Document:

AMENDED AND RESTATED

BUSINESS FINANCING AGREEMENT

 

	Borrower:	TRANSWITCH CORPORATION 	Lender:	BRIDGE BANK, National Association
	 	3 Enterprise Drive	 	55 Almaden Boulevard, Suite 100
	 	Shelton, CT 06484	 	San Jose, CA 95113

 

 

RECITALS

 

		A.	Lender and Borrowers have previously entered into that certain Amended and Restated Business Financing Agreement dated as of
April 4, 2011 (as such agreement was amended from time to time, the "Original Credit Agreement").

 

		B.	The Original Credit Agreement provided for a credit facility in the aggregate amount of up to $5,000,000 (the “Original
Loan”).

 

		C.	Lender and Borrower desire to amend the terms and conditions of the Original Credit Agreement to, among other things, restructure
the Original Loan.

 

		D.	From and after the date hereof, the Original Credit Agreement shall be amended and restated in its entirety in accordance with
the terms and provisions hereof, and any amounts outstanding prior to the restatement of the Original Credit Agreement shall be
governed under the terms and provisions hereof.

 

AGREEMENT

 

This Amended and Restated
BUSINESS FINANCING AGREEMENT, dated as of November 4, 2013, is made and entered into between BRIDGE BANK, NATIONAL ASSOCIATION
(“Lender”) and TranSwitch Corporation, a Delaware corporation (“Borrower”)
on the following terms and conditions:

 

		1.	Financed Receivables.

 

		1.1	Funding Requests. Borrower may request that Lender finance Receivables by delivering to
Lender a Funding Request for the Receivables for which a request for financing is made. Lender shall be entitled to rely on all
the information provided by Borrower to Lender on or with the Funding Request. The Lender may honor Funding Requests, instructions
or repayments given by the Borrower (if an individual) or by an Authorized Person.

 

		1.2	Acceptance of Receivables. Upon acceptance by Lender of any Receivable described in a Funding
Request, Lender shall make an Advance to Borrower in an amount up to the Advance Rate multiplied by the Receivable Amount of such
Receivable. Upon Lender’s acceptance of the Receivable and payment to Borrower of the Advance, the Receivable shall become
a “Financed Receivable.” It shall be a condition to each Advance that (a) all of the representations and warranties
set forth in Section 5 are true and correct on the date of such Advance as though made at and
as of each such date and (b) no Default has occurred and is continuing, or would result from such Advance. Lender has no obligation
to finance any Receivable and may exercise its sole discretion in determining whether any Receivable is an Eligible Receivable
before financing such Receivable. In no event shall the Lender be obligated to make any Advance that results in an Overadvance
or while any Overadvance is outstanding.

 

		1.3	Rights in Respect of Financed Receivables. Effective upon Lender’s payment of an Advance,
Lender shall have the exclusive right to receive all Collections on the Financed Receivable. Lender shall have, with respect to
any goods related to the Financed Receivable, all the rights and remedies of an unpaid seller under the California Uniform Commercial
Code and other applicable law, including the rights of replevin, claim and delivery, reclamation and stoppage in transit.

 

		1.4	Reserve. The Reserve is a book balance maintained on the records of Lender and shall not
be a segregated fund and is not the property of Borrower.

 

		1.5	Due Diligence. Lender may audit Borrower’s Receivables and any and all records pertaining
to the Collateral, at Lender’s sole discretion and at Borrowers expense. Lender may at any time and from time to time contact
Account Debtors and other persons obligated or knowledgeable in respect of Receivables to confirm the Receivable Amount of such
Receivables, to determine whether Receivables constitute Eligible Receivables, and for any other purpose in connection with this
Agreement. If any of the Collateral or Borrower's books or records pertaining to the Collateral are in the possession of a third
party, Borrower authorizes that third party to permit Lender or its agents to have access to perform inspections or audits thereof
and to respond to Lender's requests for information concerning such Collateral and records.

 

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		2.	Collections, Charges and Remittances.

 

		2.1	Collections. Subject to the Lender’s timely receipt of accurate application instructions
from the Borrower with respect to the source and application of Collections, Lender shall credit Collections with respect to Financed
Receivables received by Lender to Borrower’s Account Balance within three business days of the date good funds are received.
If no Default has occurred and is continuing, Lender agrees to credit the Refundable Reserve with the amount of Collections it
receives with respect to Receivables other than Financed Receivables; provided that upon the occurrence and during the continuance
of any Default, Lender may apply all Collections to the Obligations in such order and manner as Lender may determine. Lender has
no duty to do any act other than to turnover such amounts as required above. If an item of Collections is not honored or Lender
does not receive good funds for any reason, the amount shall be included in the Account Balance as if the Collections had not been
received and Finance Charges shall accrue thereon.

 

		2.2	Financed Receivables Activity Report. Within 15 days after the end of each Monthly Period,
Lender shall send to Borrower a report covering the transactions for that Monthly Period, including the amount of all Financed
Receivables, all Collections, Adjustments, Finance Charges, and other fees and charges. The accounting shall be deemed correct
and conclusive unless Borrower makes written objection to Lender within 30 days after the Lender sends the accounting to Borrower.

 

		2.3	Reconciliations. Unless a Default has occurred and is continuing, Lender shall refund to
Borrower after each Month End, the Refundable Reserve, if positive, calculated for such Month End, subject to Lender’s rights
under Section 3.3 and Lender’s rights of offset and recoupment. If the Refundable Reserve
is negative, Borrower shall immediately pay such amount in the same manner as set forth in Section 3.3
for Overadvances.

 

		2.4	Adjustments. In the event of a breach of Sections 5 or 6, or in the event any Adjustment
or dispute is asserted by any Account Debtor, Borrower shall promptly advise Lender and shall, subject to the Lender’s approval,
resolve such disputes and advise Lender of any Adjustments; provided that in no case will the aggregate Adjustments made
with respect to any Financed Receivable exceed 2% of its original Receivable Amount unless Borrower has obtained the prior written
consent of Lender. Unless the Advance for the disputed Financed Receivable is repaid in full, Lender shall have the right, at any
time, to take possession of any rejected, returned, or recovered personal property. If such possession is not taken by Lender,
Borrower is to resell it for Lender’s account at Borrower’s expense with the proceeds made payable to Lender. While
Borrower retains possession of any returned goods, Borrower shall segregate said goods and mark them as property of Lender.

 

		2.5	Remittances; Lockbox Account Collection Services. Borrower and Lender has previously entered
into a collection services agreement acceptable to Lender (the “Lockbox Agreement”). Borrower shall continue
to use the lockbox address as the remit to and payment address for all of Borrower’s Collections and it will be considered
an immediate Event of Default if this does not occur. All Collections received to the lockbox or otherwise received by Lender will
be deposited to a non-interest bearing cash collateral account maintained with Lender and Borrower will not have access to that
account.

 

		3.	Recourse and Overadvances.

 

		3.1	Recourse. Advances and the other Obligations shall be with full recourse against Borrower.
If any Advance is not repaid in full within 90 days from the earlier of (a) invoice date, or (b) the date on which such
Advance is made, Borrower shall immediately pay the outstanding amount thereof to Lender.

 

		3.2	Overadvances. Upon any occurrence of an Overadvance, Borrower shall immediately pay down
the Advances so that, after giving effect to such payments, no Overadvance exists.

 

		3.3	Borrower’s Payment. When any Overadvance or other amount owing to Lender becomes due,
Lender shall inform Borrower of the manner of payment which may be any one or more of the following in Lender’s sole discretion:
(a) in cash immediately upon demand therefore; (b) by delivery of substitute invoices and a Funding Request acceptable
to Lender which shall thereupon become Financed Receivables; (c) by deduction from or offset against the Refundable Reserve
that would otherwise be due and payable to Borrower; (d) by deduction from or offset against the amount that otherwise would
be forwarded to Borrower in respect of any further Advances that may be made by Lender; or (e) by any combination of the foregoing
as Lender may from time to time choose.

 

		4.	Fees and Finance Charges.

 

		4.1	Finance Charges. Lender may, but is not required to, deduct the amount of accrued Finance
Charge from Collections received by Lender. On each Month End Borrower shall pay to Lender any accrued and unpaid Finance Charge
as of such Month End. Lender may deduct the accrued Finance Charges in calculating the Refundable Reserve.

 

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		4.2	Fees.

 

		(a)	Maintenance Fee. On each Month End, Borrower shall pay to Lender any accrued and
unpaid Maintenance Fee as of such Month End.

 

		(b)	Facility Fee. Borrower shall pay the Facility Fee to Lender promptly upon the execution
of this Agreement and annually thereafter.

 

		(c)	Recovery Fee. If Borrower fails to remit any Collections to Lender as provided in
Section 2.5, Borrower shall in each case pay to Lender the Recovery Fee for such Collections.

 

		(d)	Due Diligence Fee. Borrower shall pay the Due Diligence Fee to Lender promptly upon
the execution of this Agreement and annually thereafter.

 

		5.	Representations and Warranties. Borrower
represents and warrants:

 

		5.1	With respect to each Financed Receivable:

 

		(a)	It is the owner with legal right to sell, transfer and assign it;

 

		(b)	The correct Receivable Amount is on the Funding Request and is not disputed;

 

		(c)	Such Financed Receivable is an Eligible Receivable;

 

		(d)	Lender has the right to endorse and/ or require Borrower to endorse all payments received on Financed
Receivables and all proceeds of Collateral; and

 

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

 

		5.2	Borrower is duly existing and in good standing in its state of formation and qualified and licensed
to do business in, and in good standing in, any state in which the conduct of its business or its ownership of property requires
that it be qualified.

 

		5.3	The execution, delivery and performance of this Agreement has been duly authorized, and does not
conflict with Borrower’s organizational documents, nor constitute an Event of Default under any material agreement by which
Borrower is bound. Borrower is not in default under any agreement to which or by which it is bound.

 

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

 

		5.5	Borrower’s name, form of organization, chief executive office, and the place where the records
concerning all Financed Receivables and Collateral are kept is set forth at the beginning of this Agreement, Borrower is located
at its address for notices set forth in this Agreement.

 

		5.6	If Borrower owns, holds or has any interest in, any copyrights (whether registered, or unregistered),
patents or trademarks, and licenses of any of the foregoing, such interest has been specifically disclosed and identified to Lender
in writing.

 

		6.	Miscellaneous Provisions. Borrower will:

 

		6.1	Maintain its corporate existence and good standing in its jurisdictions of incorporation and maintain
its qualification to do business in each jurisdiction necessary to Borrower’s business or operations.

 

		6.2	Give Lender at least 30 days prior written notice of changes to its name, organization, chief executive
office or location of records.

 

		6.3	Pay all its taxes including gross payroll, withholding and sales taxes when due and will deliver
satisfactory evidence of payment to Lender if requested.

 

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		6.4	Maintain:

 

		(a)	insurance satisfactory to Lender as to amount, nature and carrier covering property damage (including
loss of use and occupancy) to any of the Borrower's properties, business interruption insurance, public liability insurance including
coverage for contractual liability, product liability and workers' compensation, and any other insurance which is usual for the
Borrower's business. Each such policy shall provide for at least thirty (30) days prior notice to Lender of any cancellation thereof.

 

		(b)	all risk property damage insurance policies (including without limitation windstorm coverage, and
hurricane coverage as applicable) covering the tangible property comprising the collateral. Each insurance policy must be in an
amount acceptable to Lender. The insurance must be issued by an insurance company acceptable to Lender and must include a lender's
loss payable endorsement in favor of Lender in a form acceptable to Lender.

 

		(c)	foreign credit insurance satisfactory to Lender which must include a lender's loss payable endorsement
in favor of Lender in a form acceptable to Lender.

 

Upon the request
of Lender, Borrower shall deliver to Lender a copy of each insurance policy, or, if permitted by Lender, a certificate of insurance
listing all insurance in force.

 

		6.5	If requested, provide to Lender a written report within 10 days, if payment of any Financed Receivable
does not occur by its due date and include the reasons for the delay.

 

		6.6	If applicable, give Lender copies of all Forms 10-K, 10-Q and 8-K (or equivalents) within 5 days
of filing with the Securities and Exchange Commission, while any Financed Receivable is outstanding.

 

		6.7	Execute any further instruments and take further action as Lender requests to perfect or continue
Lender’s security interest in the Collateral or to affect the purposes of this Agreement.

 

		6.8	Provide Lender with a Compliance Certificate no later than 45 days following each month end or
as requested by Lender.

 

		6.9	Immediately notify, transfer and deliver to Lender all Collections Borrower receives.

 

		6.10	Not create, incur, assume, or be liable for any indebtedness, other than Permitted Indebtedness.

 

		6.11	Immediately notify Lender if Borrower hereafter obtains any interest in any copyrights, patents,
trademarks or licenses that are significant in value or are material to the conduct of its business or the value of any Financed
Receivable.

 

		6.12	At all times when any Advances are outstanding or upon request, provide to Lender no later than
45 days after the end of each month the following with respect to Borrower’s financial condition and results of operations
for such month and the period then ending: balance sheet, income statement, statement of cash flows, deferred revenue report, and
such other matters as Lender may request.

 

		6.13	Provide to Lender no later than 30 days after the end of each month accounts receivable and payable
aging and such other matters as Lender may request.

 

		6.14	Maintain all of its depository and operating accounts with Lender and, in the case of any investment
accounts not maintained with Lender, grant to Lender a first priority perfected security interest in and “control”
(within the meaning of Section 9104 of the California Uniform Commercial Code) of such account pursuant to documentation acceptable
to Lender.

 

		6.15	Provide to Lender, within 90 days of the fiscal year end, the annual financial statements of Borrower,
certified and dated by an authorized financial officer. These financial statements must be audited (with an opinion satisfactory
to the Lender) by a Certified Public Accountant acceptable to Lender. The statements shall be prepared on a consolidated basis.

 

		6.16	Provide to Lender financial projections covering a time period acceptable to Lender and specifying
the assumptions used in creating the projections. Annual projections approved by board of directors shall in any case be provided
to Lender no later than 30 days after the beginning of each fiscal year and upon each modification if applicable.

 

		6.17	Provide to Lender promptly upon the execution hereof, the following documents which shall be in
form satisfactory to Lender: (i) an intellectual property security agreement in favor of Lender, (ii) a borrowing resolution,
and (iii) an insurance authorization letter.

 

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		6.18	Promptly provide to Lender such additional information and documents regarding the finances, properties,
business or books and records of Borrower or any guarantor or any other obligor as Lender may request.

 

		7.	Security Interest. To secure the prompt payment
and performance to Lender of all of the Obligations, Borrower hereby grants to Lender a continuing security interest in the Collateral.
Borrower is not authorized to sell, assign, transfer or otherwise convey any Collateral without Lender’s prior written consent,
except for the (i) sale of finished inventory in the Borrower’s usual course of business; (ii) sales, transfers or other
dispositions of unused or obsolete assets; (iii) leases or sublicenses of real property or equipment in the ordinary course of
business; and (iv) the license or sublicense (subject to the liens of Lender) of intellectual property in the ordinary course of
business. Borrower agrees to sign any instruments and documents requested by Lender to evidence, perfect, or protect the interests
of Lender in the Collateral. Borrower agrees to deliver to Lender the originals of all instruments, chattel paper and documents
evidencing or related to Financed Receivables and Collateral. Borrower shall not grant or permit any lien or security in the Collateral
or any interest therein other than Permitted Liens.

 

		8.	Power of Attorney. Borrower irrevocably appoints
Lender and its successors and as true and lawful attorney in fact, and authorizes Lender (a) to, whether or not there has been
an Event of Default, (i) demand, collect, receive, sue, and give releases to any Account Debtor for the monies due or which may
become due upon or with respect to the Receivables and to compromise, prosecute, or defend any action, claim, case or proceeding
relating to the Receivables, including the filing of a claim or the voting of such claims in any bankruptcy case, all in Lender’s
name or Borrower’s name, as Lender may choose; (ii) prepare, file and sign Borrower’s name on any notice, claim, assignment,
demand, draft, or notice of or satisfaction of lien or mechanics’ lien or similar document; (iii) notify all Account Debtors
with respect to the Receivables to pay Lender directly; (iv) receive and open all mail addressed to Borrower for the purpose of
collecting the Receivables; (v) endorse Borrower’s name on any checks or other forms of payment on the Receivables; (vi)
execute on behalf of Borrower any and all instruments, documents, financing statements and the like to perfect Lender’s interests
in the Receivables and Collateral; (vii) debit any Borrower’s deposit accounts maintained with Lender for any and all Obligations
due under this Agreement; and (viii) do all acts and things necessary or expedient, in furtherance of any such purposes, and (b)
to, upon the occurrence and during the continuance of an Event of Default, sell, assign, transfer, pledge, compromise, or discharge
the whole or any part of the Receivables. Upon the occurrence and continuation of an Event of Default, all of the power of attorney
rights granted by Borrower to Lender hereunder shall be applicable with respect to all Receivables and all Collateral.

 

		9.	Default and Remedies.

 

		9.1	Events of Default. The occurrence of any one or more of the following shall constitute an
Event of Default hereunder.

 

		(a)	Failure to Pay. Borrower fails to make a payment under this Agreement.

 

		(b)	Lien Priority. Lender fails to have an enforceable first lien (except for any prior
liens to which Lender has consented in writing) on or security interest in the Collateral.

 

		(c)	False Information. Borrower (or any guarantor) has given Lender any materially false
or misleading information or representations or has failed to disclose any material fact relating to the subject matter of this
Agreement.

 

		(d)	Death. Borrower or any guarantor dies or becomes legally incompetent, or if Borrower
is a partnership, any general partner dies or becomes legally incompetent.

 

		(e)	Bankruptcy. Borrower (or any guarantor) files a bankruptcy petition, a bankruptcy
petition is filed against Borrower (or any guarantor) or Borrower (or any guarantor) makes a general assignment for the benefit
of creditors.

 

		(f)	Receivers. A receiver or similar official is appointed for a substantial portion
of Borrower’s (or any guarantor’s) business, or the business is terminated.

 

		(g)	Judgments. Any judgments or arbitration awards are entered against Borrower (or any
guarantor), or Borrower (or any guarantor) enters into any settlement agreements with respect to any litigation or arbitration
and the aggregate amount of all such judgments, awards, and agreements exceeds $300,000.

 

		(h)	Material Adverse Change. A material adverse change occurs, or is reasonably likely
to occur, in Borrower’s (or any guarantor’s) business condition (financial or otherwise), operations, properties or
prospects, or ability to repay the credit.

 

		(i)	Cross-default. Any default occurs under any agreement in connection with any credit
Borrower (or any guarantor) or any of Borrower’s related entities or affiliates has obtained from anyone else or which Borrower
(or any guarantor) or any of Borrower’s related entities or affiliates has guaranteed (other than trade amounts payable incurred
in the ordinary course of business and not more than 60 days past due).

 

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		(j)	Default under Related Documents. Any default occurs under any guaranty, subordination
agreement, security agreement, deed of trust, mortgage, or other document required by or delivered in connection with this Agreement
or any such document is no longer in effect.

 

		(k)	Other Agreements. Borrower (or any guarantor) or any of Borrower’s related
entities or affiliates fails to meet the conditions of, or fails to perform any obligation under any other agreement Borrower (or
any guarantor) or any of Borrower’s related entities or affiliates has with Lender or any affiliate of Lender.

 

		(l)	Other Breach Under Agreement. Borrower fails to meet the conditions of, or fails
to perform any obligation under, any term of this Agreement not specifically referred to above.

 

		9.2	Remedies. Upon the occurrence of an Event of Default, (1) without implying any obligation
to do so, Lender may cease making Advances or extending any other financial accommodations to Borrower; (2) all or a portion
of the Obligations shall be, at the option of and upon demand by Lender, or with respect to an Event of Default described in Section
9.1(e), automatically and without notice or demand, due and payable in full; and (3) Lender
shall have and may exercise all the rights and remedies under this Agreement and under applicable law, including the rights and
remedies of a secured party under the California Uniform Commercial Code, all the power of attorney rights described in Section
8 with respect to all Collateral, and the right to collect, dispose of, sell, lease, use, and
realize upon all Financed Receivables and all Collateral in any commercial reasonable manner.

 

		10.	Accrual of Interest. All interest
and finance charges hereunder calculated at an annual rate shall be based on a year of 360 days, which results in a higher effective
rate of interest than if a year of 365 or 366 days were used. If any amount due under Section 4.2,
amounts due under Section 11, and any other Obligations not otherwise
bearing interest hereunder is not paid when due, such amount shall bear interest at a per annum rate equal to the Finance Charge
Percentage until the earlier of (i) payment in good funds or (ii) entry of a trial judgment thereof, at which time the
principal amount of any money judgment remaining unsatisfied shall accrue interest at the highest rate allowed by applicable law.

 

		11.	Fees, Costs and Expenses; Indemnification.
The Borrower will pay to Lender upon demand all fees, costs and expenses (including reasonable fees of attorneys and professionals
and their reasonable costs and expenses) that Lender incurs or may from time to time impose in connection with any of the following:
(a) preparing, negotiating, administering, and enforcing this Agreement or any other agreement executed in connection herewith,
including any amendments, waivers or consents in connection with any of the foregoing, (b) any litigation or dispute (whether
instituted by Lender, Borrower or any other person) in any way relating to the Financed Receivables, the Collateral, this Agreement
or any other agreement executed in connection herewith or therewith, (c) enforcing any rights against Borrower or any guarantor,
or any Account Debtor, (d) protecting or enforcing its interest in the Financed Receivables or the Collateral, (e) collecting
the Financed Receivables and the Obligations, or (f) the representation of Lender in connection with any bankruptcy case or
insolvency proceeding involving Borrower, any Financed Receivable, the Collateral, any Account Debtor, or any guarantor. Borrower
shall indemnify and hold Lender harmless from and against any and all claims, actions, damages, costs, expenses, and liabilities
of any nature whatsoever arising in connection with any of the foregoing, except any of the foregoing arising from Lender’s
gross negligence or willful misconduct.

 

		12.	Integration, Severability Waiver, and Choice of Law
FORUM AND VENUE.

 

		12.1	This Agreement and any related security or other agreements required by this Agreement, collectively:
(a) represent the sum of the understandings and agreements between Lender and Borrower concerning this credit; (b) replace
any prior oral or written agreements between Lender and Borrower concerning this credit; and (c) are intended by Lender and
Borrower as the final, complete and exclusive statement of the terms agreed to by them. In the event of any conflict between this
Agreement and any other agreements required by this Agreement, this Agreement will prevail. If any provision of this Agreement
is deemed invalid by reason of law, this Agreement will be construed as not containing such provision and the remainder of the
Agreement shall remain in full force and effect. Lender retains all of its rights, even if it makes an Advance after a default.
If Lender waives a default, it may enforce a later default. Any consent or waiver under, or amendment of, this Agreement must be
in writing, and no such consent, waiver, or amendment shall imply any obligation by Lender to make any subsequent consent, waiver,
or amendment.

 

		12.2	THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE
STATE OF CALIFORNIA. THE PARTIES HERETO AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT OR ANY
OTHER RELATED DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF SANTA CLARA,
CALIFORNIA, OR, AT THE SOLE OPTION OF LENDER, IN ANY OTHER COURT IN WHICH LENDER SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS
AND WHICH HAS JURISDICTION OVER THE SUBJECT MATTER AND PARTIES IN CONTROVERSY. EACH PARTY HERETO WAIVES ANY RIGHT TO ASSERT THE
DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION
AND STIPULATES THAT THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF SANTA CLARA, CALIFORNIA SHALL HAVE IN PERSONAM JURISDICTION
AND VENUE OVER EACH SUCH PARTY FOR THE PURPOSE OF LITIGATING ANY SUCH DISPUTE, CONTROVERSY, OR PROCEEDING ARISING OUT OF OR RELATED
TO THIS AGREEMENT, OR ANY OTHER RELATED DOCUMENTS. SERVICE OF PROCESS SUFFICIENT FOR PERSONAL JURISDICTION IN ANY ACTION AGAINST
THE BORROWER MAY BE MADE BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO ITS ADDRESS SPECIFIED FOR NOTICES PURSUANT
TO SECTION 13.

 

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		13.	Notices; Telephonic and Telefax Authorizations.
All notices shall be given to Lender and Borrower at the addresses or faxes (or e-mail, if applicable) set forth on the signature
page of this agreement and shall be deemed to have been delivered when actually received at the designated address. Lender may
honor telephone, fax, e-mail or telefax instructions for Advances or repayments given, or purported to be given, by any one of
the Authorized Persons. Borrower will indemnify and hold Lender harmless from all liability, loss, and costs in connection with
any act resulting from telephone or telefax instructions Lender reasonably believes are made by any Authorized Person. This paragraph
will survive this Agreement's termination, and will benefit Lender and its officers, employees, and agents.

 

		14.	Definitions and Construction.

 

		14.1	Definitions. In this Agreement:

 

“Account Balance”
means at any time the aggregate of the Receivable Amounts of all Financed Receivables at such time, as reflected on the records
maintained by Lender.

 

“Account Debtor”
has the meaning in the California Uniform Commercial Code and includes any person liable on any Receivable, including without limitation,
any guarantor of any Receivable and any issuer of a letter of credit or banker’s acceptance assuring payment thereof.

 

“Adjustments”
means all discounts, allowances, disputes, offsets, defenses, rights of recoupment, rights of return, warranty claims, or short
payments, asserted by or on behalf of any Account Debtor with respect to any Financed Receivable.

 

“Advance”
means as to any Receivable, the advance made by Lender to Borrower in respect of such Receivable pursuant to Section 1.2.

 

“Advance Rate”
means 80% or such greater or lesser percentage as Lender may from time to time establish in its sole discretion upon notice to
Borrower.

 

“Agreement”
means this Amended and Restated Business Financing Agreement.

 

“Authorized Person”
means any of Borrower (if an individual) or any one of the individuals authorized to sign on behalf of Borrower.

 

“Cash Reserve”
means for any Financed Receivable which has been paid in full during a Monthly Period, the amount by which the amount(s) paid on
such Financed Receivable exceeds the Advance made on such Financed Receivable.

 

“Collateral”
means all of Borrower’s rights and interest in any and all personal property, whether now existing or hereafter acquired
or created and wherever located, and all products and proceeds thereof and accessions thereto, including but not limited to the
following (collectively, the “Collateral”): (a) all accounts (including health care insurance receivables), chattel
paper (including tangible and electronic chattel paper), inventory (including all goods held for sale or lease or to be furnished
under a contract for service, and including returns and repossessions), equipment (including all accessions and additions thereto),
instruments (including promissory notes), investment property (including securities and securities entitlements), documents (including
negotiable documents), deposit accounts, letter of credit rights, money, any commercial tort claim of Borrower which is now or
hereafter identified by Borrower or Lender, general intangibles (including payment intangibles and software), goods (including
fixtures) and all of Borrower’s books and records with respect to any of the foregoing, and the computers and equipment containing
said books and records; and (b) any and all cash proceeds and/or noncash proceeds thereof, including without limitation, insurance
proceeds, and all supporting obligations and the security therefore or for any right to payment.

 

“Collections”
means all payments from or on behalf of an Account Debtor with respect to Receivables.

 

    	7

    	 

    

 

“Compliance Certificate”
means a certificate in the form attached as Exhibit A to this Agreement by an Authorized Person that, among other things,
the representations and warranties set forth in this Agreement are true and correct as of the date such certificate is delivered.

 

“Credit Limit”
means $5,000,000 which is intended to be the maximum amount of Advances at any time outstanding.

 

“Default”
means any Event of Default or any event that with notice, lapse of time or otherwise would constitute an Event of Default.

 

“Due Diligence Fee”
means a payment of an annual fee equal to $600 due upon the date of this Agreement and each anniversary thereof so long as any
Advance is outstanding or available hereunder.

 

“Eligible Receivable”
means a Receivable that satisfies all of the following:

 

		(a)	The Receivable has been created by Borrower in the ordinary course of Borrower’s business
and without any obligation on the part of Borrower to render any further performance.

 

		(b)	There are no conditions which must be satisfied before Borrower is entitled to receive payment
of the Receivable, and the Receivable does not arise from COD sales, consignments or guaranteed sales.

 

		(c)	The Account Debtor upon the Receivable does not claim any defense to payment of the Receivable,
whether well founded or otherwise.

 

		(d)	The Receivable is not the obligation of an Account Debtor who has asserted or may be reasonably
expected to assert any counterclaims or offsets against Borrower (including offsets for any “contra accounts” owed
by Borrower to the Account Debtor for goods purchased by Borrower or for services performed for Borrower).

 

		(e)	The Receivable represents a genuine obligation of the Account Debtor and to the extent any credit
balances exist in favor of the Account Debtor, such credit balances shall be deducted in calculating the Receivable Amount.

 

		(f)	Borrower has sent an invoice to the Account Debtor in the amount of the Receivable.

 

		(g)	Borrower is not prohibited by the laws of the state where the Account Debtor is located from bringing
an action in the courts of that state to enforce the Account Debtor’s obligation to pay the Receivable. Borrower has taken
all appropriate actions to ensure access to the courts of the state where Account Debtor is located, including, where necessary;
the filing of a Notice of Business Activities Report or other similar filing with the applicable state agency or the qualification
by Borrower as a foreign corporation authorized to transact business in such state.

 

		(h)	The Receivable is owned by Borrower free of any title defects or any liens or interests of others
except the security interest in favor of Lender, and Lender has a perfected, first priority security interest in such Receivable.

 

		(i)	The Account Debtor on the Receivable is not any of the following: (i) an employee, affiliate,
parent or subsidiary of Borrower, or an entity which has common officers or directors with Borrower, (ii) the U.S. government
or any agency or department of the U.S. government unless Lender agrees in writing to accept the Receivable, Borrower complies
with the procedures in the Federal Assignment of Claims Act of 1940 (41 U.S.C.§15) with respect to the Receivable, and the
underlying contract expressly provides that neither the U.S. government nor any agency or department thereof shall have the right
of set-off against Borrower; or (iii) any person or entity located in a foreign country unless (A) the Receivable is
supported by an irrevocable letter of credit issued by a bank acceptable to Lender, and (B) if requested by Lender, the original
of such letter of credit and/or any usance drafts drawn under such letter of credit and accepted by the issuing or confirming bank
have been delivered to Lender.

 

		(j)	The Receivable is not in default (a Receivable will be considered in default if any of the following
occur: (i) the Receivable is not paid within 90 days from its invoice date; (ii) the Account Debtor obligated upon the
Receivable suspends business, makes a general assignment for the benefit of creditors, or fails to pay its debts generally as they
come due; or (iii) any petition is filed by or against the Account Debtor obligated upon the Receivable under any bankruptcy
law or any other law or laws for the relief of debtors).

 

    	8

    	 

    

 

		(k)	The Receivable does not arise from the sale of goods which remain in Borrower’s possession
or under Borrower’s control.

 

		(l)	The Receivable is not evidenced by a promissory note or chattel paper, nor is the Account Debtor
obligated to Borrower under any other obligation which is evidenced by a promissory note.

 

		(m)	The Receivable is otherwise acceptable to Lender.

 

“Event of Default”
has the meaning set forth in Section 9.1.

 

“Facility Fee”
means a payment of $12,500 due upon the date of this Agreement and an annual fee equal to 0.80 percentage points of the Formula
Account Balance and due upon each anniversary thereof until this Agreement is terminated pursuant to Section 17 hereof.

 

“Finance Charge”
means for each Monthly Period an interest amount equal to the Finance Charge Percentage of the average daily Account Balance outstanding
during such Monthly Period.

 

“Finance Charge Percentage”
means a rate per year equal to the Prime Rate plus 2.75 percentage points plus an additional 5.00 percentage points during any
period that an Event of Default has occurred and is continuing.

 

“Financed Receivable”
means a Receivable for which Lender makes an Advance pursuant to a Funding Request.

 

“Formula Account Balance”
means the dollar amount resulting from dividing the Credit Limit by the Advance Rate in effect at the time of calculation.

 

“Funding Request”
means a writing signed by an Authorized Person which accurately identifies the Receivables which Lender, at its election, is being
requested to finance, and includes for each such Receivable the correct amount owed by the Account Debtor, the name and address
of the Account Debtor, the invoice number, the invoice date and the account code in the form of the invoice schedule attached as
Exhibit B hereto, together with copies of invoices and such other supporting documentation as the Lender may from time
to time request.

 

“Lender”
means Bridge Bank, National Association, and its successors and assigns.

 

"Maintenance Fee"
means the amount equal to 0.25 percentage points per month of the ending daily Account Balance for the relevant period.

 

“Month End”
means the last calendar day of each Monthly Period.

 

“Monthly Period”
means each calendar month.

 

“Obligations”
means all liabilities and obligations of Borrower to Lender of any kind or nature, present or future, arising under or in connection
with this Agreement or under any other document, instrument or agreement, whether or not evidenced by any note, guarantee or other
instrument, whether arising on account or by overdraft, whether direct or indirect (including those acquired by assignment) absolute
or contingent, primary or secondary, due or to become due, now owing or hereafter arising, and however acquired; including, without
limitation, all Advances, Finance Charges, fees, interest, expenses, professional fees and attorneys’ fees.

 

“Overadvance”
means at any time an amount equal to the greater of the following amounts (if any): (a) the amount by which the total amount
of the Advances exceeds the Credit Limit and (b) the amount equal to the sum of (i) the total outstanding amounts of
all Advances made with respect to Receivables which were not, or have ceased to be, Eligible Receivables (ii) the amount by
which the total outstanding amount of all Advances (other than those under clause (i) above)) exceeds the product of (x) the
Advance Rate and (y) the total outstanding Receivable Amounts of the Eligible Receivables in respect of which such Advances
were made.

 

“Permitted Indebtedness”
means:

 

		(a)	Indebtedness under this Agreement or that is otherwise owed to the Lender.

 

		(b)	Indebtedness existing on the date hereof and specifically disclosed on a schedule to this Agreement.

 

    	9

    	 

    

 

		(c)	Purchase money indebtedness (including capital leases) incurred to acquire capital assets in ordinary
course of business and not exceeding $25,000 in total
principal amount at any time outstanding.

 

		(d)	Other indebtedness in an aggregate amount not to exceed $25,000
at any time outstanding; provided that such indebtedness is junior in priority (if secured) to the Obligations and provided that
the incurrence of such Indebtedness does not otherwise cause an Event of Default hereunder.

 

		(e)	Indebtedness incurred in the refinancing of any indebtedness
set forth in (a) through (d) above, provided that the principal amount thereof is not increased or the terms thereof are not modified
to impose more burdensome terms upon the Borrower.

 

		(f)	Subordinated Debt.

 

“Permitted Liens”
means:

 

		(a)	Liens securing any of the indebtedness described in clauses (a) through (d) of the definition of
Permitted Indebtedness.

 

		(b)	Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent
or being contested in good faith by appropriate proceedings, provided the same have no priority over any of Lender’s security
interests.

 

		(c)	Liens incurred in connection with the extension, renewal or refinancing of the indebtedness described
in clause (e) of the definition of Permitted Indebtedness, provided that any extension, renewal or replacement lien shall be limited
to the property encumbered by the existing lien and the principal amount of the indebtedness being extended, renewed or refinanced
does not increase.

 

		(d)	Liens securing Subordinated Debt.

 

“Prime
Rate” means the greater of 3.25% per year or the variable per annum rate of interest most recently announced by Lender
as its "Prime Rate." Lender may price loans to its customers at, above, or below the Prime Rate. Any change in the Prime
Rate shall take effect at the opening of business on the day specified in the public announcement of a change in Lender’s
Prime Rate.

 

“Recovery Fee”
means for each item of Collections which the Borrower has failed to remit as required by the Agreement, a fee equal to the lesser
of $5,000 or 5% of the amount of such item, but in no case less than $1,000.

 

“Receivable Amount”
means as to any Receivable, the Receivable Amount due from the Account Debtor after deducting all discounts, credits, offsets,
payments or other deductions of any nature whatsoever, whether or not claimed by the Account Debtor.

 

“Receivables”
means Borrower’s rights to payment arising in the ordinary course of Borrower’s business, including accounts, chattel
paper, instruments, contract rights, documents, general intangibles, letters of credit, drafts, and bankers acceptances.

 

“Refundable Reserve”
means for any Month End:

 

		(a)	The sum of (i) the total of the Cash Reserves as to all Financed Receivables as of such Month
End and (ii) the amount of Collections received by Lender during the Monthly Period with respect to Receivables other than
Financed Receivables and not previously remitted to Borrower,

 

minus

 

		(b)	The total for that Monthly Period ending on such Month End of:

 

		(i)	Maintenance Fee, Facility Fee, Due Diligence Fee, and Recovery Fees;

 

		(ii)	Finance Charges;

 

		(iii)	Adjustments;

 

		(iv)	Any outstanding Overadvance Amounts;

 

    	10

    	 

    

 

		(v)	all amounts due, including professional fees and expenses, as set forth in Section 11
for which oral or written demand has been made by Lender to Borrower during that Monthly Period to the extent Lender has agreed
to accept payment thereof by deduction from the Refundable Reserve; and

 

		(vi)	all amounts collected by Borrower on Financed Receivables during the Monthly Period and not remitted
to Lender.

 

“Reserve”
means as to any Financed Receivable the amount by which the Receivable Amount of the Financed Receivable exceeds the Advance on
that Financed Receivable.

 

“Reserve Percentage”
means 100% less the Advance Rate.

 

“Subordinated Debt”
means indebtedness of Borrower that is expressly subordinated to the indebtedness of Borrower owed to Lender pursuant to a subordination
agreement satisfactory in form and substance to Lender.

 

		14.2	Construction: 

 

		(a)	In this Agreement: (i) references to the plural include the singular and to the singular include
the plural; (ii) references to any gender include any other gender; (iii) the terms “include” and “including”
are not limiting; (iv) the term “or” has the inclusive meaning represented by the phrase “and/or,”
(v) unless otherwise specified, section and subsection references are to this Agreement, and (vi) any reference to any
statute, law, or regulation shall include all amendments thereto and revisions thereof.

 

		(b)	Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or resolved using
any presumption against either Borrower or Lender, whether under any rule of construction or otherwise. On the contrary, this Agreement
has been reviewed by each party hereto and their respective counsel. In case of any ambiguity or uncertainty, this Agreement shall
be construed and interpreted according to the ordinary meaning of the words used to accomplish fairly the purposes and intentions
of all parties hereto.

 

		(c)	Titles and section headings used in this Agreement are for convenience only and shall not be used
in interpreting this Agreement.

 

		15.	Jury Trial Waiver. THE UNDERSIGNED ACKNOWLEDGE
THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED
BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY
AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING
OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES.

 

		16.	JUDICIAL REFERENCE PROVISION.

 

		16.1	In the event the Jury Trial Waiver set forth above is not enforceable, the parties elect to proceed
under this Judicial Reference Provision.

 

		16.2	With the exception of the items specified in Section 16.3 below, any controversy, dispute or claim
(each, a “Claim”) between the parties arising out of or relating to this Agreement or any other document,
instrument or agreement between the undersigned parties (collectively in this Section, the “Loan Documents”),
will be resolved by a reference proceeding in California in accordance with the provisions of Sections 638 et seq. of the California
Code of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive remedy
for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided
in the Loan Documents, venue for the reference proceeding will be in the state or federal court in the county or district where
the real property involved in the action, if any, is located or in the state or federal court in the county or district where venue
is otherwise appropriate under applicable law (the “Court”).

 

		16.3	The matters that shall not be subject to a reference are the following: (i) nonjudicial foreclosure
of any security interests in real or personal property, (ii) exercise of self-help remedies (including, without limitation, set-off),
(iii) appointment of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of
attachment, writs of possession, temporary restraining orders or preliminary injunctions). This reference provision does not limit
the right of any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose
from a court of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to,
any of those items does not waive the right of any party to a reference pursuant to this reference provision as provided herein.

 

    	11

    	 

    

 

		16.4	The referee shall be a retired judge or justice selected by mutual written agreement of the parties.
If the parties do not agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the
referee shall be selected by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee
may be heard on an ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is
not granted. Pursuant to CCP § 170.6, each party shall have one peremptory challenge to the referee selected by the Presiding
Judge of the Court (or his or her representative).

 

		16.5	The parties agree that time is of the essence in conducting the reference proceedings. Accordingly,
the referee shall be requested, subject to change in the time periods specified herein for good cause shown, to (i) set the matter
for a status and trial-setting conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable,
try all issues of law or fact within one hundred twenty (120) days after the date of the conference and (iii) report a statement
of decision within twenty (20) days after the matter has been submitted for decision.

 

		16.6	The referee will have power to expand or limit the amount and duration of discovery. The referee
may set or extend discovery deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery
for any reason whatsoever. Unless otherwise ordered based upon good cause shown, no party shall be entitled to “priority”
in conducting discovery, depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall
be responded to within fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties
shall be submitted to the referee whose decision shall be final and binding.

 

		16.7	Except as expressly set forth herein, the referee shall determine the manner in which the reference
proceeding is conducted including the time and place of hearings, the order of presentation of evidence, and all other questions
that arise with respect to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except
for trial, shall be conducted without a court reporter, except that when any party so requests, a court reporter will be used at
any hearing conducted before the referee, and the referee will be provided a courtesy copy of the transcript. The party making
such a request shall have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award
costs to the prevailing party, the parties will equally share the cost of the referee and the court reporter at trial.

 

		16.8	The referee shall be required to determine all issues in accordance with existing case law and
the statutory laws of the State of California. The rules of evidence applicable to proceedings at law in the State of California
will be applicable to the reference proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter
equitable orders that will be binding on the parties and rule on any motion which would be authorized in a court proceeding, including
without limitation motions for summary judgment or summary adjudication. The referee shall issue a decision at the close of the
reference proceeding which disposes of all claims of the parties that are the subject of the reference. Pursuant to CCP §
644, such decision shall be entered by the Court as a judgment or an order in the same manner as if the action had been tried by
the Court and any such decision will be final, binding and conclusive. The parties reserve the right to appeal from the final judgment
or order or from any appealable decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions
of laws, a written statement of decision, and the right to move for a new trial or a different judgment, which new trial, if granted,
is also to be a reference proceeding under this provision.

 

		16.9	If the enabling legislation which provides for appointment of a referee is repealed (and no successor
statute is enacted), any dispute between the parties that would otherwise be determined by reference procedure will be resolved
and determined by arbitration. The arbitration will be conducted by a retired judge or justice, in accordance with the California
Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery
set forth above shall apply to any such arbitration proceeding.

 

		16.10	THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS
REFERENCE PROVISION WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT)
WITH COUNSEL OF ITS, HIS OR HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES
THAT THIS REFERENCE PROVISION WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY
RELATED TO, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

 

		17.	Term and Termination. Borrower and Lender
each have the right to terminate the financing of Receivables under this Agreement at any time upon notice to the other: provided
that no such termination shall affect Lender’s security interest in the Financed Receivables and other Collateral, and this
Agreement shall continue to be effective, and the obligations of Borrower to indemnify Lender with respect to the expenses, damages,
losses, costs and liabilities described in Section 11 shall survive
until all applicable statute of limitations periods with respect to actions that may be brought against Lender have run, and Lender’s
rights and remedies hereunder shall survive any such termination, until all transactions entered into and Obligations incurred
hereunder or in connection herewith have been completed and satisfied in full. Upon any such termination, Borrower shall, upon
demand by Lender, immediately repay all Advances then outstanding.

 

    	12

    	 

    

 

		18.	Other Agreements. Any security agreements,
liens and/or security interests securing payment of any obligations of Borrower owing to Lender or its affiliates also secure the
Obligations, and are valid and subsisting and are not adversely affected by execution of this Agreement. An Event of Default under
this Agreement constitutes a default under other outstanding agreements between Borrower and Lender or its affiliates.

 

		19.	NOTICE OF FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:
(A) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES, AND (C) THIS WRITTEN AGREEMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

IN WITNESS WHEREOF, Borrower and Lender
have executed this Agreement on the day and year above written.

 

 

 

	BORROWER:	 	LENDER:
	 	 	 
	TRANSWITCH CORPORATION	 	BRIDGE BANK, NATIONAL ASSOCIATION
	 	 	 
	 	 	 
	By	/s/ Robert Bosi	 	By	/s/ Anthony Crisci
	Name:	Robert Bosi	 	Name:	Anthony Crisci
	Title:	Chief Financial Officer	 	Title:	Vice President
	 	 	 	 	 
	Address for Notices:	 	Address for Notices:
	3 Enterprise Drive	 	55 Almaden Blvd.
	Shelton, CT 06484	 	San Jose, CA 95113
	Fax: (203) 926-9453	 	Fax:  (408) 423-8510

 

    	13SIXTH AMENDMENT TO

CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT
(“Amendment”) dated as of October 31, 2013, by and between Perceptron, Inc. (“Company”) and Comerica Bank
(“Bank”).

 

RECITALS:

 

A. Company and Bank
entered into an Amended and Restated Credit Agreement dated as of November 16, 2010, as amended (“Agreement”).

 

B. Company and Bank
desire to amend the Agreement as hereinafter set forth.

 

NOW, THEREFORE, the
parties agree as follows:

 

1. The definition of
Revolving Credit Maturity Date in Section 1 of the Agreement is amended to read as follows:

 

“Revolving
Credit Maturity Date” shall mean November 2, 2015.

 

2. The following definitions
are deleted from Section 1 of the Agreement:

 

“Letter of
Credit”

 

“Letter of
Credit Reserve”

 

3. Section 2 of the
Agreement is amended to read in its entirety as follows:

 

“2. THE
INDEBTEDNESS: Revolving Credit

 

“2.1 Bank
agrees to make Advances to Company at any time and from time to time from the effective date hereof until the Revolving Credit
Maturity Date, not to exceed Six Million Dollars ($6,000,000) in aggregate principal amount at any one time outstanding; provided
that the aggregate outstanding amount of Advances plus the Foreign Exchange Reserve shall never exceed Six Million Dollars ($6,000,000).
All of the Advances under this Section 2 shall be evidenced by the Revolving Credit Note under which Advances, repayments and readvances
may be made, subject to the terms and conditions of this Agreement and the Revolving Credit Note.

 

“2.2 The
Revolving Credit Note shall mature on the Revolving Credit Maturity Date and each Advance from time to time outstanding thereunder
shall bear interest as provided in the Revolving Credit Note.

 

“2.3 Company
may request an Advance under this Section 2 upon the delivery to Bank of a request for advance as provided in the Revolving Credit
Note, subject to the following:

 

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(a) the principal
amount of such Advance, plus the sum of the amount of all other outstanding Advances under this Section 2 and the Foreign Exchange
Reserve shall not exceed Six Million Dollars ($6,000,000);

 

(b) a request for
an Advance, once delivered to Bank, shall not be revocable by Company.

 

“2.4 Company
may prepay all or part of the outstanding balance of the Advance(s) as provided in, and subject to the terms of, the Revolving
Credit Note.

 

“2.5 For
a period of thirty (30) days each calendar year (which days need not be consecutive), the Advances under the Revolving Credit Note
shall be $0. Company shall make all payments necessary to comply with this provision.

 

“2.6 [Reserved].

 

“2.7 Company
agrees to pay to Bank a commitment fee on the average daily balance of the unused portion of the revolving credit commitment at
the rate of the Applicable Commitment Fee per annum, computed on the actual number of days elapsed using a year of 360 days. The
commitment fee shall be payable quarterly in arrears on the first day of each July, October, January and April (commencing January
1, 2014) and on the Revolving Credit Maturity Date.

 

“2.8 Proceeds
of Advances under the Revolving Credit Note shall be used solely for working capital purposes and for Capital Expenditures.”

 

4. Section 8.8 of the
Agreement is amended to read as follows:

 

“8.8 Declare
or pay any dividends or make any other distribution upon its stock except (a) dividends payable in the stock of Company and (b)
dividends in an amount not to exceed $2,500,000 in any fiscal year of Company paid in cash so long as at the time declared and
paid and after giving effect thereto no Event of Default (or default which with the giving of notice or the passage of time or
both would constitute an Event of Default) shall have occurred and be continuing.”

 

5. Section 10.1 of
the Agreement is amended to read in its entirety as follows:

 

“10.1 Upon
occurrence of any of the following events of default:

 

(a) non-payment
of any installment of the principal of the Note when due;

 

(b) non-payment
of any interest on the Notes when due in accordance with the terms thereof, or upon non-payment of any other outstanding Indebtedness
when due in accordance with the terms thereof;

 

    	2

    	 

    

 

(c) default in
the observance or performance of any of the conditions, covenants or agreements of Company set forth in Section 7 or set forth
in Section 8;

 

(d) default in
observance or performance of any of the other conditions, covenants or agreements of Company herein set forth, and continuance
thereof for thirty (30) days after written notice to Company by Bank;

 

(e) any material
representation or warranty made by Company or any other Person herein or in any instrument submitted pursuant hereto proves untrue
in any material respect when made or deemed made;

 

(f) default in
the observance or performance of any of the conditions, covenants or agreements of Company or any other Person set forth in any
collateral document which may be given to secure the indebtedness hereunder or in any other collateral document related to or connected
with this Agreement or the indebtedness hereunder and continuance for ten (10) days;

 

(g) default in
the payment of any other obligation of Company, any Subsidiary or any Guarantor for borrowed money in an aggregate amount in excess
of Fifty Thousand Dollars ($50,000), or in the observance or performance of any conditions, covenants or agreements related or
given with respect to any obligations for borrowed money in an aggregate amount in excess of Fifty Thousand Dollars ($50,000) sufficient
to permit the holder thereof to accelerate the maturity of such obligation;

 

(h) judgments for
the payment of money in excess of the sum of One Hundred Thousand Dollars ($100,000) in the aggregate shall be rendered against
Company, any Subsidiary or any Guarantor and such judgments shall remain unpaid, unvacated, unbonded or unstayed by appeal or otherwise
for a period of thirty (30) consecutive days from the date of its entry and such judgment is not covered by insurance from a solvent
insurer who is defending such action without reservation of rights;

 

(i) the occurrence
of any “reportable event”, as defined in the Employee Retirement Income Security Act of 1974 and any amendments thereto,
which is determined to constitute grounds for termination by the Pension Benefit Guaranty Corporation of any employee pension benefit
plan maintained by or on behalf of Company or any Subsidiary for the benefit of any of its employees or for the appointment by
the appropriate United States District Court of a trustee to administer such plan and is reasonably likely that the occurrence
of such event would result in a material adverse effect on Company, and such reportable event is not corrected and such determination
is not revoked within thirty (30) days after notice thereof has been given to the plan administrator or Company; or the institution
of proceedings by the Pension Benefit Guaranty Corporation to terminate any such employee benefit pension plan or to appoint a
trustee to administer such plan; or the appointment of a trustee by the appropriate United States District Court to administer
any such employee benefit pension plan;

 

    	3

    	 

    

 

(j) if there shall
be any change for any reason in the management, ownership or control of Company or any Subsidiary which in the sole reasonable
judgment of Bank materially adversely affects Company;

 

(k) if any of the
Guaranties is revoked;

 

then, or at any time
thereafter, unless such default is remedied, Bank may give notice to Company declaring all outstanding indebtedness hereunder and
under the Note to be due and payable, whereupon all Indebtedness then outstanding hereunder and under the Note shall immediately
become due and payable without further notice and demand, and Bank shall not be obligated to make further Advances hereunder.”

 

6. Section 10.2 of
the Agreement is amended to read in its entirety as follows:

 

“10.2 If
a creditors’ committee shall have been appointed for the business of Company, any Subsidiary or any Guarantor in connection
with any bankruptcy or insolvency; or if Company, any Subsidiary or any Guarantor shall have made a general assignment for the
benefit of creditors or shall have been adjudicated bankrupt, or shall have filed a voluntary petition in bankruptcy or for reorganization
or to effect a plan or arrangement with creditors; or shall file an answer to a creditor’s petition or other petition filed
against it, admitting the material allegations thereof for an adjudication in bankruptcy or for reorganization; or shall have applied
for or permitted the appointment of a receiver, or trustee or custodian for any of its property or assets; or such receiver, trustee
or custodian shall have been appointed for any of its property or assets (otherwise than upon application or consent of Company,
any Subsidiary or any Guarantor, as applicable), and such receiver, trustee or custodian so appointed shall not have been discharged
within sixty (60) days after the date of his appointment or if an order shall be entered and shall not be dismissed or stayed within
sixty (60) days from its entry, approving any petition for reorganization of Company, any Subsidiary or any Guarantor, then the
Note and all Indebtedness then outstanding hereunder shall automatically become immediately due and payable and Bank shall not
be obligated to make further Advances under this Agreement.”

 

7. Section 10.6 of
the Agreement is amended to read in its entirety as follows:

 

“10.6 [Reserved].”

 

8. Company hereby represents
and warrants that, after giving effect to the amendments contained herein, (a) execution, delivery and performance of this Amendment
and any other documents and instruments required under this Amendment or the Agreement are within Company’s corporate powers,
have been duly authorized, are not in contravention of law or the terms of Company’s Articles of Incorporation or Bylaws,
and do not require the consent or approval of any governmental body, agency, or authority; and this Amendment and any other documents
and instruments required under this Amendment or the Agreement, will be valid and binding in accordance with their terms; (b) the
continuing representations and warranties of Company set forth in Sections 6.1 through 6.5 and 6.7 through 6.12 of the Agreement
are true and correct on and as of the date hereof with the same force and effect as made on and as of the date hereof; (c) the
continuing representations and warranties of Company set forth in Section 6.6 of the Agreement are true and correct as of the date
hereof with respect to the most recent financial statements furnished to the Bank by Company in accordance with Section 7.1 of
the Agreement; and (d) no Event of Default (as defined in the Agreement) or condition or event which, with the giving of notice
or the running of time, or both, would constitute an Event of Default under the Agreement, as hereby amended, has occurred and
is continuing as of the date hereof.

 

    	4

    	 

    

 

9. Except as expressly
provided herein, all of the terms and conditions of the Agreement remain unchanged and in full force and effect.

 

10. This Amendment
shall be effective upon (a) execution of this Agreement by Company and the Bank and (b) execution by the Guarantor of an Amendment
to and Affirmation of Guaranty in form satisfactory to Bank.

 

IN WITNESS the due
execution hereof as of the day and year first above written.

 

	COMERICA BANK	 	PERCEPTRON, INC.
	 	 	 	 	 
	 	 	 	 	 
	By:  	/s/ Robert A. Rosati	 	By:  	/s/ John H. Lowry, III
	 	Robert A. Rosati	 	 	 
	 	 	 	 	 
	Its:	Vice President	 	Its:	/s/ Vice President, CFO

 

    	5

    	 

    

 

AMENDMENT TO AND AFFIRMATION OF GUARANTY

THIS AMENDMENT TO AND
AFFIRMATION OF GUARANTY (“Amendment”) is dated as of October 31, 2013, between PERCEPTRON GLOBAL, INC. (“Guarantor”)
and COMERICA BANK (“Bank”).

 

RECITALS:

 

A. Guarantor executed
and delivered to Bank a Guaranty dated as of October 24, 2002 with respect to the obligations and indebtedness of Perceptron, Inc.
(“Borrower”) to Bank (as amended or otherwise modified from time to time, the “Guaranty”).

 

B. Guarantor and Bank
desire to amend the Guaranty as set forth herein.

 

NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,
Guarantor and Bank agree as follows:

 

1. The following sentence
is added to the end of the first paragraph of the Guaranty as follows:

 

“Notwithstanding anything
to the contrary in this Guaranty, the term ‘Indebtedness’ shall not include any obligation of Borrower to Bank with
respect to a ‘swap,’ as defined in Section 1(a)(47) of the Commodity Exchange Act (‘CEA’), entered into
on or after October 12, 2012, if at the time that swap is entered into, the undersigned is not an ‘eligible contract participant,’
as defined in Section 1(a)(18) of the CEA.”

 

2. Guarantor affirms
Guarantor’s obligations to Bank under the Guaranty and acknowledges that, except as amended by this Amendment, all of the
terms and conditions of the Guaranty shall remain in full force and effect, subject to no setoff, defense or counterclaim.

 

3. Guarantor confirms
that no affirmation (including without limit this Amendment) is required by the terms of the Guaranty and need not be obtained
in connection with any prior or future waivers or amendments or extensions of additional credit to Borrower.

 

4. This Amendment shall
be effective as of the date hereof.

 

 

[Remainder of Page Intentionally Left Blank]

 

    	 

    	 

    

 

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

 

	COMERICA BANK	 	PERCEPTRON
    GLOBAL, INC.
	 	 	 	 	 
	 	 	 	 	 
	By:  	/s/ Robert A. Rosati	 	By:  	/s/ John H. Lowry, III
	 	Robert A. Rosati	 	 	 
	 	 	 	 	 
	Its:	Vice President	 	Its:	Vice President, CFO

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