Document:

Security Agreement

 EXHIBIT 10.2 
  
 SECURITY AGREEMENT 
  
 SECURITY AGREEMENT, dated as of November 8, 2005 (this “Agreement”), among Tripath Technology Inc., a Delaware corporation (the
“Company”) and all of the Subsidiaries of the Company organized under the laws of the United States or any state thereof (such subsidiaries, the “Guarantors”) (the Company and Guarantors are collectively referred to
as the “Debtors”) and the holder or holders of the Company’s 6% Senior Secured Convertible Debentures due November 8, 2007 in the original aggregate principal amount of $5,000,000 (the “Debentures”),
signatory hereto, their endorsees, transferees and assigns (collectively referred to as, the “Secured Parties”) and the Agent (as defined below). 
  
 W I T N E S S E T H: 
  
 WHEREAS, pursuant to the Purchase Agreement (as defined in the Debentures), the Secured Parties have severally agreed to extend the loans to the Company
evidenced by the Debentures; and 
  
 WHEREAS, in order to induce
the Secured Parties to extend the loans evidenced by the Debentures, each Debtor has agreed to execute and deliver Agent for the benefit of the Secured Parties this Agreement and to grant the Agent for the benefit of the Secured Parties, pari
passu with each other Secured Party, a perfected security interest in certain property of such Debtor to secure the prompt payment, performance and discharge in full of all of the Company’s obligations under the Debentures. 
  
 NOW, THEREFORE, in consideration of the agreements herein contained and for
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1. Terms used but not
otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”,
“fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”, “investment property”, “letter-of-credit rights”, “proceeds” and “supporting
obligations”) shall have the respective meanings given such terms in Article 9 of the UCC. 
  
 (a) “Collateral” means the following personal property of the Debtors, whether presently owned or existing or hereafter
acquired or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale
or transfer of the Collateral and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities, equity interest or other property at any time and from time 
  

 1 

 to time acquired, receivable or otherwise distributed in respect of, or in exchange for, any or all of
the Pledged Securities (as defined below): 
  
 (i) All goods, including, without limitations, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special and general tools, fixtures, test and quality control devices and other
equipment of every kind and nature and wherever situated, together with all documents of title and documents representing the same, all additions and accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the
foregoing and all other items used and useful in connection with any Debtor’s businesses and all improvements thereto; and (B) all inventory; 
  
 (ii) All contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests,
stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, licenses, distribution and other agreements, computer software (whether “off-the-shelf”, licensed from any third
party or developed by any Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures, grants and rights, goodwill, trademarks, service marks, trade styles, trade names, patents, patent applications,
copyrights, and income tax refunds; 
  
 (iii) All
accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising, goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and
guaranties with respect to each account, including any right of stoppage in transit; 
  
 (iv) All documents, letter-of-credit rights, instruments and chattel paper; 
  
 (v) All commercial tort claims; 
  
 (vi) All deposit accounts and all cash (whether or not deposited in such deposit accounts); 
  
 (vii) All investment property; 
  
 (viii) All supporting obligations; and 
  
 (ix) All files, records, books of account, business papers,
and computer programs; and 
  
 (x) the products
and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above. 
  

 2 

 Without limiting the generality of the foregoing, the “Collateral” shall
include all investment property and general intangibles respecting ownership and/or other equity interests in each Guarantor, including, without limitation, the shares of capital stock and the other equity interests listed on Schedule H
hereto (as the same may be modified from time to time pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests of any other direct or indirect subsidiary of any Debtor obtained in the future, and, in each
case, all certificates representing such shares and/or equity interests and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable or distributed in respect of, or
exchanged for, any of the foregoing (all of the foregoing being referred to herein as the “Pledged Securities”) and all rights arising under or in connection with the Pledged Securities, including, but not limited to, all dividends,
interest and cash. 
  
 Notwithstanding the
foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case
to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid
security interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset. 
  
 Notwithstanding the foregoing, in no event shall the term “Collateral” include (i) any of the
outstanding capital stock of a controlled foreign corporation (as defined in the Internal Revenue Code of 1986, as amended) in excess of 65% of the voting power of all classes of capital stock of such controlled foreign corporation entitled to vote,
(ii) that certain certificate of deposit number 3068235636 issued by Union Bank of California, and all renewals or replacements thereof, during the period that such certificate of deposit serves as collateral pursuant to a Security Agreement
dated March 8, 2004 between borrower and Union Bank of California and (iii) any property subject to a lien that is otherwise permitted by clause (iii) of the definition of Permitted Liens, if the grant of security interest with
respect to such property pursuant to this Agreement would be prohibited by the agreement creating such Permitted Lien or would otherwise constitute a default thereunder, provided, that such property will be deemed “Collateral” hereunder
upon the termination and release of such Permitted Lien. 
  
 (b) “Intellectual Property” means the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign
laws or otherwise, including, without limitation, (i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished,
all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in 
  

 3 

 the United States Copyright Office, (ii) all letters patent of the United States, any other country
or any political subdivision thereof, all reissues and extensions thereof, and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, (iii) all
trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or
hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State
thereof or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under the laws of the United States, any other country or any political subdivision
thereof, (v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes of action for infringement of the foregoing. 
  
 (c) “Majority in Interest” shall mean, at
any time of determination, the majority in interest (based on then-outstanding principal amounts of Debentures at the time of such determination) of the Secured Parties. 
  
 (d) “Necessary Endorsement” shall mean undated stock powers endorsed in blank or other
proper instruments of assignment duly executed and such other instruments or documents as the Agent (as that term is defined below) may reasonably request. 
  
 (e) “Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or
several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of any Debtor to the Secured Parties, including, without limitation, all obligations under this Agreement, the Debentures, the Guaranty and any
other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or
unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent
all or any part of such payment is avoided or recovered directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from
time to time. Without limiting the generality of the foregoing, the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Debentures and the loans extended pursuant thereto; (ii) any and all
other fees, indemnities, costs, obligations and liabilities of the Debtors from time to time under or in connection with this Agreement, the Debentures, the Guaranty and any other instruments, agreements or other documents executed and/or delivered
in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or
not allowable due 
  

 4 

 to the existence of a bankruptcy, reorganization or similar proceeding involving any Debtor.
Notwithstanding anything contained in this Agreement, the term “Obligations” shall not include any of Debtor’s rights or obligations under any warrants issued in connection with the Debentures. 
  
 (f) “Organizational Documents” means
with respect to any Debtor, the documents by which such Debtor was organized (such as a certificate of incorporation, certificate of limited partnership or articles of organization, and including, without limitation, any certificates of designation
for preferred stock or other forms of preferred equity) and which relate to the internal governance of such Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members agreement). 
  
 (g) “Permitted Liens” means (i) liens
for taxes, assessments and other governmental charges or levies not yet due or liens for taxes, assessments and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the
good faith judgment of the management of the applicable Debtor) have been established in accordance with GAAP, (ii) Liens imposed by law which were incurred in the ordinary course of business, such as carriers’, warehousemen’s and
mechanics’ liens, statutory landlords’ liens, and other similar liens arising in the ordinary course of business, and (x) which do not individually or in the aggregate materially detract from the value of such property or assets or
materially impair the use thereof in the operation of the business of the applicable Debtor and its consolidated subsidiaries or (y) which are being contested in good faith by appropriate proceedings, which proceedings have the effect of
preventing the forfeiture or sale of the property or asset subject to such lien, (iii) liens incurred in connection with Permitted Indebtedness (as defined in the Debentures) under clause (iv) thereunder, provided that such Liens are not
secured by assets of the applicable Debtor or its Subsidiaries other than the assets so acquired or leased (and any accessions, attachments, additions, or improvements thereto and replacements thereof), (iv) liens in favor of Agent and Secured
Parties in connection with the transactions contemplated by this Agreement, (v) liens existing as of the date hereof, and any renewals, refinancing or extensions thereof, to the extent permitted by Agent in writing, including, without
limitation, liens in favor of Bridge Bank, N.A (subject to Debtor’s agreement with Secured Parties with respect thereto), (vi) other liens subordinated to liens in favor of Agent and the Secured Parties on terms and conditions acceptable
to the Agent, (vii) leases or subleases or licenses or sublicenses granted in the ordinary course of Debtors’ business, (vii) leases or subleases or licenses or sublicenses granted in the ordinary course of Debtors’ business,
(viii) statutory, common law or liens of depository institutions or institutions holding securities accounts (including rights of set-off), (ix) liens on insurance proceeds in favor of insurance companies granted solely as security for
financed premiums, (x) liens incurred in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of social security, and (xi) purported liens evidenced by the filing of
precautionary UCC financing statements relating solely to operating leases of personal property entered into in the ordinary course of business. 
  

 5 

 (g) “UCC” means the Uniform Commercial Code of the State of New
York and or any other applicable law of any state or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time. It is the intent of the parties that defined terms in the UCC should be
construed in their broadest sense so that the term “Collateral” will be construed in its broadest sense. Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions, they are incorporated
herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones shall be controlling. 
  
 2. Grant of Perfected First Priority Security Interest. As an inducement for the Secured Parties to extend the loans as evidenced by the Debentures
and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, each Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Agent for the benefit of the
Secured Parties a continuing security interest in and to and a lien upon all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (the “Security Interest”). 
  
 3. Delivery of Certain Collateral. At the request of the Agent and
only after the termination of any Permitted Lien that is senior in priority to the Security Interest of Agent in each of the following, each Debtor shall deliver or cause to be delivered to the Agent (a) any and all certificates and other
instruments representing or evidencing the Pledged Securities, and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together with all Necessary Endorsements. 
  
 4. Representations, Warranties, Covenants and Agreements of the
Debtors. Each Debtor represents and warrants to, and covenants and agrees with, the Secured Parties as follows: 
  
 (a) Each Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this
Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by each Debtor of this Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of such
Debtor and no further action is required by such Debtor. This Agreement has been duly executed by each Debtor. This Agreement constitutes the legal, valid and binding obligation of each Debtor, enforceable against each Debtor in accordance with its
terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies of creditors and by general principles of equity.

  
 (b) The Debtors have no place of business or
offices where their respective books of account and records are kept (other than temporarily at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule A attached hereto.
Except as specifically set forth on Schedule A, each Debtor is the record owner of the real property where such Collateral is located, and there exist no mortgages or other liens on any such real property except for Permitted Liens (as
defined in the Debentures). Except as disclosed on Schedule A, none of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor. 
  

 6 

 (c) Except for Permitted Liens and except as set forth on Schedule B attached
hereto, the Debtors are the sole owner of, or have the right to use, the Collateral (except for non-exclusive licenses granted by any Debtor in the ordinary course of business), free and clear of any liens, security interests, encumbrances, rights
or claims, and are fully authorized to grant the Security Interest. Except for Permitted Liens, there is not on file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement,
license or transfer or any notice of any of the foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering or affecting any of the Collateral. Except with respect to Permitted Liens, so long
as this Agreement shall be in effect, the Debtors shall not execute and shall not knowingly permit to be on file in any such office or agency any such financing statement or other document or instrument (except to the extent filed or recorded in
favor of the Secured Parties pursuant to the terms of this Agreement). 
  
 (d) Except as disclosed in the Company’s filings with the Securities and Exchange Commission, no written claim has been received that any Collateral or Debtor’s use of any Collateral violates the rights of
any third party. There has been no adverse decision to any Debtor’s claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to any Debtor’s right to keep and maintain such Collateral in full force and
effect, and there is no proceeding involving said rights pending or, to the best knowledge of any Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator or other governmental authority. 
  
 (e) Each Debtor shall at all times maintain its books of
account and records relating to the Collateral at its principal place of business and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account and records or tangible Collateral unless
it delivers to the Secured Parties at least 30 days prior to such relocation (i) written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate financing
statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken to perfect the Security Interest to create in favor of the Secured Parties a valid, perfected and continuing perfected first priority
lien in the Collateral, subject only to Permitted Liens and the security interest of Bridge Bank, N.A. in all assets of the Company pursuant to the Company’s Business Financing Agreement (the “AR Agreement”). The Company hereby
represents that no amounts are currently drawn or owed under the AR Agreement. Further, so long as the Debentures are outstanding, without the prior written consent of the Agent, the Company agrees that it will not draw any funds under the AR
Agreement. 
  
 (f) This Agreement creates in
favor of the Agent for the benefit of the Secured Parties a valid, security interest in the Collateral, subject only to Permitted Liens securing the payment and performance of the Obligations. Upon making the filings described in the immediately
following paragraph, all security interests created hereunder 
  

 7 

 in any Collateral which may be perfected by filing Uniform Commercial Code financing statements shall
have been duly perfected. Without limiting the generality of the foregoing, except for the filing of said financing statements, the recordation of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account
control agreements and subject to the terms and conditions of any subordination agreement or other similar agreement with Bridge Bank, N.A., if any, no consent of any third parties and no authorization, approval or other action by, and no notice to
or filing with, any governmental authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation of the Security Interests created hereunder in the Collateral or (iii) the
enforcement of the rights of the Agent on behalf of the Secured Parties hereunder. 
  
 (g) Each Debtor hereby authorizes the Agent on behalf of the Secured Parties, or any of them, to file one or more financing statements
under the UCC, with respect to the Security Interest with the proper filing and recording agencies in any jurisdiction deemed proper by them. 
  
 (h) The execution, delivery and performance of this Agreement by the Debtors does not (i) violate any of the provisions of any
Organizational Documents of any Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law, rule or regulation applicable to any Debtor or (ii) conflict with, or constitute a default (or
an event that 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 (with or without notice, lapse of time or both) of, any agreement, credit
facility, debt or other instrument (evidencing any Debtor’s debt or otherwise) or other understanding to which any Debtor is a party or by which any property or asset of any Debtor is bound or affected. No consent (including, without
limitation, from stockholders or creditors of any Debtor) is required for any Debtor to enter into and perform its obligations hereunder. 
  
 (i) The capital stock and other equity interests listed on Schedule H hereto represent all of the capital stock and other equity
interests of the Guarantors, and represent all capital stock and other equity interests owned, directly or indirectly, by the Company. All of the Pledged Securities are validly issued, fully paid and nonassessable, and the Company is the legal and
beneficial owner of the Pledged Securities, free and clear of any lien, security interest or other encumbrance except for the security interests created by this Agreement and other Permitted Liens. 
  
 (j) [RESERVED]. 
  
 (k) Each Debtor shall at all times maintain the liens and
Security Interest provided for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated pursuant to
Section 11 hereof. Each Debtor hereby agrees to defend the same against the claims of any and all persons and entities. Each Debtor shall safeguard and protect all Collateral for the account of the Secured Parties. 
  

 8 

 At the request of the Secured Parties, each Debtor will sign and deliver to the Secured Parties at any
time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory to the Secured Parties and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Secured
Parties to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing, each Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the
Security Interest hereunder, and each Debtor shall obtain and furnish to the Secured Parties from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the Security
Interest hereunder. 
  
 (l) No Debtor will
transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for (i) non-exclusive licenses granted by a Debtor in its ordinary course of business, (ii) sales of inventory by a Debtor in its
ordinary course of business, (iii) sales, transfers or dispositions of surplus, worn-out or obsolete equipment, (iv) leases or subleases granted in the ordinary course of business, (v) nonexclusive licenses of intellectual property or
know-how granted in the ordinary course of business, (vi) other sales, transfers, conveyances or dispositions of property with an aggregate book value not to exceed $50,000 in any year, (vii) the granting of Permitted Liens,
(viii) payments and transfers consistent with a Debtor’s practices in the ordinary course of business not otherwise prohibited by this Agreement to the extent such payments and transfers do not create or with the passage of time would
create an Event of Default; (ix) the surrender or waiver of litigation rights or settlement, release or surrender of tort or other litigation claims of any kind except for any claim or claims asserted by Borrower having a book value
individually or in the aggregate of $250,000 in any fiscal year and (x) loans, advances or contributions to subsidiaries of a Debtor to fund the operations of such subsidiaries) without the prior written consent of the Agent. 
  
 (m) Each Debtor shall keep and preserve its equipment,
inventory and other tangible Collateral in good condition, repair and order (ordinary wear and tear excepted) and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

  
 (n) Each Debtor shall maintain with
financially sound and reputable insurers, insurance with respect to the Collateral against loss or damage of the kinds and in the amounts customarily insured against by entities of established reputation having similar properties similarly situated
and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement cost thereof. Each
Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy to certify to the Agent that (a) the Agent will be named as lender loss payee and additional insured under each such
insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent for at least
thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage under 
  

 9 

 the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any
default in the payment of premiums within thirty (30) days of notice from the insurer of such default. If no Event of Default (as defined in the Debenture) exists, loss payments in each instance will be applied by the applicable Debtor to the
repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the applicable Debtor,
provided, however, that payments received by any Debtor after an Event of Default occurs and is continuing shall be paid to the Agent and, if received by such Debtor, shall be held in trust for and immediately paid over to the Agent unless otherwise
directed in writing by the Agent. Copies of such policies or the related certificates, in each case, naming the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and at the time any new policy of
insurance is issued. 
  
 (o) Each Debtor shall,
within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of the occurrence of any event which would have a material adverse effect on the value of the Collateral or on the Secured
Parties’ security interest therein. 
  
 (p)
Each Debtor shall promptly execute and deliver to the Secured Parties such further deeds, mortgages, collateral assignments, security agreements, financing statements or other instruments, documents, certificates and assurances and take such further
action as the Secured Parties may from time to time request and may in its sole discretion deem necessary to perfect, protect or enforce its security interest in the Collateral including, without limitation, if applicable, the execution and delivery
of a separate security agreement with respect to each Debtor’s Intellectual Property (“Intellectual Property Security Agreement”) in which the Secured Parties have been granted a security interest hereunder, substantially in a
form acceptable to the Secured Parties, which Intellectual Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions hereof. 
  
 (q) Each Debtor shall permit the Secured Parties and their representatives and agents to inspect the
Collateral at reasonable times during business hours from time to time, and to make copies of records pertaining to the Collateral as may be requested by a Secured Party from time to time. 
  
 (r) Each Debtor shall take all steps reasonably necessary to
diligently pursue and seek to preserve, enforce and collect any rights, claims, causes of action and accounts receivable in respect of the Collateral. 
  
 (s) Each Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment,
execution or other legal process levied against any material portion of the Collateral and of any other information received by such Debtor that may materially affect the value of the Collateral, the Security Interest or the rights and remedies of
the Secured Parties hereunder. 
  

 10 

 (t) All information heretofore, herein or hereafter supplied to the Secured Parties by or
on behalf of any Debtor with respect to the Collateral is accurate and complete in all material respects as of the date furnished. 
  
 (u) The Debtors shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any
rights and franchises material to its business. 
  
 (v) No Debtor will change its name, type of organization, jurisdiction of organization, organizational identification number (if it has one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at
least 30 days prior written notice to the Secured Parties of such change and, at the time of such written notification, such Debtor provides any financing statements or fixture filings necessary to perfect and continue perfected the perfected
security Interest granted and evidenced by this Agreement. 
  
 (w) No Debtor may consign any of its Inventory without the consent of a Majority in Interest which shall not be unreasonably withheld, except to the extent such consignment or sale does not exceed 15% of the
total value of all of the Company’s finished goods in Inventory. No Debtor may sell any of its Inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale, except as currently conducted in the ordinary
course of business in connection with its distribution arrangements. 
  
 (x) No Debtor may relocate its chief executive office to a new location without providing 30 days prior written notification thereof to the Secured Parties and so long as, at the time of such written notification,
such Debtor provides any financing statements or fixture filings necessary to perfect and continue perfected the perfected security Interest granted and evidenced by this Agreement. 
  
 (y) Each Debtor was organized and remains organized solely under the laws of the state set forth next to
such Debtor’s name in the first paragraph of this Agreement. Schedule D attached hereto sets forth each Debtor’s organizational identification number or, if any Debtor does not have one, states that one does not exist. 

 
 (z) (i) The actual name of each Debtor is the name
set forth in the preamble above; (ii) no Debtor has any trade names except as set forth on Schedule E attached hereto; (iii) no Debtor has used any name other than that stated in the preamble hereto or as set forth on Schedule
E for the preceding five years; and (iv) no entity has merged into any Debtor or been acquired by any Debtor within the past five years except as set forth on Schedule E. 
  
 (aa) At the request of the Agent and only after the termination of any Permitted Lien that is senior in
priority to the Security Interest of Agent in any Collateral consists of instruments, certificated securities or other items that require or permit possession by the secured party to perfect the security interest created hereby, the applicable
Debtor shall deliver such Collateral to the Agent. 
  

 11 

 (bb) Each Debtor to the extent that its capital stock constitutes Collateral hereunder,
in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding such capital stock consistent with the terms of this Agreement without the further consent of any Debtor as contemplated by
Section 8-106 (or any successor section) of the UCC. Further, each Debtor agrees that it shall not enter into a similar agreement (or one that would confer “control” within the meaning of Article 8 of the UCC) with any other person or
entity, except with respect to Permitted Liens. 
  
 (cc) Each Debtor shall cause all tangible chattel paper constituting Collateral, in which such Debtor is a lessor, to be delivered to the Agent, or, if such delivery is not possible, then to cause such tangible chattel paper to contain a
legend noting that it is subject to the security interest created by this Agreement. To the extent that any Collateral consists of electronic chattel paper, in which such Debtor is a lessor, the applicable Debtor shall cause the underlying chattel
paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto). 
  
 (dd) If there is any investment property or deposit account included as Collateral that can be perfected by “control” through an
account control agreement, the applicable Debtor shall cause such an account control agreement, in form and substance in each case satisfactory to the Secured Parties, to be entered into and delivered to the Secured Parties within 30 days of the
date of this Agreement or within 30 days of the creation of Debtor’s rights in such investment property or deposit account, whichever is later with respect to such investment property or deposit account. Notwithstanding the foregoing, this
paragraph (dd) shall only apply to investment property or deposit accounts located in the United States, but if any deposit account or investment property located outside the United States may be perfected by equivalent means, then the Debtor shall
execute such documentation as may be required in the applicable jurisdiction. 
  
 (ee) To the extent that any Collateral consists of letter-of-credit rights, the applicable Debtor shall cause the issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the
Secured Parties. 
  
 (ff) To the extent that any
material Collateral is in the possession of any third party, at the request of Agent, the applicable Debtor shall join with the Agent in notifying such third party of the Agent’s security interest in such Collateral and shall use its
commercially reasonable efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance satisfactory to the Agent. 
  
 (gg) If any Debtor shall at any time hold or acquire a commercial tort claim, such Debtor shall promptly
notify the Secured Parties in a writing signed by such Debtor of the particulars thereof and grant to the Secured Parties in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such
writing to be in form and substance satisfactory to the Secured Parties. 
  

 12 

 (hh) Each Debtor shall immediately provide written notice to the Secured Parties of any
and all accounts which arise out of contracts with any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interest in such accounts and proceeds thereof, shall execute and deliver to the
Secured Parties an assignment of claims for such accounts and cooperate with the Secured Parties in taking any other steps required, in their judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute or rule
to perfect or continue the perfected status of the Security Interest in such accounts and proceeds thereof. 
  
 (ii) Each Debtor shall cause each subsidiary of such Debtor organized in the United States or any state thereof to immediately become a
party hereto (an “Additional Debtor”), by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply with the provisions hereof applicable to the Debtors. Concurrent
therewith, the Additional Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall supersede, or supplements shall modify, the
Schedules then in effect. The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements and other information and
documentation as the Secured Parties may reasonably request. Upon delivery of the foregoing to the Secured Parties, the Additional Debtor shall be and become a party to this Agreement with the same rights and obligations as the Debtors, for all
purposes hereof as fully and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date of execution and delivery of such Additional
Debtor Joinder, and all references herein to the “Debtors” shall be deemed to include each Additional Debtor. 
  
 (jj) Each Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Debentures.

  
 (kk) Each Debtor shall register the pledge of
any uncertificated Pledged Securities on the books of such Debtor. Each Debtor shall notify each issuer of uncertificated Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties on the books
of such issuer. Further, except with respect to certificated securities delivered to the Agent (or to be delivered to the Agent pursuant to the terms hereof), the applicable Debtor shall deliver to Agent an acknowledgement of pledge (which, where
appropriate, shall comply with the requirements of the relevant UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement shall confirm that: (a) it has registered the
pledge on its books and records; and (b) at any time directed by Agent during the continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of any designee of Agent, will take
such steps as may be necessary to effect the transfer, and will comply with all other instructions of Agent regarding such Pledged Securities without the further consent of the applicable Debtor. 
  

 13 

 (ll) In the event that, upon an occurrence and during the continuance of an Event of
Default, Agent shall sell all or any of the Pledged Securities to another party or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities, each Debtor shall, to the extent
applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness, books of
account, financial records and all other Organizational Documents and records of the Debtors and their direct and indirect subsidiaries; (ii) use its commercially reasonable efforts to obtain resignations of the persons then serving as officers
and directors of the Debtors and their direct and indirect subsidiaries, if so requested; and (iii) use its commercially reasonable efforts to obtain any approvals that are required by any governmental or regulatory body in order to permit the
sale of the Pledged Securities to the Transferee or the purchase or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the business of the Debtors and their direct and indirect subsidiaries. 
  
 (mm) Without limiting the generality of the other
obligations of the Debtors hereunder, at the request of Agent, each Debtor shall promptly (i) cause the security interest contemplated hereby with respect to all Intellectual Property registered at the United States Copyright Office or United
States Patent and Trademark Office to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires or creates any additional material Intellectual Property. 
  
 (nn) Each Debtor will from time to time, at the joint and
several expense of the Debtors, promptly execute and deliver all such further instruments and documents, and take all such further action as may be necessary or desirable, or as the Secured Parties may reasonably request, in order to perfect and
protect any security interest granted or purported to be granted hereby or to enable the Secured Parties to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this
Agreement. 
  
 (oo) Schedule F attached
hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights, and domain names owned by any of the Debtors as of the date hereof. Schedule F lists all material licenses in favor of any Debtor
for the use of any patents, trademarks, copyrights and domain names as of the date hereof. All material patents and trademarks of the Debtors have applied for registration or have been registered at the United States Patent and Trademark Office.

  
 (pp) Except as set forth on Schedule G
attached hereto, none of the account debtors or other persons or entities obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local statute or rule in
respect of such Collateral. 
  

 14 

 5. Effect of Pledge on Certain Rights. If any of the Collateral subject to this Agreement
consists of nonvoting equity or ownership interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests upon the occurrence of certain events (including, without limitation, upon
the transfer of all or any of the other stock or assets of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement of any of Agent’s rights hereunder shall not be deemed to
be the type of event which would trigger such conversion rights notwithstanding any provisions in the Organizational Documents or agreements to which any Debtor is subject or to which any Debtor is party. 
  
 6. Defaults. The following events shall be “Events of
Default”: 
  
 (a) The occurrence of an
Event of Default (as defined in the Debenture) under the Debenture; 
  
 (b) Any representation or warranty of any Debtor in this Agreement shall prove to have been incorrect in any material respect when made; 
  
 (c) The failure by any Debtor to observe or perform any of its obligations hereunder for five (5) days
after delivery to such Debtor of notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame and such Debtor is using best efforts to cure same in a timely fashion; or

  
 (d) If any provision of this Agreement shall
at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by any Debtor, or a proceeding shall be commenced by any Debtor, or by any governmental authority having jurisdiction over any
Debtor, seeking to establish the invalidity or unenforceability thereof, or any Debtor shall deny that any Debtor has any liability or obligation purported to be created under this Agreement. 
  
 7. Duty To Hold In Trust. 
  
 (a) Upon the occurrence and during the continuance of any
Event of Default and at any time thereafter, each Debtor shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interest, whether payable pursuant to the Debentures or otherwise, or of any check, draft,
note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata
in proportion to their initial purchases of Debentures for application to the satisfaction of the Obligations (and if any Debenture is not outstanding, pro-rata in proportion to the initial purchases of the remaining Debentures). 
  
 (b) At all times after the termination of any Permitted Lien
that is senior in priority to the Security Interest with respect to the Pledged Securities, if any Debtor shall become entitled to receive or shall receive any securities or other property (including, 
  

 15 

 without limitation, shares of Pledged Securities or instruments representing Pledged Securities acquired
after the date hereof, or any options, warrants, rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization, reclassification or increase or reduction of capital, or issued
in connection with any reorganization of such Debtor or any of its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in exchange for, such Pledged Securities or otherwise), such
Debtor agrees to (i) accept the same as the agent of the Secured Parties; (ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates or instruments evidencing the
same to Agent on or before the close of business on the fifth business day following the receipt thereof by such Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the terms of this Agreement
as Collateral. 
  
 8. Rights and Remedies Upon Default.

  
 (a) Upon the occurrence of any Event of
Default and at any time during the continuance thereafter, Agent, on behalf of the Secured Parties, shall have the right to exercise all of the remedies conferred hereunder. The Agent, on behalf of the Secured Parties, shall have all the rights and
remedies of a secured party under the UCC. Without limitation, the Agent, on behalf of the Secured Parties, shall have the following rights and powers: 
  
 (i) The Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any
person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and each Debtor shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at
such Debtor’s premises or elsewhere, and make available to the Agent, without rent, all of such Debtor’s respective premises and facilities for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable
or disposable form. 
  
 (ii) Upon notice to the
Debtors by Agent, all rights of each Debtor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of each Debtor to receive the dividends and interest which it would otherwise be
authorized to receive and retain, shall cease. Upon such notice, Agent shall have the right to receive any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s discretion all
voting rights pertaining thereto. Without limiting the generality of the foregoing, Agent shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owners thereof, including,
without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or any
Debtor or any of its direct or indirect subsidiaries. 
  

 16 

 (iii) The Agent, for the benefit of the Secured Parties, shall have the right to operate
the business of each Debtor using the Collateral and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions
or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all without (except as
shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to any Debtor or right of redemption of a Debtor, which are hereby expressly waived. Upon each such sale, lease, assignment or other transfer of
Collateral, the Secured Parties may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of any Debtor,
which are hereby waived and released. 
  
 (iv)
The Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts to make payments directly to the Agent and to enforce the Debtors’ rights against such account debtors and
obligors. 
  
 (v) The Agent may (but are not
obligated to) direct any financial intermediary or any other person or entity holding any investment property to transfer the same to the Agent or their designee. 
  
 (vi) The Agent may (but are not obligated to) transfer any or all Intellectual Property registered in the
name of any Debtor at the United States Patent and Trademark Office and/or Copyright Office into the name of the Agent or any designee or any purchaser of any Collateral. 
  
 (b) The Agent may comply with any applicable law in connection with a disposition of Collateral and such
compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral. The Agent may sell the Collateral without giving any warranties and may specifically disclaim such warranties. If the Agent sells any
of the Collateral on credit, the Debtors will only be credited with payments actually made by the purchaser. In addition, each Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of the
Agent’s rights and remedies hereunder, including, without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect thereto. 
  
 (c) For the purpose of enabling the Agent to further
exercise rights and remedies under this Section 8 or elsewhere provided by agreement or applicable law, each Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable, nonexclusive license
(exercisable without payment of royalty or other compensation to such Debtor) to use, license or sublicense during the existence an Event of Default, any Intellectual Property now owned or hereafter acquired by such 
  

 17 

 Debtor, and wherever the same may be located, and including in such license access to all media in which
any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. 
  
 9. Applications of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder shall be applied first, to the
expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in connection therewith) of the Collateral, to the reasonable attorneys’
fees and expenses incurred by the Agent in enforcing their rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations pro rata among the Secured Parties (based on
then-outstanding principal amounts of Debentures at the time of any such determination), and to the payment of any other amounts required by applicable law, after which the Secured Parties shall pay to the applicable Debtor any surplus proceeds. If,
upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the Debtors will be liable for the deficiency, together with interest thereon,
at the rate of 10% per annum or the lesser amount permitted by applicable law (the “Default Rate”), and the reasonable fees of one counsel employed by the Secured Parties to collect such deficiency. To the extent permitted by
applicable law, each Debtor waives all claims, damages and demands against the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the
Secured Parties as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. 
  
 10. Securities Law Provision. Each Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part of the
Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales to
a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for investment and not with a view to the distribution or resale thereof. Each Debtor agrees that sales so made may be at prices
and on terms less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the
public under the Securities Laws. Each Debtor shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws (including, without limitation, registration thereunder if requested by Agent) applicable to the sale of
the Pledged Securities by Agent. 
  
 11. Costs and
Expenses. Each Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation
statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Secured Parties. The Debtors shall also pay all other claims and charges which in the reasonable opinion of the
Secured Parties might prejudice, imperil or otherwise affect the Collateral or the Security Interest therein. The Debtors will also, upon demand, pay to the Secured Parties the amount of any and all reasonable expenses, including the reasonable fees
and expenses of one counsel and of any experts and agents, which the Secured Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or 
  

 18 

 preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, or (iii) the
exercise or enforcement of any of the rights of the Secured Parties under the Debentures. Until so paid, any fees payable hereunder shall be added to the principal amount of the Debentures and shall bear interest at the Default Rate. 
  
 12. Responsibility for Collateral. The Debtors assume all liabilities
and responsibility in connection with all Collateral, and the Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability for any reason. Without limiting
the generality of the foregoing, (a) neither the Agent nor any Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating to the
Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) each Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed
by such Debtor thereunder. Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any
payment relating to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations of any Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or
sufficiency of any payment received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to
enforce any performance or to collect the payment of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled at any time or times. 
  
 13. Security Interest Absolute. To the extent permitted by law, all rights of the Secured Parties and all obligations
of the Debtors hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Debentures or any agreement entered into in connection with the foregoing, or any portion hereof
or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Debentures or any other
agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guaranty, or
any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or
(e) any other circumstance which might otherwise constitute any legal or equitable defense available to a Debtor, or a discharge of all or any part of the Security Interest granted hereby. Until the Obligations (other than inchoate indemnity
obligations) shall have been paid and performed in full, the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy. Each
Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be
deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of 
  

 19 

 the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then, in any such
event, each Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding
obligation enforceable in accordance with the terms and provisions hereof. Each Debtor waives all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral which the Secured Parties may hold at any
time, or to marshal assets, or to pursue any other remedy. Each Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby. 
  
 14. Term of Agreement. This Agreement and the Security Interest
shall terminate on the date on which all payments under the Debentures have been indefeasibly paid in full and all other Obligations (other than inchoate indemnity obligations) have been paid or discharged; provided, however, that all indemnities of
the Debtors contained in this Agreement (including, without limitation, Annex B hereto) shall survive and remain operative and in full force and effect regardless of the termination of this Agreement. 
  
 15. Power of Attorney; Further Assurances. 
  
 (a) Each Debtor authorizes the Agent, and does hereby make,
constitute and appoint the Agent and their respective officers, agents, successors or assigns with full power of substitution, as such Debtor’s true and lawful attorney-in-fact, with power, in the name of the various Secured Parties or such
Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts, money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance)
in respect of the Collateral that may come into possession of the Secured Parties; (ii) to sign and endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts,
drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied or
placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual Property or provide licenses respecting any
Intellectual Property; and (vi) generally, at the option of the Secured Parties, and at the expense of the Debtors, at any time, or from time to time, to execute and deliver any and all documents and instruments and to do all acts and things
which the Secured Parties deem necessary to protect, preserve and realize upon the Collateral and the Security Interest granted therein in order to effect the intent of this Agreement and the Debentures all as fully and effectually as the Debtors
might or could do; and each Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and
thereafter as long as any of the Obligations (other than inchoate indemnity obligations) shall be outstanding. The designation set forth herein shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or
other documents or agreements to which any Debtor is subject or to which any Debtor is a party. Without 
  

 20 

 limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of
Default, each Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with the United States Patent and
Trademark Office and the United States Copyright Office. 
  
 (b) On a continuing basis, each Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing and recording agencies in any jurisdiction, including, without limitation,
the jurisdictions indicated on Schedule C attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by the Secured Parties, to perfect the Security Interest
granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to the Secured Parties the grant or perfection of a perfected security interest in all the Collateral under the UCC. 

 
 (c) Each Debtor hereby irrevocably appoints the Agent as
such Debtor’s attorney-in-fact, with full authority in the place and instead of such Debtor and in the name of such Debtor, from time to time in the Agent’s discretion, to take any action and to execute any instrument which the Secured
Parties may deem necessary or advisable to perfect the security interests granted pursuant to the terms of this Agreement, including the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto,
relative to any of the Collateral without the signature of such Debtor where permitted by law, which financing statements may (but need not) describe the Collateral as “all assets” or “all personal property” or words of like
import, and ratifies all such actions taken by the Agent. This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations (other than inchoate indemnity
obligations) shall be outstanding. 
  
 16. Notices. All
notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement (as such term is defined in the Debentures). 
  
 17. Other Security. To the extent that the Obligations are now or hereafter secured by property other than the
Collateral or by the guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Secured Parties shall have the right, in its sole discretion, to pursue, relinquish, subordinate, modify or take any other
action with respect thereto, without in any way modifying or affecting any of the Secured Parties’ rights and remedies hereunder. 
  
 18. Appointment of Agent. The Secured Parties hereby appoint Enable Growth Partners, LP to act as their agent (“Enable” or
“Agent”) for purposes of exercising any and all rights and remedies of the Secured Parties hereunder. Such appointment shall continue until revoked in writing by a Majority in Interest, at which time a Majority in Interest shall
appoint a new Agent; provided, that Enable may not be removed as Agent unless Enable and its Affiliates shall then hold less than $250,000 principal amount of Debentures; provided further that such removal may occur only if each of the other Secured
Parties shall then hold not less than $100,000 principal amount of Debentures. The Agent shall have the rights, responsibilities and immunities set forth in Annex B hereto. 
  

 21 

 19. Miscellaneous. 
  
 (a) No course of dealing between the Debtors and the Secured Parties, nor any failure to exercise, nor any
delay in exercising, on the part of the Secured Parties, any right, power or privilege hereunder or under the Debentures shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or
thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  
 (b) All of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Debentures
or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently. 
  
 (c) This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and is intended to supersede
all prior negotiations, understandings and agreements with respect thereto. Except as specifically set forth in this Agreement, no provision of this Agreement may be modified or amended except by a written agreement specifically referring to this
Agreement and signed by the parties hereto. 
  
 (d) In the event any provision of this Agreement is held to be invalid, prohibited or unenforceable in any jurisdiction for any reason, unless such provision is narrowed by judicial construction, this Agreement shall, as to such
jurisdiction, be construed as if such invalid, prohibited or unenforceable provision had been more narrowly drawn so as not to be invalid, prohibited or unenforceable. If, notwithstanding the foregoing, any provision of this Agreement is held to be
invalid, prohibited or unenforceable in any jurisdiction, such provision, as to such jurisdiction, shall be ineffective to the extent of such invalidity, prohibition or unenforceability without invalidating the remaining portion of such provision or
the other provisions of this Agreement and without affecting the validity or enforceability of such provision or the other provisions of this Agreement in any other jurisdiction. 
  
 (e) No waiver of any breach or default or any right under this Agreement shall be considered valid unless in
writing and signed by the party giving such waiver, and no such waiver shall be deemed a waiver of any subsequent breach or default or right, whether of the same or similar nature or otherwise. 
  
 (f) This Agreement shall be binding upon and inure to the
benefit of each party hereto and its successors and assigns. 
  

 22 

 (g) Each party shall take such further action and execute and deliver such further
documents as may be necessary or appropriate in order to carry out the provisions and purposes of this Agreement. 
  
 (h) All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each Debtor agrees that all proceedings concerning the interpretations, enforcement and defense of
the transactions contemplated by this Agreement and the Debentures (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the
state and federal courts sitting in the City of New York, Borough of Manhattan. Each Debtor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the
adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such proceeding is improper. Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or
certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence a proceeding to enforce any provisions of this Agreement, then the prevailing party in such proceeding
shall be reimbursed by the other party for its reasonable attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such proceeding. 
  
 (i) This Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall
create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. 
  
 (j) All Debtors shall jointly and severally be liable for
the obligations of each Debtor to the Secured Parties hereunder. 
  
 (k) Each Debtor shall indemnify, reimburse and hold harmless the Secured Parties and their respective partners, members, shareholders, officers, directors, employees and agents (collectively,
“Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, 
  

 23 

 (including fees relating to the cost of investigating and defending any of the foregoing) imposed on,
incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result
from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision of a court of competent jurisdiction. This indemnification provision is in addition to, and not in limitation of, any other
indemnification provision in the Debentures, the Purchase Agreement (as such term is defined in the Debentures) or any other agreement, instrument or other document executed or delivered in connection herewith or therewith. 
  
 (l) Nothing in this Agreement shall be construed to subject
Agent or any Secured Party to liability as a partner in any Debtor or any if its direct or indirect subsidiaries that is a partnership or as a member in any Debtor or any of its direct or indirect subsidiaries that is a limited liability company,
nor shall Agent or any Secured Party be deemed to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any such Debtor or any if its direct or indirect subsidiaries or otherwise,
unless and until any such Secured Party exercises its right to be substituted for such Debtor as a partner or member, as applicable, pursuant hereto. 
  
 [SIGNATURE PAGES FOLLOW] 
  

 24 

 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day
and year first above written. 
  

			
	TRIPATH TECHNOLOGY INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 

  
 [SIGNATURE PAGE OF
HOLDERS FOLLOWS] 
  

 25 

 [SIGNATURE PAGE OF HOLDERS TO TRPH SA] 
  
 Name of Investing Entity:
                                        
                             
  
 Signature of Authorized Signatory of Investing entity:
                                        
             
  
 Name of Authorized Signatory:
                                        
                         
  
 Title of Authorized Signatory:
                                        
                           
  

[SIGNATURE PAGE OF HOLDERS FOLLOWS] 
  

 26 

 [SIGNATURE PAGE OF AGENT TO TRPH SA] 
  
 Name of Investing Entity: Enable Growth Partners, LP, as Agent 
  
 Signature of Authorized Signatory of Investing
entity:
                                        
                     
  
 Name of Authorized Signatory:
                                        
                         
  
 Title of Authorized Signatory:
                                        
                             
  

 27 

 ANNEX A 
 to 
 SECURITY 
 AGREEMENT 
  
 FORM OF
ADDITIONAL DEBTOR JOINDER 
  
 Security Agreement dated as of
November 8, 2005 made by 
 Tripath Technology Inc. 
 and its subsidiaries party thereto from time to time, as Debtors 
 to and in favor of 
 the Secured Parties identified therein (the “Security Agreement”) 
  
 Reference is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein
shall have the meanings given to such terms in, or by reference in, the Security Agreement. 
  
 The undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned shall (a) be an Additional Debtor under the Security Agreement,
(b) have all the rights and obligations of the Debtors under the Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to have made the representations and warranties
set forth in Section 4 therein as of the date of execution and delivery of this Additional Debtor Joinder. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY INTEREST IN THE
COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN. 
  
 Attached hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable. 
  
 An executed copy of this Joinder shall be delivered to the Secured Parties,
and the Secured Parties may rely on the matters set forth herein on or after the date hereof. This Joinder shall not be modified, amended or terminated without the prior written consent of the Secured Parties. 

 IN WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of
the undersigned. 
  

			
	[Name of Additional Debtor]
		
	By:	 	 
		
	Name:	 	 
	Title:	 	 
		
	Address:	 	 

  
 Dated: 
  
  

 ANNEX B 
 to 
 SECURITY 
 AGREEMENT 
  
 THE AGENT

  
 1. Appointment. The Secured Parties (all
capitalized terms used herein and not otherwise defined shall have the respective meanings provided in the Security Agreement to which this Annex B is attached (the “Agreement”)), by their acceptance of the benefits of the
Agreement, hereby designate Enable Growth Partners, LP (“Enable” or “Agent”) as the Agent to act as specified herein and in the Agreement. Each Secured Party shall be deemed irrevocably to authorize the Agent to
take such action on its behalf under the provisions of the Agreement and any other Transaction Document (as such term is defined in the Debentures) and to exercise such powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto. The Agent may perform any of its duties hereunder by or through its agents or employees. 
  
 2. Nature of Duties. The Agent shall have no duties or
responsibilities except those expressly set forth in the Agreement. Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for any action taken or omitted by it as such under the
Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful conduct as
determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction. The duties of the Agent shall be mechanical and administrative in nature; the Agent shall not have by reason of the Agreement or any other
Transaction Document a fiduciary relationship in respect of any Debtor or any Secured Party; and nothing in the Agreement or any other Transaction Document, expressed or implied, is intended to or shall be so construed as to impose upon the Agent
any obligations in respect of the Agreement or any other Transaction Document except as expressly set forth herein and therein. 
  
 3. Lack of Reliance on the Agent. Independently and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate, has
made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Company and its subsidiaries in connection with such Secured Party’s investment in the Debtors, the creation and
continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its
subsidiaries, and of the value of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Secured Party with any credit, market or other information with respect
thereto, whether coming into its possession before any Obligations are incurred or 

 at any time or times thereafter. The Agent shall not be responsible to the Debtors or any Secured Party for any recitals,
statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility,
priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition of the Debtors or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance of
any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial condition of the Debtors, or the value of any of the Collateral, or the existence or possible existence of any default or Event of
Default under the Agreement, the Debentures or any of the other Transaction Documents. 
  
 4. Certain Rights of the Agent. The Agent shall have the right to take any action with respect to the Collateral, on behalf of all of the Secured Parties. To the extent practical, the Agent shall request
instructions from the Secured Parties with respect to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and shall be entitled to act or refrain from acting in accordance with
the instructions of Secured Parties holding a majority in principal amount of Debentures (based on then-outstanding principal amounts of Debentures at the time of any such determination); if such instructions are not provided despite the
Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken by
the Agent; and the Agent shall not incur liability to any person or entity by reason of so refraining. Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of the Agent
acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction Document, and the Debtors shall have no right to question or challenge the authority of, or the instructions given to, the Agent
pursuant to the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction
Documents or applicable law. 
  
 5. Reliance. The Agent
shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent
or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to
this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it. 
  
 6. Indemnification. To the extent that the Agent is not reimbursed and indemnified by the Debtors, the Secured Parties will jointly and
severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal amounts of Debentures, from and against any and all liabilities, obligations, losses, 

 damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which
may be imposed on, incurred by or asserted against the Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way relating to or arising out of the Agreement or any other Transaction Document
except for those determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction to have resulted solely from the Agent’s own gross negligence or willful misconduct. Prior to taking any action hereunder as
Agent, the Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking such action. 
  
 7. Resignation by the Agent. 
  
 (a) The Agent may resign from the performance of all its
functions and duties under the Agreement and the other Transaction Documents at any time by giving 30 days’ prior written notice (as provided in the Agreement) to the Debtors and the Secured Parties. Such resignation shall take effect upon the
appointment of a successor Agent pursuant to clauses (b) and (c) below. 
  
 (b) Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor Agent
hereunder. 
  
 (c) If a successor Agent shall not
have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent who shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above. If a successor Agent has not been
appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead the Debtors and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not limited
to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable by the Debtors on demand. 
  
 8. Rights with respect to Collateral. Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not, and
shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent or any
of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other
than as set forth in this Agreement and the other Transaction Documents.Form of Amendment Agreement

 Exhibit 10.1 
  
 EXECUTION VERSION 
  
 AMENDMENT AGREEMENT 
  
 AMENDMENT AGREEMENT (the “Agreement”), dated as of November 8, 2005, by and among Avanex Corporation, a Delaware corporation, with
headquarters located at 409l9 Encyclopedia Circle, Fremont, California 94538 (the ”Company”), and [Steelhead Investments Ltd.] [Kings Road Investments Ltd.] [Gryphon Master Fund, L.P.] [GSSF Master Fund LP] [Castlerigg Master
Investments Ltd.] (the “Investor”). 
  
 WHEREAS: 
  
 A. The Company, the Investor and
certain other investors (the “Other Investors”, and collectively with the Investor, the “Investors”) are parties to that certain Securities Purchase Agreement, dated as of May 16, 2005 (the “Securities
Purchase Agreement”), pursuant to which, among other things, the Investors purchased from the Company (i) senior secured convertible notes (the “Existing Notes”), which are convertible into shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”) (the Existing Notes as converted, the “Existing Conversion Shares”), in accordance with the terms thereof, and (ii) warrants (the “Existing
Warrants”), which are exercisable into shares of Common Stock (the “Existing Warrant Shares”). 
  
 B. In connection with the transactions set forth in the Securities Purchase Agreement, the Company entered into a Security Agreement, a Pledge Agreement
and a Guaranty (collectively, the “Security Documents”), pursuant to which, among other things, the Existing Notes were secured by a first priority, perfected security interest, subject to Permitted Liens (as defined in the Existing
Notes), in substantially all of the assets of the Company and the stock and assets of certain of the Company’s subsidiaries. 
  
 C. Certain of the Investors have delivered an Event of Default Redemption Notice (a “Default Notice”), attached hereto as Exhibit
A, which, among other things, purports to set forth certain Events of Default as having occurred pursuant to the terms of the Existing Notes. 
  
 D. The Company and the Investor desire to enter into this Agreement, pursuant to which, among other things, (i) in consideration of the withdrawal of the
Default Notice delivered by the Investor, if any, and not submitting a default notice relating to the Existing Claims (as defined in Section 7(a) below), and the releases contained herein, the Company shall pay to the Investor [$1,500,000]
[$1,000,000] [$375,000] [$125,000] [$500,000] (the “Release Amount”); (ii) the Company and the Investor shall amend and restate all of such Investor’s Existing Notes for senior secured convertible notes in the form attached
hereto as Exhibit B (the “Amended and Restated Notes”), which shall be convertible into Common Stock (as converted, the “Amended and Restated Conversion Shares”), in accordance with the terms thereof; and
(iii) the Company and the Investor shall amend and restate all of such Investor’s Existing Warrants for warrants in the form attached hereto as Exhibit C (the “Amended and Restated Warrants”) which shall be exercisable
into Common Stock (the “Amended and Restated Warrant Shares”, and together with Amended and Restated Conversion Shares, the “Amended and Restated Shares”). 

 E. Contemporaneously with the execution and delivery of the Securities Purchase Agreement, the Company
and the Investors entered into a Registration Rights Agreement, dated as of May 16, 2005 (the “Registration Rights Agreement”), pursuant to which the Company agreed to provide certain registration rights with respect to the
Registrable Securities (as defined in the Registration Rights Agreement, the “Existing Registrable Securities”) under the Securities Act of 1933, as amended (the “1933 Act”), and the rules and regulations
promulgated thereunder, and applicable state securities laws. 
  
 F. The parties hereto desire that the Amended and Restated Shares be covered by registration rights terms substantially identical to those set forth in the Registration Rights Agreement. 
  
 G. The parties hereto desire that the Security Documents shall continue to be
in full force and effect and secure all obligations under the Securities Purchase Agreement as amended hereby and the Amended and Restated Notes in accordance with the terms of such Security Document. 
  
 H. The amendment of the Existing Notes and the Existing Warrants is being
made in reliance upon the exemption from registration provided by Section 4(2) of the 1933 Act. 
  
 I. Capitalized terms used herein and not otherwise defined herein shall have the respective meanings ascribed to them in the Securities Purchase Agreement
and the Amended and Restated Notes. 
  
 NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual promises hereinafter set forth, the Company and the Investors hereby agree as follows: 
  

	 	1.	AMENDMENT AND RESTATEMENT OF NOTES AND WARRANTS, WITHDRAWAL AND NON-SUBMISSION OF DEFAULT NOTICE. 

  
 (a) Amendment and Restatement. Subject to satisfaction (or waiver) of the conditions set forth in Sections 5 and 6
below, at the closing contemplated by this Agreement (the “Closing”), (i) the Investor shall surrender to the Company its Existing Notes and the Company shall issue and deliver to the Investor the Amended and Restated Notes in a
principal amount equal to that of the Existing Notes being so amended and restated, (ii) the Investor shall surrender to the Company at the Closing its Existing Warrants and the Company shall issue and deliver to the Investor the Amended and
Restated Warrants, exercisable for the same number of shares of Common Stock and (iii) the Company shall pay in cash to the Investor the Release Amount. 
  
 (b) Ratifications. Except as otherwise expressly provided herein, (i) the Securities Purchase Agreement, Registration Rights Agreement, each
Security Document and each other Transaction Documents is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after the Closing Date (A) all references in the Securities
Purchase Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of like import referring to the Securities Purchase Agreement shall mean the Securities Purchase Agreement as amended by this
Agreement, (B) all references in the Registration Rights Agreement to “this Agreement”, “hereto”, “hereof”, “hereunder” or words of 
  

 2 

 like import referring to the Registration Rights Agreement shall mean the Registration Rights Agreement as amended by
this Agreement, (C) all references in the other Transaction Documents, including without limitation any Security Document, to the “Securities Purchase Agreement”, “thereto”, “thereof”, “thereunder” or words of
like import referring to the Securities Purchase Agreement shall mean the Securities Purchase Agreement as amended by this Agreement, and (D) all references in the other Transaction Documents, including without limitation any Security Document, to
the “Registration Rights Agreement”, “thereto”, “thereof”, “thereunder” or words of like import referring to the Registration Rights Agreement shall mean the Registration Rights Agreement as amended by this
Agreement, (ii) to the extent that the Securities Purchase Agreement or any other Transaction Document purports to pledge to HBK Investments L.P. as collateral agent for the Investors (the “Agent”), or to grant to the Agent, a
security interest in or lien on, any collateral as security, such pledge or grant of a security interest or lien is hereby ratified and confirmed in all respects, and (iii) the execution, delivery and effectiveness of this Agreement shall not
operate as an amendment of any right, power or remedy of the Agent or the Investors under any Transaction Document, nor constitute an amendment of any provision of any Transaction Document. 
  
 (c) Closing Date. The date and time of the Closing (the
“Closing Date”) shall be 10:00 a.m., New York Time, on the second Business Day after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 5 and 6 below (or such other time and date as is
mutually agreed to by the Company and the Investors). The Closing shall occur on the Closing Date at the offices of Schulte Roth & Zabel LLP, 919 Third Avenue, New York, New York 10022. 
  
 (d) Form of Payment. On the Closing Date, (i) the Company (A) shall
pay to the Investor the Release Amount, by wire transfer of immediately available funds in accordance with the Investor’s written wire instructions provided to the Company at least two (2) Business Days prior to the Closing, (B) shall issue and
deliver to the Investor, the Investor’s Amended and Restated Notes, duly executed on behalf of the Company and registered in the name of the Investor, and (C) shall issue and deliver to the Investor, the Investor’s Amended and Restated
Warrants, duly executed on behalf of the Company and registered in the name of the Investor, and (ii) the Investor (A) shall deliver to the Company the Investor’s Existing Notes for cancellation and (B) shall deliver to the Company the
Investor’s Existing Warrants for cancellation. 
  
 (e)
Default Notice. Effective upon the Closing, the Investor hereby withdraws and cancels the Default Notice delivered to the Company, if any, and agrees not to deliver a default notice relating to the Existing Claims. 
  

	 	2.	AMENDMENTS TO TRANSACTION DOCUMENTS. 

  
 The Securities Purchase Agreement and the Registration Rights Agreement are hereby amended as follows: 
  
 (a) All references to “Notes” shall mean, and are hereby replaced
with, the “Amended and Restated Notes”; 
  

 3 

 (b) All references to “Conversion Shares” shall mean, and are hereby replaced with, the
“Amended and Restated Conversion Shares”; 
  
 (c) All
references to “Warrants” shall mean, and are hereby replaced with, the “Amended and Restated Warrants”; 
  
 (d) All references to “Warrant Shares” shall mean, and are hereby replaced by “Amended and Restated Warrants”; and 
  
 (e) The defined term “Transaction Documents” is hereby amended to
include this Agreement, the Amended and Restated Notes and the Amended and Restated Warrants. 
  

	 	3.	REPRESENTATIONS AND WARRANTIES 

  
 (a) Investor Bring Down. The Investor hereby represents and warrants to the Company with respect to itself only as set forth in Section 2 of the
Securities Purchase Agreement as to this Agreement as if such representations and warranties were made as of the date hereof and set forth in their entirety in this Agreement. Such representations and warranties in the Securities Purchase Agreement
to the transactions thereunder and the securities issued thereby are hereby deemed for purposes of this Agreement to be references to the transactions hereunder and the issuance of the securities hereby. 
  
 (b) Company Bring Down. The Company represents and warrants to the
Investor as set forth in Section 3 of the Securities Purchase Agreement as if such representations and warranties were made as of the date hereof and set forth in their entirety in this Agreement; provided that the Schedules to the Securities
Purchase Agreement are replaced in their entirety by the Schedules attached to this Agreement (the “New Schedules”). Such representations and warranties in the Securities Purchase Agreement to the transactions thereunder and the
securities issued thereby are hereby deemed for purposes of this Agreement to be references to the transactions hereunder and the issuance of the securities hereby, and references therein to “Closing Date” being deemed references to the
Closing Date as defined in Section 1(c) above. 
  

	 	4.	CERTAIN COVENANTS AND AGREEMENTS; RELEASE 

  
 (a) Registration Rights. After the Closing Date, the Company shall file a new registration statement, with the Amended and Restated Shares being
treated as “Registrable Securities” in accordance with, and being governed by, the Registration Rights Agreement as amended herein, the provisions and terms of which are applicable hereto mutates mutandis, as if the Company and the
Investors had executed such Registration Rights Agreement as of the Closing Date; provided, however, that (i) references in the Registration Rights Agreement to Closing Date shall be deemed amended to refer to the Closing Date as set
forth in this Agreement and (ii) references in the Registration Rights Agreement to Filing Deadline shall be deemed amended to mean 25 days after the Closing Date. 
  
 (b) Disclosure of Transactions and Other Material Information. On or before 8:30 a.m., New York Time, on the first
Business Day following the date of this 
  

 4 

 Agreement, the Company shall file a Current Report on Form 8-K describing the terms of the transactions contemplated by
this Agreement in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement (and all schedules to this Agreement), the form of each of the Amended and Restated Notes, the form
of each of the Amended and Restated Warrants and any amended Security Documents) (including all attachments, the “8-K Filing”). Neither the Company, any of its Subsidiaries or any of its respective officers, directors, employees or
agents has provided material nonpublic information to the Investors other than the information that will be disclosed in the 8-K Filing or that was disclosed in the Company’s Form 8-K filed with the SEC on May 17, 2005. The Company shall not
disclose the identity of the Investor in any filing with the SEC except as required by the rules and regulations of the SEC thereunder. The Company shall not, and shall cause each of its Subsidiaries and its and each of their respective officers,
directors, employees and agents, not to, provide the Investor with any material, nonpublic information regarding the Company or any of its Subsidiaries from and after the filing of the 8-K Filing with the SEC without the express written consent of
the Investor. In the event of a breach of the foregoing covenant by the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents, in addition to any other remedy provided herein or in the
Transaction Documents, the Investor shall notify the Company, and if the Company does not make public disclosure of such material nonpublic information within twenty four (24) hours of such notification, the Investor shall have the right to make a
public disclosure, in the form of a press release, public advertisement or otherwise, of such material, nonpublic information without the prior approval by the Company, its Subsidiaries, or any of its or their respective officers, directors,
employees or agents. The Investor shall not have any liability to the Company, its Subsidiaries, or any of its or their respective officers, directors, employees, stockholders or agents for any such disclosure. Subject to the foregoing, neither the
Company nor the Investor shall issue any press releases or any other public statements with respect to the transactions contemplated hereby; provided, however, that the Company shall be entitled, without the prior approval of the
Investor, to make any press release or other public disclosure with respect to such transactions which are (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) required by applicable law and regulations
(provided that in the case of clause (i) the Company shall use reasonable best efforts to consult with the Investor in connection with any such press release or other public disclosure prior to its release). Notwithstanding the foregoing, the
Company shall not publicly disclose the name of the Investor, or include the name of the Investor in any filing with the SEC or any regulatory agency or the applicable stock exchange, without the prior written consent of the Investor, except (i) for
disclosure thereof in the 8-K Filing or Registration Statement or similar disclosure as required in future SEC filings or (ii) as required by applicable law or regulations or applicable stock exchange rules or any order of any court or other
governmental agency, in which case the Company shall use its reasonable best efforts to provide the Investor with prior notice of such disclosure. 
  
 (c) Fees and Expenses. At the Closing, the Company shall reimburse the Investor for its legal and due diligence fees and expenses in connection
with the preparation and negotiation of this Agreement by paying any such amount to [Schulte Roth & Zabel LLP] [Latham & Watkins LLP] [Akin, Gump, Strauss, Hauer & Feld, LLP] (the “Investor Counsel Expense”). Upon
execution of this Agreement, the Company shall pay to [Schulte Roth & Zabel LLP] [Latham & Watkins LLP] [Akin, Gump, Strauss, Hauer & Feld, LLP] [$            ] toward
the Investor Counsel Expense. Except as otherwise set forth in this Agreement or pursuant to the 
  

 5 

 registration rights pursuant to Section 4(a) hereof, each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all stamp and other taxes and duties levied
in connection with the issuance of the Amended and Restated Notes and Amended and Restated Warrants. 
  
 (d) Stockholder Approval. The Company shall provide each stockholder entitled to vote at a special or annual meeting of stockholders of the
Company (the “Subsequent Stockholder Meeting”), which initially shall be promptly called and held not later than January 31, 2006 (the “Subsequent Stockholder Meeting Deadline”), a proxy statement, substantially in
the form which has been previously reviewed by the Investors and a counsel of their choice at the expense of the Company, soliciting each such stockholder’s affirmative vote at the Subsequent Stockholder Meeting for approval of resolutions (the
“Subsequent Resolutions”) providing for the Company’s issuance of all of the Securities as described in the Transaction Documents in accordance with applicable law and the rules and regulations of the Principal Market (such
affirmative approval being referred to herein as the “Subsequent Stockholder Approval” and the date such approval is obtained, the “Subsequent Stockholder Approval Date”), and the Company shall use its reasonable
best efforts to solicit its stockholders’ approval of the Subsequent Resolutions and to cause the Board to recommend to the stockholders that they approve the Subsequent Resolutions. The Company shall be obligated to seek to obtain the
Subsequent Stockholder Approval by the Subsequent Stockholder Meeting Deadline. If, despite the Company’s reasonable best efforts, the Subsequent Stockholder Approval is not obtained on or prior to the Subsequent Stockholder Meeting Deadline,
the Company shall cause an additional Subsequent Stockholder Meeting to approve the Subsequent Resolutions to be called and held at each otherwise convened special or annual meeting of the stockholders of the Company, which special or annual
meetings must be called and held at least once in each six-month period after the Subsequent Stockholder Meeting Deadline until such Subsequent Stockholder Approval is obtained, provided that if the Board does not recommend to the stockholders that
they approve the Subsequent Resolutions at any such Subsequent Stockholder Meeting and the Subsequent Stockholder Approval is not obtained, the Company shall cause an additional Subsequent Stockholder Meeting to be held each calendar quarter after
the Subsequent Stockholder Meeting Deadline until such Subsequent Stockholder Approval is obtained. 
  

	 	5.	CONDITIONS TO COMPANY’S OBLIGATIONS HEREUNDER. 

  
 The obligations of the Company to the Investor hereunder are subject to the satisfaction of each of the following conditions, provided that these
conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing the Investor with prior written notice thereof: 
  
 (a) The Investor shall have executed this Agreement and delivered the same to the Company. 
  
 (b) The Investor shall have delivered to the Company the Investor’s
Existing Notes and Existing Warrants for cancellation. 
  

 6 

 (c) The representations and warranties of the Investor shall be true and correct in all material
respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as of the date when made and as of the Closing Date as though made at that time
(except for representations and warranties that speak as of a specific date). 
  

	 	6.	CONDITIONS TO INVESTOR’S OBLIGATIONS HEREUNDER. 

  
 The obligations of the Investor hereunder are subject to the satisfaction of each of the following conditions, provided that these conditions are for the
Investor’s sole benefit and may be waived by the Investor at any time in its sole discretion by providing the Company with prior written notice thereof: 
  

(a) The Company shall have executed this Agreement and delivered the same to the Investor. 
  
 (b) The Company shall have executed and delivered to the Investor the
Amended and Restated Notes and the Amended and Restated Warrants being issued to such Investor at the Closing. 
  
 (c) The Company shall have delivered to the Investor such Investors Release Amount by wire transfer of immediately available funds pursuant to the wire
instructions provided by the Investor. 
  
 (d) The Amended and
Restated Notes and Transaction Documents shall be secured pursuant to the terms of the Security Documents in the same manner and to the same extent as the Existing Notes. 
  
 (e) Each of the Other Investors shall have (i) executed agreements identical to this Agreement (other than proportional
changes in the numbers reflecting the (x) different principal amount of such Other Investors Existing Notes, (y) different number of Existing Warrant Shares underlying such Investors Existing Warrants and (z) different release amounts (the
“Proportionate Changes”)), (ii) satisfied or waived all conditions to the closings contemplated by such agreements and (iii) surrendered their Existing Notes and Existing Warrants for Amended and Restated Notes and Amended and
Restated Warrants identical to the Amended and Restated Notes and Amended and Restated Warrants of the Investor hereunder (other than the Proportionate Changes). 
  
 (f) The Company shall have delivered to the Company’s transfer agent, with a copy to the Investors, a letter stating
that the Irrevocable Transfer Agent Instructions dated May 17, 2005 shall also apply to the Amended and Restated Shares. 
  
 (g) The Investor shall have received the opinions of Wilson Sonsini Goodrich & Rosati, P.C., the Company’s outside counsel, dated as of the
Closing Date, in substantially the form of Exhibit D attached hereto. 
  
 (h) The Company shall have delivered to the Investor a certificate, executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the 
  

 7 

 resolutions approving the transactions contemplated hereby as adopted by the Board in a form reasonably acceptable to the
Investor, (ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect as of the Closing, in the form attached hereto as Exhibit E. 
  
 (i) The representations and warranties of the Company under the Securities Purchase Agreement and each other Transaction Document, including without
limitation, each Security Document, shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects) as
of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the
covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date and no Default or Event of Default (other than Default or Event of Default relating
to Existing Claims) shall have occurred and be continuing on the date hereof either immediately before or after giving effect to this Agreement in accordance with its terms. The Investor shall have received a certificate, executed by the Chief
Executive Officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by the Investor in the form attached hereto as Exhibit F. 
  
 (j) The Common Stock (I) shall be designated for quotation or listed on the
Principal Market and (II) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Closing
Date, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum listing maintenance requirements of the Principal Market, except as set forth in the Current Report on Form 8-K filed by the Company with the SEC on
September 12, 2005. 
  
 (k) The Company shall have obtained all
governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Securities, including, without limitation, any approvals or notifications required by the Principal Market. 
  

	 	7.	MUTUAL RELEASES. 

  
 (a) For purposes of this Agreement, “Existing Claims” shall mean any purported events of default contained in any Default Notice delivered to
the Company and attached hereto as Exhibit A or any other claims arising out of the same facts and circumstances, any claims arising out of any violation as of the date hereof of the Sarbanes-Oxley Act of 2002 and the rules and regulations
promulgated thereunder that does not result in a Material Adverse Effect upon the Company, or any claims arising out of or based upon any facts or circumstances known to the public or the Investor at or prior to the execution hereof by Investor. In
consideration of the releases set forth in Section 7(b), the payment of the Release Amount and the exchange of the Existing Notes and the Existing Warrants for the Replacement Notes and Replacement Warrants, effective as of the Closing, the
Investor, only on behalf of itself and, to the extent permitted by law, its heirs, executors, administrators, devisees, trustees, partners, directors, officers, shareholders, employees, consultants, representatives, predecessors, principals, agents,
parents, associates, affiliates, subsidiaries, attorneys, accountants, successors, 
  

 8 

 successors-in-interest and assignees (collectively, the “Investor Releasing Persons”), hereby waives and
releases, to the fullest extent permitted by law, any and all claims, rights and causes of action, whether known or unknown, but solely relating to the Existing Claims (collectively, the “Investor Claims”), that any of the Investor
Releasing Persons had or currently has against (i) the Company, (ii) any of the Company’s current or former parents, affiliates, subsidiaries, predecessors, assigns, attorneys or counsel, accountants, employees, consultants or representatives,
or (iii) any of the Company’s or such other persons’ or entities’ current or former officers, directors, employees, agents, principals, and signatories (collectively, the “Company Released Persons”), including,
without limitation, any Investor Claims arising out of any of the Transaction Documents. For the avoidance of doubt, Investor Claims arising after the Closing that relate to events or circumstances occurring, or actions taken or failed to be taken,
after the Closing are not waived or released hereby. Except for the Existing Claims, any claims, rights or causes of cause of action arising out of or based upon events or circumstances that are not disclosed in the 2005 10-K that may constitute an
Event of Default under the Existing Notes or Amended and Restated Notes are not waived or released hereby. 
  
 (b) In further consideration of the Investor entering into this Agreement, effective as of the date of this Agreement, the Company on behalf of itself
and, to the extent permitted by law, its administrators, devisees, trustees, partners, directors, officers, shareholders, employees, consultants, representatives, predecessors, principals, agents, parents, associates, affiliates, subsidiaries,
attorneys, accountants, successors, successors-in-interest and assignees (collectively, the “Company Releasing Persons”), hereby waives and releases, to the fullest extent permitted by law, any and all claims, rights and causes of
action, whether known or unknown (collectively, the “Company Claims”), that any of the Company Releasing Persons had or currently has against (i) the Investor, (ii) any of the Investor’s current or former parents, members,
partners, shareholders, affiliates, subsidiaries, predecessors or assigns, or (iii) any of the Investor’s or such other persons’ or entities’ current or former officers, directors, members, partners, shareholders, employees, agents,
principals, investors, signatories, advisors, consultants, spouses, heirs, estates, executors, attorneys, auditors and associates and members of their immediate families (collectively, the “Investor Released Persons”), including,
without limitation, any Company Claims arising out of any of the Transaction Documents or the Default Notice, if any. Company Claims arising after the Closing that relate to events or circumstances occurring, or actions taken or failed to be taken,
after the Closing are not waived or released hereby. 
  

	 	8.	TERMINATION. 

  
 In the event that the Closing does not occur by November 8, 2005, due to the Company’s or the Investors’ failure to satisfy the conditions set
forth in Sections 5 and 6 hereof (and the nonbreaching party’s failure to waive such unsatisfied conditions(s)), the nonbreaching party shall have the option to terminate this Agreement at the close of business on such date without liability of
any party to any other party; provided, however, this if this Agreement is terminated by a non-breaching Investor pursuant to this Section 8, the Company shall remain obligated to reimburse the non-breaching Investor for the expenses
described in Section 4(c) above. Upon such termination, the terms hereof shall be null and void and the parties shall continue to comply with all terms and conditions of the Transaction Documents, as in effect prior to the execution of this
Agreement. 
  

 9 

	 	9.	MISCELLANEOUS. 

  
 (a) Counterparts. This Agreement may be executed in two or more identical counterparts, all of which 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; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the
same force and effect as if the signature were an original, not a facsimile signature. 
  
 (b) Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. 
  
 (c) Severability. If any provision of this Agreement shall be invalid
or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in
any other jurisdiction. 
  
 (d) Governing Law; Jurisdiction;
Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction
of the state and federal courts sitting in the State of Delaware, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. If any
provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH
OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY. 
  
 (e) No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision
hereof be enforced by, any other Person. 
  

 10 

 (f) Further Assurances. Each party shall do and perform, or cause to be done and performed, all
such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement
and the consummation of the transactions contemplated hereby. 
  
 (g) No Strict Construction. 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.

  
 (h) Entire Agreement; Effect on Prior Agreements;
Amendments. Except for the Transaction Documents (to the extent any such Transaction Document is not amended by this Agreement), this Agreement supersedes all other prior oral or written agreements between the Investor, the Company, their
affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and
therein and, except as specifically set forth herein or therein, neither the Company nor the Investor makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than
by an instrument in writing signed by the Company and the Investor and to the extent that Other Investors may be affected thereby, by the Required Holders. No provision hereof may be waived other than by an instrument in writing signed by the party
against whom enforcement is sought. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of
the parties to the Transaction Documents, holders of Amended and Restated Notes or holders of the Amended and Restated Warrants, as the case may be. The Company has not, directly or indirectly, made any agreements with any of the Investors relating
to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. 
  
 (i) Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 
  
 If to the Company: 
  

			
	
	Avanex Corporation
	409l9 Encyclopedia Circle
	Fremont, California 94538
	Telephone:	  	(510) 897-4188
	Facsimile:	  	(510) 897-4189
	Attention:	  	Chief Executive Officer

  

 11 

 Copy to: 
  

			
	Wilson, Sonsini, Goodrich & Rosati, P.C.
	650 Page Mill Road
	Palo Alto, CA 94304
	Telephone:	  	(650) 493-9300
	Facsimile:	  	(650) 493-6811
	Attention:	  	Daniel J. Weiser, Esq.
	Burke F. Norton, Esq.

  
 If to the Investor, to its address and
facsimile number set forth in the Securities Purchase Agreement, with copies to the Investor’s representatives as set forth on the Securities Purchase Agreement or on the signature page to this Agreement, 
  
 with a copy (for informational purposes only) to: 

 

			
	Schulte Roth & Zabel LLP
	919 Third Avenue
	New York, New York 10022
	Telephone:	  	(212) 756-2000
	Facsimile:	  	(212) 593-5955
	Attention:	  	Eleazer N. Klein, Esq.

  
 or to such other address and/or
facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such
transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

  
 (j) Successors and Assigns. This Agreement shall be
binding upon and inure to the benefit of the parties and their respective successors and assigns in accordance with the terms of the Securities Purchase Agreement. 
  
 (k) Survival. Unless this Agreement is terminated under Section 8, the representations and warranties of the Company
and the Investor contained herein and the agreements and covenants set forth herein shall survive the Closing. 
  
 (l) Remedies. The Investor and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all
rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be
entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company
recognizes that in the event that it fails to perform, observe, or discharge any or all of its 
  

 12 

 obligations under this Agreement, any remedy at law may prove to be inadequate relief to the Investor. The Company
therefore agrees that the Investor shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security. 
  
 (m) Independent Nature of Investor’s Obligations and Rights. The
obligations of the Investor under any Transaction Document are several and not joint with the obligations of any Other Investor, and the Investor shall not be responsible in any way for the performance of the obligations of any Other Investor under
any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by the Investor pursuant hereto, shall be deemed to constitute the Investor and Other Investors as a partnership, an association, a joint
venture or any other kind of entity, or create a presumption that the Investor and Other Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The
Company and the Investor confirm that the Investor has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors. The Investor shall be entitled to independently protect and
enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any Other Investor to be joined as an additional party in any proceeding for
such purpose. 
  
 [Signature Page Follows] 
  

 13 

 IN WITNESS WHEREOF, each Investor and the Company have caused their respective signature page to
this Agreement to be duly executed as of the date first written above. 
  

			
	COMPANY:
	
	AVANEX CORPORATION
		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 [Signature Page
to Amendment and Exchange Agreement] 

 IN WITNESS WHEREOF, each Investor and the Company have caused their respective signature page to
this Agreement to be duly executed as of the date first written above. 
  

			
	
	 INVESTORS:
  
 [STEELHEAD INVESTMENTS LTD.]
  
 [KINGS ROAD INVESTMENTS LTD.]
  
 [GRYPHON MASTER FUND, L.P.]
  

	
	 [GSSF MASTER FUND, LP]
  
 [CASTLERIGG MASTER
 INVESTMENTS LTD.]

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 
	
	 Copy to:

	
	 [insert]

  
 [Signature Page
to Amendment and Exchange Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00093-of-00352.parquet"}]]