each share of common stock of the Initial
  Surviving Corporation outstanding immediately prior to the Second Effective Time shall be converted into and become one unit of the Surviving Entity and shall constitute the only outstanding equity interests of the Surviving Entity and all of such
  units shall be held by Parent and (ii) each unit of Merger Subsidiary II outstanding immediately prior to the Second Effective Time shall be cancelled.

      Section 2.04. Surrender and Payment. (a) Parent will act as exchange agent (the “Exchange
  Agent”) for the purpose of exchanging certificates representing Shares (the “Certificates”) for the Merger Consideration (less the aggregate
  amount of Escrow Holdback and the Tax Escrow Fund, which Parent shall deliver to the Escrow Agent pursuant to Section 2.12) . Prior to the Closing Date, the Exchange Agent shall deliver or cause to be delivered to each Seller a letter of
  transmittal, in a form reasonably acceptable to the parties, and instructions for use in effecting the surrender of the Certificates in exchange for such Seller’s portion of the Merger Consideration. On the Closing Date, Sellers’ Agent
  will surrender the Certificates to the Exchange Agent for cancellation together with a letter of transmittal and instructions (which shall specify that the delivery shall be effected, and risk of loss and title shall pass, only upon proper delivery
  of the Certificates to the Exchange Agent) for use in such exchange. 

     (b) Upon surrender to the Exchange Agent of a Certificate, together with a properly completed letter of transmittal, the Exchange
Agent shall deliver on the Closing Date to each holder of Shares that have been converted into the right to receive a portion of the Merger Consideration pursuant to Section 2.02(a),

12

  

the portion of the Merger Consideration payable for each Share represented by such Certificate as follows, subject to any adjustment pursuant to Sections 2.07, 2.10, 2.11, 2.12, 2.14 and 9.08:

        (A) the aggregate Cash Amount payable pursuant to Section 2.02(a)(i) for the Shares represented by such Certificate (less the holder’s Pro
    Rata Share of the Cash Escrow Holdback Amount, which the Exchange Agent shall deliver to the Escrow Agent pursuant to Section 2.12); and

        (B) a certificate representing the number of whole shares of Parent Common Stock that the holder of such Certificate has the right to receive
    pursuant to Section 2.02(a)(ii) (less the holder’s (i) Pro Rata Share of the Parent Stock Escrow Holdback Amount and (ii) Tax Escrow Share of the Tax Escrow Fund, which the Exchange Agent shall deliver to the Escrow Agent, pursuant to Section
    2.12);   

Until so surrendered, each Certificate shall represent after the Effective Time for all purposes only the right to receive the portion of the Merger Consideration into which the Shares represented by such Certificate have been
    converted.

      (c) If any portion of the Merger Consideration is to be delivered pursuant to this Section 2.04 to a Person other than the Person
  in whose name the surrendered Certificate is registered, it shall be a condition to such delivery that the Certificate so surrendered shall be properly endorsed or otherwise be in proper form for transfer, and that the Person requesting such
  delivery shall pay to the Exchange Agent any transfer or other taxes required as a result of such delivery to a Person other than the registered holder of such Certificate, or establish to the reasonable satisfaction of the Exchange Agent that such
  tax has been paid or is not payable.

      (d) After the Effective Time, there shall be no further registration of transfers of Shares. If, after the Effective Time, a
  Certificate is presented to the Surviving Entity, it shall be canceled and exchanged for the portion of the Merger Consideration into which the Shares represented by such Certificate have been converted in accordance with the procedures set forth in
  this Article 2. 

     (e) Parent shall not be liable to any holder of Shares for any amount paid to a public official pursuant to applicable abandoned
property, escheat or similar laws. Immediately prior to such time when amounts remaining unclaimed by holders of Shares would otherwise escheat to or become property of any Governmental Authority, such unclaimed amounts shall become, to the extent
permitted by Applicable Law in effect at such time, the property of Parent free and clear of any claims or interest of any Persons previously entitled thereto. 

13

  

     (f) Any portion of the Merger Consideration made available to the Exchange Agent pursuant to Section 2.05 to pay for Shares for
which dissenter’s rights have been perfected shall be returned to Parent, upon demand. 

     Section 2.05. Dissenting Shares. Notwithstanding Section 2.02, Shares outstanding immediately prior to the Effective Time and held by a
holder who has not voted in favor of the First Merger or consented thereto in writing and who has demanded dissenters’ rights for such Shares in accordance with California Law shall not be converted into a right to receive any Merger
Consideration, but the holder thereof shall be entitled only to such rights as are provided by California Law, unless such holder fails to perfect, withdraws or otherwise loses his or her right to dissent. If, after the Effective Time, such holder
fails to perfect, withdraws or loses his or her right to dissent, such Shares shall be treated as if they had been converted as of the Effective Time into a right to receive the applicable portion of Merger Consideration. The Company shall give
Parent prompt notice of any demands received by the Company for dissenters’ rights with respect to any Shares, and Parent shall have the right to participate in all negotiations and proceedings with respect to such demands. Except with the
prior written consent of Parent, which shall not be unreasonably withheld, the Company shall not make any payment with respect to, or settle or offer to settle, any such demands. 

     Section 2.06. Closing Balance Sheet.
     (a) As promptly as practicable, but no later than 90 days after the Closing Date, Parent will cause to be prepared, in a manner
consistent with the Company’s accounting policies and practices as applied in the preparation of the Company’s financial statements for fiscal year 2005, and delivered to the Sellers’ Agent an unaudited balance sheet of the Company as
of the time immediately prior to the Closing (the “Closing Balance Sheet”), and a certificate based on such Closing Balance Sheet setting forth Parent’s calculation of Closing

Working Capital (the “Parent Working Capital Certificate”). “Closing Working Capital” means the excess of
consolidated current assets (excluding the Cash Account, which the Company (or Parent) shall distribute to Sellers either prior to or within two Business Days after the Closing Date) over consolidated current liabilities (excluding the Assumed Debt
and the Company Audit Expenses) of the Company as shown on the Closing Balance Sheet. Any bank overdrafts which represent checks made out to suppliers but not yet presented to the bank, will be included as current liabilities in the calculation of
Closing Working Capital. All other bank overdrafts that have not been paid by the Company will be considered part of Assumed Debt. For purposes of clarification, all bank overdrafts that have not been paid by the Company will be recognized in either
Closing Working Capital or Assumed Debt. 

     (b) If the Sellers’ Agent disagrees with Parent’s calculation of Closing Working Capital set forth in the Parent
Working Capital Certificate delivered pursuant to Section 2.06(a), the Sellers’ Agent may, within 30 days after delivery 

14

  

of the Closing Balance Sheet and the Parent Working Capital Certificate, deliver a notice to Parent disagreeing with such calculation and setting forth the Sellers’ Agent’s calculation of Closing Working Capital (the
“Seller Dispute Notice”). The Seller Dispute Notice shall specify those items or amounts as to which the Sellers’ Agent disagrees and the basis for such disagreement, and the
Sellers’ Agent shall be deemed to have agreed with all other items and amounts contained in the Closing Balance Sheet and the Parent Working Capital Certificate delivered pursuant to Section 2.06(a) . 

     (c) If a Seller Dispute Notice shall be delivered pursuant to Section 2.06(b), Parent and Sellers’ Agent shall, during the
30 days following such delivery, use all reasonable efforts to reach agreement on the disputed items or amounts in order to determine, as may be required, the amount of Closing Working Capital, which amount shall not be less than the amount set
forth in the Parent Working Capital Certificate delivered pursuant to Section 2.06(a) or more than the amount set forth in the Seller Dispute Notice delivered pursuant to Section 2.06(b) . If, during such period, Parent and Sellers’ Agent are
unable to reach such agreement, they shall promptly thereafter (and not later than 15 days thereafter) retain a firm or independent accountants of nationally recognized standing reasonably satisfactory to Parent and the Sellers’ Agent (who
shall not have any material relationship with Parent or Sellers) (the “Designated Accounting Firm”), promptly to review and resolve the disputed items and amounts of Closing
Working Capital. In connection with the resolution of any such dispute by the Designated Accounting Firm: (i) the Designated Accounting Firm shall determine Closing Working Capital in a manner consistent with the Company’s accounting policies
and practices as applied in the preparation of the Company’s financial statements for fiscal year 2005, within 30 days of the referral of the dispute to the Designated Accounting Firm; (ii) the Designated Accounting Firm shall consider only
those items or amounts in the Closing Balance Sheet or the Parent Closing Working Capital Certificate as to which the Sellers’ Agent has disagreed; (iii) each of Parent and the Sellers’ Agent shall have a reasonable opportunity to confer
or meet with the Designated Accounting Firm to provide its views as to any disputed issues with respect to the calculation of Closing Working Capital; provided, that no meetings, discussions
or communications shall occur with the Designated Accounting Firm except in the presence of both Parent and Sellers’ Agent; (iv) copies of all documents and information provided to, and correspondence with, the Designated Accounting Firm by
either Parent or Sellers’ Agent shall be provided simultaneously to the other party; (v) upon making its final determination of Closing Working Capital, the Designated Accounting Firm shall deliver a copy of its calculations (the
“Expert Calculations”) to Parent and the Sellers’ Agent; and (vi) the determination of Closing Working Capital made by the Designated Accounting Firm shall be final and
binding on Parent, Sellers and the Sellers’ Agent for all purposes, absent manifest error. The costs of the Designated Accounting Firm shall be borne by Parent if the difference between Final Working Capital and Parent’s calculation of
Closing Working Capital delivered pursuant to Section 2.06(a) is greater than the difference between Final Working Capital and Sellers’ 

15

  

Agent’s calculation of Closing Working Capital delivered pursuant to Section 2.06(b), and by Sellers in accordance with their Pro Rata Share if the first such difference is less than the second such difference and otherwise
equally by Parent and Sellers in accordance with their Pro Rata Share.

      (d) Parent and the Company agree that they will, and agree to direct their respective independent accountants to, cooperate and
  assist in the preparation of the Closing Balance Sheet and the calculation of Closing Working Capital and in the conduct of the reviews referred to in this Section 2.06, including without limitation, the making available to the extent necessary of
  books, records, work papers and personnel.

      Section 2.07. Adjustment of Merger Consideration. (a) For purposes of this Section 2.07, the following terms have the following meanings:

      (i) “Assumed Debt Downward Adjustment Amount” means the amount, if any, by
  which Assumed Debt exceeds $13,000,000;

      (ii) “Assumed Debt Upward Adjustment Amount” means the amount, if any, by
  which $13,000,000 exceeds Assumed Debt;

      (iii) “Working Capital Downward Adjustment Amount” means the amount, if
  any, by which Minimum Working Capital exceeds Final Working Capital; and

      (iv) “Working Capital Upward Adjustment Amount” means the amount, if any,
  by which Final Working Capital exceeds Minimum Working Capital.   

(b)

      (i) If (A) the sum of the Assumed Debt Upward Adjustment Amount (if any) and the Working Capital Upward Adjustment Amount (if any) (such sum,
  the “Upward Adjustment Amount”) exceeds (B) the sum of the Assumed Debt Downward Adjustment Amount (if any) and the Working Capital Downward Adjustment Amount (if any) (such sum,
  the “Downward Adjustment Amount”), then, subject to Section 2.07(c), Parent shall increase the Merger Consideration in the amount by which the Upward Adjustment Amount exceeds the
  Downward Adjustment Amount; and

      (ii) if the Downward Adjustment Amount exceeds the Upward Adjustment, then, subject to Section 2.07(c), Parent shall decrease the Merger
  Consideration in the amount by which the Downward Adjustment Amount exceeds the Upward Adjustment Amount.

      (c) If the amount of increase to the Merger Consideration resulting from application of Section 2.07(b)(i) (or decrease resulting
  from application of Section 

16

2.07(b)(ii)) is (i) equal to or less than $1,000,000, then Parent shall increase (or decrease, as applicable) the Parent Stock Consideration by such amount; or (ii) greater than $1,000,000, then Parent shall increase (or decrease,
as applicable) the Parent Stock Consideration by $1,000,000 and the Cash Consideration by the amount in excess of $1,000,000; provided that the total number of shares of Parent Stock
Consideration to be issued pursuant to this Agreement shall not be more than 19.9% of the total number of shares of Parent Common Stock outstanding immediately prior to the Effective Time. 

     “Minimum Working
      Capital” means $10,713,000. “Final Working Capital” means
      Closing Working Capital as shown in Parent’s calculation delivered
      pursuant to Section 2.06(a), if no Seller Dispute Notice is duly delivered
      pursuant to Section 2.06(b); or if a Seller Dispute Notice is duly  delivered,
      as finally determined pursuant to Section 2.06(c); provided that,
      in no event shall Final Working Capital be less than Parent’s calculation
      of Closing Working Capital set  forth in the Parent Working Capital Certificate
      delivered pursuant to Section 2.06(a) or more than the Sellers’ Agent’s
      calculation of Closing Working Capital set forth in the Seller Dispute
Notice delivered pursuant to Section 2.06(b).

      (d) Any
  adjustment made pursuant to Section 2.07(c) shall occur after the determination
  of Final Working Capital and shall be  made, whether by Parent or Sellers,
  at a mutually convenient time and place within ten days after such determination; provided that,
in each case:

        (i) any
    adjustment to Parent Stock Consideration made pursuant to Section 2.07(c) shall
  be made based upon the Closing Price;

        (ii) in
    the event of (A) any decrease to Parent Stock Consideration made pursuant to
    Section 2.07(c), Parent shall withdraw from the Escrow  Account in accordance
    with the provisions of the Escrow Agreement the number of shares of Parent
    Common Stock equal to the amount of such adjustment, and (B) any increase to
    Parent Stock Consideration made pursuant to Section 2.07(c), Parent shall
    deliver to each Seller, in accordance with each Seller’s Pro Rata Share,
    a stock certificate in such Seller’s name representing the number of shares
    of Parent Common Stock issuable subject to such adjustment; 
  

        (iii) in the event of any (A) decrease to Cash Consideration made pursuant to Section 2.07(c), Parent shall withdraw from the Escrow Account in
    accordance with the provisions of the Escrow Agreement the amount of such adjustment, and (B) increase to Cash Consideration made pursuant to Section 2.07(c), Parent shall deliver to each Seller as promptly as practicable, but in no event later than
    two Business Days, a check in such Seller’s name (or wire transfer in accordance with such Seller’s instructions) for such Seller’s Pro Rata Share of such adjustment; and

17

  

        (iv) the amount of any adjustment made pursuant to Sections 2.07(b) and 2.07(c) shall bear simple interest from (and including) the Effective
    Time to (but excluding) the date of payment at a rate per annum equal to the Prime rate as published in the Wall Street Journal, Eastern Edition in effect from time to time during the period from the Effective Time to the date of payment. Such
    interest shall be payable at the same time as the payment to which it relates and shall be calculated daily on the basis of a year of 365 days and the actual number of days elapsed. 

     Section 2.08. Sellers’ Agent.
     (a) By virtue of the adoption of this Agreement and the approval of the First Merger by Sellers, each Seller hereby agrees to
irrevocably appoint Leonid Mezhvinsky as his or her agent for purposes of (i) the surrender of Certificates pursuant to Section 2.04 and the receipt of certificates and documents at the Closing, (ii) the determination of Final Working Capital
pursuant to Section 2.06, (iii) the determination and receipt of certificates and documents related to any adjustment to the Merger Consideration pursuant to Section 2.07, (iv) the resolution of any disputes for which Parent may seek indemnification
pursuant to Article 9 or Article 12, (v) the enforcement of any rights Sellers may have against Parent or the Surviving Entity and the resolution of any disputes, in each case, under this Agreement or the Ancillary Documents, and (vi) taking all
actions necessary or appropriate in the reasonable judgment of the Sellers’ Agent for the accomplishment of the foregoing. Leonid Mezhvinsky hereby accepts his appointment as the Sellers’ Agent. Parent shall be entitled to deal exclusively
with the Sellers’ Agent on all matters relating to clauses (i) through (vi) of this Section and Parent and the Escrow Agent (as defined herein) shall be entitled to rely conclusively on any document executed or purported to be executed on
behalf of any Seller by the Sellers’ Agent, and on any other action taken or purported to be taken on behalf of any Seller by the Sellers’ Agent, as fully binding upon such Seller, and Sellers hereby agree that any decision, act, consent
or instruction of the Sellers’ Agent with respect to the matters relating to clauses (i) through (vi) of this Section shall constitute a decision of all Sellers and shall be final, binding and conclusive upon each and every Seller. If the
Sellers’ Agent shall die, become disabled or otherwise be unable to fulfill his responsibilities as agent of the Sellers, then the Sellers shall, within ten days after such death or disability, appoint a successor agent and, promptly
thereafter, shall notify Parent of the identity of such successor. Any such successor shall become the “Sellers’ Agent” for purposes of this Agreement. If for any reason there is no Sellers’ Agent at any time, all references
herein to the Sellers’ Agent shall be deemed to refer to Sellers. No bond shall be required of the Sellers’ Agent, and the Sellers’ Agent shall receive no compensation for his services. Notices or communications to or from the
Sellers’ Agent shall constitute notice to or from each of Sellers.

      (b) The Sellers’ Agent shall not be liable to any Sellers for any act done or omitted hereunder as the Sellers’ Agent
  while acting in good faith and in the 

18

exercise of reasonable judgment, and any act done or omitted pursuant to the advice of counsel shall be conclusive evidence of such good faith. The Sellers’ Agent shall have only the duties expressly stated in this Agreement
and shall have no other duties, express or implied. The Sellers’ Agent may engage attorneys, accountants and other professionals and experts as he determines necessary. The Sellers’ Agent may in good faith rely conclusively upon
information, reports, statements and opinions prepared or presented by such professionals, and any action reasonably taken by the Sellers’ Agent based on such reliance shall be deemed conclusively to have been taken in good faith and in the
exercise of reasonable judgment. Sellers shall indemnify the Sellers’ Agent and hold him harmless against any loss, liability or expense incurred without gross negligence or bad faith on the part of the Sellers’ Agent and arising out of or
in connection with the acceptance or administration of his duties hereunder; provided, that no liability of any Seller pursuant to this sentence shall exceed such Seller’s Pro Rata
Share of such liability. The Sellers’ Agent shall be reimbursed for reasonable expenses incurred in the performance of his duties (including, without limitation, the reasonable fees of attorneys, accountants and other professionals and
experts), and all such expenses shall be paid by the Sellers to the extent of their Pro Rata Share of such expenses.

      Section 2.09. Company Audit Expenses. Within 10 Business Days after receipt of an invoice for the Company Audit Expenses (as described
  below), but in no event earlier than the Closing, Parent shall pay by wire transfer of immediately available funds, the Company Audit Expenses, in accordance with each Seller’s Pro Rata
  Share; provided that by the Closing Date, the audited accounts for all periods (A) meet all SEC requirements for filing as described in Regulation 210.3.05 of Regulation S-X under the 1933
  Act and shall comply with all other applicable requirements of the 1933 Act and the 1934 Act and (B) are completed and delivered, along with the reasonable assurance of Moss Adams LLP to provide, upon reasonable request, the consent to use the
  audited accounts in any required Parent SEC filings. The Sellers’ Agent shall provide an invoice for the Company Audit Expenses no later than 30 days after the date of this Agreement.
“Company Audit Expenses” shall mean 50% of the Company’s outside auditor’s fees for the fiscal year 2002 audit of the Company, together with 50% of any auditor’s
  fees associated with preparing the existing 2003 and 2004 audited accounts for presentation in Parent’s SEC filings. In no case shall Company Audit Expenses exceed $300,000. 

     Section 2.10. Fractional Shares. No fractional shares of Parent Common Stock shall be issued in the First Merger. All fractional shares of
Parent Common Stock that a holder of shares of Company Common Stock would otherwise be entitled to receive as a result of the First Merger shall be aggregated, and if a fractional share results from such aggregation, such holder shall be entitled to
receive, in lieu thereof, an amount in cash, without interest, determined by multiplying the Closing Price by the fraction of a share of Parent Common Stock to which such holder would otherwise have been entitled. 

19

  

     Section 2.11. Withholding Rights. Each of the Surviving Entity, Parent, the Exchange Agent and the Escrow Agent shall be entitled to deduct
and withhold from the consideration otherwise payable to any Person such amounts as it is required to deduct and withhold with respect to the making of such payment under any provision of federal, state, local or foreign tax law. If any amounts are
so withheld, such amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding were made. 

     Section 2.12. Escrow.
     (a) Prior to or simultaneously with the Effective Time, the Sellers’ Agent and Parent shall enter into an escrow agreement
with Wells Fargo Bank National Association (the “Escrow Agent”) substantially in the form of Exhibit G hereto (the “Escrow
Agreement”). At the Effective Time, Parent shall withhold from the Merger Consideration and deposit with the Escrow Agent the Cash Escrow Holdback Amount and a certificate representing the Parent Stock Escrow
Holdback Amount (together the “Escrow Fund”), to be held in an account (the “Escrow Account”) governed by the
terms and conditions of the Escrow Agreement and managed by the Escrow Agent. The Escrow Account shall be available for withdrawal by Parent of the amount required by any adjustment to the Merger Consideration set forth in Section 2.07, any claim
for Damages of an Indemnified Party pursuant to Section 12.02, and any claim for Losses of a Parent Indemnitee pursuant to Section 9.06. Parent shall cause to be distributed to each Seller such Seller’s Pro Rata Share of (i) the Parent Stock
Escrow Holdback Amount and (ii) the Cash Escrow Holdback Amount less the Final Cash Escrow Holdback Amount as promptly as practicable, but in no event more than two Business Days, after the determination of Final Working Capital and the making of
any adjustment to the Merger Consideration pursuant to Section 2.07. The Escrow Account shall terminate and Parent shall cause to be distributed to each Seller such Seller’s Pro Rata Share of the Final Cash Escrow Holdback Amount remaining, if
any, in the Escrow Account promptly after April 16, 2007. 

     (b) At the Effective Time, Parent shall withhold from the Merger Consideration each Seller’s Tax Escrow Share of the Tax
Escrow Fund and deposit it with the Escrow Agent to be held in an account (the “Tax Escrow Account”) governed by the
terms and conditions of the Escrow Agreement and managed by the Escrow Agent. The Tax Escrow Account shall only be available for withdrawal by Parent of the amount required by any claim for Losses of a Parent Indemnitee pursuant to Section 9.06(h) .
The Tax Escrow Account shall terminate and Parent shall cause to be distributed to each Seller such Seller’s Tax Escrow Share of the Tax Escrow Fund remaining, if any, in the Tax Escrow Account as promptly as practicable, but in no event more
than ten Business Days, after the earliest of (i) the receipt of a private letter ruling from the Internal Revenue Service pursuant to Section 1362(f) of the Code, reasonably acceptable to Parent, waiving termination of S corporation status with
respect to the failure of the Chen Minors Trust to be treated as a qualified subchapter S trust, as defined in

20

  

Section 1361(d)(3) of the Code, that has made a valid election pursuant to Section 1361(d)(2) of the Code (a “QSST”), and providing inadvertent termination
relief retroactively for all years for which such terminating event was effective, (ii) a Final Determination with respect to all Taxes described in Section 9.06(h), and (iii) the expiration of the full period of the applicable statute of
limitations with respect to all Taxes described in Section 9.06(h) (giving effect to any waiver, mitigation, or extension thereof).

      Section 2.13. Lost Certificates. If any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact
  by the Person claiming such Certificate to be lost, stolen or destroyed and, if required by the Surviving Entity, the posting by such Person of a bond, in such reasonable amount as the Surviving Entity may direct, as indemnity against any claim that
  may be made against the Surviving Entity with respect to such Certificate, the Exchange Agent will pay, in exchange for such lost, stolen or destroyed Certificate to such Person, the Merger Consideration to be paid in respect of the Shares
  represented by such Certificate, as contemplated by this Article 2.

      Section 2.14. Parent Stock Consideration Adjustment. If, prior to any adjustment made pursuant to Section 2.07 of this Agreement, Sellers
  determine, in their sole discretion, that it is advisable in order to ensure the status of the Mergers as a reorganization within the meaning of Section 368 of the Code (a “368 Reorganization”), the Sellers may elect to increase the Parent Stock Consideration and correspondingly decrease the Cash Consideration to a maximum amount of $2.5 million based on the Closing Price (which amount shall also reflect any adjustment
  made pursuant to Section 2.07 of this Agreement) (the “Sellers’ Requested Adjustment”); provided that no Sellers’ Requested Adjustment may occur unless the Closing Price is less than $6.00 and provided further, that the total
  number of shares of Parent Stock Consideration to be issued pursuant to this Agreement shall not be more than 19.9% of the total number of shares of Parent Common Stock outstanding immediately prior to the Effective Time. For purposes of
  clarification, if Parent Stock Consideration has increased $1.0 million pursuant to Section 2.07 of this Agreement, Sellers may elect to increase Parent Stock Consideration a further $1.5
  million and correspondingly decrease the Cash Consideration $1.5 million under the Seller’s Requested Adjustment; if Parent Stock Consideration has decreased $1.0 million pursuant to Section 2.07 of this Agreement, Sellers may increase Parent Stock Consideration by $3.5 million and correspondingly decrease the Cash Consideration by $3.5 under the Sellers’ Requested Adjustment. 

ARTICLE 3

INITIAL SURVIVING CORPORATION; THE SURVIVING ENTITY

     Section 3.01. Articles of Incorporation and Bylaws of the Initial Surviving Corporation. At the Effective Time, (i) the articles of
incorporation of the Initial Surviving Corporation as in effect immediately prior to the Effective Time shall 

21

  

be amended and restated in their entirety to be identical to the articles of incorporation of Merger Subsidiary I as in effect immediately prior to the Effective Time, until thereafter amended as provided under California Law and
such articles of incorporation; provided that Article I of the articles of incorporation of the Initial Surviving Corporation shall be amended to read as follows: “The name of the
corporation is Sieger Engineering, Inc.”, and (ii) the bylaws of Merger Subsidiary I as in effect immediately prior to the Effective Time shall be the bylaws of the Initial Surviving Corporation (other than any express references to the name of
Merger Subsidiary I in such bylaws, which shall be amended to refer to the Initial Surviving Corporation) until thereafter amended in accordance with California Law and as provided in the articles of incorporation of the Initial Surviving
Corporation and such bylaws.

      Section 3.02. Directors and Officers. The directors and officers of Merger Subsidiary I immediately prior to the Effective Time shall be the
  directors and officers of the Initial Surviving Corporation, each to hold such office in accordance with the provisions of California Law and the articles of incorporation and bylaws of the Initial Surviving Corporation
provided  that at the Effective Time, Leonid Mezhvinsky shall also become a director of the Initial Surviving Corporation.

      Section 3.03. Certificate of Formation and Limited Liability Company Agreement. The certificate of formation and limited liability company
  agreement of Merger Subsidiary II in effect immediately prior to the Second Effective Time shall be the certificate of formation and limited liability company agreement of the Surviving Entity unless and until amended in accordance with their terms
  and applicable law; provided that at the Second Effective Time, the certificate of formation and limited liability company agreement shall provide that the name of the Surviving Entity is
“UCT Sieger Engineering LLC.”

      Section 3.04. Managers and Officers. The managers and officers of Merger Subsidiary II immediately prior to the Second Effective Time shall
be the managers and officers of the Surviving Entity, each to hold office in accordance with the provisions of the LLC Act and the certificate of formation and limited liability company agreement of the Surviving Entity; provided that at the Second Effective Time, Leonid Mezhvinsky shall also become a manager of the Surviving Entity.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES
OF THE COMPANY

     With such exceptions as are disclosed in the Schedule attached to this Agreement (the “Company Disclosure Schedule”) (with specific
reference to the Section of this Agreement to which information included in the Company Disclosure Schedule relates, it being agreed that any information disclosed with respect to one Section shall be deemed disclosed with respect to other Sections
to 

22

  

the extent that such information is disclosed in such a way as to make the relevance of such information to such other Sections reasonably apparent), the Company and, with respect to Sections 4.01(b), 4.02(b) and 4.04, Leonid
Mezhvinsky solely on behalf of the Mezhvinsky Living Trust and the Joshua Trust, and Joe Chen, solely on behalf of the Chen Living Trust and the Chen Minor Trust, represent and warrant to Parent as of the date hereof and as of the Closing Date that:

     Section 4.01. Existence and Power.
     (a) The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of
California and has all corporate powers and all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted. The Company is duly qualified to do business as a foreign corporation
and is in good standing in each jurisdiction where such qualification is necessary, except for those jurisdictions where failure to be so qualified would not, individually or in the aggregate, have a Material Adverse Effect on the Company. The
Company has heretofore delivered to Parent or its representatives true and complete copies of the articles of incorporation and bylaws of the Company as currently in effect. The Company is not in violation of any of the provisions of its articles of
incorporation or bylaws. 

     (b) Each Trust is a statutory trust duly created and validly existing and is being administered under the laws of the state of
California and each Trust Seller has all power to enter into this Agreement and, as applicable, all Ancillary Documents. 

     Section 4.02. Authorization.
     (a) The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the
transactions contemplated hereby are within the Company’s corporate powers and have been duly authorized by all necessary corporate action on the part of the Company. The affirmative vote of the holders of a majority of the Shares is the only vote of the holders of any of the Company’s capital stock necessary in connection with the consummation of the First Merger. This Agreement, assuming the due authorization,
execution and delivery by the other parties hereto, constitutes a valid and binding agreement of the Company enforceable against the Company in accordance with its terms. 

     (b) The execution, delivery and performance by each Seller of this Agreement and the consummation by each Seller of the
transactions contemplated hereby have been duly authorized by all necessary action on the part of such Seller and are within the power of such Seller if such Seller is a Trust Seller. This Agreement, assuming the due authorization, execution and
delivery by the other 

23

  

parties hereto, constitutes a valid and binding agreement of each Seller, enforceable against such Seller in accordance with its terms.

      Section 4.03. Governmental Authorization. The execution, delivery and performance by Sellers and the Company of this Agreement and the
  consummation by Sellers and the Company of the transactions contemplated hereby require no consent, approval or other authorization be obtained from, or filing to be made with, any Governmental Authority, other than (i) the filing of, with respect
  to the Mergers, as applicable, an agreement of merger with the Secretary of State of the State of California and a certificate of merger with the Delaware Secretary of State and (ii) any actions or filings the absence of which would not be
  reasonably expected to have, individually or in the aggregate, a Material Adverse Effect on the Company or materially impair the ability of Sellers or the Company to consummate the transactions contemplated by this Agreement. 

     Section 4.04. Noncontravention. The execution, delivery and performance by Sellers and the Company of this Agreement and the consummation of
the transactions contemplated hereby do not and will not (i) contravene, conflict with, violate or result in any violation or any breach of any provision of the articles of incorporation or bylaws of the Company or any provision of the constitutive
documents of a Trust, (ii) assuming compliance with the matters referenced in Section 4.03, contravene, conflict with, violate or result in any violation or any breach of any material provision of Applicable Law, (iii) require any consent or other
action by any Person under, constitute a material default under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation or the loss of any material benefit to which the Company is entitled under any
provision of any material agreement or other material instrument binding upon Sellers or the Company or any material license, franchise, permit, certificate, approval or other similar authorization affecting, or relating in any way to, the assets or
business of the Company or (iv) result in the creation or imposition of any Lien on any material asset of the Company. 

     Section 4.05. Capitalization.

     (a) The authorized capital
stock of the Company consists of 100,000,000 shares
of Company Common Stock. As of the date hereof, there are outstanding 39,999,960
Shares, all of which are owned by Sellers, and employee stock options  to purchase
an aggregate of 3,581,440 shares of Company Common Stock. All Shares have been
duly authorized and validly issued and are fully paid and nonassessable. Schedule
4.05 of the Company Disclosure Schedule contains a complete and correct list
 of each outstanding employee stock option to purchase shares of Company Common
Stock, including the holder, date of grant, exercise price, vesting schedule
and number of shares of Company Common Stock subject thereto. 

24

  

     (b) As of the date hereof, and except as set forth in this Section 4.05, there are no outstanding (i) shares of capital stock or
voting securities of the Company other than the Shares, (ii) securities of the Company convertible into or exchangeable for shares of capital stock or voting securities of the Company or (iii) options, warrants or other rights to acquire from the
Company, or other obligation of the Company to issue, any capital stock, voting securities or securities convertible into or exchangeable for capital stock or voting securities of the Company (the items in clauses (i), (ii) and (iii) being referred
to collectively as the “Company Securities”). There are no outstanding obligations of the Company to repurchase, redeem or otherwise acquire any Company Securities.

      (c) At the Effective Time, all outstanding options to purchase the Company’s equity securities granted pursuant to any
  option or compensation plan or agreement (“Company Stock Options”) will terminate, expire and be of no further force or effect pursuant to the terms of the applicable plan or
  agreement and the holders of such options will have no rights with respect thereto and be entitled to no consideration in connection with such termination.

      (d) None of the Shares or Company Securities were issued in violation of the 1933 Act, California Law, or other state securities
  laws or regulations or any preemptive rights.

      Section 4.06. Ownership of Shares. Each Seller is the record and beneficial owner of those Shares set forth opposite such Seller’s name
  on Schedule 4.06 of the Company Disclosure Schedule, free and clear of any Lien and any other limitation or restriction (including any restriction on the right to vote, sell or otherwise dispose of the Shares) except for such restrictions imposed by
  applicable U.S. federal and state securities laws.

      Section 4.07. No Subsidiaries. The Company does not have any Subsidiaries or any equity interest in any other entity. 

     Section 4.08. Financial Statements. The audited balance sheets as of December 31, 2004 and 2005 and the related audited statements of income
and cash flows for each of the years ended December 31, 2004 and 2005 and the Company Balance Sheet and the related unaudited interim statements of income and cash flows for the three months ended March 31, 2006 of the Company (collectively, the
“Company Financial Statements”) fairly present in all material respects, in conformity with GAAP (other than the absence
of footnotes in the case of unaudited financial statements) applied on a consistent basis (except as may be indicated in the notes thereto), the financial position of the Company as of the dates thereof and its consolidated results of operations and
cash flows for the periods then ended (subject to normal year-end adjustments in the case of any unaudited interim financial statements). The Company has delivered to Parent or its representatives true and complete copies of the Company Financial
Statements.

25

  

     Section 4.09. Absence of Certain Changes. Since December 31, 2005, the business of the Company has been conducted in the ordinary course
consistent with past practices and there has not been:

      (a) any event, occurrence, development or state of circumstances or facts which, individually or in the aggregate, has had or
  would reasonably be expected to have a Material Adverse Effect on the Company.

      (b) any declaration, setting aside or payment of a dividend or other distribution with respect to any shares of capital stock of
  the Company, or any repurchase, redemption or other acquisition by the Company of any outstanding shares of capital stock or other securities of the Company (other than the distribution of the Cash Account, which amounts shall be distributed to
  Sellers either prior to or within two Business Days after the Closing Date);

      (c) any amendment of any material term of any outstanding security of the Company;

      (d) any incurrence, assumption or guarantee by the Company of any indebtedness for borrowed money in excess of $50,000;

      (e) any creation or other incurrence by the Company of any Lien (other than a Permitted Lien) on any asset other than in the
  ordinary course of business consistent with past practices;

      (f) any making of any loan (other than reimbursement of expenses of employees in the ordinary course of business), advance or
  capital contributions to or investment in any Person (including any Affiliate) in an amount greater than $5,000 to any such Person or greater than $25,000 in the aggregate to all Persons;

      (g) any material damage, destruction or other casualty loss (whether or not covered by insurance) affecting the business or
  assets of the Company;

      (h) any transaction or commitment made, or any contract or agreement entered into, by the Company relating to its assets or
  business (including the acquisition or disposition of any assets) involving payments or obligations in excess of $50,000, other than transactions, commitments, contracts or agreements made in the ordinary course of business consistent with past
  practices and those contemplated by this Agreement;

      (i) any relinquishment by the Company of any material right under a contract;

      (j) any change in any method of accounting or accounting practice by the Company, except as required by concurrent changes in
  GAAP;

      (k) any (i) employment, deferred compensation, severance, retirement or other similar agreement entered into with any director,
  officer or employee of 

26

the Company (or any material amendment to any such existing agreement), (ii) grant of any severance or termination pay to any director, officer or employee of the Company or (iii) material change in compensation or other benefits
payable to any director, officer or employee of the Company pursuant to any severance or retirement plans or policies thereof;

      (l) any material labor dispute or any activity or proceeding by a labor union or representative thereof to organize any employees
  of the Company, which employees were not subject to a collective bargaining agreement on December 31, 2005, or any lockouts, strikes, slowdowns, work stoppages or threats thereof by or with respect to any employees of the Company;

      (m) any capital expenditure, or commitment for a capital expenditure, for additions or improvements to property, plant and
  equipment in an amount, singly greater than $200,000 or in the aggregate, greater than $1,000,000;

      (n) any transaction or commitment made by the Company with any Affiliate, other than the payment of employee compensation or
  expense reimbursements in the ordinary course of business consistent with past practices; or   

     (o) any agreement or commitment to do any of the foregoing.

      Section 4.10. No Undisclosed Liabilities. There are no known material liabilities or obligations of the Company of any kind whatsoever
  (whether accrued, contingent, absolute, determined, determinable or otherwise) and there is no existing condition, situation or set of circumstances that could reasonably be expected to result in such liability, other than:  

     (a) liabilities or obligations provided for in the Company Balance Sheet;

      (b) liabilities or obligations incurred since December 31, 2005 which were incurred in the ordinary course of business; and

      (c) liabilities listed on Schedule A hereto for fees and expenses of advisors, attorneys and accountants incurred in connection
  with this Agreement and the transactions contemplated hereby. 

     Section 4.11. Affiliated Balances. Schedule 4.11 of the Company Disclosure Schedule contains a complete list of all balances as of December
31, 2005 between each of the Sellers and each of their respective Affiliates, on the one hand, and the Company, on the other hand. Since the Company Balance Sheet Date, there has not been any accrual of liability by the Company to Sellers or any of
their Affiliates or other transaction between the Company and Sellers and any of their Affiliates, except with respect to the period prior to the Company Balance Sheet Date, in the ordinary course of business of the Company, and thereafter, as
provided in Schedule 4.11 of the Company Disclosure Schedule. 

27

  

     Section 4.12. Material Contracts.
     (a) Except for the contracts disclosed in Schedule 4.12 of the Company Disclosure Schedule (the “Material Contracts”), the Company is not currently a party to or bound by:

        (i) any lease of personal property having an annual payment obligation in excess of $50,000 or of any real property;

        (ii) any agreement for the purchase of materials, supplies, goods, services, equipment or other assets that provides for either (A) annual
    payments by the Company of $50,000 or more or (B) aggregate payments by the Company of $50,000 or more;

        (iii) any sales, distribution or other similar agreement providing for the sale by the Company of materials, supplies, goods, services,
    equipment or other assets (including, without limitation, any agreement or written arrangement with any customer of the Company) that provides for either (A) annual payments to the Company of $50,000 or more or (B) aggregate payments to the Company
    of $50,000 or more;

        (iv) any partnership, joint venture or other similar agreement or arrangement;

        (v) any agreement relating to the acquisition or disposition of any business (whether by merger, sale of stock, sale of assets or
    otherwise);

        (vi) any agreement relating to indebtedness for borrowed money or the deferred purchase price of property (in either case, whether incurred,
    assumed, guaranteed or secured by any asset) involving amounts of $50,000 or more;

        (vii) any option to acquire equity or assets or any license agreement (other than nonexclusive, inbound “shrinkwrapped” licenses and
    other similar licenses for personal computer software that are commercially available on non-discriminatory pricing terms at an individual acquisition cost of $1,000 or less);

        (viii) any agency, dealer, distributorship, reseller or other similar agreement involving amounts of $50,000
    or more;

        (ix) any agreement that limits the freedom of the Company to compete in any line of business or with any Person or in any area or which would
    so limit the freedom of the Company after the Closing Date;

        (x) any agreement with any of the (i) Sellers or any of their Affiliates, (ii) any Person 5% or more of whose outstanding voting 

28

  
    securities are directly or indirectly owned, controlled or held with power to vote by Sellers or any of their Affiliates or (iii) any “associates” or members of the “immediate family” (as such terms are
    respectively defined in Rule 12b-2 and Rule 16a-1 of the 1934 Act) of any of Sellers’ Affiliates, other than employee compensation or expense reimbursements in the ordinary course of business consistent with past practices;

        (xi) any agreement with any director or officer of the Company or with any “associate” or any member of the “immediate
    family” (as such terms are respectively defined in Rules 12b-2 and 16a-1 of the 1934 Act) of any such director or officer, other than employee compensation or expense reimbursements in the ordinary course of business consistent with past
    practices;

        (xii) any agreement providing for indemnification by the Company, or in favor of the Company, other than indemnification provisions arising in
    the ordinary course of business and consistent with past practices, including without limitation in purchase orders, customer agreements or indemnities of lessors (other than any Affiliate) under any leases;

        (xiii) any material agreement containing a “most favored nation” or similar provision or providing for minimum purchase or sale
    obligations;

        (xiv) any agreement, arrangement, commitment or understanding relating to payments upon the change of control of the Company; or

        (xv) any other agreement, commitment, arrangement or plan not made in the ordinary course of business that is material to the Company and is
    not otherwise set forth in subsections (i) through (xiv) above.

      (b) Each agreement, contract, plan, lease, arrangement, commitment or understanding disclosed or required to be disclosed in this
  Schedule to this Agreement pursuant to this Section 4.12 is a valid and binding agreement of the Company and to the Knowledge of the Company is in full force and effect, and none of the Company or, to the knowledge of the Company, any other party
  thereto is in default or breach in any material respect under the terms of any such agreement, contract, plan, lease, arrangement or commitment, and, to the knowledge of the Company, no event or circumstance has occurred that, with notice or lapse
  of time or both, would constitute any event of default thereunder. True and complete copies of each such agreement, contract, plan, lease, arrangement or commitment have been delivered to Parent or its representatives. 

     (c) The Company has fulfilled in all material respects all obligations required pursuant to each Material Contract to have been
performed by the Company prior to the date hereof. 

29

  

     (d) The Company has complied with all material terms contained in any Material Contract that provide for pricing or other
contract terms on a “most favored nation” or similar basis, and no refunds of any past payments are or are expected to become due.

      (e) The Company has obtained each consent required by a Material Contract (except a Material Contract containing no minimum
  purchase requirements that is terminable at any time by the counterparty) (such consents, the “Material Consents”).

      Section 4.13. Litigation. There is no action, suit, investigation or proceeding pending against, or to the knowledge of the Company,
  threatened against the Company, any present or former officer, director, shareholder or employee (in their capacity as such) of the Company, or any other Person for whom the Company may be liable or any of their respective properties which,
  individually or in the aggregate, if determined or resolved adversely in accordance with the plaintiff’s demands, would reasonably be expected to have a material impact on the business of the Company or which in any manner challenges or seeks
  to prevent, enjoin, alter or materially delay the First Merger or any of the other transactions contemplated hereby.

      Section 4.14. Compliance with Laws and Court Orders. The Company is not in violation of, and has not violated in any material respect any
  Applicable Law, and to the knowledge of the Company, is not under investigation with respect to and since January 1, 2005, has not been threatened in writing to be charged with or has received written notice of any violation of, any material
  Applicable Law.   

     Section 4.15. Properties; Sufficiency of Assets in Company.

      (a) The Company has good and valid, indefeasible, fee simple title to, or in the case of leased property and assets have valid
  leasehold interests in, all material property and assets (whether real, personal, tangible or intangible) reflected on the Company Balance Sheet or acquired after the Company Balance Sheet Date, except for properties and assets sold since the
  Company Balance Sheet Date in the ordinary course of business consistent with past practices. None of such property or assets is subject to any Lien, except (i) Liens disclosed on the Company Balance Sheet and (ii) Permitted Liens;

      (b) The Company does not own any real property. True and complete copies of each lease of real property and personal property,
  together with all extensions, supplements, amendments, other modifications and nondisturbance agreements relating thereto, have been provided to Parent or its representatives prior to the date hereof;

      (c) To the knowledge of the Company, the tangible property and assets owned, licensed or leased by the Company constitute all of
  the material, tangible 

30

property and assets (including, without limitation, real property and personal property) used or held for use in connection with, and are adequate to conduct, the businesses of the Company as currently conducted;

      (d) To the knowledge of the Company, there are no condemnation proceedings affecting any such property or assets pending or
  threatened, which would reasonably be expected to materially detract from the value, materially interfere with any present use or materially adversely affect the marketability of any such property or assets;

      (e) To the knowledge of the Company, the plants, buildings, structures and equipment owned or leased by the Company are in
  operating condition and are adequate and suitable for their present uses;

      (f) To the knowledge of the Company, the plants, buildings and structures owned or leased by the Company currently have access to
  (i) public roads or valid easements over private streets or private property for such ingress to and egress from all such plants, buildings and structures and (ii) water supply, storm and sanitary sewer facilities, telephone, gas and electrical
  connections, fire protection, drainage and other public utilities, in each case as is necessary for the conduct of the businesses of the Company as currently conducted. To the knowledge of the Company, (x) none of the structures on any such owned or
  leased real property encroaches upon real property of another Person, and (y) no structure of any other Person substantially encroaches upon any of such owned or leased real property; and

      (g) To the knowledge of the Company, each such real property has a valid and subsisting certificate of occupancy. The Company has
  not received any notice that its continued use, occupancy and operation as currently used, occupied and operated, is in violation of applicable building, zoning, subdivision, land use and other similar laws, regulations and ordinances. 

     Section 4.16. Products. Each of the products produced or sold by the Company since January 1, 2005 has been produced in compliance in all
material respects with every Applicable Law. 

     Section 4.17. Intellectual Property.
     (a) Schedule 4.17(a) of the Company Disclosure Schedule contains a true and complete list of all Registered IP. The Company has
taken all actions necessary to maintain and protect the Registered IP, including payment of applicable maintenance fees, filing of applicable statements of use, timely response to office actions, and disclosure of any required information. The
Company has complied with all applicable notice and marking requirements for the Registered IP. None of the Registered IP has been adjudged invalid or unenforceable in whole or part and all Registered IP is valid and enforceable. 

31

  

     (b) Schedule 4.17(b) of the Company Disclosure Schedule contains a true and complete list of all agreements (whether written or
otherwise, including license agreements, research agreements, development agreements, distribution agreements, settlement agreements, consent to use agreements and covenants not to sue, but excluding licenses for commercial off the shelf computer
software that are generally available on nondiscriminatory pricing terms and, if licensed on a per seat basis, have an individual acquisition cost of $500 per seat or less) to which the Company is a party or otherwise bound, granting or restricting
any right to use, exploit or practice any Intellectual Property or granting any indemnity or representation related to Intellectual Property on behalf of the Company.

      (c) To the knowledge of the Company, the Company possesses the rights (“Necessary IP
  Rights”) to practice all Intellectual Property necessary for the conduct of its business as currently conducted. The consummation of the transactions contemplated by this Agreement and by the Ancillary Documents
  will not alter, restrict, encumber, impair or extinguish any Necessary IP Rights.

      (d) None of Sellers or the Company has given to any Person an indemnity in connection with any Intellectual Property, other than
  indemnification provisions arising in the ordinary course of business, including without limitation in purchase orders or customer agreements.

      (e) Except as set forth on Part I of Schedule 4.17(e) of the Company Disclosure Schedule, there are no legal disputes or claims,
  threatened (to Company’s knowledge) or pending, (i) alleging infringement, misappropriation or any other violation of the Intellectual Property of any Person by the Company, or (ii) challenging the scope, ownership, validity, inventorship or
  enforceability of the Company IP or of the Company’s rights under the Necessary IP Rights. To Company’s knowledge, the Company has not infringed, misappropriated or otherwise violated any Intellectual Property of any third person. Except
  as set forth in Part II of Schedule 4.17(e) of the Company Disclosure Schedule, the Company has not received from any third party an unsolicited, written offer to license any patent right of such third party.

      (f) Except as set forth on Schedule 4.17(f) of the Company Disclosure Schedule, (i) the Company holds all right, title and
  interest in and to all Company IP, free and clear of any Lien and (ii) there are no restrictions on the disclosure, use or transfer of the Necessary IP Rights or the Company IP. All assignments (and licenses where required) of Registered Company IP
  have been duly recorded and ownership perfected, where necessary, with the appropriate governmental authorities. 

     (g) The Company has taken all reasonable customary steps to protect its rights in confidential information and trade secrets and
to protect any confidential information provided to them by any other person. The Company has obtained ownership of all works of authorship and inventions made by its employees, consultants and contractors and which relate to the Company’s
business. 

32

  

     Section 4.18. Insurance Coverage. Schedule 4.18 of the Company Disclosure Schedule sets forth a complete list of, and the Company has
provided to Parent or its representatives true and complete copies of, all insurance policies and fidelity bonds currently in effect and relating to the assets, business, operations, employees, officers or directors of the Company (the
“Company Insurance Policies”). There is no material claim by the Company pending under any of the Company Insurance Policies as to which coverage has been denied or disputed by the
underwriters of such Company Insurance Policies or in respect of which such underwriters have reserved their rights. All premiums payable under the Company Insurance Policies have been paid. The Company Insurance Policies are in full force and
effect. The Company Insurance Policies (or other policies and bonds providing substantially similar insurance coverage) have been in effect since October 1, 2002. To the knowledge of the Company, there is no threatened termination of, material
premium increase with respect to, or material alteration of coverage under, any of the Company Insurance Policies. Except as disclosed in Schedule 4.18 of the Company Disclosure Schedule, the Company shall after the Closing continue to have coverage
under the Company Insurance Policies with respect to events occurring prior to the Closing.

      Section 4.19. Licenses and Permits. The Company has obtained each material license, franchise, permit, certificate, approval or other similar
  authorization of a Governmental Authority that is required for the operation of the business of the Company as currently conducted and to permit the Company to own or use its assets in the manner in which such assets are currently owned or used (the
“Permits”). Except as set forth on Schedule 4.19 of the Company Disclosure Schedule, (a) the Permits are valid and in full force and effect, (b) the Permits are in the name of, or
  have legally and validly by assigned to, the Company; (c) the Company is not in default under, and no condition exists that with notice or lapse of time or both would constitute a default under, the Permits (except to the extent that such default
  would not cause any loss or impairment of any Permit); and (d) none of the Permits will be terminated or impaired or become terminable, in whole or in part, as a result of the transactions contemplated hereby.

      Section 4.20. Inventories. The inventories set forth in the Company Balance Sheet were properly stated therein at the lesser of cost or fair
  market value determined in accordance with GAAP consistently maintained and applied by the Company. Since the Company Balance Sheet Date, the inventories of the Company have been maintained in the ordinary course of business. All such inventories
  are owned free and clear of all Liens (except Permitted Liens). All of the inventories recorded on the Company Balance Sheet consist of, and all inventories of the Company on the Closing Date will consist of, items of a quality usable or saleable in
  the ordinary course of business based on commercial circumstances existing on the date hereof. 

     Section 4.21. Receivables. All accounts, notes receivable and other receivables (other than receivables collected since the Company Balance
Sheet 

33

  

Date) reflected on the Company Balance Sheet are, and all accounts and notes receivable arising from or otherwise relating to the business of the Company as of the Closing Date will be, (i) a result of bona fide transactions
conducted in the ordinary course of business, (ii) reflected properly on the Company’s books and records and (iii) to the Company’s knowledge, fully collectible in the aggregate amount thereof, subject to normal and customary trade
discounts, less any reserves for doubtful accounts recorded on the Company Balance Sheet (and any proportionate increase made to such reserves in the ordinary course of business consistent with past practices to reflect increases in the amount of
receivables of the Company since the Company Balance Sheet Date). All accounts, notes receivable and other receivables arising out of or relating to such business of the Company as of the Company Balance Sheet Date have been included in the Company
Balance Sheet, and all accounts, notes receivable and other receivables arising out of or relating to the business of the Company as of the Closing Date will be included in the Closing Balance Sheet, in accordance with GAAP applied on a consistent
basis. 

     Section 4.22. Finders’ Fees. There is no investment banker, broker, finder or other intermediary which has been retained by or is
  authorized to act on behalf of Sellers or the Company who is entitled to any fee or commission from Sellers or the Company in connection with the transactions contemplated by this Agreement.  

     Section 4.23. Labor Matters. The Company is in compliance in all material respects with all currently applicable laws respecting employment
and employment practices, terms and conditions of employment and wages and hours, and are not engaged in any unfair labor practice. There is no unfair labor practice complaint pending or, to the knowledge of the Company, threatened against the
Company before the National Labor Relations Board or similar entity. (i) The Company is not a party, or otherwise subject, to any collective bargaining agreement or other labor union contract applicable to the employees of the Company, (ii) to the
knowledge of the Company, there are no activities or proceedings by a labor union or representative thereof to organize any employees of the Company or to challenge the representative status of any union that currently represents such employees, and
(iii) there are no pending labor disputes, lockouts, strikes, slowdowns, work stoppages, or, to the knowledge of the Company, threats thereof with respect to the Company. 

     Section 4.24. Employee Benefit Plans.
     (a) Schedule 4.24 of the Company Disclosure Schedule contains a correct and complete list identifying each “employee benefit
plan,” as defined in Section 3(3) of ERISA, each employment, severance or similar contract, plan, arrangement or policy and each other plan or arrangement (written or oral) providing for compensation, bonuses, profit-sharing, stock option or
other stock related rights or other forms of incentive or deferred compensation, vacation benefits, insurance (including any self-insured arrangements), health or medical 

34

  

benefits, employee assistance program, disability or sick leave benefits, workers’ compensation, supplemental unemployment benefits, severance benefits and post-employment or retirement benefits (including compensation,
pension, health, medical or life insurance benefits) which is maintained, administered or contributed to by the Company or any of its Affiliates and covers any employee or former employee of the Company, or with respect to which the Company has any
liability (collectively, the “Employee Plans”). Copies of such plans (and, if applicable, related trust or funding agreements or insurance policies) and all amendments thereto and
written interpretations thereof have been furnished to Parent together with the most recent annual report (Form 5500 including, if applicable, Schedule B thereto).

      (b) None of the Company, any ERISA Affiliate of the Company and any predecessor thereof contributes to, or has in the six years
  past contributed to, any multiemployer plan, as defined in Section 3(37) of ERISA, or a plan subject to Title IV of ERISA.

      (c) Each Employee Plan that is intended to be qualified under Section 401(a) of the Code has received a favorable determination
  or opinion letter from the Internal Revenue Service, and the Company is not aware of any reason why any such determination or opinion letter should be revoked or not be reissued. The Company has made available to Parent or its representatives copies
  of the most recent Internal Revenue Service determination or opinion letters with respect to each such Employee Plan.

      (d) Each Employee Plan has been maintained in material compliance with its terms and with the requirements prescribed by any and
  all statutes, orders, rules and regulations, including but not limited to ERISA and the Code, which are applicable to such Employee Plan. No material events have occurred with respect to any Employee Plan that could result in payment or assessment
  by or against the Company of any material excise taxes under Sections 4972, 4975, 4976, 4977, 4979, 4980B, 4980D or 5000 of the Code.

      (e) The Company has no current or projected liability in respect of post-employment or post-retirement health or medical or life
  insurance benefits for retired, former or current employees of the Company, except as required to avoid excise tax under Section 4980B of the Code.

      (f) No employee or former employee of the Company will become entitled to any bonus, retirement, severance, job security or
  similar benefit, or the enhancement of any such benefit (including acceleration of vesting or exercise of an incentive award), as a result of the transactions contemplated hereby (whether alone or in connection with other events).

      (g) There is no action, suit, investigation, audit or proceeding pending against or involving or, to the knowledge of the
  Company, threatened against or 

35

involving any Employee Plan before any court or arbitrator or any state, federal or local governmental body, agency or official.

      (h) The Company has complied in all material respects with the Worker Adjustment and Retraining Notification Act (the
“WARN Act”) and any similar state or local laws regulating layoffs or employment terminations, and no employees of the Company have suffered an “employment loss” (as
  defined in the WARN Act) since 90 days prior to the date hereof and the Closing Date.

      (i) The Company has properly classified all individuals who provide services to or for it as an employee or independent
  contractor (including temporary employees), as applicable, for all purposes (including for purposes of withholding of taxes and participation in the Employee Plans).   

     Section 4.25. Environmental Matters.

      (a) Except as disclosed on Schedule 4.25 of the Company Disclosure Schedule:

        (i) no written notice, notification, demand, request for information, citation, summons or order has been received which has not heretofore
    been cured or for which there is any remaining Company liability, no complaint has been filed, no penalty has been assessed and no investigation, action, claim, suit, proceeding or review is pending, or to the Company’s knowledge, threatened by
    any Person (a) with respect to the Company and (b) relating to or arising out of any Environmental Requirement;

        (ii) no Hazardous Substance has been discharged, disposed of, dumped, injected, pumped, deposited, spilled, leaked, emitted or released at, on,
    from or under any property now or previously owned, leased or operated by the Company, in each case, which could reasonably be expected to result in a material liability to the Company;

        (iii) to the Company’s knowledge, no property currently owned, leased or operated by the Company or, to the Company’s knowledge,
    previously owned, leased or operated by the Company or any predecessor of the Company, is listed or, to the Company’s knowledge, proposed for listing, on the National Priorities List promulgated pursuant to CERCLA, or CERCLIS (as defined in
    CERCLA) or on the Texas State Superfund Registry, the California Site Mitigation and Brownfields Reuse Program Database (also known as CalSites) or the Hazardous Waste and Substance Site List (also known as the Cortese List); and 

        (iv) the Company is in compliance in all material respects with all Environmental Requirements, including with respect to the storage of oil on
  property leased or operated by the Company, and there are no instances of past non-compliance with Environmental Requirements or 

36

  

  
    Environmental Permits at current or former facilities of the Company or its predecessors for which there is any remaining material liability (whether fixed, accrued, contingent or otherwise) to the Company; the Company is in
    compliance with all Environmental Permits and such Environmental Permits are valid and in full force and effect. 

     (b) The Company has made available for inspection to Parent or its representatives all environmental audits and environmental
site assessments of any facility now or previously owned, leased or operated by the Company or any predecessor of the Company in the possession of the Company. 

     Section 4.26. Certain Interests.
     (a) Except as set forth on Schedule 4.26(a) of the Company Disclosure Schedule, no Seller nor any officer or director of the
Company and no spouse of any such Person

        (i) is an officer, director or shareholder of any significant supplier or customer of the Company, or of any company which holds, directly or
    indirectly, 50% or more of the outstanding shares of any such supplier or customer, provided that the ownership of securities representing not more than 2% of the outstanding voting power of
    any supplier or customer, and which are listed on any national securities exchange or traded actively in the national over-the-counter market, shall not be deemed to be a “shareholder” as long as the person owning such securities has no
    other material connection or relationship with such supplier or customer;

        (ii) owns, directly or indirectly, in whole or in part, or has any other interest in any material tangible or intangible property which the
    Company uses in the conduct of its business (except for any such ownership or interest resulting from the ownership of securities in a public company); or   

       (iii) has any outstanding indebtedness to the Company.

      (b) Except for the payment of employee compensation in the ordinary course of business, the Company has no material liability or
  any other material obligation of any nature whatsoever to any shareholder of the Company or any affiliate thereof, or to any officer or director of the Company, or, to the knowledge of the Company, to any immediate relative or spouse (or immediate
  relative of such spouse) of any such officer or director. 

     (c) There have been no material transactions between the Company and any Affiliate since the Company Balance Sheet Date, other
than the payment of salaries to officers or employees, all made in the ordinary course of business consistent with past practices. There are no material agreements, arrangements, commitments or understandings now in effect between the Company and
any 

37

  

Affiliate. Schedule 4.26(c) of the Company Disclosure Schedule states, as of the date of this Agreement, (i) the amounts due from the Company to any Affiliate and the amounts due from any Affiliate to the Company, other than
amounts representing the payment of salaries to officers or employees made in the ordinary course of business consistent with past practices, (ii) the transactions out of which such amounts
arose and (iii) any interest of any Affiliate in any supplier or customer of, or any other entity that has had material business dealings with the Company since the Company Balance Sheet Date. After the Closing, there will be no obligations or other
liabilities, including inter company obligations, between the Company, on the one hand, and any Seller or any of their respective Affiliates, on the other hand, other than for the payment of salaries to officers or employees made in the ordinary
course of business consistent with past practice and agreements contemplated by this Agreement. 

     Section 4.27. Customers; Suppliers.
     (a) Schedule 4.27 of the Company Disclosure Schedule sets forth the names of the five most significant customers (by dollar
amount of sales) of the Company for the year ended December 31, 2005, and the period from January 1, 2006 through May 31, 2006 (each, a “Significant Customer” and collectively, the
“Significant Customers”), and the approximate dollar amount of sales for each such customer during such periods. Neither Sellers nor the Company have received express written or
oral notice from any Significant Customer that it intends to cease, and to the knowledge of the Company, no Significant Customer has ceased, will cease, or is reasonably likely to cease to purchase the products of the Company or has substantially
reduced, intends to substantially reduce, or is reasonably likely to substantially reduce the purchase by it of the aggregate amount of products from the Company (determined by reference to the market share of the aggregate amount of products
purchased from the Company by such Significant Customer), whether as a result of the transactions contemplated hereby or otherwise. 

     (b) Other than as disclosed on Schedule 4.27 of the Company 
  Disclosure Schedule, within the past one year, the Company has not received any written communication from any Significant Customer regarding any material complaints regarding or related to the Company’s products, performance
  or services (including with respect to their quality or conformity with specifications).

     Section 4.28. Debt. Schedule 4.28 of the Company Disclosure Schedule contains a complete and accurate list of the outstanding principal, any
accrued interest, and any other amounts outstanding under any loan agreement, line of credit, note, indebtedness for borrowed money, advances, guarantees or any other debt of the Company (including, but not limited to, the Loan Agreement between
Sieger Engineering, Inc. and Union Bank of California, N.A., dated as of April 12, 2004 (the “Loan Agreement”)) as of the date hereof. 

38

  

     Section 4.29. Books and Records. The books of account and other financial records of the Company have been maintained in accordance with
sound business practices, including the maintenance of a system of internal controls adequate to maintain the integrity of the Company’s books and records. The minute books of the Company contain complete, correct and accurate records of all
corporate action taken by the shareholders, the Board of Directors and any committees of the Board of Directors of the Company. At the Closing, all of those books and records will be in the possession of the Company. The Company has previously
disclosed all of these books, records and accounts to Parent.

      Section 4.30. Independent Public Accountants. Moss Adams LLP, who have delivered their report with respect to the audited balance sheets as
  of December 31, 2004 and 2005 and the audited statements of income and cash flows for each of the years in the three year period ended December 31, 2005 of the Company, and who have performed a limited review and provided a report prepared in
  accordance with the SAS 100 for the period ended March 31, 2006, were at the time of such reports, and are currently independent public accountants with respect to the Company within the meaning of the 1933 Act.

      Section 4.31. FIRPTA. Parent has received a certification signed by the Company to the effect that no interest in the Company constitutes a
  United States real property interest, as defined in Section 897 of the Code.   

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF CERTAIN SELLERS

      Each of the Sellers, severally and not jointly, represents and warrants to Parent, solely on behalf of itself, that:

      Section 5.01. Experienced and Sophisticated Investor. Each Seller has knowledge and experience in financial and business matters so that it
  is capable of evaluating the merits and understanding the risks of its investment in Parent and has the capacity to protect its own interests.

      Section 5.02. Investment Intent; Blue Sky.  Each Seller is acquiring the shares of Parent Common Stock for investment for its own account,
  not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution thereof. Each Seller understands that the issuance of the shares of Parent Common Stock has not been, and will not be, registered under the 1933
  Act by reason of a specific exemption from the registration provisions of the 1933 Act, the availability of which depends upon, among other things, the bona fide nature of each such Seller’s investment intent and the accuracy of each
  Seller’s representations as expressed herein. 

     Section 5.03. Rule 144. Each Seller acknowledges that the shares of Parent Common Stock must be held indefinitely unless subsequently
registered 

39

  

under the 1933 Act or unless an exemption from such registration is available. Each Seller is aware of the provisions of Rule 144 promulgated under the 1933 Act which permit limited resale of shares purchased in a private
placement subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for the shares, the availability of certain current public information about Parent, the resale occurring not less than one
year after a party has purchased and paid for the security to be sold, the sale being effected through a “broker’s transaction” or in a transaction directly with a “market maker,” and the number of shares being sold during
any three-month period not exceeding specified limitations.

      Section 5.04. Restrictions on Transfer; Restrictive Legends. Each Seller understands that the transfer of the shares of Parent Common Stock
  is restricted by applicable state and federal securities laws, and that the certificates representing the shares of Parent Common Stock will be imprinted with legends restricting transfer except in compliance therewith.   

ARTICLE 6

REPRESENTATIONS AND WARRANTIES OF PARENT

      Parent represents and warrants to the Company and Sellers as of the date hereof and as of the Closing Date that:

      Section 6.01. Corporate Existence and Power. Each of Parent and the Merger Subsidiaries has been duly incorporated or organized, as the case
  may be, and is validly existing and in good standing as a corporation or limited liability company, as the case may be, under the laws of the state of its incorporation or organization, and has all corporate or limited liability company powers and
  all material governmental licenses, authorizations, permits, consents and approvals required to carry on its business as now conducted. Since the date of their respective incorporation or formation, the Merger Subsidiaries have not engaged in any
  activities other than in connection with or as contemplated by this Agreement or in connection with arranging any financing related to the transactions contemplated hereby. The Merger Subsidiaries have not conducted any business activities except
  for entering into this Agreement and matters related thereto. 

     Section 6.02. Corporate Authorization. The execution, delivery and performance by Parent and the Merger Subsidiaries of this Agreement and
the consummation by Parent and the Merger Subsidiaries of the transactions contemplated hereby are within the corporate or limited liability company powers of Parent and the Merger Subsidiaries and have been duly authorized by all necessary
corporate and limited liability company action on the part of Parent and the Merger Subsidiaries. This Agreement constitutes a valid and binding agreement of Parent and the Merger Subsidiaries. 

40

  

     Section 6.03. Governmental Authorization. The execution, delivery and performance by Parent and the Merger Subsidiaries of this Agreement and
the consummation of the transactions by Parent and the Merger Subsidiaries contemplated hereby require no action by or in respect of, or filing with, any Governmental Authority other than (i) the filing of agreements of merger with respect to the
Mergers with the Secretary of State of the State of California, and a certificate of merger with the Delaware Secretary of State with respect to the Second Merger, (ii) compliance with any applicable requirements of the 1933 Act, the 1934 Act and
any other applicable securities or takeover laws, whether state or foreign, and (iii) any actions or filings the absence of which would not be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect or materially to
impair the ability of Parent and the Merger Subsidiaries to consummate the transactions contemplated by this Agreement.

      Section 6.04. Noncontravention. The execution, delivery and performance by Parent and the Merger Subsidiaries of this Agreement and the
  consummation by Parent and the Merger Subsidiaries of the transactions contemplated hereby do not and will not (i) violate the certificates of incorporation or bylaws or limited liability company agreement of Parent or the Merger Subsidiaries, (ii)
  assuming compliance with the matters referred to in Section 6.03, violate any applicable material law, rule, regulation, judgment, injunction, order or decree, or (iii) require any consent or other action by any Person under, constitute a default
  under, or cause or permit the termination, cancellation, acceleration or other change of any right or obligation or the loss of any benefit to which Parent is entitled under any provision of any agreement or other instrument binding upon Parent or
  any license, franchise, permit, certificate, approval or other similar authorization affecting, or relating in any way to, the assets or business of Parent.  

     Section 6.05. SEC Filings; Financial Statements.

      (a) Parent has filed all forms, reports and documents required to be filed by Parent with the SEC since January 1, 2004, and has
  made available (including via EDGAR) to the Company such forms, reports and documents in the form filed with the SEC. All such required forms, reports and documents are referred to herein as the “Parent SEC
  Reports.” As of their respective dates, the Parent SEC Reports (i) were prepared in accordance with the requirements of the 1933 Act or the 1934 Act, as the case may be, and the rules and regulations of the SEC
  thereunder applicable to such Parent SEC Reports, and (ii) did not at the time they were filed (or if amended or superseded by a filing before the date of this Agreement, then on the date of such filing) contain any untrue statement of a material
  fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

      (b) Each of the financial statements (including, in each case, any related notes thereto) contained in the Parent SEC Reports
  (the “Parent Financials”), 

41

including any Parent SEC Reports filed after the date hereof until the Closing, (i) complied (and, with respect to the Parent SEC reports filed after the date of this Agreement and prior to the Closing, will comply) as to form in
all material respects with the published rules and regulations of the SEC with respect thereto at the time of filing, (ii) was prepared (and, with respect to the Parent SEC reports filed after the date of this Agreement and prior to the Closing,
will be prepared) in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited interim financial statements, as may be permitted by the rules and
regulations of the SEC) and (iii) fairly presented (and, with respect to the Parent SEC reports filed after the date of this Agreement and prior to the Closing, will fairly present) the financial position of Parent at the respective dates thereof
and the results of its operations and cash flows for the periods indicated, except that the unaudited interim financial statements were or are or will be subject to normal and recurring year-end adjustments which were not, or are not expected to be,
material in amount. 

     Section 6.06. Litigation. As of the date of this Agreement, there is no action, suit, investigation or proceeding pending against, or to the
  knowledge of Parent, threatened against, Parent or any of its officers, directors or employees (in their capacities as such) or any of Parent’s properties which, individually or in the aggregate, has had or would reasonably be expected to have
  a Material Adverse Effect on Parent.

      Section 6.07. Finders’ Fees. Except for Piper Jaffray & Co., there is no investment banker, broker, finder or other intermediary
  which has been retained by or is authorized to act on behalf of Parent who might be entitled to any fee or commission from Parent or any of its Affiliates upon consummation of the transactions contemplated by this Agreement.

      Section 6.08. Common Stock. The shares of Parent Common Stock to be issued as part of the Merger Consideration have been duly authorized and,
  when issued and delivered in accordance with the terms of this Agreement, will have been validly issued and will be fully paid and nonassessable and the issuance thereof is not subject to any preemptive or other similar right. 

     Section 6.09. No Material Adverse Effect. Since December 31, 2005, there has not occurred any event, occurrence, development or state of
circumstances or facts which, individually or in the aggregate, has had or would reasonably be expected to have a Material Adverse Effect on Parent. 

ARTICLE 7

    COVENANTS OF PARENT

Section 7.01. Indemnification of Company Directors and
Officers. Following the Closing, Parent shall indemnify
and hold harmless each Company

42

  

director and officer against any claim (other than for fraud or failure of the duty of loyalty and otherwise only to the extent permissible within the Delaware General Corporation Law) brought by a party that is not and does not
purport to be a shareholder of the Company, and the certificate of incorporation and bylaws of the Surviving Corporation will contain provisions, with respect to exculpation from and indemnification against any claim brought by a party that is not
and does not purport to be a shareholder of the Company, that are at least as favorable to the Company’s directors and officers as those contained in Parent’s certificate of incorporation and bylaws as in effect on the date hereof, which
provisions will not be amended, repealed or otherwise modified for a period of two years from the Effective Time in any manner that would adversely affect the rights thereunder of any Company director or officer or of individuals who, immediately
prior to the Effective Time, were employees or agents of the Company, unless such modification is required by law. 

ARTICLE 8

COVENANTS OF PARENT, THE MERGER SUBSIDIARIES

AND THE COMPANY

Parent, the Merger Subsidiaries and the Company agree that:

      Section 8.01. Reasonable Efforts; Further Assurances. Subject to the terms and conditions of this Agreement, Parent and the Company will, and
  the Company shall cause Sellers to, use commercially reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary or desirable under Applicable Law to consummate the transactions contemplated by
  this Agreement. Parent and the Company agree, and shall cause the Surviving Entity, to execute and deliver such other documents, certificates, agreements and other writings and to take such other actions as may be reasonably necessary in order to
  consummate or implement expeditiously the transactions contemplated by this Agreement. 

     Section 8.02. Certain Filings. Parent, the Merger Subsidiaries and the Company shall, and the Company shall cause Sellers to, reasonably
cooperate with one another (i) in determining whether any action by or in respect of, or filing with, any governmental body, agency, official or authority is required, or any actions, consents, approvals or waivers are required to be obtained from
parties to any contracts, in connection with the consummation of the transactions contemplated by this Agreement and (ii) in taking such actions or making any such filings, furnishing information reasonably required in connection therewith and
seeking timely to obtain any actions, consents, approvals or waivers reasonably necessary in connection herewith. Without limiting the generality of the foregoing, the Company shall (i) use commercially reasonable efforts to identify Permits
reasonably necessary to operate the Surviving Entity from and after the Closing and (ii) use commercially reasonable efforts to obtain consents reasonably necessary to the transfer of such Permits which are transferable at or 

43

  

prior to the Closing. Prior to and after the Closing, the Company shall, and shall cause Sellers to, reasonably cooperate with the Surviving Entity with respect to the transfer of all Permits.

      (b) Public Announcements. The parties agree not to issue any press release or make any public
  statement with respect to this Agreement or the transactions contemplated hereby without the prior written consent of the other party, such consent not to be unreasonably withheld, except that Parent may issue press releases and make public filings
  to the extent required by Applicable Law, regulation or any listing agreement with Nasdaq or any national securities exchange, and further agree not to issue any such press release or make any such public statement prior to receiving such written
  consent, except to the extent required by Applicable Law, regulation or any listing agreement with Nasdaq or any national securities exchange. Parent and the Company will consult with each other before issuing, and provide each other, to the extent
  practicable, reasonable opportunity to review and comment upon any press release or public statement with respect to this Agreement and the transactions contemplated hereby.

      Section 8.03. Further Assurances. At and after the Second Effective Time, the officers and managers of the Surviving Entity will be
  authorized to execute and deliver, in the name and on behalf of the Surviving Entity or any Merger Subsidiary, any deeds, bills of sale, assignments or assurances and to take and do, in the name and on behalf of the Surviving Entity or any Merger
  Subsidiary, any other actions and things to vest, perfect or confirm of record or otherwise in the Surviving Entity any and all right, title and interest in, to and under any of the rights, properties or assets of the Company acquired or to be
  acquired by the Surviving Entity as a result of, or in connection with, the Mergers.

      Section 8.04. Confidentiality. The Parties hereto acknowledge that the Company and Parent have previously executed a Confidentiality
  Agreement dated May 9, 2005 (the “Confidentiality Agreement”), which Confidentiality Agreement will continue in full force and effect in accordance with its terms and each of
  Parent and the Company will hold, and will cause its respective directors, officers, employees, agents and advisors (including attorneys, accountants, consultants, bankers and financial advisors) to hold any
  Confidential Information (as defined in the Confidentiality Agreement and including this Agreement and the transactions contemplated hereby) confidential in
  accordance with the terms of the Confidentiality Agreement provided that (i) to the extent they are inconsistent with each other, the terms of this Agreement shall supersede the terms of the
  Confidentiality Agreement and (ii) at the Closing the obligations of Parent pursuant to the Confidentiality Agreement shall cease and be of no further force and effect.

     Section 8.05. Consent Of Moss Adams. Following the Closing, Sellers will use commercially reasonable efforts to direct Moss Adams LLP to
provide their consent to the use of their reports and the reference to them as “experts” in any filing with the SEC that includes the audited financial statements of the 

44

  

Company. In the event that Moss Adams LLP does not provide such consent at any time requested by Parent during the period beginning 10 days after the Closing and ending 120 days after the Closing, Parent agrees to pay up to 50% of
the total expenses (the “Consent Expenses”) associated with Parent engaging an independent accountant of nationally recognized standing, which Parent shall select in its reasonable
discretion, to audit such financial statements and provide such audit opinion and consent to the use of such report and the reference to such accountants as “experts” in any filing with the SEC; provided,
that Parent’s portion of the Consent Expenses shall not exceed $500,000. Each of (i) Leonid Mezhvinsky (whose Pro Rata Share for purposes of this Section 9.05 only shall be deemed to include the Pro Rata Share of
each of the Mezhvinsky Living Trust, Victor Mezhvinsky and the Joshua Trust; (ii) Joe Chen (whose Pro Rata Share for purposes of this Section 9.05 only shall be deemed to include the Pro Rata Share of the Chen Living Trust and the Chen Minors
Trust); and (iii) Frank Moreman, severally, and not jointly, in proportion to their Pro Rata Share, agrees to pay, within 10 Business Days after receipt of an invoice from Parent, the remaining portion of the Consent Expenses. 

ARTICLE 9

    TAX MATTERS

     Section 9.01. Tax Definitions. The following terms, as used herein, have the following meanings:

      “Parent Indemnitee” means Parent, any of its Affiliates and, effective upon the Closing, the Surviving Entity.

      “Post-Closing Tax Period” means any Tax period beginning after the Closing Date; and, with respect to a Tax period that begins on
  or before the Closing Date and ends thereafter, the portion of such Tax period beginning after the Closing Date.

      “Pre-Closing Tax Period” means any Tax period ending on or before the Closing Date; and, with respect to a Tax period that begins
  on or before the Closing Date and ends thereafter, the portion of such Tax period ending on the Closing Date.

      “S Corporation Share” means with respect to the Mezhvinsky Persons, 30%, with respect to the Chen Persons, 66.5% and with respect to Frank Moreman, 3.5% .
  

     “Tax” means (i) any tax, governmental fee or other like assessment or charge of any kind whatsoever (including, but not limited to,
withholding on amounts paid to or by any Person), together with any interest, penalty, addition to tax or additional amount imposed by any governmental authority (a “Taxing Authority”) responsible for the imposition of any such tax (domestic or foreign),

45

  

and any liability for any of the foregoing as transferee, (ii) in the case of the Company, liability for the payment of any amount of the type described in clause (i) as a result of being or having been before the Effective Time a
member of an affiliated, consolidated, combined or unitary group, or a party to any agreement or arrangement, as a result of which liability of the Company to a Taxing Authority is determined or taken into account with reference to the activities of
any other Person and (iii) liability of the Company for the payment of any amount as a result of being party to any Tax Sharing Agreement or with respect to the payment of any amount imposed on any Person of the type described in (i) or (ii) as a
result of any existing express or implied agreement or arrangement (including, but not limited to, an indemnification agreement or arrangement) arising out of or attributable to actions taken during the Pre-Closing Tax Period.

      “Tax Sharing Agreements” means all existing agreements or arrangements (whether or not written) binding the Company that provide
  for the allocation, apportionment, sharing or assignment of any Tax liability or benefit, or the transfer or assignment of income, revenues, receipts, or gains for the purpose of determining any Person’s Tax liability.

      Section 9.02. Tax Representations. The Company represents and warrants to Parent as of the date hereof and as of the Closing Date
  that:

      (a) Filing and Payment. Except as set forth on Schedule 9.02(a) of the Company Disclosure
  Schedule, (i) all federal, state and other material Tax returns, statements, reports, elections, declarations, disclosures, schedules and forms (including estimated tax or information returns and reports) filed or required to be filed with any
  Taxing Authority (“Returns”) with respect to any Pre-Closing Tax Period by or on behalf of the Company, have, to the extent required to be filed on or before the date hereof, been
  filed when due in accordance with all applicable laws (taking into account any extensions); (ii) as of the time of filing, such Returns were true and complete in all material respects; and (iii) all Taxes shown as due and payable on the Returns that
  have been filed have been timely paid, or withheld and remitted, to the appropriate Taxing Authority. 

     (b) Financial Records. Except as set forth on Schedule 9.02(b) of the Company Disclosure
Schedule, (i) the charges, accruals and reserves for Taxes with respect to the Company reflected on the books of the Company (excluding any provision for deferred income taxes reflecting either differences between the treatment of items for
accounting and income tax purposes or carryforwards) are adequate to cover Tax liabilities accruing through the end of the last period for which the Company ordinarily records items on its respective books; and (ii) since the end of the last period
for which the Company ordinarily records items on its books, the Company has not incurred or accrued any liability for Taxes other than in the ordinary course of business. 

46

  

     (c) Procedure and Compliance. Except as set forth on Schedule 9.02(c) of the Company Disclosure
Schedule, (i) all federal, state and other material Returns filed with respect to Tax years of the Company through the Tax year ended December 31, 2004 have been examined and closed or are Returns with respect to which the applicable period for
assessment under applicable law, after giving effect to extensions or waivers, has expired; (ii) the Company has not granted any extension or waiver of the statute of limitations period applicable to any Return, which period (after giving effect to
such extension or waiver) has not yet expired; (iii) there is no claim, audit, action, suit, proceeding, or investigation now pending or, to the knowledge of the Company, threatened against or with respect to the Company in respect of any Tax or
Return; and (iv) no adjustment that would increase the Tax liability of the Company has been made, proposed or threatened in writing by a Taxing Authority during any audit of a Pre-Closing Tax Period which could reasonably be expected to be made,
proposed or threatened in an audit of any subsequent Pre-Closing Tax Period or Post-Closing Tax Period.

      (d) Taxing Jurisdictions. No claim has been made by any Taxing Authority of a jurisdiction in
  which the Company does not file Returns that the Company is required to file Returns in such jurisdiction.

      (e) Tax Sharing, Consolidation and Similar Arrangements. Except as set forth on Schedule 9.02(e)
  of the Company Disclosure Schedule, (i) the Company has not been a member of an affiliated, consolidated, combined or unitary group, or made any election or participated in any arrangement whereby any Tax liability of the Company was determined or
  taken into account for Tax purposes with reference to or in conjunction with any Tax liability of any other Person; (ii) the Company is not a party to any Tax Sharing Agreement or to any other agreement or arrangement referred to in clause (ii) or
  (iii) of the definition of “Tax;” (iii) to the Company’s knowledge no amount of the type described in clause (ii) or (iii) of the definition of “Tax” is currently payable by the Company, regardless of whether such Tax is
  imposed on the Company; and (iv) the Company has not entered into any agreement or arrangement with any Taxing Authority with regard to the Tax liability of the Company affecting any Tax period for which the applicable statute of limitations, after
  giving effect to extensions or waivers, has not expired.

      (f) Certain Agreements and Arrangements. Except as set forth on Schedule 9.02(f) of the Company
  Disclosure Schedule, (i) the Company is not a party to any understanding or arrangement described in Section 6111(d) or Section 6662(d)(2)(C)(iii) of the Code, and has not “participated” in a “reportable transaction” within the
  meaning of Treasury Regulations Section 1.6011 -4; and (ii) during the five-year period ending on the date hereof, the Company was not a distributing corporation or a controlled corporation in a transaction intended to be governed by Section 355 of
  the Code.

      (g) Post-Closing Attributes. Except as set forth on Schedule 9.02(g) of the Company Disclosure
  Schedule, (i) the Company will not be required to 

47

include any adjustment in taxable income for any Post-Closing Tax Period under Section 481(c) of the Code (or any similar provision of the Tax laws of any jurisdiction) as a result of a change in method of accounting for a
Pre-Closing Tax Period; and (ii) the Company will not be required to include for a Post-Closing Tax Period taxable income attributable to income economically realized in a Pre-Closing Tax Period, including any distributions in a Pre-Closing Tax
Period from an entity that is fiscally transparent for Tax purposes and any income that would be includible in a Post-Closing Tax Period as a result of the installment method or the look-back method (as defined in Section 460(b) of the Code).

      (h) S Corporation Status. The Company (and any predecessor of the Company) has been a validly
  electing S corporation, within the meaning of Sections 1361 and 1362 of the Code, at all times on or after October 1, 1995, and the Company will be an S corporation up to and including the day before the Closing Date. Except as set forth on Schedule
  9.02(h) of the Company Disclosure Schedule, the Company (and any predecessor of the Company) has qualified as an S corporation at all times on or after October 1, 1995, and will qualify as an S corporation up to and including the day before the
  Closing Date, in all state and local jurisdictions in which the Company files Returns. The Company was taxed as a C Corporation from its inception on December 9, 1982 until the effective date of its S Corporation election on October 1, 1995. The
  Company has not, in the past 10 years, (i) acquired assets from another corporation in a transaction in which the Company’s Tax basis of the acquired assets was determined, in whole or in part, by reference to the Tax basis of the acquired
  assets (or any other property) in the hands of the transferor or (ii) acquired the stock of any corporation that is a qualified subchapter S subsidiary. The Company has no potential liability for any Tax under Section 1374 of the Code. Prior to the
  day of the Closing Date, the Company has properly and timely filed a statement pursuant to Revenue Procedure 2004-35 for automatic relief for late shareholder consents for S corporation elections in community property states.

     (i) Texas Sales. The letter attached as Exhibit K accurately and completely describes all of the
sales that have been made prior to the Closing by the Company to Applied Materials, Inc. in any Texas location. 

     Section 9.03. Covenants.
     (a) Except as expressly provided elsewhere in this Article 9, without the prior written consent of Parent (which shall not be
unreasonably withheld or delayed), none of Sellers or the Company shall, to the extent it relates to the Company, make or change any material Tax election, change any annual Tax accounting period, adopt or change any method of Tax accounting, file
any amended Return, enter into any closing agreement, settle any material Tax claim or assessment, surrender any right to claim a material Tax refund, offset or other reduction in Tax liability, or consent to any extension or waiver of the
limitations period applicable to any Tax claim or assessment. 

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     (b) Sellers’ Agent shall prepare or cause to be prepared and file or cause to be filed all Returns and all amended Returns
for the Company for all periods ending on or prior to the Closing Date that are filed after the Closing Date. Sellers’ Agent shall permit Parent to review and comment on each such Return described in the preceding sentence at least 30 days
prior to the due date for such Return, and shall provide Parent with all related workpapers. Such Returns shall be prepared in a manner consistent with the Company’s prior practice. Sellers’ Agent shall not file any Returns described in
this Section 9.03(b) without the prior written consent of Parent (which shall not be unreasonably withheld). In the event that there is a dispute regarding the Returns, Section 9.07 shall apply. To the extent permitted by applicable law, Sellers
shall include any income, gain, loss, deduction or other Tax items for such periods on their Returns in a manner consistent with the Schedule K-1s furnished by the Company to Sellers for such periods.

      (c) Prior to the Closing, the Company shall not make any payment of, or in respect of, any Tax to any Person or any Taxing
  Authority, except to the extent such payment is in respect of a Tax that is due or payable or has been properly estimated in accordance with applicable law as applied in a manner consistent with past practice of the Company.

      (d) All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees (including any
  penalties and interest) incurred in connection with transactions contemplated by this Agreement (including any real property transfer Tax and any similar Tax) shall be paid equally by (i) Parent and (ii) Sellers (in proportion to their Pro Rata
  Share) when due, and the Company will file all necessary Returns and other documentation with respect to all such Taxes and fees, with the costs of such Returns and other documentation to be borne equally by Parent and Sellers (in proportion to
  their Pro Rata Share), and if required by applicable law, Parent will, and will cause its Affiliates to, join in the execution of any such Returns and other documentation.

      (e) Sellers’ Agent shall have the right to prepare or cause to be prepared a request for a private letter ruling from the
  Internal Revenue Service pursuant to Section 1362(f) of the Code, waiving any termination of the Company’s S corporation status. Prior to submitting such ruling request, Sellers’ Agent shall permit Parent to review and comment on such
  ruling request at Parent’s expense. Parent shall cooperate with the Sellers’ Agent in the preparation and submission of such ruling request and shall take reasonable actions in support of the ruling request, including causing the Company
  or the Surviving Entity to execute and submit such ruling request. Sellers shall (in proportion to their Tax Escrow Share) reimburse Parent for any reasonable costs or expenses incurred in cooperating with the Sellers’ Agent in the preparation
  and submission of the ruling request.

      (f) Except to the extent that such refund is reflected as a current Tax asset in the calculation of Final Working Capital, any
  refund with respect to a Tax 

49

of the Company related to a Pre-Closing Tax Period shall be for the benefit of the Sellers, and Parent shall promptly remit any such refund to the Sellers’ Agent upon receipt of such refund.

      Section 9.04. Tax Sharing. Any and all existing Tax Sharing Agreements shall be terminated as of the Closing Date. After the Closing Date,
  the Company shall not have any further rights or liabilities thereunder.  

     Section 9.05. Cooperation on Tax Matters.

      (a) Parent and Sellers shall cooperate fully, as and to the extent reasonably requested by the other party, in connection with
  the preparation and filing of any Return (including any report required pursuant to Section 6043 of the Code and all Treasury Regulations promulgated thereunder), any audit, litigation or other proceeding with respect to Taxes. Such cooperation
  shall include the retention and (upon another party’s request) the provision of records and information which are reasonably relevant to any such audit, litigation or other proceeding and making employees available on a mutually convenient
  basis to provide additional information and explanation of any material provided hereunder. Parent and Sellers agree (i) to retain all books and records with respect to Tax matters pertinent to the Company relating to any Pre-Closing Tax Period, and
  to abide by all record retention agreements entered into with any Taxing Authority, and (ii) to give the other party reasonable written notice prior to destroying or discarding any such books and records and, if the other party so requests, Parent
  or Sellers, as the case may be, shall allow the other party to take possession of such books and records. 

     (b) Parent and Sellers further agree, upon request, to use all reasonable efforts to obtain any certificate or other document
from any Governmental Authority or customer of the Company or any other Person as may be necessary to mitigate, reduce or eliminate any Tax that could be imposed (including but not limited to with respect to the transactions contemplated hereby).

     Section 9.06. Tax Indemnification.
     (a) Each of (i) the Mezhvinsky Persons, jointly and severally up to Leonid Mezhvinsky’s Pro Rata Share (which for purposes
of this Section 9.06 only shall be deemed to include the Pro Rata Share of each of the Mezhvinsky Living Trust, Victor Mezhvinsky and the Joshua Trust), (ii) the Chen Persons, jointly and severally up to Joe Chen’s Pro Rata Share (which for
purposes of this Section 9.06 only shall be deemed to include the Pro Rata Share of each of the Chen Living Trust and the Chen Minors Trust) and (iii) Frank Moreman, severally, and not jointly, in proportion to their Pro Rata Share, by adopting this
Agreement, shall hereby agree to indemnify each Parent Indemnitee against and agree to hold each Parent Indemnitee harmless from any: 

50

  

        (u) Tax of the Company described in clause (i) of the definition of Tax related to a Pre-Closing Tax Period, except to the extent such Tax is reflected as a current Tax liability in the calculation of
    Final Working Capital or arises out of a transaction outside of the ordinary course of business occurring on the Closing Date but after the Closing,

        (v) Tax described in clause (ii) or (iii) of the definition of Tax, except to the extent such Tax is reflected as a current Tax liability in the calculation of Final Working Capital or arises out of a
    transaction outside of the ordinary course of business occurring on the Closing Date but after the Closing,

        (w) Tax of the Company resulting from a breach of the provisions of Section 9.02 or Section 9.03,

        (x) Tax resulting from the application of Section 280G of the Code to any payment made pursuant to this Agreement or to any payment made as a result of, or in connection with, any transaction
    contemplated by this Agreement,

        (y) Tax of the Company resulting from a termination of any Tax Sharing Agreement pursuant to Section 9.04, and

        (z) liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees and expenses), losses, damages, assessments, settlements or judgments
    arising out of or incident to the imposition, assessment or assertion of any Tax described in (u), (v), (w), (x) or (y),     

(the sum of (u), (v), (w), (x), (y), and (z) of this
        Section 9.06(a) and (i) and (ii) of Section 9.06(h) being referred to herein
        as a “Loss”). 

     (b) For purposes of this Section, in the case of any Taxes that are imposed on a periodic basis and are payable for a Tax period
that includes (but does not end on) the Closing Date, the portion of such Tax related to the portion of such Tax period ending on and including the Closing Date shall (x) in the case of any Taxes other than gross receipts, sales or use Taxes and
Taxes based upon or related to income, be deemed to be the amount of such Tax for the entire Tax period multiplied by a fraction the numerator of which is the number of days in the Tax period ending on and including the Closing Date and the
denominator of which is the number of days in the entire Tax period, and (y) in the case of any Tax based upon or related to income and any gross receipts, sales or use Tax, be deemed equal to the amount which would be payable if the relevant Tax
period ended on the Closing Date (excluding therefrom Taxes arising out of any transaction outside of the ordinary course of business occurring on the Closing Date but after the Closing). All determinations necessary to give effect to the

51

  

allocation set forth in the foregoing clause (y) shall be made in a manner consistent with prior practice of the Company.

      (c) Not later than 30 days after receipt by Sellers’ Agent of written notice from Parent stating that any Loss has been
  incurred by a Parent Indemnitee and the amount thereof and of the indemnity payment requested, Sellers shall discharge their obligation to indemnify the Parent Indemnitee against such Loss by paying to Parent an amount equal to the amount of such
  Loss. For this purpose, a Loss shall not be considered incurred to the extent it is the subject of an unresolved Tax Contest and is not yet payable by the Parent Indemnitee. Notwithstanding the foregoing, if Parent provides Sellers’ Agent with
  written notice of at least 30 days prior to the date on which the relevant Loss is required to be paid by any Parent Indemnitee, within that 30 day period Sellers shall discharge their obligation to indemnify the Parent Indemnitee against such Loss
  by making payments to the relevant Taxing Authority or Parent, as directed by Parent, in an aggregate amount equal to the amount of such Loss. The payment by a Parent Indemnitee of any Loss shall not relieve Sellers of their obligation under this
  Section 9.06.

      (d) For purposes of computing the amount of any Loss incurred by the Parent Indemnitee, there shall be deducted an amount equal
  to the amount of any net Tax benefit actually received by the Parent Indemnitee or any of their respective Affiliates directly as a consequence of such Loss. 

     (e) Parent shall give written notice to Sellers’ Agent of any Loss or the assertion of any claim, or the commencement of any
suit, action or proceeding (a “Tax Contest”) in respect of which indemnity may be sought hereunder (specifying with reasonable particularity the basis therefor) within ten (10)
days of receipt thereof and will give Sellers’ Agent such information with respect thereto as Sellers’ Agent may reasonably request. Sellers’ Agent shall have the right, upon notice to Parent, to control the conduct and resolution of
any Tax Contest that (i) relates solely to a Pre-Closing Tax Period and (ii) does not involve any corporate-level Tax of the Company; provided that (A) Sellers’ Agent’s counsel is reasonably satisfactory to Parent, (B) Parent shall have
the right (but not the duty) to participate in the defense thereof, (C) Sellers’ Agent shall keep Parent reasonably informed of all developments on a timely basis, and (D) Sellers’ Agent shall not, without Parent’s consent, which
shall not be unreasonably withheld or delayed, agree to any settlement with respect to any Tax if such settlement could adversely affect the Tax liability of Parent, any of its Affiliates or, upon the Closing, the Company. Parent shall have the
right to control the conduct and resolution of any other Tax Contest and shall keep Sellers’ Agent reasonably informed of all developments on a timely basis. Sellers’ Agent may, at Seller’s expense, participate in the defense of such
Tax Contest. Parent shall not resolve any such Tax Contest in a manner that could reasonably be expected to have an adverse impact on Seller’s indemnification obligation under this Agreement without Sellers’ Agent’s written consent,
which 

52

  

shall not be unreasonably withheld or delayed. All of the parties hereto shall cooperate in the defense or prosecution of any claim.

      (f) No investigation by Parent or any of its Affiliates at or prior to the Closing Date shall relieve Sellers of any liability
  hereunder;

      (g) Any claim of any Parent Indemnitee under this Section may be made and enforced by Parent on behalf of such Parent Indemnitee.

      (h) Each of the Mezhvinsky Persons, jointly and severally up to the amount of their S Corporation Share, the Chen Persons,
  jointly and severally up to the amount of their S Corporation Share, and Frank Moreman, up to the amount of his S Corporation Share, by adopting this Agreement, shall hereby agree to indemnify each Parent Indemnitee against and agree to hold each
  Parent Indemnitee harmless from any (i) Tax of the Company resulting from the failure of the Company (and any predecessor of the Company) to be a validly electing S corporation within the meaning of Sections 1361 and 1362 of the Code, or to qualify
  as an S corporation for all state and local tax purposes, at all times from June 4, 2004 up to and including the day before the Closing Date caused solely by a failure of the Chen Minors Trust to be treated at all times as a QSST, and (ii) any
  liabilities, costs, expenses (including, without limitation, reasonable expenses of investigation and attorneys’ fees and expenses), losses, damages, assessments, settlements or judgments arising out of or incident to the imposition, assessment
  or assertion of any such Tax. For the purposes of indemnification under this Section 9.02(h), the value of each share of Parent Common Stock delivered in satisfaction of any claim shall be the average of the closing prices of one share of Parent
  Common Stock on The Nasdaq National Market for the five trading days ending two Business Days immediately prior to the payment of such claim. To the extent that any Loss pursuant to this Section 9.02(h) exceeds the Tax Escrow Fund, the settlement of
  an indemnification claim with respect to such Loss by any of the indemnifying parties may be made in Parent Common Stock or cash, at the election of such indemnifying party. Notwithstanding anything contained in this Agreement to the contrary, this
  Section 9.02(h) shall apply to any claims with respect to Taxes described under clause(i) of this Section 9.02(h), regardless of whether such claims could also be made under another Section of this Agreement. Notwithstanding the foregoing, to the
  extent that any Loss pursuant to this Section 9.02(h) exceeds the Tax Escrow Fund, or in the event that the Tax Escrow Account has terminated, the full amount of the Escrow Account shall be available for the satisfaction of such Loss even if a
  Person’s Pro Rata Share of such Escrow Account exceeds the amount of such Person’s indemnification obligation pursuant to this Section 9.02(h) . 

     Section 9.07. Certain Disputes. Disputes arising under Section 9.03(b) or Section 9.06(b) and not resolved by mutual agreement within 30 days
shall be resolved by a nationally recognized accounting firm with no material relationship with Parent, Sellers or their Affiliates (the “Accounting Referee”), chosen and mutually
acceptable to both Parent and Sellers within five days of the date on 

53

  

which the need to choose the Accounting Referee arises. The Accounting Referee shall resolve any disputed items within 30 days of having the item referred to it pursuant to such procedures as it may require. The costs, fees and
expenses of the Accounting Referee shall be borne equally by Parent and the Sellers in proportion to their Pro Rata Share.

      Section 9.08. Purchase Price Adjustment. Any amount paid by Sellers or Parent under Article 9 or Article 12 will be treated as an adjustment
  to the Merger Consideration.

      Section 9.09. Tax Certificates. Parent and the Company shall use commercially reasonable efforts to provide tax representation certificates
  substantially in the form of Exhibits I-1 and I-2 and J-1 and J-2 hereto to Wilson Sonsini Goodrich & Rosati, a Professional Corporation. The certificates attached as Exhibits I-1 and J-1 shall be delivered at the Closing, and the certificates
  attached as Exhibits I-2 and J -2 shall be delivered as soon as practicable after any adjustment is made pursuant to Section 2.07.

      Section 9.10. Tax-Free Reorganization Treatment. The parties intend, if the Mergers are consummated, that the First and Second Mergers be
  treated as one integrated transaction, qualifying as a 368 Reorganization and for this Agreement to constitute a “plan of reorganization” within the meaning of Treasury Regulations Section 1.368 -2(g). Prior to the Effective Time, each of
  Parent and the Company shall use commercially reasonable efforts to cause the First Merger and the Second Merger to be treated as one integrated transaction that qualifies as a 368 Reorganization, and, except as otherwise provided in this Agreement,
  shall not take any action reasonably likely to cause the Mergers not so to qualify. Except as otherwise provided in this Agreement, Parent shall not take or omit to take, or cause the Surviving Entity to take or omit to take, any action after the
  Effective Time reasonably likely to cause the Mergers not to qualify as a 368 Reorganization. 

     Section 9.11. Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of this Article 9 other than Sections 9.09
and 9.10, shall survive for the full period of the applicable statutes of limitations (giving effect to any waiver, mitigation or extension thereof). 

ARTICLE 10

    EMPLOYEE BENEFITS

     Section 10.01. Company Plans.

     (a) The Company will, and shall cause Sellers to, terminate all of the Company’s stock option plans or agreements effective
at the Effective Time and shall take all actions required to give effect to such termination. The Company will cancel each Company Stock Option outstanding at the Effective Time. 

54

  

     (b) Effective as the Effective Time, the Company shall terminate any and all 401(k) plans sponsored or maintained by the Company
and shall provide Parent evidence of such termination.

     Section 10.02. Parent Benefit Plans.
     (a) Subject to the other provisions of this Section 10.02, Parent agrees that all full-time employees of the Company who continue
employment with the Surviving Entity or Parent after the Effective Time (the “Continuing Employees”) shall have the opportunity to participate in employee benefit plans of Parent
(the “Plans”) that provide benefits as follows:

        (i) Parent will cause Continuing Employees to have benefits that are substantially similar in the aggregate to the benefits provided by Parent
    to employees of Parent (and their eligible dependants) serving in comparable positions;

        (ii) Parent will grant options to purchase Parent Common Stock to Continuing Employees in amounts consistent with stock option awards for
    similarly situated employees of Parent, consistent with Parent’s applicable stock option practices and procedures; and

        (iii) (x) Parent will allow the Continuing Employees and their eligible dependents to participate in the Plans on terms no less favorable than
    those provided to similarly situated employees of Parent, (y) each such Continuing Employee will receive credit for purposes of eligibility to participate and vesting under such Plan for years of service with the Company prior to the Closing Date,
    and (z) Parent will use commercially reasonable efforts (but without a requirement to make any payments or incur any costs) to cause to be waived any and all pre-existing condition limitations, eligibility waiting periods and evidence of
    insurability requirements under any group health plans of Parent in which such employees and their eligible dependents will participate and will provide credit for any co-payments and deductibles prior to the Closing Date for purposes of satisfying
    any applicable deductible, out-of-pocket or similar requirements under any such plans that may apply after the Closing Date.

      (b) Nothing in this Section 10.02(b) or elsewhere in this Agreement shall be construed to create a right in any employee to
  employment with Parent or the Surviving Entity, and the employment of each Continuing Employee shall be “at will” employment, if permitted under Applicable Law. 

     Section 10.03. Parent Employee Stock Purchase Plan. Parent agrees that, to the extent permitted under Applicable Law and the terms of the
Plan applicable to other employees of Parent, as of the next general enrollment date under the amended and restated employee stock purchase plan sponsored by Parent (the “Parent ESPP”), Continuing Employees may participate in the Parent ESPP to 

55

  

the extent such Parent ESPP is in effect; provided, that nothing herein shall prevent Parent from terminating the Parent ESPP at any time. 

     Section 10.04. Parent Management and Board Appointee. Parent shall cause Leonid Mezhvinsky to be (i) appointed President of Parent, effective
at the Effective Time, and (ii) appointed to the board of directors of Parent as soon as reasonably practicable after the date that Parent has appointed an "Independent Director" (as defined under Nasdaq Marketplace Rule 4200(a)(15)). 

ARTICLE 11

    CONDITIONS TO CLOSING

     Section 11.01. Conditions to Obligations of Each Party. The obligations of the Company, Parent, Merger Subsidiary I, Merger Subsidiary II and
Sellers to consummate the Mergers are subject to the satisfaction or, to the extent permitted, the mutual waiver, of the following conditions:

      (a) No provision of any Applicable Law, no regulation of any Governmental Authority of competent jurisdiction and no judgment,
  injunction, order or decree of any Governmental Authority of competent jurisdiction shall have been enacted or otherwise be in effect that prohibits the consummation of the Mergers.

      (b) All actions by or in respect of or filings with any governmental body, agency, official or authority required to permit the
  consummation of the Mergers shall have been taken, made or obtained.

      Section 11.02. Conditions to Obligation of Parent and the Merger Subsidiaries. The obligation of Parent and the Merger Subsidiaries to
  consummate the Mergers is subject to the satisfaction or, to the extent permitted, waiver of the following conditions: 

     (a) (i) The Company and each Seller shall have performed in all material respects their respective obligations hereunder to the
extent required to be performed by it or such Seller, as the case may be, at or prior to the Closing, (ii) the representations and warranties of the Company and Leonid Mezhvinsky contained in this Agreement and in any certificate delivered by the
Company, Leonid Mezhvinsky or a Seller at the Closing (A) that are qualified by materiality or Material Adverse Effect shall be true and correct at and as of the Closing as if made at and as of such time (except to the extent any such representation
or warranty speaks as of a specific date, in which case such representation or warranty shall be true and correct as of such date), and (B) that are not qualified by materiality or Material Adverse Effect shall be true and correct in all material
respects at and as of the Closing as if made at and as of such time (except to the extent any such representation or warranty speaks as of a specific date, in which case such representation or warranty shall be true and correct in all material

56

  

respects as of such date), and (iii) Parent shall have received a certificate signed by each Seller and on behalf of the Company by its President and Chief Executive Officer, Leonid Mezhvinsky, to the foregoing effect.

      (b) No claim, action, suit, arbitration, inquiry, proceeding or investigation by any Governmental Authority shall have been
  commenced against the Company, Sellers, the Merger Subsidiaries or Parent, seeking to restrain or materially and adversely alter the transactions contemplated hereby which would, if successful, render it impossible or unlawful to consummate the
  transactions contemplated by this Agreement or which would reasonably be expected to have a Material Adverse Effect on the Company or Parent.

      (c) There shall not have occurred any notice, demand or perfection of dissenter’s rights with respect to any of the Shares.

      (d) Parent shall have received the (i) Escrow Agreement, duly executed by the Sellers’ Agent and the Escrow Agent, (ii)
  Amended and Restated Stockholders’ Agreement, duly executed by FP Ultra Clean, LLC and each Seller, (iii) Amended and Restated Registration Rights Agreement, duly executed by each Seller, (iv) Mezhvinsky Employment Agreement, duly executed by
  Leonid Mezhvinsky, (v) Mezhvinsky Non-Compete Agreement duly executed by Leonid Mezhvinsky, (vi) Chen Non-Compete Agreement, duly executed by Joe Chen, and (vii) Lockup Agreement, duly executed by Leonid Mezhvinsky.

       (e) The Lease Amendment shall be in full force and effect.

      (f) Parent shall have timely received a payoff letter from the Union Bank of California, N.A. establishing the total amount of
  all principal and accrued interest required to be paid at the Closing in order to completely repay and cancel the Company’s indebtedness under the Loan Agreement and certifying that upon such payment there will be no further financial
  obligations under the Loan Agreement and no further payments, penalties or fees due as a result of the payment or prepayment of such indebtedness.

      (g) Silicon Valley Bank shall have provided financing to Parent in the amount of $25,000,000.

      Section 11.03. Conditions to Obligation of the Company and Sellers. The obligation of Sellers to consummate the Mergers is subject to the
  satisfaction or, to the extent permitted, waiver of the following conditions: 

     (a) (i) Parent and each of the Merger Subsidiaries shall have performed in all material respects their respective obligations
hereunder to the extent required to be performed by it or such Merger Subsidiary, as the case may be, at or prior to the Closing, (ii) the representations and warranties of Parent in this Agreement and in any certificate delivered by Parent at the
Closing (A) that are qualified by materiality or Material Adverse Effect shall be true and correct at and as of the Closing as if made at and as of such time (except to the extent any such 

57

  

representation or warranty speaks as of a specific date, in which case such representation or warranty shall be true and correct as of such date), and (B) that are not qualified by materiality or Material Adverse Effect shall be
true and correct in all material respects at and as of the Closing as if made at and as of such time (except to the extent any such representation or warranty speaks as of a specific date, in which case such representation or warranty shall be true
and correct in all material respects as of such date), and (iii) the Company shall have received a certificate signed on behalf of Parent by its President to the foregoing effect.

      (b) Sellers shall have received (i) the Escrow Agreement, duly executed by the Escrow Agent and Parent, and (ii) the Amended and
  Restated Stockholders’ Agreement, duly executed by Parent and FP-Ultra Clean, LLC.

      (c) Sellers
    shall have received the Amended and Restated Registration Rights Agreement
    duly executed by Parent and such agreement  shall be in the full force and
    effect.   

     (d) Leonid Mezhvinsky shall
  have received the Mezhvinsky Employment Agreement
    duly executed by Parent and such agreement shall be in full force and effect. 

ARTICLE 12

    SURVIVAL; INDEMNIFICATION

     Section 12.01. Survival. The representations and warranties of the parties hereto contained in this Agreement or in any certificate or other
writing delivered pursuant hereto or in connection herewith shall survive the Closing until 18 months after the Closing Date (such 18-month period the “Indemnity Period”);
provided that (i) the representations and warranties in Sections 4.05, 4.06 and 4.22 and the covenants contained herein shall survive indefinitely or until the expiration of the applicable
statute of limitations and (ii) the representations contained in Article 9 shall survive in accordance with the terms of Section 9.11. Notwithstanding the preceding sentence, any representation or warranty in respect of which indemnity may be sought
under this Agreement shall survive the time at which it would otherwise terminate pursuant to the preceding sentence, if written notice of the inaccuracy or breach thereof giving rise to such right of indemnity shall have been given pursuant to the
terms of this Agreement to the party against whom such indemnity may be sought prior to such time. Neither the period of survival nor the extent of indemnification is reduced by any investigation by Parent. 

     Section 12.02. Indemnification.

      (a) From and after the Closing, each of (i) the Mezhvinsky Persons, jointly and severally up to Leonid Mezhvinsky’s Pro Rata
  Share (which for 

58

purposes of this Section 12.02 only shall be deemed to include the Pro Rata Share of each of the Mezhvinsky Living Trust, Victor Mezhvinsky and the Joshua Trust), (ii) the Chen Persons, jointly and severally up to Joe Chen’s
Pro Rata Share (which for purposes of this Section 12.02 only shall be deemed to include the Pro Rata Share of each of the Chen Living Trust and the Chen Minors Trust) and (iii) Frank Moreman, severally, and not jointly, in proportion to their Pro
Rata Share, by adopting this Agreement, shall agree to indemnify Parent and its Affiliates and the Surviving Entity against, and agree to hold each of them harmless from, any and all damage, loss, liability and expense (including, without
limitation, reasonable expenses of investigation and reasonable attorneys’ fees and expenses in connection with any action, suit or proceeding whether involving a third party claim or a claim solely between the parties hereto)
(“Damages”), regardless of whether such Damages arise as a result of the negligence, strict liability or any other liability under any theory of law or equity of, or violation of
any law by, Parent or any of its Affiliates, incurred or suffered by Parent, any Affiliate of Parent or the Surviving Entity (collectively, the “Indemnified Parties”) arising out
of any or all of the following, in each case, other than Damages relating to Taxes, which shall be governed by Article 9: any inaccuracy or breach of any representation or warranty of the Company contained in this Agreement or any certificate
delivered pursuant hereto (each such inaccuracy or breach, a “Warranty Breach”) or breach of covenant or agreement of the Company contained in this Agreement.

      (b) (i) The Indemnified Parties shall not be entitled to indemnification pursuant to Section 12.02(a) with respect to a Warranty
  Breach (other than any Warranty Breach of Sections 4.05, 4.06 and 4.22) until such time as the total amount of all Damages that have been suffered or incurred by any one or more of the Indemnified Parties exceeds $500,000 in the aggregate. If the
  total amount of such Damages exceeds $500,000, then the Indemnified Parties shall be entitled to be indemnified against and compensated and reimbursed for the aggregate amount of all Damages in excess of such $250,000. 

     (ii) From and after the Closing, except for claims based upon fraud or intentional misrepresentation, the indemnification provisions set forth
in Section 9.06 and this Article 12 shall be the sole and exclusive remedy of Parent and the other Indemnified Parties for Damages for any Warranty Breach under this Agreement. With respect to indemnification by Company Shareholders for any Warranty
Breach under this Article 12 (excluding any Warranty Breach of Sections 4.05, 4.06 and 4.22), the Company Shareholders’ maximum aggregate liability shall not exceed $5,000,000 (it being understood that the Escrow Fund shall be the sole recourse
of the Indemnified Parties until the Escrow Fund has been finally released and that after the release of the Escrow Fund, the Indemnified Parties may recover only an amount equal to the difference between $5,000,000 and the amount of the Escrow Fund
actually distributed in the aggregate to the Indemnified Parties pursuant to Article 12 for Warranty Breaches). Notwithstanding anything to the contrary in this Agreement, no 

59

  

Company Shareholder shall be liable hereunder for any Damages in excess of such Company Shareholder’s Pro Rata Share of such Damages.

     (iii) For purposes of computing the amount of any Damages incurred by the Indemnified Parties: (x) there shall be deducted an amount equal to
the amount of any net Tax benefit to be actually received by the Indemnified Parties or any of their respective Affiliates directly as a consequence of such Damages, (y) there shall be taken into account the amount of any liabilities reflected in
the Closing Balance Sheet and (z) the references to Material Adverse Effect or materiality (or other correlative terms, including as expressed in accounting concepts such as “GAAP”) shall be disregarded for purposes of determining the
amount of Damages only. 

     Section 12.03. Procedures.
     (a) Each Indemnified Party agrees to give prompt notice to the party against whom indemnity is sought (the “Indemnifying Party”) of the assertion of any claim, or the commencement of any
suit, action or proceeding in respect of which indemnity may be sought under Section 12.02 by delivering to Sellers’ Agent a duly authorized and executed certificate (the “Claim Certificate”), which Claim Certificate shall:

        (i) state that the Indemnified Party has paid, incurred or reasonably expects to incur Damages for which such Indemnified Party is entitled to
    indemnification pursuant to this Article 12; and

        (ii) specify in reasonable detail each individual item of Damages included in the amount so stated, the date such item was paid, incurred or is
    expected to be incurred, the nature of the inaccuracy, breach, breach of covenant or agreement to which each such item is related and the computation of the amount to which such Indemnified Party claims to be entitled hereunder. 

     (b) In the event that Sellers’ Agent does not object to the indemnification of an Indemnified Party in respect of any claim
or claims (or the amount actually paid or incurred of such claim or claims) specified in any Claim Certificate within thirty days after receipt by Sellers’ Agent of such Claim Certificate, such claim or claims shall be paid promptly by
Sellers’ Agent to Parent on behalf of such Indemnified Party. In the event that Sellers’ Agent shall object to the indemnification of an Indemnified Party in respect of any claim or claims specified in any Claim Certificate, Seller’s
Agent shall, within thirty days after receipt by Sellers’ Agent of such Claim Certificate, deliver to the Escrow Agent, with a copy to the Indemnified Party, a written notice (a “Shareholder’s
Certificate”) specifying (i) each such amount to which the Sellers’ Agent objects and (ii) in reasonable detail the nature and basis for each such objection and Seller’s Agent and the Indemnified Party
shall, within the thirty day period beginning on the date of receipt by the Indemnified Party of such written 

60

  

objection, attempt in good faith to agree upon the rights of the respective parties with respect to each of such claims to which Sellers’ Agent shall have so objected. If the Indemnified Party and Sellers’ Agent shall
succeed in reaching agreement with respect to any of such claims, the Indemnified Party and Sellers’ Agent shall promptly prepare and sign a memorandum setting forth such agreement. The Indemnified Party and the Escrow Agent (if the Escrow
Agreement is still in effect) shall be entitled to rely on any such memorandum and indemnification shall be made in accordance with the terms thereof.

       (iii) Should the Indemnified Party and Sellers’ Agent be unable to agree as to any particular item or items or amount or amounts set forth
    in the Claim Certificate, then either Parent or Sellers’ Agent may demand arbitration of the matter, to be conducted by one arbitrator mutually agreeable to Parent and Sellers’ Agent. In the event that, within twenty days after
    determination to submit any dispute to arbitration, Parent and Seller’s Agent cannot mutually agree on one arbitrator, then, within ten days after the end of such twenty day period, Parent and Sellers’ Agent shall each select one
    arbitrator. The two arbitrators so selected shall select a third arbitrator.

        (iv) Any such arbitration shall be held in Santa Clara County, California, under the rules then in effect of the American Arbitration
    Association. The losing party shall pay or reimburse the prevailing party, as applicable, all expenses relating to the arbitration, including the respective expenses of each party, the fees of each arbitrator and the administrative fee of the
    American Arbitration Association. The decision of the arbitrator or a majority of the three arbitrators, as the case may be, as to the validity and amount of any claim in such Claim Certificate shall be final, binding, and conclusive upon the
    parties to this Agreement and the Indemnifying Parties, absent manifest error. Promptly after a decision of the arbitrator(s) requiring payment by an Indemnifying Party to an Indemnified Party, Sellers’ Agent shall make such payment to such
    Indemnified Party, including any distributions out of the Escrow Fund, as applicable. 

     (c) Promptly after the assertion by any third party of any claim against any Indemnified Party that would reasonably be expected
to result in the incurrence by such Indemnified Party of Damages for which such Indemnified Party would be entitled to indemnification pursuant to this Article 12 (a “Third Party Claim”), such Indemnified Party shall deliver to the Sellers’ Agent written notice of such Third Party Claim, which notice shall specify in reasonable detail the nature of the Third Party Claim, the nature of the inaccuracy or
breach which gives rise to such indemnification obligation, and the Indemnified Party’s good faith estimate of the Damages it may incur with respect to such Third Party Claim (a “Third Party Claim
Notice”). The Indemnified Party shall have the right to conduct the defense of any such Third Party Claim, and the Sellers’ Agent shall be entitled on behalf of Sellers to participate, at is sole expense, in
the defense of 

61

  

such Third Party Claim; provided that (i) no Indemnifying Party shall be liable for indemnification of any Indemnified Party for any settlement of any such Third Party
Claim effected without the prior written consent of the Sellers’ Agent, and (ii) except with the prior written consent of the Sellers’ Agent, no settlement of any such Third Party Claim made without the prior written consent of the
Sellers’ Agent shall be determinative of the amount of Damages relating to such matter or whether or not indemnity is payable at all or the amount. 

ARTICLE 13

    TERMINATION

     Section 13.01. Grounds for Termination. This Agreement may be terminated and the Mergers may be abandoned at any time prior to the Effective
Time (notwithstanding any approval of this Agreement by the shareholders of the Company): 
(a) by mutual written agreement of the Company and Parent;

      (b) by any party if the Closing shall not have been consummated on or before 5:00 p.m. (California time) on July 15, 2006, or
  such later date as the Company, Sellers and Parent may agree (the “End Date”); provided that the right to terminate this
  Agreement pursuant to this Section 13.01(b) shall not be available to any party whose breach of any provision of this Agreement results in the failure of the Mergers to be consummated by such time; 

     (c) (i) by Parent, if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of
the Company set forth in this Agreement shall have occurred that would cause the condition set forth in Section 11.02(a) not to be satisfied; provided that if such breach or failure to
perform is curable by the Company on or prior to the End Date through the exercise of commercially reasonable efforts, then Parent may not terminate this Agreement under this Section 13.01(c) prior to thirty (30) days following the receipt of
written notice from Parent to the Company of such breach or failure to perform (it being understood that Parent may not terminate this Agreement pursuant to this Section 13.01(c) if it shall have materially breached this Agreement or if such breach
or failure to perform by the Company is cured so that such condition would then be satisfied), or (ii) by the Company if a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Parent set forth in
this Agreement shall have occurred that would cause the condition set forth in Section 11.03(a) not to be satisfied; provided that if such breach or failure to perform is curable by Parent
on or prior to the End Date through the exercise of commercially reasonable efforts, then the Company may not terminate this Agreement under this Section 13.01(c) prior to 30 days following the receipt of written notice from the Company to Parent,
of such breach or failure to perform (it being understood that the Company may not terminate this Agreement pursuant to this Section 13.01(c) if the Company shall have materially breached 

62

  

this Agreement or if such breach or failure to perform by Parent is cured so that such condition would then be satisfied); and

      (d) by the Company or Parent if there shall be any law or regulation that makes consummation of the transactions contemplated
  hereby illegal or otherwise prohibited or if consummation of the transactions contemplated hereby would violate any nonappealable final order, decree or judgment of any court or governmental body having competent jurisdiction.   

The party desiring to terminate this Agreement pursuant to clauses 13.01(b) through 13.01(d) shall give written notice of such termination to the other parties, which notice will briefly describe the basis for such termination and
    set forth the specific subsection of this Section 13.01 under which such party desires to terminate this Agreement. 

     Section 13.02. Effect of Termination. If this Agreement is terminated as permitted by Section 13.01, such termination shall be without
liability of any party (or any equity holder, director, officer, employee, agent, consultant or representative of such party) to the other parties to this Agreement; provided that if such
termination shall result from the (i) willful failure of any party to fulfill a condition to the performance of the obligations of the other parties, or (ii) willful failure to perform a covenant of this Agreement, such party shall be fully liable
for any and all Damages incurred or suffered by the other parties as a result of such failure or breach. The provisions of Sections 7.01, 8.04, 9.07, 14.03, 14.05 and 14.06 shall survive any termination hereof pursuant to Section 13.01. 

ARTICLE 14

    MISCELLANEOUS

     Section 14.01. Notices. All notices, requests and other communications to any party hereunder shall be in writing (including facsimile
transmission) and shall be given, 

if to Parent, to:

  Ultra Clean Holdings, Inc. 

    150 Independence Drive 

    Menlo Park, CA 94025 

    Attention: Chief Financial Officer

  Facsimile No.: (650) 326-0929 

63

  

  

    

    with a copy to:

  Davis Polk & Wardwell 

    1600 El Camino Real 

    Menlo Park, CA 94025 

    Attention: Alan F. Denenberg 

    Facsimile No.: (650) 752-2111

if to the Company, Sellers or the Sellers’ Agent, to:

  Sieger Engineering, Inc. 

    130 Beacon Street 

    South San Francisco, CA 94080

    Attention: Leonid Mezhvinsky 

    Facsimile No.: (650) 583-5823 

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

  Wilson Sonsini Goodrich & Rosati 

    Professional Corporation 

    One Market, Spear Tower, Suite 3300

    San Francisco, CA 94105 

    Attention: Robert T. Ishii 

    Facsimile No.: (415) 947-2099 

or such other address or facsimile number as such party may hereafter specify for the purpose by notice to the other parties hereto. All such notices, requests and other communications hereunder shall be deemed duly given (i) on
the date of delivery if delivered personally, (ii) on the date of confirmation of receipt (or, the first Business Day following such receipt if the date is not a Business Day) of transmission by telecopy or telefacsimile, or (iii) on the date of
confirmation of receipt (or, the first Business Day following such receipt if the date is not a Business Day) if delivered by a nationally recognized courier service.

     Section 14.02. Amendments
and Waivers.

      (a) Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is
  signed, in the case of an amendment, by each party to this Agreement, or in the case of a waiver, by the party or parties against whom the waiver is to be effective. 

     (b) No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor
shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law. 

64

  

     Section 14.03. Expenses. Except as otherwise provided herein (including, without limitation, Section 2.09), all costs and expenses incurred
in connection with this Agreement shall be paid by (i) Sellers to the extent the Company or Sellers have incurred such costs and expenses and (ii) Parent to the extent Parent has incurred such cost or expense.

      Section 14.04. Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
  and their respective successors and assigns; provided that no party may assign, delegate or otherwise transfer, other than by Parent to a Subsidiary of Parent (provided that Parent shall continue to be liable for all of its obligations hereunder), any of its rights or obligations under this Agreement without the consent of each other party hereto.

      Section 14.05. Governing Law. This Agreement shall be governed by and construed in accordance with the law of the State of California,
  without regard to the conflicts of law rules of such state.

      Section 14.06. Jurisdiction. The parties hereto agree that any suit, action or proceeding seeking to enforce any provision of, or based on
  any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby shall be brought in the United States District Court for the Northern District of California or any California State court sitting in San Jose,
  California, so long as one of such courts shall have subject matter jurisdiction over such suit, action or proceeding, and that any cause of action arising out of this Agreement shall be deemed to have arisen from a transaction of business in the
  State of California, and each of the parties hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent
  permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding brought in any such court has been brought in an
  inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of
  process on such party as in accordance with Section 14.01 shall be deemed effective service of process on such party. 

     Section 14.07. Counterparts; Effectiveness; Third Party Beneficiaries. This Agreement may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement shall become effective upon the execution of each party hereto of a counterpart signature page hereto. No
provision of this Agreement is intended to confer any rights, benefits, remedies, obligations, or liabilities hereunder upon any Person other than the parties hereto and their respective successors and assigns. 

65

  

     Section 14.08. Entire Agreement. This Agreement and the Ancillary Documents constitute the entire agreement between the parties with respect
to the subject matter of this Agreement and the Ancillary Documents and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement and the Ancillary
Documents.

      Section 14.09. Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
  or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as
  the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any party. Upon such a determination, the parties shall negotiate in good faith to modify this Agreement so as to effect the
  original intent of the parties as closely as possible in a reasonably acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 

     Section 14.10. Specific Performance. The parties hereto agree that irreparable damage would occur if any provision of this Agreement were not
performed in accordance with the terms hereof and that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement or to enforce specifically the performance of the terms and provisions hereof in the United
States District Court for the Northern District of California or any California State Court sitting in San Jose, California, in addition to any other remedy to which they are entitled at law or in equity. 

66

  

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written. 

	 	
    SIEGER ENGINEERING, INC.	
	 	 	 
	 	By:	 

	 	 	

	 	 	 Name:
	
	 	 	 Title:
	

	 	  LEONID
    MEZHVINSKY 
	 	 	 
	 	By:	  
	 	 	

	 	 	 Name: 
	 	 	 Title: 

	 	   ULTRA
          CLEAN HOLDINGS, INC. 
	 	 	 
	 	By:	  
	 	 	

	 	 	 Name: 
	 	 	 Title: 

	 	    BOB
            ACQUISITION INC. 
	 	 	 
	 	By:	  
	 	 	

	 	 	 Name: 
	 	 	 Title: 

	 	    PETE
            ACQUISITION LLC 
	 	 	 
	 	By:	  
	 	 	

	 	 	 Name: 
	 	 	 Title: 

THE FOLLOWING PARTIES ARE PARTIES TO THIS AGREEMENT

SOLELY
WITH RESPECT TO SECTIONS 4.01(b), 4.02(b) 4.04 (in each

case only with respect
to itself), 9.03, 9.05, 9.06, 9.07 and 12.02: 

	 	 	
LEONID AND INNA MEZHVINSKY	
	 	 	
AS TRUSTEES OF THE REVOCABLE	
	 	 	
TRUST AGREEMENT OF LEONID	
	 	 	
MEZHVINSKY AND INNA	
	 	 	
MEZHVINSKY DATED	
	 	 	
APRIL 26, 1988	
	 	 	 
	 	 	 
	 	
      
	
	 	 	 
	 	 	 
	 	 	
JOE AND JENNY CHEN AS	
	 	 	
TRUSTEES OF THE JOE CHEN AND	
	 	 	
JENNY CHEN REVOCABLE TRUST	
	 	 	
DATED 2002	
	 	 	 
	 	 	 
	 	
      
	
	 	 	 
	 	 	 
	 	 	
VICTOR MEZHVINSKY	
	 	 	 
	 	 	 
	 	
      
	
	 	 	 
	 	 	 
	 	 	
VICTOR MEZHVINSKY AS TRUSTEE	
	 	 	
OF THE JOSHUA MEZHVINSKY 2004	
	 	 	
IRREVOCABLE TRUST UNDER	
	 	 	
AGREEMENT DATED JUNE 4, 2004	
	 	 	 
	 	 	 
	 	

	 	 	
DAVID HONGYU WU AND WINNIE	
	 	 	
WEI ZHEN WU AS TRUSTEES OF	
	 	 	
THE CHEN MINORS IRREVOCABLE	
	 	 	
TRUST	
	 	 	 
	 	 	 
	 	
    
	
	 	 	 
	 	 	 
	 	 	
FRANK MOREMAN	
	 	 	 
	 	 	 
	 	
    
	
	 	 	 
	 	 	 
	 	 	
LEONID MEZHVINSKY	
	 	 	
AS THE SELLERS’ AGENT	
	 	 	 
	 	 	 
	 	

  

    Exhibit A

Amended and Restated Stockholders’ Agreement

  

    Exhibit B

Mezhvinsky Employment Agreement

  

    Exhibit C

Mezhvinsky Non-Compete Agreement

  

    Exhibit D

Chen Non-Compete Agreement

  

    Exhibit E

Lease Agreement

  

    Exhibit F

Amended and Restated Registration Rights Agreement

  

    Exhibit G

Escrow Agreement

  

  

    Exhibit H

Lockup Agreement

  

  

    Exhibit I-1

Closing Tax Representation Certificate

  

    Exhibit I-2

Company Closing Tax Representation Certificate

  

    Exhibit J-1

Parent Final Tax Representation Certificate

  

    Exhibit J-2

Company Final Tax Representation Certificate

  

    Exhibit K

Company Sales to Applied Materials, Inc.

Schedule A

Company Fees and Expenses Related to This AgreementExhibit 10.2

EXECUTION COPY

LOAN AND SECURITY AGREEMENT

     THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of the Effective Date among SILICON VALLEY BANK, a California corporation (“Bank”),
and ULTRA CLEAN TECHNOLOGY SYSTEMS AND SERVICE, INC., a California company (“Ultra Clean”), BOB ACQUISITION INC. (and any successor by merger), a California corporation, and PETE ACQUISITION LLC (to be renamed UCT Sieger Engineering LLC),
a Delaware limited liability company (“Sieger”, together with Ultra Clean and Bob, each a “Borrowers” and collectively, “Borrowers”), provides the terms on which Bank shall lend to Borrowers and Borrowers shall repay
Bank.  The parties agree as follows: 

1. ACCOUNTING AND OTHER TERMS.

     Accounting terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not
otherwise defined in this Agreement shall have the meanings set forth in Section 13.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.

2. LOAN AND TERMS OF PAYMENT.

     2.1. Promise to Pay.
Each Borrower hereby unconditionally, jointly and severally, promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 

       2.1.1. Revolving Advances.

          (a) Availability. Subject to the
terms and conditions of this Agreement, Bank will make Advances to Borrowers from time to time up to an aggregate amount (“Net Borrowing Availability”) not to exceed the lesser of:  (a) the Revolving Line; or (b) amounts available under
the Borrowing Base. 

          (b) Streamline Period.  Borrowers
may, at their option, elect not to have any Advances outstanding during specified periods of time (each, a “Streamline Period”).  At least 5 days prior to requesting that a Streamline Period be put into effect, Borrowers shall give Bank
written notice thereof, specifying the date the Streamline Period is to begin.  On or prior to the Business Day immediately preceding the commencement of the Streamline Period, Borrowers will pay to Bank, by wire transfer, an amount sufficient to
repay in full all outstanding Advances, all accrued interest thereon, and all other outstanding monetary Obligations then due hereunder. A Streamline Period may not be put into effect if there are outstanding Obligations in connection with Cash
Management Services in excess of $500,000.  Notwithstanding the foregoing, a Streamline Period may be permitted to exist even if Advances are outstanding so long as the Trigger Availability is in excess of $3,000,000 at all times during such
period.  During a Streamline Period, Borrowers will not be permitted to incur Obligations in connection with Cash Management Services in an amount more than $500,000 and no additional Letters of Credit will be issued.  During a Streamline
Period, Borrowers may not request any Advances, and Bank shall have no obligation to make any Advances. To terminate a Streamline Period, Borrowers shall provide Bank at least 15 days prior written notice thereof together with such information
relating to the

Eligible Accounts, the Cash Management Services Sublimit and other Collateral as Bank may reasonably request. 

          (c) Termination; Repayment. The
Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 

     2.1.2. Letters of Credit Sublimit.

          (a) As part of the Revolving Line, Bank shall issue or have issued Letters of Credit for a Borrower’s account for such Borrower’s benefit or for the
benefit of any of its Subsidiaries or its Affiliate, Shanghai. The sum of (i) the aggregate undrawn amount of all outstanding Letters of Credit plus (ii) the amount of reimbursement obligations in respect of Letters of Credit plus (iii)
any Letter of Credit Reserve may not exceed $10,000,000 minus the sum of (x) the Cash Management Services Sublimit and (y) the FX Sublimit (the “L/C Sublimit”). The amount otherwise available for Advances under the Revolving Line
(calculated as provided in Section 2.1.1(a)) will be reduced by the sum of amounts described in clauses (i) through (iii) and clauses (x) and (y) above. If, on the Revolving Maturity Date, there are any outstanding Letters of Credit, then on such
date Borrowers shall provide to Bank cash collateral in an amount equal to 105% of the sum of the undrawn amount of all such Letters of Credit plus the amount of all reimbursement obligations in respect of Letters of Credit, to secure all of the
Obligations relating to said Letters of Credit.  All Letters of Credit shall be in form and substance reasonably acceptable to Bank and shall be subject to the terms and conditions of Bank’s standard Application and Letter of Credit Agreement
(the “Letter of Credit Application”).  Borrowers agree to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. Borrowers further agree to be bound by the terms of each letter of credit
(and letter of credit application applicable thereto) guarantied by Bank and opened for a Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for a Borrower’s account, and Borrowers understand and
agree that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following a Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or supplements
thereto, except to the extent resulting directly from the gross negligence or wilful misconduct of Bank. The sum of (i) the aggregate undrawn amount of all outstanding Letters of Credit plus (ii) the amount of all reimbursement obligations in respect of Letters of Credit may not exceed the Availability Amount. 

          (b) The obligation of Borrowers to immediately reimburse Bank for drawings made under Letters of Credit shall be absolute, unconditional, irrevocable, and joint and
several and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. 

          (c) Each Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such Letter of Credit, Bank
shall treat such demand as an Advance to such Borrower of the equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges) in Dollars at the then-prevailing rate of exchange in San
Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency. 

          (d) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency (a “Foreign Currency
Letter of Credit”), Bank shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve
may be adjusted by Bank from time to time to account for fluctuations in the exchange rate.  The

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availability of Advances and for Letters of Credit under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as any Foreign Currency Letter of Credit
remains outstanding. 

        2.1.3. Foreign Exchange Sublimit.  As part of the Revolving Line, Borrowers may enter into
    foreign exchange contracts with Bank under which Borrowers commit to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement Date”). FX Forward
    Contracts shall have a Settlement Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract in a maximum aggregate amount equal to $250,000
    (the “FX Reserve”). The aggregate amount of FX Forward Contracts at any one time may not exceed $10,000,000 minus the sum of (i) the L/C Sublimit and (ii) the Cash Management Services Sublimit (the “FX Sublimit”). The
    obligations of Borrowers relating to this section may not exceed the Availability Amount. 

        2.1.4. Cash Management Services Sublimit. Borrowers may use up to $10,000,000 minus the sum
    of (i) the L/C Sublimit and (ii) the FX Sublimit (the “Cash Management Services Sublimit”) of the Revolving Line for Bank’s cash management services which may include merchant services, direct deposit of payroll, business credit card,
    and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”). Any amounts Bank pays on behalf of Borrowers or any amounts that are not paid by Borrowers for
    any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances.  The obligations of the Borrowers relating to this section may not exceed the Availability
    Amount. 

     2.1.5. Term Loan.

          (a) Availability.  Bank shall make
one (1) term loan available to Borrowers in an amount up to the Term Loan Amount on the Effective Date subject to the satisfaction of the terms and conditions of this Agreement. 

          (b) Repayment.  Borrowers shall
repay the Term Loan in (i) thirty-six (36) equal installments of principal, plus (ii) monthly payments of accrued interest (the “Term Loan Payment”). Beginning on the first day of the month following the month in which the Funding Date
occurs, each Term Loan Payment shall be payable on the last day of each month.  Borrowers’ final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan.
Borrowers shall have the right at any time to prepay the Term Loan prior to the Term Loan Maturity Date, as a whole or in part, without premium or penalty.  Any such prepayment of principal shall include accrued and unpaid interest to the date of
prepayment and shall be applied against the scheduled installments of principal in the inverse order of maturity. No amount repaid hereunder may be reborrowed. 

     2.2. Overadvances. If
at any time or for any reason the total of all outstanding Advances and all other monetary Obligations (other than the Term Loan) exceeds Net Borrowing Availability (an “Overadvance”), Borrowers shall if the amount of the Overadvance is
(a) equal or greater than $500,000, immediately pay the full amount of the Overadvance to Bank, without notice or demand, or (b) less than $500,000, within one (1) Business Day after the receipt of a request by  Bank therefore, pay the full
amount of the Overadvance to Bank. Without limiting each Borrower’s obligation to repay to Bank the full amount of any Overadvance, Borrowers agree to pay Bank interest at the Default Rate on the outstanding amount of any Overadvance on demand.

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     2.3. Payment of Interest on the Credit Extensions.

          (a) Interest Rate 

             (i) Advances. Subject to Section
    2.3(b), Advances shall accrue interest at a per annum rate equal to, so long as the Senior Leverage Ratio as set forth in the most recent Compliance Certificate is less than 1.0:1.0, 0.75 percentage points below the Prime Rate, and if greater than
    1.0:1.0, 0.50 percentage points below the Prime Rate, which interest shall be payable monthly. 

             (ii) Term Loan. Subject to Section
    2.3(b), the principal amount outstanding under the Term Loan shall accrue interest at a per annum rate equal to, so long as the Senior Leverage Ratio as set forth in the most recent Compliance Certificate is less than 1.0:1.0, 0.25 percentage points
    below the Prime Rate, and if greater than 1.0:1.0, the Prime Rate. 

             (iii) Change in Interest Rate. Any
    increase or decrease in the interest rate in paragraphs (i) and (ii) above resulting from a change in the Senior Leverage Ratio shall become effective commencing on the first Business Day of the month immediately following the date a Compliance
    Certificate is delivered pursuant to Section 6.2(a)(iv); provided, however, that if a Compliance Certificate is not delivered when due in accordance with Section 6.2(a)(iv), the highest interest rate set forth in paragraphs (i) and (ii) above shall
    apply commencing on the first Business Day of the month following the date such Compliance Certificate was required to have been delivered and continuing until the day that is two (2) Business Days after the date that such Compliance Certificate is
    delivered to Bank. The interest rate in effect from the Effective Date through the first Business Day of the month immediately following the date the Compliance Certificate for the period ending June 29, 2006 is required to be delivered pursuant to
    Section 6.2(a)(iv) shall be the highest interest rate set forth in paragraphs (i) and (ii) above. 

          (b) Default Rate. Upon the
occurrence and during the continuance of an Event of Default, Obligations shall bear interest at a rate per annum which is two (2) percentage points above the rate effective immediately before the Event of Default (the “Default Rate”)
commencing on the date that Bank gives Borrowers notice that such Default Rate is then applicable. Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not
constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 

          (c) Adjustment to Interest Rate.
Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. 

          (d) 365-Day Year. Interest shall be
computed on the basis of a 365-day year for the actual number of days elapsed. 

          (e) Debit of Accounts.  Bank may
automatically debit any of Borrowers’ deposit accounts, including the Designated Deposit Account, for principal and interest payments when due and for any other amounts Borrowers owe Bank when overdue. These debits shall not constitute a
set-off. 

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          (f) Change to Revolving Line.
Subject to prior satisfaction with applicable conditions set forth in Section 3 with respect to any Credit Extension, Borrowers may request an Advance to be applied to the payment of any interest and/or Bank Expenses due under the Loan Documents.

          (g) Payment; Interest Computation; Float Charge. Interest is payable monthly on the last calendar day of each month. In computing interest on the Obligations, all Payments received after 12:00 p.m. Pacific time on any day shall be deemed received on the next Business Day. In
addition, so long as any principal or interest with respect to any Credit Extension remains outstanding, Bank shall be entitled to charge Borrowers a “float” charge in an amount equal to three (3) Business Days interest, at the interest
rate applicable to the Credit Extensions, on all Payments received by Bank. Said float charge is not included in interest for purposes of computing Minimum Monthly Interest (if any) under this Agreement. The float charge for each month shall be
payable on the last day of the month. Bank shall not, however, be required to credit any Borrower’s account for the amount of any item of payment which is unsatisfactory to Bank in its good faith business judgment, and Bank may charge any
Borrower’s Designated Deposit Account for the amount of any item of payment which is returned to Bank unpaid. 

     2.4. Fees. Borrowers shall jointly and severally pay
to Bank:

          (a) Commitment
Fee. A fully
earned,  non-refundable commitment fee of $121,875, on the Effective Date; 

          (b) Letter of Credit Fee.
Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, including, without limitation, a Letter of Credit Fee of 0.75 percentage points per annum of the face amount of each Letter of Credit issued, upon the issuance
or renewal of such Letter of Credit by Bank. In the event that any Letter of Credit is cancelled or terminated and returned to Bank prior to its stated expiry date, Bank shall return to Borrowers the pro rata portion of such fee applicable to what
would have been the unexpired period. 

          (c) Termination Fee.  Subject to the
terms of Section 4.1, the termination fee specified in Section 4.1; 

          (d) Collateral Monitoring Fee.  So
long as any Advances or Letters of Credit are outstanding during any month or portion thereof, a monthly collateral monitoring fee of $1,500, payable in arrears on the last day of such month (prorated for any partial month), commencing on the
last day of the month during which the Effective Date occurs, and upon termination of this Agreement; and 

          (e) Bank Expenses.  All Bank
Expenses (including reasonable attorneys’ fees and expenses, plus expenses, for documentation and negotiation of this Agreement, and amounts due under Section 6.6) incurred through and after the Effective Date, when due. 

3. CONDITIONS OF LOANS.

     3.1. Conditions Precedent to Initial Credit Extension.  Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents (and when required in
original form, it shall be sufficient to deliver facsimiles of such documents followed by delivery of executed originals to Bank within three (3) days of the Effective Date by personal delivery or United States mail as otherwise provided in this
Section 10), and completion of such other matters, as Bank may reasonably deem necessary or appropriate, including, without limitation: 

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          (a) Borrowers shall have delivered duly executed original signatures to the Loan Documents to which it is a party; 

          (b) Borrowers shall have delivered its Operating Documents and a good standing certificate of each Borrower certified (in original form) by the Secretary of State of
its jurisdiction of incorporation as of a date no earlier than thirty (30) days prior to the Effective Date; 

          (c) Borrowers shall have delivered copies of the Borrowing Resolutions for each Borrower accompanied by duly executed original officer’s certificates certifying
thereto; 

          (d) Borrowers shall have delivered final copies of all Merger Documents and evidence of consummation of the Acquisition, including but not limited to, all necessary
filings with any Governmental Authority; 

          (e) Borrowers shall have delivered a payoff letter from Union Bank of California;

          (f) Borrowers shall have delivered (i) evidence that the Liens securing Indebtedness owed by Borrowers to Union Bank of California under the existing credit facility
have been or will, substantially contemporaneously with the initial Credit Extension, be terminated and (ii) evidence of (or such documents as Bank shall reasonably require to effect) the termination as of record of (A) such Liens, including without
limitation any financing statements, Intellectual Property filings and/or control agreements in connection therewith, and (B) all financing statements, Intellectual Property filings and/or control agreements filed by, or entered into by Ultra Clean
or Holdings with, Wells Fargo Foothill, Inc. 

          (g) Bank shall have received certified copies, dated as of a recent date, of such financing statement searches as Bank shall reasonably request with respect to the
assets of Borrowers or Holdings, accompanied by evidence reasonably satisfactory to Bank (including any UCC termination statements) that the Liens indicated in any such financing statement searches either constitute Permitted Liens or have been or,
in connection with the initial Credit Extension, will be terminated or released; 

          (h) Borrowers shall have delivered originals of the Perfection Certificate(s) executed by each Borrower and Guarantor; 

          (i) Borrowers shall have delivered an original landlord’s consent with respect to each leasehold property of a Borrower in favor of Bank; 

          (j) Borrowers shall have delivered opinions of (i) Morris, Nichols, Arsht & Tunnell LLP, special Delaware counsel, and (ii) Baker & McKenzie LLP, special
California counsel, each dated as of the Effective Date together with the duly executed original signatures thereto; 

          (k) Holdings shall have delivered a duly executed original signature (or facsimile copies thereof to the Guaranty and the Holdings IP Pledge Agreement, together with
the completed Borrowing Resolutions for Holdings; 

          (l) Borrowers shall have delivered certificates of insurance satisfactory to Bank evidencing that the insurance policies required by Section 6.7 hereof are in full
force and effect, and containing loss payable and/or additional insured clauses or endorsements in favor of Bank to the extent required thereunder; and 

          (m) Borrowers shall have paid the fees and Bank Expenses then due as specified in Section 2.4 hereof. 

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     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) except as otherwise provided in Section 3.4(a), timely receipt by Bank of an executed Payment/Advance Form; 

          (b) the representations and warranties in Section 5, as any such representation or warranty may be modified in a manner expressly permitted by the Loan Documents
(e.g., a change in a Borrower’s legal name in accordance with Section 7.2) , shall be true in all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such
materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a
specific date shall be true, accurate and complete in all material respects as of such date, and no Default or Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is each Borrower’s
representation and warranty on that date that the representations and warranties in Section 5 remain true in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; and 

          (c) in Bank’s sole discretion, there has not been a Material Adverse Change.

     3.3. Covenant to Deliver. Each Borrower agrees to deliver to Bank each item required to be delivered to Bank under this Agreement prior to the Funding Date thereof, as a condition to any Credit Extension. Each Borrower expressly agrees that the extension of a
Credit Extension prior to the receipt by Bank of any such item shall not constitute a waiver by Bank of Borrowers’ obligation to deliver such item, and any such extension in the absence of such a required item shall be in Bank’s sole
discretion. 

     3.4. Procedures for Borrowing.  Subject to the prior satisfaction of all other applicable conditions to the making of a Credit Extension set forth in this Agreement, to obtain a Credit Extension (other than Advances under Sections 2.1.2 or 2.1.4), Borrowers shall
notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Credit Extension.  Together with such notification, Borrowers must promptly deliver to Bank by
electronic mail or facsimile a completed Transaction Report, each executed by a Responsible Officer or his or her designee. Bank shall credit Credit Extensions to the Designated Deposit Account. Bank may make Credit Extensions under this Agreement
based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to satisfy Obligations that are not paid when due.  Bank may rely on any telephone notice given by a person whom Bank
believes is a Responsible Officer or designee. 

4. CREATION OF SECURITY INTEREST.

     4.1. Grant of Security Interest. Each Borrower hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter
acquired or arising, and all proceeds and products thereof.  Each Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the
Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement).  If any Borrower shall acquire a commercial tort claim or claims involving claims in an amount, individually or in the aggregate,
of at least $100,000, such Borrower shall promptly notify Bank

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in a writing signed by such Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably satisfactory to Bank. 

     This Agreement may be terminated prior to the Revolving Maturity Date by Borrowers, effective three (3) Business Days after written notice of termination is given to
Bank or if Bank’s obligation to fund Credit Extensions terminates pursuant to the terms of Section 2.1.1(c) . Notwithstanding any such termination, Bank’s lien and security interest in the Collateral shall continue until Borrowers fully
satisfy their Obligations. If such termination is at Borrowers’ election, Borrowers shall jointly and severally pay to Bank, in addition to the payment of any other expenses or fees then owing under any Loan Document, a termination fee in an
amount equal to one percent (1.0%) of the Revolving Line plus the outstanding principal amount of the Term Loan at such time provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from
another division of Silicon Valley Bank. Upon payment in full of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall release its liens and security interests in the Collateral and all
rights therein shall revert to the pledgors thereof. 

     4.2. Authorization to File Financing Statements.  To the extent permitted by applicable law, each Borrower hereby authorizes Bank to file Uniform Commercial Code financing statements, without notice to such Borrower, with all appropriate jurisdictions to perfect or
protect Bank’s interest or rights under this Section 4. 

5. REPRESENTATIONS AND WARRANTIES

     Borrowers represent and warrant as follows:

     5.1. Due Organization and Authorization. Each Borrower and each of their Subsidiaries are duly existing and in good standing in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing in any
jurisdiction in which the conduct of their business or their ownership of property requires that they be qualified except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrowers’ businesses. In
connection with the execution and delivery of this Agreement, Borrowers have delivered to Bank completed certificates substantially in the form attached hereto as Exhibit C each signed by each Borrower and
Guarantor, respectively, entitled “Perfection Certificate”. Each Borrower represents and warrants to Bank that, as of the Effective Date, (a) such Borrower’s exact legal name is that indicated on the Perfection Certificate and on the
signature page hereof; (b) such Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection Certificate accurately sets forth such Borrower’s organizational
identification number or accurately states that such Borrower has none; (d) the Perfection Certificate accurately sets forth such Borrower’s place of business, or, if more than one, its chief executive office as well as such Borrower’s
mailing address (if different than its chief executive office); (e) except as otherwise described in the Perfection Certificate, such Borrower (and each of its predecessors) has not, in the past five (5) years, changed its jurisdiction of
organization, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to such Borrower and each of its Subsidiaries is accurate and
complete. If a Borrower is not now a Registered Organization but later becomes one, such Borrower shall promptly notify Bank of such occurrence and provide Bank with such Borrower’s organizational identification number.

     The execution, delivery and performance of the Loan Documents have been duly authorized, and do not conflict with any Borrower’s organizational documents, nor
constitute an event of default under any material agreement by which any Borrower is bound. No Borrower is in default under any agreement

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to which it is a party or by which it is bound, except for any defaults which could not reasonably be expected to have a material adverse effect on the Borrowers’ businesses, taken as a
whole. 

     5.2. Collateral.  Each
Borrower has good title to the Collateral, free of Liens except Permitted Liens.  As of the Effective Date, each Borrower has no deposit account other than (a) the deposit accounts with Union Bank of California specified in the Union Bank Control
Agreement, (b) the deposit accounts described in the Perfection Certificate delivered to Bank in connection herewith and (c) other deposit accounts located in the United States so long as the aggregate cash balances contained therein do not exceed
$25,000 per account or $100,000 in the aggregate with respect to all such accounts. 

     The Collateral is not in the possession of any third party bailee (such as a warehouse). Except as hereafter disclosed to Bank in writing by Borrowers, none of the
components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate.  In the event that any Borrower, after the date hereof, intends to store or otherwise deliver any material portion of the Collateral
to a bailee, then such Borrower will first receive the written consent of Bank and such bailee must acknowledge in writing that the bailee is holding such Collateral for the benefit of Bank. 

     All Inventory is in all material respects of good and marketable quality, free from material defects.

     Each Borrower is the sole owner of its Intellectual Property, except for non-exclusive licenses granted to its customers in the ordinary course of business. Each
Patent is valid and enforceable and no part of the Intellectual Property has been judged invalid or unenforceable, in whole or in part, and to the best of each Borrower’s knowledge, no claim has been made that any part of the Intellectual
Property violates the rights of any third party. 

     Except as noted on the Perfection Certificate, no Borrower is a party to, nor is bound by, any material license or other agreement with respect to which such
Borrower is the licensee that prohibits or otherwise restricts such Borrower from granting a security interest in such Borrower’s interest in such license or agreement or any other property. Each Borrower shall provide written notice to Bank
within ten (10) days of entering or becoming bound by any such license or agreement which is reasonably likely to have a material impact on such Borrower’s business or financial condition (other than over-the-counter software that is
commercially available to the public).  Each Borrower shall take such steps as Bank requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for all such licenses or contract rights to be deemed
“Collateral” and for Bank to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such license or agreement (such consent or authorization may include a licensor’s agreement to
a contingent assignment of the license to Bank if Bank determines that is necessary in its good faith judgment), whether now existing or entered into in the future. 

     5.3. Accounts Receivable. 

          (a) To the extent any Account is included in any Transaction Report as an “Eligible Account”, such Account shall constitute an Eligible Account as of the
date of such Transaction Report. 

          (b) All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Accounts are and shall be true and correct
and all such invoices, instruments and other documents, and all of any Borrower’s Books are genuine and in all respects what they purport to be.  All sales and other transactions underlying or giving rise to each Account shall comply in all
material respects with all applicable laws and governmental rules and regulations.  No Borrower has knowledge of any actual or imminent Insolvency Proceeding of any

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Account Debtor whose accounts are an Eligible Account in any Transaction Report. To the best of each Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and
agreements relating to all Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 

     5.4. Litigation.
There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by or against any Borrower or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Change.

     5.5. No Material Deviation in Financial Statements. The consolidated financial statements for Holdings and its Subsidiaries for the fiscal year ended December 31, 2005, the fiscal quarter ended March 31, 2006 and any monthly statements since such date delivered to Bank
fairly present in all material respects Holdings consolidated financial condition as of such date and Holdings consolidated results of operations for the period covered thereby. There has not been any Material Adverse Change since December 31, 2005.

     5.6. Solvency.
Immediately prior to and after giving effect to the initial Credit Extensions and the Acquisition, the fair salable value of each Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities; each
Borrower is not left with unreasonably small capital; and each Borrower is able to pay its debts (including trade debts) as they mature. 

     5.7. Regulatory Compliance.  No Borrower is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act. No Borrower nor any of its Subsidiaries is a “holding company”, or
a “subsidiary company” of a “holding company”, or an “affiliate” of a “holding company”, as such terms are defined in the Public Utility Holding Company Act of 2005; and no Borrower nor any of its Subsidiaries
is subject to regulation as a “public utility” under the Federal Power Act, as amended. No Borrower is 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). Each Borrower is in compliance in all material respects with the Federal Fair Labor Standards Act and no Borrower has failed to meet the minimum funding requirements of ERISA, permitted a Reportable Event or Prohibited Transaction, as
defined in ERISA, to occur; failed to comply with the Federal Fair Labor Standards Act; withdrawn or permitted any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event
with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of any Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors.
 No Borrower has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a material adverse effect on its business. None of any Borrower’s or any of its Subsidiaries’ properties or assets has
been used by such Borrower or any Subsidiary or, to the best of such Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in compliance with applicable law
(except for Sieger’s storage of hazardous substances in violation of such law including its failure to file toxic release inventory forms in 2000-2004 as required by the Emergency Planning Community Right to Know Act of 1986 which violation has
since been remedied). Each Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that are necessary to continue
its business as currently conducted. 

     5.8. Subsidiaries; Investments. No Borrower owns any stock, partnership interest or other equity securities except for Permitted Investments. As of the Effective Date, Borrowers and Ultra Clean International Holding Company (“International”) are the only
direct Subsidiaries of Holdings, Shanghai is the only Subsidiary of International, and Borrowers have no Subsidiaries. 

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     5.9. Tax Returns and Payments; Pension Contributions. Each Borrower has timely filed all required material tax returns and reports, and each Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by
such Borrower.  Each Borrower may defer payment of any contested taxes, provided that such Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, and (b) posts
bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”.  No Borrower is aware of any claims or
adjustments proposed for any of such Borrower’s prior tax years which could result in additional material taxes becoming due and payable by such Borrower. Each Borrower has paid all amounts necessary to fund all present pension, profit sharing
and deferred compensation plans in accordance with their terms, and no Borrower has withdrawn from participation in, and has permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan
which could reasonably be expected to result in any liability of such Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

     5.10. Use of Proceeds.
 Borrowers shall use the proceeds of the Credit Extensions in connection with the Acquisition, as working capital, and to fund its general business requirements and not for personal, family, household or agricultural purposes. 

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

6. AFFIRMATIVE COVENANTS

     Borrowers shall do all of the following:

     6.1. Government Compliance.  Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be
expected to have a material adverse effect on such Borrower’s business or operations. Each Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could
have a material adverse effect on such Borrower’s business or operations. 

     6.2. Financial Statements, Reports, Certificates.

          (a) Borrowers shall provide Bank with the following: 

             (i) within fifteen (15) days after the end of each month, a Transaction Report so long as Borrowers maintain an Availability Amount of at least $3,000,000;
    otherwise, weekly. Notwithstanding the foregoing, in the event Borrowers are providing a monthly Transaction Report, but fail to maintain an Availability Amount of at least $3,000,000, Borrowers will be required to deliver eight (8) consecutive
    weekly Transaction Reports before the monthly reporting option shall be available to Borrowers; 

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             (ii) within fifteen (15) days after the end of each month, (A) monthly accounts receivable agings, aged by invoice date, (B) monthly accounts payable agings, aged by
    invoice date, and outstanding or held check registers, if any, and (C) monthly reconciliations of accounts receivable agings (aged by invoice date), transaction reports, and general ledger;

             (iii) as soon as available, and in any event within thirty (30) days after the end of each month, unaudited consolidated (and, for the first six (6) months following
    the Effective Date, consolidating with respect to Borrowers) financial statements of Holdings and its Subsidiaries, in each case as of the end of or for such month; 

             (iv) within thirty (30) days after the end of each month. a Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, no
    Default or Event of Default had occurred and was continuing, and setting forth calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Bank shall reasonably request; 

             (v) within thirty (30) days after the end of each fiscal year of Holdings, (A) annual operating budgets (including income statements, balance sheets and cash flow
    statements, by month) for the upcoming fiscal year of Holdings, and (B) annual financial projections for the following fiscal year (on a quarterly basis) as approved by Holdings’ board of directors, together with any related business forecasts
    used in the preparation of such annual financial projections; and 

             (vi) as soon as available, and in any event within 120 days following the end of Holdings’ fiscal year, annual consolidated financial statements of Holdings and
    its Subsidiaries certified by, and with an unqualified opinion of, independent public accountants of recognized national standing or otherwise reasonably acceptable to Bank. 

          (b) Within five (5) days after filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission or a link thereto on such
Borrower’s or another website on the Internet. 

     6.3. Accounts Receivable.

          (a) Schedules and Documents Relating to Accounts.  Borrowers shall deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided, however, that a Borrower’s failure to execute and deliver the same shall not
affect or limit Bank’s Lien and other rights in all of each Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Bank’s Lien and other rights therein. If requested by Bank,
Borrowers shall furnish Bank with copies (or, at Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for
any goods the sale or disposition of which gave rise to such Accounts. In addition, Borrowers shall deliver to Bank, on its request, the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property
evidencing or securing any Accounts, in the same form as received, with all necessary endorsements, and copies of all credit memos. 

          (b) Disputes. Borrowers shall
promptly notify Bank of all disputes or claims relating to Accounts. Borrowers may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as (i) Borrowers do so
in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and

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reports the same to Bank in the regular reports provided to Bank; (ii) no Default or Event of Default has occurred and is continuing; and (iii) after taking into account all such discounts,
settlements and forgiveness, the total outstanding Advances will not exceed the lesser of the Revolving Line or the Aggregate Borrowing Base. 

          (c) Collection of Accounts.
Borrowers shall have the right to collect all Accounts, unless and until a Default or an Event of Default has occurred and is continuing and Bank have notified the Borrowers under this Section. If a Default or an Event of Default has occurred and is
continuing or if the Trigger Availability shall be less than $3,000,000, Borrowers shall hold all payments on, and proceeds of, Accounts in trust for Bank, and, if requested by Bank, Borrowers shall immediately deliver all such payments and
proceeds to Bank in their original form, duly endorsed, to be applied to the Obligations pursuant to the terms of Section 9.4 hereof unless, provided that no Event of Default has occurred and is continuing, (i) a Streamline Period shall be in effect
and/or (ii) the Trigger Availability shall be in excess of $3,000,000, all such payments and proceeds need not be applied to the Obligations. Bank may, in its good faith business judgment, require that all proceeds of Accounts be deposited by
Borrowers into a lockbox account, or such other “blocked account” as Bank may specify, pursuant to a blocked account agreement in such form as Bank may specify in its good faith business judgment. 

          (d) Returns. Upon the request of
Bank, Borrowers shall promptly provide Bank with an Inventory return history. 

          (e) Verification.  Bank may, from
time to time, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of one of Borrowers or Bank or such other name as Bank may choose. 

          (f) No Liability.  Bank shall not be
responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the
settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrowers obligations under any
contract or agreement giving rise to an Account. Nothing herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct. 

     6.4. Remittance of Proceeds.  Except as otherwise provided in Section 6.3(c), deliver, in kind, all proceeds arising from the disposition of any Collateral to Bank in the original form in which received by any Borrower not later than the following Business Day
after receipt by such Borrower, to be applied to the Obligations pursuant to the terms of Section 9.4 hereof; provided that, if no Default or Event of Default has occurred and is continuing, Borrowers shall not be obligated to remit to Bank the
proceeds of the sale of worn out or obsolete Equipment disposed of by any Borrower in good faith in an arm’s length transaction for an aggregate purchase price of $250,000 or less (for all such transactions in any fiscal year) or of
Transfers otherwise permitted by Section 7.1. Each Borrower agrees that it will not commingle proceeds of Collateral with any of such Borrower’s other funds or property, but will hold such proceeds separate and apart from such other funds and
property and in an express trust for Bank. Nothing in this Section limits the restrictions on disposition of Collateral set forth elsewhere in this Agreement. 

     6.5. Taxes; Pensions.
Timely file all required material tax returns and reports and timely pay all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by such Borrower except for deferred payment of any taxes contested pursuant
to the terms of Section 5.9 hereof, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms. 

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     6.6. Access to Collateral; Books and Records. At reasonable times, on three (3) Business Days’ notice not more than twice in any calendar year (provided no notice is required if an Event of Default has occurred and is continuing), Bank, or its agents, shall
have the right to inspect the Collateral and the right to audit and copy each Borrower’s Books, the first of which shall be within six (6) months after the Effective Date. The foregoing inspections and audits shall be at Borrower’s
expense, and the charge therefor shall be $750 per person per day (or such higher amount as shall represent Bank’s then-current standard charge for the same), plus reasonable out-of-pocket expenses. In the event Borrowers and Bank schedule
an audit more than ten (10) days in advance, and Borrowers cancel or seek to reschedule the audit with less than ten (10) days written notice to Bank, then (without limiting any of Bank’s rights or remedies), Borrowers shall pay Bank a fee of
$1,000 plus any out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated costs and expenses of the cancellation or rescheduling. 

     6.7. Insurance.  Keep
its business and the Collateral insured for risks and in amounts standard for companies in Borrowers’ industry and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are
reasonably satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank as loss payee and waive subrogation against Bank, and all liability policies shall show, or have endorsements showing, Bank as an
additional insured.  All policies (or the loss payable and additional insured endorsements) shall provide that the insurer must give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s
request, a Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. Notwithstanding the foregoing, (a)
so long as no Event of Default has occurred and is continuing, Borrowers shall have the option of applying the proceeds of any casualty policy up to $50,000, in the aggregate, toward the replacement or repair of destroyed or damaged property;
provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Bank has been granted a first priority security interest, and (b) after the
occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Bank, be payable to Bank on account of the Obligations. If Borrowers fail to obtain insurance as required under
this Section 6.7 or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this Section 6.7, and take any action under the
policies Bank deems prudent. 

     6.8. Operating Accounts, Etc. 

          (a) Within fifteen (15) Business Days of the Effective Date, deposit into one or more Collateral Accounts maintained with Bank all unrestricted cash of Borrowers in
excess of $7,500,000. 

          (b) (i) Maintain its and its Subsidiaries’ depository and operating accounts and lock boxes with Bank or (ii) so long as no Default or Event of Default shall
have occurred and be continuing and the Trigger Availability is equal to or greater than $3,000,000, until such time as all such accounts and lock boxes are established and maintained with Bank, jointly and severally pay to Bank on the last day
of each month a fee of $1,500. 

          (c) Following the occurrence of a Default or Event of Default or in the event the Trigger Availability shall at anytime be less than $3,000,000, the Borrowers
shall, and shall cause their Subsidiaries, to promptly (but in any Event within forty-five (45) days thereof) transfer all depository and operating accounts and lock boxes located within the United Stated (other than a deposit account whose balance
at no time exceeds $25,000 and so long as the balance in all such accounts at no time exceeds $100,000) not maintained with Bank to Bank. 

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          (d) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial institution other than Bank or its
Affiliates or, to the extent that the Union Bank Control Agreement remains in place, Union Bank of California. In addition, for each Collateral Account that Borrowers at any time maintain, Borrowers shall cause the applicable bank or financial
institution (other than Bank) at or with which any Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral
Account in accordance with the terms hereunder.  The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of any
Borrower’s employees and identified to Bank by such Borrower as such or any deposit account whose balance at no time exceeds $25,000 and so long as the balance in all such accounts at no time exceeds $100,000. 

     6.9. Financial Covenants. Borrower shall maintain at all times on a consolidated basis with respect to Holdings and its Subsidiaries (except as otherwise provided in paragraph (c) below): 

          (a) Senior Leverage Ratio. The ratio
of Senior Funded Debt to EBITDA calculated as of the last day of each fiscal quarter for the four (4) consecutive fiscal quarters ending on such date (the “Senior Leverage Ratio”), of not more than 2.0 to 1.0; provided, however, the Senior
Leverage Ratio determined as of (i) June 29, 2006 shall be the Senior Funded Debt as of such date divided by EBITDA for the 2nd fiscal quarter of 2006 multiplied by 4, (ii) September 30, 2006 shall be the Senior Funded Debt as of such date divided by (EBITDA for the 2nd and 3rd fiscal quarters of 2006) multiplied by 2, and (iii)
December 31, 2006 shall be the Senior Funded Debt as of such date divided by (EBITDA for the 2nd, 3rd and 4th fiscal quarters of 2006) multiplied by 1.333, in each case calculated on a proforma basis after giving effect to the Acquisition as of the first day of such period. 

          (b) Fixed Charge Coverage Ratio. The
ratio of EBITDA to Fixed Charges as of the last day of each fiscal quarter for the two (2) consecutive fiscal quarters ending on such date (the “Fixed Charge Coverage Ratio”), of at least 2.0 to 1.0; provided, however, the Fixed Charge
Coverage Ratio determined as of June 29, 2006 shall be EBITDA for the 2nd fiscal quarter of 2006 divided by Fixed
Charges for the 2nd fiscal quarter of 2006. 

          (c) Liquidity.  Borrowers’
unrestricted cash and Cash Equivalents plus the Committed Availability of at least $5,000,000. 

     6.10. Protection and Registration of Intellectual Property Rights.  Borrowers shall:  (a) protect, defend and maintain the validity and enforceability of its material Intellectual Property; (b) promptly advise Bank in writing of material infringements of its
Intellectual Property; and (c) not allow any Intellectual Property material to Borrowers’ business to be abandoned, forfeited or dedicated to the public without Bank’s written consent. If any Borrower decides to register any material
copyrights or mask works in the United States Copyright Office, such Borrower shall: (x) provide Bank with at least five (5) days prior written notice of its intent to register such copyrights or mask works together with a copy of the application it
intends to file with the United States Copyright Office (excluding exhibits thereto); (y) execute an Intellectual Property security agreement or such other documents as Bank may reasonably request to maintain the perfection and priority of
Bank’s security interest in the copyrights or mask works intended to be registered with the United States Copyright Office; and (z) record such Intellectual Property security agreement with the United States Copyright Office contemporaneously
with filing the copyright or mask work application(s) with the United States Copyright Office.  Borrowers shall promptly provide to Bank a copy of any such application(s) filed with the United States Copyright Office together with evidence of the
recording of the Intellectual Property security agreement necessary for Bank to maintain the perfection and priority of its security interest in such copyrights or mask works. Borrowers shall provide written notice to Bank of any material
application filed by any Borrower in the

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United States Patent and Trademark Office for a patent or to register a trademark or service mark within 30 days after any such filing. 

     6.11. Identification of Subsidiaries; Provision of Collateral. 

     (a) If and whenever any direct or indirect Domestic Subsidiary of a Borrower shall be created, formed or acquired by a
Borrower or any of its Subsidiaries at any time after the Effective Date: 

        (i) furnish to Bank a written notice identifying such Subsidiary and setting forth with respect to such Subsidiary all of
    the following information: (A) the State or other jurisdiction of organization or formation of each such Person; (B) the number of authorized and outstanding shares or other units of each class of equity interests in each such Person; and (C) with
    respect to each Subsidiary of such Borrower, (1) each Person which owns or controls (whether legally or beneficially) any of the equity interests of each such Subsidiary, and (2) the number of shares or units of each class or kind of equity
    interests so owned or controlled by each such Person; and 

        (ii) promptly comply with, and cause such Subsidiary to comply with, the applicable terms of paragraph (b) of this Section
    6.11. 

     (b) Promptly (and in any event within five (5) days) after the creation or formation or the consummation of the
acquisition of any new Subsidiary of the Borrower: 

        (i) in the case of any acquisition of equity interests of any such Subsidiary by a Borrower or its Subsidiaries, whether
    in connection with the creation, formation or acquisition of a Subsidiary or otherwise: (A) deliver or cause to be delivered to Bank in pledge all of the certificates, if any, representing such equity interests, such equity interests together with
    transfer or stock powers to be held by Bank in pledge in accordance with the terms of the Securities Pledge Agreement (provided that no such Domestic Subsidiary shall be required to pledge more than 65% of the equity interests in any of its Foreign
    Subsidiaries); and (B) cause such Subsidiary to execute and deliver to Bank (1) joinder agreements in form and substance reasonably satisfactory to Bank upon the terms of which such Subsidiary shall become a party to and bound by (a) this Agreement
    as a “Borrower” or by a guaranty as a “guarantor”, (b) an intellectual property security agreement substantially in the form of the IP Security Agreements, and (c) a securities pledge agreement in substantially the form of the
    Securities Pledge Agreement, the effect of which shall be that, as of the date set forth in such joinder agreements, such Subsidiary shall become a party to each such instrument, as applicable, and be bound by the terms thereof, (2) a duly completed
    Perfection Certificate, and (3) such UCC financing statements and other security instruments as shall be reasonably required by Bank to perfect the security interests and Liens in Collateral being pledged and granted by such Subsidiary pursuant to a
    security agreement and the other collateral documents; and 

        (ii) in each such case, provide to Bank all such other documentation, organizational documents and resolutions as Bank
    shall reasonably deem necessary in connection with such Acquisition or the creation, formation or acquisition of such Subsidiary. 

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     6.12. Litigation Cooperation. From the date hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, such Borrower and its officers, employees and agents and Borrower’s books and records, to the extent
that Bank may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 

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

7. NEGATIVE COVENANTS

     No Borrower shall do any of the following without Bank’s prior written consent:

     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, except for (a) Transfers of Inventory in the ordinary course of
business; (b) Transfers of worn-out, damaged or obsolete Equipment; (c) Transfers in connection with Permitted Liens and Permitted Investments; (d) the use or Transfer of money or Cash Equivalents in the ordinary course; (e) the licensing, on a
non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business; (f) Transfers to another Borrower or their respective Subsidiaries, or to Shanghai provided that any such Transfers to Shanghai shall be upon fair and reasonable terms that are no less favorable to Borrowers than would be obtained in an
arm’s length transaction with a non-affiliated Person or shall not exceed, in the aggregate, $1,000,000 (in cash plus Equipment) during the term of this Agreement; (g) Transfers in connection with any transaction permitted under Section 7.3 or 7.7; and (h) so long as no Default or Event of Default shall have occurred and be continuing or would result
therefrom, other Transfers (other than Accounts) at fair market value, the net cash proceeds of which shall not exceed $250,000 in any fiscal year. 

     7.2. Changes in Business, Control, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by such Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b)
liquidate or dissolve; or (c) permit or suffer any Change in Control. No Borrower shall without at least fifteen (15) days prior written notice to Bank: (1) add any new offices or business locations, including warehouses (unless such new offices or
business locations contain less than $25,000) in Borrowers’ assets or property), (2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name (except in connection with the
Acquisition on the Effective Date), or (5) change any organizational number (if any) assigned by its jurisdiction of organization; provided that a Borrower may change its name so long as such Borrower notifies Bank of such change within twenty (20) days prior to the effectiveness thereof and provides any financing statements necessary to perfect and
continue perfected the Bank’s liens in the Collateral. 

     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 (i) in connection with the Acquisition on the Effective Date; (ii) a Subsidiary may merge or consolidate into another Domestic Subsidiary or into a Borrower, or (iii) in connection with any transaction permitted under Section 7.7.

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

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     7.5. Encumbrance. (a)
Except for Permitted Liens, 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, or permit any Collateral not to be
subject to the first priority security interest granted herein; or (b) be a party to any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect
of prohibiting any Borrower or any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of such Borrower’s or any Subsidiary’s Intellectual Property, except for (i) any such
restrictions and conditions imposed by law or regulation or by any Loan Document or Merger Document; (ii) any such restrictions and conditions permitted under Section 7.1 hereof or the definition of “Permitted Lien” herein, (iii) any such
restrictions and conditions existing on the date hereof (but shall not apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iv) customary restrictions and conditions
contained in agreements relating to the sale of any assets pending such sale, provided that such restrictions and conditions apply only to the assets that are to be sold and such sale is permitted hereunder; (v) restrictions or conditions imposed by
any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness; (vi) customary provisions in leases or licenses of Intellectual Property
restricting the assignment thereof; and (vii) any such restrictions or conditions (A) on cash or other deposits imposed by lessors or required by insurance, surety or bonding companies, in each case, under contracts entered into in the ordinary
course of business, or (B) existing under, by reason of or with respect to Indebtedness incurred to refinance any Indebtedness, in each case as permitted under Section 7.4; provided that the restrictions contained in the agreements governing the
Indebtedness incurred to refinance Indebtedness are no more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced. 

     7.6. Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant to the terms of Section 6.8(b) hereof. 

     7.7. Investments; Distributions. (a) Directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock
(“Restricted Payments’), provided that (i) each Borrower or any Subsidiary may pay dividends solely in common stock; (ii) any Subsidiary of Borrowers may pay dividends to its direct parent, (iii) any Loan Party may make Restricted Payments
in connection with the consummation of the Acquisition or any other transaction contemplated by the Merger Documents as in effect on the Effective Date, (iv) Sieger may make advances to each of its members (collectively, the “Member
Advances”) in an amount sufficient to cover that member’s actual tax liability due and payable as a result of income of Sieger attributed to the member during any period that Sieger is eligible for taxation as a limited liability company
under the Internal Revenue Code; provided, however, that no Member Advances may be made if, at the time thereof, an Event of Default has occurred and is continuing or would result therefrom; (v) so long as no Default or Event of Default shall have
occurred and be continuing or would result therefrom, each Borrower or any of its Subsidiaries may make Restricted Payments to Holdings to permit Holdings to (A) purchase or redeem its stock in connection with and pursuant to the terms of employee
benefit and stock option plans, in an amount not exceed, in the aggregate, $500,000 during the term of this Agreement, or (B) pay income taxes, franchise fees and other fees required to maintain its existence and provide for other operating
costs; (vi) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, any Loan Party may make Restricted Payments that constitute (or permit Holdings or any of its Subsidiaries to pay) fees permitted
by Section 7.8; and (vii) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, make Restricted Payments to Holdings solely for the purpose of making Investments by Holdings in Shanghai that do
not exceed $1,000,000 (in cash plus Equipment) per annum. 

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     7.8. Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrowers, except for (i) transactions that are upon fair and reasonable terms that are no less favorable to Borrowers than would be
obtained in an arm’s length transaction with a non-affiliated Person which would be otherwise permitted hereunder; (ii) the payment of reasonable fees, compensation to, and any indemnity provided for the benefit of, outside directors of
Holdings; (iii) the consummation of the Acquisition or any other related transaction contemplated by the Merger Documents as in effect on the Effective Date and the entering into or payment of any amount in connection therewith; (iv) transactions
permitted under Section 7.3; (v) Restricted Payments permitted under Section 7.7(b); and (vi) Investments permitted under Section 7.7(a) . 

     7.9. Subordinated Debt.  Make or permit to be made any payment on any Subordinated Debt, or amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to
Obligations owed to Bank. 

8. EVENTS OF DEFAULT

     Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement: 

     8.1. Payment Default.
Any Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within ten (10) Business Days after such Obligations are due and payable.  During the cure period, the
failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period); 

     8.2. Covenant Default. 

          (a) Any Borrower fails or neglects to perform any obligation in Sections 6.2 within five (5) days after such obligation is required to be performed (but if an Event
of Default has occurred and is continuing, such five (5) day grace period shall not be applicable), 6.8, 6.9, or violates any covenant in Section 7; or 

          (b) Any Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement, any Loan
Documents, and as to any default (other than those specified in Section 8 below) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within fifteen (15) days after the occurrence
thereof; provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot after diligent attempts by such Borrower be cured within such fifteen (15) day period, and such default is likely to be cured
within a reasonable time, then such Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be
deemed an Event of Default (but no Credit Extensions shall be made during such cure period).  Grace periods provided under this section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a)
above; 

     8.3. Material Adverse Change. A Material Adverse
Change occurs; 

     8.4. Attachment.  (a)
Any material portion of any 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 ten (10) days; (b) the service of process upon Bank seeking to
attach, by trustee or similar process, any funds of such Borrower on deposit with Bank, or any entity under control of such Borrower (including a Subsidiary); (c) Borrower is enjoined, restrained, or prevented by court order from

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conducting a material part of its business; (d) a judgment or other claim in excess of Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate becomes a Lien on any of such
Borrower’s assets; or (e) a notice of lien, levy, or assessment is filed against any of such Borrower’s assets by any government agency and not paid within ten (10) days after such Borrower receives notice. These are not Events of Default
if stayed or if a bond is posted pending contest by such Borrower (but no Credit Extensions shall be made during the cure period); 

     8.5. Insolvency. (a)
Any Borrower is unable to pay its debts (including trade debts) as they become due; (b) any Borrower voluntarily begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against such Borrower and not dismissed or stayed within
thirty (30) days (but no Credit Extensions shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 

     8.6. Other Agreements.
 There is a default in any agreement to which any Borrower or Holdings is a party with a third party or parties resulting in a matured right (after giving effect to all applicable notice requirements and grace and cure periods) by such third party
or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in a principal amount in excess of Two Hundred Fifty Thousand Dollars ($250,000), other than and only to the extent any such Indebtedness that is supported,
directly or indirectly, by a Letter of Credit issued hereunder; 

     8.7. Judgments.  A
judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance) shall be rendered against any Borrower
and shall remain unsatisfied and unstayed for a period of thirty (30) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction or stay of such judgment); 

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

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

     8.10. Guaranty.  (a)
The Guaranty or any other guaranty of any Obligations terminates or ceases for any reason other than the expiration or voluntary release of such guaranty to be in full force and effect; (b) Guarantor or any other guarantor does not perform any
obligation or covenant under the Guaranty of the Obligations; (c) any circumstance described in Sections 8.4, 8.5, 8.7, or 8.8. occurs with respect to Guarantor or any other guarantor, or (d) the liquidation, winding up, or termination of existence
of Guarantor or any other guarantor. 

9. BANK’S RIGHTS AND REMEDIES 

     9.1. Rights and Remedies.  While an Event of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 

          (a) declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable
without any action by Bank); 

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          (b) stop advancing money or extending credit for any Borrower’s benefit under this Agreement or under any other agreement between any Borrower and Bank;

          (c) demand that Borrowers (i) deposit cash with Bank in an amount equal to the aggregate amount of any Letters of Credit remaining undrawn, as collateral security
for the repayment of any future drawings under such Letters of Credit, and Borrowers shall forthwith jointly and severally deposit and pay such amounts, and (ii) pay in advance all Letter of Credit fees scheduled to be paid or payable over the
remaining term of any Letters of Credit; 

          (d) terminate any FX Contracts; 

          (e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable, notify any Person owing
any Borrower money of Bank’s security interest in such funds, and verify the amount of such account; 

          (f) make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Each Borrower
shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise
any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Each Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies;

          (g) apply to the Obligations any (i) balances and deposits of each Borrower it holds, or (ii) any amount held by Bank owing to or for the credit or the account of
each Borrower; 

          (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Bank is hereby granted a non-exclusive,
royalty-free license or other right to use, without charge, each Borrower’s labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar
property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section, Borrower’s rights under all licenses and all
franchise agreements inure to Bank’s benefit; 

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

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

          (k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the Code (including
disposal of the Collateral pursuant to the terms thereof). 

     9.2. Power of Attorney.  Each Borrower hereby irrevocably appoints Bank as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse such Borrower’s name on any checks or other forms
of payment or security; (b) sign such Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts
and on terms Bank determines reasonable; (d) make, settle, and adjust all claims under such Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse

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claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third
party as the Code permits.  Each Borrower hereby appoints Bank as its lawful attorney-in-fact to sign such 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 until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit Extensions hereunder. Bank’s foregoing appointment as such Borrower’s attorney in fact, and all of Bank’s
rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and Bank’s obligation to provide Credit Extensions terminates. 

     9.3. Protective Payments. If any Borrower fails to obtain the insurance called for by Section 6.7 or fails to pay any premium thereon or fails to pay any other amount which such Borrower is obligated to pay under this Agreement or any other Loan Document, Bank
may obtain such insurance or make such payment, and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest applicable rate, and secured by the Collateral.  Bank will make reasonable
efforts to provide such Borrower with notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver
of any Event of Default. 

     9.4. Application of Payments and Proceeds. Unless an Event of Default has occurred and is continuing, Bank shall apply any funds in its possession, whether from Borrowers account balances, payments, or proceeds realized as the result of any collection of
Accounts or other disposition of the Collateral, first, to the principal of the Obligations; second, to Bank Expenses, including without limitation, the reasonable costs, expenses, liabilities, obligations and attorneys’ fees incurred by Bank
in the exercise of its rights under this Agreement; third, to the interest due upon any of the Obligations; and finally, to any applicable fees and other charges, in such order as Bank shall determine in its sole discretion. Any surplus shall be
paid to any Borrowers by credit to the Designated Deposit Account or other Persons legally entitled thereto; each Borrowers shall remain jointly and severally liable to Bank for any deficiency. If an Event of Default has occurred and is continuing,
Bank may apply any funds in its possession, whether from any Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as
Bank shall determine in its sole discretion. Any surplus shall be paid to any Borrower by credit to the Designated Deposit Account or to other Persons legally entitled thereto; each Borrower shall remain jointly and severally liable to Bank for any
deficiency.  If Bank, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either
reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Bank of cash therefor. 

     9.5. Bank’s Liability for Collateral.  So long as Bank complies with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping
of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Each Borrower bears all risk of loss, damage or
destruction of the Collateral. 

     9.6. No Waiver; Remedies Cumulative.  Bank’s failure, at any time or times, to require strict performance by any Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Bank thereafter to demand strict
performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by Bank and then is only effective for the specific instance and purpose for which it is given. Bank’s rights and remedies under

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this Agreement and the other Loan Documents are cumulative. Bank has all rights and remedies provided under the Code, by law, or in equity.  Bank’s exercise of one right or remedy is not an
election, and Bank’s waiver of any Event of Default is not a continuing waiver. Bank’s delay in exercising any remedy is not a waiver, election, or acquiescence. 

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

10. NOTICES

     All notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”), other than Advance requests made pursuant to
Section 3.4, by any party to this Agreement or any other Loan Document must be in writing and be delivered or sent by facsimile at the addresses or facsimile numbers listed below. Bank or Borrower may change its notice address by giving the other
party written notice thereof. Each such Communication shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S. mail, registered or certified mail,
return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by facsimile transmission (with such facsimile promptly confirmed by delivery of a copy by personal delivery or United States mail as otherwise provided in this
Section 10); (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the
address or facsimile number indicated below. Advance requests made pursuant to Section 3.4 must be in writing and may be in the form of electronic mail, delivered to Bank by Borrower at the e-mail address of Bank provided below and shall be deemed
to have been validly served, given, or delivered when sent (with such electronic mail promptly confirmed by delivery of a copy by personal delivery or United States mail as otherwise provided in this Section 10). Bank or Borrower may change its
address, facsimile number, or electronic mail address by giving the other party written notice thereof in accordance with the terms of this Section 10. 

	 	
If to Borrower:
		 
		
Ultra Clean Technology Systems and Services,
	
	 	 

		 
		
150 Independence Drive
	
	 	 

		 
		
Menlo Park, CA 94025
	
	 	 

		 
		
Attn: Jack Sexton
	
	 	 

		 
		
Fax: 650-326-0929
	
	 	 

		 
		
Email: jsexton@uct.com
	
	 	 	 	 
	 	
If to Bank:
		 
		
Silicon Valley Bank – Mail Sort NC 200
	
	 	 

		 
		
3979 Freedom Circle, Suite 600
	
	 	 

		 
		
Santa Clara, CA 95054
	
	 	 

		 
		
Attn: Chitra Arunachalam
	
	 	 

		 
		
Fax: 408-654-5517
	
	 	 

		 
		
Email: carunachalam@svb.com
	

11. CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

     California law governs the Loan Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State
and Federal courts in Santa Clara County, California; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the
Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor

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of Bank. Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based
upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons,
complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10 of this
Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

     TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW BORROWER AND BANK EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED
UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT.  EACH PARTY HAS REVIEWED THIS
WAIVER WITH ITS COUNSEL. 

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

12. GENERAL PROVISIONS

     12.1. Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. No Borrower may assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which consent
may be granted or withheld in Bank’s

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discretion) and Bank may not assign this Agreement or any rights or obligations under it without Borrowers’ prior written consent (unless a Default or Event of Default shall have occurred
and be continuing); provided that 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 and the other Loan Documents. 

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

     12.3. Limitation of Actions.  Any claim or cause of action by Borrower against Bank, its directors, officers, employees, agents,
accountants, attorneys, or any other Person affiliated with or representing Bank based upon, arising from, or relating to this Loan Agreement or any other Loan Document, or any other transaction contemplated hereby or thereby or relating hereto or
thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by Bank, its directors, officers, employees, agents, accountants or attorneys, shall be barred unless asserted by Borrower by the commencement of
an action or proceeding in a court of competent jurisdiction by the filing of a complaint within one year after the first act, occurrence or omission upon which such claim or cause of action, or any part thereof, is based, and the service of a
summons and complaint on an officer of Bank, or on any other person authorized to accept service on behalf of Bank, within thirty (30) days thereafter. Borrower agrees that such one-year period is a reasonable and sufficient time for Borrower to
investigate and act upon any such claim or cause of action. The one-year period provided herein shall not be waived, tolled, or extended except by the written consent of Bank in its sole discretion. This provision shall survive any termination of
this Loan Agreement or any other Loan Document. 

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

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

     12.6. Amendments in Writing; Integration. All amendments to this Agreement must be in writing signed by both Bank and Borrower.  This Agreement and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or
agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Agreement and the Loan Documents merge into this Agreement and the Loan Documents. 

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

     12.8. Survival.  All
covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by
their terms, are to survive the termination of this Agreement) have been satisfied.  The obligation of Borrower in Section 12.2 to

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indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

     12.9. Confidentiality.
In handling any confidential information, Bank shall exercise the same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates; (b) to prospective
transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use commercially reasonable efforts to obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as
required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in connection with Bank’s examination or audit; and (e) as Bank considers appropriate in exercising remedies under this Agreement.
Confidential information does not include information that either: (i) is in the public domain or in Bank’s possession when disclosed to Bank, or becomes part of the public domain after disclosure to Bank; or (ii) is disclosed to Bank by a
third party, if Bank does not know that the third party is prohibited from disclosing the information. 

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

     12.11. Waiver of Surety Defenses. To the extent permitted by applicable law, each Borrower hereby waives any and all defenses and rights of discharge based upon suretyship or impairment of collateral (including lack of attachment or perfection with respect thereto)
that it may now have or may hereafter acquire with respect to Bank or any of its Obligations hereunder, under any Loan Document or under any other agreement that it may have or may hereafter enter into with Bank. 

     12.12. Joint and Several Obligations and Related Matters. The obligations of each Borrower hereunder and under the other Loan Documents shall be joint and several in nature notwithstanding which Borrower actually or directly received the proceeds of any particular
Credit Extension. Each Borrower acknowledges that for purposes of the Loan Documents, Borrowers constitute a single integrated financial entity or enterprise and that each receives a benefit from the availability of the financing hereunder to all
Borrowers. Each Borrower waives all defenses arising under the laws of suretyship, to the extent that such laws are applicable, in connection with its joint and several obligations under this Agreement and the other Loan Documents. 

     12.13. Subordination of Claims.  As further consideration for the Credit Extensions by the Bank Borrowers and as a material inducement to Bank to make the Credit Extensions and accept this Agreement, each Borrower hereby irrevocably subordinates in all respects all
claims, whether based in equity or law, whether by contract, statute or otherwise, that it might now or hereafter have against other Borrower or that arise from the existence or performance of the Obligations under this Agreement, including, but not
limited to, any right of subrogation, reimbursement, exoneration, contribution, indemnification, or participation, to any and all of the Obligations of such Borrower to Bank hereunder and under the other Loan Documents. 

     12.14. USA PATRIOT Act Notice.  Bank hereby notifies Borrowers that pursuant to the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
“Act”), it is required to obtain, verify and record information that identifies Borrowers, which information includes the name and address of Borrowers and other information that will allow Bank to identify Borrowers in accordance with the
Act. 

-26-

     12.15. Name Change of Pete Acquisition to UCT Sieger Engineering LLC.  Substantially simultaneously with the consummation of the Acquisition, the name of Pete Acquisition LLC shall be changed to UCT
Sieger Engineering LLC by filing such name change with the Secretary of State of the State of Delaware. From and after such time, all references to Sieger shall mean UCT Sieger Engineering LLC, a Delaware limited liability company. 

     13. DEFINITIONS 

     13.1. Definitions.  As
used in this Agreement, the following terms have the following meanings: 

     “Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation,
all accounts receivable and other sums owing to Borrower. 

     “Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made. 

     “Acquisition” means the mergers and acquisitions resulting in the acquisition of Sieger by Holdings on or prior to the Effective Date as contemplated the
Merger Documents. 

     “Advance” or “Advances” means an advance (or advances) under the Revolving Line.

     “Affiliate” of any 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. 

     “Agreement” is defined in the preamble hereof.

     “Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the Borrowing Base minus (b) the amount of all outstanding Letters of Credit
(including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserves, minus (c) the FX Reserve, and minus (d) the outstanding principal balance of any Advances (including any amounts used for Cash Management
Services). 

     “Bank” is defined in the preamble hereof.

     “Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) of Bank for preparing,
negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Bank with respect to Borrower. 

     “Bankruptcy-Related Defaults” is defined in Section 9.1. 

     “Borrower” and “Borrowers” is defined in the preamble hereof.

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

-27-

     “Borrowing Base” is 80% of Eligible Accounts less Reserves as determined by Bank from Borrowers’ most recent Transaction Report; provided, however,
that Bank may decrease the foregoing percentage in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 

     “Borrowing Resolutions” are, with respect to any Person, those resolutions adopted by such Person’s Board of Directors or members and delivered by
such Person to Bank approving the Loan Documents to which such Person is a party and the transactions contemplated thereby, together with a certificate executed by its secretary or other authorized officer on behalf of such Person certifying that
(a) such Person has the authority to execute, deliver, and perform its obligations under each of the Loan Documents to which it is a party, (b) that attached as Exhibit A to such certificate is a true, correct, and complete copy of the resolutions
then in full force and effect authorizing and ratifying the execution, delivery, and performance by such Person of the Loan Documents to which it is a party, (c) the name(s) of the Person(s) authorized to execute the Loan Documents on behalf of such
Person, together with a sample of the true signature(s) of such Person(s), and (d) that Bank may conclusively rely on such certificate unless and until such Person shall have delivered to Bank a further certificate canceling or amending such prior
certificate. 

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

     “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof
having maturities of not more than one (1) year from the date of acquisition; (b) marketable direct obligations issued by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing
within 1 year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor’s Rating Group (“S&P”) or Moody’s Investors Service, Inc.
(“Moody’s”); (c) commercial paper maturing no more than one (1) year after its creation and, at the time of acquisition, having the highest rating from either S&P or Moody’s; (d) Bank’s certificates of deposit issued
maturing no more than one (1) year after issue; (e) Deposit Accounts, certificates of deposit or, bankers’ acceptances or time deposits maturing within 1 year from the date of acquisition thereof issued by or guaranteed by or placed with any
bank organized under the laws of the United States or any state thereof having at the date of acquisition thereof combined capital and surplus of not less than $250,000,000; (f) Deposit Accounts maintained with (i) any bank that satisfies the
criteria described in clause (e) above or (ii) any other bank organized under the laws of the United States or any state thereof so long as the amount maintained with any such other bank is less than or equal to $100,000; (g) fully
collateralized repurchase agreements with a term not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria in clause (e) above; (h) money market funds substantially all
of the assets of which are invested in the kinds of assets described in clauses (a) through (g) of this definition. In addition, for all purposes hereunder other than the calculation of the liquidity covenant set forth in Section 6.9(c), Cash
Equivalents shall also include foreign investments substantially comparable to any of the foregoing in connection with managing cash of any Subsidiary having operations in a foreign country. 

     “Cash Management Services” is defined in Section 2.1.4. 

     “Cash Management Services Sublimit” is defined in Section 2.1.4.

     “Change in Control” means any event, transaction, or occurrence as a result of which Holdings shall directly or indirectly own less than 100% of the
outstanding capital stock of any Subsidiary. 

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     “Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of California; provided, that, to the
extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided
further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Bank’s Lien on any Collateral is governed by the Uniform Commercial Code in effect
in a jurisdiction other than the State of California, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes on the provisions thereof relating to such attachment,
perfection, priority, or remedies and for purposes of definitions relating to such provisions. 

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

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

     “Collateral Assignment of Merger Documents” that certain Collateral Assignment of Merger Documents executed and delivered by Holdings and Borrowers to Bank
dated as of the Effective Date. 

     “Committed Availability” means, as the date of determination, an amount equal to the sum of the Revolving Line availability minus all outstanding Credit
Extensions. 

     “Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made. 

     “Communication” is defined in Section 10.

     “Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit E.

     “Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any Indebtedness or any obligation
referred to in clauses (b) and (c) below 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; (b) any
obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to
protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business.  The amount of a Contingent Obligation is
the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed
the maximum of the obligations under any guarantee or other support arrangement. 

     “Control Agreement” is any control agreement entered into among the depository institution at which any Borrower maintains a Deposit Account or the
securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity account, such Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such Deposit Account,
Securities Account, or Commodity Account. 

     “Credit Extension” is any Advance, Letter of Credit, Term Loan, FX Forward Contract, amount utilized for Cash Management Services, or any other extension
of credit by Bank for Borrower’s benefit. 

-29-

     “Current Assets” are amounts that under GAAP should be included on that date as current assets on Borrower’s consolidated balance sheet. 

     “Default” means any event which with notice or passage of time or both, would constitute an Event of Default. 

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

     “Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet recognized as revenue. 

     “Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made. 

     “Designated Deposit Account” is Borrower’s deposit account, account number 3300538419, maintained with Bank. 

     “Dollars,” “dollars” and “$” each mean lawful money of the United States.

     “Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state or territory thereof or the District of Columbia.

     “EBITDA” shall mean (a) Net Income, plus to the extent included in the determination of Net Income, (b) net Interest Expense, plus (c) depreciation
expense, (d) amortization expense, (e) income tax expense, (f) all other charges which are both non-cash and non-recurring, (g) any non-cash amounts related to the granting of stock options in accordance with FAS 123R, plus (h) all non-cash income.

     “Effective Date” is the date Bank executes this Agreement and as indicated on the signature page hereof.

     “Eligible Accounts” are Accounts which arise in the ordinary course of each Borrower’s business that meet all such Borrower’s representations and
warranties in Section 5.3. Bank reserves the right at any time and from time to time after the Effective Date, to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment.  Unless Bank agrees
otherwise in writing, Eligible Accounts shall not include: 

          (a) Accounts that the Account Debtor has not paid within ninety (90) days of invoice date; 

          (b) Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety (90) days of invoice date; 

          (c) Credit balances over ninety (90) days from invoice date; 

          (d) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to any Borrower exceed thirty-five (35%) of all Accounts, except for Applied
Materials and Lam Research, for which such percentages shall be 60% and 40%, respectively, for the amounts that exceed that percentage, unless Bank approves in writing; 

          (e) Accounts owing from an Account Debtor which does not have its principal place of business in the United States unless (y) the Account is supported by an
irrevocable letter of credit 

-30- 

advised and negotiated through Bank and satisfactory to Bank (as to form, substance, and issuer or domestic confirming bank), or (z) the Account is covered by credit insurance in form, substance,
and amount, and by an insurer, satisfactory to Bank; 

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

          (g) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or
otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the ordinary course of
its business; 

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

          (i) (1) Accounts for which the Account Debtor (if other than a Permitted Portfolio Company) is a Borrower’s Affiliate, officer or employee and (2) with respect
to Accounts as to which the Account Debtor is a Permitted Portfolio Company, to the extent the amount of such Accounts exceeds 10% of all Eligible Accounts; 

          (j) Accounts in which the Account Debtor has made a claim disputing liability (but only up to the disputed or claimed amount), or if the Account Debtor is subject to
an Insolvency Proceeding, or goes out of business; 

          (k) Accounts owing from an Account Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 

          (l) Accounts for which Bank in its good faith business judgment determines collection to be doubtful; and 

          (m) other Accounts Bank deems ineligible in the exercise of its good faith business judgment. 

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

     “Equipment Financing” means the equipment financing provided by U.S. Bancorp Equipment Finance, Inc (“USBancorp”) to Sieger evidenced by a Master
Loan Agreement, dated as of June 29, 2006 between USBancorp and Sieger and guarantied by Holdings and Ultra Clean, including any refinancing thereof. 

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

     “Event of Default” is defined in Section 8.

-31-

     “Fixed Charges” means, as of the last day of each fiscal quarter, principal and interest of Indebtedness of Guarantor, Borrowers and their Subsidiaries
determined on a consolidated basis. 

     “Fixed Charge Coverage Ratio” is defined in Section 6.9(b). 

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

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

     “Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day. 

     “FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal business and (b) the Foreign Currency being
purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

     “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 set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession, which
are applicable to the circumstances as of the date of determination. 

     “General Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may
hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks,
service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill,
franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation
presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

     “Governmental Authority” means the government of the United States or any other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any
supranational bodies such as the European Union or the European Central Bank). 

     “Guarantor” is Holdings.

     “Guaranty” is an unconditional guaranty of all the Obligations, in the form of Exhibit D or otherwise in form and
substance reasonably satisfactory to the Bank. 

     “Holdings” is Ultra Clean Holdings, Inc., a Delaware corporation and the parent of Borrowers.

-32-

     “Holdings IP Security Agreement” means an Intellectual Property Security Agreement executed and delivered by Holdings to Bank dated as of the Effective
Date. 

     “Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services (excluding trade accounts payable and other accrued
obligations incurred in the ordinary course of business), (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 

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

     “Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) of Holdings and its Subsidiaries determined in accordance with
GAAP. 

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

     “Investment” is any beneficial ownership interest in any Person (including stock, partnership interest, members interests or other securities), and any
loan, advance or capital contribution to any Person. 

     “Intellectual Property” means all present and future (a) copyrights, copyright rights, copyright applications, copyright registrations and like protections
in each work of authorship and derivative work thereof, whether published or unpublished, (b) trade secret rights, including all rights to unpatented inventions and know how, and confidential information; (c) mask work or similar rights available
for the protection of semiconductor chips; (d) patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same; (e)
trademarks, servicemarks, trade styles, and trade names, whether or not any of the foregoing are registered, and all applications to register and registrations of the same and like protections, and the entire goodwill of the business of any Borrower
connected with and symbolized by any such trademarks; (f) computer software and computer software products; (g) designs and design rights; (h) technology; (i) all claims for damages by way of past, present and future infringement of any of the
rights included above; and (j) all licenses or other rights to use any property or rights of a type described above. 

     “IP Security Agreements” the Holdings IP Security Agreement and the Ultra Clean IP Security Agreement. 

     “L/C Sublimit” is defined in Section 2.1.2.(a).

     “Letter of Credit” means any documentary or standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity
or similar agreement on the part of Bank as set forth in Section 2.1.2. 

     “Letter of Credit Application” is defined in Section 2.1.2(a). 

     “Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(d).

-33-

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

     “Loan Amount” in respect of each Equipment Advance is the original principal amount of such Equipment Advance. 

     “Loan Documents” are, collectively, this Agreement, the Perfection Certificates, the IP Security Agreements, the Securities Pledge Agreement, the
Collateral Assignment of Merger Documents, any note, or notes or guaranties or post-closing letter agreements executed by a Borrower, Guarantor or any other guarantor, and any other present or future agreement between a Borrower, Guarantor, any
other guarantor and/or for the benefit of Bank in connection with this Agreement, all as amended, restated, or otherwise modified. 

     “Loan Party” means Borrowers and Guarantor.

     “Material Adverse Change” is a material adverse change in (i) the business, operations, or condition of Holdings and its Subsidiaries, taken as a whole or
(ii) the ability of Borrower to repay the Obligations hereunder under the Loan Documents or (iii) the priority of Bank's security interest in the Collateral. 

     “Merger Documents” means, collectively the Agreement and Plan of Merger, dated as June 29, 2006, among Sieger Engineering, Inc., Leonid Mezhvinsky,
Holdings, Bob Acquisition Inc., Pete Acquisition LLC and the other “Sellers” specified therein, all related documents and certificates executed and/or delivered in connection therewith, and all schedules, exhibits, annexes and amendments
thereto and all material side letters and agreements affecting the terms thereof or to be entered into in connection therewith. 

     “Net Borrowing Availability” is defined in Section 2.1.1 (a).

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

     “Obligations” are Borrowers’ obligation to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrowers owe Bank now or
later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, all obligations relating to Letters of Credit, Cash Management Services, and foreign exchange contracts, if any, and including interest accruing
after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrowers assigned to Bank, and the performance of Borrowers’ duties under the Loan Documents. 

     “Operating Documents” are, for any Person, such Person’s formation documents, as filed with the Secretary of State of such Person’s state of
formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or
similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto. 

     “Payment/Advance Form” is that certain form attached hereto as Exhibit B.

     “Perfection Certificate” is defined in Section 5.1.

-34-

     “Permitted Indebtedness” is: 

           (a) Borrowers’ Indebtedness to Bank under this Agreement and the other Loan Documents; 

           (b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 

           (c) Subordinated Debt; 

           (d) unsecured Indebtedness to trade creditors and with respect to surety bonds and similar obligations incurred in the ordinary course of business; 

           (e) Indebtedness in respect of the Equipment Financing not to exceed $5,000,000 in the aggregate; 

           (f) Indebtedness (other than the Obligations, but including capitalized lease obligations) of any Borrower or their Subsidiaries incurred at the time of, or within 90 days after, the acquisition, construction, restoration or improvement of any assets for the purpose of financing all or any part of the acquisition cost thereof in an aggregate principal amount outstanding at any one time, together with any refinancings thereof, not in excess of $500,000 in the aggregate; 

           (g) Indebtedness comprising Permitted Investments; 

           (h) Indebtedness incurred by Holdings or any Borrower with respect to indemnities and purchase price adjustment obligations under the Merger Documents; 

           (i) Indebtedness in connection with Contingent Obligations of the type described in clause (c) of the definition thereof) entered into in the ordinary course of business and not for speculative purposes; 

           (j) Indebtedness in an aggregate principal amount not to exceed $250,000 secured by Permitted Liens; 

           (k) Indebtedness owing to any officers or directors of Borrowers, provided that the aggregate principal amount of all such Indebtedness does not exceed $25,000 outstanding at any time and only to the extent it is Subordinated Debt; 

           (l) other unsecured Indebtedness not otherwise permitted by Section 7.4 not exceeding $250,000 in the aggregate outstanding at any time 

           (m) Indebtedness in an aggregate principal amount not to exceed $250,000 secured by Permitted Liens; 

           (n) Indebtedness owing to any officers or directors of Borrowers, provided that the aggregate principal amount of all such Indebtedness does not exceed $25,000 and only to the extent it is Subordinated Debt; 

           (o) other Indebtedness not otherwise permitted by Section 7.4 not exceeding $50,000 in the aggregate outstanding at any time; and 

-35-

          (p) extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (g) 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 Perfection Certificate and existing on the Effective Date; 

          (b) (i) cash and Cash Equivalents, and (ii) any other Investments permitted by Borrower’s investment policy, as amended from time to time, provided that any
material changes in such investment policy after the Effective Date has been approved by Bank; 

          (c) Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrowers;

          (d) Investments consisting of deposit accounts in which Bank has a perfected security interest or that are permitted under Section 6.8(c); 

          (e) Investments accepted in connection with Transfers permitted by Section 7.1; 

          (f) Investments of Subsidiaries in or to other Domestic Subsidiaries or Borrower and Investments by Borrower in Domestic Subsidiaries and Investments in Shanghai,
provided that any such Investments in Shanghai shall be upon fair and reasonable terms that are no less favorable to
Borrowers than would be obtained in an arm’s length transaction with a non-affiliated Person or shall not exceed, in the aggregate, $1,000,000 in cash and Equipment during the term of this Agreement; 

          (g) Investments consisting of travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business; 

          (h) Investments (including debt obligations) received (i) in connection with the bankruptcy or reorganization of customers or suppliers, (ii) in settlement of
delinquent obligations of, and other disputes with, customers or suppliers effected in the ordinary course of business or (iii) upon the foreclosure or enforcement of any Lien in favor of a Borrower or any Subsidiary of a Borrower; 

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

          (j) Investments in connection with the Acquisition; 

          (k) Investments consisting of guarantees constituting of Indebtedness permitted under Section 7.1; and 

          (l) other Investments not otherwise permitted by clauses (a) through (k) not exceeding $250,000 in the aggregate outstanding at any time. 

-36- 

     “Permitted Liens” are: 

          (a) Liens existing on the Effective Date and described in the Perfection Certificate; and Liens arising under this Agreement and the other Loan Documents; 

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

          (c) the Liens solely on Equipment financed by the Equipment Financing; 

          (d) purchase money Liens (i) on Equipment acquired or held by each Borrower incurred for financing the acquisition of the Equipment securing no more than
$500,000 in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment; 

          (e) Liens arising by operation of law in favor of materialmen, mechanics, carriers, warehousemen, landlords, laborers, suppliers and other Persons imposed, provided
that such Liens either (i) were incurred in the ordinary course of either Borrowers’ any Subsidiary’s business and not in connection with the borrowing of money, and (A) are for sums not yet delinquent more than 60 days past due or (ii)
are being contested in good faith and for which the applicable Borrower or Subsidiary maintains adequate reserves on its Books or (ii) have no priority over any of Bank’s Lien and the aggregate amount of obligations secured by such Liens does
not at any time exceed $100,000; 

          (f) Liens arising in connection with workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the
ordinary course of business; 

          (g) Liens arising from pledges and deposits made as security for appeal bonds in connection with obtaining such bonds in the ordinary course of business; 

          (h) inchoate and unperfected Liens for escheat or use taxes that are not the subject of any judgment or other asserted claim for the payment of money; 

          (i) with respect to any real property, reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title
exceptions and zoning restrictions and similar encumbrances that (i) do not materially interfere with or impair the use or operation thereof and (ii) are not Environmental Liens; 

          (j) leases or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses of property (other
than real property or Intellectual Property) granted in the ordinary course of Borrowers’ businesses, if the leases, subleases, licenses and sublicenses do not prohibit granting Bank a security interest; 

          (k) non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business, and licenses of Intellectual Property that could not
result in a legal transfer of title of the licensed property that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States; 

          (l) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7; and 

-37- 

          (m) Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at such institutions, provided
that Bank has a perfected security interest in the amounts held in such deposit and/or securities accounts or the amounts on deposit in such account comply with Section 6.8(d); 

          (n) Liens securing Indebtedness or other obligations in an aggregate amount not exceeding $250,000 outstanding at any time; and 

          (o) Liens incurred in the extension, renewal or refinancing of the obligations secured by Liens described in clauses (a), (c), (d), (m) and (n), provided any extension, renewal or replacement Lien shall be limited to the property encumbered by the existing Lien and the principal
amount of the obligations secured thereby may not increase. 

     “Permitted Portfolio Company” means a portfolio company of the private equity fund of Francisco Partners. 

     “Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency. 

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

     “Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made

     “Reserves” means reserves established by Bank from time to time against Eligible Accounts of Borrowers that Bank may, in its reasonable credit judgment,
establish from time to time. Without limiting the generality of the foregoing, Reserves established to ensure the payment of accrued Interest Expense or Indebtedness shall be deemed to be a reasonable exercise of Bank’s credit judgment.

     “Responsible Officer” is any of the Chief Executive Officer, President, and Chief Financial Officer of each Borrower. 

     “Revolving Line” is an Advance or Advances in an aggregate amount of up to $25,000,000 outstanding at any time. 

     “Revolving Line Maturity Date” is June 29, 2009.

     “Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made. 

     “Securities Pledge Agreement” that certain Securities Pledge Agreement executed and delivered by Holdings to Bank dated as of the Effective Date.

     “Senior Funded Debt” means, on any day, the principal amount of Indebtedness (other than Subordinated Debt) that would, under GAAP, be classified as
indebtedness on a consolidated balance sheet of Holdings and its Subsidiaries on such date.

     “Senior Leverage Ratio” is defined in Section 6.9(a).

          “Settlement Date” is defined in Section 2.1.3. 

-38-

     “Shanghai” means Ultra Clean Technology (Shanghai) Co., LTD.

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

     “Subsidiary” means, with respect to any Person, any Person of which more than 50% of the voting stock or other equity interests is owned or controlled,
directly or indirectly, by such Person or one or more Affiliates of such Person. 

     “Term Loan” is a loan made by Bank pursuant to the terms of Section 2.1.5 hereof. 

     “Term
Loan Amount” is an aggregate amount equal to $7,500,000 outstanding
at any time.

     “Term Loan Maturity Date” is June 29, 2009. 

     “Term Loan Payment” is defined in Section 2.1.5(b).

     “Transaction Report” is that certain report in form and substance satisfactory to Bank, including, without limitation, sales journals, collection journals,
and credit memorandum attached thereto. 

     “Transfer” is defined in Section 7.1.

     “Trigger Availability” means the sum of (i) Eligible Accounts multiplied by the advance rate then in effect as set forth in the definition of
Borrowing Base minus (ii) the sum of all outstanding Obligations to Bank in respect of the Revolving Line, the Term Loan and all outstanding Letters of Credit, plus (iii) unrestricted cash and Cash Equivalents of Borrowers.

     “Ultra Clean IP Security Agreement” means an Intellectual Property Security Agreement executed and delivered by Ultra Clean to Bank dated as of the
Effective Date. 

     “Union Bank Control Agreement” means the Three Party Lockbox and Deposit Account Control Agreement, of even date herewith, among Union Bank of California,
Bank and Borrowers. 

[Signature page follows]

-39-

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Effective Date. 

  
    BORROWERS:
  

  BOB ACQUISITION INC. (and any successor by merger) 

    PETE ACQUISITION LLC (to be renamed UCT Sieger Engineering LLC)

    ULTRA CLEAN TECHNOLOGY SYSTEMS AND SERVICE, INC. 

  	 
	 	 	 
	By:	/s/
                Jack Sexton 
	 	

	 	Name:	Jack Sexton 
	 	Title:	Chief Financial Officer 

    

  	BANK:
	 
	SILICON VALLEY BANK
	 
	 	 	 
	By:	/s/
                Maria Fischer Leaf 
	 	

	 	Name:	Maria Fischer Leaf 
	 	Title:	Senior Relationship Manager 

-41- 

EXHIBIT A

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

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

     all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

     Notwithstanding the foregoing, the “Collateral” does not include more than 65% of the presently existing and hereafter arising issued and outstanding
shares of capital stock owned by Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter. 

EXHIBIT B 

Loan Payment/Advance Request Form 

DEADLINE FOR SAME DAY PROCESSING IS NOON P.S.T.* 

	
Fax To:
		
Date:
__________________	

	LOAN PAYMENT:
	 
	[Insert Borrower name]  
	 	 	 
	
From Account #________________________________
To Account		 	 
	
#__________________________________________________
		 	 
	
(Deposit Account #)
		 
		(Loan Account #)

	
	
Principal $____________________________________
and/or Interest		 	 
	
$________________________________________________
		 	 
	
Authorized Signature:
_____________________		 
		
Phone Number:
_____________________	
	
Print Name/Title:
_____________________		 
		 

	

	LOAN ADVANCE:	 	 
	 	 	 
	Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire. 
	 	 	 
	
From Account #________________________________
		 
		To Account

	
	
#__________________________________________________
		 
		 

	
	
(Loan Account #)
		 
		
(Deposit Account #)
	
	
Amount of Advance $___________________________
		 
		 

	
	 	 	 
	All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date: 
	 	 	 
	 Authorized Signature: _____________________ 	  	 Phone Number: _____________________ 
	 Print Name/Title: _____________________ 	  	  

	OUTGOING WIRE REQUEST:
	Complete only if all or a portion of funds from the loan advance above is to be wired.  
	Deadline for same day processing is noon, P.S.T.
	 	 	 
	
Beneficiary Name: ____________________________________________________________________________________
	 	 	Amount of Wire: $ _______________________ 
	
		 	 
	
Beneficiary Bank:
	____________________________________________________________________________________
		 	Account Number: _______________________
	 

		 	 
	
	
City and State:
_______________________________________		 	 

	
	
Beneficiary Bank Transit (ABA) #:
________________________		 	
Beneficiary Bank Code (Swift, Sort, Chip, etc.):
__________
	 

		 	
(For International Wire Only)
	

________________
 

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

1

	
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 #: _______________________ 

2

EXHIBIT C 

Perfection Certificate Form

PERFECTION CERTIFICATE 

	
1.      		
The legal name of the [Borrower][Guarantor] is __________________ (the “Company”).	
	 
	
2.      		
The Company was formed on ____________in ____________________as a ______________. Since its formation, the Company has had the following legal names (other than its
current legal name):	
	 

	 	 		 	 	 		
Date Company’s Name
	 	
Prior Name		 	 	 		
Was Changed From Such Name	

	
3.      		
The Company does business under the following trade names:	
	 

	 	
Trade Name		 	 	 		
Is This Name Registered?	

	
4.      		
The Company has the following places of business or has assets located at the following locations:	
	 

	 	
Address		 		
Owner of Location		 		
Brief Description of Assets	

	
5.      		
The Company owns the following domestic and foreign registered patents and patent applications:	
	 

	 	
Title of Patent	 		
Registration/Application No.	 		
Registration/Filing Date

	
6.      		
The Company owns the following domestic and foreign registered and applied for trademarks, tradenames and service marks:	
	 

	 	
Trademarks, Tradenames or		 		 		 		 	
	 	
Service Marks		 		
Registration/Application No.	 		
Registration/Filing Date

1

	7.      	The Company owns the following domestic and foreign copyrights and copyright registrations: 

	 	
Description of Copyright		 		
Registration No.		 		
Registration Date	

	
8.      		
The Company uses the following material unregistered copyrights in the ordinary course of its business:	

	 	Description of Copyright 	 	 	 	 

	
9.      		
The following is a complete list of pending and threatened litigation or claims involving amounts claimed against Company in an indefinite amount or in excess of $50,000 in each
case:	
	 
	
10.      		
The Company’s federal employer I.D. number is:	
	 
	
11.      		
The Company’s organizational I.D. number is ___ ____________________

..	
	 
	
12.      		
The Company’s assets are subject to the following security interests:	
	 

	 	
Assets		 	 	 		
Name and Address of Secured Party	

	
14.	
The Company has investments in excess of $50,000 (calculated at the higher of cost or market value) in equity or debt securities of the following entities (other than subsidiaries):	
	 

	 	
Name of Entity		 	 	 		
Nature and Amount of Investment	

	
15.      		
The Company maintains the following deposit accounts (including demand, time, savings, passbook or similar accounts):	
	 

	 	
Name and Address of Depository		 		 		 		 	
	 	
Institution	 		
Type and Account No.		 		
Account Holder	

	
16.      		
The Company beneficially owns “investment property” in the following securities accounts:	
	 

	 	
Name and Address of Securities		 		 		 		 	
	 	
Intermediary	 		
Type and Account No.		 		
Account Holder	

2

	
17.      		
The Company has the following subsidiaries:	

	 	 	 	 	 	 
	 	 		 		
State of Formation or	 		
Percentage Owned by
	 	
Name of Subsidiary		 		
Organization	 		
Entity

	
18.	
True and correct copies of the Company’s organizational/charter documents are attached.

3

     The undersigned hereby certifies that the foregoing information contained on this Perfection Certificate is true and correct in all material respects as of June 29,
2006. 

  	_____________________________
	 
	
    By:
___________________________      
	 
      
	
    Printed Name:
      
	
    Title:
      

  

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