Document:

Asset Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
  
  
  
 ASSET PURCHASE AGREEMENT 
 between: 
 CONEXANT SYSTEMS, INC.,

 a Delaware corporation; 
 and 
 IKANOS COMMUNICATIONS, INC., 
 a Delaware corporation 
  
  
 Dated as of April 21,
2009 
  
  
  
  
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	 1.
	 	 SALE AND PURCHASE OF ASSETS; RELATED TRANSACTIONS
	  	1
				
		 	 1.1
	  	Sale and Purchase of Assets	  	1
				
		 	 1.2
	  	Excluded Assets	  	3
				
		 	 1.3
	  	Purchase Price	  	3
				
		 	 1.4
	  	Inventory Adjustment	  	4
				
		 	 1.5
	  	Escrow Fund	  	6
				
		 	 1.6
	  	Assumption of Liabilities	  	6
				
		 	 1.7
	  	Excluded Liabilities	  	7
				
		 	 1.8
	  	Sales and Transfer Taxes; VAT; Tax Matters	  	7
				
		 	 1.9
	  	Allocation of Purchase Price	  	8
				
		 	 1.10
	  	Ancillary Agreements	  	9
				
		 	 1.11
	  	Closing	  	9
				
		 	 1.12
	  	Deliveries by the Purchaser	  	9
				
		 	 1.13
	  	Deliveries by the Seller	  	10
				
		 	 1.14
	  	Nonassignability of Assets	  	10
				
		 	 1.15
	  	Affiliate Acquisitions	  	11
				
		 	 1.16
	  	Withholding	  	12
			
	 2.
	 	 REPRESENTATIONS AND WARRANTIES OF THE SELLER
	  	12
				
		 	 2.1
	  	Due Organization and Qualification	  	12
				
		 	 2.2
	  	Title to Assets	  	12
				
		 	 2.3
	  	Financial Information	  	12
				
		 	 2.4
	  	Intellectual Property	  	13
				
		 	 2.5
	  	Transferred Contracts	  	16
				
		 	 2.6
	  	Compliance with Legal Requirements	  	17
				
		 	 2.7
	  	Employee Matters	  	17
				
		 	 2.8
	  	Employee Benefits; ERISA	  	18
				
		 	 2.9
	  	Legal Proceedings	  	19
				
		 	 2.10
	  	Authority	  	19
				
		 	 2.11
	  	Binding Nature of Agreements	  	19
				
		 	 2.12
	  	Non-Contravention; Consents	  	19

  

 i 

							
		 	 2.13
	  	Taxes	  	20
				
		 	 2.14
	  	Territorial Restrictions	  	20
				
		 	 2.15
	  	Absence of Changes	  	20
				
		 	 2.16
	  	Assets, Properties	  	20
				
		 	 2.17
	  	Customers and Suppliers	  	21
				
		 	 2.18
	  	Seller Products and Inventory	  	21
				
		 	 2.19
	  	Export Controls, Trade Sanctions and Certain Payments	  	22
				
		 	 2.20
	  	Continued Employment	  	22
				
		 	 2.21
	  	Disclosure	  	22
				
		 	 2.22
	  	Financial Advisor	  	22
				
		 	 2.23
	  	Opinion of Financial Advisor	  	23
				
		 	 2.24
	  	Valuation Analysis	  	23
			
	 3.
	 	 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER
	  	23
				
		 	 3.1
	  	Due Organization	  	23
				
		 	 3.2
	  	Authority	  	23
				
		 	 3.3
	  	Binding Nature of Agreements	  	24
				
		 	 3.4
	  	Non-Contravention; Consents	  	24
				
		 	 3.5
	  	Cash Consideration	  	24
				
		 	 3.6
	  	Financial Advisor	  	24
			
	 4.
	 	 PRE-CLOSING COVENANTS
	  	24
				
		 	 4.1
	  	Access	  	24
				
		 	 4.2
	  	Conduct of Business	  	24
				
		 	 4.3
	  	Filings	  	26
				
		 	 4.4
	  	Consents; Releases	  	28
				
		 	 4.5
	  	Certain Updates	  	28
				
		 	 4.6
	  	No Shop	  	28
				
		 	 4.7
	  	Confidentiality	  	29
				
		 	 4.8
	  	Assets in India and China	  	29
				
		 	 4.9
	  	Non-Transferred Inbound IP Licenses	  	30
				
		 	 4.10
	  	Conditions	  	30
				
		 	 4.11
	  	Financial and Other Information	  	30
				
		 	 4.12
	  	Securities Purchase Agreement	  	31
				
		 	 4.13
	  	Warranty/RMAs	  	31

  

 ii 

							
	 5.
	 	 CONDITIONS PRECEDENT TO THE PURCHASER’S OBLIGATION TO CLOSE
	  	31
				
		 	 5.1
	  	Accuracy of Representations	  	31
				
		 	 5.2
	  	Performance of Obligations	  	32
				
		 	 5.3
	  	Reserved	  	32
				
		 	 5.4
	  	Instruments of Transfer	  	32
				
		 	 5.5
	  	Ancillary Agreements	  	32
				
		 	 5.6
	  	No Restraints	  	32
				
		 	 5.7
	  	No Proceedings	  	32
				
		 	 5.8
	  	Seller Required Approvals	  	32
				
		 	 5.9
	  	Seller Closing Certificate	  	32
				
		 	 5.10
	  	FIRPTA Certificate	  	33
				
		 	 5.11
	  	Employee Offer Letter	  	33
				
		 	 5.12
	  	Seller Material Adverse Effect	  	33
				
		 	 5.13
	  	Securities Purchase Agreement	  	33
			
	 6.
	 	 CONDITIONS PRECEDENT TO THE SELLER’S OBLIGATION TO CLOSE
	  	33
				
		 	 6.1
	  	Accuracy of Representations	  	33
				
		 	 6.2
	  	Performance of Obligations	  	33
				
		 	 6.3
	  	Reserved	  	33
				
		 	 6.4
	  	Delivery of Consideration	  	33
				
		 	 6.5
	  	Instruments of Transfer	  	33
				
		 	 6.6
	  	Ancillary Agreements	  	34
				
		 	 6.7
	  	No Restraints	  	34
				
		 	 6.8
	  	Purchaser Closing Certificate	  	34
				
		 	 6.9
	  	Consent	  	34
			
	 7.
	 	 TERMINATION
	  	34
				
		 	 7.1
	  	Right to Terminate Agreement	  	34
				
		 	 7.2
	  	Termination Procedures	  	35
				
		 	 7.3
	  	Effect of Termination	  	35
			
	 8.
	 	 INDEMNIFICATION
	  	37
				
		 	 8.1
	  	Survival of Representations	  	37
				
		 	 8.2
	  	Indemnification by the Seller	  	38
				
		 	 8.3
	  	Indemnification by the Purchaser	  	40

  

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		 	 8.4
	  	Third Party Claim Indemnification Procedures	  	40
				
		 	 8.5
	  	Claims Procedure	  	42
				
		 	 8.6
	  	Adjustments to Losses	  	42
				
		 	 8.7
	  	Payments	  	43
				
		 	 8.8
	  	Characterization of Indemnification Payments	  	43
				
		 	 8.9
	  	Effect of Waiver of Condition	  	43
			
	 9.
	 	 EMPLOYEE MATTERS
	  	43
				
		 	 9.1
	  	Employment Matters	  	43
				
		 	 9.2
	  	Waiver of Waiting Period	  	46
				
		 	 9.3
	  	Certain Foreign National Employees	  	46
				
		 	 9.4
	  	W-2/Payroll Matters	  	47
				
		 	 9.5
	  	COBRA	  	47
				
		 	 9.6
	  	WARN	  	47
				
		 	 9.7
	  	No Third Party Rights	  	47
				
		 	 9.8
	  	Employee Communications	  	47
				
		 	 9.9
	  	401(k) Plan	  	48
			
	 10.
	 	 MISCELLANEOUS
	  	48
				
		 	 10.1
	  	No Implied Representations	  	48
				
		 	 10.2
	  	Further Actions	  	48
				
		 	 10.3
	  	Governing Law; Submission to Jurisdiction; Selection of Forum; Waiver of Trial By Jury	  	49
				
		 	 10.4
	  	Notices	  	49
				
		 	 10.5
	  	Public Announcements	  	51
				
		 	 10.6
	  	Fees and Expenses	  	51
				
		 	 10.7
	  	Books and Records	  	51
				
		 	 10.8
	  	Nonsolicitation and Non-Competition	  	51
				
		 	 10.9
	  	Assignment	  	52
				
		 	 10.10
	  	Parties in Interest	  	53
				
		 	 10.11
	  	Severability	  	53
				
		 	 10.12
	  	Entire Agreement	  	53
				
		 	 10.13
	  	Waiver	  	53
				
		 	 10.14
	  	Amendments	  	53
				
		 	 10.15
	  	Bulk Sales	  	53

  

 iv 

									
		 		 	 10.16
	  	Counterparts	  	53
					
		 		 	 10.17
	  	Interpretation of Agreement	  	53
					
		 		 	 10.18
	  	Certain Definitions	  	54

 TABLE OF EXHIBITS 
  

			
	Exhibit A	  	Form of IP License Agreement
	Exhibit B	  	Form of Assignment and Assumption Agreement
	Exhibit C	  	Form of Intellectual Property Assignment Agreement
	Exhibit D	  	Form of Escrow Agreement
	Exhibit E	  	Form of Transition Services Agreement
		
	Schedule A	  	Key Employee
	Schedule B	  	Actions and Proceedings
	Schedule C	  	Severance Policies

  

 v 

 THIS ASSET PURCHASE AGREEMENT is being entered into as of April 21, 2009, by and between:
CONEXANT SYSTEMS, INC., a Delaware corporation (the “Seller”), and IKANOS COMMUNICATIONS, INC., a Delaware corporation (the “Purchaser”). The Seller and the Purchaser are sometimes referred to in this
Agreement individually as a “Party” and collectively as the “Parties.” Certain other capitalized terms used in this Agreement are defined in Section 10.18. 
 RECITALS 
 WHEREAS, the Seller is
engaged in the business of designing, developing and selling DSL Products (the “Business”); 
 WHEREAS, the Seller desires
to sell to the Purchaser and the Purchaser desires to purchase and assume from the Seller certain of the assets and liabilities of the Business, as more particularly set forth herein; 
 WHEREAS, on the Closing Date, the Seller and the Purchaser will enter into (or, as applicable, will cause one or more of their respective Affiliates to
enter into) an IP License Agreement in the form of Exhibit A (the “IP License Agreement”), one or more Assignment and Assumption Agreements substantially in the form of Exhibit B (the “Assignment and Assumption
Agreements”), one or more Intellectual Property Assignment Agreements in the form of Exhibit C (the “Intellectual Property Assignment Agreements”), and the Transition Services Agreement; 
 WHEREAS, on the Closing Date, the Seller and the Purchaser will enter into an Escrow Agreement, substantially in the form of Exhibit D, pursuant
to which a portion of the Purchase Price will be deposited into and held in escrow to offset in part potential indemnification claims of the Purchaser under this Agreement; and 
 WHEREAS, certain of the purchase and sale transactions provided for in this Agreement shall be effected through one or more Local Purchase Agreements
which will be subject to the terms, provisions and conditions of this Agreement. 
 NOW, THEREFORE, in consideration of the premises and the
mutual representations, warranties, covenants and undertakings contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as
follows: 
  

	1.	SALE AND PURCHASE OF ASSETS; RELATED TRANSACTIONS. 

 1.1 Sale and Purchase of Assets. On the terms and subject to the conditions and other provisions set forth in this Agreement, at the Closing, the Seller will and will cause each of its Affiliates to, sell, convey, transfer, assign
and deliver to the Purchaser, and the Purchaser will purchase from the Seller or such Affiliates, all of the rights, title and interests of the Seller and each of its Affiliates into and under the following (which, subject to
Section 1.2, are referred to in this Agreement as the “Transferred Assets”), free and clear of all Encumbrances, other than Permitted Encumbrances: 
 (a) (i) the patents and patent applications identified on Schedule 1.1(a)(i), as well as any foreign or multinational
counterparts (including Patents, statutory invention registrations, patent registrations industrial designs and industrial models) thereof, whether or not identified on Schedule 1.1(a)(i), including all rights therein provided by
multinational treaties or conventions and all inventions and improvements covered by the claims in such applications and registrations (collectively, the “Transferred Patents”); (ii) the patents and patent applications
identified on Schedule 1.1(a)(ii), including all rights therein provided by multinational treaties or conventions and all inventions and improvements covered by the claims in such applications and registrations (collectively, the
“Other Transferred Patents”); and (iii) the invention disclosures identified on Schedule 1.1(a)(iii) and including all rights therein as well as all inventions and improvements disclosed therein made by the Seller;

 (b) the Intellectual Property Rights (other than Patent rights) in and to or
associated with the items identified on Schedule 1.1(b) (the “Transferred Non-Patent IP”); 
 (c) the Inventory (the “Transferred Inventory”); 
 (d) (i) the contracts
identified on Schedule 1.1(d), and (ii) any other contract primarily related to the Business, entered into by the Seller or any of its Affiliates after the date of this Agreement but prior to the Closing without violating
Section 4.2 of this Agreement (the contracts described in this Section 1.1(d) shall be collectively referred to as the “Transferred Contracts”); 
 (e) the prototypes, systems, equipment, furniture, fixtures, computer equipment, masks and other fixed assets that are identified
on Schedule 1.1(e) (the “Transferred Fixed Assets”); 
 (f) all causes of action, lawsuits,
judgments, claims and demands of any nature available from time to time to or being pursued by the Seller or any of its Affiliates in each case to the extent related to the Business, the Transferred Assets, the Assumed Liabilities or the ownership,
operation, use, function or value of any Transferred Asset, whether known or unknown, suspected or unsuspected and whether arising by way of counterclaim or otherwise including the right of the Seller or any of its Affiliates to pursue claims and
enforce the obligations of any party to any proprietary/confidential information agreements and non-competition agreements to which any current or former employee, consultant, contractor and actual or potential business partner, counterparty or
investor of or in the Seller or any of its Affiliates is a party, in each case to the extent related to the Business or any of the Transferred Assets, except in each case to the extent (i) included in the Excluded Assets or (ii) related to
Intellectual Property Rights that are not Transferred Assets; 
 (g) all credits, prepaid expenses, deferred charges,
advance payments, security deposits, prepaid items and duties to the extent related to any Transferred Asset; 
 (h)
all Books and Records (except for a reasonable number of copies of embodiments of the Transferred IP, which will be retained by the Seller for use under, and in a manner consistent with, the IP License Agreement); and 
 (i) all guaranties, warranties, indemnities and similar rights in favor of the Seller or any of its Affiliates to the extent
related to any Transferred Asset. 
  

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 1.2 Excluded Assets. The Seller will not be required to sell, convey, assign or transfer to the
Purchaser, and the Transferred Assets will not include any assets other than the Transferred Assets (collectively, the assets of the Seller not included in the Transferred Assets are referred to herein as the “Excluded Assets”);
notwithstanding anything to the contrary contained in Section 1.1, the Seller will not be required to sell or transfer to the Purchaser, and the Transferred Assets will not be deemed to include any of the following or any right or
interest in, to or under any of the following: 
 (a) any cash, cash equivalents or Accounts Receivable; 
 (b) any asset or contract identified on Schedule 1.2(b); 
 (c) all rights and interests in connection with, and assets of, any “employee benefit plan” within the meaning of
Section 3(3) of ERISA and any other employee benefit plan, program, arrangement or agreement established, maintained, sponsored or contributed to by the Seller or any ERISA Affiliate, including the Seller Plans; 
 (d) all Intracompany Receivables; 
 (e) subject to Section 1.14, any Transferred Contract if: (i) a Consent is required to be obtained from any Person in order to permit the sale or transfer to the Purchaser of the Seller’s
rights under such Transferred Contract and (ii) such Consent shall not have been obtained prior to the Closing; 
 (f) all guaranties, warranties, indemnities and similar rights in favor of the Seller or any of its Affiliates to the extent exclusively related to any Seller Product sold prior to the Closing Date; and 
 (g) all personnel records of employees that are not Hired Employees and personnel records of any Hired Employees whose consent to
such transfer is required under Legal Requirement to the extent such Hired Employee has not consented to such transfer. 
 1.3 Purchase
Price. 
 (a) Subject to the terms and conditions of this Agreement, in consideration for the sale of the
Transferred Assets to the Purchaser, at the Closing, in addition to the Assumed Liabilities, the Purchaser will pay to the Seller, by wire transfer of immediately available funds, the sum of $47,250,000 less any amounts being paid pursuant to the
Local Purchase Agreements (collectively, the “Cash Closing Payment”). 
 (b) Subject to the terms and
conditions of this Agreement, at the Closing, the Purchaser will pay to US Bank National Association, as escrow agent (the “Escrow Agent”), by wire transfer of immediately available funds, $6,750,000 (the “Escrow
Amount” and collectively with the Cash Closing Payment, the “Purchase Price”). 
  

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 (c) To the extent that the Allocation (as defined in Section 1.9)
allocates a portion of the Purchase Price to Transferred Assets located in China or India, the Purchaser (or an Affiliate of the Purchaser) shall pay in U.S. dollars (unless otherwise required under local Legal Requirements) that portion of the Cash
Closing Payment to the Affiliate of the Seller that is party to the Local Purchase Agreement related to such country. Payment made under this Section 1.3(c) shall reduce the payment required to be made by the Purchaser under
Section 1.3(a) (which, in the case of any payment made other than in U.S. dollars, will be converted into U.S. dollars at the applicable Exchange Rate on the day prior to the Closing Date). 
 1.4 Inventory Adjustment. 
 (a) Within 45 days following the Closing Date, the Purchaser shall deliver to the Seller a statement (the “Purchaser’s Calculation”) setting forth the Transferred Inventory, net of reserves (“Net
Inventory”) as of the Closing Date (the “Closing Inventory Value”) determined in conformity with GAAP. 
 (b) If the Seller disagrees with the Purchaser’s Calculation, the Seller may, within 15 days after delivery of the Purchaser’s Calculation, deliver a notice (the “Seller’s Objection”) to the Purchaser
disagreeing with the Purchaser’s Calculation and specifying, in reasonable detail (i) the Seller’s calculation of the Closing Inventory Value and (ii) the Seller’s grounds for such disagreement. 
 (c) If a Seller’s Objection is duly delivered pursuant to Section 1.4(b), the Purchaser and the Seller shall,
during the 15 days following such delivery, use their reasonable efforts to reach agreement on the Closing Inventory Value. If they are unable to reach such agreement during such period, the parties shall promptly engage the CPA Firm to review
promptly the Net Inventory for the purpose of calculating the Closing Inventory Value. In making such calculation, the CPA Firm shall determine the Closing Inventory Value. The CPA Firm shall deliver to the Purchaser and the Seller, as promptly as
practicable, a report setting forth such calculation of the Closing Inventory Value. Such report shall be final and binding upon the Purchaser and the Seller (absent manifest error). The cost of the CPA Firm shall be borne equally by the Purchaser
and the Seller. 
 (d) The Purchaser and the Seller each agree to reasonably cooperate and assist in the determination
of the Closing Inventory Value under this Section 1.4, including by making available to the other party and its representatives, to the extent reasonably requested, reasonable access to books, records, work papers, personnel and
representatives in connection with such other party’s preparation and review of the closing statement. 
 (e) The
Seller shall use its commercially reasonable efforts to manage its purchases and sale of inventory in the Business such that the value, net of excess and obsolete inventory reserves, of the Transferred Inventory at the Closing (determined in
accordance with GAAP as applied by the Seller consistent with its past practices), shall not be more than $2,000,000 less than the Base Inventory Value or more than $2,000,000 greater than the Base Inventory Value, unless the Seller has received the
written consent of the Purchaser, which consent shall not be unreasonably withheld, conditioned or delayed. The Seller shall also use its commercially reasonable efforts to manage its sales of Seller Products so that the amount of 

  

 4 

 
Seller Products remaining in Channel Inventory at the Closing does not have a value (determined in accordance with GAAP as applied by the Seller consistent
with its past practices) in excess of $4,000,000. If the value of the Channel Inventory, determined using the Seller’s net sales price to the respective distributors, remaining at the Seller’s distributors at the Closing is greater than
$4,000,000, the Seller shall pay to the Purchaser, as an adjustment to the Purchase Price, the amount by which the value of the Channel Inventory at the Closing is greater than $4,000,000, unless the Purchaser in its sole discretion agrees to a
higher amount. If the Final Inventory Value is less than the Base Inventory Value, the Seller shall pay to the Purchaser, as an adjustment to the Purchase Price, the amount by which the Final Inventory Value is less than the Base Inventory Value. If
the Final Inventory Value is greater than the Base Inventory Value, the Purchaser shall pay to the Seller, as an adjustment to the Purchase Price, the amount by which the Final Inventory Value is greater than the Base Inventory Value; provided that
any such payment by the Purchaser to the Seller shall not exceed $2,000,000 unless the Purchaser has delivered an Inventory Consent with respect to the Inventory in excess of such amount. “Final Inventory Value” means the Closing
Inventory Value (i) as shown in the Purchaser’s Calculation if no Seller’s Objection is duly delivered to the Purchaser in compliance with Section 1.4(b); or (ii) if such a notice of disagreement is delivered,
(A) as agreed by the Purchaser and the Seller pursuant to Section 1.4(c) or (B) in the absence of such agreement, as shown in the CPA Firm’s calculation delivered pursuant to Section 1.4(c). “Channel
Inventory” means the Seller Products shipped by the Seller to its distributors prior to the Closing for resale, regardless of whether any of the following is applicable: (i) the Seller has, in accordance with GAAP, recognized on or
before the Closing, the revenue from the sale of such Seller Products to the applicable distributor, or (ii) the distributor to whom the Seller sold the Seller Products has the right to return such Seller Products to the Seller pursuant to the
applicable distributor agreement or otherwise. 
 (f) During the Pre-Closing Period, the Seller shall operate in the
ordinary course of business with respect to its Inventory practices. During the six-month period commencing on the Closing Date, the Seller shall permit its distributors (and the Purchaser shall also permit the Seller’s distributors) to sell
any Channel Inventory in their possession at that time. During this same six-month period, the Purchaser shall not sell the same Seller Products at a lower price to the distributors of the Seller holding any Channel Inventory other than in the
Purchaser’s ordinary course of business. Schedule 1.4(f) lists the original equipment manufacturers and distributors to which, for the six-month period commencing on the Closing Date, the Purchaser will not sell such products at a lower
price or which the Purchaser will not offer any rebate, discount or other price incentive in a manner intended to induce such original equipment manufacturers or distributors to return any of the Channel Inventory to the Seller. From and after the
date that is six months after the Closing Date, the Seller shall accept Channel Inventory from its distributors in return for a credit or payment therefor consistent with the applicable distributor agreement. The Seller shall promptly notify the
Purchaser in writing of the return of any such Channel Inventory, and for a period of 20 days after receipt of such notice, the Purchaser shall have the right to purchase from the Seller any such returned Channel Inventory at the Seller’s
standard cost. If the Purchaser declines to purchase, or does not respond to the Seller within such 20 day period, the Seller shall destroy such returned Channel Inventory. 
 (g) Any payment pursuant to this Section 1.4 shall be made within 10 days after the determination of the Final
Inventory Value by the Seller or the Purchaser, as the case may be, by wire transfer of immediately available funds to such account or accounts as may be designated by the Seller or the Purchaser, as the case may be. 
  

 5 

 1.5 Escrow Fund. 
 (a) On or prior to the Closing, the Seller and the Purchaser shall enter into an escrow agreement, in substantially the form
attached hereto as Exhibit D (the “Escrow Agreement”), with the Escrow Agent. Pursuant to the terms of the Escrow Agreement, the Purchaser will create the escrow fund (the “Escrow Fund”) on the date of the
Closing by depositing the Escrow Amount with the Escrow Agent on the date of the Closing. The Escrow Agent shall hold the Escrow Fund in an escrow account and invest the Escrow Fund in a money market fund mutually agreed upon by the Seller and the
Purchaser. In addition, the Escrow Agent will not transfer any interest in such Escrow Fund except pursuant to the terms of the Escrow Agreement. 
 (b) Subject to the terms of the Escrow Agreement, the Escrow Amount still held in escrow (including accrued interest to the extent provided in the Escrow Agreement) and not subject to pending, unresolved claims
thereunder shall be released from the Escrow Fund to the Seller five (5) Business Days following the end of the Survival Period. 
 1.6 Assumption of Liabilities. 
 (a) On the terms and subject to the conditions set forth herein, at
the Closing, the Purchaser shall assume the following obligations and liabilities of the Seller (the “Assumed Liabilities”): (i) all Liabilities arising on or after the Closing under the Transferred Contracts (but excluding,
for any breach arising in whole or in part on or prior to the Closing Date, that portion of the Liability relating to the pre-Closing breach); (ii) all Liabilities with respect to Taxes arising out of or related to the operation of the Business
or the Transferred Assets after the Closing Date; (iii) all Liabilities with respect to Open Incoming POs entered into (A) on or before the date hereof or (B) otherwise in compliance with this Agreement (but excluding, for any breach
arising in whole or in part on or prior to the Closing Date, that portion of the Liability relating to the pre-Closing breach); (iv) all Liabilities with respect to Open Outgoing POs for normal operating expenses entered into by the Seller in
the ordinary course of business and in accordance with this Agreement and as listed on Schedule 1.6(a) which shall be delivered by the Seller to the Purchaser seven (7) days prior to the Closing and dated as of such date; (v) all
Liabilities for product warranty claims and product liability claims with respect to Seller Products manufactured or sold after the Closing Date; (vi) all Liabilities to the extent arising out of, relating to or in connection with the ownership
or operation of the Business or the Transferred Assets after the Closing Date; (vii) all Liabilities for all accrued but unpaid vacation, holiday, flexible time off and sick pay of the Specified Employees, except for the Specified Employees in
Noida, India (collectively, “Vacation Accrual”); and (viii) any Liabilities for Patent infringement with respect to activities conducted by the Purchaser after the Closing Date, including the sale of any Seller Products
(including any Seller Products included in the Transferred Inventory) after the Closing Date. For the avoidance of doubt, Assumed Liabilities shall not include any Excluded Liabilities. 
  

 6 

 (b) At the Closing, the Purchaser shall deliver to the Seller the Assignment and
Assumption Agreements. For the avoidance of doubt it is hereby clarified that the Purchaser’s assumption of liabilities under this Section 1.6 shall be considered part of the consideration paid for the Transferred Assets. Taxes
shall only be an Assumed Liability to the extent provided for in this Section 1.6. 
 1.7 Excluded Liabilities. The Seller
and its Affiliates shall retain and be responsible for all Excluded Liabilities. 
 1.8 Sales and Transfer Taxes; VAT; Tax Matters.

 (a) Any sales taxes, use taxes, transfer taxes, documentary charges, recording fees, Import Duties, filing fees
or similar taxes, charges, fees or expenses (other than Taxes attributable to the Seller’s gain or income from the sale of the Transferred Assets or Seller’s ownership, use and operation of the Business or any Transferred Assets or
expenses associated with a failure by the Seller to appropriately remit Taxes or timely file the appropriate Tax Returns) (all such amounts are collectively referred to herein as “Transfer Taxes”) that may become payable in
connection with the sale of the Transferred Assets to the Purchaser and the assumption by the Purchaser of the Assumed Liabilities or any of the other transactions contemplated by the Transactional Agreements, other than VAT, shall be split evenly
such that one-half of such amounts shall be borne and paid by the Seller and one-half shall be borne and paid by the Purchaser. Notwithstanding the foregoing, the Purchaser shall bear all government fees, Transfer Taxes and other costs that arise
directly as the result of the de-bonding and transfer of the de-bonded Transferred Assets in India, including, without limitation, import duties levied as a direct result of the de-bonding process for assets held by the Seller in a bonded customs
warehouse arrangement under the Software Technology Parks of India program and any costs that would be incurred regardless of whether or not the Transferred Assets are de-bonded shall be split evenly such that one-half of such amounts actually
incurred shall be borne and paid by the Seller and one-half shall be borne and paid by the Purchaser. 
 (b) The
Purchase Price under this Agreement in respect of the sale of the Transferred Assets and the assumption of the Assumed Liabilities is exclusive of any VAT in respect of which the provisions of this Section 1.8(b) shall apply. To the
extent that any relevant jurisdiction provides for relief or exemption from VAT on the transfer of a business or a company or treats such a transaction as being non-taxable for VAT purposes, including as a result of it being a transfer of a going
concern, the Seller and the Purchaser shall each use all reasonable efforts to secure such treatment as regards the sale of the Transferred Assets and the assumption of the Assumed Liabilities (insofar as the Business is carried on in the relevant
jurisdiction) under this Agreement. Such efforts shall, for the avoidance of doubt, include the making of an election or application in respect of VAT in any such jurisdiction or entering into a written agreement. The Purchaser agrees that it will
use the Transferred Assets acquired in carrying on the same kind of business, whether or not as part of its existing business, as the Seller, unless otherwise explicitly stated in this Agreement. 
 If VAT is chargeable, the Seller shall provide the Purchaser with a valid VAT invoice that meets all requirements imposed by the relevant
Governmental Entity with responsibility for Taxes and which specifically states the VAT (or equivalent, if any) and meets 

  

 7 

 
further conditions necessary to allow the Purchaser to obtain relief from such VAT to the extent such relief is available. Provided the Purchaser is in
receipt of a valid VAT invoice, the Purchaser will, subject to the provision of the preceding paragraph, pay to the Seller such VAT in addition to any amounts expressed in this Agreement. 
 The VAT amounts shall be paid in the currency in which the VAT in question must be accounted for in the relevant jurisdiction. 

1.9 Allocation of Purchase Price. The Seller and the Purchaser recognize their mutual obligations pursuant to Section 1060 of the Code
(and any comparable provisions of any other Tax law) to allocate the Purchase Price and all other items properly included in “consideration”, if any, consistent with the principles set forth therein, and to timely file IRS Form 8594 (or
comparable form) and subsequent Forms 8594 (or comparable forms), if any are required, with each of their respective Tax Returns (the “Asset Allocation Statements”). Accordingly, the Seller and the Purchaser agree to cooperate in
the preparation of any Asset Allocation Statements. Within ninety (90) Business Days after the Closing Date, the Purchaser shall deliver to the Seller a statement of allocation of the Purchase Price and all other items properly included in
“consideration,” if any, among the Transferred Assets, which shall be prepared in a manner consistent with the principles set forth in Section 1060 of the Code (the “Allocation”). The Purchaser and the Seller will
endeavor in good faith to resolve any differences with respect to the Allocation within 60 days following the Seller’s receipt of the Allocation from the Purchaser. If the Seller withholds its consent to the Allocation after such 60-day period,
then any remaining disputed matters will be finally and conclusively determined by an independent accounting firm of recognized national standing not otherwise providing services to the Seller or the Purchaser (the “Allocation
Arbiter”) jointly selected by the Purchaser and the Seller. Promptly, but not later than 20 days after its acceptance of appointment hereunder; the Allocation Arbiter will determine (based solely on presentations by the Seller and the
Purchaser and not by independent review) only those matters in dispute and will render a written report as to the disputed matters and the resulting allocation of Purchase Price and all other items properly included in “consideration,” if
any, which report shall be conclusive and binding upon the parties. Each of the Seller and the Purchaser shall (i) be bound by the Allocation for purposes of determining any Taxes, (ii) prepare and file, and cause its Affiliates to prepare
and file, its Tax Returns on a basis consistent with the Allocation, and (iii) take no position, and cause its Affiliates to take no position, inconsistent with the Allocation on any applicable Tax Return or in any proceeding before any taxing
authority or otherwise; provided, however, that nothing contained in this subclause (iii) shall prevent the Purchaser or the Seller from settling any proposed deficiency or adjustment by any taxing authority based upon or arising out of the
Allocation, and neither the Purchaser nor the Seller shall be required to litigate before any court any proposed deficiency or adjustment by any taxing authority challenging such Allocation. In the event that the Allocation is disputed by any taxing
authority, the Party receiving notice of the dispute shall promptly notify the other Party hereto concerning resolution of the dispute. At least three (3) Business Days prior to the Closing, the Seller and the Purchaser shall in good faith
allocate that portion of the Purchase Price representing the Transferred Assets located in India and China. 
  

 8 

 1.10 Ancillary Agreements. At the Closing, the Seller and the Purchaser, or their respective
Affiliates, as applicable, will enter into the following additional agreements to the extent not entered into previously (the “Ancillary Agreements”): 
 (a) the IP License Agreement; 
 (b) the Assignment and Assumption Agreements; 
 (c) the Transition Services
Agreement; 
 (d) the Escrow Agreement; 
 (e) the Local Purchase Agreements; and 
 (f) the Intellectual Property Assignment Agreements. 
 1.11 Closing. The closing of the purchase of the Transferred Assets by the Purchaser (the “Closing”) will take place at the offices of Latham & Watkins LLP, 140 Scott Drive, Menlo
Park, California 94025 at 8:00 A.M. California time, on the third Business Day after the satisfaction or waiver of the last to be satisfied or waived of the conditions set forth in Sections 5 and 6 (other than those conditions that by
their nature are to be satisfied at the Closing but subject to the fulfillment or waiver of those conditions). For purposes of this Agreement, “Closing Date” means the date on which the Closing actually takes place. 
 1.12 Deliveries by the Purchaser. At the Closing, the Purchaser or an Affiliate of the Purchaser shall deliver, or cause to be delivered:

 (a) to the Seller the following (except to the extent actually delivered to the Seller or an Affiliate of the Seller
at or prior to the Closing pursuant to a Local Purchase Agreement): 
 (i) the Cash Closing Payment in immediately available
funds by wire transfer to an account or accounts which have been designated by the Seller at least four (4) Business Days prior to the Closing Date; 
 (ii) a duly executed counterpart of each Assignment and Assumption Agreement and other instruments of assumption or other documents in form and substance reasonably acceptable to the Purchaser and the Seller, as may
be necessary to effect the Purchaser’s assumption of the Assumed Liabilities and the effective assignment of any Transferred Contracts or other Transferred Assets; 
 (iii) a duly executed counterpart of each of the other Ancillary Agreements; 
 (iv) the certificate to be delivered pursuant to Section 6.8; and 
  

 9 

 (v) such other customary instruments of transfer, assumptions, filings or documents, in
form and substance reasonably satisfactory to the Seller, as may be required to give effect to this Agreement. 
 1.13 Deliveries by the
Seller. At the Closing, the Seller or an Affiliate of the Seller shall deliver, or cause to be delivered, to the Purchaser or an Affiliate of the Purchaser the following (except to the extent actually delivered to the Purchaser or one of its
Affiliates at or prior to the Closing pursuant to a Local Purchase Agreement): 
 (a) a duly executed counterpart of
each Assignment and Assumption Agreement, bill of sale and any other appropriate document of transfer in form and substance reasonably acceptable to the Purchaser and the Seller, transferring the tangible personal property included in the
Transferred Assets to the Purchaser and assigning to the Purchaser all rights of the Seller and its Affiliates in and to all of the Transferred Contracts; 
 (b) a duly executed counterpart of each of the other Ancillary Agreements; 
 (c) assignments, in form and substance reasonably acceptable to the Purchaser and, if applicable, as required by any Governmental Entity with which the Seller’s or any of its Affiliates’ rights to any Transferred
Intellectual Property have been filed, assigning to the Purchaser the Transferred Intellectual Property; 
 (d) a duly
executed certification pursuant to Treasury Regulation Section 1.1445-2(b)(2) that the Seller is not a foreign Person; it being understood that notwithstanding anything to the contrary contained herein, if the Seller fails to provide the
Purchaser with such certification, the Purchaser shall be entitled to withhold the requisite amount from the Purchase Price in accordance with Section 1445 of the Code and the applicable Treasury Regulations; 
 (e) evidence of the obtaining of each Seller Required Approval that is a condition to the Purchaser’s obligations under
Section 5.8; 
 (f) the certificate to be delivered pursuant to Section 5.9; and 
 (g) such other customary instruments of transfer, assumptions, filings or documents, in form and substance reasonably satisfactory
to the Purchaser, as may reasonably be deemed necessary or appropriate by the Purchaser to give effect to this Agreement. 
 1.14
Nonassignability of Assets. Notwithstanding anything to the contrary contained in this Agreement, to the extent that the sale, assignment, sublease, transfer, conveyance or delivery or attempted sale, sublease, assignment, transfer, conveyance
or delivery to the Purchaser of any asset that would be a Transferred Asset or any claim or right or any benefit arising thereunder or resulting therefrom is prohibited by any Legal Requirement or would require any Governmental Authorizations or
third party authorizations, approvals, consents or waivers, and such authorizations, approvals, consents or waivers shall not have been obtained prior to the Closing, the Closing shall proceed without the sale, assignment, sublease, transfer,
conveyance or delivery of such asset unless such failure causes a failure of any of the conditions to Closing set forth in Section 5, in which event the Closing shall proceed only if the failed condition is waived by the party or parties
entitled to the benefit thereof. In the event that the 

  

 10 

 
failed condition is waived and the Closing proceeds without the transfer, sublease or assignment of any such asset, then following the Closing, the parties
shall use their reasonable efforts, and cooperate with each other, to obtain promptly such authorizations, approvals, consents or waivers; provided, however, that none of the Seller or the Purchaser or any of their respective
Affiliates shall be required to pay any consideration to obtain any contractual consent or waiver, other than (i) any de minimis fees, expenses or other consideration or (ii) any such fees, expenses or other consideration required
to be paid pursuant to the express provisions of the contract requiring such consent, which consideration, fees or expenses shall be paid by the party obligated to seek such consent, nor shall any such party be required to pay any amounts in respect
of any Governmental Authorization other than filing, recordation or similar fees which shall be shared equally by the Seller and the Purchaser. Pending such authorization, approval, consent or waiver, the parties shall take all reasonable and lawful
arrangements to provide to the Purchaser the benefits of use of such asset and to the Seller or its Affiliates the benefits, including any indemnities, that they would have obtained had the asset been conveyed to the Purchaser at the Closing. Once
authorization, approval, consent or waiver for the sale, assignment, sublease, transfer, conveyance or delivery of any such asset not sold, assigned, subleased, transferred, conveyed or delivered at the Closing is obtained, the Seller shall or shall
cause the relevant Affiliates to, assign, transfer, convey and deliver such asset to the Purchaser at no additional cost. To the extent that any such asset cannot be transferred or the full benefits of use of any such asset cannot be provided to the
Purchaser following the Closing pursuant to this Section 1.14, then the Purchaser and the Seller shall enter into such arrangements (including subleasing, sublicensing or subcontracting) to provide to the parties hereto the economic
(taking into account Tax costs and benefits) and operational equivalent, to the extent permitted, of obtaining such authorization, approval, consent or waiver and the performance by the Purchaser of the obligations thereunder. The Seller shall hold
in trust for and pay to the Purchaser promptly upon receipt thereof, all income, proceeds and other monies received by the Seller or any of its Affiliates in connection with its use of any asset (net of any Taxes and any other costs imposed upon the
Seller or any of its Affiliates) in connection with the arrangements under this Section 1.14. 
 1.15 Affiliate
Acquisitions. Notwithstanding anything to the contrary contained in this Agreement, (i) the Purchaser may elect to have any or all of the Transferred Assets conveyed or transferred to, or any of the Assumed Liabilities assumed by, one or
more of the Purchaser’s Affiliates pursuant to one or more Local Purchase Agreements, and (ii) the Seller may elect to have any or all of the Transferred Assets located outside the United States of America conveyed from or transferred by,
or any of the Assumed Liabilities assigned by, one or more of the Seller’s Affiliates pursuant to one or more Local Purchase Agreements, in each case so long as no such election results in any greater cost or obligation than the Seller or the
Purchaser would otherwise have had; provided, however, that no such election shall relieve the Purchaser or the Seller of any of its obligations to the other Party and such Party’s Affiliates hereunder with respect to any
obligations under this Agreement, the Assumed Liabilities or otherwise. The Purchase Price shall be allocated among those Transferred Assets to be conveyed to the Purchaser and those Transferred Assets to be conveyed to the respective Affiliates of
the Purchaser, but in no event shall the amount of the Purchase Price or any other items to be paid for the Transferred Assets, the nature of the Assumed Liabilities to be assumed, the obligation to pay Taxes or transfer taxes or the allocation of
risk and responsibility between the Seller and the Purchaser be modified to the detriment of the Seller or the Purchaser or any of their respective Affiliates as a result of the delivery of separate bills of sale, assignments and other closing
documents. 
  

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 1.16 Withholding. The Purchaser shall be entitled to deduct and withhold from the consideration
otherwise payable pursuant to this Agreement to the Seller or any other Person such amounts as the Purchaser is required to deduct and withhold under the Code, or any Tax law, with respect to the making of such payment. To the extent that amounts
are so withheld, such withheld amounts shall be treated for all purposes of this Agreement as having been paid to the Person in respect of whom such deductions and withholding was made. 
  

	2.	REPRESENTATIONS AND WARRANTIES OF THE SELLER. 

 The
Seller represents and warrants to the Purchaser, as of the date hereof and as of the Closing, as follows, subject in each case to such exceptions as are specifically set forth in the attached disclosure schedules of the Seller (the “Seller
Disclosure Schedules”), it being understood that each exception set forth in a section or subsection of the Seller Disclosure Schedules shall qualify only the corresponding representation and warranty set forth in this Agreement and shall
qualify other representations and warranties in this Agreement to the extent (but only to the extent) that it is readily apparent on its face from a reading of the Seller Disclosure Schedules that such disclosure is intended to be applicable to such
other representations and warranties: 
 2.1 Due Organization and Qualification. The Seller (and in the case of any Local Purchase
Agreement, the relevant Seller Affiliate) is a legal entity duly organized, validly existing and (to the extent such concept is applicable in such jurisdiction) is in good standing under the laws of its respective jurisdiction of organization and
has all requisite power and authority to own, lease and operate its assets (including any Transferred Assets) and to carry on the Business as currently conducted. The Seller (and in the case of any Local Purchase Agreement, the relevant Seller
Affiliate) is duly qualified to do business and is in good standing as a foreign corporation in each jurisdiction where the ownership or the operation of the Transferred Assets or the conduct of the Business requires such qualification.
Section 2.1 of the Seller Disclosure Schedules lists each Affiliate of the Seller that owns Transferred Assets (each such Affiliate, a “Seller Affiliate,” together the “Seller Affiliates”) and its
jurisdiction of incorporation. 
 2.2 Title to Assets. As of the Closing Date, the Seller (or in the case of any Local Purchase
Agreement, the relevant Seller Affiliate) will have good and valid title to the Transferred Inventory and the Transferred Fixed Assets, free and clear of any Encumbrances, except for Permitted Encumbrances. 
 2.3 Financial Information. The quarterly statements of product line contribution for the fiscal year ended October 3, 2008 and the three
months ended January 2, 2009 set forth in Section 2.3 of the Seller Disclosure Schedules (the “Financial Information”), have been prepared from the books and records of the Seller and present fairly in all material
respects the revenues and direct expenses of the Business for such period. The revenues and direct expenses set forth in the Financial Information were recognized in accordance with the Seller’s historical revenue recognition and expense
policies and practices all of which are consistent with GAAP. Any 

  

 12 

 
allocations made by the Seller and applicable to the expenses recorded on the statements of revenue and expenses included in the Financial Information have
been made and recorded on a systematic and rational basis. The Seller maintains a system of internal accounting controls applicable to the Business sufficient to provide reasonable assurances, with respect to the Seller and its Subsidiaries, that
(i) all transactions are executed in accordance with management’s general or specific authorization and (ii) all transactions are recorded as necessary to permit the preparation of consolidated financial statements in conformity with
GAAP and to maintain proper accountability for items. The Seller’s enterprise-wide system of internal accounting controls is sufficient as applicable to the Seller and its Subsidiaries taken as a whole to provide reasonable assurances that
(i) access to their properties and assets is permitted only in accordance with management’s general or specific authorization and (ii) the recorded accountability for items is compared with the actual levels at reasonable intervals
and appropriate action is taken with respect to any differences. There are no credits, prepaid expenses, deferred charges, advance payments, security deposits, prepaid items or duties that are primarily, but not exclusively, related to any
Transferred Assets that are individually or in the aggregate material to the Business. 
 2.4 Intellectual Property. 
 (a) Section 2.4(a) of the Seller Disclosure Schedules sets forth a complete and accurate list of any and all contracts
pursuant to which the Seller or any of its Subsidiaries has granted to any Person any express right to use, exercise, or otherwise practice any right under any Transferred IP, indicating for each such contract the title, the parties, and the date
executed, other than (i) contracts pursuant to which a customer purchasing or licensing a Seller Product from the Seller in the ordinary course of business acquires only a nonexclusive right to use such product, and (ii) contracts entered
into after the date of this Agreement by the Seller without violation of Section 4.2 (the “Outbound IP Licenses”). 
 (b) Section 2.4(b)(i) of the Seller Disclosure Schedules sets forth a complete and accurate list of any and all written contracts pursuant to which the Seller or any of its Subsidiaries is a party
and has been granted any express right by the other party to use, exercise, or otherwise practice any right under any Intellectual Property of such other party used in or necessary to the conduct of the Business as currently conducted by the Seller,
and which are Transferred Contracts, indicating for each such contract the title, the parties, the date executed, and whether or not it is exclusive (the “Transferred Inbound IP Licenses” and together with the Outbound IP Licenses,
the “IP Contracts”). Section 2.4(b)(ii) of the Seller Disclosure Schedules sets forth a complete and accurate list of any and all written contracts (or, if the Seller is unable to locate a copy of the contract or if the
Seller’s confidentiality obligations under such a contract prevent Seller from disclosing such contract, in lieu of listing such written contract, the Seller may include a description of the Intellectual Property licensed under the contract and
the vendor from whom such Intellectual Property is licensed) pursuant to which the Seller or any of its Subsidiaries has been granted any express right to use, exercise, or otherwise practice any right under any Intellectual Property of such other
party that is related to any Seller Product and either (x) is incorporated into any Seller Product (or any component thereof) or any item of Transferred Non-Patent IP, or (y) comprises a software tool or other Intellectual Property
necessary for the development, design, manufacture, support, maintenance, or distribution of any Seller Product (excluding licenses for general purpose office software, e.g. Microsoft Office, Microsoft 

  

 13 

 
Windows), but which in each case, are not being transferred to the Purchaser as Transferred Contracts, indicating for each such contract or arrangement the
title, the parties, the date executed, and whether or not it is exclusive (the “Non-Transferred Inbound IP Licenses”). 
 (c) The Transferred Non-Patent IP, the Transferred Patents, the Intellectual Property that is the subject of the Transferred Inbound IP Licenses and the Non Transferred Inbound IP Licenses, the Licensed
Non-Patent IP, and the Licensed Patents collectively include all of the Intellectual Property owned by or licensed to the Seller that (i) is incorporated into any Seller Product (or any component thereof), or (ii) comprises a software tool
necessary for the development, design, manufacture, support, maintenance, or distribution of any Seller Product (excluding licenses for general purpose office software, e.g. Microsoft Office, Microsoft Windows). 
 (d) Except pursuant to those outbound Intellectual Property licenses or non-disclosure agreements included on Schedule
1.1(d), consummation of the transactions contemplated by this Agreement will not place the Seller or its Subsidiaries in breach or default of any contract to which Seller is a party, or create any license under or lien on any Transferred IP.
With respect to any of the outbound Intellectual Property licenses or non-disclosure agreements included on Schedule 1.1(d), consummation of the transactions contemplated by this Agreement will not result in a breach or default of any such
Transferred Contracts, or trigger any modification, termination or acceleration thereunder, or create any license under or lien on any Transferred IP, except to the extent such breach, default, modification, termination, acceleration, license or
lien does not, individually or in the aggregate, have a materially adverse effect on the Transferred IP, taken as a whole. 
 (e) Except as set forth in Section 2.4(e) of the Seller Disclosure Schedules, immediately prior to the Closing, the Seller (or in the case of any Local Purchase Agreement, the relevant Seller Affiliate) will exclusively
own (beneficially and in the case of Patents or otherwise as applicable, of record), and will assign, transfer and convey to the Purchaser all right, title, and interest to and in all Transferred IP free and clear of any liens or other material
encumbrances (other than encumbrances arising under the Outbound IP Licenses). 
 (f) The Seller and its Subsidiaries
have taken commercially reasonable steps to preserve the confidential nature of the Transferred IP that they, in their reasonable business judgment, determine should be held as confidential or proprietary (including, without limitation, any trade
secrets). Without limiting the foregoing, the Seller and its Subsidiaries have enforced a policy of requiring each employee, consultant, contractor, and potential business partner or investor receiving access to such Transferred IP to execute
confidentiality agreements substantially consistent with the Seller’s standard forms thereof (complete and current forms of which have been delivered or made available to the Purchaser). 
 (g) To the Seller’s Knowledge, all Registered IP (other than pending applications for Registered IP) is valid, subsisting, and
enforceable. The Seller is not subject to any outstanding order, judgment or decree issued by a court of competent jurisdiction adversely affecting the Seller’s or its Subsidiaries’ use of, or rights to, any Transferred IP. All filings,
payments, and other actions required to be made or taken to maintain each item of Registered IP in full force and effect have been made by the applicable deadline. As of the date of this 

  

 14 

 
Agreement, Schedule B contains a complete and accurate list of all actions (including payment of fees) necessary within the 120 day period following
the Closing Date, to maintain or otherwise to keep in full force and effect the Registered IP. As of the date of this Agreement, except as set forth on Schedule B, neither Seller’s legal department, Seller’s outside patent counsel
retained to handle the relevant matter, nor any of Seller’s officers has been notified in writing of any pending or threatened interference, opposition, reissue, reexamination, or other legal proceeding in which the scope, validity, ownership,
right to use, or enforceability of any Transferred IP is being contested or challenged. The Seller shall update Schedule B such that it is complete and accurate as of two (2) days prior to the Closing Date and shall deliver such updated
schedule to the Purchaser two (2) days prior to the Closing Date. 
 (h) Except as set forth in
Section 2.4(h) of the Seller Disclosure Schedules, the conduct of Business as currently conducted (including the development, manufacture, use and sale of any Seller Products) does not infringe upon, misappropriate, or violate any
Intellectual Property Rights of any Person. Except as set forth in Section 2.4(h) of the Seller Disclosure Schedules, since January 1, 2005, neither the Seller nor any of its Subsidiaries has been notified in writing of any
allegation that (i) any conduct of the Business or any Seller Product infringes upon, misappropriates or violates the Intellectual Property Rights of any Person, or (ii) any particular Seller Product requires a license under the
Intellectual Property Rights of any Person. 
 (i) Except to the extent disclosed in Section 2.4(i) of the
Seller Disclosure Schedules, neither Seller’s legal department, Seller’s outside patent counsel retained to handle the relevant matter, nor any of Seller’s officers has been notified in writing of any litigation, opposition,
cancellation, proceeding, objection, or claim pending, asserted or threatened against the Seller or its Subsidiaries concerning the ownership, validity, registerability, enforceability, infringement or use of, or licensed right to use, any
Transferred Intellectual Property or Licensed Non-Patent IP. 
 (j) No claims for misappropriation, infringement,
dilution or violation of any Transferred IP have been brought or threatened against any Person by or on behalf of the Seller or any of its Subsidiaries, and the Seller has no specific Knowledge that any Person is misappropriating, infringing,
diluting or violating any specific Transferred IP. 
 (k) Except as set forth in Section 2.4(k) of the
Seller Disclosure Schedule, the software owned by the Seller or its Affiliates and included in the Transferred IP is not the subject of any escrow, or similar agreement or arrangement, giving any third party rights to the source code for such
software upon the occurrence of certain events, except where such rights to the source code do not, individually or in the aggregate, have a materially adverse effect on the Transferred IP, taken as a whole. 
 (l) Section 2.4(l)(i) of the Seller Disclosure Schedules sets forth a complete and accurate list of the Seller Products
that are, in whole or in part, subject to any open source or other type of license or agreement that: (i) conditions the licensing, distribution or making available of the Seller Products on the disclosure or provision of all or a portion of
the source code for such Seller Products, (ii) prohibits or limits the Seller or any of its Subsidiaries from charging a fee or receiving consideration in connection with licensing, sublicensing, or 

  

 15 

 
distributing any Seller Products, or (iii) requires the licensing of any Seller Product for the purpose of making derivative works (any such open source
or other type of license or agreement described in clause (i), (ii), or (iii) above, a “Limited License”). By way of clarification, but not limitation, the term “Limited License” shall include:
(A) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL); (B) the Artistic License (e.g., PERL); (C) the Mozilla Public License; (D) the Netscape Public License; (E) the Sun Community Source License (SCSL);
and (F) the Sun Industry Standards License (SISL). Except as set forth in Section 2.4(l)(ii) of the Seller Disclosure Schedules, the Seller has not distributed any Seller Products in a manner that would require the Seller to make available
under a Limited License the source code for the DSL Products’ data pump firmware that is contained in the Transferred IP. 
 (m) Except as set forth in Section 2.4(m) of the Seller Disclosure Schedules, no government funding, facilities of a university, college, other educational institution, or research center was used in the creation or
development of the Transferred IP in a manner that would give such government, university, college, educational institution, or research center any rights in the Transferred IP as a result. 
 (n) Except for those exclusive licenses to the Transferred IP included in the outbound Intellectual Property licenses or
non-disclosure agreements included on Schedule 1.1(d), the Seller has not granted any exclusive licenses to any of the Transferred IP. The exclusive licenses granted under any of the outbound Intellectual Property licenses or non-disclosure
agreements included on Schedule 1.1(d) do not, individually or in the aggregate, have a materially adverse effect on the Transferred IP, taken as a whole. 
 (o) As of the Closing Date, except as set forth in Section 2.4(o) of the Seller Disclosure Schedules, the Seller (or in
the case of any Local Purchase Agreement, the relevant Seller Affiliate) will have good and valid title to the Transferred Intellectual Property, free and clear of any Encumbrances, except for Permitted Encumbrances. 
 (p) Notwithstanding any provision of this Agreement to the contrary, the Seller makes no representations or warranties with respect
to the Other Transferred Patents. 
 2.5 Transferred Contracts. Each Transferred Contract identified on Schedule 1.1(d) is
valid, is in full force and effect and is enforceable against each party thereto in accordance with the express terms thereof, and will continue to be so immediately following the consummation of the transactions contemplated by this Agreement,
except as such enforceability may be limited by: (a) laws of general application relating to bankruptcy, insolvency and the relief of debtors; and (b) rules of law governing specific performance, injunctive relief and other equitable
remedies. With respect to each Transferred Contract: (a) the Seller has not (and to the Seller’s Knowledge no other Person has), and the Seller has not received any written notice claiming that the Seller has, breached or violated such
Transferred Contract and (b) there has not been an event of default, or any event or condition that, after notice or lapse of time or both, would constitute a violation, breach or event of default thereunder on the part of the Seller, or to the
Seller’s Knowledge, any other party thereto. There are no material disputes pending or to the Seller’s Knowledge threatened under any Transferred Contract. No party to any Transferred Contract has given written notice to the other party to
such contract of its intention to terminate, change the scope of rights under, or fail to renew such contract. Except for the Non-Transferred 

  

 16 

 
Inbound IP Licenses and except as set forth in Section 2.5 of the Seller Disclosure Schedules, the Transferred Contracts identified on
Schedule 1.1(d) are all the material contracts of the Seller and its Affiliates primarily related to the Business or necessary for the design, development, engineering-related technical support or engineering of the Seller Products as that
work is currently conducted by the Seller. 
 2.6 Compliance with Legal Requirements. Except as set forth in Section 2.6
of the Seller Disclosure Schedules, (a) The Seller and each of its Affiliates has at all relevant times and currently is conducting the Business and operating the Transferred Assets in compliance in all material respects with all Legal
Requirements relevant to the ownership, operation or use of the Business or the Transferred Assets; (b) neither the Seller nor any of its Affiliates has received any written notice alleging any failure to comply with any Legal Requirement
relating to the ownership, operation or use of the Business or the Transferred Assets; (c) the Seller and each of its Affiliates possess all Governmental Authorizations necessary for the ownership, operation or use of the Business or the
Transferred Assets as currently operated or used each of which is valid and in full force and effect and (d) no Governmental Authorizations or Non-Governmental Authorizations or applications therefor are required to be held by the Seller or any
of its Affiliates that are specific to the design, manufacture, sale and distribution of any Seller Products (as opposed to other goods, products or services). 
 2.7 Employee Matters. 
 (a) Section 2.7(a) of the Seller Disclosure
Schedules specifies, with respect to each Specified Employee as of the date of this Agreement: (i) the original date of employment of such employee; (ii) the position held by such employee as of the date of this Agreement;
(iii) whether such employee is not available to perform work as of the date of this Agreement because of disability or other leave; (iv) location of such employee; (v) total annual remuneration, including a breakdown of salary, bonus,
commissions or other incentive compensation for the twelve (12) month period preceding the date of this Agreement; (vi) for any benefit that takes into account length of service to the employer, the date upon which each such term of
employment with the Seller or any of its Subsidiaries became effective; (vii) employment authorization or work visa status; and (viii) all amounts payable with respect to such employee including for accrued but unpaid vacation and other
paid time off, if such employee were terminated without cause on or prior to a date within one hundred twenty (120) days of the date hereof, all separately stated for each element of such total amount payable. 
 (b) With respect to the Specified Employees: (i) no collective bargaining or other agreement exists between the Seller and any
labor organization, trade union or works counsel; (ii) the Seller has not received written notice that any labor representation question presently exists, and, to the Seller’s Knowledge, no petition concerning representation under the
National Labor Relations Act, as amended, or other labor or employment law is pending or threatened; (iii) no unfair labor practice charge or complaint is pending or, to the Seller’s Knowledge, threatened, before the National Labor
Relations Board or similar agency or entity; and (iv) there is, and during the three years immediately preceding the date of this Agreement there has been, no labor dispute, strike, picketing, work slowdown, work stoppage or handbilling pending
or, to the Seller’s Knowledge, threatened. 
  

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 (c) All amounts owing in respect of Specified Employees’ vacation pay and
holiday pay have been fully accrued in the Seller’s books and records and reflected as such in the Seller’s financial statements. 
 2.8 Employee Benefits; ERISA. 
 (a) Section 2.8(a) of the Seller Disclosure Schedules sets
forth a true and complete list of: (i) all “employee benefit plans” (within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) and any other material
employee benefit or compensation plans, policies, trust funds or arrangements (whether written or unwritten, insured or self-insured, domestic or foreign) maintained or contributed to (or with respect to which an obligation to contribute has been
undertaken) by the Seller or any Affiliate of the Seller on behalf of any employee of the Business or their dependents, spouses, or beneficiaries, including any material plan, policy or arrangement providing for health, life, vision or dental
insurance coverage, workers’ compensation, disability benefits, supplemental unemployment benefits, vacation benefit, fringe benefits, for profit sharing, deferred compensation, bonuses, stock options, stock appreciation or other forms of
incentive compensation or post-retirement insurance, compensation or benefits and (ii) other than individual employment agreements or offer letters executed in substantially the Seller’s (or its applicable Affiliate’s) form of
employment agreement or offer letter, copies of which have been made available to the Purchaser, all material contracts with any employee of the Business, including any employment, termination, severance, retention, non-competition, compensation or
change in control arrangements or any arrangement relating to a sale of the Business (each a “Seller Plan”). True and complete copies of each of the Seller Plans, amendments thereto and all related service agreements, summaries and
summary plan descriptions have been made available to the Purchaser. 
 (b) None of the Seller, any entity that would
be deemed a “single employer” with the Seller under Section 414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA (an “ERISA Affiliate”) or any of their respective predecessors has contributed
to, contributes to, has been required to contribute to, or otherwise participated in or participates in or in any way has any liability, directly or indirectly with respect to (i) any plan subject to Section 412 of the Code,
Section 302 of ERISA or Title IV of ERISA, including any “multiemployer plan” (within the meaning of Sections 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Code) or any single employer pension plan (within the meaning of
Section 4001(a)(15) of ERISA) that is subject to Sections 4063, 4064 or 4069 of ERISA or Section 413(c) of the Code that covered or has covered any employee or former employee of the Business; or (ii) any plan or arrangement that
provides for post-employment medical, life insurance or other welfare-type benefits (other than health continuation coverage required by Section 4980B of the Code and Title I, Subtitle B, Part 6 of ERISA (“COBRA”)). 

(c) Except as set forth on Section 2.8(c) of the Seller Disclosure Schedules, (i) none of the Seller Plans
obligates the Seller or any Affiliate of the Seller to pay any separation, severance, termination or similar benefit or will result in any increased payment becoming due to any Specified Employee solely as a result of the transactions contemplated
by this Agreement, and (ii) no employee of the Business is eligible for short-term or long-term disability insurance benefits as of the Closing Date. 
  

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 2.9 Legal Proceedings. 
 (a) Except as set forth on Section 2.9 of the Seller Disclosure Schedules, there is no civil, criminal or
administrative action, suit, demand, claim, hearing, proceeding or investigation pending or, to the Seller’s Knowledge, threatened against the Seller as of the date of this Agreement that is against, relates to or involves the Transferred
Assets, the Business or the transaction contemplated hereby. 
 (b) None of the Transferred Assets is subject to any
order, writ, judgment, award, injunction or decree of any court or Governmental Entity of competent jurisdiction or any arbitrator or arbitrators. 
 2.10 Authority. The Seller (and in the case of any Local Purchase Agreement, the relevant Seller Affiliate) has full corporate power and authority to execute and deliver each Transactional Agreement and to perform its obligations
under the Transactional Agreements; and the execution, delivery and performance by the Seller (and in the case of any Local Purchase Agreement, the relevant Seller Affiliate) of the Transactional Agreements have been duly and validly authorized and
no additional authorization or consent is required in connection with the performance of the Transactional Agreements. In particular, the Seller does not require an affirmative vote of its stockholders, whether under Section 271 of the DGCL or
otherwise, to enter into, perform its obligations under or consummate the transactions contemplated by this Agreement or any of the other Transactional Agreements. 
 2.11 Binding Nature of Agreements. This Agreement constitutes, and, upon execution and delivery thereof, each of the other Transactional Agreements will constitute, the valid and legally binding obligation of
the Seller and each applicable Seller Affiliate party thereto, enforceable against the Seller and each applicable Seller Affiliate party thereto in accordance with its terms, except such enforceability may be limited by: (a) laws of general
application relating to bankruptcy, insolvency and the relief of debtors; and (b) rules of law governing specific performance, injunctive relief and other equitable remedies. 
 2.12 Non-Contravention; Consents. The execution, delivery and performance by the Seller and the Seller Affiliates of this Agreement and the other
Transactional Agreements and the consummation of the transactions contemplated hereby and thereby do not and will not: (a) conflict with or result in any violation of any provision of the certificate of incorporation, bylaws or other charter or
organizational documents of the Seller or any of its Affiliates; (b) assuming the receipt of all consents, approvals, waivers and authorizations and the making of the notices and filings set forth on Section 2.12 of the Seller
Disclosure Schedules (collectively, the “Seller Required Approvals”), (i) conflict with, contravene or result in a violation or breach of, or constitute a default under, or result in the termination, modification or
acceleration (whether after the filing of notice or the lapse of time or both) of any right or obligation of the Seller or any of its Affiliates under, or result in a loss of any material benefit to which the Seller or any of its Affiliates is
entitled under, any Transferred Contract (excluding any outbound Intellectual Property licenses and non disclosure agreements included on Schedule 1.1(d), where any such conflict, contravention, violation, breach, default, termination,
modification, acceleration or loss does not, individually or in the aggregate, have a materially adverse effect on the Transferred IP, taken as a whole) or any other contract that would reasonably be expected to 

  

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materially interfere with the Transactions, or (ii) violate or result in a breach of or constitute a default under any Legal Requirement applicable to
the Seller or any of its Affiliates; or (c) result in the creation of any Encumbrance upon any of the Transferred Assets. 
 2.13
Taxes. Except as provided in Section 2.13 of the Seller Disclosure Schedules, all of the Tax Returns required to be filed by the Seller or any of its Affiliates on or before the date hereof that relate to the Business or the
Transferred Assets have been filed and all such Tax Returns required to be filed on or before the Closing Date will have been filed on or before the date on which they are required to be filed and all such Tax Returns were when filed, and are, true,
complete and correct in all material respects. All Taxes (whether or not shown on any Tax Return) required to be paid by the Seller prior to the Closing that relate to the Business or the Transferred Assets have been (or with respect to those not
required to be paid as of the date hereof will prior to the Closing be) paid in full. No statute of limitations has been extended or waived by any Tax authority with respect to any Taxes or Tax Returns referred to in the two preceding sentences. No
issues that have been raised by the relevant taxing authority in connection with any examination of the Tax Returns referred to in this Section 2.13 are currently pending, and all deficiencies asserted or assessments made, if any, as a
result of such examinations have been paid in full. There are no Encumbrances (other than Permitted Encumbrances) for Taxes upon any of the Transferred Assets nor, to the Seller’s Knowledge, is any taxing authority in the process of imposing
any Encumbrances for Taxes on any of the Transferred Assets. 
 2.14 Territorial Restrictions. None of the Seller or any of its
Affiliates is restricted by any agreement with any Person (other than the Purchaser) from carrying on the Business anywhere in the world or from expanding the Business in any way or entering into any new businesses, except for such restrictions that
do not apply to any of the Business, the Transferred Assets or the Purchaser following the Closing. 
 2.15 Absence of Changes. Since
October 3, 2008, (a) the Seller and its Affiliates have owned and operated the Transferred Assets and conducted the Business only in the ordinary course of business, (b) no event or condition has occurred or exists, and to the
Seller’s Knowledge no event or condition is threatened, that, individually or in the aggregate, has had or is reasonably likely to have, a Seller Material Adverse Effect and (c) none of the actions or events prohibited or circumscribed by
Section 4.2 have been taken or have occurred, except as disclosed in Section 2.15 of the Seller Disclosure Schedules or permitted by this Agreement. 
 2.16 Assets, Properties. 
 (a) Other than the material tangible assets and material services (i) used or provided by the Seller’s internal business support and general and administrative functions, such as, but not limited to, legal, sales, finance,
human resources, information technology, manufacturing, process engineering and back end operations, (ii) used or provided by the Seller under the Transition Services Agreement, or (iii) included in the Excluded Assets, the Transferred
Assets, when taken together with the Purchaser’s rights under the other Ancillary Agreements, constitute all of the material tangible assets and material services of the Seller and its Affiliates primarily used in, primarily related to or
necessary to conduct the Business as currently conducted. 
  

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 (b) As of the date hereof, no Transferred Asset is owned by any entity other than
the Seller or the relevant Seller Affiliate. As of the Closing Date, no Transferred Asset will be owned by any entity other than the Seller (or in the case of any Local Purchase Agreement, the relevant Seller Affiliate). 
 2.17 Customers and Suppliers. No customer or supplier material to the Business as currently conducted or as proposed to be conducted by the
Seller, has canceled or otherwise terminated any contract with the Seller relevant to the Business prior to the expiration of such Transferred Contract’s term, or, to the Seller’s Knowledge, has threatened to cancel or otherwise terminate
its relationship with the Seller or to substantially reduce its sales to or purchases from the Seller of any Seller Product. 
 2.18
Seller Products and Inventory. 
 (a) (i) Neither the Seller nor any of its Affiliates has made or provided a
warranty, express or implied, written or oral, with respect to the Seller Products other than pursuant to the Seller’s standard terms and conditions as identified in Section 2.18(a) of the Seller Disclosure Schedules and which have
been made available to the Purchaser; (ii) as of the date hereof there are no pending or, to the Seller’s Knowledge, threatened claims, and neither the Seller nor any of its Affiliates have been notified in writing of any claims, relating
to any warranty obligations, failure to meet warranties or material product returns; (iii) there are no statements, citations or decisions by any Governmental Entity declaring any of the Seller Products defective or unsafe; (iv) there have
been no recalls, including any recalls ordered by any Governmental Entity, with respect to any Seller Product; and (v) there are no pending, or, to the Seller’s Knowledge, threatened, and neither the Seller nor any of its Affiliates have
been notified in writing of, any material claims relating to product liability against or involving the Seller or any Seller Product and no such claims have been settled or adjudicated. All of the Seller Products comply in all material respects with
applicable authorizations, permits or licenses of any Governmental Entity and all applicable Legal Requirements. Each Seller Product that is sold or licensed by the Seller or any of its Affiliates is designed and manufactured, and functions and
operates, in all material respects in accordance with the product’s intended use as described in the applicable Seller marketing material for such Seller Product, and has conformed and complied in all material respects with the terms and
requirements of any applicable warranty or contract made by the Seller or its Affiliates. 
 (b) All of the Transferred
Inventory has been created or acquired in the ordinary course of business, and, as of the date of this Agreement, is fit for the purpose for which it was procured or manufactured and such Transferred Inventory (i) is not obsolete, damaged or
defective, and (ii) is of a good quality usable (as to raw materials or work in process) or saleable (as to finished goods) in the ordinary course of business, subject in the case of clauses (i) and (ii) to reserves therefor recorded
in accordance with GAAP and reflected in the Financial Information. Section 2.18(b) of the Seller Disclosure Schedules sets forth the Transferred Inventory as of April 3, 2009. 
  

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 2.19 Export Controls, Trade Sanctions and Certain Payments. 
 (a) The Seller has in the conduct of the Business and the ownership and operation of the Transferred Assets complied in all
material respects with all statutory and regulatory requirements relating to export controls and trade sanctions under all applicable Legal Requirements of each jurisdiction in which the Seller conducts the Business or holds any Transferred Assets,
including the International Traffic in Arms Regulations, the Export Administration Regulations, antiboycott provisions, regulations administered by the Office of Foreign Assets Control, and provisions under the Foreign Corrupt Practices Act.

 (b) The Seller does not maintain or conduct, and has not maintained or conducted, any business, investment,
operation or other activity in the conduct of the Business and the ownership, operation or use of the Transferred Assets in or with: (i) any country or person targeted by any of the economic sanctions of the United States of America
administered by the United States Treasury Department’s Office of Foreign Assets Control; (ii) any person appearing on the list of Specially Designated Nationals and Blocked Persons issued by the United States Treasury Department’s
Office of Foreign Assets Control; or (iii) any country or person designated by the United States Secretary of the Treasury pursuant to the USA PATRIOT Act as being of “primary money laundering concern.” 
 (c) No director, officer, agent, or employee of the Seller, or any other Person associated with or acting for or on behalf of the
Seller, has in the conduct of the Business and the ownership operation, or use of the Transferred Assets directly or indirectly (i) made any contribution, gift, bribe, rebate, payoff, influence payment, kickback, or other payment to any Person,
private or public, regardless of form, whether in money, property, or services in violation of any Legal Requirements or of the Seller’s code of business conduct or other written policy of the Seller or any of its Affiliates; or
(ii) established or maintained any fund or asset that has not been properly recorded in the books and records of the Seller. 
 2.20
Continued Employment. As of the date of this Agreement, the Key Employee has not given written notice to the Seller to resign from his employment or has terminated his employment nor is an officer of the Seller actually aware of the Key
Employee’s intention to resign from his employment. 
 2.21 Disclosure. To the Seller’s Knowledge, no representation or
warranty by the Seller contained in this Agreement, and no statement contained in the Seller Disclosure Schedules or the Transactional Agreements contains or will contain any untrue statement of a material fact or omits or will omit to state any
material fact necessary, in light of the circumstances under which it was or will be made, in order to make the statements herein or therein not misleading. 
 2.22 Financial Advisor. Except for Credit Suisse Securities (USA) LLC, the fees and expenses of which are payable by the Seller, no broker, finder or investment banker is entitled to any brokerage,
finder’s or other fee or commission in connection with the Transactions based upon arrangements made by or on behalf of the Seller. 
  

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 2.23 Opinion of Financial Advisor. The Seller has received the opinion of Credit Suisse Securities
(USA) LLC, financial advisor to the Seller, dated as of the date hereof, to the effect that as of the date of such opinion, the Purchase Price to be received by the Seller in exchange for the Transferred Assets is fair to the Seller from a financial
point of view, a written copy of which opinion has been delivered or will be delivered promptly after the date hereof to the Purchaser for informational purposes only and the Purchaser agrees to keep the opinion confidential and not further
distribute it, except that the Purchaser may also provide a copy of the opinion to TWVC as long as TWVC also agrees to keep such opinion confidential and not further distribute the opinion. 
 2.24 Valuation Analysis. 
 (a) The Seller will use its commercially reasonable efforts to seek a valuation analysis of the Transferred Assets for the purpose of delivering such valuation to the trustee (the “Trustee”) under the indenture
governing the Seller’s senior secured notes (the “Indenture”). 
 (b) With respect to the
Indenture: (i) the Seller has not (and to the Seller’s Knowledge no other Person has), and the Seller has not received any written notice claiming that the Seller has, breached or violated such Indenture and (ii) there has not been an
event of default. 
  

	3.	REPRESENTATIONS AND WARRANTIES OF THE PURCHASER. 

 The Purchaser represents and warrants to the Seller as follows, subject in each case to such exceptions as are specifically set forth in the attached disclosure schedules of the Purchaser (the “Purchaser Disclosure
Schedules”), it being understood that each exception set forth in a section or subsection of the Purchaser Disclosure Schedules shall qualify only the corresponding representation and warranty set forth in this Agreement: 
 3.1 Due Organization. The Purchaser is a corporation duly organized, validly existing and in good standing under the laws of the state of
Delaware. The Purchaser has all requisite corporate power and authority to own and operate its assets and to carry on its business as currently conducted. 
 3.2 Authority. The Purchaser has full corporate power and authority to execute and deliver each Transactional Agreement to which it is or may become a party and to perform its obligations under each
Transactional Agreement to which it is or may become a party; and the execution and delivery by the Purchaser of each Transactional Agreement to which the Purchaser is or may become a party have been duly and validly authorized by all necessary
action on the part of the Purchaser, and no additional corporate or stockholder authorization or consent is required in connection with the performance of the Transactional Agreements except for the Requisite Stockholder Approval (as defined in the
Securities Purchase Agreement). Except for the Requisite Stockholder Approval (as defined in the Securities Purchase Agreement) in connection with the transactions contemplated by the Securities Purchase Agreement, no vote of the shareholders of the
Purchaser is required to authorize the transactions contemplated by this Agreement. 
  

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 3.3 Binding Nature of Agreements. This Agreement constitutes, and, upon execution and delivery
thereof, each of the other Transactional Agreements will constitute, the valid and legally binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except such enforceability may be limited by:
(a) laws of general application relating to bankruptcy, insolvency and the relief of debtors; and (b) rules of law governing specific performance, injunctive relief and other equitable remedies. 
 3.4 Non-Contravention; Consents. The execution, delivery and performance by the Purchaser of this Agreement and the other Transactional
Agreements, and the consummation of the transactions contemplated hereby and thereby do not and will not: (a) conflict with or result in any violation of any provision of the certificate of incorporation or bylaws of the Purchaser;
(b) result in a breach or constitute a default by the Purchaser under, any material contract to which the Purchaser is a party; or (c) violate or result in a breach of or constitute a default under any Legal Requirement or order applicable
to the Purchaser. The Purchaser is not and will not be required to obtain any Consent from any Person in connection with the execution, delivery or performance of any of the Transactional Agreements or the consummation of any of the transactions
contemplated hereby or thereby. 
 3.5 Cash Consideration. On the Closing Date, the Purchaser will have sufficient funds to enable it
to pay the Purchase Price and perform its obligations under this Agreement and any other Transactional Agreements. 
 3.6 Financial
Advisor. Except for Barclays Capital Inc., the fees and expenses of which shall be paid by the Purchaser, no broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the
Transactions based upon arrangements made by or on behalf of the Purchaser. 
  

	4.	PRE-CLOSING COVENANTS. 

 4.1 Access. Subject
to compliance by the Purchaser with the terms of the Confidentiality Agreement and subject to applicable Legal Requirements regarding confidentiality of employee information, during the period from the date of this Agreement through the Closing Date
(the “Pre-Closing Period”), the Seller will, after receiving reasonable advance notice from the Purchaser, give the Purchaser reasonable access (during normal business hours) to those of its books and records relating to the
Business or the Transferred Assets, and will provide the Purchaser with such information regarding the Business and the Transferred Assets as the Purchaser may reasonably request, for the sole purposes of enabling the Purchaser (a) to further
investigate, at the Purchaser’s sole expense, the Transferred Assets and the Hired Employees; and (b) to verify the accuracy of the representations and warranties set forth in Section 2; provided, however, that
such access shall not interfere with the normal business and operations of the Seller and shall be in compliance in all material respects with all requirements set forth in any applicable real property lease. 
 4.2 Conduct of Business. Except (i) as contemplated or permitted by (x) this Agreement, (y) any of the Ancillary Agreements, or
(z) Section 4.2 of the Seller Disclosure Schedules or (ii) as approved in writing by the Purchaser during the Pre-Closing Period: 
 (a) the Seller will (i) conduct the Business and own, operate and use the Transferred Assets in the ordinary course and consistent with its past practices; and (ii) use reasonable efforts to preserve
intact the Business and the Transferred Assets and maintain good relations with the Hired Employees, the parties to the Transferred Contracts and any other customer, supplier or creditor of the Business; 
  

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 (b) the Seller will not: 
 (i) sell, lease, license, transfer or dispose of any Transferred Assets (other than (A) sales of Inventory in the ordinary course of
business and in compliance with the limitations in Section 1.4, and (B) grants of non-exclusive licenses to use IP contained in a Seller Product in connection with sales of Seller Products to customers in the ordinary course of
business consistent with past practice); 
 (ii) incur, create or assume any Encumbrance on any of the Transferred Assets
other than a Permitted Encumbrance; 
 (iii) terminate or extend or modify any (individually or in the aggregate) material
Transferred Contract except with the prior consent of the Purchaser (which consent shall not be unreasonably conditioned, withheld or delayed); 
 (iv) enter into any material contract, arrangement or commitment with respect to the Business or the Transferred Assets other than in the ordinary course of business consistent with past practice, provided that such
ordinary course contract, arrangement or commitment does not (A) license any IP (other than a non-exclusive license to use IP contained in a Seller Product) or (B) impose any material restriction or limits the right or ability of the
Seller or any of its Subsidiaries or any of their respective Affiliates, or, after the Closing, the right or ability of the Purchaser or any of its respective Affiliates, (x) to compete in any line of business, in any geographic area or with
any Person, or pursuant to which any benefit or right is required to be given or lost as a result of so competing or engaging, or which would have any such effect after the Closing Date, or (y) to develop, distribute or license any Intellectual
Property or Intellectual Property Rights (other than grants of non-exclusive licenses to use IP contained in a Seller Product in connection with sales of Seller Products to customers in the ordinary course of business consistent with past practice);

 (v) dispose of or permit to lapse any rights in, to or for the use of any Transferred IP (except that the Seller may allow
its national/regional phase filing rights to lapse in foreign counterparts to such Transferred IP if the Purchaser, after reasonable notice from the Seller, elects not to reimburse the Seller for all costs incurred in connection with such filings;
and the limiting or elimination of claims as part of Seller’s patent prosecution practices conducted in the ordinary course of business consistent with past practice shall not be deemed a disposal or lapse of such rights); or disclose to any
Person not an employee any information related to the Transferred IP that the Seller, in its reasonable business judgment, determines should be held as confidential or proprietary, except pursuant to binding confidentiality obligations in the
ordinary course of business, or pursuant to judicial or administrative process; 
 (vi) (A) increase the compensation of
any of the Specified Employees except for periodic merit increases in the ordinary course of business or pursuant to the terms of agreements or plans currently in effect and listed on Section 4.2(b)(vi) of the Seller Disclosure 

  

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Schedules, (B) except as required by applicable Legal Requirements, pay or agree to pay or increase or agree to increase any pension, retirement
allowance, severance or other employee benefit not already required or provided for under any existing Seller Plan or arrangement to any Specified Employee, or (C) hire for the Business as a Specified Employee any employee or individual
independent contractor with annual compensation in excess of $150,000, other than to fill vacancies arising in the ordinary course of business at compensation levels not in excess of those prevailing in the market and in any event not at an annual
compensation level that exceeds 125% of the annual compensation of the departed employee, or enter into any new employment or severance agreements that would result in post-termination payments becoming due or payable upon termination of such
employment or independent contractor arrangement; 
 (vii) assume or enter into any labor or collective bargaining agreement
relating to the Business; 
 (viii) settle any claims, actions, arbitrations, disputes or other proceedings (A) that
would restrict the Seller or any of its Affiliates in any respect material to the Transaction, the Transferred Assets or the Business, (B) that would adversely affect the Transferred Assets or the Business in any material respect, or
(C) for any amount that would not by its terms be an Excluded Liability; 
 (ix) accelerate the delivery or sale of any
Seller Products or the recognition of revenue from any such sale, or offer discounts on sale of any Seller Products or premiums on purchase of raw materials, except in the ordinary course of business consistent with historical practice in the
Seller’s conduct of the Business; 
 (x) knowingly take any other act that is reasonably likely to (A) cause any
representation or warranty of the Seller in this Agreement to be or become untrue in any material respect or (B) result in the failure of any condition precedent to be satisfied; or 
 (xi) authorize or enter into any agreement or commitment with respect to any of the foregoing. 
 4.3 Filings. 
 (a) Each Party shall use commercially reasonable efforts to file as soon as practicable after the date of this Agreement, but in no event later than fifteen (15) days following the date hereof, all notices, reports and other
documents required to be filed by such Party with any Governmental Entity with respect to the Transactions, and to submit promptly any additional information requested by any such Governmental Entity. Without limiting the generality of the
foregoing, the Purchaser shall promptly (and, subject to compliance by the Parties with the first sentence of Section 4.3(b), in any event within 15 days) after the date of this Agreement file the notifications required under applicable
antitrust, competition or fair trade laws or regulations (collectively, the “Antitrust Laws”) in connection with the Transactions, including, if applicable, filing with the Federal Trade Commission and the Antitrust Division of the
Department of Justice of Notification and Report Forms relating to the Transactions as required by the HSR Act. The Parties shall respond as promptly as practicable to any inquiries or requests received from any Governmental Entity and promptly
inform the other Parties of any communication to or from any Governmental Entity, in each case regarding the Transactions. 
  

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 (b) Subject to the confidentiality provisions of the Confidentiality Agreement,
each Party shall promptly supply the other Party with any information which may be required in order to effectuate any filings (including applications) pursuant to (and to otherwise comply with its obligations set forth in)
Section 4.3(a). Except where prohibited by applicable Legal Requirements or any Governmental Entity, and subject to the confidentiality provisions of the Confidentiality Agreement, each of the Parties shall: (i) consult with the
other Party prior to making any such filing and taking a position with respect to any such filing; (ii) permit the other to review and discuss in advance, and consider in good faith the views of the other Party in connection with, any analyses,
appearances, presentations, memoranda, briefs, white papers, arguments, opinions and proposals before making or submitting any of the foregoing to any Governmental Entity by or on behalf of any Party in connection with any legal proceeding related
solely to the Transactional Agreements and the Transactions (including any such legal proceeding relating to any Antitrust Law); (iii) coordinate with the other Party in preparing and exchanging such information; and (iv) promptly provide
the other Party (and their counsel) with copies of all filings, notices, analyses, presentations, memoranda, briefs, white papers, opinions, proposals and other submissions (and a summary of any oral presentations) made or submitted by such Party
with or to any Governmental Entity related solely to this Agreement or the Transactions. Notwithstanding anything to the contrary above, to the extent that any such notice, filing, analysis, presentation, memorandum, brief, white paper, opinion,
proposal or other submission contains information that a party reasonably deems to be sensitive for its business, such party may designate relevant portions of such notice, filing, analysis, presentation, memorandum, brief, white paper, opinion,
proposal or other submission as “Outside Counsel Eyes Only,” in which case review of those designated portions shall be limited to the outside counsel representing the other party. 
 (c) The Parties shall use commercially reasonable efforts to: (i) take all other actions necessary to cause the expiration or
termination of the applicable waiting periods under the Antitrust Laws as soon as practicable; (ii) resolve any objections which may be asserted by any Governmental Entity with respect to the Transactions under the Antitrust Laws; and
(iii) take, or cause to be taken, all actions necessary to obtain each Consent (if any) required to be obtained (pursuant to any applicable Legal Requirement or contract, or otherwise) by such Party in connection with any of the Transactions
and to make effective the Transactions. If any Governmental Entity, including any competition authority, shall require or impose amendments to the Transactions or commitments to be undertaken by any Party as a condition to release of such
Governmental Entity’s Consent with respect to the Transactions, the Parties shall commence and conduct good faith negotiations with each other for no less than ninety (90) days and use their commercially reasonable efforts in order to
agree upon amendments to the Transactional Agreements which are necessary in order to meet the requirements imposed by such Governmental Entity. If, however, after such ninety-day period, the Parties cannot agree upon such amendments to the
Transactional Agreements, either Party may terminate the Agreement. Notwithstanding anything to the contrary herein, the Purchaser shall not be required to agree to any divestiture, sale, license or Encumbrance of any properties, assets or
businesses by the Purchaser, the Seller or any of their respective Affiliates of any business, assets or property of the Purchaser, the Seller or any of their respective Affiliates, or the imposition of any limitation on the ability of any of the
foregoing to conduct their respective businesses or to own or exercise control of their respective assets and properties. 
  

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 4.4 Consents; Releases. The Seller will use reasonable efforts during the Pre-Closing Period to
obtain the Seller Required Approvals; provided, however, that none of the Seller or the Purchaser nor any of their respective Affiliates shall be required to pay any consideration to obtain any Seller Required Approvals other than, in
the case of any Seller Required Approval that is a consent relating to a contract, any de minimis fees, expenses or other consideration or other fees or expenses required to be paid pursuant to the express provisions of such contract, which
consideration, fees or expenses shall be paid by the Seller, or, in the case of any Seller Required Approval that is a Governmental Authorization, any filing, recordation or similar fees which shall be shared equally by the Seller and the Purchaser.
The Purchaser will cooperate fully with the Seller, and will provide the Seller with such assistance as the Seller may reasonably request, for the purpose of (a) attempting to obtain the Seller Required Approvals; and (b) arranging for the
Seller to be released and discharged from its obligations and other liabilities under the Transferred Contracts. 
 4.5 Certain Updates.
On the seventh day prior to the Closing, the Seller shall deliver to the Purchaser (a) a schedule listing each of the Open Incoming POs and Open Outgoing POs as of that date, and (b) a list of the Transferred Inventory as of that date.

 4.6 No Shop. 
 (a) Until the earlier of the termination of this Agreement and the Closing Date, the Seller shall not and shall cause its Affiliates and its and their respective officers, directors, employees, agents and representatives not to,
directly or indirectly, (i) solicit any inquiries or proposals, or enter into any discussions, negotiations, understandings, arrangements or agreements, relating to the direct or indirect disposition, whether by sale, merger or otherwise, of
all or any material portion of the Business to any Person other than the Purchaser or its Affiliates (a “Prohibited Transaction”) or (ii) knowingly disclose, directly or indirectly, to any Person any confidential information
concerning the Business except as necessary to conduct the business in the ordinary course. In the event that the Seller or any of its Affiliates receives an inquiry related to such a transaction, the Seller will provide the Purchaser with notice
thereof as soon as practicable after receipt thereof, which notice shall include the identity of the prospective purchaser or soliciting party and the material terms of the proposal or solicitation except to the extent that such disclosure by the
Seller would violate or breach a binding non-disclosure agreement in effect prior to the date of this Agreement to which the Seller is a party. Notwithstanding anything to the contrary contained in this Section 4.6 or elsewhere in this
Agreement, if the Seller receives a bona fide written Takeover Proposal not solicited by the Seller in violation of this Section 4.6 and the Board of Directors of the Seller determines in good faith, after consulting with outside legal
counsel of recognized standing and its financial advisor, that the Takeover Proposal constitutes, or would reasonably be expected to result in, a Superior Proposal, then the Seller may, in response to such Takeover Proposal: (i) furnish
information concerning the Business to the Person making such Takeover Proposal (and to such Person’s representatives); and (ii) participate in discussions and negotiations with such Person (and with such Person’s representatives)
regarding such Takeover Proposal; provided, however, that in that circumstance, the Seller may provide to the Person making such Takeover Proposal access to no 

  

 28 

 
more information regarding the Business and the Transferred Assets than that received by the Purchaser, and/or engage in discussions with the Person making
such Takeover Proposal and its representatives subject to the requirement that the Seller shall have first received an executed confidentiality agreement that is no more favorable to such person than the confidentiality agreement to which the
Purchaser was subject prior to entering into this Agreement and, in the case of a Person that is a party to an existing non-disclosure agreement with the Seller prohibiting the Seller from identifying such Person to the Purchaser, the Seller shall
have received an executed amendment to such non-disclosure agreement authorizing the Seller to provide to the Purchaser the notice and information described in the second sentence of this Section 4.6(a). 
 (b) The Parties acknowledge that there may be no adequate remedy at law for a breach of Section 4.6(a) and that money
damages may not be an appropriate remedy for breach of such Section. Therefore, the Parties agree that the Purchaser has the right to injunctive relief and specific performance of Section 4.6(a) in the event of any breach of such
Section. The remedies set forth in this Section 4.6(b) are cumulative and shall in no way limit any other remedy any Party hereto has at law, in equity or pursuant hereto. 
 4.7 Confidentiality. 
 (a) During the Pre-Closing Period, except as expressly permitted in this Agreement, the Seller shall treat as confidential and shall safeguard any and all confidential information, knowledge and data applicable to the Business or
otherwise included in the Transferred Assets, in each case by using the same degree of care, but no less than a reasonable standard of care, to prevent the unauthorized use, dissemination or disclosure of such information, knowledge and data as the
Seller and its Affiliates use with respect to similar confidential or proprietary information, knowledge or data prior to the execution of this Agreement. 
 (b) The Purchaser and the Seller acknowledge that the confidentiality obligations set forth herein shall not extend to information, knowledge and data that (i) is publicly available or becomes publicly
available through no act or omission of the Party owing a duty of confidentiality; (ii) becomes available on a non-confidential basis from a source other than the Party owing a duty of confidentiality so long as such source is not known by such
Party to be bound by a confidentiality agreement with or other obligations of secrecy to the other Party; or (iii) is required to be disclosed by any judicial or administrative process, or, in the opinion of counsel, by any other mandatory
Legal Requirement. 
 (c) In the event of a breach of the obligations hereunder by a Party hereto, the other Party, in
addition to all other available remedies, will be entitled to injunctive relief to enforce the provisions of this Section 4.7 in any court of competent jurisdiction. 
 4.8 Assets in India and China. The Purchaser shall use commercially reasonable efforts to arrange to take title to, and hold, any Transferred
Assets located in India and China in a manner that is intended to minimize Import Duties to the extent possible, including by utilizing bonded warehouse facilities in substantially the same manner as the Seller has communicated to the Purchaser
prior to the date hereof. 
  

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 4.9 Non-Transferred Inbound IP Licenses. Except as set forth on Section 4.9 of the
Seller Disclosure Schedule, the Seller agrees that with respect to any Non-Transferred Inbound IP License that includes a provision permitting the Seller or any of its Affiliates to grant a sublicense therein in the field of the Business, the Seller
(or such Affiliate) shall, upon the Purchaser’s request, at the Purchaser’s cost and expense, and subject to obtaining any needed consents from the licensor, grant such a sublicense therein to the Purchaser for use in the BBA Fields of Use
(as defined in the IP License Agreement), and, to the extent that such a sublicense may be granted only with the consent of the licensor, the Seller will, at the Purchaser’s request, provide reasonable assistance to the Purchaser in connection
with the Purchaser’s efforts to obtain such consent. Notwithstanding the foregoing, the Seller shall have no obligation to grant any such sublicenses where the granting of any such sublicenses would cause the Seller to lose any rights outside
the BBA Fields of Use (as defined in the IP License Agreement) for itself or any Affiliate of the Seller. 
 4.10 Conditions. During
the Pre-Closing Period, the Parties will each use reasonable efforts to cause the conditions set forth in Sections 5 and 6 to be satisfied on a timely basis. In particular, the Parties will each use all commercially reasonable efforts
to retain the services of the Specified Employees, including those employees the continued employment of whom is a condition to the Purchaser’s obligation pursuant to Section 5.11. 
 4.11 Financial and Other Information. The Seller and the Purchaser shall cooperate in the Purchaser’s request for a waiver or other relief
from the SEC with respect to the requirement of the Purchaser to obtain audited financial statements and related pro forma financial statements with respect to the Business or Transferred Assets in connection with the Purchaser’s proposed
solicitation of its stockholders in connection with the transactions contemplated by the Transaction Documents (as such term is defined in the Securities Purchase Agreement). In furtherance thereof, within five (5) business days of the
execution of this Agreement, the Purchaser shall contact the SEC to seek such waiver or other relief, and shall use its commercially reasonable efforts to obtain such waiver or relief. The Seller shall cooperate with the Purchaser and use its
commercially reasonable efforts to cause any financial statements of the Seller required by the SEC in connection with the Transactions and the transactions contemplated by the Securities Purchase Agreement to be completed as promptly as
practicable. The Purchaser shall promptly (and in any event within 10 days of its receipt of a written invoice from the Seller) reimburse the Seller for 50% of the reasonable accounting expenses incurred by the Seller (including the fees and
expenses payable by the Seller to its auditors as well as the costs incurred by the Seller for additional accounting personnel), up to a maximum reimbursement of $450,000 (i.e. 50% of $900,000 in total accounting expenses incurred by the Seller)
directly as a result of the preparation and audit of financial statements for inclusion in any of the Purchaser’s filings with the SEC in connection with the Transactions; provided, however, that if the foregoing cap is exceeded, the
Purchaser’s reimbursement obligations shall continue to apply with respect to any such excess expenses incurred with the Purchaser’s consent, such consent not to be unreasonably withheld, delayed or conditioned. The Seller shall use its
commercially reasonable efforts to engage Deloitte & Touche LLP promptly following the execution of this Agreement, and in any event no longer than five (5) Business Days thereafter, with respect to the audit of its financial
statements as required for inclusion in the Purchaser’s SEC filings in connection with the Transactions (the “Required Financial Statements”). The Seller shall use its commercially reasonable efforts to cause the Required
Financial Statements to 

  

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be delivered to the Purchaser (a) within one hundred five (105) days of receipt by the Purchaser from the SEC of a determination requiring complete
audited financial statements with respect to the Business or Transferred Assets, or (b) within seventy five (75) days of receipt by the Purchaser from the SEC of a waiver or other relief from the requirement to file complete audited
financial statements and related pro forma financial statements with respect to the Business or Transferred Assets; provided, however, that the 105 and 75 day time periods specified in clauses (a) and (b) of this
Section 4.11 shall be automatically extended for up to fifteen (15) days upon written notice by the Seller to the Purchaser that such additional time is needed to deliver the Required Financial Statements. The Purchaser intends to
include the Required Financial Statements in a proxy statement (the “Proxy Statement”) that will be provided to the Purchaser’s stockholders in connection with the solicitation of proxies by the Purchaser for use at the Company
Stockholder Meeting (as such term is defined in the Securities Purchase Agreement). The Purchaser will file the Proxy Statement with the SEC by the Proxy Filing Date (as such term is defined in the Securities Purchase Agreement) and will use its
commercially reasonable efforts to resolve any comments the SEC may have with respect to the Proxy Statement within forty nine (49) days from the date of filing the Proxy Statement with the SEC. In the event all such comments, if any, from the
SEC have not been resolved within such forty nine (49) day period, and there are any unresolved SEC comments at such time with respect to the Required Financial Statements or other information with respect to the Seller, then such forty nine
(49) day period shall automatically be extended by up to fifteen (15) days upon written notice by the Purchaser to the Seller that such additional time is needed to resolve the remaining SEC comments. 
 4.12 Securities Purchase Agreement. The Purchaser shall not, without the prior written consent of the Seller, amend or waive any of its rights
under any provisions of the Securities Purchase Agreement if doing so would have or would reasonably be expected to have a Purchaser Material Adverse Effect. 
 4.13 Warranty/RMAs. From and after the Closing, the Purchaser shall accept returns of Seller Products purchased by customers of the Business prior to the Closing that are returned due to a valid warranty claim
or pursuant to a return merchandise authorization and, to the extent necessary, provide such customers with replacement products. The Purchaser shall invoice the Seller for such returned and replacement merchandise at the Seller’s standard cost
at the Closing, and the Seller shall reimburse the Purchaser within 10 Business Days of the receipt of each such invoice. 
  

	5.	CONDITIONS PRECEDENT TO THE PURCHASER’S OBLIGATION TO CLOSE. 

 The Purchaser’s obligation to purchase the Transferred Assets and to take the other actions required to be taken by the Purchaser at the Closing is subject to the satisfaction, at or prior to the Closing, of each
of the following conditions (any of which may be waived by the Purchaser, in whole or in part, in writing): 
 5.1 Accuracy of
Representations. Each of the Seller’s representations and warranties in this Agreement (each considered without regard to materiality qualifiers such as “material,” “in all material respects,” and “Material Adverse
Effect” set forth therein) shall be true and correct as of the date of this Agreement and shall be true and correct as of the Closing 

  

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Date as if made on or as of the Closing Date, except (i) for representations and warranties made that address matters only as of a particular date,
which need only have been true and correct as of such date, and (ii) where all failures of such representations and warranties to be so true and correct has not had and would not reasonably be expected to have a Seller Material Adverse Effect.

 5.2 Performance of Obligations. The Seller shall have performed, in all material respects, all obligations required by this
Agreement to be performed by the Seller on or before the Closing Date. 
 5.3 Reserved. 
 5.4 Instruments of Transfer. Each Assignment and Assumption Agreement, bill of sale and any other appropriate document of transfer in form and
substance reasonably acceptable to the Purchaser and the Seller, transferring the tangible personal property included in the Transferred Assets to the Purchaser and assigning to the Purchaser all rights of the Seller and its Affiliates in and to all
of the Transferred Contracts, shall have been executed on behalf of the Seller (or the relevant Seller Affiliate) and delivered to the Purchaser. 
 5.5 Ancillary Agreements. Each of the other Ancillary Agreements shall have been executed on behalf of the Seller (or the relevant Seller Affiliate) and delivered to the Purchaser. 
 5.6 No Restraints. No injunction or other order preventing the consummation of the transactions contemplated by this Agreement and the Ancillary
Agreements shall have been issued by any court of competent jurisdiction and shall remain in effect; and no Legal Requirement that makes consummation of the transactions contemplated by this Agreement and the Ancillary Agreements illegal shall be in
effect. 
 5.7 No Proceedings. There shall not be pending any suit, action or proceeding (a) challenging or seeking to restrain,
limit or prohibit any transactions contemplated by this Agreement or (b) brought by a Governmental Entity seeking to obtain from the Purchaser in connection with the transactions contemplated by this Agreement any material commitments or
seeking to prohibit or limit the ownership, operation or control by the Purchaser or any of its Affiliates of any material portion of the business or assets of the Purchaser (including the Business) or any of its Affiliates. 
 5.8 Seller Required Approvals. 
 (a) The Purchaser shall have received written evidence that, effective as of the Closing, the liens on the Transferred Assets under the Indenture shall be released. 
 (b) The Seller shall have obtained all Seller Required Approvals with respect to the contracts, other than the Indenture,
designated on Section 2.12 of the Seller Disclosure Schedule as “Reassignment Required for Closure,” all of which shall remain in full force and effect. 
 5.9 Seller Closing Certificate. The Purchaser shall have received a certificate, signed by a duly authorized officer of the Seller and
dated the Closing Date, to the effect that the conditions set forth in Sections 5.1, 5.2, 5.8 and 5.12 have been satisfied (the “Seller Closing Certificate”). 
  

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 5.10 FIRPTA Certificate. The Purchaser shall have received the certificate referenced in
Section 1.13(d) dated as of the Closing Date. 
 5.11 Employee Offer Letter. The Key Employee shall remain employed on the
Closing Date and shall not have given notice of his intention to terminate his employment with the Seller, and the Employee Offer Letter shall remain in full force and effect (other than as a result of actions taken by the Purchaser with respect to
the Employee Offer Letter). 
 5.12 Seller Material Adverse Effect. Since the date of this Agreement, there shall not have occurred
and be continuing a Seller Material Adverse Effect. 
 5.13 Securities Purchase Agreement. The Purchaser shall have received the
proceeds from the closing of the transactions contemplated by the Securities Purchase Agreement. 
  

	6.	CONDITIONS PRECEDENT TO THE SELLER’S OBLIGATION TO CLOSE. 

 The Seller’s obligation to sell and transfer the Transferred Assets to the Purchaser and to take the other actions required to be taken by the Seller at the Closing is subject to the satisfaction, at or prior to
the Closing, of each of the following conditions (any of which may be waived by the Seller, in whole or in part, in writing): 
 6.1
Accuracy of Representations. Each of the Purchaser’s representations and warranties in this Agreement (each considered without regard to materiality qualifiers such as “material,” “in all material respects,” and
“Material Adverse Effect” set forth therein) shall be true and correct as of the date of this Agreement and shall be true and correct as of the Closing Date as if made on or as of the Closing Date, except (i) for representations and
warranties made that address matters only as of a particular date, which need only have been true and correct as of such date, and (ii) where all failures of such representations and warranties to be so true and correct has not had and would
not reasonably be expected to have a Purchaser Material Adverse Effect. 
 6.2 Performance of Obligations. The Purchaser shall have
performed, in all material respects, all obligations required by this Agreement to be performed by the Purchaser on or before the Closing Date. 
 6.3 Reserved. 
 6.4 Delivery of Consideration. The Seller shall have received the Cash Closing Payment referred to in
Section 1.3(a). 
 6.5 Instruments of Transfer. The Purchaser shall have delivered the documents and instruments referred
to in Section 1.12(a)(ii). 
  

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 6.6 Ancillary Agreements. Each of the other Ancillary Agreements shall have been executed on
behalf of the Purchaser (or the relevant Purchaser Affiliate) and delivered to the Seller. 
 6.7 No Restraints. No injunction or
other order preventing the consummation of the transactions contemplated by this Agreement and the Ancillary Agreements shall have been issued by any court of competent jurisdiction and shall remain in effect; and no Legal Requirement preventing
consummation of the transactions contemplated by this Agreement and the Ancillary Agreements shall be in effect. 
 6.8 Purchaser Closing
Certificate. The Seller shall have received a certificate, signed by a duly authorized officer of the Purchaser and dated the Closing Date, to the effect that the conditions set forth in Sections 6.1 and 6.2 have been satisfied
(the “Purchaser Closing Certificate”). 
 6.9 Consent. The Seller shall have received the consent described on
Schedule 6.9. 
  

	7.	TERMINATION. 

 7.1 Right to Terminate
Agreement. This Agreement may be terminated prior to the Closing: 
 (a) by the mutual written consent of the
Parties; 
 (b) by either Party after October 15, 2009 (the “Termination Date”) if the Closing
has not taken place by the Termination Date, unless the failure of the Closing to take place on or before such date is attributable to a breach by such Party of any of its obligations set forth in this Agreement; provided, however, that in
the event the one hundred five (105) day delivery requirement in clause (a) of Section 4.11 becomes applicable, the Termination Date shall be November 15, 2009; provided further, that if the Seller exercises the
extension contemplated by Section 4.11 for the delivery of the Required Financial Statements, then the Termination Date shall automatically be extended by the number of additional days (up to fifteen (15)) by which the time periods
specified in clauses (a) and (b) of Section 4.11 were extended. 
 (c) by either Party if the
Securities Purchase Agreement is terminated; 
 (d) by either party if a court of competent jurisdiction or other
Governmental Entity shall have issued a final and nonappealable order, decree or ruling, or shall have taken any other action, having the effect of permanently restraining, enjoining or otherwise prohibiting any of the Transactions; 
 (e) by either Party pursuant to Section 4.3(c); 
 (f) by the Purchaser if there has been a material breach of any representation, warranty, covenant or agreement made by the Seller
in this Agreement, or any such representation or warranty shall have become untrue after the date of this Agreement, in either case such that the conditions in Section 5 would not be satisfied; provided, however, that if
such breach is curable by the Seller through the exercise of its reasonable efforts, then provided that the Seller continues to exercise such reasonable efforts, the Purchaser may not terminate this Agreement under this Section 7.1(f)
prior to the Termination Date unless such breach is not cured within 30 days of notice thereof; 
  

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 (g) by the Seller if there has been a material breach of any representation,
warranty, covenant or agreement made by the Purchaser in this Agreement, or if any such representation or warranty shall have become untrue after the date of this Agreement, in either case such that the conditions in Section 6 would not
be satisfied; provided, however, that if such breach is curable by the Purchaser through the exercise of its reasonable efforts, then provided that the Purchaser continues to exercise such reasonable efforts, the Seller may not
terminate this Agreement under this Section 7.1(g) prior to the Termination Date unless such breach is not cured within 30 days of notice thereof; 
 (h) by the Seller following receipt of a Takeover Proposal which the Board of Directors of the Seller determines (after
consultation with its financial advisor and outside legal counsel) to be a Superior Proposal; provided, however, that: (i) prior to such termination, the Seller has provided the Purchaser a written notice that describes the
Takeover Proposal and the parties thereto; (ii) within two Business Days following the delivery of the notice referred to in clause (i) of this sentence, the Purchaser does not propose adjustments in the terms and conditions of this
Agreement the result of which is that the Seller’s Board of Directors reasonably determines (after consultation with its financial advisor and outside legal counsel) that such Takeover Proposal is no longer a Superior Proposal and (iii) as
a condition of such termination by the Seller pursuant to this Section 7.1(h), the Seller shall pay to the Purchaser a fee of $1,500,000 in cash. Such payment shall be made by wire transfer of immediately available funds to an account to
be designated by the Purchaser and shall be the sole and exclusive remedy available to the Purchaser in the event of a termination of this Agreement by the Seller pursuant to this Section 7.1(h); or 
 (i) by the Purchaser if the Securities Purchase Agreement is validly terminated by TWVC as a result of a Material Adverse Effect
(as such term is defined in the Securities Purchase Agreement) or a Seller Material Adverse Effect. 
 7.2 Termination Procedures. If
either Party wishes to terminate this Agreement pursuant to Section 7.1, such Party will deliver to the other Party a written notice stating that such Party is terminating this Agreement and setting forth a brief statement of the basis
on which such Party is terminating this Agreement. 
 7.3 Effect of Termination. 
 (a) Upon the termination of this Agreement pursuant to Section 7.1, neither Party will have any obligation or other
liability to the other Party, except that (a) the Parties will remain bound by the provisions of this Section 7.3 and Sections 10.3, 10.4, 10.5, 10.6, 10.11, 10.12 and 10.16, and by
the provisions of the Confidentiality Agreement, and (b) except as provided in this Section 7.3, neither Party will be relieved of any liability for any breach, prior to such termination, of its obligation to consummate the
transactions contemplated by this Agreement or its obligation to take any other action required to be taken by such Party at or before the Closing. 
  

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 (b) In the event that this Agreement is terminated pursuant to
Section 7.1(b) or Section 7.1(c) (and at such time this Agreement is not terminable by Purchaser pursuant to Section 7.1(i) due to a valid termination of the Securities Purchase Agreement by TWVC as a result of a
Seller Material Adverse Effect) and at the time of such termination (i) all of the closing conditions contained in Section 5 (other than Section 5.13) have been satisfied or waived (other than those conditions that by
their nature are to be satisfied at the Closing but such conditions can be satisfied by the Seller including Section 5.8(a)) and (ii) the Seller shall have caused the Required Financial Statements to be delivered within the
applicable time period forth in the last sentence of Section 4.11, the Purchaser shall reimburse the Seller for the Seller’s expenses in connection with the negotiation and execution of this Agreement in the agreed-upon amount of
$1,500,000; provided that if at the time of such termination both of the conditions set forth in clauses (i) and (ii) of this Section 7.3(b) shall have been satisfied and the Requisite Stockholder Approval (as defined in the
Securities Purchase Agreement) shall not have been obtained, the agreed-upon reimbursement amount shall be $1,250,000. Such payment shall be made by wire transfer of immediately available funds to an account to be designated by the Seller within
three (3) Business Days of termination and shall be the sole and exclusive remedy available to the Seller in the event of a termination of this Agreement pursuant to Section 7.1(b) or Section 7.1(c). Notwithstanding
anything to the contrary in this Section 7.3(b), if the Purchaser has validly extended the time period for resolving SEC comments on the Proxy Statement pursuant to Section 4.11, then (unless this Agreement is earlier
terminated by the Purchaser pursuant to Section 7.1(b), in which case the limitation in this sentence on the Seller’s ability to claim the expense reimbursement contemplated by this Section 7.3(b) shall not apply) the
Seller shall not be entitled to the expense reimbursement contemplated by this Section 7.3(b) for a termination of this Agreement pursuant to Section 7.1(b) unless the Seller waits at least that same number of days (up to
fifteen (15)) following the Termination Date that the period for resolving SEC comments is extended pursuant to Section 4.11 prior to terminating this Agreement pursuant to Section 7.1(b). 
 (c) In the event that this Agreement is terminated pursuant to Section 7.1(b) other than as a result of failure of the
conditions set forth in Section 5.8(b) or Section 5.11 to be satisfied (and at such time this Agreement is not terminable by Purchaser pursuant to Section 7.1(i) due to a valid termination of the Securities
Purchase Agreement by TWVC as a result of a Material Adverse Effect (as such term is defined in the Securities Purchase Agreement)) and at the time of such termination (i) all of the closing conditions to the Securities Purchase Agreement have
been satisfied or waived, such that the transactions contemplated by the Securities Purchase Agreement would have closed but for the failure of the closing conditions in Section 5 or Section 6 to have been satisfied, and
(ii) all of the closing conditions contained in Section 6 (other than Section 6.9) have been satisfied or waived (other than those conditions that by their nature are to be satisfied at the Closing but such conditions
can be satisfied by the Purchaser), the Seller shall reimburse the Purchaser for the Purchaser’s expenses in connection with the negotiation and execution of this Agreement in the agreed-upon amount of $1,500,000; provided that if at the time
of such termination all of the closing conditions contained in Section 6 (other than Section 6.9) have been satisfied or waived (other than those conditions that by their nature are to be satisfied at the Closing but such
conditions can be satisfied by the Purchaser), but the condition set forth in Section 5.8(a) has not been satisfied, the agreed-upon reimbursement amount shall be $1,250,000. Such payment shall be made by wire transfer of immediately
available funds to an account to be designated by the Purchaser within three (3) Business Days of termination and shall be the sole and exclusive remedy available to the Purchaser in the event of a termination of this Agreement pursuant to
Section 7.1(b). 
  

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 (d) In the event that this Agreement is terminated pursuant to
Section 7.1(c) or 7.1(i) because the Securities Purchase Agreement is validly terminated by TWVC as a result of a Material Adverse Effect (as such term is defined in the Securities Purchase Agreement), the Purchaser shall
reimburse the Seller for the Seller’s expenses in connection with the negotiation and execution of this Agreement in the agreed-upon amount of $1,500,000. Such payment shall be made by wire transfer of immediately available funds to an account
to be designated by the Seller within three (3) Business Days of termination and shall be the sole and exclusive remedy available to the Seller in the event of a termination of this Agreement pursuant to Section 7.1(i). 

(e) In the event that this Agreement is terminated pursuant to Section 7.1(i) because the Securities Purchase
Agreement is validly terminated by TWVC as a result of a Seller Material Adverse Effect, the Seller shall reimburse the Purchaser for the Purchaser’s expenses in connection with the negotiation and execution of this Agreement in the agreed-upon
amount of $1,500,000. Such payment shall be made by wire transfer of immediately available funds to an account to be designated by the Purchaser within three (3) Business Days of termination and shall be the sole and exclusive remedy available
to the Purchaser in the event of a termination of this Agreement pursuant to Section 7.1(i). 
 (f) The
parties hereto acknowledge and hereby agree that the covenants and agreements set forth in Sections 7.1 and 7.3 are an integral part of the transactions contemplated by this Agreement, and that without these agreements, the parties
hereto would not have entered into this Agreement, and that any amounts payable pursuant to Sections 7.1 and 7.3 do not constitute a penalty. If the Purchaser or the Seller, as applicable, fails to pay as directed in writing by the
other Party, any amounts due to the Seller or the Purchaser, as applicable, pursuant to Sections 7.1 and 7.3 within the time periods specified in Sections 7.1 and 7.3, then the Purchaser or the Seller, as applicable,
shall pay the costs and expenses (including reasonable legal fees and expenses) incurred by the other Party in connection with any action, including the filing of any lawsuit, taken to collect payment of such amounts, together with interest on such
unpaid amounts at the prime lending rate prevailing during such period as published in The Wall Street Journal, calculated on a daily basis from the date such amounts were required to be paid until the date of actual payment. 
  

	8.	INDEMNIFICATION. 

 8.1 Survival of
Representations. Subject to the provisions of this Section 8, each of the representations, warranties, covenants and obligations set forth in this Agreement and in any other Transactional Agreement shall continue in full force and
effect notwithstanding the occurrence of the Closing and the consummation of the Transactions. Each representation, warranty, covenant and obligation contained in this Agreement or any other Transactional Agreement shall survive the Closing Date and
will terminate and expire, and will cease to be of any force or effect, at 11:59 p.m. (California time) on the one year anniversary of the Closing Date (the “Survival Period”), and all liability with respect thereto will thereupon
be extinguished. For the avoidance of doubt, the Survival Period is intended to and hereby does replace the applicable statutes of limitations that would otherwise apply to a claim for a breach of any 

  

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representation, warranty, covenant or obligation contained in this Agreement or any other Transactional Agreement. If a Claim Notice or written notice of a
Direct Claim is given prior to the expiration of the Survival Period by an Indemnified Party to an Indemnifying Party, then the Survival Period is tolled as to such claim and the relevant representations, warranties or covenants shall survive as to
such claim until such claim has been finally resolved. 
 8.2 Indemnification by the Seller. 
 (a) The Seller hereby agrees that from and after the Closing it shall indemnify, defend and hold harmless the Purchaser, its
Affiliates, and their respective directors, officers, shareholders, partners, members, attorneys, accountants, agents, representatives and employees (other than the Hired Employees) and their heirs, successors and permitted assigns, each in their
capacity as such (the “Purchaser Indemnified Parties,” and collectively with the Seller Indemnified Parties, the “Indemnified Parties”) from, against and in respect of any Losses imposed on, sustained, incurred or
suffered by, or asserted against, any of the Purchaser Indemnified Parties, whether in respect of third party claims, claims between the Parties hereto, or otherwise, directly or indirectly relating to or arising out of: 
 (i) any breach or inaccuracy of any representation or warranty made by the Seller contained in this Agreement, the Seller Closing
Certificate or any other Transactional Agreement (it being understood that, for purposes of this Section 8.2(a), any qualifications relating to materiality, including the term “Material Adverse Effect,” or relating to knowledge
contained in such representation or warranty shall be disregarded for purposes of determining the amount of Losses incurred, but shall not be disregarded for determining whether such a breach or inaccuracy occurred); 
 (ii) any breach of any covenant or agreement of the Seller or any of its Affiliates contained in this Agreement or any Ancillary
Agreement; 
 (iii) any failure to timely fulfill or discharge any of the Excluded Liabilities; and 
 (iv) Taxes (but not including any such Taxes paid by the Seller prior to the Closing Date or assumed by the Purchaser pursuant to
Section 1.8(a)) (x) imposed on the Seller or any of its Affiliates (including any obligation to contribute to the payment of a Tax determined on a consolidated, combined or unitary basis with respect to a group of corporations that
includes or included the Seller) and (y) imposed on or with respect to the Transferred Assets or the Business for a Pre-Closing Tax Period. In the case of Taxes described in clause (y) that are payable with respect to a Straddle Period,
the portion of any such Tax that is allocable to the portion of such Straddle Period ending on the Closing Date shall (A) in the case of Taxes that are based upon or related to income or receipts, be deemed equal to the amount which would be
payable if the taxable year ended with the Closing Date (except that, solely for purposes of determining the marginal tax rate applicable to income or receipts during such period in a jurisdiction in which such tax rate depends upon the level of
income or receipts, annualized income or receipts may be taken into account if appropriate for an equitable sharing of such Taxes); and (B) in the case of Taxes not described in clause (A) that are imposed on a periodic basis and measured
by the level of any item, be deemed to be the amount of such Taxes for the 

  

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entire Straddle Period (or, in the case of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding tax period)
multiplied by a fraction the numerator of which is the number of calendar days in the Straddle Period ending on the Closing Date and the denominator of which is the total number of calendar days in the entire Straddle Period. 
 (b) Notwithstanding anything to the contrary contained in this Agreement: 
 (i) Except with respect to claims for (w) fraud, (x) willful breach of a covenant, (y) breach of any post-closing covenant
or (x) or any matter contemplated by clause (a)(iii) or (a)(iv) of this Section 8.2, the indemnification provided in this Section 8 shall be the sole and exclusive post-Closing monetary remedy available to the
Purchaser, as against the Seller or any of its Affiliates, for any Losses arising under or related to this Agreement or any other Transactional Agreement, it being understood that nothing in this Section 8.2(b)(i) or elsewhere in
this Agreement shall affect any party’s rights to specific performance or other equitable remedies with respect to the covenants referred to in this Agreement. 
 (ii) Except with respect to claims for (u) fraud, (v) willful breach of a covenant, (w) breach of any post-closing
covenant, (x) breach of the Seller’s representations and warranties in Section 2.2, (y) breach of the Seller’s representations and warranties in Section 2.4(o) or (z) indemnification pursuant to
clause (a)(iii) or (a)(iv) of this Section 8.2, the maximum aggregate amount of indemnifiable Losses that may be recovered from the Seller under this Agreement or any other Transactional Agreement shall not exceed $6.75
million. With respect to claims for breach of the Seller’s representations and warranties in Section 2.4(o), the maximum aggregate amount of indemnifiable Losses that may be recovered from the Seller shall not exceed $13.5 million.

 (iii) Except with respect to claims for (v) fraud, (w) willful breach of a covenant, (x) breach of any
post-closing covenant, (y) breach of the Seller’s representations and warranties in Section 2.2 and Section 2.4(o) or (z) indemnification pursuant to clause (a)(iii) or (a)(iv) of this
Section 8.2, (such clauses (v), (w), (x), (y) and (z), collectively “Non-Basketed Losses”), no indemnification payment by the Seller with respect to any indemnifiable Losses otherwise payable under
Section 8.2(a) or any other Transactional Agreement shall be payable until such time as all such indemnifiable Losses made or paid under Section 8.2(a) shall aggregate to more than $250,000 (the
“Deductible”), after which time the Seller shall be liable for all indemnifiable Losses exceeding the Deductible. In addition, except with respect to any Non-Basketed Losses, no indemnification payment by the Seller with respect to
any indemnifiable Losses otherwise payable under Section 8.2(a) or any other Transactional Agreement shall be payable in respect of any indemnification claim or series of indemnification claims arising from the same or similar underlying
event or circumstance unless such claim is for Losses in an amount of at least $10,000. 
 (iv) No indemnification payment by
the Seller with respect to any indemnifiable Losses otherwise payable under Section 8.2(a) relating to a breach of the Seller’s representations and warranties in Section 2.4(o) with respect to a defect in title to the
Transferred Patents shall be payable until such breach is with respect to a defect in title of at least five (5) Transferred Patents, subject to (A) a maximum indemnifiable Loss for each Patent with a defect in title of $50,000 per Patent
and (B) the overall $13.5 million cap contained in the last sentence of clause (ii) of this Section 8.2(b). 
  

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 8.3 Indemnification by the Purchaser. 
 (a) The Purchaser hereby agrees that from and after the Closing it shall indemnify, defend and hold harmless the Seller, its
Affiliates, and their respective directors, officers, stockholders, partners, members, attorneys, accountants, agents, representatives and employees and their heirs, successors and permitted assigns, each in their capacity as such (the
“Seller Indemnified Parties”) from, against and in respect of any Losses imposed on, sustained, incurred or suffered by, or asserted against, any of the Seller Indemnified Parties, whether in respect of third party claims, claims
between the parties hereto, or otherwise, directly or indirectly relating to, arising out of or resulting from, (i) any breach of any representation or warranty made by the Purchaser contained in this Agreement, any Ancillary Agreement or any
document delivered pursuant to this Agreement for the period such representation or warranty survives, (ii) any failure to timely discharge or fulfill any of the Assumed Liabilities, and (iii) any breach of a covenant or agreement of the
Purchaser contained in this Agreement, any Ancillary Agreement or any document delivered pursuant to this Agreement. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, except with respect to claims based on (x) fraud, (y) willful breach of a covenant or breach of a post-closing covenant or (z) indemnification
pursuant to Section 8.3(a)(ii), no indemnification payment by the Purchaser with respect to any indemnifiable Losses otherwise payable under Section 8.3(a) shall be payable until such time as all such indemnifiable Losses
made or paid under Section 8.3(a) shall aggregate to more than $250,000, after which time the Purchaser shall be liable in full for all indemnifiable Losses exceeding such amount. In addition, no indemnification payment by the Purchaser
with respect to any indemnifiable Losses otherwise payable under Section 8.3(a) or any other Transactional Agreement shall be payable in respect of any indemnification claim or series of indemnification claims arising from the same or
similar underlying event or circumstance unless such claim is for Losses in an amount of at least $10,000. 
 8.4 Third Party Claim
Indemnification Procedures. 
 (a) In the event that any written claim or demand for which an indemnifying party
(an “Indemnifying Party”) may have liability to any Indemnified Party hereunder is asserted against or sought to be collected from any Indemnified Party by a third party (a “Third Party Claim”), such Indemnified
Party shall promptly, but in no event more than ten days following such Indemnified Party’s receipt of a Third Party Claim, notify the Indemnifying Party in writing of such Third Party Claim, the amount or the estimated amount of damages sought
thereunder to the extent then ascertainable (which estimate shall not be conclusive of the final amount of such Third Party Claim), any other remedy sought thereunder, any relevant time constraints relating thereto and, to the extent practicable,
any other material details pertaining thereto (a “Claim Notice”); provided, however, that the failure timely to give a Claim Notice shall affect the rights of an Indemnified Party hereunder only to the extent that such
failure has a prejudicial effect on the defenses or other rights available to the Indemnifying Party with respect to such Third Party Claim. The Indemnifying Party shall have 30 days after receipt of the Claim 

  

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Notice (the “Notice Period”) to notify the Indemnified Party that it desires to defend the Indemnified Party against such Third Party Claim
unless the Indemnified Party has notified the Indemnifying Party in the Claim Notice that it has determined in good faith that there is a reasonable probability that such Third Party Claim may adversely affect it or its Affiliates other than as a
result of monetary damages; it being understood that by assuming the defense of a Third Party Claim, the Indemnifying Party shall conclusively acknowledge that it has an indemnity obligation with respect to such Third Party Claim. 

(b) In the event that the Indemnifying Party notifies the Indemnified Party within the Notice Period that it desires to defend
the Indemnified Party against a Third Party Claim, the Indemnifying Party shall have the right to defend the Indemnified Party by appropriate proceedings and shall have the sole power to direct and control such defense, with counsel reasonably
satisfactory to the Indemnified Party at its expense. Once the Indemnifying Party has duly assumed the defense of a Third Party Claim, the Indemnified Party shall have the right, but not the obligation, to participate in any such defense and to
employ separate counsel of its choosing. The Indemnified Party shall participate in any such defense at its expense unless (i) the Indemnifying Party and the Indemnified Party are both named parties to the proceedings and the Indemnified Party
shall have reasonably concluded that representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them, or (ii) the Indemnified Party assumes the defense of a Third Party Claim
after the Indemnifying Party has failed to diligently pursue a Third Party Claim it has assumed, as provided in the first sentence of Section 8.4(c). The Indemnifying Party shall not, without the prior written consent of the Indemnified
Party, settle, compromise or offer to settle or compromise any Third Party Claim on a basis that would result in (i) the imposition of a consent order, injunction or decree that would restrict the future activity or conduct of the Indemnified
Party or any of its Affiliates, (ii) a finding or admission of a violation of a Legal Requirement or violation of the rights of any Person by the Indemnified Party or any of its Affiliates, (iii) a finding or admission that would have an
adverse effect on other claims made or threatened against the Indemnified Party or any of its Affiliates, or (iv) any monetary liability of the Indemnified Party that will not be promptly paid or reimbursed by the Indemnifying Party.

 (c) If the Indemnifying Party (i) elects not to defend the Indemnified Party against a Third Party Claim,
whether by not giving the Indemnified Party timely notice of its desire to so defend or otherwise, (ii) is not entitled to defend the Third Party Claim as a result of the Indemnified Party’s election to defend the Third Party Claim as
provided in Section 8.4(a), or (iii) after assuming the defense of a Third Party Claim, fails to take reasonable steps necessary to defend diligently such Third Party Claim within ten days after receiving written notice from the
Indemnified Party to the effect that the Indemnifying Party has so failed, the Indemnified Party shall have the right but not the obligation to assume its own defense; it being understood that the Indemnified Party’s right to
indemnification for a Third Party Claim shall not be adversely affected by assuming the defense of such Third Party Claim. The Indemnified Party shall not settle a Third Party Claim without the consent of the Indemnifying Party, which consent shall
not be unreasonably withheld. With respect to Third Party Claims regarding Patent infringement: (i) if the Seller is the Indemnifying Party but is not controlling the defense of such Third Party Claim, the Seller shall be entitled to
participate, at its expense, in the defense of the Third Party Claim and the Purchaser shall use its commercially reasonable efforts to cooperate with the reasonable requests of the Seller with respect to such Third Party Claim; and (ii) if the
Purchaser 

  

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is the Indemnifying Party but is not controlling the defense of such Third Party Claim, the Purchaser shall be entitled to participate, at its expense, in
the defense of the Third Party Claim and the Seller shall use its commercially reasonable efforts to cooperate with the reasonable requests of the Purchaser with respect to such Third Party Claim. 
 (d) The Indemnified Party and the Indemnifying Party shall cooperate in order to ensure the proper and adequate defense of a Third
Party Claim, including by providing access to each other’s relevant business records and other documents, and employees; it being understood that the costs and expenses of the Indemnified Party relating thereto shall be Losses.

 (e) The Indemnified Party and the Indemnifying Party shall use reasonable efforts to avoid production of
confidential information (consistent with applicable Legal Requirements), and to cause all communications among employees, counsel and others representing any party to a Third Party Claim to be made so as to preserve any applicable attorney-client
or work-product privileges. 
 8.5 Claims Procedure. If an Indemnified Party wishes to make a claim for indemnification hereunder for
a Loss that does not result from a Third Party Claim (a “Direct Claim”), the Indemnified Party shall notify the Indemnifying Party in writing of such Direct Claim, the amount or the Indemnified Party’s good faith estimated
amount of damages sought thereunder to the extent then ascertainable (which estimate shall not be conclusive of the final amount of such Direct Claim), any other remedy sought thereunder, any relevant time constraints relating thereto, the nature of
the misrepresentation, breach of warranty, covenant or obligation to which such item is related and to the extent known a reasonable summary of the facts underlying the claim, and, to the extent practicable, any other material details pertaining
thereto. The Indemnifying Party shall have a period of 30 days within which to respond to any Direct Claim or any Claim Notice relating to a Third Party Claim. If the Indemnifying Party does not respond within such 30-day period, the Indemnifying
Party will be deemed to have accepted such Claim. If the Indemnifying Party rejects all or any part of such Claim, the Seller and the Purchaser shall attempt in good faith for 30 days to resolve such claim. If no such agreement can be reached
through good faith negotiation within 30 days, either the Purchaser or the Seller may commence an action in accordance with Section 10.3. 
 8.6 Adjustments to Losses. 
 (a) Insurance. In calculating the amount of
any Loss, the proceeds actually received by the Indemnified Party or any of its Affiliates under any insurance policy or pursuant to any claim, recovery, settlement or payment by or against any other Person in each case relating to the Third Party
Claim or the Direct Claim, net of any actual costs, expenses or premiums incurred in connection with securing or obtaining such proceeds, shall be deducted, except to the extent that the adjustment itself would excuse, exclude or limit the coverage
of all or part of such Loss. In the event that an Indemnified Party has any rights against a third party with respect to any occurrence, claim or loss that results in a payment by an Indemnifying Party under this Section 8, such
Indemnifying Party shall be subrogated to such rights to the extent of such payment; provided that until the Indemnified Party recovers full payment of the Loss related to any such Direct Claim, any and all claims of the Indemnifying Party
against any such third party on account of said indemnity payment is hereby expressly made subordinate and 

  

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subject in right of payment to the Indemnified Party’s rights against such third party. Without limiting the generality or effect of any other provision
hereof, each Indemnified Party and Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the subrogation and subordination rights detailed herein, and otherwise cooperate in the prosecution
of such claims. 
 (b) Reimbursement. If an Indemnified Party recovers an amount from a third party in respect
of a Loss that is the subject of indemnification hereunder after all or a portion of such Loss has been paid by an Indemnifying Party pursuant to this Section 8, the Indemnified Party shall promptly remit to the Indemnifying Party the
excess (if any) of (i) the amount paid by the Indemnifying Party in respect of such Loss, plus the amount received from the third party in respect thereof, less (ii) the full amount of Loss. 
 8.7 Payments. The Indemnifying Party shall pay all amounts payable pursuant to this Section 8, by wire transfer of immediately
available funds, promptly following receipt from an Indemnified Party of a bill, together with all accompanying reasonably detailed back-up documentation, for a Loss that is the subject of indemnification hereunder, unless the Indemnifying Party in
good faith disputes the Loss, in which event it shall so notify the Indemnified Party. In any event, the Indemnifying Party shall pay to the Indemnified Party, by wire transfer of immediately available funds, the amount of any Loss for which it is
liable hereunder no later than three days following any final determination of such Loss and the Indemnifying Party’s liability therefor. A “final determination” shall exist when (a) the parties to the dispute have reached an
agreement in writing, (b) a court of competent jurisdiction shall have entered a final and nonappealable order or judgment, or (c) an arbitration or like panel shall have rendered a final nonappealable determination with respect to
disputes the parties have agreed to submit thereto. 
 8.8 Characterization of Indemnification Payments. All payments made by an
Indemnifying Party to an Indemnified Party in respect of any claim pursuant to Section 8.2 or 8.3 hereof shall be treated as adjustments to the Purchase Price for Tax purposes. 
 8.9 Effect of Waiver of Condition. Neither the Purchaser’s nor the Seller’s right to indemnity pursuant to this Section 8
shall be adversely affected by its waiver of a condition to closing set forth in Sections 5 and 6 unless the express terms of such waiver also include a specific and unambiguous waiver of the right to indemnity with respect to the
matter that is the subject of the waiver. 
  

	9.	EMPLOYEE MATTERS. 

 9.1 Employment Matters. 

 (a) Immediately prior to the Closing, the Purchaser shall, or shall cause its applicable Affiliate to, extend, to
each Specified Employee who is not a Remaining Employee, an offer of employment (the “Offer Letter”) that, if accepted, would: (i) provide such Specified Employee with compensation, benefits and terms of employment (including
job title) that are substantially comparable in the aggregate to the compensation, benefits and terms of employment provided by the Seller (or any applicable Affiliate of the Seller) to such Specified 

  

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Employee immediately prior to the Closing (excluding defined benefit pension plans and retiree medical programs); and (ii) include a consent by each
Specified Employee to disclosure of the Specified Employee’s personnel file and transfer of such personnel file and other employment records pertaining to such Specified Employee, to the Purchaser. Effective on the Closing Date, the Seller (or
the applicable Affiliate of the Seller) shall accept the resignation of, and effective as of the Closing Date, the Purchaser will hire each such Specified Employee who is not a Remaining Employee and who accepts and executes the Offer Letter (such
employees who commence working for the Purchaser (or an Affiliate of the Purchaser) immediately following the Closing, collectively the “Hired Employees”). The Seller consents to the Purchaser (or an Affiliate of the Purchaser)
contacting such Specified Employees with respect to the desire of such employees to enter the employ of the Purchaser (or an Affiliate of the Purchaser) and the Seller shall cooperate in good faith with and use its commercially reasonable efforts to
assist the Purchaser to cause such Specified Employees to accept any offers of employment by the Purchaser (or an Affiliate of the Purchaser) and to execute Offer Letters. Notwithstanding the foregoing, nothing herein shall be construed as to
prevent the Purchaser (or an Affiliate of the Purchaser) from terminating the employment of any Hired Employee at any time after the Closing Date for any reason (or no reason), except as set forth in the Offer Letter of such Specified Employee
executed by the Purchaser (or an Affiliate of the Purchaser) pursuant to this Section 9.1. The Seller shall deliver to the Purchaser on or before the Closing Date (or as soon as reasonably practicable after the Closing Date) all
personnel files and employment records relating to the Hired Employees. Hired Employees will receive credit for such employees’ period of employment with the Seller (or an Affiliate of the Seller) for purposes of calculating severance benefits
required under any Legal Requirements and benefits under any vacation, entitled leave or severance plan (excluding, for the avoidance of doubt, any 401(k) plan) and the Purchaser’s Offer Letter to Hired Employees in the United States will
include a provision that the Purchaser will assume the Seller’s obligation with respect to the Vacation Accrual and the Hired Employee would consent to this in lieu of payment from the Seller for that portion of any Vacation Accrual;
provided, however, that if a Hired Employee received severance payment in connection with this Transaction or the transfer of such employee’s employment from the Seller (or an Affiliate of the Seller) to the Purchaser (or an
Affiliate of the Purchaser), such Hired Employee shall not receive credit from the Purchaser for such employee’s employment with the Seller (or any of its Affiliates) for purposes of severance benefits; provided, further, that a
Hired Employee shall only be entitled to receive credit from the Purchaser for such employee’s employment with the Seller (or any of its Affiliates) to the extent recognized by the Seller (or its Affiliates) under the applicable similar Seller
Plan, provided that such crediting of service does not result in any duplication of benefits and to the extent permitted by the Purchaser’s benefit plans. The Purchaser agrees that the Hired Employees will be eligible to participate in an
equity incentive program of the Purchaser. In the event the Seller is required by applicable Legal Requirements to pay to any Hired Employee the Vacation Accrual for such Hired Employee, the Purchaser shall promptly (and in any event within ten days
of receipt from the Seller of a statement setting forth the Vacation Accrual paid by the Seller and the applicable Hired Employees) reimburse the Seller for all such amounts. The Seller shall pay at or prior to the Closing all accrued but unpaid
vacation, holiday, flexible time off and sick pay of the Specified Employees in Noida, India through the Closing Date (“Noida Accrued Vacation”) to each such employee. The Seller shall deliver to the Purchaser a certificate, signed
by a duly authorized officer of the Seller and dated the Closing Date, setting forth for each Specified Employee in 
  

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Noida, India the amount of Noida Accrued Vacation for each such employee and stating that such amounts constitute the entire outstanding Noida Accrued
Vacation as of the Closing and that all such amounts have been paid to the affected Specified Employees at or prior to the Closing. Promptly (but in no event later than 10 Business Days) after receipt of such certificate, the Purchaser shall
reimburse the Seller for the Noida Accrued Vacation paid by the Seller to each such Specified Employee as set forth in the certificate and such reimbursement shall be treated as an increase to the Purchase Price. Any such Specified Employee that is
a Hired Employee shall not receive credit from the Purchaser for such employee’s employment with the Seller (or any of its Affiliates) for purposes of any vacation benefits accrued for such employee’s employment with the Seller (or any of
its Affiliates). 
 (b) If any inactive employee of the Seller listed on Schedule 9.1(b) who would otherwise
have received an offer of employment from the Purchaser in accordance with Section 9.1(a), becomes eligible to return from an approved leave of absence to active work status after the Closing Date during the 6-month period following the
commencement of that leave (or such shorter period following the commencement of that leave during which he would be entitled to reemployment under either applicable Legal Requirements or the Seller’s policies and procedures in existence
immediately prior to the Closing Date), the Purchaser shall, or shall cause its applicable Affiliate to, extend an offer of employment to such person and any such person who accepts such an offer and commences working for the Purchaser (or an
Affiliate of the Purchaser) shall be treated as a Hired Employee as of the date of hire by the Purchaser; provided, however, that no such employee of the Seller shall be guaranteed reinstatement to active service if he is incapable of working in
accordance with the policies, practices and procedures of the Purchaser (or an Affiliate of the Purchaser) or if his return to employment is contrary to the terms of his leave. 
 (c) The Seller hereby consents to the hiring by the Purchaser or an Affiliate of the Purchaser of the Hired Employees and waives,
with respect to the employment by the Purchaser or an Affiliate of the Purchaser of the Hired Employees, any claims or rights that the Seller or any Affiliate may have against the Purchaser or any of its Affiliates, against any of its or their
representatives or against any Hired Employee hired by the Purchaser under any noncompetition, confidentiality or employment agreement, to the extent such claims or rights arise as a result of the Purchaser’s employment of such Hired Employee;
provided, however, that the foregoing waiver shall not waive any claims or right as a result of the unauthorized use or disclosure of confidential information not related to the Business, the Transferred Assets or the Assumed
Liabilities. 
 (d) Any Specified Employee who does not accept an offer of employment by the Purchaser is hereinafter
referred to as a “Non-Transferring Employee.” The Seller shall indemnify and hold the Purchaser and its Affiliates harmless with respect to all Liabilities relating to any Non-Transferring Employee and Remaining Employee, including
(i) any employment-related liability and (ii) any liability relating to, arising under or in connection with any Seller Plan other than for Vacation Accrual and severance costs for such Remaining Employee which are to be reimbursed by the
Purchaser in accordance with Section 9.1(f). The Purchaser shall have no liability or responsibility with respect to any Non-Transferring Employee or Remaining Employee other than for Vacation Accrual and severance costs for such
Remaining Employee which are to be reimbursed by the Purchaser in accordance with Section 9.1(f). 
  

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 (e) The Seller shall indemnify and hold the Purchaser and its Affiliates harmless
with respect to any Hired Employee from (i) any employment-related liability to the extent it arises with respect to employment on or prior to the Closing Date and (ii) any liability relating to, arising under or in connection with any
Seller Plan. Notwithstanding the foregoing, the Purchaser shall be solely responsible for all Vacation Accrual and Severance Costs which are to be reimbursed by the Purchaser in accordance with Section 9.1(f) . 
 (f) If the Seller terminates the employment of any Remaining Employee within
thirty (30) days prior to, or thirty (30) days after, the Closing Date (the “Severance Period”), other than for cause, the Purchaser shall reimburse the Seller for severance costs paid by Seller (which shall be measured in
accordance with the severance policies of the Seller as provided in Schedule C hereto) relating to each such terminated Remaining Employee (the “Severance Costs”) and Vacation Accrual for such Remaining Employee. On or before
the 35th day following the Closing Date, the Seller shall deliver to the Purchaser a certificate, signed by a duly authorized officer of the Seller,
setting forth for each Remaining Employee who was terminated other than for cause during the Severance Period, the amount of Severance Costs and Vacation Accrual for each such employee and stating that all such amounts have been paid to the affected
employees at the time of their termination. Promptly (but in no event later than 10 Business Days) after receipt of such certificate, the Purchaser shall reimburse the Seller for the Severance Costs and Vacation Accrual paid by the Seller to each
such terminated Remaining Employee as set forth in the certificate and such reimbursement shall be treated as an increase to the Purchase Price. 
 9.2 Waiver of Waiting Period. With respect to each Hired Employee, the Purchaser shall use commercially reasonable efforts to waive all waiting periods and pre-existing condition exclusions for group health and dental coverage and
shall give appropriate credit for all co-payments and deductibles paid or accrued under the Seller’s employee benefit plans for the plan year in which the Closing occurs to the extent permitted by the Purchaser’s benefit plans. 

9.3 Certain Foreign National Employees. The parties recognize that the Specified Employees listed on Schedule 9.3 are in nonimmigrant
visa status or have applications for lawful permanent residence pending with the relevant Governmental Entities (the “Affected Foreign National Employees”). The parties further recognize that new or amended petitions with respect to
such Affected Foreign National Employees may be required in certain of these cases identified on Schedule 9.3, unless the Purchaser (or any of the Purchaser’s Affiliates, as the case may be), is deemed the “successor-in-
interest” to the Seller (as such term is used in pronouncements by the U.S. Citizenship and Immigration Service (“USCIS”)) with respect to such Affected Foreign National Employees. Accordingly, the Purchaser hereby agrees to
assume, the Seller’s obligations to the USCIS as “successor-in-interest” under such pending applications with respect to the related Affected Foreign National Employees (including any obligations arising from or under attestations
made in each certified and still effective Labor Condition Application (“LCA”) filed by the Seller with respect to any such Affected Foreign National Employees); provided that such assumption shall not grant to any such
Affected Foreign National Employee any rights enforceable by such employee against the Purchaser. Each party agrees to use commercially 

  

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reasonable efforts to take such actions as may reasonably be requested at and following the Closing Date to document to the USCIS or such other Governmental
Entity, as the case may be, as may be necessary to memorialize the “successor-in-interest” relationship with respect to any Affected Foreign National Employees. The Seller shall provide the Purchaser with true and complete copies of all
applications, petitions and other documentation related to the Affected Foreign National Employees’ immigration status on or before the Closing Date. 
 9.4 W-2/Payroll Matters. The Seller and the Purchaser shall adopt the “standard procedure” for preparing and filing IRS Forms W-2 (Wage and Tax Statements), as described in Revenue Procedure 2004-53.
Under this procedure, the Purchaser, as the successor employer, shall provide, as applicable, all required Forms W-2 to all Hired Employees reflecting all wages paid and Taxes withheld by the Purchaser as the successor employer for the portion of
the calendar year beginning on the day after the Closing Date. The Seller as the predecessor employer shall provide Forms W-2 to all Hired Employees reflecting all wages paid and taxes withheld by the Seller or its Affiliate for the portion of the
calendar year beginning January 1, 2009 and ending on the Closing Date. In addition, the Seller and the Purchaser shall adopt the “standard procedure” of Revenue Procedure 2004-53 for purposes of filing IRS Forms W-4 (Employee’s
Withholding Allowance Certificate) and W-5 (Earned Income Credit Advance Payment Certificate). Under this procedure, the Seller shall keep on file all IRS Forms W-4 and W-5 provided by the Hired Employees for the period required by applicable law
concerning record retention and the Purchaser will obtain new IRS Forms W-4 and W-5 with respect to each Hired Employee. 
 9.5 COBRA.
The Seller shall be responsible for all liabilities relating to or arising under COBRA and any similar state law for employees of the Business and their beneficiaries who experience a “qualifying event” (as defined under COBRA) at any time
on or prior to the Closing Date. The Seller agrees that it shall be the Seller’s sole responsibility to provide the required notices under COBRA to all M&A Qualified Beneficiaries (as defined in Treas. Reg. Section 54.4980B-9, Q&A
4), and to provide coverage under COBRA to such individuals. 
 9.6 WARN. The Seller shall be responsible for providing or discharging
any and all notifications, benefits and liabilities to, as applicable, Specified Employees and Governmental Entities required by the WARN Act due to Employment Loss occurring to Specified Employees as a result of the transactions contemplated by
this Agreement; provided, however, that the Purchaser shall be responsible for any obligation with respect to the Hired Employees under the WARN Act arising solely as a result of action taken by the Purchaser on or after the Closing
Date. 
 9.7 No Third Party Rights. Notwithstanding the foregoing, nothing contained herein shall (i) be treated as an amendment
of any particular employee benefit plan, (ii) give any third party any right to enforce the provisions of this Section 9 or (iii) obligate the Purchaser (or any Affiliate of the Purchaser) to (x) maintain any particular
employee benefit plan or (y) retain the employment of any particular employee. 
 9.8 Employee Communications. Prior to making
any written or oral communications to the Specified Employees pertaining to compensation or benefit matters that are affected by the transactions contemplated by this Agreement, the Seller shall provide the Purchaser with a copy of the intended
communication, the Purchaser shall have a reasonable period of time to review and comment on the communication, and the Purchaser and the Seller shall cooperate in providing any such mutually agreeable communication. 
  

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 9.9 401(k) Plan. The account balances of the Hired Employees who participate in the retirement
plan maintained by the Seller or its Affiliate that is intended to qualify under Section 401(a) of the Code and that contains a cash or deferred arrangement under Section 401(k) of the Code (“Seller 401(k) Plan”) shall be
fully vested as of the Closing Date and the Seller shall take any actions necessary to ensure that such account balances are distributable from the Seller 401(k) Plan on and after the Closing Date. 
  

	10.	MISCELLANEOUS. 

 10.1 No Implied
Representations. The Parties acknowledge that, except as expressly set forth in Sections 2 and 3 and in the Ancillary Agreements, neither Party has made or is making any representations or warranties whatsoever to the other,
implied or otherwise. 
 10.2 Further Actions. 
 (a) From and after the Closing Date, each party hereto shall cooperate (and shall cause its Affiliates to cooperate) with the other
party, and shall cause to be executed and delivered such documents and cause such other actions to be taken as the other party may reasonably request, for the purpose of evidencing and consummating the Transactions. 
 (b) The Purchaser: (i) acknowledges that certain of the Transferred Assets may inadvertently include or have incorporated into
them certain other assets that are not part of the Transferred Assets (such as, by way of example only, information or software retained on a computer hard drive); (ii) agrees to promptly convey such other assets to the Seller, or dispose of
such other assets, each in the manner reasonably requested by the Seller (provided that the Purchaser and the Seller shall jointly share any out-of-pocket costs or expenses associated with the foregoing); and (iii) agrees that, without the
prior written consent of the Seller, neither it nor any of its Affiliates will use any of such other assets in any way whatsoever or disclose any information contained in such other assets or use such other assets for the benefit of the Purchaser or
its Affiliates or any other third party (other than the Seller and its Affiliates). 
 (c) The Seller:
(i) acknowledges that certain Transferred Assets may inadvertently not be transferred and delivered as of the Closing Date; (ii) agrees to promptly convey such assets to the Purchaser in the manner reasonably requested by the Purchaser
(provided that the Purchaser and the Seller shall jointly share any out-of-pocket costs or expenses associated with the foregoing); and (iii) agrees that, without the prior written consent of the Purchaser, neither it nor any of its Affiliates
will use any of such assets in any way whatsoever or disclose any information contained in such assets or use such assets for the benefit of the Seller or its Affiliates or any other third party (other than the Purchaser and its Affiliates).

 (d) The Seller shall use its reasonable efforts to obtain all Seller Required Approvals not obtained on or before
the Closing Date as promptly as practicable after the Closing Date; provided, however, that none of the Seller or the Purchaser nor any of their respective Affiliates shall be required to pay any consideration to obtain any Seller
Required 

  

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Approvals other than, in the case of any Seller Required Approval that is a consent relating to a contract, any de minimis fees, expenses or other
consideration or other fees or expenses required to be paid pursuant to the express provisions of such contract, which consideration, fees or expenses shall be paid by the Seller. 
 (e) The Seller shall use its reasonable efforts to, at the Purchaser’s request and sole expense, assist the Purchaser in
curing any defects in title for any of the Transferred Patents or Other Transferred Patents. 
 10.3 Governing Law; Submission to
Jurisdiction; Selection of Forum; Waiver of Trial By Jury. THE CORPORATE LAWS OF THE STATE OF DELAWARE SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION,
VALIDITY, ENFORCEMENT AND INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. THE COMPANY AND THE INVESTOR HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE
AND FEDERAL COURTS SITTING IN ORANGE COUNTY, CALIFORNIA OR SANTA CLARA COUNTY, CALIFORNIA (AS MUTUALLY AGREED BY THE PARTIES) FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY
TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR
THE INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE
TRANSACTION DOCUMENTS) AND SUCH PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. Notwithstanding anything to the contrary herein, neither Party may commence any action or proceedings (other than temporary injunction) in respect of any
claim arising out of or related to this Agreement or the transactions contained in or contemplated by this Agreement and the Ancillary Agreements unless such Party has used reasonable commercial efforts to negotiate and resolve the dispute with the
other Party for 30 days. Each Party agrees that it will negotiate in good faith with the other Party through officers ranked Vice President or higher during such 30-day period in an effort to resolve any such dispute. 
 10.4 Notices. Any notice or other communication required or permitted to be delivered to either Party under this Agreement must be in writing and
will be deemed properly delivered, given and received when delivered (by hand, certified mail, return receipt requested, by courier or express delivery service or by facsimile) to the Person at the address, or facsimile telephone number set forth
beneath the name of such Party below (or to such other address or 

  

 49 

 
facsimile telephone number as such Party shall have specified in a written notice given to the other Party): 
 if to the Purchaser: 
 Ikanos Communications,
Inc. 
 47669 Fremont Boulevard 
 Fremont, CA 94538 
 Attention: Mike Gulett, Chief Executive Officer 
 Facsimile: (408) 317-0454 
 with copies
to: 
 Wilson Sonsini Goodrich & Rosati 
 Professional Corporation 
 One Market, Spear Tower, Suite 3300 
 San Francisco, CA 94105 
 Attention: Robert T.
Ishii 
 Facsimile No.: (415) 947-2099 
 and: 
 Latham & Watkins LLP 
 140 Scott Drive 
 Menlo Park, CA 94025

 Attention: Christopher L. Kaufman 
                   Michelle Bushore 
 Facsimile: (650) 463-2600 
 if to the Seller: 
 Conexant Systems, Inc. 
 4000 MacArthur Blvd. M/S E01-339 
 Newport Beach, CA 92660 
 Attention: General
Counsel 
 Facsimile: (949) 483-5536 
 with a copy to: 
 O’Melveny & Myers LLP 
 610 Newport Center Drive 
 Newport Beach, CA 92660 
 Attention: J. Jay Herron 
                   Andor D. Terner 
 Facsimile: (949) 823-6994 
  

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 10.5 Public Announcements. Notwithstanding anything to the contrary contained herein, except as
may be required by any Legal Requirement, each Party shall provide each other with a reasonable opportunity to review and to comment upon, and each Party shall specifically approve in advance, any press release or other public statement or filing
relating to this Agreement or any of the Transactions. 
 10.6 Fees and Expenses. Except to the extent specifically provided otherwise
herein, each Party hereto shall bear and pay all fees, costs and expenses that have been incurred or that will be incurred in the future by such party in connection with: (i) the negotiation, preparation and review of the Transactional
Agreements and any other document and certificate related thereto; (ii) the preparation and submission of any filing or notice required be made or given by such party in connection with any of the Transactions; and (iii) the consummation
and performance of the Transactions; provided, that the Parties shall share equally in the filing fee for any notification and Report Forms required to be filed with the Federal Trade Commission and Department of Justice under the HSR Act
pursuant to this Agreement. 
 10.7 Books and Records. To the extent that any portion of the Books and Records is, at the Closing Date
held by the Seller but physical possession of such Books and Records is not transferred on the Closing Date, the Seller shall be obligated to deliver that portion of the Books and Records only upon the request of the Purchaser, provided that the
Seller will cooperate reasonably with the Purchaser at the Purchaser’s request to identify any such Books and Records held by the Seller. The Seller shall be entitled to retain copies of the Books and Records in its possession in accordance
with its existing document retention policy for administrative, non-business purposes only; provided that such Books and Records shall be used solely for such purposes and shall be kept strictly confidential and not disclosed to any other person,
except as may be required by Legal Requirement. The Seller shall not be obligated to retain such Books and Records beyond the period specified in the Seller’s existing document retention policies. Each party agrees that it will cooperate with
and make available to the other party, during normal business hours, all Books and Records, information and employees (without substantial disruption of employment) retained and remaining in existence after the Closing which are necessary or useful
in connection with any Tax inquiry, audit, investigation or dispute, any litigation or investigation or any other matter requiring any such Books and Records, information or employees for any reasonable business purpose. The party requesting any
such Books and Records, information or employees shall bear all of the out-of-pocket costs and expenses (including attorneys’ fees, but excluding reimbursement for salaries and employee benefits) reasonably incurred in connection with providing
such Books and Records, information or employees. 
 10.8 Nonsolicitation and Non-Competition. 
 (a) During the period beginning upon the Closing and ending on the second anniversary of the Closing (the “No-Hire
Period”) the Parties shall not, and shall ensure that their respective Affiliates do not, without the prior written consent of the other Party, directly or indirectly hire (including by contracting through an independent contractor,
consultant or other third party) any Restricted Employee. During the period beginning upon the Closing and ending on the second anniversary of the Closing (the “Non-Solicitation Period”) the Parties shall not, and shall ensure that
their respective Affiliates do not, without the prior written consent of the 

  

 51 

 
other Party, directly or indirectly solicit for employment (including by contracting through an independent contractor, consultant or other third party) any
Restricted Employee of the other Party. “Restricted Employee” shall mean, in the case of the employees of the Purchaser, any Hired Employee, and, in the case of the employees of the Seller, any person who is an employee of the
Seller immediately prior to the Closing Date and who has been actively involved in the Transactions (but is not a Hired Employee) or any individual that is identified on Schedule 10.8(a). Notwithstanding the foregoing provisions of this
Section 10.8, such provisions will not prevent either Party from (i) causing to be placed any general advertisement or similar notice that is not targeted specifically at employees of the other Party or its Affiliates, or
(ii) engaging any recruiting firm or similar organization to identify or solicit persons for employment on behalf of such Party, which firm or organization may solicit employees of the other Party, as long as such recruiting firm or
organization is not instructed to target any employees of the other Party or its Affiliates. 
 (b) The Seller agrees
that for the period commencing on the Closing Date and expiring on the third anniversary of the Closing Date neither it nor any of its Affiliates shall, directly or indirectly, alone or with others, as stockholders or otherwise, invest in,
contribute capital to, raise capital for or participate in the business or management of any business anywhere in the world that engages in the design, development, marketing, sale, offer for sale, use, importation or distribution of products that
are designed to originate, transmit or receive information using DSL Technologies (as defined in the IP License Agreement), PON Technologies (as defined in the IP License Agreement) or Prohibited IAD Technologies (as defined in the IP License
Agreement) (such products, “Restricted Products”); provided, however, that this Section 10.8(b) shall not preclude the Seller or any of its Subsidiaries from (x) being acquired by means of any business
combination (including an asset purchase, merger or consolidation) by any Person; (y) engaging in any merger, consolidation or any other business combination with any Person not subject to clause (x) if the stockholders of the Seller or
any Subsidiary immediately prior to consummation of such transaction will own 50% or less of the outstanding voting securities of the resulting or surviving entity (or parent thereof); or (z) engaging in a Competing Business or competing with
the Business as a result of any transaction contemplated by clauses (x) or (y) to the extent that the Person acquiring the Seller engaged in such Competing Business prior to the commencement of such transaction; provided that such
Person shall not utilize any assets or rights (including rights under the IP License Agreement) acquired from the Seller or its Subsidiaries (whether by merger, asset purchase, consolidation or other business combination) in any respect to engage in
a Competing Business on or before the third anniversary of the Closing Date. 
 10.9 Assignment. Neither Party may assign any of its
rights or delegate any of its obligations under this Agreement (whether voluntarily, involuntarily, by way of merger or otherwise) to any other Person without the prior written consent of the other Party; provided, however, that the
Seller may, prior to the Closing, assign to any Person its right to receive all or any portion of the cash payment to be made by the Purchaser at the Closing, and that, subject to Section 1.15, the Purchaser may assign any and all of its
rights under this Agreement or any other Transaction Agreement to one or more of its subsidiaries (but no such assignment shall relieve the Purchaser of any of its obligations hereunder). 
  

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 10.10 Parties in Interest. Nothing in this Agreement express or implied is intended to provide any
rights or remedies to any employee of the Seller or to any other Person other than the Parties, Indemnified Parties and their respective successors, legal representatives and permitted assigns. 
 10.11 Severability. In the event that any provision of this Agreement, or the application of such provision to any Person or set of circumstances,
shall be determined to be invalid, unlawful, void or unenforceable to any extent, (a) a suitable and equitable provision shall be substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and purpose of such
invalid or unenforceable provision and (b) the remainder of this Agreement and the application of such provision to Persons or circumstances other than those as to which it is determined to be invalid, unlawful, void or unenforceable, will not
be affected and will continue to be valid and enforceable to the fullest extent permitted by law. 
 10.12 Entire Agreement. This
Agreement (including all Schedules and Exhibits hereto), the Confidentiality Agreement (which remains in full force and effect) and the Ancillary Agreements set forth the entire understanding of the Parties and supersede all prior agreements and
understandings, oral or written, between the Parties relating to the subject matter hereof and thereof. In the event of any conflict or inconsistency between the terms of this Agreement and any Ancillary Agreement, the terms of this Agreement shall
govern. 
 10.13 Waiver. Any provision of this Agreement may be waived if, and only if, such waiver is in writing and signed by the
party against whom the waiver is to be effective. No failure on the part of either Party to exercise any power, right, privilege or remedy under this Agreement, and no delay on the part of either Party in exercising any power, right, privilege or
remedy under this Agreement, will operate as a waiver thereof. No single or partial exercise of any such power, right, privilege or remedy will preclude any other or further exercise thereof or of any other power, right, privilege or remedy.

 10.14 Amendments. This Agreement may not be amended, modified, altered or supplemented except by means of a written instrument
executed on behalf of both Parties. 
 10.15 Bulk Sales. The Seller and the Purchaser agree to waive compliance with Article 6 of
the Uniform Commercial Code as adopted in each of the jurisdictions in which any of the Transferred Assets are located to the extent that such Article is applicable to the transactions contemplated hereby. 
 10.16 Counterparts. This Agreement may be executed in several counterparts, each of which will constitute an original and all of which, when taken
together, will constitute one and the same Agreement. 
 10.17 Interpretation of Agreement. 
 (a) Each Party acknowledges that it has participated in the drafting of this Agreement, and any applicable rule of construction to
the effect that ambiguities are to be resolved against the drafting party will not be applied in connection with the construction or interpretation of this Agreement. 
  

 53 

 (b) Whenever required by the context hereof, the singular number will include the
plural, and vice versa; the masculine gender will include the feminine and neuter genders; and the neuter gender will include the masculine and feminine genders. 
 (c) As used in this Agreement, the words “include” and “including,” and variations thereof, will not be deemed
to be terms of limitation, and will be deemed to be followed by the words “without limitation.” 
 (d) Unless
the context otherwise requires, references in this Agreement to “Sections,” “Schedules” and “Exhibits” are intended to refer to Sections of and Schedules and Exhibits to this Agreement. 
 (e) Any definition of or reference to any law, act, agreement, instrument or other document herein shall be construed as referring
to such law, act, agreement, instrument or other document as from time to time amended, supplemented or otherwise modified. 
 (f) Any definition of or reference to any law, statute or treaty shall be construed as referring to any successor law, statute or treaty and to any rules and regulations promulgated thereunder. 
 (g) The table of contents of this Agreement and the bold-faced headings contained in this Agreement are for convenience of
reference only, will not be deemed to be a part of this Agreement and will not be referred to in connection with the construction or interpretation of this Agreement. 
 10.18 Certain Definitions. 
 For purposes of this Agreement, the term: 
 “Accounts Receivable” shall mean all trade accounts and notes receivable and other miscellaneous receivables of the Business as of the
Closing Date arising out of the sale or other disposition of goods or services of the Business. 
 “Affected Foreign National
Employees” shall have the meaning set forth in Section 9.3. 
 “Affiliate” shall mean, with respect to
any Person, any other Person that as of the date of the Agreement or as of any subsequent date, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with, such specified Person.

 “Agreement” shall mean this Asset Purchase Agreement, including the Schedules, the Seller Disclosure Schedules and the
Purchaser Disclosure Schedules. 
 “Allocation” shall have the meaning set forth in Section 1.9. 
 “Allocation Arbiter” shall have the meaning set forth in Section 1.9. 
 “Ancillary Agreements” shall have the meaning set forth in Section 1.10. 
  

 54 

 “Antitrust Laws” shall have the meaning set forth in Section 4.3(a).

 “Asset Allocation Statement” shall have the meaning set forth in Section 1.9. 
 “Assignment and Assumption Agreements” shall have the meaning set forth in the Recitals. 
 “Assumed Liabilities” shall have the meaning set forth in Section 1.6(a). 
 “Base Inventory Value” shall mean $14,000,000, net of excess and obsolete inventory reserves (determined in accordance with GAAP
consistently applied with the Seller’s past practices). 
 “Books and Records” shall mean all (i) books, records
(including customer, supplier, and purchasing records), lists (including customer, supplier and distributor lists), financial data, files, reports, plans, records and manuals primarily related to the Seller Products or used primarily in the
Business, (ii) product, business and marketing plans and promotional literature primarily related to the Seller Products and (iii) all product and design manuals, plans, drawings, technical manuals, operating records and all other work
product (in any media) primarily for the Seller Products but excluding (A) any information or records relating to the Seller’s employees, and (B) any such items to the extent (x) they are included in or primarily related to any
Excluded Assets or Excluded Liabilities or (y) any Legal Requirement prohibits their transfer. 
 “Business” shall have
the meaning set forth in the Recitals. 
 “Business Day” shall mean any day other than a Saturday, a Sunday or a day on
which banks in San Francisco are authorized or obligated by Legal Requirement or executive order to close. Any other reference to a “day” herein shall mean a calendar day. 
 “Cash Closing Payment” shall have the meaning set forth in Section 1.3(a). 
 “Channel Inventory” shall have the meaning set forth in Section 1.4(e). 
 “Chosen Courts” shall have the meaning set forth in Section 10.3. 
 “Claim” shall mean all past, present and future disputes, claims, controversies, demands, rights, obligations, liabilities, actions and
causes of action of every kind and nature, including: (i) any unknown, unsuspected or undisclosed claim; and (ii) any claim, right or cause of action based upon any breach of any express, implied, oral or written contract or agreement.

 “Claim Notice” shall have the meaning set forth in Section 8.4(a). 
 “Closing” shall have the meaning set forth in Section 1.11. 
 “Closing Date” shall have the meaning set forth in Section 1.11. 
 “Closing Inventory Value” shall have the meaning set forth in Section 1.4(a). 
 “COBRA” shall have the meaning set forth in Section 2.8(b). 
  

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 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Competing Business” shall mean any business anywhere in the world that engages in the design, development, marketing, sale, offer for
sale, use, importation or distribution of the Restricted Products. 
 “Confidentiality Agreement” shall mean the Mutual
Confidentiality Agreement between the Parties dated as of July 22, 2008. 
 “Consent” shall mean any consent, approval
or waiver. 
 “Copyrights” shall have the meaning set forth in the definition of “Intellectual Property.”

 “CPA Firm” shall mean KPMG LLP or such other firm of independent certified public accountants not otherwise currently or
during the past three years providing services to the Seller or the Purchaser as to which the Seller and the Purchaser shall mutually agree. 
 “Deductible” shall have the meaning set forth in Section 8.2(b). 
 “DGCL” shall mean
the Delaware General Corporation Law. 
 “Direct Claim” shall have the meaning set forth in Section 8.5.

 “DSL Products” shall mean those products sold by the Seller or included in the Seller’s product roadmap as of the
date of this Agreement that are designed to originate, transmit, or receive information using DSL Technologies (as defined in the IP License Agreement) or PON Technologies (as defined in the IP License Agreement) or that
are Prohibited IAD Technologies (as defined in the IP License Agreement). 
 “Employee Offer Letter” shall mean the
employment offer letter entered into between the Purchaser and the Key Employee, dated the date hereof, but effective on the Closing Date, a copy of which has been provided to the Seller. 
 “Employment Loss” shall mean “employment loss” as defined in the WARN Act. 
 “Encumbrances” shall mean lien, pledge, charge, encumbrance, security interest, option, mortgage, easement, or other restriction or
third party right of any kind, including any right of first refusal. 
 “ERISA” shall have the meaning set forth in
Section 2.8(a). 
 “ERISA Affiliate” shall have the meaning set forth in Section 2.8(b). 

“Escrow Agent” shall have the meaning set forth in Section 1.3(b). 
 “Escrow Agreement” shall have the meaning set forth in Section 1.5(a). 
 “Escrow Amount” shall have the meaning set forth in Section 1.3(b). 
  

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 “Escrow Fund” shall have the meaning set forth in Section 1.5(a).

 “Exchange Rate” shall mean, with respect to a particular currency for a particular day, the rate of exchange quoted by
the New York edition of The New York Times on the date of determination as applicable to trading among banks at 4:00 p.m. (New York time) on such day (or at such other time on such date as is specified in The New York Times) in New York foreign
exchange markets for such other currency. 
 “Excluded Assets” shall have the meaning set forth in Section 1.2.

 “Excluded Liabilities” shall mean all Liabilities of the Seller or any of its Affiliates or related to the Business or
the Transferred Assets other than the Assumed Liabilities, including (i) any Liabilities with respect to the Seller’s leases for its facilities listed on Schedule 10.18(a); (ii) any Liabilities, including Liabilities for
refunds, rebates, rights of return or similar obligations, with respect to any Seller Products sold prior to the Closing Date; (iii) any Liabilities (excluding in each instance in this clause (iii), Vacation Accrual and Severance Costs) of the
Seller as an employer related to the employee rights, compensation and benefits, including any Liability to or in respect of any employees or former employees of the Seller or its Affiliates, including (A) any claim or demand of a current or
former employee relating to or arising as a result of employment, termination thereof, or an employment agreement, whether or not written, between the Seller or its Affiliates and any Person, including, for this purpose, with respect to any Person
claiming entitlements or benefits on the basis of a claimed employer-employee relationship between the Seller and such Person, (B) any Liability under any Seller Plan at any time maintained, contributed to or required to be contributed to by or
with respect to the Seller or its Affiliates or under which the Seller or its Affiliates may incur Liability, or any contributions, benefits or Liabilities therefor, or any Liabilities with respect to the Seller’s or its Affiliates’
withdrawal or partial withdrawal from or termination of any the Seller Plan, (C) any Liability under COBRA, (D) any Liability of the Seller or its Affiliates under the WARN Act, and any similar state, local U.S. or non-U.S. law or
regulation, (E) any Liability of the Seller or its Affiliates for payroll obligations and/or mandatory or customary payment and/or expense accounts and/or benefit and/or entitlement for employees of the Seller or its Affiliates, and
(F) any claim of an unfair labor practice, or any claim under any state unemployment compensation or worker’s compensation law or regulation or under any federal, state or non-U.S. employment discrimination law or regulation, which shall
have been asserted on or prior to the Closing Date or is based on acts or omissions which occurred exclusively on or prior to the Closing Date; (iv) other than Vacation Accrual, any Liabilities with respect to Non-Transferring Employees, any
Remaining Employees (other than for Severance Costs for such employees which are to be reimbursed by the Purchaser in accordance with Section 9.1(f)), and any of the Seller’s employees that are not Specified Employees; (v) with
respect to the Non-Transferring Employees and the Remaining Employees, any “relevant transfer” liability as defined under the Transfer of Undertakings (Protection of Employment) Regulations 2006 (“TUPE”) or any other liability
under TUPE and any similar state, local, non-U.S. law or regulation other than for Severance Costs for such employees (which are to be reimbursed by the Purchaser in accordance with Section 9.1(f)); (vi) any Liabilities for
Intellectual Property infringement or misappropriation or unpaid royalty payments with respect to activities conducted by the Seller prior to the Closing Date, including any Seller Products sold prior to the Closing Date, but excluding any
Liabilities for Intellectual Property infringement or misappropriation or unpaid 

  

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royalty payments attributable to the Seller’s sale of the Transferred Inventory to the Purchaser or the Purchaser’s subsequent sale of such
Transferred Inventory (“Pre-Closing Infringement”); and (vii) the Proportionate Share (as defined below) of any and all costs and expenses arising from the defense or settlement of any claim that asserts any Pre-Closing
Infringement (“Pre-Closing Infringement Claim”), even if such claim also asserts Patent infringement described in Section 1.6(a)(viii), provided that damages awarded (including lump sum awards or agreements to pay
royalties) pursuant to such claim that are attributable to Patent infringement described in Section 1.6(a)(viii), along with the remainder (after deducting the Proportionate Share) of any and all costs and expenses arising from the
defense or settlement of any Pre-Closing Infringement Claim shall be paid by Purchaser as an Assumed Liability. The term “Proportionate Share” means the percentage of the costs and expenses arising from the defense or settlement of
a Pre-Closing Infringement Claim that is equal to the percentage of the damages awarded or amounts agreed to (including lump sum awards or agreements to pay royalties) in a settlement in connection with such Pre-Closing Infringement Claim that are
attributable to Pre-Closing Infringement (e.g., if the damages arising from a Pre-Closing Infringement Claim are $100 and $60 of that amount is attributable to Pre-Closing Infringement, the Proportionate Share shall be 60%). 
 “Final Inventory Value” shall have the meaning set forth in Section 1.4(e). 
 “Financial Information” shall have the meaning forth in Section 2.3. 
 “GAAP” shall mean United States generally accepted accounting principles. 
 “Governmental Authorizations” means all licenses, permits, certificates and other authorizations and approvals related to the Business
and issued by or obtained from a Governmental Entity. 
 “Governmental Entity” shall mean any United States (federal, state
or local) or foreign government, any governmental body, agency, authority, instrumentality, subdivision, court, or commission, or any other governmental authority or instrumentality, or any quasi-government or private body exercising an regulatory,
taxing, importing or other governmental or quasi-governmental authority. 
 “Hired Employees” shall have the meaning set
forth in Section 9.1(a). 
 “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and
the rules promulgated thereunder. 
 “Import Duties” shall mean any import duties imposed by a Governmental Entity on the
sale of the Transferred Assets in the relevant jurisdiction from the Seller to the Purchaser. 
 “Indemnified Parties” shall
have the meaning set forth in Section 8.2(a). 
 “Indemnifying Party” shall have the meaning set forth in
Section 8.4(a). 
 “Indenture” shall have the meaning set forth in Section 2.24(a). 
  

 58 

 “Intellectual Property” shall mean (i) trademarks, service marks, brand names,
certification marks, collective marks, d/b/a’s, domain names, logos, symbols, trade dress, assumed names, fictitious names, trade names, and other indicia of origin, all applications and registrations for the foregoing, and all goodwill
associated therewith and symbolized thereby, including all renewals of same (collectively, “Trademarks”); (ii) all patents, registrations and patent applications therefor, including divisions, continuations,
continuations-in-part and renewal applications, and including renewals, extensions and reissues (collectively, “Patents”); (iii) trade secrets, confidential information and know-how, including inventions and discoveries (as
well as invention disclosures therefor), whether patentable or not, processes, schematics, business methods, formulae, drawings, prototypes, models, designs, customer lists and supplier lists (collectively, “Trade Secrets”);
(iv) published and unpublished works of authorship, whether copyrightable or not (including databases and other compilations of information), including mask rights and computer software, copyrights therein and thereto, registrations and
applications therefor, and all renewals, extensions, restorations and reversions thereof (collectively, “Copyrights”); and (v) any other intellectual property or proprietary rights. 
 “Intellectual Property Assignment Agreements” shall have the meaning set forth in the Recitals. 
 “Intellectual Property Rights” shall mean all rights of the following types, which exist under the laws of any jurisdiction in the
world: (i) rights associated with works of authorship, including exclusive exploitation rights, Copyrights, moral rights, and mask work rights; (ii) Trademark and trade name rights and similar rights; (iii) trade secret rights;
(iv) Patents and industrial property rights; (v) other proprietary rights in intellectual property of every kind and nature; and (vi) all registrations, renewals, extensions, continuations, divisions, or reissues of, and applications
for, any of the rights referred to in clauses “(i)” through “(v)” above. 
 “Intracompany Receivables”
shall mean all account, note or loan receivables recorded on the books of the Seller for goods or services sold or provided by the Business to the Seller or advances (cash or otherwise) or any other extensions of credit made by the Business to the
Seller or any Subsidiary. 
 “Inventory” shall mean all inventory primarily used in connection with the Business, wherever
located, including all finished goods whether held at any location or facility of the Seller or any of its Affiliates or in transit to the Seller or any of its Affiliates, in each case as of the Closing Date, except to the extent included in
Excluded Assets. 
 “IP Contracts” shall have the meaning set forth in Section 2.4(b). 
 “IP License Agreement” shall have the meaning set forth in the Recitals. 
 “Key Employee” shall mean the individual listed on Schedule A. 
 “LCA” shall have the meaning set forth in Section 9.3. 
 “Legal Requirement” shall mean any law, rule, regulation, constitution, principle of common law, resolution, ordinance, code, order,
edict, decree, rule, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity. 
  

 59 

 “Liabilities” shall mean any and all debts, liabilities, commitments and obligations of
any kind, whether fixed, contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or not accrued, asserted or not asserted, known or unknown, determined, determinable or otherwise, whenever or however arising (including,
whether arising out of any contract or tort based on negligence or strict liability) and whether or not the same would be required by GAAP to be reflected in financial statements or disclosed in the notes thereto. 
 “Licensed Non-Patent IP” shall have the meaning set forth in the IP License Agreement. 
 “Licensed Patents” shall have the meaning set forth in the IP License Agreement. 
 “Limited License” shall have the meaning set forth in Section 2.4(l). 
 “Local Purchase Agreements” shall mean one or more agreements in the forms mutually agreed by the Parties, each acting in good faith,
each of which will be between the Seller or a Seller Affiliate on the one hand and the Purchaser or an Affiliate of the Purchaser on the other hand, for the purchase and sale of a portion of the Transferred Assets under the laws and practice of a
local jurisdiction, to the extent reasonably requested by the Purchaser or the Seller, which shall be subject to the terms and conditions of this Agreement. 
 “Loss” or “Losses” shall mean Liabilities, costs, expenses, damages, diminutions in value, claims, interest and penalties (including reasonable attorneys’ and consultants’
fees and expenses and other costs of defending, investigating or settling claims) suffered or incurred by any Person (including in connection with any action brought or otherwise initiated by any Indemnified Party). 
 “Net Inventory” shall have the meaning set forth in Section 1.4(a). 
 “No-Hire Period” shall have the meaning set forth in Section 10.8(a). 
 “Noida Accrued Vacation” shall have the meaning set forth in Section 9.1(b). 
 “Non-Basketed Losses” shall have the meaning set forth in Section 8.2(b). 
 “Non-Governmental Authorizations” means all licenses, permits, certificates and other authorizations and approvals other than
Governmental Authorizations that are (i) held by the Seller or any of its Affiliates and (ii) related to the Business. 
 “Non-Solicitation Period” shall have the meaning set forth in Section 10.8(a). 
 “Non-Transferred Inbound IP Licenses” shall have the meaning set forth in Section 2.4(b). 
 “Non-Transferring Employee” shall have the meaning set forth in Section 9.1(d). 
  

 60 

 “Notice Period” shall have the meaning set forth in Section 8.4(a).

 “Offer Letter” shall have the meaning set forth in Section 9.1(a). 
 “Open Incoming POs” shall mean all purchase orders, release orders and similar agreements regarding the Seller Products from customers
and distributors, governed by the Seller’s standard terms and conditions as made available to the Purchaser on or before the date hereof, to the extent that the Seller Products have not been shipped to such customers or distributors on or prior
to the Closing Date. 
 “Open Outgoing POs” shall mean all purchase orders, release orders and similar agreements with the
Seller’s manufacturers, suppliers and other vendors with respect to the Business, governed by the Seller’s standard terms and conditions as made available to the Purchaser on or before the date hereof, to the extent that the applicable
product or service has not been delivered or rendered to the Seller on or prior to the Closing Date. 
 “Outbound IP
Licenses” shall have the meaning set forth in Section 2.4(a). 
 “Parties” shall have the meaning set
forth in the Preamble. 
 “Patents” shall have the meaning set forth in the definition of “Intellectual Property.”

 “Permitted Encumbrances” shall mean (i) Encumbrances specifically described in Section 10.18(a) of the
Seller Disclosure Schedules; (ii) mechanics’, materialmen’s, warehousemen’s, carriers’, workers’, or repairmen’s liens or other similar common law or statutory Encumbrances arising or incurred in the ordinary
course of Business and which would not impair the operation of the Business; (iii) liens for Taxes, assessments and other governmental charges not yet due and payable or being contested in good faith by appropriate proceedings;
(iv) Encumbrances arising under the Transferred Contracts; (v) with respect to leased real property, (A) easements, quasi-easements, licenses, covenants, rights-of-way, rights of re-entry or other similar restrictions, including any
other agreements, conditions or restrictions that would be shown by a current title report or other similar report or listing, (B) any conditions that may be shown by a current survey or physical inspection and (C) zoning, building,
subdivision or other similar requirements or restrictions; (vi) Encumbrances incurred in the ordinary course of business since October 3, 2008; and (vii) Encumbrances that would not materially impair the conduct of the Business, or
the use or value of the relevant Transferred Asset. 
 “Person” shall mean any individual, corporation, general partnership,
limited partnership, limited liability company, trust, association, firm, organization, company, business, entity, union, society or Governmental Entity. 
 “Pre-Closing Period” shall have the meaning set forth in Section 4.1. 
 For an
asset to be deemed to be “primarily” related to, used or held for use by the Business, 80% or more of its usage must be for the benefit of the Business. 
  

 61 

 “Post-Closing Tax Period” shall mean any Tax period beginning after the Closing Date and
that portion of a Straddle Period beginning after the Closing Date. 
 “Pre-Closing Tax Period” shall mean any Tax period
ending on or before the Closing Date and that portion of any Straddle Period ending on the Closing Date. 
 “Prohibited
Transaction” shall have the meaning set forth in Section 4.6(a). 
 “Property Taxes” means all real
property Taxes, personal property Taxes and similar ad valorem Taxes. 
 “Purchase Price” shall have the meaning set forth
in Section 1.3(b). 
 “Purchaser” shall have the meaning set forth in the Preamble. 
 “Purchaser Closing Certificate” shall have the meaning set forth in Section 6.8. 
 “Purchaser Disclosure Schedules” shall have the meaning set forth in Section 3. 
 “Purchaser Indemnified Parties” shall have the meaning set forth in Section 8.2(a). 
 “Purchaser Material Adverse Effect” means any event, change or effect that, when taken individually or together with all other adverse
changes and effects, would or would reasonably be expected to prevent or delay for more than ten (10) weeks the Purchaser’s consummation of the transactions contemplated hereby or under the Securities Purchase Agreement. 
 “Purchaser’s Calculation” shall have the meaning set forth in Section 1.4(a). 
 “Registered IP” shall mean all of the following rights included within the Transferred IP: (i) all issued patents and filed patent
applications; (ii) all registered copyrights; and (iii) all registered trademarks. 
 “Remaining Employees” shall
mean the Specified Employees to whom the Purchaser will not extend an offer of employment, who shall be listed on Schedule 10.18(b) which will be delivered by the Purchaser to the Seller thirty (30) days prior to the Closing. 

“Required Financial Statements” shall have the meaning set forth in Section 4.11. 
 “Restricted Employee” shall have the meaning set forth in Section 10.8(a). 
 “Restricted Products” shall have the meaning set forth in Section 10.8(b). 
 “Retention Plan” shall have the meaning set forth in Section 4.15. 
 “SEC” shall mean the Securities and Exchange Commission. 
 “Securities Purchase Agreement” shall mean that certain Securities Purchase Agreement, dated the date hereof, between the Purchaser and TWVC. 
  

 62 

 “Seller” shall have the meaning set forth in the Preamble. 
 “Seller 401(k) Plan” shall have the meaning set forth in Section 9.9. 
 “Seller Affiliate” shall have the meaning set forth in Section 2.1. 
 “Seller Closing Certificate” shall have the meaning set forth in Section 5.9. 
 “Seller Disclosure Schedules” shall have the meaning set forth in Section 2. 
 “Seller Indemnified Parties” shall have the meaning set forth in Section 8.3(a). 
 “Seller’s Knowledge” or any similar phrase means the collective knowledge, after due and reasonable investigation, of the officers
of the Seller and those other individuals listed on Schedule 10.18(c). 
 “Seller Material Adverse Effect” shall mean
any result, occurrence, change, event, circumstance, fact or effect (each, an “Effect”) that, individually or in the aggregate with any such other Effects (regardless of whether or not such Effect constitutes a breach of the
representations and warranties made by the Seller in this Agreement), is or is reasonably likely to be materially adverse to the Business or Transferred Assets (taken as a whole), provided, that in determining whether a Seller Material Adverse
Effect has occurred, there shall be excluded any Effect on the Business or Transferred Assets relating to or arising in connection with (a) changes in Legal Requirements or the adoption or amendment of financial accounting standards by the
Financial Accounting Standards Board (provided that such conditions do not have a materially disproportionate impact on the Transferred Assets or Business), (b) the declaration by the United States of a national emergency or war, or the
occurrence of any other calamity or crisis (including any act of terrorism) (provided that such conditions do not have a materially disproportionate impact on the Transferred Assets or Business), (c) general business or economic conditions
(provided that such conditions do not have a materially disproportionate impact on the Transferred Assets or Business), (d) conditions generally affecting the industry in which the Business operates (provided that such conditions do not have a
materially disproportionate impact on the Transferred Assets or Business), (e) the announcement or pendency of the transactions contemplated by any of the Transactional Agreements, (f) the occurrence, announcement or pendency of the
transactions contemplated by any of the Transaction Documents (as such term is defined in the Securities Purchase Agreement), (g) any failure by Seller to meet any internal projections or analyst estimates (but not the underlying reasons for
the failure to meet any internal projections or analyst estimates), and (h) any action taken by the Seller at the written request of the Purchaser or that the Purchaser consents to in writing. 
 “Seller Plan” shall have the meaning set forth in Section 2.8(a). 
 “Seller Product” shall mean any product designed, formulated, manufactured, processed, sold or placed in the stream of commerce by the
Business. 
 “Seller Required Approvals” shall have the meaning set forth in Section 2.12. 
 “Seller’s Objection” shall have the meaning set forth in Section 1.4(b). 
  

 63 

 “Severance Costs” shall have the meaning set forth in Section 9.1(f).

 “Specified Employees” shall mean: (i) the employees of the Seller (or an Affiliate of the Seller) identified on
Schedule 10.18(d) who serve the Business and who remain employees of the Seller (or an Affiliate of the Seller) immediately prior to the Closing; (ii) certain employees of the Seller (other than the Restricted Employees of the Seller)
who (A) perform selling, general or administrative functions for the Business, (B) were included in a list of employees performing such functions previously provided by the Seller to the Purchaser for the purpose of potential designation
by the Purchaser of such employees as “Specified Employees”, and (C) who remain employees of the Seller (or an Affiliate of the Seller) immediately prior to the Closing, who shall be listed on Schedule 10.18(e) which will be
delivered by the Purchaser to the Seller no later than thirty (30) days prior to the Closing, and (iii) each additional employee hired by the Seller (or an Affiliate of the Seller) after the date of this Agreement either (A) to
replace an employee identified on Schedule 10.18(d) or (B) in the ordinary course of business consistent with past practices to primarily serve the Business in any place, provided that in the case of any such additional employee hired
pursuant to either (A) or (B) the Purchaser has consented to the addition of such employee as a Specified Employee and such employee remains an employee of the Seller (or an Affiliate of the Seller) immediately prior to the Closing. The
Seller shall provide the Purchaser, at least two (2) Business Days prior to Closing, with an updated list of the Specified Employees. 
 “Straddle Periods” shall mean any Tax period beginning before or on and ending after the Closing Date. 
 “Subsidiary” means any Person (i) whose securities or other ownership interests having by their terms the power to elect a majority of the board of directors or other persons performing similar functions are owned or
controlled, directly or indirectly, by the Seller and/or one or more Subsidiaries, or (ii) whose business and policies the Seller and/or one or more Subsidiaries have the power to direct. 
 “Superior Proposal” means an unsolicited bona fide Takeover Proposal that the Board of Directors of the Seller has determined in
its good faith judgment, after taking into account all legal, financial and regulatory aspects of such Takeover Proposal (including the likelihood of consummation) and the Person making such Takeover Proposal, would result in a transaction more
favorable to the Seller’s shareholders from a financial point of view than the transaction contemplated by this Agreement. 
 “Survival Period” shall have the meaning set forth in Section 8.1. 
 “Takeover
Proposal” means any proposal or offer from any Person (other than the Purchaser) providing for any: (i) acquisition (whether in a single transaction or a series of related transactions) of all or substantially all of the assets of the
Seller; (ii) direct or indirect acquisition (whether in a single transaction or a series of related transactions) of more than 50% of the voting power of the Seller; (iii) tender offer or exchange offer that if consummated would result in
any Person beneficially owning at least 50% of the voting power of the Seller; or (iv) merger, consolidation, share exchange, business combination, recapitalization or similar transaction involving the Seller; in each case, which is contingent
on the termination of this Agreement. 
  

 64 

 “Tax Returns” means all reports and returns required to be filed with respect to Taxes,
including elections, declarations, disclosures, schedules, estimates and information returns. 
 “Taxes” means all federal,
state, local and foreign taxes and fees, including income, gross receipts, windfall profits, value added, severance, property, production, sales, use, duty, license, registration, excise, franchise, employment, withholding or similar taxes, together
with any interest, additions or penalties with respect thereto or with respect to failure to duly file, when due, any Tax Return, and any interest in respect of such additions or penalties, whether disputed or not. 
 “Termination Date” shall have the meaning set forth in Section 7.1(b). 
 “Third Party Claim” shall have the meaning set forth in Section 8.4(a). 
 “Trademarks” shall have the meaning set forth in the definition of “Intellectual Property.” 
 “Trade Secrets” shall have the meaning set forth in the definition of “Intellectual Property.” 
 “Transactional Agreements” shall mean: (i) the Agreement; (ii) each of the Ancillary Agreements; and (iii) all bills of
sale, assignments, business transfer agreements and other agreements delivered or to be delivered in connection with the transactions contemplated by the Agreement. 
 “Transactions” shall mean: (i) the execution and delivery of the respective Transactional Agreements; and (ii) all of the transactions contemplated by the respective Transactional
Agreements, including: (A) the sale of the Transferred Assets by the Seller to the Purchaser in accordance with the Agreement; (B) the assumption of the Assumed Liabilities by the Purchaser in accordance with the Agreement; and
(C) the performance by the Seller and the Purchaser of their respective obligations under the Transactional Agreements, and the exercise by the Seller and the Purchaser of their respective rights under the Transactional Agreements. 

“Transfer Taxes” shall have the meaning set forth in Section 1.8(a). 
 “Transferred Assets” shall have the meaning set forth in Section 1.1. 
 “Transferred Contracts” shall have the meaning set forth in Section 1.1(d). 
 “Transferred Fixed Assets” shall have the meaning set forth in Section 1.1(e). 
 “Transferred Inbound IP Licenses” shall have the meaning set forth in Section 2.4(b). 
 “Transferred Inventory” shall have the meaning set forth in Section 1.1(c). 
  

 65 

 “Transferred IP” or “Transferred Intellectual Property” shall mean,
collectively, the Transferred Patents and the Transferred Non-Patent IP. 
 “Transferred Non-Patent IP” shall have the
meaning set forth in Section 1.1(b). 
 “Transferred Patents” shall have the meaning set forth in
Section 1.1(a). 
 “Transition Services Agreement” shall mean an agreement by and between the Seller and the
Purchaser in substantially the form of Exhibit E, with Schedules A and B to such agreement to be mutually agreed by the Parties prior to the Closing, each acting in good faith. 
 “Trustee” shall have the meaning set forth in Section 2.24. 
 “TWVC” shall mean Tallwood III, L.P., a Delaware limited partnership, Tallwood III Partners, L.P., a Delaware limited partnership,
Tallwood III Associates, L.P., a Delaware limited partnership, and Tallwood III Annex, L.P., a Delaware limited partnership. 
 “USCIS” shall have the meaning set forth in Section 9.3. 
 “Vacation Accrual” shall
have the meaning set forth in Section 1.6(a). 
 “VAT” shall mean value added taxes. 
 “WARN Act” shall mean the Worker Adjustment and Retraining Notification Act, 29 U.S.C. Section 2101 et seq. (1988), as
amended, and any similar Legal Requirement under state or local law. 
  

 66 

 The Parties have caused this Agreement to be executed as of the date first written above. 
  

			
	IKANOS COMMUNICATIONS, INC.
		
	By:	 	/s/ Michael Gulett
	Name:	 	Michael Gulett
	Title:	 	President and Chief Executive Officer
	
	CONEXANT SYSTEMS, INC.
		
	By:	 	/s/ Scott Mercer
	Name:	 	Scott Mercer
	Title:	 	CEO

  

 67Securities Purchase Agreement

 Exhibit 10.2 
 EXECUTION COPY 
 SECURITIES PURCHASE AGREEMENT 
 SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated as of April 21, 2009, by and between Ikanos Communications, Inc., a
Delaware corporation with headquarters located at 47669 Fremont Blvd., Fremont, CA 94538 (the “Company”), and Tallwood III, L.P., a Delaware limited partnership (“Tallwood III”), Tallwood III Partners, L.P., a
Delaware limited partnership (“Tallwood III Partners”), Tallwood III Associates, L.P., a Delaware limited partnership (“Tallwood III Associates”), and Tallwood III Annex, L.P., a Delaware limited partnership
(“Tallwood III Annex”) (Tallwood III, Tallwood III Partners, Tallwood III Associates and Tallwood III Annex are together hereinafter referred to as the “Investors” and each individually, an
“Investor”). 
 BACKGROUND 
 A. The Company and the Investors are executing and delivering this Agreement in reliance upon the exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the
“Securities Act”), and Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act. 
 B. The Investors wish to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) one (1) share of
the Series A Preferred Stock, par value $0.001 per share, of the Company (the “Series A Preferred Stock”), (ii) twenty four million (24,000,000) shares of the common stock, par value $0.001 per share, of the Company
(“Common Stock”) and (iii) warrants, in substantially the form attached hereto as Exhibit A (the “Warrants”), to acquire up to seven million eight hundred thousand (7,800,000) shares of Common Stock
(the “Warrant Shares”). 
 C. The Series A Preferred Share, Common Shares, the Warrants and the Warrant Shares issued
pursuant to this Agreement are collectively referred to herein as the “Securities.” 
 D. Concurrently with the execution
and delivery of this Agreement, the Company is entering into an Stockholder Agreement, substantially in the form attached hereto as Exhibit B (the “Stockholder Agreement”), with the Investors with respect to the securities of
the Company held from time to time by the Investors, including the Series A Preferred Share, the Common Shares and the Warrant Shares. 
 E.
Concurrently with the execution and delivery of this Agreement, and as a condition and inducement to the Investors’ willingness to enter into this Agreement, certain directors and officers of the Company are entering into agreements,
substantially in the form attached hereto as Exhibit C (the “Voting Agreements”), pursuant to which such Persons have agreed, among other things, to vote the shares of Common Stock held by such Persons in favor of the sale
and issuance of the Securities, the Charter Amendment and the other transactions contemplated under this Agreement, subject to the terms of the Voting Agreements. 

 NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good
and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Investors agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 1.1 Definitions. In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated: 
 “Acquisition Proposal” has the meaning set forth in Section 5.1(a)(iii). 
 “Acquisition
Transaction” has the meaning set forth in Section 5.1(a)(iii). 
 “Affiliate” means any Person that,
directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act. 
 “Agreement” has the meaning set forth in the Preamble. 
 “BBA Business” has the meaning set forth in the definition of Conexant Asset Purchase Agreement. 
 “Business Day” means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed. 
 “Capitalization Date” means April 15, 2009. 
 “Certificate of Designation” means the certificate of designation creating a series of one share of preferred stock designated as Series A Preferred Stock of the Company in the form attached hereto as
Exhibit D. 
 “Charter Amendment” means the amendment to the certificate of incorporation of the Company in the form
attached hereto as Exhibit E. 
 “Closing” means the closing of the purchase and sale of the Securities pursuant to
Section 2. 
 “Closing Date” means the date and time of the Closing and shall be the date and time that is
mutually agreed to by the Company and the Investors, but no later than three Business Days following the satisfaction or waiver of the conditions to the obligations of the parties hereto in Article VI. 
 “Code” means the Internal Revenue Code of 1986, as amended. 
 “Common Shares” means the 24,000,000 shares of Common Stock, which are being issued and sold by the Company to the Investors at the
Closing pursuant to the terms of this Agreement. 
 “Common Stock” has the meaning set forth in the Preamble. 
  

 -2- 

 “Company” has the meaning set forth in the Preamble. 
 “Company Board” means the board of directors of the Company. 
 “Company Board Recommendation” has the meaning set forth in Section 5.2(a). 
 “Company Board Recommendation Change” has the meaning set forth in Section 5.2(b). 
 “Company Capital Stock” means Common Stock, Company Preferred Stock and any other shares of capital stock, voting securities or other
ownership interest, if any, of the Company. 
 “Company Charter Documents” means the certificate of incorporation
and bylaws of the Company, each as amended to date. 
 “Company Disclosure Letter” has the meaning set forth in
Section 3.1. 
 “Company ESPP” means the Company’s Amended and Restated 2004 Employee Stock Purchase
Plan. 
 “Company Options” means any options to purchase shares of Common Stock outstanding under any of the Company Stock
Plans. 
 “Company Plan” means any and all “employee benefit plans” (within the meaning of Section 3(3) of
ERISA and (B) any other employee benefit or compensation plans, policies or agreements, including any bonus, incentive, stock-based compensation, deferred compensation, supplemental executive retirement, employment, termination, severance,
retention, non-competition, compensation or change in control arrangements to which the Company or any Company Subsidiary are a party or which are sponsored by the Company or any Company Subsidiary for the benefit of any current or former director
or officer of the Company or any Company Subsidiary. 
 “Company Preferred Stock” means shares of preferred stock, par value
$0.001 per share, of the Company, including the Series A Preferred Stock. 
 “Company Restricted Stock” means any restricted
stock outstanding under any of the Company Stock Plans. 
 “Company Restricted Stock Units” means any restricted stock units
for Common Stock outstanding under any of the Company Stock Plans. 
 “Company Stock Plans” means (i) the
Company’s 1999 Stock Plan, as amended, (ii) the Company’s 2004 Equity Incentive Plan, as amended, (iii) Company ESPP, (iv) the Dorados 2004 Amended and Restated Stock Option Plan, as amended, and (v) the Company’s
Stock Option Agreement for Michael Ricci. 
 “Company Stockholder Meeting” has the meaning set forth in
Section 5.3. 
  

 -3- 

 “Company Stockholders” means holders of shares of Common Stock in their respective
capacities as such. 
 “Company Subsidiary” means any direct or indirect Subsidiary of the Company. 
 “Company Termination Fee” has the meaning set forth in Section 7.3(b)(v). 
 “Conexant” has the meaning set forth in the definition of Conexant Asset Purchase Agreement. 
 “Conexant Asset Purchase Agreement” means that certain Asset Purchase Agreement dated the date hereof, between the Company and Conexant
Systems, Inc., a Delaware corporation (“Conexant”) related to the Company’s acquisition of the Broadband Access product line from Conexant (the “BBA Business”). 
 “Conexant Expenses” means all reasonable out-of-pocket fees and expenses incurred in connection with the Conexant Asset Purchase
Agreement and the transactions contemplated thereby, including fees and expenses of financial advisors, legal counsel, consultants, investment bankers, accountants and other advisors. 
 “Confidentiality Agreement” has the meaning set forth in Section 5.4. 
 “Contingent Obligation” has the meaning set forth in Section 3.1(y). 
 “Contract” means any written, oral or other agreement, contract, subcontract, settlement agreement, lease, sublease, instrument, note,
bond, mortgage, indenture, warranty, purchase order, license, sublicense, assignment or other legally binding instrument, commitment, arrangement or understanding of any kind or character. 
 “Copyrights” has the meaning set forth in the definition of Intellectual Property Rights. 
 “Delaware Law” means the applicable provisions of the laws of the State of Delaware. 
 “DGCL” means the General Corporation Law of the State of Delaware. 
 “Disclosure Materials” has the meaning set forth in Section 3.1(g). 
 “Eligible Market” means any of the New York Stock Exchange, the American Stock Exchange, The Nasdaq Global Select Market, The Nasdaq
Global Market or The Nasdaq Capital Market. 
 “Employee” means any current or former employees of the Company or the
Company Subsidiaries. 
 “Environmental Laws” has the meaning set forth in Section 3.1(bb). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  

 -4- 

 “ERISA Affiliate” means each Company Subsidiary and any other person or entity under
common control with the Company or any Company Subsidiaries within the meaning of Section 414(b), (c), (m) or (o) of the Code and the regulations issued thereunder. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Expenses” means all reasonable out-of-pocket fees and expenses incurred in connection with this Agreement and the transactions
contemplated hereby, including fees and expenses of financial advisors, legal counsel, consultants, investment bankers, accountants and other advisors. 
 “GAAP” has the meaning set forth in Section 3.1(g). 
 “Governmental
Entity” means any supranational, national, state, municipal, local or foreign government, any instrumentality, subdivision, court, administrative agency or commission or other governmental authority or instrumentality. 
 “Hazardous Materials” has the meaning set forth in Section 3.1(bb). 
 “HSR Act” has the meaning set forth in Section 3.1(d)(ii). 
 “knowledge of the Company,” “knowledge” or “the Company’s knowledge” means with respect to any
matter in question, the actual knowledge after discussions with employees responsible for the applicable subject matter of the matter in question of the Chief Executive Officer, the Chief Financial Officer, General Counsel, Controller, the Senior
Vice President and General Manager, the Vice President of Operations and Corporate Quality, the Vice President of Worldwide Sales and the Vice President of Marketing of the Company. 
 “Indebtedness” has the meaning set forth in Section 3.1(y). 
 “Insolvent” has the meaning set forth in Section 3.1(h)(ii). 
 “Investor Designee” has the meaning set forth in Section 5.17. 
 “Investors” has the meaning set forth in the Preamble. 
 “IRS” means the United States Internal Revenue Service or any successor thereto. 
 “Leased Real Property” means all of the premises currently leased, subleased or licensed by or from the Company or its Subsidiaries. 
 “Legal Requirements” means any federal, state, local, municipal, foreign or other law, statute, constitution, principle of common law, resolution, ordinance, code, order, edict, decree, rule,
regulation, ruling or requirement issued, enacted, adopted, promulgated, implemented or otherwise put into effect by or under the authority of any Governmental Entity. 
 “Liabilities” means any liability, obligation or commitment of any kind (whether accrued, absolute, contingent, matured, unmatured or otherwise). 
  

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 “Liens” means any material pledges, liens, charges, encumbrances and security interests
of any kind or nature whatsoever, other than Permitted Liens. 
 “Material Adverse Effect” means any result, occurrence,
change, event, circumstance, fact or effect (each, an “Effect”) that, individually or in the aggregate with any such other Effects (regardless of whether or not such Effect constitutes a breach of the representations and warranties
made by the Company in this Agreement), is or is reasonably likely to be materially adverse to the Company, provided that in determining whether a Material Adverse Effect has occurred, there shall be excluded any Effect on the Company
relating to or arising in connection with (i) changes in Legal Requirements or the adoption or amendment of financial accounting standards by the Financial Accounting Standards Board (provided that such conditions do not have a
materially disproportionate impact on the Company), (ii) the declaration by the United States of a national emergency or war, or the occurrence of any other calamity or crisis (including any act of terrorism) (provided that such
conditions do not have a materially disproportionate impact on the Company, (iii) general business or economic conditions (provided that such conditions do not have a materially disproportionate impact on the Company),
(iv) conditions generally affecting the industry in which the Company operates (provided that such conditions do not have a materially disproportionate impact on the Company), (v) the announcement or pendency of the transactions
contemplated by any of the Transaction Documents, (vi) the occurrence, announcement or pendency of the transactions contemplated by the Conexant Asset Purchase Agreement, (vii) any failure by the Company to meet any internal projections or
analyst estimates (but not the underlying reasons for the failure to meet any internal projections or analyst estimates), and (viii) any action taken by the Company at the written request of the Investors or that the Investors consent to in
writing. 
 “Material Permits” has the meaning set forth in Section 3.1(u). 
 “Notice Period” has the meaning set forth in Section 5.2(b)(i). 
 “Order” has the meaning set forth in Section 6.1(b). 
 “Permitted Liens” means (i) Liens disclosed on the consolidated balance sheet of such Person included in the most recent annual or
quarterly report filed by such Person with the SEC prior to the date of this Agreement; (ii) Liens for Taxes, assessments and other similar governmental charges or levies either not yet delinquent or which are being contested in good faith by
appropriate proceedings and for which appropriate reserves have been established in accordance with GAAP; (iii) Liens of carriers, warehousemen, mechanics and materialmen and other like Liens arising in the ordinary course of business for sums
not yet due and payable; (iv) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; (v) pledges and deposits to secure the performance of bids,
trade contracts, leases, surety and appeal bonds, performance bonds and other obligations of a similar nature, in each case in the ordinary course of business; and (vi) Liens that do not materially interfere with the value or the current and
continued use or operation of the property subject thereto and Liens against the landlord’s or owner’s interest in any Leased Real Property, expect to the extent caused by the Company or any of the Company Subsidiaries. 
  

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 “Person” means any individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, or joint stock company. 
 “Preemptive Rights” has the
meaning set forth in Section 3.1(e). 
 “Proxy Filing Date” means 10 calendar days following the earlier of
(i) delivery by Conexant of the Required Financial Statements (as defined in the Conexant Asset Purchase Agreement) and (ii) receipt of a complete waiver from the SEC, to the reasonable satisfaction of the Company, with respect to the
requirement under applicable Legal Requirements to include the Required Financial Statements and any related pro forma financial statements for the Company’s acquisition of the BBA Business in the Proxy Statement. 
 “Proxy Statement” means the proxy statement that will be provided to the Company Stockholders in connection with the solicitation
of proxies for use at the Company Stockholder Meeting (as amended or supplemented). 
 “Purchase Price” has the meaning set
forth in Section 2.1. 
 “Registration Statement” shall have the meaning set forth in the Stockholder Agreement.

 “Regulation D” has the meaning set forth in the Preamble. 
 “Representative” has the meaning set forth in Section 5.1(a). 
 “Requisite Stockholder Approval” has the meaning set forth in Section 6.1(a). 
 “Rule 144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rules may be amended from time to time, or
any similar rule or regulation adopted by the SEC having substantially the same effect s such Rule. 
 “SEC” has the meaning
set forth in the Preamble. 
 “SEC Reports” has the meaning set forth in Section 3.1(g). 
 “Securities” has the meaning set forth in the Preamble. 
 “Securities Act” has the meaning set forth in the Preamble. 
 “Series A Preferred
Share” means the one (1) share of Series A Preferred Stock, which is being issued and sold by the Company to Tallwood III Partners at the Closing pursuant to the terms of this Agreement. 
 “Series A Preferred Stock” has the meaning set forth in the Preamble. 
 “Shares” means shares of Common Stock. 
 “Subsidiary” means with respect to any Person (a) a corporation of which fifty percent (50%) or more of the combined voting power of the outstanding voting stock of which is owned, directly
or indirectly, by such Person or by one of more other Subsidiaries of such Person or by such 

  

 -7- 

 
Person and one or more other Subsidiaries thereof; (b) a partnership of which such Person, or one or more other Subsidiaries of such Person or such
Person and one or more other Subsidiaries thereof, directly or indirectly, is the general partner and has the power to direct the policies, management and affairs of such partnership; (c) a limited liability company of which such Person or one
or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, is the managing member and has the power to direct the policies, management and affairs of such company; or (d) any
other Person (other than a corporation, partnership or limited liability company) in which such Person, or one or more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, has at least
a majority ownership and power to direct the policies, management and affairs thereof. 
 “Subsidiary Charter
Documents” means the certificate of incorporation and bylaws, or like organizational documents of each of the Company Subsidiaries. 
 “Superior Proposal” has the meaning set forth in Section 5.1(a). 
 “Stockholder
Agreement” has the meaning set forth in the Preamble. 
 “Tallwood III” has the meaning set forth in the Preamble.

 “Tallwood III Partners” has the meaning set forth in the Preamble. 
 “Tallwood III Associates” has the meaning set forth in the Preamble. 
 “Tallwood III Annex” has the meaning set forth in the Preamble. 
 “Tax” means any and all U.S. federal, state, local and non-U.S. taxes, including taxes based upon or measured by gross receipts, income,
profits, sales, use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, social security, unemployment, disability, excise, real property, personal property, alternative or add-on minimum or
estimated tax or other tax of any kind whatsoever, together with all interest, penalties and additions imposed with respect to such amounts, whether disputed or not. 
 “Tax Returns” means U.S. federal, state, local and non-U.S. returns, estimates, information statements and reports (including amendments thereto) relating to any and all Taxes. 
 “Termination Date” means October 15, 2009; provided, however, that in the event the one hundred five (105) day delivery
requirement for the Required Financial Statements (as defined in the Conexant Asset Purchase Agreement) in clause (a) of Section 4.11 of the Conexant Asset Purchase Agreement becomes applicable, the Termination Date shall be
November 15, 2009; provided further, that if Conexant exercises the extension contemplated by Section 4.11 of the Conexant Asset Purchase Agreement for the delivery of the Required Financial Statements (as defined in the
Conexant Asset Purchase Agreement), then the Termination Date shall automatically be extended by the number of additional days (up to fifteen (15)) by which the time periods specified in clauses (a) and (b) of Section 4.11
of the Conexant Asset Purchase Agreement were extended. 
  

 -8- 

 “Trading Day” means (a) any day on which the Common Stock is listed or quoted or
traded on its primary Trading Market, (b) if the Common Stock is not then listed or quoted or traded on its primary Trading Market, any date on which the Common Stock is listed or quoted or traded on any other Eligible Market (or any respective
successor thereto), or (c) if trading ceases to occur on any Eligible Market (or any respective successor thereto), any Business Day. 
 “Trading Market” means The Nasdaq Global Market or any other Eligible Market or any national securities exchange, market or trading or quotation facility on which the Common Stock is then listed or quoted. 
 “Transaction Documents” means this Agreement, the schedules and exhibits attached hereto, the Voting Agreement, the Stockholder
Agreement and the Warrants. 
 “Transfer Agent” means American Stock Transfer & Trust Company or any successor
transfer agent for the Company. 
 “Warrant Shares” has the meaning set forth in the Preamble. 
 “Warrants” has the meaning set forth in the Preamble. 
 “Voting Agreements” has the meaning set forth in the Preamble. 
 ARTICLE II 
 PURCHASE AND SALE 
 2.1 Closing.
Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to the Investors, and the Investors shall purchase from the Company, the Series A Preferred Share, the Common Shares and the Warrants at
an aggregate price of forty two million dollars ($42,000,000) (the “Purchase Price”) in the amounts as set forth on Schedule A hereto. The date and time of the Closing and shall be 11:00 a.m., Pacific Time, on the Closing Date. The
Closing shall take place at the offices of the Company’s Counsel in Palo Alto, California. 
 2.2 Closing Deliveries. 

(a) At the Closing, the Company shall deliver or cause to be delivered to the Investors the following: 
 (i) a stock certificate evidencing the Series A Preferred Share registered in the name of Tallwood III Partners; 
 (ii) four stock certificates (or copies thereof provided by the Transfer Agent) evidencing the Common Shares registered in the name of the
Investors in the amounts set forth opposite each such Investor’s name on Schedule A hereto; and 
 (iii) four
Warrants, issued in the name of the Investors, pursuant to which the Investors shall have the right to acquire the number of Warrant Shares set forth opposite each such Investor’s name on Schedule A hereto. 
  

 -9- 

 (b) At the Closing, the Investors shall deliver or cause to be delivered to the Company
the Purchase Price in United States dollars and in immediately available funds, by wire transfer to an account designated in writing to the Investors by the Company three Business Days prior to the Closing Date. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES

 3.1 Representations and Warranties of the Company. Except as set forth in (i) the Company SEC Reports filed with the SEC since
January 1, 2008 or (ii) the disclosure schedule delivered by the Company to the Investors on the date of this Agreement (the “Company Disclosure Letter”) (it being understood and hereby agreed that the disclosure set forth
in any particular Section or subsection of the Company Disclosure Letter shall be deemed to be an exception to (or, as applicable, a disclosure for purposes of) the representations and warranties of the Company set forth in the corresponding
Section or subsection of this Agreement, the Company hereby represents and warrants to the Investors as follows: 
 (a)
Subsidiaries. The Company has no Subsidiaries other than those listed in Schedule 3.1(a) hereto. The Company owns, directly or indirectly, all of the capital stock or comparable equity interests of each Company Subsidiary free and
clear of any Lien and all the issued and outstanding shares of capital stock or comparable equity interest of each Company Subsidiary are duly authorized, validly issued and are fully paid, non-assessable and free of Preemptive Rights. 

(b) Organization and Qualification. Each of the Company and the Company Subsidiaries is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or organization (except, in the case of good standing, for entities organized under the laws of any jurisdiction that does not recognize such concept), with the
requisite corporate authority to own and use its properties and assets and to carry on its business as currently conducted. The Company has made available to the Investors a true and correct copy of the Company Charter Documents and Subsidiary
Charter Documents, and each such instrument is in full force and effect. Neither the Company nor any Company Subsidiary is in violation of any of the provisions of its Company Charter Documents or Subsidiary Charter Documents, as the case may be.
The Company and the Company Subsidiaries are duly qualified to do business and are in good standing (except for entities organized under the laws of any jurisdiction that does not recognize such a concept) as a foreign corporation or other entity in
each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected
to result in a Material Adverse Effect. 
 (c) Authorization; Enforcement. 
 (i) The Company has the requisite corporate authority to enter into and to consummate the transactions contemplated by each of the
Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents to which it is a party by the Company and the consummation by it of the
transactions contemplated hereby and thereby have been duly authorized 

  

 -10- 

 
by all necessary corporate action on the part of the Company and no further consent or action is required by the Company, its Board of Directors or its
stockholders, subject only to the receipt of the Requisite Stockholder Approval, which approval is the only vote of the holders of any class or series of Company Capital Stock that is necessary under applicable Legal Requirements and the Company
Charter Documents to adopt or approve the Transaction Documents and consummate the transactions contemplated hereby and thereby. Each of the Transaction Documents to which it is a party has been (or upon delivery will be) duly executed by the
Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other
equitable remedies. 
 (ii) At a meeting duly called and held, prior to the execution of this Agreement, at which all
directors of the Company were present and voting in favor, the Company Board duly adopted resolutions (A) declaring that this Agreement, the other Transaction Documents, the issuance and sale of the Securities as provided herein and the other
transactions contemplated hereby and thereby are advisable and in the best interests of the Company Stockholders, (B) approving the Charter Amendment, the Certificate of Designation, the Transaction Documents and the transactions contemplated
hereby and thereby, (C) taking all actions necessary so that the restrictions on business combination and stockholder vote requirements contained in Section 203 of DGCL will not apply with respect to or as a result of the Transaction
Documents and the transactions contemplated hereby and thereby; (D) directing that the issuance and sale of the Securities as contemplated hereby, the Charter Amendment, and the other transactions contemplated hereby be submitted to the vote of
the Company Stockholders at the Company Stockholder Meeting; and (E) making the Company Board Recommendation. 
 (iii)
The Company has taken all action necessary to exempt the Transaction Documents and the transactions contemplated hereby and thereby from the restrictions on business combinations and voting requirements contained in Section 203 of DGCL. No
other “control share acquisition,” “fair price,” “moratorium” or other anti-takeover law applies to the Transaction Agreements and the transactions contemplated hereby and thereby. 
 (d) No Conflicts; Require Filings and Consents. 
 (i) The execution, delivery and performance of the Transaction Documents to which it is a party by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby do not, and will not, (i) subject to the receipt of the Requisite Stockholder Approval in the case of the approval of the Charter Amendment, conflict with or violate any provision of
the Company Charter Documents or Subsidiary Charter Documents, (ii) result in any breach of, conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, materially affect the
rights or obligations of the Company or any Company Subsidiary under, materially alter the rights or obligations of any third party under, give to others any rights of termination, amendment, acceleration or cancellation (with or without notice,
lapse of time or both) of, or result in the creation of a Lien on any of the properties or assets of the Company or a Company Subsidiary pursuant to, any Contract to which the Company 

  

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or any Company Subsidiary is a party or by which any property or asset of the Company or any Company Subsidiary is bound, or affected, except to the extent
that such breaches, conflict, default, other occurrences or rights would not reasonably be expected to have a Material Adverse Effect, or (iii) assuming that all consents, filings, approvals, authorizations and other actions described in
subsection (b) have been obtained or made, result in a violation of any Legal Requirement or Order to which the Company or a Company Subsidiary is subject (including, assuming the accuracy of the representations and warranties of the Investors
set forth in Section 3.2 hereof, federal and state securities laws and regulations and the rules and regulations of any self-regulatory organization to which the Company or its securities are subject, including all applicable Trading
Markets), or by which any property or asset of the Company or a Company Subsidiary is bound or affected, except to the extent that such violation would not reasonably be expected to have a Material Adverse Effect. 
 (ii) No consent, approval, Order or authorization of, or registration, declaration or filing with any Governmental Entity is required to
be obtained or made by the Company in connection with the execution and delivery of the Transaction Documents, the performance by the Company of the Transaction Documents or the transactions contemplated hereby and thereby, except for: (i) the
filing of the Certificate of Designation and the Charter Amendment with the Secretary of State of the State of Delaware, (ii) such consents, approvals, Orders, authorizations, registrations, declarations and filings as may be required under
applicable federal, foreign and state securities (or related) laws and the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and satisfaction of such other requirements of the comparable laws of other
jurisdictions, each as set forth in Section 3.1(d)(ii) of the Company Disclosure Letter, (iii) the filing of the Proxy Statement with the SEC, (iv) the filing of such notices as may be required under the Securities Act and such
filings as may be required under applicable state securities laws and (v) such other consents, authorizations, filings, approvals and registrations set forth in Section 3.1(d)(ii) of the Company Disclosure Letter. 
 (e) The Securities. The Securities (including the Series A Preferred Share and the Warrant Shares) are duly authorized and, when
issued and paid for in accordance with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and will not be subject to preemptive or similar rights (“Preemptive
Rights”). The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable upon exercise of the Warrants. The Company does not have a stockholder rights plan or other “poison
pill” arrangement. 
 (f) Capitalization. 
 (i) Subject to the Charter Amendment, the authorized capital stock of the Company consists of 50,000,000 shares of Common Stock and
1,000,000 shares of Company Preferred Stock. As of the Capitalization Date, (A) 29,846,616 shares of Common Stock were issued and outstanding, and (B) 572,764 shares of Common Stock were held by the Company as treasury shares. No shares of
Company Preferred Stock are outstanding. Since the close of business on the Capitalization Date, the Company has not issued or authorized the issuance of any shares of capital stock of the Company other than pursuant to the exercise of Company
Options granted under a Company Stock Plan or pursuant to the purchase of shares under the Company ESPP. No shares of Common Stock are owned or held by any Subsidiary of the Company. All outstanding shares of 

  

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Company Common Stock are, and all shares of Company Common Stock which may be issued as contemplated or permitted by this Agreement or under a Company Stock
Plan will be, when issued pursuant to the respective terms thereof, duly authorized, validly issued, fully paid, nonassessable and not subject to any Preemptive Rights. 
 (ii) The Company has reserved 8,137,249 shares of Common Stock for issuance under the Company Stock Plans. As of the Capitalization Date,
there were outstanding Company Options to purchase 2,660,763 shares of Common Stock with a weighted average exercise price of $5.76, of which Company Options to purchase 1,721,620 shares of Common Stock were exercisable and Company Options to
purchase 1,158,313 shares of Common Stock were vested. As of the Capitalization Date, there were 634,497 Company Restricted Stock Units and 34,293 shares of Company Restricted Stock. 
 (iii) Except as set forth in this Section 3.1(f), there are no outstanding (A) shares of Company Capital Stock,
(B) securities of the Company convertible into or exchangeable for shares of Company Capital Stock and (C) securities, options, warrants, rights, contracts, understandings or similar obligations to which the Company is bound obligating the
Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of Company Capital Stock or voting debt or any securities convertible into such securities, or obligating the Company to issue, grant, extend or enter
into any such security, option, warrant, right, contract, understanding or obligation. Other than the Company Restricted Stock and Company Restricted Stock Units set forth in this Section 3.1(f), there are no outstanding restricted
shares, restricted stock units, stock appreciation rights or similar securities or rights that provide economic benefits based, directly or indirectly, on the value or price of, any Company Capital Stock. 
 (iv) All outstanding shares of Common Stock, all outstanding Company Options, Company Restricted Stock, Company Restricted Stock Units
have been issued and granted in compliance in all material respects with all applicable Legal Requirements. There are not any outstanding Contracts obligating the Company to repurchase, redeem or otherwise acquire any shares of Company Capital
Stock. The Company is not party to any voting agreement and, to the knowledge of the Company, there are no irrevocable proxies and no voting agreements, voting trusts, rights plans or anti-takeover plans with respect to any shares of Company Capital
Stock . There are no contractual obligations or commitments of any character restricting the transfer of, or requiring the registration for sale of, any shares of Company Capital Stock. 
 (g) SEC Reports; Financial Statements. 
 (i) Since January 1, 2007, the Company has filed all registration statements and reports required to be filed by it under the
Securities Act and the Exchange Act. Such registration statements and reports required to be filed by the Company under the Securities Act and the Exchange Act, together with any materials filed or furnished by the Company, whether or not any such
reports were required being collectively referred to herein as the “SEC Reports” and, together with this Agreement and the Company Disclosure Letter, the “Disclosure Materials”. As of their respective filing dates, the SEC
Reports filed by the Company complied, or will comply (if filed subsequent to the date hereof and prior to the Closing Date), in all material respects with the requirements of the Securities Act, the Exchange Act and the rules and regulations of the
SEC 

  

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promulgated thereunder, and any successor rules or regulations thereto, and none of the SEC Reports, when filed by the Company, contained, or will contain
(if filed subsequent to the date hereof and prior to the Closing Date), any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading, in each case except to the extent corrected by an SEC Report filed subsequently but prior to the date hereof (or, in the case of SEC Reports filed subsequent to the date hereof but prior
to the Closing Date, except to the extent corrected by an SEC Report filed prior to the Closing Date). The financial statements of the Company included in the SEC Reports comply, or will comply (if included in SEC Reports filed subsequent to the
date hereof and prior to the Closing Date), in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such financial statements have been
prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements, the notes
thereto and except that unaudited financial statements may not contain all footnotes required by GAAP or may be condensed or summary statements, and fairly present in all material respects the consolidated financial position of the Company and its
consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, year-end audit adjustments. 
 (ii) There are no outstanding or unresolved comments received by the Company from the SEC. 
 (h) No Changes; Undisclosed Liabilities. 
 (i) Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in
Schedule 3.1(h) hereto, (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect, (ii) the Company and the Company Subsidiaries have not
incurred any material Liabilities other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s
consolidated financial statements pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not altered its method of accounting or changed its auditors, except as disclosed in its SEC Reports, and
(iv) the Company has not issued any equity securities to any officer, director or Affiliate of the Company or any Company Subsidiary. 
 (ii) The Company has not taken any steps to seek protection pursuant to any bankruptcy law nor does the Company have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy
proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company is not as of the date hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be
Insolvent. For purposes of this Section 3.1(h), “Insolvent” means (i) the present fair saleable value of the Company’s assets is less than the amount required to pay the Company’s total Indebtedness,
(ii) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) the Company intends to incur or believes that it will incur debts that
would be beyond its ability to pay as such debts mature or (iv) the Company has unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. 

 

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 (i) Absence of Litigation. Except as disclosed in the SEC Reports or
Section 3.1(i) of the Company Disclosure Letter, there is no action, suit, claim, or proceeding, inquiry or investigation, before or by any Governmental Entity pending or, to the knowledge of the Company, threatened against or affecting the
Company or any of the Company Subsidiaries or their respective properties or assets that has had or would reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Company Subsidiary nor any property or asset of the
Company or any Company Subsidiary is subject to any Order or similar written agreement with any Governmental Authority that has had or would reasonably be expected to have a Material Adverse Effect. 
 (j) Contracts; Compliance. 
 (i) Except as would not reasonably be expected to have a Material Adverse Effect, each material Contract to which the Company or a Company Subsidiary is a party or by which any of their respective properties and
assets is bound is valid, is in full force and effect and is enforceable against each party thereto in accordance with the express terms thereof, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency,
reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable remedies.
Except as would not reasonably be expected to have a Material Adverse Effect, neither the Company nor any Company Subsidiary, nor to the Company’s knowledge, the other parties thereto is in default under, in breach or in violation of (and
no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a breach, a violation or a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received written notice of a
claim that it has breached, is in default under or that it is in violation of, any material Contract to which it is a party or by which it or any of its properties and assets is bound (whether or not such default or violation has been waived).

 (ii) Except as would not reasonably be expected to have a Material Adverse Effect, neither the Company nor any Company
Subsidiary, (A) is in violation of any Order of any arbitrator or Governmental Entity, or (B) is or has been in violation of any Legal Requirements. 
 (k) Title to Assets; Real Property. Except as would not reasonably be expected to have a Material Adverse Effect, the Company and
the Company Subsidiaries (i) have good and marketable title to all real property owned by them, (ii) have good and marketable title in all personal property owned by them, in each case of (i) and (ii) free and clear of all Liens,
except for Permitted Liens. The Company and the Company Subsidiaries do not own any real property. Except as would not reasonably be expected to have a Material Adverse Effect, the Leased Real Property are held by the Company and the Company
Subsidiaries, as applicable, under valid and subsisting leases of which the Company and the Company Subsidiaries are in material compliance. 
  

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 (l) No General Solicitation. Neither the Company, nor any of its Affiliates, nor
any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. 
 (m) No Integration. Neither the Company nor any of its Affiliates nor, any Person acting on the Company’s behalf has, directly
or indirectly, at any time within the past six months, made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would (i) eliminate the availability of the exemption from registration
under Regulation D under the Securities Act in connection with the offer and sale by the Company of the Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant to the Transaction Documents to be integrated
with prior offerings by the Company for purposes of any applicable stockholder approval provisions, including under the rules and regulations of any Trading Market. Neither the Company nor any of its Affiliates nor any Person acting on the
Company’s behalf has offered or sold or will offer or sell any securities, or has taken or will take any other action, which would reasonably be expected to subject the offer, issuance or sale of the Securities, as contemplated hereby, to the
registration provisions of the Securities Act. 
 (n) Investment Company Status. The Company is not an Affiliate of,
and is not, and after giving effect to the issuance and sale of Securities, will not be required to be registered as an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 (o) Private Placement. Assuming the accuracy of the representations and warranties of the Investors contained in
Section 3.2 and the compliance by the Investors with the provisions set forth herein, the issuance and sale of the Securities in the manner contemplated by the Transaction Documents is exempt from the registration requirements of the
Securities Act. 
 (p) Eligibility for Registration. The Company is eligible to register the Common Shares and the
Warrant Shares for resale by the Investors using Form S-3 promulgated under the Securities Act. 
 (q) Listing and
Maintenance Requirements. The Company is listed on The Nasdaq Global Market. The Company has not, in the twelve months preceding the date hereof, received written notice from The Nasdaq Global Market to the effect that the Company is not in
compliance with the listing or maintenance requirements of such Trading Market. The Company is in compliance, in all material respects, with the listing and maintenance requirements of The Nasdaq Global Market. Trading in the Common Stock has not
been suspended by the SEC or The Nasdaq Global Market. 
 (r) Registration Rights. Except as described in
Schedule 3.1(r), the Company has not granted or agreed to grant to any Person any rights (including “piggy-back” registration rights) to have any securities of the Company registered with the SEC or any other governmental
authority that have not been satisfied or waived. 
  

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 (s) Intellectual Property Rights. 
 (i) “Intellectual Property Rights” shall mean any or all of the following: (i) patents and applications and
registrations therefor and all reissues, divisions, renewals, extensions, provisionals, substitutions, continuations and continuations-in-part thereof and foreign counterparts thereto (“Patents”); (ii) copyrights (whether or not
registered), copyrights registrations and applications therefor, and all other rights corresponding thereto in any works of authorship (including software and firmware) throughout the world including moral and economic rights of authors and
inventors, however denominated and regardless of medium of fixation or means of expression (“Copyrights”); (iii) rights in industrial designs and any registrations and applications therefor; (iv) mask work rights and
registrations and applications for registration or renewal; (v) trade names, logos, trade dress, slogans, common law trademarks and service marks, trademark and service mark registrations and applications therefor and all goodwill associated
therewith (“Trademarks”); (vi) trade secrets, business, technical and know-how information, non-public information, and confidential information and rights to limit the use or disclosure thereof by any Person including databases and
data collections and all rights therein (“Trade Secrets”); (vii) domain names and domain name registrations; and (viii) any similar or equivalent rights to any of the foregoing (as applicable) in any jurisdiction worldwide.

 (ii) Neither the Company nor any Company Subsidiaries has received written notice challenging the validity, enforceability
or scope of any Intellectual Property Rights owned by the Company or a Company Subsidiary (“Company IP”). The Company and the Company Subsidiaries own all right, title and interest in and to the Company IP free and clear of all
Liens. To the knowledge of the Company, each registered Trademark, registered Copyright and each Patent (collectively, “Registered IP”) is valid and enforceable. The Company and the Company Subsidiaries are current in their filing
requirements as necessary to perfect and maintain their respective Registered IP in accordance with applicable Legal Requirements. 
 (iii) To the knowledge of the Company, the Company and each of the Company Subsidiaries own or possess sufficient rights to use all Intellectual Property Rights necessary to conduct their businesses as currently conducted, including the
design, manufacture, license and sale of all products currently under development or in production. To the knowledge of the Company, the conduct of the Company and the Company Subsidiaries as currently conducted does not infringe, misappropriate or
violate the Intellectual Property Rights of any third party. Neither the Company nor any Company Subsidiary has received any written notice from any person alleging infringement, misappropriation or other violation of the Intellectual Property
Rights of any third party. 
 (iv) The Company has made available to the Investors all material licenses to Intellectual
Property Rights (other than licenses granted by the Company or a Company Subsidiary in the ordinary course of business or licenses to the Company or a Company Subsidiary for “off-the-shelf” software or technology that are generally
commercially available on standard terms) to which Company or any Company Subsidiary is a party, pursuant to which (i) the Company or such Company Subsidiary grants a license or other right to use any Company IP or (ii) any third party
licenses or otherwise grants rights to the Company or a Company Subsidiary to use any Intellectual Property Rights owned by such third party (collectively, the “Intellectual Property Agreements”). 
  

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 (v) Neither the execution, delivery, or performance of this Agreement nor the
consummation of any of the transactions or agreements contemplated by this Agreement will, with or without notice or the lapse of time, result in, or give any other person the right or option to cause or declare (i) a loss of, or Lien on, any
of the Intellectual Property Rights owned by the Company or a Company Subsidiary; (ii) a breach of, termination of, or acceleration or modification of any right or obligation under any Intellectual Property Agreement; or (iii) the release,
disclosure, or delivery of any Company IP to any escrow agent or other person. 
 (vi) The Company and each of the Company
Subsidiaries has taken reasonable measures to protect and preserve the confidentiality of the Trade Secrets owned by the Company or a Company Subsidiary that the Company wishes to maintain as confidential information and all other confidential and
proprietary information of the Company and the Company Subsidiaries, including requiring all persons having access thereto to execute written non-disclosure agreements. 
 (t) Insurance. The Company and the Company Subsidiaries are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the same or similar businesses and location in which the Company and the Company Subsidiaries are engaged. All of the material insurance policies of the Company and the Company
Subsidiaries are in full force and effect, no notice of cancellation has been received with respect thereto, and there is no existing default or event which, with the giving of notice or lapse of time or both, would constitute a default, by any
insured thereunder. 
 (u) Regulatory Permits. The Company and the Company Subsidiaries possess all material
certificates, authorizations and permits issued by the appropriate Governmental Entities and non-governmental entities necessary to conduct their respective businesses (“Material Permits”), and each Material Permit is in full force
and effect, except where the failure to possess such permits does not have or would not reasonably be expected to have a Material Adverse Effect. Neither the Company nor any Company Subsidiary has received any written notice of proceedings relating
to the revocation or modification of any Material Permit. 
 (v) Internal Controls; Disclosure Controls. The Company
and the Company Subsidiaries maintain a system of internal control over financial reporting (as such term is defined in Rule 13a-15 of the General Rules and Regulations under the Exchange Act) to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP and includes those policies and procedures that (i) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP,
and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements of the Company. Since December 28, 2008, there have been no significant changes in the Company’s internal control
over financial reporting. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 of the General Rules and Regulations under the Exchange Act) that comply with the requirements of the Exchange Act; such
disclosure controls and procedures have been designed to ensure that (i) information required to be disclosed by the Company in the reports that it 

  

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files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms,
and (ii) information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including its principal executive and principal
financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Such disclosure controls and procedures are effective in all material respects. 
 (w) Sarbanes-Oxley Act. The Company is in compliance in all material respects with applicable requirements of the Sarbanes-Oxley
Act of 2002 and applicable rules and regulations promulgated by the SEC thereunder. 
 (x) Foreign Corrupt Practices.
Neither the Company nor any Company Subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf of the Company or any Company Subsidiaries has, in the course of its actions for, or on
behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic
government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment,
kickback or other unlawful payment to any foreign or domestic government official or employee, except where such actions would not have a Material Adverse Effect. 
 (y) Indebtedness. Neither the Company nor any Company Subsidiaries (i) has any outstanding Indebtedness (as defined below) or
(ii) is a party to any Contract relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. For purposes of this Agreement:
(x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (other than
trade payables entered into in the ordinary course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are
limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease,
(G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such
indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent Obligation” means, as to any
Person, any 

  

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direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person
if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto
will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto. 
 (z) Employee Relations. (i) Neither the Company nor any Company Subsidiaries is a party to any collective bargaining agreement with any labor organization, trade union or works counsel; (ii) the
Company has not received written notice that any labor representation question presently exists, and, to the Company’s knowledge, no petition concerning representation under the National Labor Relations Act, as amended, or other labor or
employment law is pending or, to the Company’s knowledge, threatened and (iii) neither the Company nor any Company Subsidiaries, to the Company’s knowledge, employs any member of a union. The Company believes that its relations with
its employees are accurately disclosed in all material respects in the SEC Reports. Except as disclosed in the SEC Reports, since December 31, 2007 no executive officer of the Company or any of the Company Subsidiaries (as defined in
Rule 501(f) of the Securities Act) has notified in writing the Company or any such Company Subsidiary that such officer intends to leave the Company or any such Company Subsidiary or otherwise terminate such officer’s employment with the
Company or any such Company Subsidiary. 
 (aa) Labor Matters. The Company and its Subsidiaries are in compliance in
all material respects with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in
compliance would not reasonably be expected to result in a Material Adverse Effect. 
 (bb) Environmental Laws. Except
as would not reasonably be expected to have a Material Adverse Effect, the Company and its Subsidiaries (i) are in compliance in all material respects with any and all Environmental Laws (as hereinafter defined), (ii) have received all
permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance in all material respects with all terms and conditions of any such permit, license or
approval. The term “Environmental Laws” means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or
subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into the
environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions,
judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder. 
 (cc) Tax Matters. The Company and each of its Subsidiaries have timely filed all income and other material Tax Returns required to be filed by any of them and have timely paid all Taxes required to be paid
(whether or not shown on such Tax Returns), and the unpaid Taxes of the 

  

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Company and the Company Subsidiaries did not, as of the date of the most recent SEC Report, exceed the reserve for Tax liabilities set forth on the face of
the balance sheets (rather than in any notes thereto) contained in the such SEC Reports. No material deficiencies for any Taxes have been asserted, assessed or proposed in writing against the Company or any of the Company Subsidiaries, and there are
no pending or, to the knowledge of the Company, threatened audits, assessments or other actions for or relating to any material liability in respect of Taxes of the Company or the Company Subsidiaries. 
 (dd) Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly
or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or, paid any
compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company. 
 (ee) Employee Benefits, ERISA. 
 (i) Section 3.1(ee) of the Company Disclosure Letter sets forth a true and complete list of the material Company Plans. True and complete copies of each of the material Company Plans, amendments thereto
and all related service agreements, summaries and summary plan descriptions have been made available to the Investors. Each Company Plan has been administered in accordance with its terms in all material respects, and the Company and each of the
Company Subsidiaries and their respective ERISA Affiliates has in all material respects met its obligations (if any) of ERISA, the Code and other applicable federal, state and foreign laws and the regulations thereunder. 
 (ii) None of the Company, any ERISA Affiliate, or any of their respective predecessors has contributed to, contributes to, has been
required to contribute to, or otherwise participated in or participates in or in any way has any material liability, directly or indirectly with respect to (A) any plan subject to Section 412 of the Code, Section 302 of ERISA or Title
IV of ERISA, including any “multiemployer plan” (within the meaning of Sections 3(37) or 4001(a)(3) of ERISA or Section 414(f) of the Code) or any single employer pension plan (within the meaning of Section 4001(a)(15) of ERISA)
that is subject to Sections 4063, 4064 or 4069 of ERISA or Section 413(c) of the Code that covered or has covered any Employee; or (B) any plan or arrangement that provides for post-employment medical, life insurance or other welfare-type
benefits (other than health continuation coverage required by Section 4980B of the Code and Title I, Subtitle B, Part 6 of ERISA or otherwise as required by law). 
 (ff) Proxy Statement. The Proxy Statement shall not, at the date the Proxy Statement (or any amendment or supplement thereto) is
first mailed to stockholders of the Company and at the time of the Company Stockholder Meeting, as the case may be, contain any untrue statement of a material fact or omit to state any 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, except that no representation or warranty is made by the Company with respect to any information regarding the Investors that is supplied by the
Investors in writing specifically for inclusion in the Proxy Statement. The Proxy Statement, and any amendments or 

  

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supplements thereto, when filed by the Company with the SEC, or when distributed or otherwise disseminated to the Company’s stockholders, as applicable,
shall comply as to form in all material respects with the requirements of the Exchange Act, the rules and regulations thereunder and other applicable Legal Requirements. 
 (gg) Brokers’ and Finders’ Fees. Except for Barclays Capital Inc. pursuant to an engagement letter dated
February 21, 2007, as amended, a copy of which engagement agreement (and all indemnification and other agreements related to such engagement) has been made available to the Investors, there is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of, the Company or any of its Subsidiaries, Affiliates, or any of their respective officers or directors in their capacity as officers or directors, who might be entitled to
any banking, broker’s, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement. 
 (hh) Opinion of Financial Advisor. The Company Board has received the opinion of Barclays Capital Inc., financial advisor to the Company, dated as of the date hereof, to the effect that, as of the date of such
opinion, from a financial point of view, the financial terms of the issuance of the Securities pursuant to this Agreement are commercially reasonable to the Company, a written copy of which opinion has been delivered or will be delivered promptly
after the date hereof to the Investors for informational purposes only. 
 3.2 Representations, Warranties and Covenants of the
Investors. Except as set forth in the disclosure schedule delivered by the Investors to the Company on the date of this Agreement (the “Investor Disclosure Letter”), each Investor, severally and not jointly, hereby represents,
warrants and covenants to the Company as follows: 
 (a) Organization; Authority. Such Investor is an entity duly
organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite corporate, partnership or other power and authority to enter into and to consummate the transactions contemplated by the
Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The purchase by such Investor of the Securities hereunder has been duly authorized by all necessary corporate, partnership or other action on its part. This
Agreement has been duly executed and delivered by such Investor and constitutes the valid and binding obligation of such Investor, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy,
insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors rights generally, and (ii) the effect of rules of law governing the availability of specific performance and other equitable
remedies. 
 (b) No Public Sale or Distribution. Such Investor is (i) acquiring the Series A Preferred Share, the
Common Shares and the Warrants, as applicable and (ii) upon exercise of the Warrants will acquire the Warrant Shares issuable upon exercise thereof, in the ordinary course of business for its own account and not with a view towards, or for
resale in connection with, the public sale or distribution thereof, except pursuant to sales registered under the Securities Act or under an exemption from such registration and in compliance with applicable federal and state securities laws, and
such Investor does not have a present arrangement to effect any distribution of the Securities to or through any person or entity; provided, however, that by making the representations herein, such 

  

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Investor does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time
in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 
 (c) Investor
Status. At the time such Investor was offered the Securities, it was, and at the date hereof it is an “accredited investor” as defined in Rule 501(a) under the Securities Act. Such Investor is not a registered broker dealer registered
under Section 15(a) of the Exchange Act, or a member of the FINRA or an entity engaged in the business of being a broker dealer. Except as otherwise disclosed in writing to the on or prior to the date of this Agreement, such Investor is not
affiliated with any broker dealer registered under Section 15(a) of the Exchange Act, or a member of FINRA or an entity engaged in the business of being a broker dealer. 
 (d) Experience of the Investor. Such Investor, either alone or together with its representatives, has such knowledge,
sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities and has so evaluated the merits and risks of such investment. Such Investor
understands that it must bear the economic risk of this investment in the Securities indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment. 
 (e) Access to Information. Such Investor acknowledges that it has reviewed the Disclosure Materials and has been afforded:
(i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Securities and the merits and risks of investing in
the Securities; and (ii) access to information (other than material non-public information) about the Company and the Company Subsidiaries and their respective financial condition, results of operations, business, properties, management and
prospects sufficient to enable it to evaluate its investment. Neither such inquiries nor any other investigation conducted by or on behalf of such Investor or its representatives or counsel shall modify, amend or affect such Investor’s right to
rely on the truth, accuracy and completeness of the Disclosure Materials and the Company’s representations and warranties contained in the Transaction Documents. 
 (f) No Governmental Review. Such Investor understands that no United States federal or state agency or any other government or
governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the
Securities. 
 (g) No Conflicts. The execution, delivery and performance by such Investor of this Agreement and the
consummation by such Investor of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Investor or (ii) conflict with, or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any Contract to which such Investor is a party, or (iii) result in a violation of any Legal
Requirements (including federal and state securities laws) applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such violations that do not otherwise affect the ability of such Investor to consummate the
transactions contemplated hereby. 
  

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 (h) Restricted Securities. Such Investor understands that the Securities are
characterized as “restricted securities” under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such
securities may be resold without registration under the Securities Act only in certain limited circumstances. 
 (i)
Availability of Funds. On the Closing Date, such Investor will have immediately available funds in cash that will be sufficient to fulfill its obligations under Article II. Such Investor is not aware of any reason why the funds sufficient to
fulfill its obligations under Article II will not be available on the Closing Date upon request of its limited partners. 
 (j) Ownership of Company Capital Stock. As of the date of this Agreement, such Investor does not beneficially own any shares of Common Stock. Neither such Investor nor any of its respective Subsidiaries owns (directly or indirectly,
beneficially or of record), or is a party to any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of, in each case, any shares of Company Capital Stock (other than as contemplated by this Agreement).

 (k) Brokers or Finders. Except for Morgan Stanley, there is no investment banker, broker, finder or other
intermediary that has been retained by, or is authorized to act on behalf of, such Investor or any of its Affiliates, or any of their respective officers or directors in their capacity as officers or directors, who might be entitled to any banking,
broker’s, finder’s or similar fee or commission in connection with the transactions contemplated by this Agreement. 
 (l) Prohibited Transactions. Such Investor does not own, directly or indirectly, and no Person acting on behalf of or pursuant to any understanding with such Investor owns, any securities, including any derivatives, of the Company.
Such Investor covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with such Investor will engage, directly or indirectly, in any Short Sales involving the Company’s securities. “Short
Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts,
calls, short sales, swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker-dealers or foreign regulated brokers. 
 ARTICLE IV 
 CONDUCT BY THE COMPANY PRIOR TO
THE CLOSING DATE 
 4.1 Conduct of Business by the Company. 
 (a) Ordinary Course. During the period from the date hereof and continuing until the earlier of the termination of this Agreement
pursuant to its terms or the Closing Date, the Company shall and shall cause each of the Company Subsidiaries to, except as otherwise expressly contemplated by this Agreement or to the extent that the Investors shall otherwise consent in writing,
(i) carry on their respective businesses in the usual, regular and ordinary course, in the same manner as heretofore conducted and in compliance with all applicable Legal Requirements, (ii) pay their respective debts and Taxes when due,
pay or perform other material obligations when due, and 

  

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(iii) use commercially reasonable efforts to: (A) preserve intact their respective material assets, Intellectual Property Rights, present business
organizations and maintain satisfactory material business relationships with third parties, including their respective customers, lenders, suppliers, licensors, licensees and distributors, (B) keep available the services of its directors,
officers and, in the ordinary course of business consistent with past practice, employees, (C) maintain in effect all of their respective Material Permits, and (D) comply in all material respects with all Legal Requirements. 
 (b) Required Consent. In addition, without limiting the generality of Section 4.1(a), except as permitted or
contemplated expressly by the terms of this Agreement, and except as provided in Section 4.1(b) of the Company Disclosure Letter, without the prior written consent of the Investors, during the period from the date hereof and continuing
until the earlier of the termination of this Agreement pursuant to its terms or the Closing Date, the Company shall not take any action that would in the ordinary course of business be approved by the Company Board (or a committee thereof) or the
board of directors of any of the Company Subsidiaries, and without limiting the generality of the foregoing, the Company shall not do any of the following, and shall not permit any of the Company Subsidiaries to do any of the following: 

(i) Cause, permit or propose any amendments to the Company Charter Documents or any of the Subsidiary Charter Documents; 
 (ii) Adopt a plan or agreement of, or resolutions providing for, complete or partial liquidation, merger, consolidation, dissolution,
restructuring, recapitalization or other material reorganization; 
 (iii) Declare, set aside or pay any dividends on or make
any other distributions (whether in cash, stock, equity securities or property) in respect of, or convertible into or exercisable for, any capital stock, enter into any agreement with respect to the voting of any capital stock of the Company or any
Company Subsidiary, or split, combine or reclassify any capital stock; 
 (iv) Purchase, redeem or otherwise acquire, directly
or indirectly, any securities of the Company or any Company Subsidiaries, except (A) in connection with dissolution or reorganization of a wholly-owned Subsidiary of the Company in the ordinary course of business and (B) repurchases at
cost of Common Stock from Employees upon termination of any such Employee’s service as provided and pursuant to the terms of the applicable Contract; 
 (v) Issue, sell, deliver, transfer, pledge, dispose of, encumber or subject to any Lien, or amend the terms (including the terms relating to accelerating the vesting or lapse of repurchase rights or obligations) of,
or authorize, agree or commit to issue, sell, deliver, transfer, pledge, dispose of, encumber or subject to any Lien, or amend the terms of (whether through the issuance or granting of options, warrants, commitments, subscriptions, rights to
purchase or otherwise) any securities of the Company or any Company Subsidiaries (including any preferred stock of the Company or any Company Subsidiaries), or any securities convertible into or exchangeable for any such securities, except for
(A) the issuance and sale of shares of Common Stock pursuant to Company Options outstanding prior to the date hereof in accordance with the 

  

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applicable Company Option’s terms in effect on the date of this Agreement, (B) grants of Company Restricted Stock Units, Company Restricted Stock
or Company Options to newly hired employees in the ordinary course of business consistent with past practice issued with a per share exercise price that is no less than the then-current market price of a share of Common Stock, and (C) issuances
of shares of Common Stock to participants in the Company ESPP pursuant to the terms thereof; 
 (vi) Acquire or agree to
acquire by merging or consolidating with, or by purchasing any equity or voting interest in or a material portion of the assets of, or by any other manner, any business or any Person or division thereof, whether in whole or in part, or otherwise
acquire or agree to acquire any material assets outside the ordinary course of business consistent with past practice; 
 (vii) Sell, lease, license, encumber, subject to any Lien (other than Permitted Liens), or otherwise dispose of any properties or assets of the Company or any Company Subsidiary except (A) the sale, lease or disposition of immaterial
property or assets of the Company and the Company Subsidiaries, or (B) the sale and distribution (directly and indirectly) of products and services in the ordinary course of business consistent with past practice; 
 (viii) Make any loans, advances or capital contributions to, or investments in, any other Person, other than: (A) loans or
investments by it or a wholly-owned Subsidiary of it to or in it or any wholly-owned Subsidiary of it or (B) employee loans or advances made in the ordinary course of business; 
 (ix) Incur, assume or amend the terms of, any Indebtedness for borrowed money or guarantee any such Indebtedness of another Person, issue
or sell any debt securities or options, warrants, calls or other rights to acquire any debt securities of the Company or any Company Subsidiaries, guarantee any debt securities of another Person, enter into any “keep well” or other
agreement to maintain any financial statement condition of any other Person (other than any wholly-owned Subsidiary of it), other than in connection with the financing of ordinary course trade payables consistent with past practice; 
 (x) (A) Take any action to waive any material benefits of, or agree to modify in any respect materially adverse to the Company, or fail to
enforce any standstill or similar Contract, or (B) waive any standstill or similar Contracts, in each case to which the Company or any of the Company Subsidiaries is a party; 
 (xi) Amend, modify or terminate the Conexant Asset Purchase Agreement or waive any condition to closing therein; or 
 (xii) Authorize, agree or commit to do any of the foregoing. 
  

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 ARTICLE V 
 ADDITIONAL AGREEMENTS 
 5.1 Acquisition Proposals. 
 (a) No Solicitation. 
 (i) At all times during the period commencing with the execution and delivery of this Agreement and continuing until the earlier to occur of the termination of this Agreement pursuant to Section 7.1 and
the Closing Date, the Company and the Company Subsidiaries shall not, nor shall they authorize or knowingly permit any of their respective directors, officers or other employees, controlled affiliates, or investment bankers, attorneys or other
agents or representatives (collectively, “Representatives”) retained by any of them to, directly or indirectly, (i) solicit, initiate, propose or induce the making, submission or announcement of, or knowingly encourage,
facilitate or assist, an Acquisition Proposal, (ii) furnish to any Person (other than the Investors or any designees of the Investors) any non-public information relating to the Company or any of its Subsidiaries, or afford access to the
business, properties, assets, books, records or personnel of the Company or any of its Subsidiaries to any Person (other than the Investors or any designees of the Investors), in any such case with the intention of permitting the making, submission
or announcement of, or to encourage, facilitate or assist, an Acquisition Proposal or any inquiries or the making of any proposal that would reasonably be expected to lead to an Acquisition Proposal, (iii) participate or engage in discussions
or negotiations with any Person with respect to an Acquisition Proposal, (iv) approve, endorse or recommend an Acquisition Proposal, (v) approve any transaction under, or any Person other than the Investors becoming an “interested
stockholder” under, Section 203 of the DGCL, or (vi) enter into any letter of intent, memorandum of understanding or other Contract contemplating or otherwise relating to an Acquisition Transaction; provided,
however, that notwithstanding the foregoing, prior to the receipt of the Requisite Stockholder Approval, the Company Board may, directly or indirectly through agents or other representatives, (A) participate or engage in discussions or
negotiations with any Person that has made after the date of this Agreement (and not withdrawn) a bona fide written unsolicited Acquisition Proposal that does not result from or out of a breach of this Section 5.1, and that the
Company Board determines in good faith (after consultation with a financial advisor of nationally recognized standing and its outside legal counsel) either constitutes or is reasonably likely to lead to a Superior Proposal, and/or (B) furnish
to any such Person that has made after the date of this Agreement (and not withdrawn) a bona fide written unsolicited Acquisition Proposal that does not result from or out of a breach of this Section 5.1, and that the Company
Board determines in good faith (after consultation with a financial advisor of nationally recognized standing and its outside legal counsel) either constitutes or is reasonably likely to lead to a Superior Proposal, any non-public information
relating to the Company or any of its Subsidiaries pursuant to a confidentiality agreement, the confidentiality terms of which are no less favorable to the Company than those contained in the Confidentiality Agreement, provided that in the
case of any action taken pursuant to the preceding clauses (A) or (B), (1) the Company Board determines in good faith (after consultation with outside legal counsel) that the failure to take such action would reasonably be expected to be a
breach of its fiduciary duties to the Company Stockholders under Delaware Law, (2) at least three Business Days prior to participating or engaging in any such discussions or negotiations with, or furnishing any non-public information to, such
Person, the Company gives the Investors written notice of the identity of such Person and all the material terms of such Acquisition Proposal and of the Company’s intention to participate or engage in discussions or negotiations with, or
furnish non-public information to, such Person, and (3) contemporaneously with furnishing any non-public information to such Person, the Company furnishes such non-public information to the Investors to the extent such information has not been
previously furnished by the Company to the Investors. 
  

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 (ii) Without limiting the foregoing, it is understood that any violation of the
restrictions set forth in this Section 5.1 by any Company Subsidiary or Representatives of the Company or any of its Subsidiaries shall be deemed to be a breach of this Section 5.1 by the Company. The Company shall, and shall
cause its Subsidiaries to, cease immediately and to cause to be terminated, and shall not authorize or knowingly permit any of its or their Representatives to continue, any and all existing activities, discussions or negotiations, if any, with any
Person other than the Investors conducted prior to the date hereof with respect to any Acquisition Proposal and shall use commercially reasonable efforts to cause any such Person (or its agents or advisors) in possession of non-public information in
respect of the Company or any Company Subsidiaries that was furnished by or on behalf of the Company and the Company Subsidiaries to return or destroy (and confirm destruction of) all such information. 
 (iii) For purposes of this Agreement, “Acquisition Proposal” shall mean any inquiry, indication of interest, offer or
proposal (other than an inquiry, indication of interest, offer or proposal by the Investors) to engage in an Acquisition Transaction. For purposes of this Agreement, “Acquisition Transaction” shall mean any transaction or series of
related transactions (other than the transactions contemplated by this Agreement) involving: (i) the purchase or other acquisition from the Company by any Person or “group” (as defined in or under Section 13(d) of the Exchange
Act), directly or indirectly, of more than fifteen percent (15%) of any class of outstanding voting or equity securities of the Company or any of the Company Subsidiaries outstanding as of the consummation of such purchase or other acquisition,
or any tender offer (including a self-tender) or exchange offer by any Person or “group” (as defined in or under Section 13(d) of the Exchange Act) that, if consummated in accordance with its terms, would result in such Person or
“group” beneficially owning more than fifteen percent (15%) of any class of outstanding voting or equity securities of the Company or any of the Company Subsidiaries outstanding as of the consummation of such tender or exchange offer;
(ii) a merger, consolidation, amalgamation, joint venture, business combination or other similar transaction involving the Company pursuant to which the stockholders of the Company immediately preceding such transaction hold less than
eighty-five percent (85%) of the voting equity interests in the surviving or resulting entity of such transaction; (iii) a sale, lease, license (other than licenses in the ordinary course of business), transfer, acquisition or disposition
of more than fifteen percent (15%) of the consolidated assets of the Company and its Subsidiaries taken as a whole (measured by any of the lesser of book or fair market value thereof, consolidated revenue or net income of the Company and the
Company Subsidiaries taken as a whole); (iv) a liquidation, dissolution, extraordinary dividend, corporate reorganization or other winding up of the Company and the Company Subsidiaries, taken as a whole; or (v) any other transaction, or
agreement that would cause the issuance of the Securities pursuant to this Agreement to be impossible or impractical. For purposes of this Agreement, “Superior Proposal” shall mean any bona fide written unsolicited
Acquisition Proposal that did not result from or arise out of a breach of Section 5.1 with respect to which the Company Board shall have determined in good faith (after consultation with a financial advisor and its outside legal counsel
and after taking into account, among other things, all of the terms and conditions of such Acquisition Transaction) that the Acquisition Transaction contemplated by such Acquisition Proposal would be more favorable to the Company Stockholders (in
their capacity as such) than the transaction contemplated by the Transaction Documents (including any changes to the terms of this Agreement proposed by the Investors in response to such Superior Proposal); provided, that for purposes of the
definition of “Superior Proposal,” clause (i) in the definition of “Acquisition Proposal” shall read as follows: “(A) the purchase or other acquisition 

  

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from the Company by any Person or “group” (as defined in or under Section 13(d) of the Exchange Act), directly or indirectly, of more than
fifteen (15%) of any class of outstanding voting or equity securities of the Company or any of the Company Subsidiaries outstanding as of the consummation of such purchase or other acquisition, or (B) any tender offer (including a
self-tender) or exchange offer by any Person or “group” (as defined in or under Section 13(d) of the Exchange Act) that, if consummated in accordance with its terms, would result in such Person or “group” beneficially owning
more than fifteen percent (15%) of any class of outstanding voting or equity securities of the Company or any of the Company Subsidiaries outstanding as of the consummation of such tender or exchange offer, in either clause (A) or
(B) for aggregate consideration at least equal to or greater than the Purchase Price.” 
 (b) Notification of
Unsolicited Acquisition Proposals. In addition to the obligations of the Company set forth in Section 5.1(a), the Company shall promptly notify the Investors if any director or executive officer of the Company becomes aware of any
receipt by the Company of (i) of any Acquisition Proposal, (ii) any request for information that would reasonably be expected to lead to an Acquisition Proposal, or (iii) any inquiry with respect to, or which would reasonably be
expected to lead to, any Acquisition Proposal, all material terms and conditions of such Acquisition Proposal, request or inquiry, and the identity of the Person or group making any such Acquisition Proposal, request or inquiry. The Company shall
keep the Investors reasonably informed of the status and all material terms of any such Acquisition Proposal, request or inquiry. 
 5.2
Company Board Recommendation. 
 (a) Subject to the terms of Section 5.2(b) and Section 5.2(c),
the Company Board shall unanimously recommend that the Company Stockholders adopt this Agreement in accordance with the applicable provisions of the DGCL (the “Company Board Recommendation”). 
 (b) Neither the Company Board nor any committee thereof shall (i) fail to make, withhold, withdraw, amend or modify in a manner
adverse to the Investors, or publicly propose to withhold, withdraw, amend or modify in a manner adverse to the Investors, the Company Board Recommendation, (ii) approve, endorse, adopt or recommend, or publicly propose to approve, endorse,
adopt or recommend, any Acquisition Proposal or Superior Proposal, (iii) fail to recommend against acceptance of any tender offer or exchange offer for the Common Stock within ten Business Days after the commencement of such offer,
(iv) make a public statement inconsistent with the Company Board Recommendation unless the Company Board determines in good faith (after consultation with outside legal counsel) that the failure to make such public statement would be a breach
of its fiduciary duties to the Company Stockholders under Delaware Law, or (v) resolve or agree to take any of the foregoing actions (any of the foregoing, a “Company Board Recommendation Change”). Notwithstanding the
foregoing, at any time prior to the receipt of the Requisite Stockholder Approval, the Company Board may effect a Company Board Recommendation Change if following receipt of and on account of a Superior Proposal, the Company Board determines in good
faith (after consultation with outside legal counsel) that the failure to effect a Company Board Recommendation Change would reasonably be expected to be a breach of its fiduciary duties to the Company Stockholders under Delaware Law; provided
that prior to effecting such Company Board Recommendation Change, (i) the Company Board shall give the Investors at least four Business Days advance notice thereof (the “Notice Period”) (which notice 

  

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and any notice provided under Section 7.1(f), as well as the actions giving rise to such notice, shall not by themselves be deemed to be a
Company Board Recommendation Change), (ii) the Company shall attach to such notice the most current version of the proposed agreement relating to such Superior Proposal (which version or summary thereof shall be updated on a prompt basis) and
the identity of the Person making the Superior Proposal, (iii) the Company shall, and shall cause its financial and legal advisors to, during the Notice Period, negotiate with the Investors in good faith to make such adjustments in the terms
and conditions of this Agreement so that such Acquisition Proposal ceases to constitute a Superior Proposal, if the Investors, in their discretion, propose to make such adjustments; it being agreed that in the event that, after commencement of the
Notice Period, there is any material revision to the terms of a Superior Proposal, including any revision in price, the Notice Period shall be extended, if applicable, to ensure that at least forty-eight hours remains in the Notice Period subsequent
to the time the Company notifies the Investors of any such material revision (it being understood that there may be multiple extensions) and (iv) the Investors do not make, within the Notice Period, an offer that is determined by the Company
Board in good faith, after consulting with its outside counsel and financial advisor of nationally recognized reputation, to be at least as favorable to the stockholders of the Company as such Superior Proposal. 
 (c) Nothing in this Agreement shall prohibit the Company Board from (i) taking and disclosing to the Company Stockholders a position
contemplated by Rule 14e-2(a) under the Exchange Act or complying with the provisions of Rule 14d-9 promulgated under the Exchange Act, or (ii) making any disclosure to the Company Stockholders that the Company Board determines to make in
good faith (after consultation with outside legal counsel) in order to fulfill its fiduciary duties to the Company Stockholders under Delaware Law; provided that, in either such case, any such statement(s) or disclosures made by the Company
Board will be subject to the terms and conditions of this Agreement, including the provisions of Article VII. 
 5.3 Company
Stockholder Meeting. The Company shall establish a record date for, call, give notice of, convene and hold a meeting of the Company Stockholders (the “Company Stockholder Meeting”) as promptly as practicable following the
date hereof for the purpose of voting upon the approval of the Charter Amendment, issuance of Securities pursuant to this Agreement in accordance with the DGCL; provided, however, nothing herein shall prevent the Company from
postponing or adjourning the Company Stockholder Meeting if (i) there are insufficient shares of the Common Stock present or represented by a proxy at the Company Stockholder Meeting to conduct business at the Company Stockholder Meeting,
(ii) the Company is required to postpone or adjourn the Company Stockholder Meeting by applicable Legal Requirements or a request from the SEC or its staff, or (iii) the Company determines in good faith (after consultation with outside
legal counsel and approval of the Investors, where such approval will not be unreasonably withheld, delayed or conditioned) that it is necessary or appropriate to postpone or adjourn the Company Stockholder Meeting in order to give Company
Stockholders sufficient time to evaluate any information or disclosure that the Company has sent to Company Stockholders or otherwise made available to Company Stockholders by issuing a press release, filing materials with the SEC or otherwise
(including in connection with any Company Board Recommendation Change). Subject to Section 5.2(b), the Company shall solicit from the Company Stockholders proxies in favor of the Charter Amendment and the issuance of securities pursuant
to the Transaction Documents in accordance with Delaware Law, shall submit the Charter Amendment and the issuance of the Securities pursuant to the Transaction Documents for a vote of the Company Stockholders at the 
  

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Company Stockholder Meeting and shall use commercially reasonable efforts to secure the Requisite Stockholder Vote at the Company Stockholder Meeting. Unless
this Agreement is earlier terminated pursuant to Article VII, the Company shall establish a record date for, call, give notice of, convene and hold the Company Stockholder Meeting for the purpose of voting upon the Charter Amendment and the
issuance of the Securities in accordance with the DGCL, and shall submit the Charter Amendment and the issuance of securities pursuant to this Agreement for a vote of the Company Stockholders at the Company Stockholder Meeting, whether or not
(i) the Company Board at any time subsequent to the date hereof shall have effected a Company Board Recommendation Change or otherwise shall determine that this Agreement is no longer advisable or recommends that the Company Stockholders reject
it, or (ii) any Acquisition Proposal shall have been publicly proposed or announced or otherwise submitted to or received by the Company or the Company Stockholders. Unless this Agreement is terminated in accordance with its terms, the Company
shall not submit to the vote of Company Stockholders any Acquisition Proposal prior to the vote of the Company Stockholders with respect to the Charter Amendment and the issuance of securities pursuant to this Agreement at the Company Stockholder
Meeting. The notice of such Company Stockholder Meeting shall state that a resolution to adopt this Agreement and the Charter Amendment shall be considered at the Company Stockholder Meeting and no other matters shall be considered or voted upon at
such meeting without the Investors’ prior written consent. 
 5.4 Confidentiality. The parties acknowledge that the Company and
the Investors have previously executed a Confidential Disclosure Agreement dated June 11, 2008 (the “Confidentiality Agreement”), which Confidentiality Agreement will continue in full force and effect in accordance with its
terms and, each of the Investors and the Company will hold, and will cause its respective directors, officers, Employees, agents and advisors (including attorneys, accountants, consultants, bankers and financial advisors) to hold, any Evaluation
Material (as defined in the Confidentiality Agreement) confidential in accordance with the terms of the Confidentiality Agreement. 
 5.5
Public Disclosure. Without limiting any other provision of this Agreement, the Investors and the Company will consult with each other before issuing, and provide each other the opportunity to review, comment upon and concur with, and
agree on any press release with respect to this Agreement and the transactions contemplated hereby and will not issue any such press release prior to such consultation and agreement, except as may be required by law or any listing agreement with any
applicable national or regional securities exchange or market. The parties have agreed to the text of the joint press release announcing the signing of this Agreement. 
 5.6 Commercially Reasonable Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the Investors and the Company shall use commercially reasonable efforts to take, or
cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other party or parties hereto in doing, all things reasonably necessary, proper or advisable under applicable Legal Requirements to consummate and
make effective, in the most expeditious manner practicable, the transactions contemplated by this Agreement, including using commercially reasonable efforts to: (i) cause the conditions to the issuance of Securities pursuant to this Agreement
set forth in Article VI to be satisfied; (ii) obtain all necessary actions or non-actions, waivers, consents, approvals, orders and authorizations from Governmental Entities and make all necessary registrations, declarations and filings
with Governmental Entities; and (iii) execute or deliver any additional instruments reasonably necessary to consummate the transactions 
  

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contemplated by, and to fully carry out the purposes of, this Agreement. The Company and the Investors shall cooperate with one another (x) in
determining whether any action by or in respect of, or filing with, any Governmental Entity is required, or any actions, consents, approvals or waivers are required to be obtained from parties to any material Contracts, in connection with the
consummation of the transactions contemplated by this Agreement and (y) in taking such reasonable actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such actions,
consents, approvals or waivers. 
 5.7 Proxy Statement. The Company shall prepare, and the Company shall file with the SEC, the
Proxy Statement by the Proxy Filing Date for use in connection with the solicitation of proxies from the Company Stockholders for use at the Company Stockholder Meeting; provided that prior to filing the Proxy Statement, the Company will
provide drafts of thereof to the Investors, will give the Investors reasonable time to review and comment thereon and will include any reasonable comments made by the Investors in the Proxy Statement. Subject to applicable Legal Requirements, the
Company shall use its best efforts to cause the Proxy Statement to be disseminated to the Company Stockholders as promptly as practicable following the filing thereof with the SEC and confirmation from the SEC that it will not comment on, or that it
has no additional comments on, the Proxy Statement (but in no event later than five Business Days following clearance of the Proxy Statement by the SEC). The Company shall not file with the SEC the Proxy Statement or any amendment or supplement
thereto, and, to the extent permitted by Legal Requirements, correspond or otherwise communicate in any material respect with the SEC or its staff with respect to the Proxy Statement without providing the Investors a reasonable opportunity to review
and comment thereon or participate therein. The Company shall (i) as promptly as practicable after receipt thereof, provide the Investors and their counsel with copies of any written comments, and advise the Investors and their counsel of any
oral comments, with respect to the Proxy Statement (or any amendment or supplement thereto) received from the SEC or its staff, (ii) include in the Company’s written response to such comments any comments reasonably proposed by the
Investors and their counsel, and (iii) provide the Investors and their counsel a reasonable opportunity to participate in any discussions or meetings with the SEC. The Company shall advise the Investors, promptly after it receives notice
thereof, of any receipt of a request by the SEC or its staff for an amendment or revisions to the Proxy Statement any receipt of comments from the SEC or its staff on the Proxy Statement or any receipt of a request by the SEC or its staff for
additional information in connection therewith. If at any time prior to the Company Stockholder Meeting, any information relating to the Company or any of its respective partners, members, stockholders, directors, or officers, should be discovered
by the Company, which should be set forth in an amendment or supplement to the Proxy Statement so that the Proxy Statement would not include any misstatement of a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the party which discovers such information shall promptly notify the other, and an appropriate amendment or supplement to the Proxy
Statement describing such information shall be promptly prepared and filed with the SEC and, to the extent required by applicable Legal Requirements or the SEC or its staff, disseminated to the Company Stockholders. The Company shall cause the Proxy
Statement to comply as to form and substance in all material respects with the applicable requirements of the Exchange Act and the rules of the SEC and Nasdaq. Unless this Agreement is earlier terminated pursuant to Article VII or the Company
Board shall effect a Company Board Recommendation Change pursuant to the terms of Section 5.2(b), the Company shall include the Company Board Recommendation in the Proxy Statement. 
  

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 5.8 [Reserved.] 
 5.9 Furnishing of Information. Until the date that the Investors owning Shares or Warrant Shares may sell all of them under Rule 144 of the Securities Act (or any successor provision), the Company shall
use its best efforts to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. The Company further
covenants that it will take such further action as any holder of Securities may reasonably request to satisfy the provisions of this Section 5.9. 
 5.10 Integration. The Company shall not, and shall use its commercially reasonably efforts to ensure that no Affiliate thereof shall, sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act of the sale of the Securities to
the Investors or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market. 
 5.11 Reservation of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations to
issue such Common Shares and Warrant Shares under the Transaction Documents. In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy its obligations to issue such Common Shares and Warrant
Shares under the Transaction Documents, the Company shall take such actions as may be required to increase the number of authorized shares. 
 5.12 Use of Proceeds. The Company intends to use the net proceeds from the sale of the Securities to consummate the transaction contemplated in the Conexant Asset Purchase Agreement and for any other purpose validly authorized by the
Company’s Board of Directors and/or stockholders. 
 5.13 Reporting Status; Listing of Common Stock. Throughout the period during
which the Registration Statement is effective, the Company will not terminate its status as an issuer required to file reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder would permit such termination. The
Company hereby agrees to use commercially reasonable efforts to maintain the listing of the Common Stock on the Nasdaq Global Market, and to cause all of the Common Shares and the Warrant Shares to be listed on the Nasdaq Global Market as of the
Closing Date. The Company further agrees, if the Company applies to have the Common Stock traded on any national securities exchange other than the Nasdaq Global Market it will include in such application all of the Common Shares and Warrant Shares,
and will take such other action as is necessary to cause all of the Common Shares and Warrant Shares to be listed on such other national securities exchange as promptly as possible. 
  

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 5.14 Form D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the
Securities as required under Regulation D and to provide a copy thereof, promptly upon request of the Investors. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to
qualify the Securities for, sale to the Investors at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Investors.

 5.15 Access to Information. The Company will afford the Investors and the Investors’ accountants, counsel and other
representatives reasonable access during normal business hours and upon reasonable notice to its properties, books, records and personnel during the period prior to the Closing Date; provided, however, that the Company may restrict the
foregoing access to the extent that (i) any law, treaty, rule or regulation of any Governmental Entity applicable to such party requires such party or its Subsidiaries to restrict or prohibit access to any such properties or information,
(ii) based on the advice of the Company’s outside counsel, access to such documents or information would give rise to a material risk of waiving any attorney-client privilege, work product doctrine or other applicable privilege applicable
to such documents or information, or (iii) such access would be in breach of any confidentiality obligation, commitment or provision by which the Company or any of the Company Subsidiaries is bound or affected, which confidentiality obligation,
commitment or provision shall be disclosed to the Investors, provided that disclosure of such obligation, commitment or provision would not itself be the breach of an obligation or commitment to a third party. With respect to the exchange of
competitively sensitive information, including strategic and marketing plans, pricing material and customer specific data, outside antitrust counsel will be consulted prior to the exchange of such information, and such information shall not be
exchanged to the extent such counsel advises in writing against such exchange. In addition, any information obtained from the Company or any Company Subsidiary pursuant to the access contemplated by this Section 5.15 shall be subject to
the Confidentiality Agreement. The terms and conditions of the Confidentiality Agreement shall apply to any information obtained by the Investors or any of their financial advisors, business consultants, legal counsel, accountants and other agents
and representatives in connection with any investigation conducted pursuant to the access contemplated by this Section 5.15. Any investigation conducted pursuant to the access contemplated by this Section 5.15 shall be
conducted in a manner that does not unreasonably interfere with the conduct of the business of the Company and the Company Subsidiaries or knowingly create a risk of damage or destruction to any property or assets of the Company or any of the
Company Subsidiaries. Any access to any of the Company’s offices shall be subject to the Company’s reasonable security measures, the requirements of the applicable lease and insurance requirements and shall not include the right to perform
any “invasive” testing. 
 5.16 Section 16. The Company agrees that it will not, prior to the date that is six
(6) months from the Closing Date, consummate a merger or other consolidation that could result in short swing liability under Section 16 of the Exchange Act for the Investors; provided, however, that the foregoing shall not
preclude the Company from entering into a definitive agreement with respect to such merger or other business combination. 
 5.17 Board
Representation. Promptly after the date of this Agreement, the Company shall take all necessary corporate action to cause the Company Board to be comprised of seven (7) members on of the Closing Date, including causing each of the Persons
designated by the Investors as set forth on Schedule 5.17 (the “Investor Designees”) to be appointed to the Company Board as of the Closing so that the composition of the Company Board immediately after the Closing is as set
forth on Schedule 5.17. 
  

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 5.18 Anti-Takeover Laws. In the event that any state anti-takeover or other similar Legal
Requirements are or become applicable to this Agreement or any of the transactions contemplated by this Agreement, the Company and the Investors shall use commercially reasonable efforts to ensure that the transactions contemplated by this Agreement
may be consummated as promptly as practicable on the terms and subject to the conditions set forth in this Agreement and otherwise to minimize the effect of such Legal Requirements on this Agreement and the transactions contemplated hereby.

 5.19 Notice of Certain Events. In connection with the continuing operation of the business of the Company and the Company
Subsidiaries between the date of this Agreement and the Closing Date, subject to applicable Legal Requirements, the Company shall consult in good faith on a reasonably regular basis with the Investors to report material (individually or in the
aggregate) operational developments, the status of relationships with customers and resellers, the status of ongoing operations and other matters reasonably requested by the Investors pursuant to procedures reasonably requested by the Investors;
provided that (i) no such consultation shall affect the representations, warranties, covenants, agreements or obligations of the parties (or remedies with respect thereto) or the conditions to the obligations of the parties under this
Agreement, and (ii) nothing herein shall obligate the Company to disclose any information that in the good faith opinion of the Company could be considered a potential violation of any applicable Legal Requirements relating to antitrust
matters. The Company shall promptly advise the Investors orally and in writing of any litigation commenced after the date hereof against the Company or any of its directors by any stockholder of the Company relating to the Transaction Documents, the
issuance and sale of the Securities and the other transactions contemplated hereby and thereby and shall keep the Investors reasonably informed regarding any such litigation. The Company shall give the Investors the opportunity to consult with the
Company regarding the defense or settlement of any such litigation and shall consider the Investors’ views with respect to such litigation. Each of the Company and the Investors shall promptly, following knowledge thereof, notify the other of:

 (a) any inaccuracy of any representation or warranty contained in this Agreement at any time during the term hereof that
could reasonably expected to cause the conditions set forth in Section 6.2(a) or Section 6.3(a) not to be satisfied; 
 (b) any failure of that party to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by it hereunder in the time and manner described herein that would cause the conditions set
forth in Section 6.2(b) or Section 6.3(b) not to be satisfied; 
 (c) any notice or other
communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; 
 (d) any notice or other communication from any Governmental Entity in connection with the transactions contemplated by the Transaction
Documents; and 
  

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 (e) any notice or other communication from any party to any material Contract to the
effect that such party is terminating or otherwise materially adversely modifying its relationship with the Company or any of the Company Subsidiaries as a result of the transactions contemplated by the Transaction Documents; 
 provided, however, that the delivery of any notice pursuant to this Section 5.19 shall not limit or otherwise affect the remedies available
hereunder to the party receiving that notice, and provide further that any failure of the Company to provide notice pursuant to this Section 5.19 shall not cause the condition set forth in Section 6.3(b) to not
be satisfied if the Company shall promptly provide such notice upon knowledge of such failure. 
 5.20 Certificate of
Designation. Promptly after the date hereof, the Company shall file the Certificate of Designation with the Secretary of State of the State of Delaware. 
 5.21 Certain Agreements. Each of the Company and the Investors agree that it shall operate in good faith hereunder and shall not amend this Agreement in order to provide for the termination of this
Agreement upon their mutual agreement. The Company and the Investors acknowledge and agree that this Section 5.20 is intended to be in addition to the rights otherwise available to Conexant pursuant to the Conexant Asset Purchase
Agreement, and shall operate for the benefit of and shall be enforceable by, Conexant, which is an intended third party beneficiary of this Section 5.20. 
 5.22 Further Assurances. In the event that at any time after the Closing any further action is necessary or desirable to carry out the purposes of this Agreement and the other Transaction Documents, each
of the parties hereto will take such further action (including the execution and delivery of such further instruments and documents) as any other party hereto reasonably may request. Notwithstanding the foregoing, if at any time (1) the
Certificate of Designation or any portion thereof is found to be invalid or ineffective, (2) the Company takes the position that the Certificate of Designation or any portion thereof is invalid or ineffective and refuses to permit the holder of
the Series A Preferred Share to exercise any right provided for therein or (3) for any other reason the holder of the Series A Preferred Share otherwise does not receive all of the rights and benefits contemplated by the Certificate of
Designation, then the Company shall take all such other action as may be requested by the Investors that is required to cause the Investors to receive, to the maximum extent permitted by law, the rights and benefits the Investors anticipated the
holder of the Series A Preferred Share would receive under the Certificate of Designation. 
 ARTICLE VI 
 CONDITIONS 
 6.1 Conditions to the
Obligations of Each Party to Perform its Obligations Under this Agreement. The respective obligations of each party to this Agreement shall be subject to the satisfaction at or prior to the Closing Date of the following conditions:

 (a) Requisite Stockholder Approval. The Company shall have obtained the affirmative vote of the holders of a
majority of the outstanding shares of its Common Stock to approve the Charter Amendment and the affirmative vote of a majority of the votes cast at the Company Stockholder Meeting (at which a quorum is present) to approve the issuance of the
Securities (together, the “Requisite Stockholder Approval”). 
  

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 (b) No Order. No Governmental Entity of competent jurisdiction shall have enacted,
issued, promulgated, enforced or entered any statute, rule, regulation, executive order, decree, injunction, judgment, ruling or any other order (each, an “Order”) which (i) is in effect and (ii) has the effect of
preventing or making the issuance of the Securities pursuant to the Transaction Documents illegal. 
 (c) Conexant Asset
Purchase. Each of the conditions to closing of the transactions contemplated by the Conexant Asset Purchase Agreement shall have been satisfied. 
 6.2 Additional Conditions to the Obligations of the Company. The obligation of the Company to consummate and effect the issuance of the Securities under the Transaction Documents shall be subject to the
satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing, exclusively by the Company: 
 (a) Representations and Warranties. The representations and warranties of the Investors set forth in this Agreement shall be true and correct when made and on and as of the Closing Date with the same force and
effect as if made on and as of such date, except (i) for any failure to be so true and correct that would not, individually or in the aggregate, prevent or materially delay the consummation of the transactions contemplated by the Transaction
Documents or the ability of the Investors to fully perform their respective covenants and obligations under this Agreement, (ii) for changes required or specifically provided for by this Agreement, and (iii) for those representations and
warranties which address matters only as of a particular date, which representations shall have been true and correct as of such particular date, except for any failure to be so true and correct as of such particular date that would not,
individually or in the aggregate, prevent or materially delay the consummation of the transactions contemplated by this Agreement or the ability of the Investors to fully perform their respective covenants and obligations under this Agreement.

 (b) Agreements and Covenants. The Investors shall have performed or complied in all material respects with their
agreements and covenants required by this Agreement to be performed or complied with by them at or prior to the Closing Date. 
 (c) Officer’s Certificate. The Company shall have received a certificate of the Investors, validly executed for and on behalf of the Investors and in their respective names by a duly authorized officer thereof, certifying that
the conditions set forth in Section 6.2(a) and Section 6.2(b) have been satisfied. 
 (d)
Proceedings. There shall not be pending any suit or litigation challenging or seeking to restrain or prohibit the issuance of the Securities under the Transaction Documents or any of the other transactions contemplated by the Transaction
Documents. 
  

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 6.3 Additional Conditions to the Obligations of the Investors. The obligations of the
Investors to consummate and effect the issuance of the Securities under the Transaction Documents shall be subject to the satisfaction at or prior to the Closing Date of each of the following conditions, any of which may be waived, in writing,
exclusively by the Investors: 
 (a) Representations and Warranties. The representations and warranties of the Company
set forth in this Agreement shall be true and correct when made and on and as of the Closing Date with the same force and effect as if made on and as of such date, except (i) for any failure to be so true and correct which has not had and would
not have, individually or in the aggregate, a Material Adverse Effect, (ii) for changes required or specifically provided for by this Agreement, and (iii) for those representations and warranties which address matters only as of a
particular date, which representations and warranties shall have been true and correct as of such particular date, except for any failure to be so true and correct as of such particular date which has not had and would not, individually or in the
aggregate, have a Material Adverse Effect; provided, however, that, for purposes of determining the accuracy of the representations and warranties of the Company set forth in the Agreement for purposes of this
Section 6.3(a), all “Material Adverse Effect” qualifications set forth in such representations and warranties shall be disregarded. 
 (b) Agreements and Covenants. The Company shall have performed or complied in all material respects with its agreements and covenants required by this Agreement to be performed or complied with by it at or
prior to the Closing Date. 
 (c) Officer’s Certificate. The Investors shall have received a certificate of the
Company, validly executed for and on behalf of the Company and in its name by a duly authorized officer thereof, certifying that the conditions set forth in Section 6.3(a), Section 6.3(b) and Section 6.3(d) have
been satisfied. 
 (d) Material Adverse Effect. Since the date of this Agreement, there shall not have occurred and be
continuing a Material Adverse Effect or a “Seller Material Adverse Effect” (as defined in the Conexant Asset Purchase Agreement). 
 (e) Proceedings. There shall not be pending any suit or litigation (i) challenging or seeking to restrain or prohibit the consummation of the issuance of the Securities pursuant to the Transaction
Documents or (ii) with a reasonable likelihood of an adverse judgment and seeking to prohibit or limit in any material respect the Investors’ ability to vote, receive dividends with respect to or otherwise exercise ownership rights with
respect to the stock of the Company or any Company Subsidiaries. 
 (f) Board of Directors. The Company Board (which
shall have seven (7) members as of the Closing) shall have appointed, effective as of the Closing the Investor Designees to serve on the Company Board in the capacity set forth on Schedule 5.17 such that the composition of the Company
Board is as set forth on Schedule 5.17. 
 (g) Stockholder Agreement. The Stockholder Agreement shall be in full
force and effect. 
  

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 (h) Charter Amendment. The Charter Amendment and the Certificate of Designation
shall have been duly filed with the Secretary of State of the State of Delaware and shall be effective. 
 (i) Nasdaq;
Trading. The Company shall have filed with Nasdaq a true and complete Notification Form: Listing of Additional Shares covering the Common Shares and the Warrant Shares. No stop order or suspension of trading shall have been imposed by Nasdaq or
the SEC or any other Governmental Entity with respect to public trading in the Common Stock. 
 (j) Certified
Resolutions. The Investors shall have received a certificate of the Company, validly executed for and on behalf of the Company and in its name by a duly authorized officer thereof, certifying the resolutions (A) duly adopted by the Company
Board authorizing the execution, delivery and performance of this Agreement, the other Transaction Documents, and the Transactions contemplated hereby and thereby, including the issuance and sale of the Securities, the filing of the Certificate of
Designation, the Charter Amendment, and the appointment of the Investor Designees to the Company Board, and (B) duly adopted by the Company Stockholders at the Company Stockholder Meeting authorizing the issuance and sale of the Securities and
the filing of the Charter Amendment. 
 ARTICLE VII 
 TERMINATION, AMENDMENT AND WAIVER 
 7.1 Termination. Notwithstanding the prior approval by the
Company Stockholders in accordance with the DGCL, this Agreement may be terminated and the issuance of the Securities pursuant to the Transaction Documents may be abandoned at any time prior to the Closing Date (it being agreed that the party hereto
terminating this Agreement pursuant to this Section 7.1 shall give prompt written notice of such termination to the other party or parties hereto): 
 (a) by either the Investors or the Company, if the issuance of Securities shall have not been consummated by the Termination Date;
provided, however, that the right to terminate this Agreement pursuant to this Section 7.1(a) shall not be available to any party hereto whose action or failure to fulfill any obligation under this Agreement has been a
principal cause of or has been the principal reason for any of the conditions to the issuance of the Securities set forth in Article VI having failed to be satisfied on or before the Termination Date and such action or failure to act
constitutes a material breach of this Agreement; 
 (b) by either the Investors or the Company, if consummation of the
issuance of securities would violate any non-appealable final Order of any Governmental Entity having competent jurisdiction or if there shall be enacted any law or regulation that makes consummation of the issuance of securities illegal or
otherwise prohibited; 
 (c) by either the Investors or the Company, if: (i) the Company Stockholder Meeting (including
any postponement or adjournments thereof) shall have been held and completed and the stockholders of the Company shall have taken a final vote on a proposal for the issuance of Securities pursuant to this Agreement, and (ii) the Requisite
Stockholder Approval shall not have been obtained; 
  

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 (d) by the Company, in the event that (i) the Company is not then in material breach
of its covenants, agreements and other obligations under this Agreement, and (ii) the Investors shall have breached or otherwise violated any of their respective material covenants, agreements or other obligations under this Agreement, or any
of the representations and warranties of the Investors set forth in this Agreement shall have become inaccurate, in either case that (A) would give rise to the failure of a condition set forth in Section 6.2(a) or
Section 6.2(b) and (B) is not cured within thirty days after written notice thereof is received by the Investors or is not capable of being cured by the Termination Date; 
 (e) by the Investors, in the event that (i) the Investors are not then in material breach of their respective covenants, agreements
and other obligations under this Agreement, and (ii) the Company shall have breached or otherwise violated any of its material covenants, agreements or other obligations under this Agreement, or any of the representations and warranties of the
Company set forth in this Agreement shall have become inaccurate, in either case that (A) would give rise to the failure of a condition set forth Section 6.3(a) or Section 6.3(b) and (B) is not cured within thirty
days after written notice thereof is received by the Company or is not capable of being cured by the Termination Date; 
 (f)
by the Company, in the event that (i) at least four Business Days prior to terminating this Agreement pursuant to this Section 7.1(f), the Company shall have notified the Investors in writing that the Company Board has received a
Superior Proposal, and intends to terminate this Agreement pursuant to this Section 7.1(f) and enter into a definitive agreement with respect to such Superior Proposal immediately following the termination of this Agreement, which notice
shall include the most current version of such definitive agreement and the identity of the Person making such Superior Proposal, and otherwise complied with each of the requirements set forth in Section 5.1 and
Section 5.2(b) with respect to a Company Board Recommendation Change (it being understood and hereby agreed that such four Business Day period may be the same four Business Day period contemplated by Section 5.2(b) in
connection with a proposed Company Board Recommendation Change), and (ii) the Company pays the Investors the Company Termination Fee payable to Investors pursuant to Section 7.3(b)(iii); 
 (g) by the Investors, in the event that (i) the Company Board or any committee thereof shall have for any reason effected a Company
Board Recommendation Change, (ii) the Company shall have entered into, or publicly announced its intention to enter into, a letter of intent, memorandum of understanding or Contract relating to any Acquisition Proposal, or (iii) a tender
or exchange offer for Common Stock that constitutes an Acquisition Proposal (whether or not a Superior Proposal) is commenced by a Person unaffiliated with the Investors and, within ten (10) Business Days after the commencement of such
Acquisition Proposal, the Company shall not have issued a public statement (and filed a Schedule 14D-9 pursuant to Rule 14e-2 and Rule 14d-9 promulgated under the Exchange Act) reaffirming the Company Board Recommendation and recommending that the
Company Stockholders reject such Acquisition Proposal and not tender any shares of Common Stock into such tender or exchange offer; 
 (h) by either the Company or the Investors in the event that the Conexant Asset Purchase Agreement shall have been terminated pursuant to its terms; provided, however, that the right to terminate this Agreement pursuant to
this Section 7.1(h) shall not be available to any party 

  

 -40- 

 
hereto whose action or failure to fulfill any obligation under this Agreement has been a principal cause of or has been the principal reason for any of the
conditions to the issuance of the Securities set forth in Article VI having failed to be satisfied on or before the Termination Date and such action or failure to act constitutes a material breach of this Agreement, and the failure to
consummate the transactions contemplated by this Agreement was the proximate cause of the termination of the Conexant Asset Purchase Agreement; or 
 (i) by mutual written agreement of the Investors and the Company with the prior written consent of Conexant (it being understood that this Section 7.1(i) is intended to be in addition to the rights
otherwise available to Conexant pursuant to the Conexant Asset Purchase Agreement, and shall operate for the benefit of and shall be enforceable by Conexant, which is an intended third party beneficiary of this Section 7.1(i)). 
 7.2 Notice of Termination; Effect of Termination. Any proper and valid termination of this Agreement pursuant to Section 7.1
shall be effective immediately upon the delivery of written notice of the terminating party to the other party or parties hereto, as applicable. In the event of the termination of this Agreement pursuant to Section 7.1 this Agreement
shall be of no further force or effect without liability of any party or parties hereto, as applicable (or any partner, member, stockholder, director, officer, employee, affiliate, agent or other representative of such party or parties) to the other
party or parties hereto, as applicable, except (a) for the terms of Section 5.4, this Section 7.2, Section 7.3 and Article VIII, each of which shall survive the termination of this Agreement, and
(b) nothing herein shall relieve any party or parties hereto, as applicable, from liability for any willful breach of, or fraud in connection with, this Agreement. In addition to the foregoing, no termination of this Agreement shall affect the
obligations of the parties hereto set forth in the Confidentiality Agreement, all of which obligations shall survive termination of this Agreement in accordance with their terms. 
 7.3 Fees and Expenses.
 (a) Except as otherwise set forth in this Agreement, including Section 7.3(b), all Expenses shall be paid by the party incurring such Expenses; provided that the Company shall reimburse the Investors at the Closing by
wire transfer of immediately available funds to an account or accounts designated by the Investors for all of the Investors’ Expenses and the Investors’ Conexant Expenses; provided further that in the event of the termination
of this Agreement pursuant to Section 7.1(a), 7.1(b), 7.1(e) or 7.1(h), the Company shall pay, within three Business Days of receiving an invoice therefor, by wire transfer of immediately available funds to an
account or accounts designated by the Investors, all of the Investors’ Conexant Expenses in an amount no greater than $750,000. 
 (b) Company Payments. 
 (i) In the event that this Agreement is terminated by the Investors or the Company
pursuant to Section 7.1(c), the Company shall reimburse the Investors for the Investors’ Expenses and the Investors’ Conexant Expenses in an aggregate amount for such Expenses no greater than $1,750,000, within three Business
Days of receiving an invoice therefor, by wire transfer of immediately available funds to an account or accounts designated in writing by the Investors. 
  

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 (ii) The Company shall pay to the Investors the Company Termination Fee plus the
Investors’ Expenses and the Investors’ Conexant Expenses, in an aggregate amount for such Expenses no greater than $1,750,000 and only to the extent not already paid pursuant to Section 7.2(b)(i) above, by wire transfer of
immediately available funds to an account or accounts designated in writing by the Investors, within two Business Days after demand by the Investors, in the event that: (A) this Agreement is terminated by the Investors or the Company pursuant
to Section 7.1(c); (B) following the execution and delivery of this Agreement and prior to the termination of this Agreement pursuant to Section 7.1(c), an Acquisition Transaction shall have been publicly announced or
shall have become publicly known and not withdrawn; and (C) within twelve months following the termination of this Agreement pursuant to Section 7.1(c), either an Acquisition Transaction is consummated or the Company enters into a
definitive agreement providing for an Acquisition Transaction. 
 (iii) In the event that this Agreement is terminated by the
Company pursuant to Section 7.1(f), the Company shall pay to the Investors the Company Termination Fee plus the Investors’ Expenses and the Investors’ Conexant Expenses, in an aggregate amount for such Expenses no greater than
$1,750,000, by wire transfer of immediately available funds to an account or accounts designated in writing by the Investors, prior to and as a condition to the effectiveness of such termination. 
 (iv) In the event that this Agreement is terminated by the Investors pursuant to Section 7.1(g), the Company shall pay to the
Investors a cash fee equal to the Company Termination Fee plus the Investors’ Expenses and the Investors’ Conexant Expenses, in an aggregate amount for such Expenses no greater than $1,750,000, by wire transfer of immediately available
funds to an account or accounts designated in writing by the Investors, within two Business Days after such termination. 
 (v) For purposes of this Agreement, the “Company Termination Fee” shall mean an amount equal to $2,000,000. 
 (c) Single Payment Only. The parties hereto acknowledge and hereby agree that in no event shall the Company be required to pay the Company Termination Fee on more than one occasion, nor shall it be required to
reimburse Investors for their Expenses and their Conexant Expenses in an aggregate amount greater than $1,750,000. 
 (d)
Enforcement. The parties hereto acknowledge and hereby agree that the covenants and agreements set forth in this Section 7.3 are an integral part of the transactions contemplated by this Agreement, and that without these
agreements, the parties hereto would not have entered into this Agreement, and that any amounts payable pursuant to this Section 7.3 do not constitute a penalty. If the Company fails to pay as directed in writing by the Investors, any
amounts due to the Investors pursuant to this Section 7.3 within the time periods specified in this Section 7.3, then the Company shall pay the costs and expenses (including reasonable legal fees and expenses) incurred by the
Investors in connection with any action, including the filing of any lawsuit, taken to 

  

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collect payment of such amounts, together with interest on such unpaid amounts at the prime lending rate prevailing during such period as published in The
Wall Street Journal, calculated on a daily basis from the date such amounts were required to be paid until the date of actual payment. 
 (e) Effect of Termination, Payment of Company Termination Fee. Upon termination of this Agreement in accordance with its terms, neither party shall have any liability to any other party except (i) in the
case of fraud or willful breach, (iii) pursuant to Section 7.3(a), (ii) pursuant to Section 7.3(b), if applicable, or (iii) for the performance or nonperformance of obligations that by their terms are intended
to continue notwithstanding such termination. For the avoidance of doubt, in the event that this Agreement is terminated pursuant to Section 7.1(c), Section 7.1(f) or Section 7.1(g) under circumstances entitling
the Investors to receive in the case of Section 7.1(c), the reimbursement of and the payment of expenses pursuant to Section 7.3(a) or in the case of Section 7.1(f) or Section 7.1(g), the Company
Termination Fee in each case pursuant to Section 7.3(b), then, upon payment of the expenses pursuant to Section 7.3(a) and/or the Company Termination Fee to the Investors, as the case may be, each in accordance with
Section 7.3(b), the Company shall have no further liability to the Investors in connection with this Agreement or the matters forming the basis for such termination, except in the case of fraud or willful breach. 
 7.4 Amendment. This Agreement may be amended by the parties hereto, by action taken or authorized by their respective boards of directors or
other governing body, at any time before or after approval of the issuance of the Securities by the stockholders of the Company, provided that after approval of the issuance of the Securities by the stockholders of the Company, no amendment
shall be made which by requires further approval by the stockholders of the Company under applicable Legal Requirements without such further stockholder approval. This Agreement may not be amended except by execution of an instrument in writing
signed on behalf of each of the Investors and the Company. 
 7.5 Extension; Waiver. At any time prior to the Closing Date, any
party hereto, by action taken or authorized by their respective board of directors or other governing body, may, to the extent legally allowed: (a) extend the time for the performance of any of the obligations or other acts of the other parties
hereto; (b) waive any inaccuracies in the representations and warranties made to such party contained herein or in any document delivered pursuant hereto; and (c) waive compliance with any of the agreements or conditions for the benefit of
such party contained herein. Any agreement on the part of a party hereto to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. Delay in exercising any right under this Agreement
shall not constitute a waiver of such right. 
 ARTICLE VIII 
 MISCELLANEOUS 
 8.1 Survival of Representations,
Warranties and Agreements. The representations and warranties of the Company and the Investors contained in this Agreement shall terminate on the first (1st) anniversary of the Closing Date. The covenants of the Company and the Investors contained in this Agreement shall terminate at the Closing Date; provided, that the covenants that by their terms are required to
be performed in whole or in part following the Closing Date shall survive the Closing Date. The liability of the Company with respect to breaches of representations and warranties in this Agreement shall be limited to $2,100,000. The Confidentiality
Agreement shall terminate upon the Closing Date or the termination of this Agreement. 
  

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 8.2 Entire Agreement. The Transaction Documents, together with Confidentiality Agreement, the
Exhibits and Schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules. At or after the Closing, and without further consideration, the Company will execute and deliver to the Investors such further documents as may be reasonably requested in
order to give practical effect to the intention of the parties under the Transaction Documents. 
 8.3 Notices. Any and all notices or
other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section prior to 6:30 p.m. (Pacific Time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (Pacific Time) on any Trading Day, (c) the Trading Day following the date of deposit with a
nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses, facsimile numbers and email addresses for such notices and communications are those set forth
on the signature pages hereof, or such other address or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person. 
 8.4 Construction, Interpretation. 
 (a) The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. 
 (b) When a reference is made in this Agreement to Exhibits,
such reference shall be to an Exhibit to this Agreement unless otherwise indicated. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. For purposes of this
Agreement, the words “include,” “includes” and “including,” when used herein, shall be deemed in each case to be followed by the words “without limitation.” When reference is made herein
to “the business of” an entity, such reference shall be deemed to include the business of all such entity and its Subsidiaries, taken as a whole. 
 8.5 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of the Investors. The Investors may not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company, except that the Investors may transfer or
assign its rights and obligations under this Agreement, in whole or in part, to one or more of their respective Affiliates at any time; provided that such transfer or assignment will not relieve the Investors of any of their obligations
hereunder. 
  

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 8.6 Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be
binding upon the Company and the Investors and their respective successors and permitted assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, other than those persons mentioned in the
preceding sentence or otherwise explicitly mentioned in this Agreement, any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof
being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person. 
 8.7 Governing
Law; Venue; Waiver of Jury Trial. THE CORPORATE LAWS OF THE STATE OF DELAWARE SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. THE COMPANY AND THE INVESTORS HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS
SITTING IN SANTA CLARA COUNTY, CALIFORNIA FOR THE ADJUDICATION OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE
ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR THE INVESTORS, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF ANY
SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS ARISING OUT OF OR RELATING TO THIS AGREEMENT (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS) AND SUCH PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
JURY. 
 8.8 Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or email attachment, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such
facsimile or email-attached signature page were an original thereof. 
  

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 8.9 Severability. If any provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt to agree upon a valid and enforceable provision that is a reasonable
substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Agreement. 
 8.10 Replacement of
Securities. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and
substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and the execution by the holder thereof of a customary lost certificate affidavit of
that fact and an agreement to indemnify and hold harmless the Company for any losses in connection therewith. The applicants for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs associated with
the issuance of such replacement Securities. 
 [SIGNATURE PAGES TO FOLLOW] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

					
	IKANOS COMMUNICATIONS, INC.
		
	By:	 	/s/ Michael Gulett
		 	Name:	 	Michael Gulett
		 	Title:	 	President & Chief Executive Officer

  

			
	Address for Notice:
	
	Ikanos Communications, Inc.
	
	47669 Fremont Blvd.
	
	Fremont, CA 94538
	
	Facsimile No.: (408) 317-0454
	
	Telephone No.: (510) 438-6202
	
	Attn: Michael Gulett
	
	with a copy (which shall not constitute notice) to:
	
	 Wilson Sonsini Goodrich & Rosati
 Professional Corporation
 One Market, Spear Tower, Suite 3300
 San Francisco, CA 94105
 Attention: Robert Ishii
 Facsimile No.: (415) 947-2099
 Telephone No.: (415) 947-2000

 COMPANY SIGNATURE PAGE 

 IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed
by their respective authorized signatories as of the date first indicated above. 
  

			
	 Tallwood III, L.P.
 Tallwood III
Partners, L.P.
 Tallwood III Associates, L.P. 

		
	By:	 	Tallwood III Management, LLC
	Its	 	General Partner
		
	By:	 	/s/ George Pavlov
		 	George Pavlov, Managing Member

  

			
	Tallwood III Annex, L.P.
		
	By:	 	Tallwood III Annex Management, LLC
	Its	 	General Partner
		
	By:	 	/s/ George Pavlov
		 	George Pavlov, Managing Member

  

			
	Address for Notice:
	Tallwood Venture Capital
	400 Hamilton Avenue, Suite 230
	Palo Alto, CA 94301
	Facsimile No.: (650) 473-6755
	Telephone No.: (650) 473-6750
	Email Address: finance@tallwoodvc.com
	
	with a copy to (which shall not constitute notice) to:
	
	Latham & Watkins LLP
	140 Scott Drive
	Menlo Park, CA 94025
	Attention:	 	Christopher L. Kaufman
		 	Michelle L. Bushore
	Facsimile No.: (650) 463-2600
	Telephone No.: (650) 328-4600

 INVESTOR SIGNATURE PAGE 
  

 -2-

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