Document:

FORBEARANCE AGREEMENT DATED NOVEMBER 14, 2003

 Exhibit 10.1 
  
 FORBEARANCE AGREEMENT 
  
 This Forbearance Agreement (this “Agreement”) is dated as of November 14, 2003 and is entered into by and among OPINION RESEARCH CORPORATION, a
Delaware corporation (“Parent”), ORC INC., a Delaware corporation (“ORC”, Parent and ORC are sometimes collectively referred to herein as the “Borrowers” and individually as a “Borrower”), the Subsidiaries of
Borrowers party hereto, HELLER FINANCIAL, INC., in its capacity as Agent for the Lenders party to the Credit Agreement described below (“Agent”), and the Lenders. 
  
 RECITALS: 
  
 WHEREAS, Agent, Lenders and Borrowers are parties to that certain Credit Agreement dated as of May 26, 1999 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”); 
  
 WHEREAS, an Event of Default has occurred under subsection 6.1(A) of the Credit Agreement due to the Borrowers’ failure to make the mandatory prepayment of the Loans required by subsection 1.5(B) of the Credit
Agreement with respect to the fiscal year of Borrowers ended December 31, 2002 (such Event of Default, the “Existing Default”); and 
  
 WHEREAS, Agent and Lenders are willing to forbear from enforcing their rights that arise because of the Existing Default for a limited period of time,
provided that Borrowers comply with the terms of this Agreement. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  

SECTION 1. DEFINITIONS 
  
 1.1 All capitalized terms used herein (including in the introductory paragraph and recitals set forth above) and not otherwise defined shall have the
meanings assigned to such terms in the Credit Agreement. 
  
 1.2 The following terms used in this Agreement shall have the meanings set forth below: 
  
 “Forbearance Default” means (a) the occurrence of any Default or Event of Default other than the Existing Default; (b) the failure of Borrowers
to comply with any term, condition or covenant set forth in this Agreement, (c) any representation made by Borrowers under or in connection with this Agreement shall prove to be materially false or misleading as of the date when made or (d) the
filing of any petition (voluntary or involuntary) under the insolvency or 
  

 1 

 bankruptcy laws of the United States or any state thereof, or of any foreign jurisdiction, with respect to a Borrower,
any of its affiliates, or any of its Subsidiaries. 
  
 “Refinancing Date” means February 28, 2004. 
  
 “Subordination Agreement” means that certain Subordination and Intercreditor Agreement dated as of May 26, 1999 (as amended, restated, supplemented or otherwise modified from time to time) among Agent, Subordinated Lender and
Parent 
  
 “Termination Date” means the earlier
to occur of (a) 5:00 p.m. Chicago time on March 31, 2004 or (b) the date upon which a Forbearance Default occurs. 
  
 SECTION 2. CONFIRMATION BY BORROWERS OF OBLIGATIONS 
  
 Each Borrower acknowledges and agrees that as of the date hereof, the Borrowers have no right of offset, defense, or counterclaim with respect to the
Obligations. 
  
 SECTION 3. AGREEMENT TO FORBEAR;

 SUBORDINATION AGREEMENT; OTHER AGREEMENTS 
  
 3.1 Provided that no Forbearance Default occurs, Agent and Lenders hereby agree to refrain through the Termination Date from
exercising any of their rights and remedies under the Credit Agreement or any of the other Loan Documents (other than the Subordination Agreement) that may exist by virtue of the Existing Default; provided, however, that in no event shall the
foregoing be deemed to limit, modify, amend, waive or otherwise affect Agent’s and Lenders’ rights and remedies that exist under the Subordination Agreement due to the existence of the Existing Default, all of which rights and remedies are
hereby expressly reserved and which may be enforced by Agent and Lenders in accordance with the terms of the Subordination Agreement. If Borrowers make all payments required under Section 5.1 hereof in accordance with the terms of such Section, and
Borrowers comply with all other terms, covenants and conditions set forth in this Agreement, the Agent and Lenders agree that the Existing Default shall be deemed waived. 
  
 3.2 Nothing in this Agreement shall be construed as a waiver of or acquiescence to the Existing Default which shall continue
in existence, subject only to the agreement of Agent and Lenders, as set forth herein, not to enforce their remedies for a limited period of time. Except as expressly provided herein, the execution and delivery of this Agreement shall not: (a)
constitute an extension, modification, or waiver of any aspect of the Credit Agreement or the other Loan Documents; (b) extend the terms of the Credit Agreement or the due date of any of the Obligations; (c) give rise to any obligation on the part
of Agent or any Lender to extend, modify or waive any term or condition of the Credit Agreement or any of the other Loan Documents; (d) give rise to any defenses or counterclaims to the right of Agent or Lenders to compel payment of the Obligations
or to otherwise enforce their rights and remedies under the Credit Agreement and the other Loan Documents; or (e) establish a custom or course of dealing 
  

 2 

 between or among the Borrowers, the Agent and/or the Lenders, or any of them. Except as expressly limited herein, Agent
and Lenders hereby expressly reserve all of their rights and remedies under the Credit Agreement and the other Loan Documents and under applicable law with respect to the Existing Default. From and after the Termination Date, Agent and Lenders shall
be entitled to enforce the Credit Agreement and other Loan Documents according to the original terms thereof. 
  
 3.3 The parties hereto hereby acknowledge that the Existing Default constitutes a “Senior Payment Default” as defined in the Subordination
Agreement and as such, pursuant to Section 2.3(a) of the Subordination Agreement, Parent may not make, and Subordinated Lender may not receive, any payment with respect to the Junior Debt (as defined in the Subordination Agreement). Notwithstanding
anything to the contrary contained in this Agreement, all provisions of the Subordination Agreement (including, without limitation, Section 2.3(a) thereof) shall apply in full force and effect with respect to the Existing Default unless Requisite
Lenders agree otherwise in writing. 
  
 3.4 The parties hereto
hereby agree that, notwithstanding anything to the contrary contained in the Credit Agreement, Borrowers shall not be permitted to request LIBOR Loans with Interest Periods in excess of one month. 
  
 3.5 The parties hereto hereby agree that, pursuant to and in accordance with
Section 1.2(E) of the Credit Agreement, on and after the date hereof, for so long as the Existing Default and any other Event of Default continues, the Loans and other Obligations shall bear interest at a rate that is two percent (2.0%) in excess of
the rates otherwise payable under the Credit Agreement. Requisite Lenders may elect at any time to cease charging the two percent (2.0%) default rate set forth in the preceding sentence solely with respect to the Existing Default. 
  
 SECTION 4. REPRESENTATIONS AND WARRANTIES 
  
 In consideration of the limited agreement of Agent and Lenders to forbear
from the exercise of their rights and remedies as set forth above, each Borrower jointly and severally hereby represents and warrants to Agent and Lenders as of the date hereof as follows: 
  
 4.1 Borrowers have made full disclosure to Agent and Lenders of all existing
Defaults and Events of Default and all other disclosures as is required under subsection 4.8(K) of the Credit Agreement. 
  
 4.2 The execution, delivery and performance of this Agreement by each Loan Party party hereto are within such Person’s corporate power and have been
duly authorized by all necessary corporate action. 
  
 4.3 This
Agreement constitutes a valid and legally binding Agreement enforceable against each Loan Party party hereto in accordance with its terms subject to the effects of 
  

 3 

 bankruptcy, insolvency, fraudulent conveyance and other laws affecting creditors’ rights generally and to general
equitable principals. 
  
 4.4 All Loan Documents, including
without limitation the Credit Agreement, constitute valid and legally binding obligations of each Loan Party party thereto, enforceable against such Loan Party in accordance with the terms thereof subject to the effects of bankruptcy, insolvency,
fraudulent conveyance and other laws affecting creditors’ rights generally and to general equitable principals. 
  
 SECTION 5. COVENANTS 
  
 In order to induce Agent and Lenders to forbear from the exercise of their rights and remedies as set forth above, each Borrower hereby covenants and agrees with Agent and Lenders as follows: 
  
 5.1 The amount of the mandatory prepayment required under subsection 1.5(B)
of the Credit Agreement for the fiscal year of Borrowers ended December 31, 2002 is $1,681,000 (the “2002 Excess Cash Flow Payment”). Borrowers agree to pay, on a joint and several basis, the 2002 Excess Cash Flow Payment in four equal
installments of $420,250 on the last Business Day of each month, commencing with the first payment due and payable on December 31, 2003 and continuing through the last payment due and payable on March 31, 2004. The failure to make any such payment
when due shall constitute an immediate Event of Default under the Credit Agreement and a Forbearance Default hereunder. All payments made pursuant to this Section 5.1 shall be applied to the Obligations in the following order of priority:
first, to the outstanding principal amount of the Term Loan (against the Scheduled Installments thereof in inverse order of maturity), second, to the outstanding principal amount of the Revolving Loans and third, to all other
Obligations then outstanding. 
  
 5.2 Borrowers shall, and
shall cause their Subsidiaries to, continue to perform and observe all terms and conditions contained in the Credit Agreement and other Loan Documents. 
  
 5.3 Borrowers shall reimburse Agent and each Lender for all costs and expenses incurred by such Persons in connection with the negotiation, preparation
and enforcement of this Agreement (including, without limitation, reasonable attorneys’ fees and legal expenses, which may consist of fees and legal expenses of outside counsel retained by Agent or any Lender or the allocated costs of in-house
counsel of Agent or any Lender). 
  
 5.4 Borrowers shall pay to
Agent, for the benefit of the Lenders based on their Pro Rata Shares, a forbearance fee equal to one-quarter of one percent (0.25%) multiplied by the sum of (i) the aggregate outstanding principal balance of the Term Loan as of the date
hereof plus (ii) the Revolving Loan Commitment as of the date hereof (such fee, the “Forbearance Fee”). The Forbearance Fee shall be deemed to be fully earned on the date hereof and due and payable on December 31, 2003; provided,
that if, prior to December 31, 2003, all Obligations have been 
  

 4 

 repaid in full in cash and all commitments to lend under the Credit Agreement terminated, payment of the Forbearance Fee
shall be deemed waived. 
  
 5.5 Borrowers shall timely deliver to
Agent and Lenders each of the following items in form and substance, and which contain terms and conditions, acceptable to Agent: 
  
 (a) On or before November 19, 2003, a term sheet signed by one or more financial institutions, and signed and accepted by Borrowers, which
contains terms for a credit facility or other form of financing to be provided to Borrowers on or before the Refinancing Date (subject to normal and customary conditions to closing), the proceeds of which would be used by Borrowers to refinance
their existing indebtedness on or prior to the Refinancing Date, such that the Loans and all other Obligations would be paid in full and all commitments under the Credit Agreement terminated as of the Refinancing Date (such a credit facility or
other financing, a “Refinancing Credit Facility”). 
  
 (b) On or before November 20, 2003, and on each two-week anniversary thereof, 13-week cash flow projections (broken out week by week) for the Borrowers and their Subsidiaries on a consolidated basis. 
  
 (c) On or before December 1, 2003, a term sheet executed by
Borrowers and Subordinated Lender providing for a restructuring of the indebtedness evidenced by the Subordinated Note, such that the first scheduled principal payment on account of such restructured indebtedness would not be due and payable prior
to the scheduled maturity date of any Refinancing Credit Facility. 
  
 (d) On or before December 17, 2003, a commitment letter issued by one or more financial institutions providing that the financial institution(s) party thereto have a binding commitment, subject to normal and customary
conditions to closing, to provide a Refinancing Credit Facility to Borrowers on or prior to the Refinancing Date. 
  
 5.6 Borrowers shall fully and publicly disclose the existence of the Existing Default in compliance with Regulation FD and all other applicable securities
laws. 
  
 SECTION 6. GENERAL RELEASE 
  
 In consideration of, among other things, the forbearance provided for herein,
and any other financial accommodations which Agent and/or any Lender elects to extend to Borrowers, each Loan Party forever waives, releases and discharges any and all claims (including, without limitation, cross-claims, counterclaims, rights of
setoff and recoupment), causes of action, demands, suits, costs, expenses and damages that it now has or hereafter may have, of whatsoever nature and kind, whether known or unknown, whether now existing or hereafter arising, whether arising at law
or in equity that arise under or relate to any of the Loan Documents or this Agreement or any Person’s rights or obligations thereunder (collectively, “Claims”), against Agent or any Lender, any of such Person’s Subsidiaries and
affiliates, and its 
  

 5 

 and their respective successors, assigns, officers, directors, employees, agents, attorneys and other representatives
(collectively, the “Lender Releasees”), based in whole or in part on facts, whether or not known, existing on or prior to the date of this Agreement. The provisions of this section shall survive the termination of the Credit Agreement and
payment in full of the Obligations. 
  
 SECTION 7.
MISCELLANEOUS 
  
 7.1 Headings. Section headings in
this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
  
 7.2 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS
WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES. 
  
 7.3
Counterparts. This Agreement may be executed in any number of counterparts, and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together
shall constitute but one and the same instrument. 
  
 7.4
Continued Effectiveness. Except as expressly set forth in this Agreement, the terms of the Credit Agreement and each of the other Loan Documents remain unchanged, and all such Loan Documents shall remain in full force and effect and are
hereby confirmed and ratified. 
  
 7.5 No Novation. This
Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of the Credit Agreement or of any of the other Loan Documents or, except as expressly provided herein, a waiver by Agent or any Lender of any of its
rights and remedies under the Credit Agreement or any of the other Loan Documents, or any of them, or at law or in equity. 
  
 7.6 Reaffirmation. Each Loan Party signatory hereto hereby reaffirms each and every covenant, condition, obligation and provision set forth in the
Loan Documents, as modified hereby. 
  
 7.7 Construction.
Each Loan Party signatory hereto acknowledges that it has been represented by its own legal counsel in connection its execution of this Agreement and the Loan Documents, that it has exercised independent judgment with respect to this Agreement and
the Loan Documents, and that it has not relied on Agent or any Lender or on Agent’s or any Lender’s counsel for any advice with respect to this Agreement or the Loan Documents. 
  
 7.8 Integration; Waivers. This Agreement, the Loan Documents and the other written agreements, instruments and
documents entered into in connection therewith (collectively, the “Borrower/Lender Documents”) set forth in full the terms of agreement between the parties with 
  

 6 

 respect to the subject matter thereof and are intended as the full, complete and exclusive contract governing the
relationship between the parties with respect thereto, superseding all other discussions, promises, representations, warranties, agreements and understandings between the parties with respect thereto. Any waiver of any condition in, or breach of,
any of the foregoing in a particular instance shall not operate as a waiver of other or subsequent conditions or breaches of the same or a different kind. Agent’s and each Lender’s exercise or failure to exercise any rights under any of
the foregoing in a particular instance shall not operate as a waiver of its right to exercise the same or different rights in other instances. Except as expressly provided to the contrary in this Agreement, all the terms, conditions and provisions
of the Borrower/Lender Documents shall continue in full force and effect. 
  
 7.09 CONSENT TO JURISDICTION. EACH LOAN PARTY HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF COOK, STATE OF ILLINOIS AND IRREVOCABLY AGREES THAT, SUBJECT TO
AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL BE LITIGATED IN SUCH COURTS. EACH LOAN PARTY EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS
AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH LOAN PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH LOAN PARTY BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
REQUESTED, ADDRESSED TO SUCH LOAN PARTY AT THE ADDRESS OF BORROWERS SET FORTH IN THE CREDIT AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED. 
  
 7.10 WAIVER OF JURY TRIAL. EACH LOAN PARTY, AGENT AND EACH LENDER
HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. EACH LOAN PARTY, AGENT AND EACH LENDER ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL
INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH LOAN PARTY,
AGENT AND EACH LENDER WARRANT AND REPRESENT THAT EACH HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS. 
  
 7.11 Reaffirmation. Each Loan Party party hereto has executed and
delivered one or more of the Security Documents and/or the other Loan Documents as debtor, grantor, pledgor, guarantor, assignor, or in other similar capacities in which such Person has granted liens or security interests in their respective
properties or otherwise acted as an accommodation party or guarantor, as the case may be. Each Loan Party party hereto hereby ratifies and reaffirms all of 
  

 7 

 its respective payment and performance obligations, contingent or otherwise, under the Security Documents and any other
Loan Documents to which it is a party and, to the extent any such Person has granted liens on or security interests in any of their respective properties pursuant to any of the Security Documents or any of the other Loan Documents as security for or
otherwise guaranteed the Obligations under or with respect to the Agreement or any other Loan Documents, hereby ratifies and reaffirms such payment and performance obligations, guarantee and grant of security interests and liens and confirms and
agrees that such security interests and liens hereafter secure all of the Obligations. Each Loan Party party hereto agrees that each of the Security Documents and each other Loan Document remains in full force and effect and is hereby ratified and
reaffirmed, and agrees that this Agreement shall not (i) operate as a waiver of any right, power or remedy of Agent or Lenders under the Loan Documents or (ii) constitute a waiver of any provision of any of the Loan Documents or serve to effect a
novation of the Obligations. 
  
 [rest of page intentionally left
blank; signature page follows] 
  
  

 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first set
forth above, by their respective duly authorized officers. 
  

	 AGENT AND LENDERS:
  
 HELLER FINANCIAL, INC.,
 as Agent and as a Lender
	 	 	 	 BORROWERS:
  
 OPINION RESEARCH CORPORATION,
 a Delaware corporation

					
	By:	 	 /s/    Douglas Connaliato        
	 	 	 	By:	 	 /s/    Douglas L. Cox        

	 	
	 	 	 	 	

	 Name:
	 	 Douglas Connaliato
	 	 	 	 Name:
	 	 Douglas L. Cox

	 	
	 	 	 	 	

	 Title:
	 	 Duly Authorized Signatory
	 	 	 	 Title:
	 	 Chief Financial Officer

	 	
	 	 	 	 	

  

	 FLEET NATIONAL BANK,
 as a Lender
	 	 	 	 ORC INC.,
 a Delaware corporation

					
	By:	 	 /s/    Kenneth R. Geiger         
	 	 	 	By:	 	 /s/    Kevin P. Croke      

	 	
	 	 	 	 	

	 Name:
	 	 Kenneth R. Geiger
	 	 	 	 Name:
	 	 Kevin P. Croke

	 	
	 	 	 	 	

	 Title:
	 	 Managed Assets Officer
	 	 	 	 Title:
	 	 President

	 	
	 	 	 	 	

  

	 WACHOVIA BANK, NATIONAL ASSOCIATION,
 as a Lender
	 	 	 	 
					
	By:	 	 /s/    James Barwis      
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Name:
	 	 James Barwis
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Title:
	 	 Director
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 

  

	 MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.,
 as a Lender
	 	 
					
	By:	 	 /s/    Patrick A. Lucas        
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Name:
	 	 Patrick A. Lucas
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Title:
	 	 AVP 
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 

  
  

	 PNC BANK, NATIONAL ASSOCIATION,
 as a Lender
	 	 	 	 
					
	By:	 	 /s/    Judy B. Land       
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Name:
	 	 Judy B. Land
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Title:
	 	 Vice President
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 

  
 [signatures continued
on next page] 

	 SUBSIDIARIES:
  
 ORC TELESERVICE CORP.,
 a Delaware corporation

		
	By:	 	 /s/    Kevin P. Croke         

	 	

	 Name:
	 	 Kevin P. Croke

	 	

	 Title:
	 	 Secretary

	 	

  

	 ORC PROTEL, INC.,
 a Delaware corporation

		
	By:	 	 /s/    Kevin P. Croke         

	 	

	 Name:
	 	 Kevin P. Croke

	 	

	 Title:
	 	 Secretary

	 	

  

	 MACRO INTERNATIONAL INC.,
 a Delaware corporation

		
	By:	 	 /s/    Douglas L. Cox        

	 	

	 Name:
	 	 Douglas L. Cox

	 	

	 Title:
	 	 Secretary

	 	

  

	 SOCIAL AND HEALTH SERVICES, LTD.,
 a Maryland corporation

		
	By:	 	 /s/    Kevin P. Croke        

	 	

	 Name:
	 	 Kevin P. Croke

	 	

	 Title:
	 	 Secretary

	 	

  

	 ORC TELECOMMUNICATIONS LTD.,
 a Maryland corporation

		
	By:	 	 /s/    Douglas L. Cox         

	 	

	 Name:
	 	 Douglas L. Cox

	 	

	 Title:
	 	 SecretaryStock and Warrant Purchase Agreement from July 2003 Private Placement

 EXHIBIT 10.14 
  
 CALIFORNIA MICRO DEVICES CORPORATION 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 July 28, 2003 

 TABLE OF CONTENTS 
  

	 	  	 	  	 	  	Page

	 1.
	  	 Purchase and Sale of Stock and Warrants
	  	1
	 	  	         1.1
	  	 Sale and Issuance of Common Stock
	  	1
	 	  	         1.2
	  	 Sale and Issuance of Warrants
	  	1
	 	  	         1.3
	  	 Closing
	  	1
			
	 2.
	  	 Representations and Warranties of the Company
	  	2
	 	  	         2.1
	  	 Corporate Existence and Power
	  	2
	 	  	         2.2
	  	 Authorization; No Contravention
	  	2
	 	  	         2.3
	  	 Governmental Authorization; Third Party Consents
	  	3
	 	  	         2.4
	  	 Binding Effect
	  	3
	 	  	         2.5
	  	 Litigation
	  	3
	 	  	         2.6
	  	 Compliance with Laws
	  	4
	 	  	         2.7
	  	 Capitalization
	  	4
	 	  	         2.8
	  	 No Default or Breach; Contractual Obligations
	  	5
	 	  	         2.9
	  	 Title to Properties
	  	5
	 	  	         2.10
	  	 Reports; Financial Statements
	  	5
	 	  	         2.11
	  	 Taxes
	  	6
	 	  	         2.12
	  	 No Material Adverse Change; Ordinary Course of Business
	  	6
	 	  	         2.13
	  	 Private Offering
	  	7
	 	  	         2.14
	  	 Labor Relations
	  	7
	 	  	         2.15
	  	 Employee Benefit Plans
	  	7
	 	  	         2.16
	  	 Liabilities
	  	8
	 	  	         2.17
	  	 Intellectual Property
	  	8
	 	  	         2.18
	  	 Potential Conflicts of Interest
	  	10
	 	  	         2.19
	  	 Trade Relations
	  	10
	 	  	         2.20
	  	 Outstanding Borrowing
	  	10
	 	  	         2.21
	  	 Broker’s, Finder’s or Similar Fees
	  	10
	 	  	         2.22
	  	 Disclosure
	  	10
	 	  	         2.23
	  	 Insurance
	  	11
	 	  	         2.24
	  	 Form S-3 Eligibility
	  	11
			
	 3.
	  	 Representations and Warranties of the Investors
	  	11
	 	  	         3.1
	  	 Authorization
	  	11
	 	  	         3.2
	  	 Purchase Entirely for Own Account
	  	11
	 	  	         3.3
	  	 Reliance Upon Investor’s Representations
	  	11
	 	  	         3.4
	  	 Receipt of Information
	  	11
	 	  	         3.5
	  	 Investment Experience
	  	12
	 	  	         3.6
	  	 Accredited Investor
	  	12
	 	  	         3.7
	  	 Restricted Securities
	  	12
	 	  	         3.8
	  	 Legends
	  	12
	 	  	         3.9
	  	 Broker’s, Finder’s or Similar Fees
	  	13

  

 -i- 

	 4.
	  	 Registration of the Shares; Compliance with the Securities Act
	  	13
	 	  	         4.1
	  	 Registration Procedures and Expenses
	  	13
	 	  	         4.2
	  	 Transfer of Shares After Registration; Suspension
	  	14
	 	  	         4.3
	  	 Indemnification
	  	15
	 	  	         4.4
	  	 Termination of Conditions and Obligations
	  	17
			
	 5.
	  	 Conditions of each Investor’s Obligations at Closing
	  	18
	 	  	         5.1
	  	 Representations and Warranties
	  	18
	 	  	         5.2
	  	 Performance
	  	18
	 	  	         5.3
	  	 Compliance Certificate
	  	18
	 	  	         5.4
	  	 Qualifications
	  	18
	 	  	         5.5
	  	 Opinion of Counsel
	  	18
			
	 6.
	  	 Conditions of the Company’s Obligations at Closing
	  	18
	 	  	         6.1
	  	 Representations and Warranties
	  	18
	 	  	         6.2
	  	 Qualifications
	  	18
			
	 7.
	  	 Miscellaneous
	  	18
	 	  	         7.1
	  	 Entire Agreement
	  	18
	 	  	         7.2
	  	 Survival
	  	19
	 	  	         7.3
	  	 Successors and Assigns
	  	19
	 	  	         7.4
	  	 Governing Law
	  	19
	 	  	         7.5
	  	 Counterparts
	  	19
	 	  	         7.6
	  	 Titles and Subtitles
	  	19
	 	  	         7.7
	  	 Notices
	  	19
	 	  	         7.8
	  	 Expenses
	  	19
	 	  	         7.9
	  	 Attorneys’ Fees
	  	20
	 	  	         7.10
	  	 Amendments and Waivers
	  	20
	 	  	         7.11
	  	 Severability
	  	20
	 	  	         7.12
	  	 Rights of the Investor
	  	21
	 	  	         7.13
	  	 Conflict of Interest Waiver
	  	21
	 	  	         7.14
	  	 Press Release/Form 8-K
	  	21

  

	 Exhibits

	  	 	    	 
	 Exhibit A
	  	    –	    	 Form of Warrant

	 Exhibit B
	  	    –	    	 Certificate of Subsequent Sale

	 Exhibit C
	  	    –	    	 Form of Opinion of Company’s counsel

	 Exhibit D
	  	    –	    	 Schedule of Exceptions

  
  

 -ii- 

 CALIFORNIA MICRO DEVICES CORPORATION 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 This Stock and Warrant Purchase Agreement (this “Agreement”) is made as of the 28th day of July, 2003 (the “Effective Date”), by and among California Micro Devices Corporation, a California
corporation (the “Company”), and each of the persons listed on the signature pages hereto (each of whom is herein referred to individually as an “Investor” and collectively as the “Investors”). The parties hereto agree
as follows: 
  
 1. Purchase and Sale of Stock and
Warrants. 
  
 1.1 Sale and Issuance of Common Stock
Subject to the terms and conditions of this Agreement, each Investor severally (and not jointly and severally) agrees to purchase at the Closing (as defined below), and the Company agrees to issue and sell to each Investor at the Closing, that
number of shares (the “Shares”) of common stock, no par value, of the Company (the “Common Stock”) set forth above such Investor’s name on the signature pages hereto at a price per Share equal to $2.25 (the “Purchase
Price”), up to an aggregate of the lesser of (i) 2,444,444 Shares and (ii) that number of Shares such that the Company does not require approval of its shareholders for the transactions contemplated by this Agreement (the “Maximum”)..

  
 1.2 Sale and Issuance of Warrants Subject to the terms
and conditions of this Agreement, each Investor severally (and not jointly and severally) agrees to purchase at the Closing, and the Company agrees to issue and sell to each Investor at the Closing, a warrant to purchase that number of shares of
Common Stock (the “Warrant”), equal to thirty percent (30%) of the number of Shares purchased by such Investor, substantially in the form attached hereto as Exhibit A. 
  
 1.3 Closings The purchase and sale of the Shares and Warrants (the “Closing”) shall occur in two closings,
the first to occur no later than July 30, 2003 (the “First Closing”), and the second to occur no later than August 1, 2003 (the “Second Closing”). Any Investor in the Second Closing must have become a party to this Agreement
prior to the end of the day on which the First Closing occurs. Except when specifically designated as the “First Closing” or the “Second Closing,” references to the “Closing,” the “Closings” or the
“Closing Date” in this Agreement will refer to the First Closing and/or the Second Closing, as applicable by their context, and to those parties participating in the applicable Closing. The Closings will each occur at a place and time to
be specified by the Company and Needham & Company, Inc. and Adams, Harkness & Hill, Inc. (collectively, the “Placement Agents”). Those Investors participating in each such Closing will be notified of such place and time not less
than one (1) business day in advance by the Placement Agents. 
  
 (a) The First Closing. The First Closing shall be for the purchase and sale of the Company’s Common Stock and Warrants to Investor s affiliated with Special Situations Funds (“Special Situation Funds”) At the First
Closing, after receipt of payment of $4,000,050, the Company shall arrange delivery to Special Situations Funds of one or more stock certificates representing 1,777,800 Shares, and one or more Warrants to purchase, in the aggregate, 533,340 shares
of the Company’s Common Stock, each to be registered in the name of Special Situations Funds. 
  

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 (b) The Second Closing. The Second Closing shall be for the purchase and sale of up to the
difference between the Maximum less 1,777,800 Shares and Warrants to purchase 30% of Shares sold in the Second Closing. The Investors who participate in the Second Closing shall be accredited institutional Investors who must be pre-approved by
Special Situations Funds, except that no pre-approval is required for the funds affiliated with Columbus Capital, Gruber & McBaine, Kern Capital, Proximity Capital, Royce Associates, and T. Rowe Price. At the Second Closing, after receipt of
payment for the number of shares listed above such Investor’s name on the signature pages attached hereto, the Company shall arrange delivery to such Investor of one or more stock certificates representing the number of Shares, and one or more
Warrants, each to be registered in the name of the Investor. 
  
 (c) Preliminary Schedule of Investors. The parties acknowledge that, with the exception of Special Situations Funds, the schedule of Investors attached hereto as Schedule A is a preliminary schedule of investors. As soon as
practicable after the Second Closing, the Company shall deliver to each Investor a completed Schedule A, listing each Investor and the amount of Shares and Warrants purchased by such Investor hereunder. 
  
 2. Representations and Warranties of the Company The Company hereby
represents and warrants to each Investor that, as of the Effective Date, and except as disclosed in all reports, registration statements and other filings, together with any amendments thereto, filed by the Company with the Securities and Exchange
Commission (the “SEC”) on or after June 30, 2003 and prior to the Effective Date (collectively, the “SEC Reports”), the Company’s press release dated July 16, 2003, and the Schedule of Exceptions attached hereto as Exhibit
D, specifically identifying the relevant subparagraph, which exceptions shall be deemed to be representations and warranties as if made hereunder: 
  
 2.1 Corporate Existence and Power The Company, and each of the corporations or other entities of which the Company holds a majority of the voting
power of the outstanding voting equity securities or a majority of the economic equity interest of such corporation or entity (collectively, the “Subsidiaries”) (a) is a corporation duly organized, validly existing and in good standing
under the laws of the jurisdiction of its incorporation; (b) has all requisite corporate power and authority to own and operate its property, to lease the property it operates as lessee and to conduct the business in which it is currently engaged;
(c) is duly qualified as a foreign corporation, licensed and in good standing under the laws of each jurisdiction in which its ownership, lease or operation of property or the conduct of its business requires such qualification, except where the
failure to be so qualified could not reasonably be expected to have a material adverse effect on the Condition of the Company and (d) has the corporate power and authority to execute, deliver and perform its obligations under this Agreement.

  
 2.2 Authorization; No Contravention The execution,
delivery and performance by the Company of this Agreement and the transactions contemplated hereby and thereby (a) have been duly authorized by all necessary corporate action of the Company; (b) do not contravene the terms of the Articles of
Incorporation or the By-laws; (c) do not violate, conflict with or result in any breach, default or contravention of (or with due notice or lapse of time or both would result 

  

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in any breach, default or contravention of), or the creation of any mortgage, deed of trust, pledge, hypothecation, assignment, encumbrance, lien (statutory
or otherwise) or preference, priority, right or other security interest or preferential arrangement (a “Lien”) under, any provision of any agreement, undertaking, contract, indenture, mortgage, deed of trust, or other instrument to which
the Company is a party or by which its property is bound (a “Contractual Obligation”) of the Company or any law, statute, treaty, rule, regulation, right, privilege, qualification, license or franchise (a “Requirement of Law”)
applicable to the Company except such violations or conflicts that would not reasonably be expected to have a material adverse effect on the Condition of the Company; and (d) do not violate any judgment, injunction, writ, award, decree or order of
any nature (collectively, “Orders”) of the government of any nation, state, city, locality or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government, (a “Governmental Authority”) against, or binding upon, the Company or any of its Subsidiaries. 
  
 2.3 Governmental Authorization; Third Party Consents No approval, consent, compliance, exemption, authorization or other action by, or notice to,
or filing with, any Governmental Authority or any other individual, firm, corporation, partnership, trust, association, joint venture, limited liability company, or other entity of any kind (a “Person”), and no lapse of a waiting period
under a Requirement of Law, is necessary or required in connection with the execution, delivery or performance (including, without limitation, the sale, issuance and delivery of the Shares and Warrants) by, or enforcement against, the Company of
this Agreement and the transactions contemplated hereby and thereby. 
  
 2.4 Binding Effect This Agreement has been duly executed and delivered by the Company, and this Agreement constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their
terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general
principles of equity relating to enforceability (regardless of whether considered in a proceeding at law or in equity). 
  
 2.5 Litigation There are no actions, suits, proceedings, claims, complaints, disputes, arbitrations or investigations (collectively,
“Claims”) pending or, to the Knowledge of the Company’s executive officers (the “Knowledge”) of the Company, threatened, at law, in equity, in arbitration or before any Governmental Authority against the Company or any of
its Subsidiaries that seeks damages in an amount which is material to the Company’s operations, other than ordinary routine litigation incidental to the business of the Company nor is the Company aware that there is any basis for any of the
foregoing. The foregoing includes, without limitation, Claims pending or, to the Knowledge of the Company, threatened or any basis therefor known by the Company involving the prior employment of any employee of the Company or any of its
Subsidiaries, their use in connection with the business of the Company or any of its Subsidiaries of any information or techniques allegedly proprietary to any of their former employers or their obligations under any agreements with prior employers.
No Order has been issued by any court or other Governmental Authority against the Company or any of its Subsidiaries purporting to enjoin or restrain the execution, delivery or performance of this Agreement or any of the other Transaction Documents.

  

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 2.6 Compliance with Laws The Company and each of its Subsidiaries is in compliance in all material
respects with all Requirements of Law and all Orders issued by any court or Governmental Authority against the Company in all respects. To the Company’s Knowledge, there are no Requirements of Law which could reasonably be expected to prohibit
or restrict the Company or any of its Subsidiaries from, or otherwise materially adversely effect the Company or any of its Subsidiaries in, conducting its business in any jurisdiction in which it now conducts its business. 
  
 2.7 Capitalization 
  
 (a) The authorized capital stock of the Company consists of 25,000,000
shares of Common Stock, of which 15,887,606 shares (the “Issued Stock”) were issued and outstanding as of June 26, 2003, and 10,000,000 shares of preferred stock, of which 400,000 have been designated as “Series A Participating
Preferred Stock”, none of which was issued or outstanding as of March 31, 2003. As of June 26, 2003, 4,115,000 shares of Common Stock were reserved for issuance under the Company’s 1995 Employee Stock Option Plan, as amended, 450,000
shares of Common Stock were reserved for issuance under the Company’s 1995 Non-Employee Directors’ Stock Option Plan, as amended, and 1,130,000 shares of Common Stock were reserved for issuance under the Company’s 1995 Employee Stock
Purchase Plan. As of March 31, 2003, 1,789,499 shares of Common Stock had been issued and 2,040,881 shares of Common Stock were issuable upon the exercise of stock options granted under the Company’s 1995 Employee Stock Option Plan, 93,681
shares of Common Stock were available for future grant under the Company’s 1995 Non-Employee Directors’ Stock Option Plan, and, as of June 26, 2003, 920,037 shares of Common Stock had been issued under the Company’s 1995 Employee
Stock Purchase Plan. The Issued Stock represents all of the issued and outstanding shares of capital stock of the Company and all shares of Issued Stock have been duly authorized and validly issued and are fully paid and nonassessable. All of the
shares of Issued Stock and other securities of the Company have been offered, issued and sold by the Company in compliance in all material respects with the Securities Act of 1933, as amended (“the Securities Act”) and applicable state
securities laws. There are no contracts or other agreements relating to the issuance, sale or transfer of Issued Stock or any equity or other securities of the Company other than pursuant to the 1995 Employee Stock Option Plan, as amended; the 1995
Non-Employee Directors’ Stock Option Plan, as amended; the 1995 Employee Stock Purchase Plan, as amended; an unsigned Investment Letter proposed to Dan McCranie relating to a 7,500 share bonus offered to him and included as Issued Stock; a
warrant for 59,750 shares of Common Stock held by Needham & Company, Inc.; the warrants issuable to the Placement Agents in connection with this Agreement; warrants to purchase 424,417 shares of Common Stock held by the investors in the
Company’s Private Placement of November, 2002; warrants held by the Placment Agents to purchase an aggregate of 44,766 shares of Common Stock granted in connection with the Company’s 2002 private placement , and the Shares and Warrants
issuable pursuant to this Agreement. 
  
 (b) The Shares and
Warrants are duly authorized, and the Shares and shares of Common Stock issuable upon exercise of the Warrants (the “Warrant Shares”)when issued and delivered to the Purchasers after payment therefor, will be validly issued, fully paid and
non-assessable, and assuming the accuracy of the representations and warranties of the Purchasers set forth in Section 3 of this Agreement, will be issued in compliance with the registration and 

  

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qualification requirements of all applicable federal, state and foreign securities laws and will be free and clear of all other Liens. None of the issued and
outstanding shares of Common Stock were issued in violation of any preemptive rights. 
  
 2.8 No Default or Breach; Contractual Obligations All of the Contractual Obligations to which the Company or any of its Subsidiaries is a party, whether written or oral, which are required by the Exchange Act
to be disclosed in the SEC Reports (collectively, “Material Contractual Obligations”) are valid, subsisting, in full force and effect and binding upon the Company or its Subsidiary, as the case may be, and, to the Knowledge of the Company,
the other parties thereto, and the Company or its Subsidiary, as the case may be, has paid in full or accrued all amounts due thereunder and has satisfied in full or provided for all of its liabilities and obligations thereunder, except for such
amounts as are being contested by the Company in good faith. Neither the Company nor any of its Subsidiaries has received notice of a default and is not in default under, or with respect to, any Material Contractual Obligation nor, to the Knowledge
of the Company, does any condition exist that with notice or lapse of time or both would constitute a default thereunder. To the Knowledge of the Company, no other party to any such Contractual Obligation is in default thereunder, nor does any
condition exist that with notice or lapse of time or both would constitute a default by such other party thereunder. 
  
 2.9 Title to Properties The Company and each of its Subsidiaries has good, record and marketable title in fee simple to, or holds interests as
lessee under leases in full force and effect in, all real property used in connection with its business or otherwise owned or leased by it, in each case free and clear of all Liens, except for Liens that would required to be described in the notes
to the Financial Statements. The Company and each of its Subsidiaries owns and has good, valid and marketable title to all of its properties and assets used in its business or reflected as owned on the Financial Statements, in each case free and
clear of all Liens, except for Liens that would required to be described in the notes to the Financial Statements. 
  
 2.10 Reports; Financial Statements (a) As of the respective dates of their filing with the Commission, the SEC Reports, complied in all material
respects with the applicable requirements of the Securities Act, the Exchange Act, and the rules and regulations of the Commission promulgated thereunder, except as disclosed in the SEC Reports. Except as disclosed in the SEC Reports, the SEC
Reports did not at the time they were filed with the Commission, or will not at the time they are filed with the Commission, 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 are made, not misleading. The Company is not aware of any issues raised by the Commission with respect to any of the SEC Reports, other than those disclosed
in the SEC Reports. 
  
 (b) Except as disclosed in the SEC
Reports, the consolidated financial statements (including, in each case, any related schedules or notes thereto) contained in or incorporated by reference in the SEC Reports and any such reports, registration statements and other filings to be filed
by the Company with the Commission prior to the Closing Date (the “Financial Statements”) (i) have been or will be prepared in accordance with the published rules and regulations of the Commission and GAAP consistently applied during the
periods involved (except as may be indicated in the notes thereto) and (ii) fairly present or will fairly present in all 

  

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material respects the consolidated financial position of the Company and its Subsidiaries as of the respective dates thereof and the consolidated results of
operations, statements of stockholders’ equity and cash flows for the periods indicated, except that any unaudited interim financial statements were or will be subject to normal and recurring year-end adjustments and may omit footnote
disclosure as permitted by regulations of the Commission. 
  
 2.11
Taxes (a) The Company and each of its Subsidiaries has paid all federal, state, provincial, county, local, foreign and other taxes (the “Taxes”) which have come due and are required to be paid by it through the date hereof, and all
deficiencies or other additions to Tax, interest and penalties owed by it in connection with any such Taxes, other than Taxes being disputed by the Company in good faith for which adequate reserves have been made in accordance with GAAP; 

 
 (b) The Company and each of its Subsidiaries has timely filed or caused to
be filed all returns for Taxes that it is required to file on and through the date hereof (including all applicable extensions), and all such Tax returns are accurate and complete in all material respects; 
  
 (c) With respect to all Tax returns of the Company and each of its
Subsidiaries, (i) there is no unassessed Tax deficiency proposed or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries and (ii) no audit is in progress with respect to any return for Taxes, no extension of
time is in force with respect to any date on which any return for Taxes was or is to be filed and no waiver or agreement is in force for the extension of time for the assessment or payment of any Tax; 
  
 (d) All provisions for Tax liabilities of the Company and each of its
Subsidiaries have been disclosed in the Financial Statements and made in accordance with GAAP consistently applied, and all liabilities for Taxes of the Company and each of its Subsidiaries attributable to periods prior to or ending on the Closing
Date have been adequately disclosed in the Financial Statements; and 
  
 (e) There are no Liens for Taxes on the assets of the Company or any of its Subsidiaries. 
  
 2.12 No Material Adverse Change; Ordinary Course of Business Since March 31, 2003, except as disclosed in or incorporated by reference in the SEC
Reports, (a) there has not been any material adverse change, in the Condition of the Company, (b) neither the Company nor any of its Subsidiaries has participated in any transaction material to the Condition of the Company, including, without
limitation, declaring or paying any dividend or declaring or making any distribution to its stockholders except out of the earnings of the Company or its Subsidiary, as the case may be, (c) neither the Company nor any of its subsidiaries has entered
into any Material Contractual Obligation, other than in the ordinary course of business, (d) there has not occurred a material change in the accounting principles or practice of the Company or any of its Subsidiaries except as required by reason of
a change in GAAP, and (e) there has not been any issuance of Company capital stock, or warrants, options or other rights to purchase Company capital stock, except for (a) options granted and shares issued under the Company stock option and purchase
plans, (2) warrants promised to the Placement Agents in connection with the offering of the Shares and Warrants, and (3) the Shares and Warrants. 
  

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 2.13 Private Offering Neither the Company nor any authorized Person acting on its behalf has, in
connection with the offer, sale, exchange or issuance of the Shares or Warrants, engaged in (i) any form of general solicitation or general advertising (as those terms are used within the meaning of Rule 502(c) under the Securities Act), (ii) any
action involving a public offering within the meaning of Section 4(2) of the Securities Act, or (iii) any action that would require the registration under the Securities Act of the offering, sale, exchange or issuance of the Shares or Warrants
pursuant to this Agreement or that would violate applicable state securities or “blue sky” laws. The Company has not made and will not prior to the Closing Date make, directly or indirectly, any offer or sale of the Shares, Warrants, or of
securities of the same or similar class as the Shares or Warrants, if, as a result, the offer and sale contemplated hereby would fail to be entitled to exemption from the registration requirements of the Securities Act. As used herein, the terms
“offer” and “sale” have the meanings specified in Section 2(3) of the Securities Act. 
  
 2.14 Labor Relations Except as could not reasonably be expected to have a material adverse effect on the Condition of the Company: (a) neither the
Company nor any of its Subsidiaries is engaged in any unfair labor practice; (b) there is no strike, labor dispute, slowdown or stoppage pending or, to the Knowledge of the Company, threatened against the Company or any of its Subsidiaries ; (c)
neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or contract; and (d) no union organizing activities are taking place. To the Knowledge of the Company, each of the officers and key employees of the
Company and each of its Subsidiaries spends all, or substantially all, of his business time on the business of the Company or its Subsidiary, as the case may be. To the Knowledge of the Company, none of the employees of the Company or any of its
Subsidiaries is resident in the United States in violation of any Requirement of Law. 
  
 2.15 Employee Benefit Plans (a) The SEC Reports list or describe each Plan that the Company or any of its Subsidiaries maintains or to which the Company or any of its Subsidiaries contributes (the “Company
Plans”). Neither the Company nor any of its Subsidiaries has any liability under any Plans other than the Company Plans. Except as described in or incorporated by reference in the SEC Reports, neither the Company nor any Commonly Controlled
Entity maintains or contributes to, or has within the preceding six years maintained or contributed to, or may have any liability with respect to any Plan subject to Title IV of ERISA or Section 412 of the Code or any “multiple employer
plan” within the meaning of the Code or ERISA. Each Company Plan (and related trust, insurance contract or fund) has been established and administered in accordance with its terms, and complies in form and in operation with the applicable
requirements of ERISA and the Code and other applicable Requirements of Law. All contributions (including all employer contributions and employee salary reduction contributions) which are due have been paid to each Company Plan. 
  
 (b) No Claim with respect to the administration or the investment of the
assets of any Company Plan (other than routine claims for benefits) is pending. 
  
 (c) Except as could not reasonably be expected to have a material adverse effect on the Condition of the Company, each Company Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and
has been so qualified during the period since its adoption; each trust created under any such Plan is exempt from tax under Section 501(a) of the Code and has been so exempt since its creation. 
  

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 (d) No Company Plan is a welfare plan (as defined in Section (3)(l) of ERISA) that provides benefits to
current or former employees beyond their retirement or other termination of service (other than coverage mandated by Section 4980A of the Code, commonly referred to as “COBRA”, the cost of which is fully paid by the current or former
employee or his or her dependents). 
  
 (e) Neither the
consummation of the transactions contemplated by this Agreement nor any termination of employment following such transactions will accelerate the time of the payment or vesting of, or increase the amount of, compensation due to any employee or
former employee whether or not such payment would constitute an “excess parachute payment” under Section 280G of the Code. 
  
 (f) There are no unfunded obligations under any Company Plan which are not fully reflected in the Financial Statements. 
  
 (g) Except as could not reasonably be expected to have a material adverse
effect on the Condition of the Company, the Company has no liability, whether absolute or contingent, including any obligations under any Company Plan, with respect to any misclassification of any person as an independent contractor rather than as
an employee. 
  
 2.16 Liabilities Neither the Company nor
any of its Subsidiaries has any direct or indirect obligation or liability (the “Liabilities”) which are not fully reflected or reserved against in the Financial Statements, other than Liabilities not exceeding $250,000 in the aggregate
incurred since March 31, 2003 in the ordinary course of business. The Company has no Knowledge of any circumstance, condition, event or arrangement that could reasonably be expected to give rise hereafter to any Liabilities of the Company or any of
its Subsidiaries that, individually or in the aggregate, could have a material adverse effect on the Condition of the Company. 
  
 2.17 Intellectual Property 
  
 (a) (i) The Company and each of its Subsidiaries is the owner of all, or has the license or right to use all, of the copyrights, patents, trade secrets,
trademarks, internet assets, software and other proprietary rights (collectively, “Intellectual Property”) that are used in connection with its business as presently conducted, free and clear of all Liens except for a limited security
interest of and a negative pledge agreement with Silicon Valley Bank. 
  
 (ii) None of the Intellectual Property is subject to any outstanding Order, and no action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand is pending or, to the Knowledge of the Company,
threatened, which challenges the validity, enforceability, use or ownership of the item. 
  
 (iii) The Company and each of its Subsidiaries has substantially performed all obligations imposed upon it under all Intellectual Property
licenses, sublicenses, distributor agreements and other agreements under which the 

  

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Company or any of its Subsidiaries is either a licensor, licensee or distributor, except such licenses, sublicenses and other agreements relating to
off-the-shelf software which is commercially available on a retail basis and used solely on the computers of the Company or its Subsidiaries (collectively, the “IP Agreements”). The Company and each of its Subsidiaries is not, nor to the
Knowledge of the Company is any other party thereto, in breach of or default thereunder in any respect, nor is there any event which with notice or lapse of time or both would constitute a default thereunder. All of the IP Agreements are valid,
enforceable and in full force and effect, and will continue to be so on identical terms immediately following the Closing except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
transfer, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general principles of equity relating to enforceability (regardless of whether considered in a proceeding at law or in equity). 
  
 (iv) To the Knowledge of the Company, none of the
Intellectual Property currently sold or licensed by the Company or any of its Subsidiaries to any Person or used by or licensed to the Company or any of its Subsidiaries by any Person infringes upon or otherwise violates any Intellectual Property
rights of others, except as could not reasonably be expected to have a material adverse effect on the Condition of the Company. 
  
 (b) No litigation is pending and no Claim has been made against the Company or any of its Subsidiaries or, to the Knowledge of the Company, is threatened,
contesting the right of the Company or any of its Subsidiaries to sell or license to any Person or use the Intellectual Property presently sold or licensed to such Person or used by the Company or any of its Subsidiaries. To the Knowledge of the
Company, no Person is infringing upon or otherwise violating the Intellectual Property rights of the Company or any of its Subsidiaries. 
  
 (c) No former employer of any employee of the Company or any of its Subsidiaries has made a claim against the Company or any of its Subsidiaries or, to
the Knowledge of the Company, against any other Person, that such employee or such consultant is utilizing Intellectual Property of such former employer. 
  
 (d) To the Knowledge of the Company, none of the trade secrets, wherever located, the value of which is contingent upon maintenance of confidentiality
thereof, has been disclosed to any Person other than employees, representatives and agents of the Company or any of its Subsidiaries, except as required pursuant to the filing of a patent application by the Company or any of its Subsidiaries.

  
 (e) It is not necessary for the business of the Company or any
of its Subsidiaries to use any Intellectual Property owned by any director, officer, employee or consultant of the Company or any of its Subsidiaries (or persons the Company or any of its Subsidiaries presently intends to hire). To the
Company’s Knowledge, at no time during the conception or reduction to practice of any of the Intellectual Property of the Company or any of its Subsidiaries was any developer, inventor or other contributor to such Intellectual Property
operating under any grants from any Governmental Authority or subject to any employment agreement, invention 

  

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assignment, nondisclosure agreement or other Contractual Obligation with any Person that could materially adversely affect the rights of the Company or any
of its Subsidiaries to its Intellectual Property. 
  
 2.18
Potential Conflicts of Interest To the Knowledge of the Company based upon the officers and directors questionnaires distributed and completed in connection with the Company’s 2003 Proxy Statement, no officer, director or stockholder
beneficially owning more than 5% of the outstanding shares of Common Stock of the Company, no spouse of any such officer, director or stockholder, and no affiliate (as defined in Rule 12b-2 of the Exchange Act) of any of the foregoing (a) owns,
directly or indirectly, any interest in (excepting less than one percent (1%) stock holdings for investment purposes in securities of publicly held and traded companies), or is an officer, director, employee or consultant of, any Person which is, or
is engaged in business as, a competitor, lessor, lessee, supplier, distributor, or customer of, or lender to or borrower from, the Company or any of its Subsidiaries; (b) owns, directly or indirectly, in whole or in part, any tangible or intangible
property that the Company or any of its Subsidiaries use, in the conduct of business; or (c) has any cause of action or other claim whatsoever against, or owes or has advanced any amount to, the Company, except for claims in the ordinary course of
business such as for accrued vacation pay, accrued benefits under employee benefit plans, and similar matters and agreements existing on the date hereof. 
  
 2.19 Trade Relations There exists no actual or, to the Knowledge of the Company, threatened termination, cancellation or limitation of, or any
material adverse modification or change in, the business relationship of the Company or any of its subsidiaries, or the business of the Company or any of its subsidiaries, with any customer or supplier or any group of customers or suppliers whose
purchases or inventories provided to the business of the Company or any of its subsidiaries are individually or in the aggregate material to the Condition of the Company. 
  
 2.20 Outstanding Borrowing The SEC Reports set forth the amount of all indebtedness of the Company and each of its
Subsidiaries as of March 31, 2003, which, except for accounts payable incurred in the ordinary course of business has not changed materially through the Effective Date. No indebtedness is entitled to any voting rights in any matters voted upon by
the holders of the Common Stock. 
  
 2.21 Broker’s,
Finder’s or Similar Fees Except for fees payable and Company warrants issuable to the Placement Agents, there are no brokerage commissions, finder’s fees or similar fees or commissions payable by the Company or any of its Subsidiaries
in connection with the transactions contemplated hereby based on any agreement, arrangement or understanding with the Company or any of its Subsidiaries or any action taken by any such Person. 
  
 2.22 Disclosure This Agreement, the SEC Reports, the Company’s
press release dated July 16, 2003, and the documents and certificates furnished to the Investors by the Company do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
contained herein or therein, in the light of the circumstances under which they were made, not misleading. 
  

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 2.23 Insurance The Company maintains insurance of the types, against such losses and in amounts
and with such insurers as are customary in the Company’s industry and otherwise reasonably prudent, including, but not limited to, insurance covering all real property owned and leased by the Company against theft, damage, destruction, and
other risks customarily insured by similarly situated companies. 
  
 2.24 Form S-3 Eligibility As of the date hereof, the Company meets the requirements for the use of Form S-3 for registration of resale of the Shares and Warrant Shares as contemplated herein. 
  
 3. Representations and Warranties of the Investors Each Investor
hereby represents and warrants to the Company that, as of the Effective Date and solely as to such Investor: 
  
 3.1 Authorization The Investor has all requisite corporate power and authority to enter into this Agreement and that this Agreement constitutes a
valid and legally binding obligation of the Investor, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting the enforcement of creditors’ rights generally, (b) as
limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and (c) to the extent the indemnification provisions contained in this Agreement may be limited by applicable federal or state
securities laws. 
  
 3.2 Purchase Entirely for Own Account
The Shares and Warrants to be purchased by the Investor, and the Warrant Shares which the Investor may purchase upon exercise of the Warrant (collectively the “Securities”), will be acquired for investment for the Investor’s own
account, and not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and the Investor has no present intention of selling, granting any participation in, or otherwise distributing the same. The Investor is
not a party to any contract, undertaking, agreement or arrangement with any person to sell, transfer or otherwise dispose of any of the Securities. 
  
 3.3 Reliance Upon Investor’s Representations The Investor understands that the issuance and sale of the Securities to it will not be
registered under the Securities Act on the ground that such issuance and sale will be exempt from registration under the Securities Act pursuant to section 4(2) thereof, and that the Company’s reliance on such exemption is based on each
Investor’s representations set forth herein. The Investor realizes that the basis for the exemption may not be present if, notwithstanding such representations, any Investor has in mind merely acquiring the Securities for a fixed or
determinable period in the future, or for a market rise, or for sale if the market does not rise. Such Investor has no such present intention. 
  
 3.4 Receipt of Information The Investor has had an opportunity to ask questions and receive answers from the Company regarding the terms and
conditions of the issuance and sale of the Shares and Warrant and the business, properties, prospects and financial condition of the Company and to obtain additional information (to the extent the Company possessed such information or could acquire
it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it or to which it had access. The foregoing, however, does not limit or modify the representations and warranties of the Company in Section 2
of this 

  

 -11- 

 
Agreement or the right of the Investor to rely thereon. No person other than the Company has been authorized to give any information other than the PPM or to
give any representation not contained in this Agreement in connection with the Offering and, if given or made, such information or representation must not be relied upon as having been authorized by the Company. 
  
 3.5 Investment Experience The Investor is experienced in evaluating
and investing in securities of companies and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and has such knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of the investment in the Securities. 
  
 3.6
Accredited Investor The Investor is an “accredited investor” as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, for the reason indicated on the signature page of this Agreement. 
  
 3.7 Restricted Securities The Investor understands that the Securities
may not be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the Securities or an available exemption from
registration under the Securities Act, the Securities must be held indefinitely. In particular, the Investor is aware that the Securities may not be sold pursuant to Rule 144 promulgated under the Securities Act unless all of the conditions of that
Rule are met. Among the conditions for use of Rule 144 is the availability of current information to the public about the Company. 
  
 3.8 Legends To the extent applicable, each certificate or other document evidencing any of the Securities shall be endorsed with the legends set
forth below, and the Investor covenants that, except to the extent such restrictions are waived by the Company, the Investor shall not transfer the shares represented by any such certificate without complying with the restrictions on transfer
described in the legends endorsed on such certificate: 
  
 (a)
The following legend under the Act: 
  
 “THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED OR QUALIFIED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, OFFERED FOR SALE, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR ELSE UPON AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO CALIFORNIA MICRO DEVICES CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT OR ANOTHER APPLICABLE EXEMPTION.” 
  
 (b) Such other legends as may be required under state securities laws. 
  

 -12- 

 3.9 Broker’s, Finder’s or Similar Fees There are no brokerage commissions, finder’s
fees or similar fees or commissions payable by the Investor in connection with the transactions contemplated hereby based on any agreement, arrangement or understanding with the Investor or any action taken by any such Person. 
  
 4. Registration of the Shares; Compliance with the Securities Act.

  
 4.1 Registration Procedures and Expenses The Company
hereby agrees that it shall: 
  
 (a) subject to receipt of
necessary information from the Investors, prepare and file with the SEC on or before the date one month after the Closing Date a registration statement on Form S-3 (the “Registration Statement”) to enable the resale of the Shares and the
Warrant Shares by the Investors and use reasonable best efforts to respond to comments from the SEC promptly and cause such Registration Statement to be declared effective as promptly as practicable after filing and to remain continuously effective
until the earlier of (i) the second anniversary of the Closing, or (ii) such time as all Shares purchased by the Investors pursuant to this Agreement have been sold thereunder (the “Registration Period”). For each full calendar month after
the First Closing that the Registration Statement is not filed with the SEC, each Investor shall be paid an amount in cash equal to one and one-half percent (1.5%) of the product of the Purchase Price times the number of Shares originally acquired
by such Investor. For each full calendar month after the First Closing, starting with three (3) months after the First Closing and ending with twenty-four (24) months after the First Closing, that the Registration Statement is not declared effective
by the SEC, each Investor shall be paid an amount, in cash equal to one and one-half percent (1.5%) of the product of the Purchase Price times the number of Shares originally acquired by such Investor. Each such payment shall be made within fifteen
days of when the payment obligation accrued. 
  
 (b) prepare and
file with the SEC such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement effective until the end of the Registration Period; 
  
 (c) notify Investors promptly upon the effectiveness of the Registration
Statement and furnish to the Investors with respect to the shares of Common Stock registered under the Registration Statement such reasonable number of copies of the Registration Statement, prospectuses and preliminary prospectuses in conformity
with the requirements of the Securities Act and such other documents as the Investor may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Shares or Warrant Shares by the Investor; 
  
 (d) file documents required of the Company for normal blue sky clearance in
states specified in writing by the Investor, provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented;

  
 (e) use its reasonable best efforts to cause the Shares and
Warrant Shares to be listed on Nasdaq in connection with the filing of the Registration Statement under Section 4.1(a); 
  
 (f) bear all expenses in connection with the procedures in paragraph (a) through (e) of this Section 4.1 and the registration of the Shares and the
Warrant Shares pursuant to the 

  

 -13- 

 
Registration Statement other than fees and expenses, if any, of counsel or other advisers to the Investors or underwriting discounts, brokerage fees and
commissions incurred by the Investors, if any. 
  
 (g) provide
that all Shares and Warrant Shares covered by the Registration Statement will be listed on the Nasdaq National Market or other securities market on which the Company’s Common Stock is then listed or traded. 
  
 It shall be a condition precedent to the obligations of the Company to take
any action pursuant to this Section 4.1 that the Investor shall furnish to the Company such information regarding itself, the shares of Common Stock to be sold by the Investor, and the intended method of disposition of such securities as shall be
required to effect the registration of the Shares and the Warrant Shares. 
  
 4.2 Transfer of Shares After Registration; Suspension 
  
 (a) Subject to Section 4.4, the Investors agree that they will not offer to sell, solicit offers to buy, dispose of, loan, pledge or grant any right (each, a “Disposition”) with respect to the Securities
that would constitute a sale within the meaning of the Securities Act except pursuant to the Registration Statement referred to in Section 4.1, and that they will promptly notify the Company of any changes in the information set forth in the
Registration Statement after it is prepared regarding the Investor or its plan of distribution. 
  
 (b) In addition to any suspension rights under paragraph (c) below, the Company may, upon the happening of any event, that, in the good faith judgment of
Company’s board of directors upon the opinion of counsel, renders it advisable to suspend use of the prospectus for no more than sixty (60) days in the aggregate in any twelve (12) month period of time due to pending corporate developments,
public filings with the SEC or similar events, suspend use of the prospectus on written notice to each Investor, in which case each Investor shall discontinue disposition of Shares or the Warrant Shares covered by the Registration Statement or
prospectus until copies of a supplemented or amended prospectus are distributed to the Investors or until the Investors are advised in writing by the Company that the use of the applicable prospectus may be resumed. 
  
 (c) Subject to paragraph (d) below, in the event of: (i) any request by the
SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to a Registration Statement or related prospectus or for additional information, (ii) the
issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of a Registration Statement or the initiation of any proceedings for that purpose, (iii) the receipt by the Company of any
notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares or the Warrant Shares for sale in any jurisdiction or the initiation of any proceeding for such purpose, (iv) any event or
circumstance which necessitates the making of any changes in the Registration Statement or prospectus, or any document incorporated or deemed to be incorporated therein by reference, so that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or any omission to state a material fact required to be stated therein or necessary to make the statements therein 

  

 -14- 

 
not misleading, and that in the case of the prospectus, it will not contain any untrue statement of a material fact or any omission to state a material fact
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, then the Company shall deliver a certificate in writing to the Investors (the “Suspension
Notice”) to the effect of the foregoing and, upon receipt of such Suspension Notice, the Investors will refrain from selling any Shares or Warrant Shares pursuant to the Registration Statement (a “Suspension”) until the
Investors’ receipt of copies of a supplemented or amended prospectus prepared and filed by the Company, or until it is advised in writing by the Company that the current prospectus may be used, and has received copies of any additional or
supplemental filings that are incorporated or deemed incorporated by reference in any such prospectus. In the event of any Suspension, the Company will use its reasonable best efforts to cause the use of the prospectus so suspended to be resumed as
soon as possible within twenty (20) business days after delivery of a Suspension Notice to the Investors. In addition to and without limiting any other remedies (including without limitation at law or equity), available to the Investors, the
Investors shall be entitled to specific performance in the event the Company fails to comply with the provisions of this Section 4.2(c). 
  
 (d) Provided that a Suspension is not then in effect, the Investors may sell Shares or Warrant Shares under the Registration Statement, provided that the
selling Investor arranges for delivery of a current prospectus to the transferee of such Shares or Warrant Shares. 
  
 (e) In the event of a sale of Shares or Warrant Shares by an Investor, such Investor must also deliver to the Company’s transfer agent, with a copy
to the Company, a Certificate of Subsequent Sale substantially in the form attached hereto as Exhibit B, so that ownership of the Shares or Warrant Shares may be properly transferred. 
  
 (f) For so long as the Company will have a class of securities registered
under Section 12(b) or Section 12(g) of the Exchange Act, the Company covenants that it will file, on a timely basis, any reports required to be filed by it under the Exchange Act and the rules and regulations adopted by the SEC thereunder and keep
all such reports and public information current to the extent required by Rule 144 under the Securities Act for a period of two (2) years after the Closing. 
  
 4.3 Indemnification For the purpose of this Section 4.3 only, (i) the term “Registration Statement” shall include any final prospectus,
exhibit, supplement or amendment included in or relating to the Registration Statement referred to in Section 4.1(a); and (ii) the term “untrue statement” shall include any untrue statement or any omission to state in the Registration
Statement a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
  
 (a) The Company agrees to indemnify and hold harmless each Investor (and each person, if any, who controls such Investor
within the meaning of section 15 of the Securities Act) from and against any losses, claims, damages or liabilities to which such Investor (or such person, if any, who controls such Investor within the meaning of section 15 of the Securities Act)
may become subject (under the Securities Act or otherwise) insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based 

  

 -15- 

 
upon (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or (ii) any failure by the Company to
fulfill any undertaking included in the Registration Statement, and the Company will reimburse such Investor (and each person, if any, who controls such Investor within the meaning of section 15 of the Securities Act) for any reasonable legal or
other expenses reasonably incurred in investigating, defending or preparing to defend any such action, proceeding or claim; provided, however, that the Company shall not be liable in any such case to the extent that such loss, claim, damage or
liability arises out of, or is based upon, an untrue statement made in such Registration Statement in reliance upon and in conformity with written information furnished to the Company by or on behalf of such Investor specifically for use in
preparation of the Registration Statement or the failure of such Investor to comply with its covenants and agreements contained in Section 3 or 4.2 hereof or any statement or omission in any prospectus that is corrected in any subsequent prospectus
that was delivered to the Investor prior to the pertinent sale or sales by the Investor. 
  
 (b) Each Investor agrees to indemnify and hold harmless the Company (and each person, if any, who controls the Company within the meaning of section 15 of the Securities Act, each officer of the Company who signs the
Registration Statement and each director of the Company) and each other Investor from and against any losses, claims, damages or liabilities to which the Company (or any such officer, director or controlling person) or other Investor may become
subject (under the Securities Act or otherwise), insofar as such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise out of, or are based upon a breach of its covenants and agreements contained in Section 3 or
4.2 hereof or any statement or omission in any prospectus that is corrected in any subsequent prospectus that was delivered to the Investor prior to the pertinent sale or sales by the Investor or any untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement if such untrue statement was made in reliance upon and in conformity with information furnished by or on behalf of the indemnifying Investor in writing specifically for use in preparation of the
Registration Statement, and the indemnifying Investor will reimburse the Company (or such officer, director or controlling person) or other Investor, as the case may be, for any legal or other expenses reasonably incurred in investigating, defending
or preparing to defend any such action, proceeding or claim; providing further that, the Investor’s obligations to indemnify under this subsection (b) shall be limited to the amount received by the Investor from the sale of the Investor’s
Shares hereunder. 
  
 (c) Promptly after receipt by any
indemnified person of a notice of a claim or the beginning of any action in respect of which indemnity is to be sought against an indemnifying person pursuant to this Section 4.3, such indemnified person shall notify the indemnifying person in
writing of such claim or of the commencement of such action, but the omission to so notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under this Section 4.3 (except to the extent that
such omission materially and adversely affects the indemnifying party’s ability to defend such action) or from any liability otherwise than under this Section 4.3. Subject to the provisions hereinafter stated, in case any such action shall be
brought against an indemnified person, the indemnifying person shall be entitled to participate therein, and, to the extent that it shall elect by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from
such indemnified party, shall be entitled to assume the defense thereof, with counsel reasonably satisfactory to such indemnified person. After notice from the indemnifying person to such indemnified person of its 

  

 -16- 

 
election to assume the defense thereof, such indemnifying person shall not be liable to such indemnified person for any legal expenses subsequently incurred
by such indemnified person in connection with the defense thereof. In no event shall any indemnifying person be liable in respect of any amounts paid in settlement of any action unless the indemnifying person shall have approved the terms of such
settlement; provided that such consent shall not be unreasonably withheld. No indemnifying person shall, without the prior written consent of the indemnified person, effect any settlement of any pending or threatened proceeding in respect of which
any indemnified person is or could have been a party and indemnification could have been sought hereunder by such indemnified person, unless such settlement includes an unconditional release of such indemnified person from all liability on claims
that are the subject matter of such proceeding. 
  
 (d) If the
indemnification provided for in this Section 4.3 is unavailable to or insufficient to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions or proceedings in respect
thereof) referred to therein, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative fault of the Company on the one hand and the Investors on the other in connection with the statements or omissions or other matters which resulted in such losses, claims, damages or liabilities (or actions in
respect thereof), as well as any other relevant equitable considerations. The relative fault shall be determined by reference to, among other things, in the case of an untrue statement, whether the untrue statement relates to information supplied by
the Company on the one hand or an Investor on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement. The Company and the Investors agree that it would not be
just and equitable if contribution pursuant to this subsection (d) were determined by pro rata allocation (even if the Investors were treated as one entity for such purpose) or by any other method of allocation which does not take into account the
equitable considerations referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d)
shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this subsection (d), no Investor shall be
required to contribute any amount in excess of the amount by which the gross amount received by the Investor from the sale of the Shares to which such loss relates exceeds the amount of any damages which such Investor has otherwise been required to
pay by reason of such untrue statement. No person guilty of fraudulent misrepresentation (within the meaning of section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Investors’ obligations in this subsection to contribute are several in proportion to their sales of Shares to which such loss relates and not joint. 
  
 4.4 Termination of Conditions and Obligations The conditions precedent imposed by Section 4 upon the transferability
of the Shares and the shares of Common Stock underlying the Warrants shall cease and terminate as to any particular number of the shares of Common Stock when such shares shall have been effectively registered under the Securities Act and sold or
otherwise disposed of in accordance with the intended method of disposition set forth in the Registration Statement covering such shares or at such time as an opinion of counsel or other evidence reasonably satisfactory to the Company shall have
been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act. 
  

 -17- 

 5. Conditions of each Investor’s Obligations at Closing The obligations of each Investor
under subparagraph 1.1 of this Agreement are subject to the fulfillment on or before the Closing of each of the following conditions, the waiver of which shall not be effective against any Investor who does not consent in writing thereto:

  
 5.1 Representations and Warranties The representations
and warranties of the Company contained in Section 2 shall be true and correct on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the date of the Closing. 
  
 5.2 Performance The Company shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement that are required to be performed or complied with on or before the Closing. 
  
 5.3 Compliance Certificate The Chief Executive Officer of the Company shall have delivered to the Investor at the Closing a certificate certifying
that the conditions specified in Sections 5.1, 5.2 and 5.4 have been fulfilled. 
  
 5.4 Qualifications All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of any state that are required in connection with the lawful
issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing. The Company shall have obtained all necessary blue sky permits and qualifications, or have the availability of exemptions
therefrom, required by any state for the offer and sale of the Shares and the Warrants. 
  
 5.5 Opinion of Counsel Investors shall have received the opinion of Pillsbury Winthrop LLP, counsel to the Company, in substantially the form of Exhibit C, attached hereto. 
  
 6. Conditions of the Company’s Obligations at Closing The
obligations of the Company to each Investor under this Agreement are subject to the fulfillment (or waiver) on or before the Closing of each of the following conditions by the Investor: 
  
 6.1 Representations and Warranties The representations and warranties of such Investor contained in Section 3 shall
be true on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing. 
  
 6.2 Qualifications All authorizations, approvals or permits, if any, of any governmental authority or regulatory body of the United States or of
any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this Agreement shall be duly obtained and effective as of the Closing. 
  
 7. Miscellaneous 
  
 7.1 Entire Agreement This Agreement and the documents referred to herein and all Schedules and Exhibits thereto constitute the entire agreement
among the parties and no party shall be liable or bound to any other party in any manner by any warranties, representations or covenants except as specifically set forth herein or therein. 
  

 -18- 

 7.2 Survival The parties agree that, regardless of any investigation made by the parties, the
warranties, representations and covenants of the Company and the Investors contained in or made pursuant to this Agreement (including, without limitation, the provisions of Section 4) shall survive the execution and delivery of this Agreement and
the Closing. 
  
 7.3 Successors and Assigns Except as
otherwise provided herein, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties (including permitted transferees of any Securities). Nothing in this
Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly
provided in this Agreement. 
  
 7.4 Governing Law This
Agreement shall be governed by and construed under the laws of the State of California as applied to agreements among California residents entered into and to be performed entirely within California. 
  
 7.5 Counterparts This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 7.6 Titles and Subtitles The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing
or interpreting this Agreement. 
  
 7.7 Notices Unless
otherwise provided, any notice required or permitted under this Agreement shall be given in writing and shall be deemed given and effective when delivered personally, by telex or telecopier, or by overnight express at the following addresses or to
such other address as such party may designate by written notice to the other party in accordance with the provisions of this Section: 
  

	 If to the Company:
	  	 California Micro Devices Corporation
 430 N. McCarthy Blvd, No. 100
 Milpitas, CA 95035-5112
 Attention: Robert V. Dickinson
 Fax: (408) 934-2990

		
	 With a copy to:
	  	 Pillsbury Winthrop LLP
 2550 Hanover Street
 Palo Alto, CA 94304
 Attention: Stephen M. Wurzburg
 Fax: (650) 233-4545

		
	 If to an Investor:
	  	 See the signature pages hereto

  
 7.8 Expenses
Except as set forth herein, each party will bear its own expenses related to this Agreement and the transactions contemplated therein. The Company shall pay the 

  

 -19- 

 
reasonable fees and expenses of counsel to Special Situations Funds not to exceed $10,000; provided that if there is no First Closing, then such payment
shall only be made as required by the July 24, 2003, Term Sheet. Such expenses shall be paid not later than two (2) business days after receipt of an invoice after the First Closing. The Company shall reimburse the Investors upon demand for all
reasonable out-of-pocket expenses incurred by the Investors, including without limitation reimbursement of attorneys’ fees and disbursements, in connection with any amendment, modification or waiver of this Agreement. 
  
 7.9 Attorneys’ Fees If any action at law or in equity is
necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be entitled. 
  
 7.10 Amendments and Waivers Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the holders of more than a majority of the
Shares sold hereunder and the shares, if any, sold under similar agreements proximate in time to the Closing, provided that this Agreement and all agreements under which such other shares were sold under shall be amended identically or the
observance of an identical term waived identically, as the case may be. 
  
 7.11 Severability If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such
provision were so excluded and shall be enforceable in accordance with its terms. 
  

 -20- 

 7.12 Rights of the Investor Each Investor shall have the absolute right to exercise or refrain
from exercising any right or rights that such holder may have by reason of this Agreement or any Shares or Warrants, including without limitation the right to consent to the waiver of any obligation of the Company under this Agreement and to enter
into an agreement with the Company for the purpose of modifying this Agreement or any agreement effecting any such modification, and such Investor shall not incur any liability to any other Investor with respect to exercising or refraining from
exercising any such right or rights. 
  
 7.13 Conflict of
Interest Waiver Each party to this Agreement acknowledges that Pillsbury Winthrop LLP (“PW”), counsel for the Company, may have in the past and may continue in the future to perform legal services for certain of the Investors in
matters unrelated to the transactions described in this Agreement, including the representation of such Investors in formation of other companies, venture capital financings, and other matters. Accordingly, each party to this Agreement hereby (a)
acknowledges that they have had an opportunity to ask for information relevant to this disclosure; (b) acknowledges that PW represented the Company in the transaction contemplated by this Agreement and has not represented any individual Investor or
any individual stockholder or employee of the Company in connection with such transaction, and (c) gives its informed consent to PW’s representation of certain of the Investors in such unrelated matters and to PW’s representation of the
Company in connection with this Agreement and the transactions contemplated hereby and in other matters. 
  
 7.14 Press Release/Form 8-K The Company agrees to issue a press release regarding the First Closing no later than the opening of the stock market
on August 1, 2003, and to issue a press release concerning the Second Closing no later than the opening of the stock market on the first business day after the Second Closing and to file a Form 8-K with the SEC prior to the closing of the stock
market on the first business day after the press release, each describing the critical features of the sale of the Shares and Warrants under this Agreement, with the press release issued for the First Closing, if it does not also cover the Second
Closing, to comply with SEC Rule 135c. 
  
 [REMAINDER OF PAGE
INTENTIONALLY BLANK] 
  

 -21- 

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

  

	 CALIFORNIA MICRO DEVICES CORPORATION

		
	 By
	 	  

	 	 	Robert V. Dickinson
	 	 	President and Chief Executive Officer

  
 INVESTOR
SIGNATURE PAGES TO FOLLOW 
  

 -22- 

 SIGNATURE PAGE TO 
  
 STOCK AND WARRANT PURCHASE AGREEMENT 
  
 DATED AS OF JULY 28, 2003 
  
 BY AND AMONG 
  
 CALIFORNIA MICRO DEVICES CORPORATION 
  
 AND EACH INVESTOR NAMED THEREIN 
  
 The undersigned hereby executes and delivers the California Micro Devices Corporation Stock and Warrant Purchase Agreement (the “Agreement”) to
which this Signature Page is attached effective as of the date of the Agreement, which Agreement and Signature Page, together with all counterparts of such signature pages of the other Investors named in such Agreement, shall constitute one and the
same document in accordance with the terms of such Agreement. 
  

	 Number of Shares:
	 	  

	
	  

	Print Name of Investor
	 By
	 	  

	 	 	Signature
	 Address:
	 	  

	 	 	 	 	  

	 	 	 	 	  

	 Taxpayer Identification Number :
	 	  

  

	 Investor is an “accredited investor” by reason of (check one):

	  	 
		
	 Investor is an entity with gross assets in excess of $5,000,000.
	  	  

	 Investor is an individual with a net worth in excess of $1,000,000
	  	  

	 Investor is an individual and an Officer or Director of the Company
	  	  

  
  

 -23- 

 SCHEDULE A 
  

INVESTORS 
  
 FIRST CLOSING 
  

	 Investor Name

	  	Number of Shares
Purchased from
Company

	  	Investment In Dollars

	 Special Situations Fund III, L.P.
	  	933,400	  	$	2,100,150.00
	 Special Situations Private Equity Fund, L.P.
	  	533,300	  	 	1,199,925.00
	 Special Situations Cayman Fund, L.P.
	  	311,100	  	 	699,975.00
	 Jon D. Gruber TTEE FBO Jonathan Wyatt Gruber Trust D+D 12/30/75
	  	11,111	  	 	24,999.75
	 Jon D. Gruber TTEE FBO Lindsay DeRoy Gruber Trust D+D 12/29/76
	  	11,111	  	 	24,999.75
	 Jon D. Gruber & Linda W. Gruber
	  	44,444	  	 	99,999.00
	 Gruber & McBaine International
	  	111,111	  	 	249,999.75
	 Lagunitas Partners, LP
	  	266,667	  	 	600,000.75
			
	 TOTAL
	  	2,222,244	  	$	5,000,049.00
			
	SECOND CLOSING	  	 	  	 	 
	 Investor Name

	  	Number of Shares
Purchased from
Company

	  	Investment In Dollars

	 The Millrace Fund
	  	222,000	  	$	499,500
	 TOTAL
	  	222,000	  	$	499,500
			
	 GRAND TOTAL
	  	2,444,244	  	$	5,499,549

  
  

 SA-1 

 EXHIBIT A 
  

FORM OF WARRANT 
  

 A-1 

 THIS WARRANT AND THE SHARES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. SUCH SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE
MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. 
  
 No. W-         
  
 WARRANT TO PURCHASE COMMON STOCK 
 OF

 CALIFORNIA MICRO DEVICES CORPORATION 
  
 This certifies that, for value received as provided under a Stock and Warrant Purchase Agreement dated July     , 2003 (the
“Purchase Agreement”),                                 
(“Holder”) is entitled, subject to the terms and conditions set forth below, to purchase from California Micro Devices Corporation, a California corporation (the “Company”), in whole or in part, such number of fully paid and
nonassessable shares (the “Warrant Shares”) of no par value common stock of the Company (“Common Stock”) equal to three-tenths (0.30) of the number of shares of Common Stock purchased by Holder pursuant to the Purchase Agreement
(the “Warrant Shares”) at the Exercise Price (as defined in Section 2). The number, character and Exercise Price of such shares of Common Stock are subject to adjustment as provided below and all references to “Warrant Shares”
and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments. The term “Warrant” as used herein shall mean this Warrant, and any warrants delivered in substitution or exchange therefor as
provided herein. 
  
 1. Term of Warrant. Subject to the
terms and conditions set forth herein, this Warrant shall be exercisable, in whole or in part, during the term commencing on the date hereof and ending at 5:00 p.m., Pacific standard time, on the fifth anniversary of issue, and shall be void
thereafter (the “Exercise Period”). This Warrant shall expire prior to the end of Exercise Period if and when it has been exercised in full. 
  
 2. Exercise Price. The Exercise Price shall be $3.00. 
  
 3. Exercise of Warrant. This Warrant may be exercised by the Holder only by the surrender of this Warrant to the Company, with the Notice of
Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder appearing on the books of the Company)
during the Exercise Period, and the delivery of payment to the Company, for the account of the Company, by cash, wire transfer of immediately available funds to a bank account specified by the Company, or by certified or bank cashier’s check,
of the Exercise Price for the number of Warrant Shares specified in the Exercise Notice in lawful money of the United States of America. 
  

 -1- 

 The Company agrees that such Warrant Shares shall be deemed to be issued to the Holder as the record
holder of such Warrant Shares as of the close of business on the date on which this Warrant shall have been surrendered and payment made for the Warrant Shares as aforesaid. A stock certificate or certificates for the Warrant Shares specified in the
Exercise Form shall be delivered to the Holder as promptly as practicable, and in any event within ten (10) days, thereafter. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the stock certificate
or certificates, deliver to the Holder a new Warrant evidencing the rights to purchase the remaining Warrant Shares, which new Warrant shall in all other respects be identical with this Warrant. No adjustments shall be made on Warrant Shares
issuable on the exercise of this Warrant for any cash dividends paid or payable to holders of record of Common Stock prior to the date as of which the Holder shall be deemed to be the record holder of such Warrant Shares. The Company shall pay all
expenses, taxes, and other charges payable in connection with the preparation, execution, and delivery of stock certificates pursuant to this Section 3. 
  
 4. No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.
In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash payment equal to the Exercise Price multiplied by such fraction. 
  
 5. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation
of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount. 
  
 6. Rights of Shareholder. Subject to Sections 9 and 11 of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed
the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a
shareholder of the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of
stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance of assets, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until
the Warrant shall have been exercised as provided herein. 
  
 7.
Transfer of Warrant. 
  
 A. Warrant Register. The
Company will maintain a register (the “Warrant Register”) containing the names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion thereof may change his address as shown on the Warrant Register by written
notice to the Company requesting such change. Any notice or written communication required or permitted to be given to the Holder may be delivered or given by mail to such Holder as shown on the Warrant Register and at the address shown on the
Warrant Register. Until this 

  

 -2- 

 
Warrant is transferred on the Warrant Register of the Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of
this Warrant for all purposes, notwithstanding any notice to the contrary. 
  
 B. Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of maintaining the Warrant Register referred to in Section 7(A) above, issuing the Warrant Shares or other
securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing. Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at
the office of such agent. 
  
 C. Transferability and
Nonnegotiability of Warrant. This Warrant may be transferred to “affiliates” of the Holder, as defined in Rule 405, as promulgated by the Securities and Exchange Commission (the “SEC”) and, with the prior written consent of
the Company, to other persons, provided that such transferee agrees to be bound by the other restrictions on transfer applicable to the Warrant Shares. Notwithstanding the foregoing, this Warrant may not be transferred or assigned in whole or in
part without compliance with all applicable federal and state securities laws by the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are
requested by the Company). However, no investment representation letter or opinion of counsel shall be required for any transfer of this Warrant (or any portion thereof) or any shares of Common Stock issued upon exercise hereof in compliance with
Rule 144(k) and no opinion of counsel shall be required for any transfer of this Warrant (or any portion thereof) in compliance with Rule 144A; provided that in each of the foregoing cases the transferee agrees in writing to be subject to the terms
of this Section 7(C). Subject to the provisions of this Warrant with respect to compliance with the Securities Act of 1933, as amended (the “Act”), title to this Warrant may be transferred by endorsement (by the Holder executing the
Assignment Form annexed hereto) and delivery in the same manner as a negotiable instrument transferable by endorsement and delivery. 
  
 D. Exchange of Warrant Upon a Transfer. On surrender of this Warrant for transfer, properly endorsed on the Assignment Form and subject to the
provisions of this Warrant with respect to compliance with the Act and with the limitations on assignments and transfers and contained in this Section 7, the Company at its expense shall issue to or on the order of the Holder a new warrant or
warrants of like tenor, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof. 
  
 E. Compliance with Securities Laws. 
  
 i. The Holder of this Warrant, by acceptance hereof,
represents that it is an “accredited investor” within the meaning of Rule 501 of Regulation D of the Securities Act of 1933, as amended, as presently in effect. 
  
 ii. The Holder acknowledges that this Warrant is being, and the Warrant Shares would be, acquired solely for
the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise 

  

 -3- 

 
dispose of this Warrant or any Warrant Shares except under circumstances that will not result in a violation of the Act or any applicable state securities
laws. Upon exercise of this Warrant, the Holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the Warrant Shares are being acquired solely for the Holder’s own account and not as a nominee
for any other party, for investment, and not with a view toward distribution or resale. 
  
 iii. This Warrant and Warrant Shares shall be stamped or imprinted with a legend in substantially the following form (in addition to any
legend required by state securities laws): 
  
 THIS WARRANT AND
THE SHARES ISSUABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. SUCH SECURITIES MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT.
COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE
OFFICES. 
  
 The Company agrees to remove
promptly, upon the request of the holder of this Warrant or the Warrant Shares, the legend set forth in Section 7(E)(iii) above from the documents/certificates for such securities upon full compliance with this Agreement and either Rule 144(k) or
after a sale in the public market in compliance with Rule 144. 
  
 8. Reservation of Stock. The Company covenants that during the term this Warrant is exercisable, the Company will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the
Warrant Shares and, from time to time, will take all steps necessary to amend its Articles of Incorporation to provide sufficient reserves of shares of Common Stock for the issuance of the Warrant Shares. The Company further covenants that all
Warrant Shares, upon exercise of this Warrant and payment of the Exercise Price, all as set forth herein, will be free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously or otherwise specified herein). 
  
 9.
Notices. 
  
 A. In case: 
  
 i. the Company shall take a record of the holders of its
Common Stock for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; 
  
 ii. of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into 

  

 -4- 

 
another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation; or 
  
 iii. of any voluntary dissolution, liquidation or winding-up
of the Company; 
  
 then, and in each such case, the Company will mail or cause to
be mailed to the Holder or Holders a notice specifying, as the case may be, (A) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or
right, or (B) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation, or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common
Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be
mailed no later than the time similar notice is mailed to the holders of Company Common Stock. 
  
 B. All such notices, advices and communications as required by the terms of this Warrant shall be made and be deemed to have been received (i) in the case of personal delivery, on the date of such delivery, (ii) in
the case of next day courier service such as Federal Express, one business day after it is delivered to the courier service for US addresses and two business days for foreign addresses, and (iii) in the case of mailing by certified mail, on the
third (3rd) business day following the date of such mailing if sent to a U.S. address and on the tenth (10th) business day following the date of such mailing if sent to an address outside the U.S. 
  
 10. Amendments. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the Company or the Holder of the Warrant against which enforcement of such change, waiver, discharge or termination is sought. An amendment of rights, preferences, or
privileges of the Common Stock, including a change in the par value of the Common Stock; an event described in Section 9A or 11A of this Warrant; or any other like action shall not be treated as an amendment of this Warrant. 
  
 11. Adjustments. The Exercise Price and the number of shares
purchasable hereunder are subject to adjustment from time to time as follows: 
  
 A. Reclassification, etc. If the Company, at any time while this Warrant, or any portion thereof, remains outstanding and unexpired, by reorganization or reclassification of securities or otherwise, shall
change any of the securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of
securities as would have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such reorganization or reclassification or other change and the
Exercise Price therefor shall be appropriately adjusted, all subject to further adjustment as provided in this Section 11. 
  
 B. Split, Subdivision or Combination of Shares. If the Company at any time while this Warrant, or any portion thereof, remains outstanding and
unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a 

  

 -5- 

 
different number of securities of the same class, then (i) in the case of a split or subdivision, the Exercise Price for such securities shall be
proportionately decreased and the securities issuable upon exercise of this Warrant shall be proportionately increased, and (ii) in the case of a combination, the Exercise Price for such securities shall be proportionately increased and the
securities issuable upon exercise of this Warrant shall be proportionately decreased. 
  
 C. Adjustments for Distributions in Stock or Other Securities or Property. If while this Warrant, or any portion hereof, remains outstanding and unexpired the holders of the securities as to which purchase
rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible Shareholders, shall have become entitled to receive, without payment therefor, other or additional stock or
other securities or property (other than cash) of the Company by way of dividend or otherwise, then and in each case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable upon exercise of
this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional stock or other securities or property (other than cash) of the Company that such holder would hold on the date of such exercise had it
been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other
additional stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions of this Section 11. 
  
 D. Mergers, Consolidation, or Asset Sale. If any merger or consolidation of the Company with or into another
corporation, or the sale of substantially all of its assets to another corporation, shall be effected in such a way that holders of shares of Common Stock shall be entitled to receive common stock, other securities, or assets with respect to or in
exchange for shares of Common Stock, then, as a condition to such merger, consolidation, or asset sale, adequate provision shall be made whereby the Holder of Warrants shall thereafter have the right to receive such shares of common stock, other
securities, or assets upon the exercise of the Warrant as though the Holder had exercised the Warrant in full immediately prior to such merger, consolidation, or asset sale and received Shares which were thereafter effected by the merger,
consolidation, or asset sale and the resulting shares of common stock, other securities, or assets were thereafter held and effected by any subsequent events. Notwithstanding the foregoing, if only cash, assets, and/or promissory notes not
convertible into equity are issued in such merger, consolidation, or asset sale, then the Company may cause the Warrants to terminate upon the consummation of such merger, consolidation, or asset sale, provided that the Company has provided the
Holder with at least fifteen (15) business days notice of such merger, consolidation, or asset sale. 
  
 E. Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 11, the Company at its expense
shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, upon the written request, at any time, of any such Holder, furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such adjustments and readjustments; (ii) the
Exercise Price at the time in effect; and (iii) the number of shares and the amount, if any, of other property that at the time would be received upon the exercise of the Warrant. 
  

 -6- 

 F. No Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Warrant and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Holder against impairment. An event described above in this subsections A, B, C, and D of this Section 11 for which appropriate adjustment is made or an event described in Section 9A of
which the Holder is given timely notice pursuant to Section 9, shall not be deemed under any circumstance to be an impairment of this Warrant. 
  
 12. Adjustments. Subject and pursuant to the provisions of this Section 12, the Warrant Price, but not the number of Warrant Shares subject to this
Warrant, shall be subject to adjustment from time to time as set forth hereinafter. 
  
 A. For the term of this Warrant, in addition to the provisions contained above, the Warrant Price shall be subject to adjustment as provided below. An adjustment to the Warrant Price shall become effective immediately
after the payment date in the case of each dividend or distribution and immediately after the effective date of each other event which requires an adjustment. 
  

B. Except as provided in subsection (C) hereof, if and whenever the Company shall issue or sell, or is, in accordance with any of subsections (B)(i)
through (B)(vii) hereof, deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share less than the Warrant Price in effect immediately prior to the time of such issue or sale, then and in each such
case (a “Trigger Issuance”) the then-existing Warrant Price, shall be reduced, as of the close of business on the effective date of the Trigger Issuance, to a price determined as follows: 
  

	 Adjusted Warrant Price =
	 	         (A x B) + D

	 	 	               A+C

  
 where

  
 “A” equals the number of shares of
Common Stock outstanding, including Additional Shares of Common Stock (as defined below) deemed to be issued hereunder, immediately preceding such Trigger Issuance; 
  
 “B” equals the Warrant Price in effect immediately preceding such Trigger Issuance; 
  
 “C” equals the number of Additional Shares of
Common Stock issued or deemed issued hereunder as a result of the Trigger Issuance; and 
  
 “D” equals the aggregate consideration, if any, received or deemed to be received by the Company upon such Trigger Issuance
provided, however, that in no event shall the Warrant Price after giving effect to such Trigger Issuance be greater than the Warrant Price in effect prior to such Trigger Issuance. 
  

 -7- 

 For purposes of this subsection (B), “Additional Shares of Common Stock” shall mean all shares
of Common Stock deemed to be issued pursuant to this subsection (B), other than Excluded Issuances (as defined in subsection (C) hereof). 
  
 For purposes of this subsection (B), the following subsections (B)(i) to (B)(vii) shall also be applicable: 
  
 i. Issuance of Rights or Options. In case at any time
the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock or any stock or security convertible into
or exchangeable for Common Stock (such warrants, rights or options being called “Options” and such convertible or exchangeable stock or securities being called “Convertible Securities”) whether or not such Options or the right to
convert or exchange any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities
(determined by dividing (a) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any, received or receivable by the Company as consideration for the granting of such Options, plus (y) the aggregate amount of
additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options which relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or
sale of such Convertible Securities and upon the conversion or exchange thereof, by (b) the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible
Securities issuable upon the exercise of such Options) shall be less than the Warrant Price in effect immediately prior to the time of the granting of such Options, then the total number of shares of Common Stock issuable upon the exercise of such
Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued for such price per share as of the date of granting of such Options or the
issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Warrant Price. Except as otherwise provided in subsection 12 (B)(iii), no adjustment of the Warrant Price shall be made upon the
actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities. 
  
 ii. Issuance of Convertible Securities. In case the
Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to exchange or convert any such Convertible Securities are immediately exercisable, and the
price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing (a) the sum (which sum shall constitute the applicable consideration) of (x) the total amount received or receivable by the Company as
consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (b) the total number of shares of Common Stock
issuable upon the conversion or exchange of all such 

  

 -8- 

 
Convertible Securities) shall be less than the Warrant Price in effect immediately prior to the time of such issue or sale, then the total maximum number of
shares of Common Stock issuable upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of such Convertible Securities and thereafter shall be
deemed to be outstanding for purposes of adjusting the Warrant Price, provided that (a) except as otherwise provided in subsection 12 (B)(iii), no adjustment of the Warrant Price shall be made upon the actual issuance of such Common Stock upon
conversion or exchange of such Convertible Securities and (b) no further adjustment of the Warrant Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities
for which adjustments of the Warrant Price have been made pursuant to the other provisions of subsection 12 (B). 
  
 iii. Change in Option Price or Conversion Rate. Upon the happening of any of the following events, namely, if the purchase price
provided for in any Option referred to in subsection 12 (B)(i) hereof, the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in subsections 12 (B)(i) or 12 (B)(ii), or the rate at
which Convertible Securities referred to in subsections 12 (B)(i) or 12 (B)(ii) are convertible into or exchangeable for Common Stock shall change at any time (including, but not limited to, changes under or by reason of provisions designed to
protect against dilution), the Warrant Price in effect at the time of such event shall forthwith be readjusted (upwards or downwards) to the Warrant Price which would have been in effect at such time had such Options or Convertible Securities still
outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold. On the termination of any Option for which any adjustment was made pursuant to this
subsection 12 (B) or any right to convert or exchange Convertible Securities for which any adjustment was made pursuant to this subsection 12 (B) (including without limitation upon the redemption or purchase for consideration of such Convertible
Securities by the Company), the Warrant Price then in effect hereunder shall forthwith be changed to the Warrant Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent
outstanding immediately prior to such termination, never been issued. 
  
 iv. Stock Dividends. Subject to the provisions of this Section 12 (B), in case the Company shall declare a dividend or make any other distribution upon any stock of the Company (other than the Common Stock)
payable in Common Stock, Options or Convertible Securities, then any Common Stock, Options or Convertible Securities, as the case may be, issuable in payment of such dividend or distribution shall be deemed to have been issued or sold without
consideration. 
  
 v. Consideration for
Stock. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor shall be deemed to be the net amount received by the Company therefor, after deduction therefrom
of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in connection therewith. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other

  

 -9- 

 
than cash, the amount of the consideration other than cash received by the Company shall be deemed to be the fair value of such consideration as determined
in good faith by the Board of Directors of the Company, after deduction of any expenses incurred or any underwriting commissions or concessions paid or allowed by the Company in connection therewith. In case any Options shall be issued in connection
with the issue and sale of other securities of the Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued for
such consideration as determined in good faith by the Board of Directors of the Company. If Common Stock, Options or Convertible Securities shall be issued or sold by the Company and, in connection therewith, other Options or Convertible Securities
(the “Additional Rights”) are issued, then the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional Rights (as determined using the Black-Scholes option pricing model or
another method mutually agreed to by the Company and the Warrantholder). The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the Warrantholder as to the fair market value of the Additional Rights. In the event
that the Board of Directors of the Company and the Warrantholder are unable to agree upon the fair market value of the Additional Rights, the Company and the Warrantholder shall jointly select an appraiser, who is experienced in such matters. The
decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the Company and the Warrantholder. 
  
 vi. Record Date. In case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (a)
to receive a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (b) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the
issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

  
 vii. Treasury Shares. The number of
shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company or any of its wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation or
retirement thereof) shall be considered an issue or sale of Common Stock for the purpose of this subsection 12 (B). 
  
 C. Anything herein to the contrary notwithstanding, the Company shall not be required to make any adjustment of the Warrant Price in the case of the
issuance of (a) capital stock, Options or Convertible Securities issued to directors, officers, employees or consultants of the Company in connection with their service as directors of the Company, their employment by the Company or their retention
as consultants by the Company pursuant to an equity compensation program approved by the Board of Directors of the Company or the compensation committee of the Board of Directors of the Company, (b) shares of Common Stock issued upon the conversion
or exercise of Options or Convertible Securities issued prior to the date hereof, (c) securities issued pursuant to the Stock and Warrant Purchase Agreements dated as of July 28, 2003, among the Company and the Investors named therein and securities
issued upon the 

  

 -10- 

 
exercise or conversion of those securities, (d) shares of Common Stock issued, deemed issued, or issuable by reason of a dividend, stock split or other
distribution on shares of Common Stock (but only to the extent that such a dividend, split or distribution results in an adjustment in the Warrant Price pursuant to the other provisions of this Warrant), (e) Common Stock issued or deemed issued to
banks or leasing companies in connection with working capital or equipment lines of credit/financing, and (f) Common Stock issued or deemed issued as the payment of the purchase price of an acquisition of another entity (collectively, “Excluded
Issuances”). 
  
 13. Miscellaneous. 
  
 A. This Warrant shall be governed by the internal laws of the State of
California as applied to agreements entered into in the State of California by and among residents of the State of California, without reference to the conflicts of laws provisions therein. 
  
 B. In the event of a dispute with regard to the interpretation of this
Warrant, the prevailing party may collect the cost of attorney’s fees, litigation expenses or such other expenses as may be incurred in the enforcement of the prevailing party’s rights hereunder. 
  
 C. This Warrant shall be exercisable as provided for herein, except that in
the event that the expiration date of this Warrant shall fall on a Saturday, Sunday and or United States federally recognized Holiday, the expiration date for this Warrant shall be extended to 5:00 p.m. Pacific standard time on the business day
following such Saturday, Sunday or recognized Holiday. 
  
 D. This
Warrant and any document or agreements executed by the parties pursuant to this Warrant constitute the full and complete understanding of the parties hereto with respect to the subject matter hereof and supersede all previous agreements or
understandings, written or oral, between the parties with respect thereto. 
  
 14. Call Provision. Notwithstanding any other provision contained herein to the contrary, in the event that the closing price of a share of Common Stock as traded on the Nasdaq (or such other exchange or stock
market on which the Common Stock may then be listed or quoted) equals or exceeds $5.00 (as appropriately adjusted for any stock split, reverse stock split, stock dividend or other reclassification or combination of the Common Stock occurring after
the date hereof) for twenty (20) consecutive trading days and all of the Warrant Shares have been registered for resale by Holder pursuant to a Registration Statement (as defined in Section 4.1 of the Purchase Agreement) which has been declared
effective by the SEC and which is available for sales of the Warrant Shares by Holder during the “Notice Period” as defined below, the Company, upon thirty (30) days prior written notice (such thirty (30) days comprising the
“Notice Period”) given to the Holder during the one-month period immediately following such twenty (20) trading day period, may demand that the Holder exercise this Warrant and purchase all of the Warrant Shares prior to the
expiration of the Notice Period, and the Holder will be obligated to do so. To the extent such exercise is not effected, the Company may, but is not required to, elect to have this Warrant expire and terminate effective at the expiration of the
Notice Period. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

  

 -11- 

 In witness whereof, California Micro Devices Corporation has caused this Warrant to be executed by its
officer thereunto duly authorized. 
  
 Dated:
July     , 2003 
  

	 COMPANY

	
	 CALIFORNIA MICRO DEVICES CORPORATION

		
	 By
	 	  

	 	 	 Robert V. Dickinson, President

  

 -12- 

 NOTICE OF EXERCISE 
  
 To: California Micro Devices Corporation 
  
 The undersigned hereby elects to purchase                     
shares of Common Stock of California Micro Devices Corporation pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price for such shares in full. 
  
 In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock to be issued upon conversion
thereof are being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 
  
 Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

  

	  

	(Name)

  

	  

	(Name)

  
 Please issue a new Warrant for the
unexercised portion of the attached Warrant in the name of the undersigned or in such other name as is specified below: 
  

	  

	(Name)

  

	  

	 	 	 	  

	(Date)	 	 	 	(Signature)

  

 -13- 

 ASSIGNMENT FORM 
  
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee
named below all of the rights of the undersigned under the within Warrant, with respect to the number of shares of Common Stock set forth below: 
  

	 Name of Assignee

	 	 Address

	 	 Number of Shares

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
 and does hereby irrevocably constitute
and appoint Attorney
                                        
    to make such transfer on the books of California Micro Devices Corporation, maintained for the purpose, with full power of substitution in the premises. 
  
 If the Assignee is an “affiliate”, as defined in Rule 405, promulgated by the SEC, please explain the basis for such
determination:
                                       
                                        
                                        
                                        
                                        
                                        
     . 
  
 The undersigned also
represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise dispose of this
Warrant or any shares of stock to be issued upon exercise hereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. Further, the Assignee has
acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not with a view
toward distribution or resale. 
  
 Dated:
                        . 
  

	 	 	  

	 	 	Signature of Holder

  

 -14- 

 EXHIBIT B 
  

CALIFORNIA MICRO DEVICES CORPORATION 
 CERTIFICATE OF SUBSEQUENT SALE 
  

  

	 	RE:	Sale of Shares of Common Stock of California Micro Devices Corporation (the “Company”) pursuant to the Company’s Prospectus dated
                            , 2003 (the “Prospectus”) 

  
 Dear Sir/Madam: 
  
 The undersigned hereby certifies, in connection with the sale of shares of
Common Stock of the Company included in the table of Selling Stockholders in the Prospectus, that the undersigned has sold the Shares pursuant to the Prospectus and in a manner described under the caption “Plan of Distribution” in the
Prospectus and that such sale complies with all applicable securities laws, including, without limitation, the Prospectus delivery requirements of the Securities Act of 1933, as amended. 
  

	 Selling Stockholder (the beneficial owner):
                                        
                                        
                    

	 Record Holder (e.g., if held in name of nominee):
                                        
                                        
            

	 Restricted Stock Certificate No.(s):
                                        
                                        
                                    

	 Number of Shares Sold:
                                        
                                        
                                        
                

	 Date of Sale:
                                        
                                        
                                        
                                

  
 In the event that you
receive a stock certificate(s) representing more shares of Common Stock than have been sold by the undersigned, then you should return to the undersigned a newly issued certificate for such excess shares in the name of the Record Holder and BEARING
A RESTRICTIVE LEGEND. Further, you should place a stop transfer on your records with regard to such certificate. 
  

	                                        
                                        
                                        
             Very truly yours,

	
	                                        
                                        
                                        
             By
                                        
                    

	
	                                        
                                        
                                        
             Print Name
                                        
    

	
	                                        
                                        
                                        
             Title
                                        
                    

  
 Dated:                      
  

	cc:	Pillsbury Winthrop LLP 

	    	2550 Hanover Street 

	    	Palo Alto, California 94304 

	    	Attn: Stephen M. Wurzburg 

  

 B-1 

 EXHIBIT C 
  

OPINIONS OF COMPANY COUNSEL 
  

 C-1 

 Pillsbury Winthrop LLP 
  
 2550 HANOVER STREET PALO ALTO, CA 94304-1115 650.233.4500 F: 650.233.4545 
  
 July 31, 2003 
  
 To the Investors Named 
 on Schedule A to the

 Stock and Warrant Purchase Agreement 
 Referred to Below:

  
 Re: California Micro Devices Stock and Warrant
Purchase Agreement 
  
 Ladies and Gentlemen: 
  
 We have acted as counsel for California Micro Devices Corporation, a California corporation
(the “Company”), in connection with the Stock and Warrant Purchase Agreement dated as of July 31, 2003 (the “Agreement”), by and between the Company and each of you. This letter is provided to you in satisfaction of the
requirements set forth in Section 5.5 of the Agreement. The Agreement provides, among other things, for the sale and purchase of shares (the “Shares”) of the Company’s no par value Common Stock (the “Common Stock”) and
warrants (the “Warrants”) to purchase shares of Common Stock (the “Warrant Shares”). Terms not otherwise defined herein have the meanings given them in the Agreement. 
  
 In connection with the foregoing, we have examined the Agreement and its exhibits, including the form of Warrant, records of proceedings of
the directors and shareholders of the Company, the Amended and Restated Articles of Incorporation, the Bylaws of the Company, certificates of officers of the Company and public officials, and such other documentation as we have deemed necessary or
advisable in order to render the opinions expressed herein. 
  
 Based upon the
foregoing and subject to the assumptions, qualifications, limitations and exceptions set forth below, it is our opinion that: 
  
 1. The Company has been duly incorporated and is a validly existing corporation in good standing under the laws of the State of California and has the
requisite corporate power to own its property and assets and to conduct its business as it is currently being conducted. 
  
 2. The Company has all requisite corporate power and authority to execute and deliver the Agreement and to perform its obligations under the terms of such

 To the Investors Named on Schedule A 
 of the Stock and Warrant Purchase Agreement 
 July 31, 2003 
 Page 2 
  
 Agreement. The Agreement has been duly and validly authorized,
executed and delivered by the Company and constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its respective terms, except insofar as indemnification and contribution provisions contained
therein may be limited by applicable law or the application of principles of public policy. 
  
 3. The execution and delivery by the Company of the Agreement and the performance by the Company of its obligations thereunder and the issuance of the Shares and Warrants pursuant to the Agreement do not violate the
Company’s Amended and Restated Articles of Incorporation or Bylaws, and do not (i) violate or contravene any governmental statute, rule or regulation applicable to the Company that in our experience is generally applicable to transactions of
the type contemplated by the Agreement (without our having made any investigation concerning the applicability of any other statue, rule or regulation) or (ii) violate or contravene any order, writ, judgment, injunction, decree, determination or
award known to us that has been entered against the Company. 
  
 4. We are not aware of any action, suit, proceeding or investigation pending against the Company before any court or administrative agency, or that the Company has received any written threat thereof, that questions the validity of the
Agreement. 
  
 5. No approval, authorization or other action by
any federal or state governmental authority or filing (other than filings solely for information purposes or to obtain action that is not the subject of governmental discretion) with any such authority that has not been obtained or accomplished is
required in connection with the execution, delivery and performance by the Company of the Agreement. 
  
 6. The Shares and Warrants have been duly authorized and, the Shares and Warrant Shares, upon issuance and delivery against payment therefor in accordance
with the terms of the Agreement, will be validly issued, fully paid and nonassessable. 
  
 7. Based in part upon your representations in Section 3 of the Agreement, the offer and sale of the Shares and Warrants pursuant to the terms of the Agreement are exempt from the registration requirements of Section 5
of the Securities Act of 1933, as amended, and the offer and sale of the Shares, Warrants, and Warrant Shares pursuant to the terms of the Agreement are exempt from the qualification requirements of the California Corporate Securities Law of 1968,
as amended. 

 To the Investors Named on Schedule A 
 of the Stock and Warrant Purchase Agreement 
 July 31, 2003 
 Page 3 
  
 The foregoing opinion is subject to such matters as are set
forth in the Agreement and the following assumptions, qualifications, limitations and exceptions: 
  
 (a) We have assumed the genuineness of all signatures, the authenticity and completeness of all documents submitted to us as originals,
the conformity to original documents of all documents submitted to us as photostatic or telecopied originals, the legal capacity of all natural persons, and as to documents executed by entities other than the Company, that each such entity has
complied with any applicable requirement to file tax returns and pay taxes under California Franchise Tax law and had the power to enter into and perform its obligations under such documents, and that such documents have been duly authorized,
executed and delivered by, and are binding upon and enforceable against such entities. We have also assumed that the representations and warranties made by the Company in the Agreement are true and correct as to matters of fact and that the
representations and warranties made by each of you in the Agreement are true and correct. 
  
 (b) This opinion is limited in all respects to matters governed by the laws of the State of California and the federal laws of the United
States, and we express no opinion concerning the laws or regulations of any other jurisdiction or jurisdictions. We express no opinion as to federal or state antifraud or antitrust laws or regulations or, except as expressly provided in paragraph 7
above, to the securities or blue sky law of any jurisdiction. We express no opinion in clause (i) of Paragraph 3 as to ordinances and regulations of counties and political subdivisions thereof. 
  
 (c) We assume that you know of no agreements, understandings
or negotiations between the parties not set forth in the Agreement that would modify the terms or rights and obligations of the parties thereunder. 
  
 (d) Our opinion in paragraph 2 above is subject to and limited by (i) the effect of applicable bankruptcy, insolvency, reorganization,
receivership, conservatorship, arrangement, moratorium or other laws affecting or relating to the rights of creditors generally, (ii) the rules governing the availability of specific performance, injunctive relief or other equitable remedies and
general principles of equity, whether considered in a proceeding in equity or at law, (iii) the effect of applicable court decisions, invoking statutes or principles of equity, which have held that certain covenants and provisions of agreements are
unenforceable where 

 To the Investors Named on Schedule A 
 of the Stock and Warrant Purchase Agreement 
 July 31, 2003 
 Page 4 
  
 the breach of such covenants or provisions
imposes restrictions or burdens upon a party thereto, and it cannot be demonstrated that the enforcement of such restrictions or burdens is reasonably necessary for the protection of the other party, or the enforcement of such covenants or
provisions under the circumstances would violate the covenant of good faith and fair dealing implied under applicable law, and (iv) the effect of California Civil Code Section 1698 and of statutes and rules of law that cannot be waived prospectively
by an obligor. 
  
 (e) Whenever a statement
herein is qualified by “to our knowledge,” “known to us,” “we are not aware,” or similar phrase, it indicates that in the course of our representation of the Company no information that would give us current actual
knowledge of the inaccuracy of such statement has come to the attention of the attorneys in this firm who have rendered legal services in connection with this transaction. We have not made any independent investigation to determine the accuracy of
such statement, except as expressly described herein. No inference as to our knowledge of any matters bearing on the accuracy of such statement should be drawn from the fact of our representation of the Company in other matters in which such
attorneys are not involved. 
  
 This opinion is rendered solely for your
information in connection with the transaction described above and may not be delivered to or relied upon by any other person for any purpose without our prior written consent. 
  
 Very truly yours, 

 EXHIBIT D 
  

SCHEDULE OF EXCEPTIONS 
  
 None. 
  

 D-1

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