Document:

Exhibit 10.4

 Exhibit 10.4 
 PLACEMENT AGREEMENT 
 AMONG 
 GREER BANCSHARES INCORPORATED, 
 GREER CAPITAL TRUST II 
 AND 
 CREDIT SUISSE SECURITIES (USA) LLC

  

 Dated as of
December 28, 2006 
  

 Greer Bancshares Incorporated 
 $5,000,000 Preferred Securities 
 Floating Rate Preferred Securities 
 (Liquidation Amount $1,000 per Preferred Security) 
 PLACEMENT AGREEMENT 
  

 December 28, 2006 
 Credit Suisse Securities (USA) LLC 
 Eleven Madison Avenue 
 New York, New York 10010 
 Ladies and Gentlemen: 
 Greer Bancshares Incorporated, a South Carolina corporation (the “Company”), and its financing
subsidiary, Greer Capital Trust II, a Delaware statutory trust (the “Trust,” and hereinafter together with the Company, the “Offerors”), hereby confirm their agreement (this “Agreement”) with you (the “Placement
Agent”), as follows: 
 Section 1. Issuance and Sale of Securities. 
 1.1 Introduction. The Offerors propose to issue and sell at the Closing (as defined in Section 2.3.1 hereof) an aggregate of FIVE MILLION
AND 00/100 ($5,000,000) DOLLARS of the Trust’s Floating Rate Preferred Securities, with a liquidation amount of $1,000 per preferred security, bearing a variable rate of interest per annum, reset quarterly, equal to LIBOR (as defined in the
Indenture (as defined below)) plus 1.73% (the “Preferred Securities”), directly or indirectly, to Credit Suisse, acting through its Cayman Islands branch (the “Purchaser”), pursuant to the terms of the Preferred Securities
Subscription Agreement entered into, or to be entered into on or prior to the Closing Date (as defined in Section 2.3.1 hereof), between the Offerors and the Purchaser (the “Subscription Agreement”), the form of which is attached hereto as
Exhibit A and incorporated herein by this reference. 
 1.2 Operative Agreements. The Preferred Securities shall be fully and
unconditionally guaranteed on a subordinated basis by the Company with respect to distributions and amounts payable upon liquidation, redemption or repayment (the “Guarantee”) pursuant and subject to the Guarantee Agreement (the
“Guarantee Agreement”), to be dated as of the Closing Date and executed and delivered by the Company and Wilmington Trust Company, as guarantee trustee (the “Guarantee Trustee”), for the benefit from time to time of the holders
of the Preferred Securities. The entire proceeds from the sale by the Trust to the holders of the Preferred Securities shall be combined with the entire proceeds from the sale by the Trust to the Company of its common securities (the “Common
Securities”), and shall be used by the Trust to purchase FIVE MILLION ONE HUNDRED FIFTY-FIVE THOUSAND AND 00/100 ($5,155,000) 

  

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DOLLARS in principal amount of the Floating Rate Junior Subordinated Notes (the “Junior Subordinated Notes”) of the Company. The Preferred
Securities and the Common Securities of the Trust shall be issued pursuant to an Amended and Restated Trust Agreement among Wilmington Trust Company, as property trustee (the “Property Trustee”), and as Delaware trustee (the “Delaware
Trustee”), the Administrative Trustees named therein and the Company, to be dated as of the Closing Date and in substantially the form heretofore delivered to the Placement Agent (the “Trust Agreement”). The Junior Subordinated Notes
shall be issued pursuant to an Indenture (the “Indenture”), to be dated as of the Closing Date, between the Company and Wilmington Trust Company, as indenture trustee (the “Indenture Trustee”). The documents identified in this
Section 1.2 and in Section 1.1 are referred to herein as the “Operative Documents.” The Preferred Securities, the Common Securities and the Junior Subordinated Notes are collectively referred to as the “Securities.”
All other capitalized terms used but not defined in this Agreement shall have the meanings ascribed to them in the Indenture. 
 1.3
Rights of Purchaser. The Preferred Securities shall be offered and sold by the Trust, directly or indirectly, to the Purchaser without registration of any of the Preferred Securities, the Junior Subordinated Notes or the Guarantee under the
Securities Act of 1933, as amended (the “Securities Act”), or any other applicable securities laws in reliance upon exemptions from the registration requirements of the Securities Act and other applicable securities laws. The Offerors
agree that this Agreement shall be incorporated by reference into the Subscription Agreement, and the Purchaser shall be entitled to each of the benefits of the Placement Agent and the Purchaser under this Agreement (except for the rights of the
Placement Agent under Sections 2.1 and 2.4.1 of this Agreement) and shall be entitled to enforce obligations of the Offerors under this Agreement as fully as if the Purchaser were a party to this Agreement. The Offerors and the
Placement Agent have entered into this Agreement to set forth their understanding as to their relationship and their respective rights, duties and obligations. 
 1.4 Legends. Upon original issuance thereof, the Preferred Securities and Junior Subordinated Notes certificates shall each contain a legend as required pursuant to any of the Operative Documents, including
without limitation, a legend stating that the offer, sale or transfer of the Preferred Securities or the Junior Subordinated Notes, as the case may be, will be made only (a) to the issuer thereof, (b) to a person that the transferor
reasonably believes is a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act) in a transaction meeting the requirements of Rule 144A, or (c) to an institutional “accredited investor” within the
meaning of subparagraph (a) (1), (2), (3) or (7) of Rule 501 under the Securities Act that is acquiring the Preferred Securities or the Junior Subordinated Notes, as the case may be, for its own account, or for the account of such an
“accredited investor,” for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act, in each case in accordance with any applicable securities laws of
any state of the United States or any other applicable jurisdiction and, in the case of (c) above, subject to the right of the Trust and/or the Company, as applicable, to require an opinion of counsel and other information satisfactory to each
of them. 
  

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 Section 2. Purchase of Preferred Securities. 
 2.1 Exclusive Rights; Purchase Price. From the date hereof until the Closing Date (which date may be extended by mutual agreement of the Offerors
and the Placement Agent), the Offerors hereby grant to the Placement Agent the exclusive right to arrange for the sale to the Purchaser of the Preferred Securities at a purchase price equal to $1,000 per Preferred Security. The aggregate purchase
price shall be FIVE MILLION AND 00/100 ($5,000,000) DOLLARS (the “Purchase Price”), which Purchase Price is equal to 100% of the stated liquidation amount of the Preferred Securities. 
 2.2 Subscription. The Offerors hereby agree to evidence their acceptance of the subscription by countersigning a copy of the Subscription
Agreement and returning the same to the Placement Agent. 
 2.3 Closing and Delivery of Payment. 
 2.3.1 Closing; Closing Date. The closing (the “Closing”) for the sale and purchase of the Preferred Securities by the Offerors to the
Purchaser shall occur at the offices of Thacher Proffitt & Wood LLP, Two World Financial Center, New York, New York 10281, or such other place as the parties hereto shall agree at 11:00 a.m. (New York time) on
December 28, 2006, or such other later date (not later than January 26, 2007) as the parties may designate (such date and time of delivery and payment for the Preferred Securities being herein called the “Closing Date”). The
Preferred Securities shall be transferred and delivered to the Purchaser, or its designee against the payment of the Purchase Price to the Offerors in immediately available funds on the Closing Date to a U.S. account designated in writing by the
Company at least two (2) business days prior to the Closing Date. 
 2.3.2 Delivery. Delivery of the Preferred Securities shall
be made at such location, and in such names and denominations, as the Purchaser shall designate in advance of the Closing Date. The Company and the Trust agree to have the Preferred Securities available for inspection and checking by the Purchaser
in New York, New York not later than 1:00 P.M., New York time, on the business day prior to the Closing Date. 
 2.4 Placement
Agents’ Fees and Expenses. 
 2.4.1 Placement Agents’ Compensation. The Trust shall use the proceeds from the sale of
the Preferred Securities, together with the proceeds from the sale of the Common Securities, to purchase the Junior Subordinated Notes. In connection with the purchase of the Preferred Securities, the Company shall pay no fees or commissions to the
Placement Agent (the “Fee”). The Placement Agent shall be responsible for the following expenses: (i) any rating agency costs and expenses but shall not be responsible for any fees and expenses set forth in Section 2.4.2
hereof. 
 2.4.2 Costs and Expenses. The Company hereby covenants and agrees that it shall pay or cause to be paid (directly or by
reimbursement) all costs and expenses incident to the performance of the obligations of the Offerors under this Agreement, whether or not the transactions contemplated herein are consummated or this Agreement is terminated, including (i) all
costs and expenses incident to the authorization, issuance, sale and delivery of the Preferred Securities and any taxes payable in connection therewith; 

  

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(ii) the fees and expenses of qualifying the Preferred Securities under the securities laws of the several jurisdictions as provided in
Section 6.4; (iii) the fees and expenses of the counsel, the accountants and any other experts or advisors retained by the Company or the Trust, which counsel fees and expenses incurred in connection with the closing of the
transactions contemplated hereby, in an amount up to $10,000, shall be reimbursed by the Purchaser on the Closing Date and (iv) the fees and all reasonable expenses of the Guarantee Trustee, the Property Trustee, the Delaware Trustee, the
Indenture Trustee and any other trustee or paying agent appointed under the Operative Documents, except for any acceptance fee and annual administrative fees of any such trustee and the fees and disbursements of counsel for the Guarantee Trustee,
the Property Trustee, the Delaware Trustee, the Indenture Trustee and any other trustee or paying agent appointed under the Operative Documents incurred in connection with the closing of the transactions contemplated hereby, which shall be paid by
the Purchaser on the Closing Date. 
 2.4.3 Reimbursement of Expenses. If the sale of the Preferred Securities provided for in this
Agreement is not consummated because any condition set forth in Section 3 to be satisfied by either the Company or the Trust is not satisfied, because this Agreement is terminated pursuant to Section 10 or because of any
failure, refusal or inability on the part of the Company or the Trust to perform all obligations and satisfy all conditions on its part to be performed or satisfied hereunder other than by a reason of a default by the Placement Agent, the Company
will reimburse the Placement Agent upon demand for all reasonable out-of-pocket expenses (including the fees and expenses of each of the Placement Agent’s or Purchaser’s counsel) that shall have been incurred by the Placement Agent or the
Purchaser in connection with the proposed purchase and sale of the Preferred Securities. The Company shall not in any event be liable to the Placement Agent or the Purchaser for the loss of anticipated profits from the transactions contemplated by
this Agreement. 
 2.5 Failure to Close. If any of the conditions to the Closing specified in this Agreement shall not have been
fulfilled to the satisfaction of the Placement Agent or if the Closing shall not have occurred on or before 11:00 a.m. (New York time) on January 26, 2007, then each party hereto, notwithstanding anything to the contrary in this Agreement,
shall be relieved of all further obligations under this Agreement without thereby waiving any rights it may have by reason of such nonfulfillment or failure; provided, however, that the obligations of the parties under Sections 2.4 and
8 shall not be so relieved and shall continue in full force and effect. 
 Section 3. Closing Conditions. The obligations of the parties under
this Agreement on the Closing Date are subject to the following conditions: 
 3.1 Accuracy of Representations and Warranties. The
representations and warranties contained in this Agreement, and the statements of the Offerors made in any certificates pursuant to this Agreement, shall be accurate as of the date of delivery of the Preferred Securities. 
 3.2 Opinions of Counsel. On the Closing Date, the Placement Agent and the Purchaser shall have received the following favorable opinions or
certificate, as the case may be, each dated as of the Closing Date: (a) from Thacher Proffitt & Wood LLP, special counsel for the Placement Agent and the Purchaser and addressed to the Placement Agent and Purchaser in
substantially the form set 

  

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forth on Exhibit B-1 attached hereto and incorporated herein by this reference, (b) either (i) an opinion from Leatherwood Walker Todd &
Mann, P.C., counsel for the Offerors, or (ii) an opinion from the General Counsel or Chief Legal Officer of the Company, or (iii) if the Company does not have a General Counsel or Chief Legal Officer, an Officers’ Certificate from the
Chief Executive Officer, President or Executive Vice President of the Company, and the Chief Financial Officer, Treasurer or Assistant Treasurer of the Company, in each case addressed to the Purchaser and the Placement Agent in substantially the
form set forth on Exhibit B-2 attached hereto and incorporated herein by this reference, (c) from Leatherwood Walker Todd & Mann, P.C., tax counsel for the Offerors and addressed to the Placement Agent and Purchaser in
substantially the form set forth on Exhibit B-3 attached hereto and incorporated herein by this reference, (d) from Morris James LLP, special Delaware counsel to the Trust and addressed to the Purchaser, the Placement Agent and the Offerors, in
substantially the form set forth on Exhibit B-4 attached hereto and incorporated herein by this reference, and (e) from Morris James LLP, special counsel to the Indenture Trustee, the Property Trustee, the Delaware Trustee and the Guarantee
Trustee and addressed to the Purchaser, the Placement Agent and the Offerors, in substantially the form set forth on Exhibit B-5 attached hereto and incorporated herein by this reference. Each certificate or opinion addressed to the Purchaser shall
state that the first entity, if any, to which the Purchaser transfers any of the Preferred Securities and, if such transferee is a warehouse entity, the next subsequent transferee that is not a warehouse entity (each, a “Subsequent
Purchaser”), shall be entitled to rely on such opinion. 
 3.3 Officer’s Certificate. The Company shall have furnished to
the Placement Agent and the Purchaser a certificate of the Company, signed by its Chief Executive Officer, President or an Executive Vice President and by the Chief Financial Officer, Treasurer or Assistant Treasurer of the Company], and the Trust
shall have furnished to the Placement Agent and the Purchaser a certificate of the Trust, signed by an Administrative Trustee of the Trust, in each case dated the Closing Date, and, in the case of the Company, as to 3.3.1 and 3.3.2
below and, in the case of the Trust, as to 3.3.1 below: 
 3.3.1 the representations and warranties in this Agreement are true and
correct on and as of the Closing Date with the same effect as if made on the Closing Date, and the Company and the Trust have complied with all the agreements and satisfied all the conditions on either of their part to be performed or satisfied at
or prior to the Closing Date; and 
 3.3.2 since the date of the Interim Financial Statements (as defined below), there has been no material
adverse change in the condition (financial or other), earnings, business, prospects or assets of the Company and its subsidiaries, taken as a whole, whether or not arising from transactions occurring in the ordinary course of business. 

 

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 3.4 No Subsequent Change. Subsequent to the execution of this Agreement, there shall not have been
any change, or any development involving a prospective change, in or affecting the condition (financial or other), earnings, business, prospects or assets of the Company and its subsidiaries, whether or not occurring in the ordinary course of
business, the effect of which is, in the Placement Agent’s or the Purchaser’s judgment, so material and adverse as to make it impractical or inadvisable to proceed with the purchase of the Preferred Securities. 
 3.5 Purchase Permitted by Applicable Laws; Legal Investment. The purchase of and payment for the Preferred Securities as described in this
Agreement and pursuant to the Subscription Agreement shall (a) not be prohibited by any applicable law or governmental regulation, (b) not subject the Purchaser or the Placement Agent to any penalty or, in the reasonable judgment of the
Purchaser and the Placement Agent, other onerous conditions under or pursuant to any applicable law or governmental regulation, and (c) be permitted by the laws and regulations of the jurisdictions to which the Purchaser and the Placement Agent
are subject. 
 3.6 Consents and Permits. The Company and the Trust shall have received all consents, permits and other
authorizations, and made all such filings and declarations, as may be required from any person or entity pursuant to any law, statute, regulation or rule (federal, state, local and foreign), or pursuant to any agreement, order or decree to which the
Company or the Trust is a party or to which either is subject, in connection with the transactions contemplated by this Agreement. 
 3.7
Information. Prior to or on the Closing Date, the Offerors shall have furnished to the Placement Agent, the Purchaser and their respective counsel such further information, certificates, opinions and documents as the Placement Agent, the
Purchaser or their respective counsel may reasonably request. 
 If any of the conditions specified in this Section 3 shall not
have been fulfilled when and as required in this Agreement, or if any of the opinions, certificates and documents mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to the Placement Agent, the
Purchaser or their respective counsel, this Agreement and all the Placement Agent’s obligations hereunder may be canceled at, or any time prior to, the Closing Date by the Placement Agent. Notice of such cancellation shall be given to the
Offerors in writing or by telephone or facsimile confirmed in writing. 
 Each certificate signed by any trustee of the Trust or any officer
of the Company and delivered to the Placement Agent, the Purchaser or their respective counsel in connection with the Operative Documents and the transactions contemplated hereby and thereby shall be deemed to be a representation and warranty of the
Trust and/or the Company, as the case may be, and not by such trustee or officer in any individual capacity. 
  

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 Section 4. Representations and Warranties of the Offerors. The Offerors jointly and severally represent and
warrant to the Placement Agent and the Purchaser as of the date hereof and as of the Closing Date as follows: 
 4.1 Securities Laws Matters:

 (i) Neither the Company nor the Trust, nor any of their “Affiliates” (as defined in Rule 501(b) of Regulation D
under the Securities Act (“Regulation D”)), nor any person acting on any of their behalf (except for the Placement Agent, as to which neither the Company nor the Trust make any representation) has, directly or indirectly, made offers or
sales of any security, or solicited offers to buy any security, under circumstances that would require the registration under the Securities Act of any of the Securities. 
 (ii) Neither the Company nor the Trust, nor any of their Affiliates, nor any person acting on its or their behalf (except for the
Placement Agent, as to which neither the Company nor the Trust make any representation) has (i) offered for sale or solicited offers to purchase the Securities, (ii) engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with any offer or sale of any of the Securities, or (iii) engaged in any “directed selling efforts” within the meaning of Regulation S under the Securities Act (“Regulation
S”) with respect to the Securities. 
 (iii) The Securities (i) are not and have not been listed on a national
securities exchange registered under Section 6 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or quoted on a U.S. automated interdealer quotation system and (ii) are not of an open-end investment
company, unit investment trust or face-amount certificate company that are, or are required to be, registered under Section 8 of the Investment Company Act of 1940, as amended (the “Investment Company Act”), and the Securities
otherwise satisfy the eligibility requirements of Rule 144A(d)(3) promulgated pursuant to the Securities Act (“Rule 144A(d)(3)”). 
 (iv) Neither the Company nor the Trust is, and, immediately following consummation of the transactions contemplated hereby and the application of the net proceeds therefrom, neither the Company nor the Trust will be,
an “investment company” or an entity “controlled” by an “investment company,” in each case within the meaning of Section 3(a) of the Investment Company Act. 
 (v) Neither the Company nor the Trust has paid or agreed to pay to any person or entity, directly or indirectly, any fees or other
compensation for soliciting another to purchase any of the Securities. 
 4.2 Standing and Qualification of the Trust. The Trust has
been duly created and is validly existing in good standing as a statutory trust under the Delaware Statutory Trust Act, 12 Del. C. §3801, et seq. (the “Statutory Trust Act”) with all requisite power and authority to own
property and to conduct the business it transacts and proposes to transact and to enter into and perform its obligations under the Operative Documents to which it is a party. The Trust is duly qualified to transact business as a foreign entity and
is in good standing in each jurisdiction in which such qualification is necessary, except where the failure to so qualify or be in good standing would not have a material adverse effect on the condition (financial or otherwise), earnings, business,
prospects or assets of the Trust, whether or not occurring in the ordinary course of business. The Trust is not a party to, or otherwise bound by, any agreement other than the Operative Documents. The Trust is, and under current law will continue to
be, classified for federal income tax purposes as a grantor trust and not as an association or publicly traded partnership taxable as a corporation. 
  

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 4.3 Trust Agreement. The Trust Agreement has been duly authorized by the Company and, on the
Closing Date specified in Section 2.3.1, will have been duly executed and delivered by the Company and the Administrative Trustees of the Trust, and, assuming due authorization, execution and delivery by the Property Trustee and the
Delaware Trustee, will be a legal, valid and binding obligation of the Company and the Administrative Trustees, enforceable against them in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws affecting
creditors’ rights generally and to general principles of equity. Each of the Administrative Trustees of the Trust is an employee of the Company or one of its subsidiaries and has been duly authorized by the Company to execute and deliver the
Trust Agreement. To the knowledge of the Company and the Trust, the Trust is not in violation of any provision of the Statutory Trust Act. 
 4.4 Guarantee Agreement and the Indenture. The Guarantee and the Indenture have been duly authorized by the Company and, on the Closing Date, will have been duly executed and delivered by the Company, and, assuming due authorization,
execution and delivery by the Guarantee Trustee, in the case of the Guarantee, and by the Indenture Trustee, in the case of the Indenture, will be a legal, valid and binding obligation of the Company enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general principles of equity. 
 4.5 Preferred Securities and Common Securities. The Preferred Securities and the Common Securities have been duly authorized by the Trust and, when issued and delivered against payment therefor on the Closing
Date to the Purchaser in accordance with this Agreement and the Subscription Agreement, in the case of the Preferred Securities, and to the Company in accordance with the Common Securities Subscription Agreement between the Company and the Trust,
dated as of the Closing Date, in the case of the Common Securities, will be validly issued, fully paid and nonassessable and will represent undivided beneficial interests in the assets of the Trust entitled to the benefits of the Trust Agreement,
enforceable against the Trust in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general principles of equity. The issuance of the Securities is not subject
to preemptive or other similar rights. On the Closing Date, all of the issued and outstanding Common Securities will be directly owned by the Company free and clear of any pledge, security interest, claim, lien or other encumbrance (each, a
“Lien”). 
 4.6 Junior Subordinated Notes. The Junior Subordinated Notes have been duly authorized by the Company and, on
the Closing Date, will have been duly executed and delivered to the Indenture Trustee for authentication in accordance with the Indenture and, when authenticated in the manner provided for in the Indenture and delivered to the Trust against payment
therefor in accordance with the Junior Subordinated Note Subscription Agreement between the Company and the Trust, dated as of the Closing Date, will constitute legal, valid and binding obligations of the Company entitled to the benefits of the
Indenture enforceable against the Company in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general principles of equity. 
  

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 4.7 Placement Agreement. This Agreement has been duly authorized, executed and delivered by the
Company and the Trust and constitutes the legal, valid and binding obligation of the Company and the Trust, enforceable against the Company and the Trust in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors’ rights generally and to general principles of equity. 
 4.8 Defaults. Neither the issue and sale of the
Common Securities, the Preferred Securities or the Junior Subordinated Notes, nor the purchase of the Junior Subordinated Notes by the Trust, the execution and delivery of and compliance with the Operative Documents by the Company or the Trust, to
the extent a party thereto, the consummation of the transactions contemplated herein or therein, or the use of the proceeds therefrom, (i) will conflict with or constitute a breach of, or a default under, the Trust Agreement or the charter or
bylaws of the Company or any subsidiary of the Company or any applicable law, statute, rule, regulation, judgment, order, writ or decree of any government, governmental authority, agency or instrumentality or court, domestic or foreign, having
jurisdiction over the Trust, or the Company or any of its subsidiaries, or their respective properties or assets (collectively, “Governmental Entities”), (ii) will conflict with or constitute a violation or breach of, or a default or
Repayment Event (as defined below) under, or result in the creation or imposition of any Lien upon any property or assets of the Trust, the Company or any of the Company’s subsidiaries pursuant to any contract, indenture, mortgage, loan
agreement, note, lease or other agreement or instrument to which (A) the Trust, the Company or any of its subsidiaries is a party or by which it or any of them may be bound, or (B) any of the property or assets of any of them is subject,
or any judgment, order or decree of any court, Governmental Entity or arbitrator, except, in the case of this clause (ii), for such conflicts, breaches, violations, defaults, Repayment Events (as defined below) or Liens which (X) would not,
singly or in the aggregate, adversely affect the consummation of the transactions contemplated by the Operative Documents and (Y) would not, singly or in the aggregate, have a material adverse effect on the condition (financial or otherwise),
earnings, business, liabilities, prospects and assets (taken as a whole) or business prospects of the Company and its subsidiaries taken as a whole, whether or not occurring in the ordinary course of business (a “Material Adverse Effect”)
or (iii) require the consent, approval, authorization or order of any court or Governmental Entity. As used herein, a “Repayment Event” means any event or condition which gives the holder of any note, debenture or other evidence of
indebtedness (or any person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Trust or the Company or any of its subsidiaries prior to its scheduled
maturity. 
 4.9 Organization, Standing and Qualification of the Company. The Company has been duly incorporated and is validly
existing as a corporation in good standing under the laws of South Carolina, with all requisite corporate power and authority to own, lease and operate its properties and conduct the business it transacts and proposes to transact, and is duly
qualified to transact business and is in 

  

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good standing as a foreign corporation in each jurisdiction where the nature of its activities requires such qualification, except where the failure of the
Company to be so qualified would not, singly or in the aggregate, have a Material Adverse Effect. 
 4.10 Subsidiaries of the Company.
The Company has no subsidiaries that are material to its business, financial condition or earnings other than those subsidiaries listed in Schedule 4.10 attached hereto (each, a “Significant Subsidiary”, and collectively, the
“Significant Subsidiaries”). Each Significant Subsidiary has been duly organized and is validly existing and in good standing under the laws of the jurisdiction in which it is chartered or organized, with all requisite power and authority
to own its properties and conduct the business it transacts and proposes to transact. Each Significant Subsidiary is duly qualified to transact business and is in good standing as a foreign entity in each jurisdiction where the nature of its
activities requires such qualification, except where the failure of any such Significant Subsidiary to be so qualified would not, singly or in the aggregate, have a Material Adverse Effect. 
 4.11 Government Licenses; Laws. Each of the Trust, the Company and each of its subsidiaries hold all necessary approvals, authorizations, orders,
licenses, certificates and permits (collectively, “Government Licenses”) of and from Governmental Entities necessary to conduct its respective business as now being conducted, and neither the Trust, the Company nor any of the
Company’s subsidiaries has received any notice of proceedings relating to the revocation or modification of any such Government License, except where the failure to be so licensed or approved or the receipt of an unfavorable decision, ruling or
finding, would not, singly or in the aggregate, have a Material Adverse Effect; all of the Government Licenses are valid and in full force and effect, except where the invalidity or the failure of such Government Licenses to be in full force and
effect, would not, singly or in the aggregate, have a Material Adverse Effect; and the Company and its subsidiaries are in compliance with all applicable laws, rules, regulations, judgments, orders, decrees and consents, except where the failure to
be in compliance would not, singly or in the aggregate, have a Material Adverse Effect. 
 4.12 Stock. All of the issued and
outstanding shares of capital stock of the Company and each of its subsidiaries are validly issued, fully paid and nonassessable; all of the issued and outstanding capital stock of each subsidiary of the Company is owned by the Company, directly or
through subsidiaries, free and clear of any Lien, claim or equitable right; and none of the issued and outstanding capital stock of the Company or any subsidiary was issued in violation of any preemptive or similar rights arising by operation of
law, under the charter or by-laws of such entity or under any agreement to which the Company or any of its subsidiaries is a party. 
 4.13
Property. Each of the Trust, the Company and each subsidiary of the Company has good and marketable title to all of its respective real and personal properties, in each case free and clear of all Liens and defects, except for those that would
not, singly or in the aggregate, have a Material Adverse Effect; and all of the leases and subleases under which the Trust, the Company or any subsidiary of the Company holds properties are in full force and effect, except where the failure of such
leases and subleases to be in full force and effect would not, singly or in the aggregate, have a Material Adverse Effect and none of the Trust, the Company or any subsidiary of the Company has any notice of any claim of any sort that has been
asserted by anyone adverse to the rights of the Trust, the Company or any subsidiary of the Company under any such leases or subleases, or affecting or questioning the rights of such entity to the continued possession of the leased or subleased
premises under any such lease or sublease, except for such claims that would not, singly or in the aggregate, have a Material Adverse Effect. 
 4.14 Conflicts, Authorizations and Approvals. Neither the Company nor any of its subsidiaries is (i) in violation of its respective charter, bylaws or similar organizational documents or (ii) in default in the performance
or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement, note, lease or other agreement or instrument to 

  

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which either the Company or any such subsidiary is a party or by which it or any of them may be bound or to which any of the property or assets of any of
them is subject, except, in the case of clause (ii), where such default would not, singly or in the aggregate, have a Material Adverse Effect. No filing with, or authorization, approval, consent, license, order, registration, qualification or decree
of, any Governmental Entity, other than those that have been made or obtained, is necessary or required for the performance by the Trust or the Company of their respective obligations under the Operative Documents, as applicable, or the consummation
by the Trust and the Company of the transactions contemplated by the Operative Documents. 
 4.15 Holding Company Registration and Deposit
Insurance. The Company is duly registered as a bank holding company under the Bank Holding Company Act of 1956, as amended (the “Bank Holding Company Act”), and the regulations of the Board of Governors of the Federal Reserve System
(the “Federal Reserve”), and the deposit accounts of the Company’s subsidiary depository institutions are insured by the Federal Deposit Insurance Corporation (“FDIC”) to the fullest extent permitted by law and the rules and
regulations of the FDIC, and no proceeding for the termination of such insurance are pending or, to the knowledge of the Company or the Trust after due inquiry, threatened. 
 4.16 Financial Statements. 
 (a) The audited consolidated financial statements (including the notes thereto) and schedules of the Company and its consolidated subsidiaries at and for the three fiscal years ended December 30, 2005 (the “Financial
Statements”) and the interim unaudited consolidated financial statements of the Company and its consolidated subsidiaries at and for the quarter and nine months ended September 30, 2006 (the “Interim Financial Statements”)
provided to the Placement Agent are the most recently available audited and unaudited consolidated financial statements of the Company and its consolidated subsidiaries, respectively, and fairly present in all material respects, in accordance with
U.S. generally accepted accounting principles (“GAAP”), the financial position of the Company and its consolidated subsidiaries, and the results of operations and changes in financial condition as of the dates and for the periods therein
specified, subject, in the case of Interim Financial Statements, to year-end adjustments (which are expected to consist solely of normal recurring adjustments). Such consolidated financial statements and schedules have been prepared in accordance
with GAAP consistently applied throughout the periods involved (except as otherwise noted therein). 
 (b) The Company’s
report on Federal Reserve form FRY-9C, dated September 30, 2006 (the “FRY-9C”), provided to the Placement Agent is the most recently available such report, and the information therein fairly presents in all material respects the
financial position of the Company and its subsidiaries. None of the Company or any of its subsidiaries has been requested by a Governmental Entity to republish, restate or refile any regulatory or financial report. 
 (c) Since the respective dates of the Financial Statements, Interim Financial Statements and the FRY-9C, there has not been (A) any
material adverse change or development with respect to the condition (financial or otherwise), earnings, business, assets or business prospects of the Company and its subsidiaries, taken as a whole, whether or not occurring in the ordinary course of
business or (B) any dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock other than regular quarterly dividends on the Company’s common stock. 
  

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 (d) The accountants of the Company who certified the Financial Statements are independent
public accountants of the Company and its subsidiaries within the meaning of the Securities Act and the rules and regulations of the Securities and Exchange Commission (“SEC”) thereunder. 
 4.17 Regulatory Enforcement Matters. None of the Trust, the Company nor any of its subsidiaries, nor any of their respective officers, directors,
employees or representatives, is subject or is party to, or has received any notice from any Regulatory Agency (as defined below) that any of them will become subject or party to any investigation with respect to, any cease-and-desist order,
agreement, civil monetary penalty, consent agreement, memorandum of understanding or other regulatory enforcement action, proceeding or order with or by, or is a party to any commitment letter or similar undertaking to, or is subject to any
directive by, or has been a recipient of any supervisory letter from, or has adopted any board resolutions at the request or suggestion of, any Regulatory Agency that, in any such case, currently restricts in any material respect the conduct of
their business or that in any material manner relates to their capital adequacy, their credit policies, their management or their business (each, a “Regulatory Action”), nor has the Trust, the Company or any of its subsidiaries been
advised by any Regulatory Agency that it is considering issuing or requesting any such Regulatory Action; and there is no unresolved violation, criticism or exception by any Regulatory Agency with respect to any report or statement relating to any
examinations of the Trust, the Company or any of its subsidiaries, except where such unresolved violation, criticism or exception would not, singly or in the aggregate, have a Material Adverse Effect. The Company meets the required capital levels
for “well-capitalized” bank holding companies established by the Federal Reserve and in effect as of the date hereof. Each of the Company’s subsidiaries that is a depository institution, the accounts of which are insured by the FDIC
(i) is “well-capitalized” within the meaning of 12 U.S.C. §1831o and applicable implementing regulations thereunder; and (ii) is not, and has not been notified by any Regulatory Agency that it is, in “troubled
condition” within the meaning of 12 U.S.C. §1831i and applicable implementing regulations thereunder. As used herein, the term “Regulatory Agency” means any federal or state agency charged with the supervision or regulation of
depository institutions or holding companies of depository institutions, or engaged in the insurance of depository institution deposits, or any court, administrative agency or commission or other governmental agency, authority or instrumentality
having supervisory or regulatory authority with respect to the Trust, the Company or any of its subsidiaries. 
 4.18 No Undisclosed
Liabilities. None of the Trust, the Company nor any of its subsidiaries has any material liability, whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, and whether due or to become due, including any liability for taxes (and there is no past or present fact, situation, circumstance, condition or other basis for any present or future action, suit, proceeding, hearing, charge,
complaint, claim or demand against the Company or its subsidiaries that could give rise to any such liability), except for (i) liabilities set forth in the Financial Statements or the Interim Financial Statements and (ii) normal
fluctuations in the amount of the liabilities referred to in clause (i) above occurring in the ordinary course of business of the Trust, the Company and all of its subsidiaries since the date of the most recent balance sheet included in such
Financial Statements. 
  

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 4.19 Litigation. There is no action, suit or proceeding before or by any Governmental Entity,
arbitrator or court, domestic or foreign, now pending or, to the knowledge of the Company or the Trust after due inquiry, threatened against or affecting the Trust or the Company or any of the Company’s subsidiaries, except for such actions,
suits or proceedings that, if adversely determined, would not, singly or in the aggregate, adversely affect the consummation of the transactions contemplated by the Operative Documents or have a Material Adverse Effect; and the aggregate of all
pending legal or governmental proceedings to which the Trust or the Company or any of its subsidiaries is a party or of which any of their respective properties or assets is subject, including ordinary routine litigation incidental to the business,
are not expected to result in a Material Adverse Effect. 
 4.20 No Labor Disputes. No labor dispute with the employees of the Trust,
the Company or any of its subsidiaries exists or, to the knowledge of the executive officers of the Trust or the Company, is imminent, except those which would not, singly or in the aggregate, have a Material Adverse Effect. 
 4.21 Filings with the SEC. The documents of the Company filed with the SEC in accordance with the Exchange Act, from and including the
commencement of the fiscal year covered by the Company’s most recent Annual Report on Form 10-K, at the time they were or hereafter are filed by the Company with the SEC (collectively, the “1934 Act Reports”), complied and will comply
in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC thereunder (the “1934 Act Regulations”), and did not, and, at the date of this Agreement and on the Closing Date, do not and will
not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and other than
such instruments, agreements, contracts and other documents as are filed as exhibits to the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q or Current Reports on Form 8-K, there are no instruments, agreements, contracts or
documents of a character described in Item 601 of Regulation S-K promulgated by the SEC to which the Company or any of its subsidiaries is a party. The Company is in compliance with all currently applicable requirements of the Exchange Act
and the 1934 Act Regulations that were added by the Sarbanes-Oxley Act of 2002. 
 4.22 Deferral of Interest Payments on Junior
Subordinated Notes. The Company has no present intention to exercise its option to defer payments of interest on the Junior Subordinated Notes as provided in the Indenture. The Company believes that the likelihood that it would exercise its
rights to defer payments of interest on the Junior Subordinated Notes as provided in the Indenture at any time during which the Junior Subordinated Notes are outstanding is remote because of the restrictions that would be imposed on the
Company’s ability to declare or pay dividends or distributions on, or to redeem, purchase, acquire or make a liquidation payment with respect to, any of the Company’s capital stock and on the Company’s ability to make any payments of
principal, interest or premium on, or repay, repurchase or redeem, any of its debt securities that rank pari passu in all respects with or junior in interest to the Junior Subordinated Notes. 
  

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 4.23 Tax Returns. The Company and each of the Significant Subsidiaries have timely and duly filed
all Tax Returns (defined below) required to be filed by them, and all such Tax Returns are true, correct and complete in all material respects. The Company and each of the Significant Subsidiaries have timely and duly paid in full all material Taxes
required to be paid by them (whether or not such amounts are shown as due on any Tax Return). There are no federal, state, or other Tax audits or deficiency assessments proposed or pending with respect to the Company or any of the Significant
Subsidiaries, and no such audits or assessments are threatened. As used herein, the terms “Tax” or “Taxes” mean (i) all federal, state, local, and foreign taxes, and other assessments of a similar nature
(whether imposed directly or through withholding), including any interest, additions to tax, or penalties applicable thereto, imposed by any Governmental Entity, and (ii) all liabilities in respect of such amounts arising as a result of being a
member of any affiliated, consolidated, combined, unitary or similar group, as a successor to another person or by contract. As used herein, the term “Tax Returns” means all federal, state, local, and foreign Tax returns,
declarations, statements, reports, schedules, forms, and information returns and any amendments thereto filed or required to be filed with any Governmental Entity. 
 4.24 Taxes. The Trust is not subject to United States federal income tax with respect to income received or accrued on the Junior Subordinated Notes, interest payable by the Company on the Junior Subordinated
Notes is deductible by the Company, in whole or in part, for United States federal income tax purposes, and the Trust is not, or will not be within ninety (90) days of the date hereof, subject to more than a de minimis amount of other
taxes, duties or other governmental charges. There are no rulemaking or similar proceedings before the United States Internal Revenue Service or comparable federal, state, local or foreign government bodies which involve or affect the Company or any
subsidiary, which, if the subject of an action unfavorable to the Company or any subsidiary, could result in a Material Adverse Effect. 
 4.25 Books and Records. The books, records and accounts of the Company and its subsidiaries accurately and fairly reflect, in reasonable detail, the transactions in, and dispositions of, the assets of, and the results of operations
of, the Company and its subsidiaries. The Company and each of its subsidiaries maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences. 
 4.26 Insurance. The Company and the Significant Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts in all material respects as are customary in the businesses in which they are engaged or propose to engage after giving effect to the transactions contemplated hereby, including, but
not limited to, real or personal property owned or leased against theft, damage, destruction, act of vandalism and all other risks customarily insured against. All policies of insurance and fidelity or surety bonds insuring the Company or any of the
Significant Subsidiaries or the Company’s or Significant Subsidiaries’ respective businesses, assets, employees, officers and directors are in full force and effect. The Company 

  

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and each of the Significant Subsidiaries are in compliance with the terms of such policies and instruments in all material respects. Neither the Company nor
any Significant Subsidiary has reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at
a cost that would not have a Material Adverse Effect. Within the past twelve months, neither the Company nor any Significant Subsidiary has been denied any insurance coverage which it has sought or for which it has applied. 
 4.27 Corporate Funds. The Company and its subsidiaries or any person acting on behalf of the Company and its subsidiaries including, without
limitation, any director, officer, agent or employee of the Company or its subsidiaries has not, directly or indirectly, while acting on behalf of the Company and its subsidiaries (i) used any corporate funds for unlawful contributions, gifts,
entertainment or other unlawful expenses relating to political activity; (ii) made any unlawful payment to foreign or domestic government officials or employees or to foreign or domestic political parties or campaigns from corporate funds;
(iii) violated any provision of the Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any other unlawful payment. 
 4.28 OSHA Compliance. Neither the Company nor any of its subsidiaries is in violation of any federal or state law or regulation relating to occupational safety and health and the Company and its subsidiaries have received all
permits, licenses or other approvals required of them under applicable federal and state occupational safety and health and environmental laws and regulations to conduct their respective businesses, and the Company and each of its subsidiaries is in
compliance with all terms and conditions of any such permit, license or approval, except any such violation of law or regulation, failure to receive required permits, licenses or other approvals or failure to comply with the terms and conditions of
such permits, licenses or approvals which would not, singly or in the aggregate result in a Material Adverse Effect. 
 4.29
Information. The information provided by the Company and the Trust pursuant to this Agreement does not, as of the date hereof, and will not, as of the Closing Date, contain any untrue statement of a material fact or omit to state any material
fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 Section 5. Representations and
Warranties of the Placement Agent. The Placement Agent represents and warrants to, and agrees with, the Company and the Trust as follows: 
 5.1 General Solicitation. Neither the Placement Agent, nor any of the Placement Agent’s Affiliates, nor any person acting on the Placement Agent’s or the Placement Agent’s Affiliate’s behalf has engaged, or will
engage, in any form of “general solicitation or general advertising” (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Preferred Securities. 
 5.2 Purchaser. The Placement Agent has made such reasonable inquiry as is necessary to determine that the Purchaser is acquiring the Preferred
Securities for its own account and that the Purchaser does not intend to distribute the Preferred Securities in contravention of the Securities Act or any other applicable securities laws. 
  

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 5.3 Qualified Purchasers. The Placement Agent has not offered or sold, and will not arrange for
the offer or sale of, the Preferred Securities except (i) to those the Placement Agent reasonably believes are institutional “accredited investors” (within the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 of
Regulation D), (ii) in an offshore transaction complying with Rule 903 of Regulation S or (iii) in any other manner that does not require registration of the Preferred Securities under the Securities Act. In connection with each such sale,
the Placement Agent has taken or will take reasonable steps to ensure that the Purchaser is aware that (a) such sale is being made in reliance on an exemption under the Securities Act and (b) future transfers of the Preferred Securities
may not be made except in compliance with applicable securities laws. 
 5.4 Offering Circulars. Neither the Placement Agent nor its
representatives will include any nonpublic information about the Company, the Trust or any of their affiliates in any registration statement, prospectus, offering circular or private placement memorandum used in connection with any purchase of
Preferred Securities without the prior written consent of the Trust and the Company. 
 Section 6. Covenants of the Offerors. The Offerors
covenant and agree with the Placement Agent and the Purchaser as follows: 
 6.1 Compliance with Representations and Warranties.
During the period from the date of this Agreement to the Closing Date, the Offerors shall use their best efforts and take all action necessary or appropriate to cause their representations and warranties contained in Section 4 hereof to
be true as of the Closing Date, after giving effect to the transactions contemplated by this Agreement, as if made on and as of the Closing Date. 
 6.2 Sale and Registration of Securities. Neither the Company nor the Trust will, nor will either of them permit any of its Affiliates to, nor will either of them permit any person acting on its or their behalf (other than the
Placement Agent and the Purchaser and their respective affiliates) to, directly or indirectly, (i) resell any Preferred Securities that have been acquired by any of them, (ii) sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in the Securities Act) that would or could be integrated with the sale of the Preferred Securities in any manner that would require the registration of the Securities under the Securities Act or
(iii) make offers or sales of any such Security, or solicit offers to buy any such Security, under any circumstances that would require the registration of any of such Securities under the Securities Act. 
 6.3 Integration. Neither the Company nor the Trust will, until one hundred eighty (180) days following the Closing Date, without the
Purchaser’s prior written consent, offer, sell, contract to sell, grant any option to purchase or otherwise dispose of, directly or indirectly, (i) any Preferred Securities or other securities of the Trust other than as contemplated by
this Agreement or (ii) any other securities convertible into, or exercisable or exchangeable for, any Preferred Securities or other securities of the Trust. 
  

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 6.4 Qualification of Securities. The Company and the Trust will arrange for the qualification of
the Preferred Securities for sale under the laws of such jurisdictions as the Placement Agent may designate and will maintain such qualifications in effect so long as required for the sale of the Preferred Securities. The Company or the Trust, as
the case may be, will promptly advise the Placement Agent of the receipt by the Company or the Trust, as the case may be, of any notification with respect to the suspension of the qualification of the Preferred Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such purpose. 
 6.5 Use of Proceeds. The Trust shall use the
proceeds from the sale of the Preferred Securities and the Common Securities to purchase the Junior Subordinated Notes from the Company. 
 6.6 Investment Company. So long as any of the Securities are outstanding, (i) the Securities shall not be listed on a national securities exchange registered under Section 6 of the Exchange Act or quoted in a U.S. automated
interdealer quotation system, (ii) neither the Company nor the Trust shall be an open-end investment company, unit investment trust or face-amount certificate company that is, or is required to be, registered under Section 8 of the
Investment Company Act, and, the Securities shall otherwise satisfy the eligibility requirements of Rule 144A(d)(3) and (iii) neither of the Offerors shall engage, or permit any subsidiary to engage, in any activity which would cause it or any
subsidiary to be an “investment company” under the provisions of the Investment Company Act. 
 6.7 Solicitation and
Advertising. Neither the Company nor the Trust will, nor will either of them permit any of their Affiliates or any person acting on their behalf to (other than the Placement Agent, the Purchaser or their respective affiliates), (i) engage
in any “directed selling efforts” within the meaning of Regulation S under the Securities Act or (ii) engage in any form of “general solicitation or general advertising” (within the meaning of Regulation D) in connection
with any offer or sale of any of the Securities. 
 6.8 Compliance with Rule 144A(d)(4) under the Securities Act. So long as any of
the Securities are outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Offerors will, during any period in which they are not subject to and in compliance with Section 13 or
15(d) of the Exchange Act, or the Offerors are not exempt from such reporting requirements pursuant to and in compliance with Rule 12g3-2(b) under the Exchange Act, provide to each holder of such restricted securities and to each prospective
purchaser (as designated by such holder) of such restricted securities, upon the request of such holder or prospective purchaser in connection with any proposed transfer, any information required to be provided by Rule 144A(d)(4) under the
Securities Act, if applicable. The information provided by the Offerors pursuant to this Section 6.8 will not, at the date thereof, contain any untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading. If the Company and the Trust are required to register under the Exchange Act, such reports filed in compliance with Rule 12g3-2(b) shall be sufficient
information as required above. This covenant is intended to be for the benefit of the Purchaser, the holders of the Securities, and the prospective purchasers designated by such holders, from time to time, of the Securities. 
  

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 6.9 Reports. Each of the Company and the Trust shall furnish to (i) the Placement Agent,
(ii) the Purchaser and any subsequent holder of the Securities, and (iii) any beneficial owner of the Securities reasonably identified to the Company and the Trust (which identification may be made by either such beneficial owner or by the
Purchaser), a duly completed and executed certificate in the form attached hereto as Annex F, including the financial statements referenced in such Annex, which certificate and financial statements shall be so furnished by the Company and the
Trust not later than forty-five (45) days after the end of each of the first three fiscal quarters of each fiscal year of the Company and not later than ninety (90) days after the end of each fiscal year of the Company. 
 6.10 Clearing and Settlement. The Company and the Trust will cooperate with the Purchaser (or any holder of the Preferred Securities) and use all
commercially reasonable efforts to make the Preferred Securities eligible for clearance and settlement as book-entry securities through the facilities of the Depository Trust Company (“DTC”) and listed for trading through the PORTAL Market
(“PORTAL”), and will execute, deliver and comply with all representations made to, and agreements with, DTC and PORTAL. This Section 6.10 will survive delivery of and payment for the Preferred Securities. 
 Section 7. Covenants of the Placement Agent. The Placement Agent covenants and agrees with the Offerors that, during the period from the date of this Agreement to
the Closing Date, the Placement Agent shall use its best efforts and take all action necessary or appropriate to cause its representations and warranties contained in Section 5 to be true as of the Closing Date, after giving effect to
the transactions contemplated by this Agreement, as if made on and as of the Closing Date. The Placement Agent further covenants and agrees not to engage in hedging transactions with respect to the Preferred Securities unless such transactions are
conducted in compliance with the Securities Act. 
  

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 Section 8. Indemnification & Contribution. 
 8.1 Indemnification. 
 8.1.1 The
Company and the Trust agree jointly and severally to indemnify and hold harmless the Placement Agent, the Purchaser, a Subsequent Purchaser and their respective affiliates (collectively, the “Indemnified Parties”) and the Indemnified
Parties’ respective directors, officers, employees and agents and each person who “controls” the Indemnified Parties within the meaning of either the Securities Act or the Exchange Act against any and all losses, claims, damages or
liabilities, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any information or documents furnished or made available to the Purchaser or the
Placement Agent by or on behalf of the Company, (ii) the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (iii) the breach or alleged
breach of any representation, warranty or agreement of either Offeror contained herein, and agrees to reimburse each such Indemnified Party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any liability which the Company or the Trust may otherwise have. 
 8.1.2 Promptly after receipt by an Indemnified Party under this Section 8 of notice of the commencement of any action, such Indemnified Party
will, if a claim in respect thereof is to be made against the indemnifying party under this Section 8, promptly notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party
(i) will not relieve the indemnifying party from liability under Section 8.1.1 above unless and to the extent that such failure results in the forfeiture by the indemnifying party of material rights and defenses and (ii) will
not, in any event, relieve the indemnifying party from any obligations to any Indemnified Party other than the indemnification obligation provided in Section 8.1.1 above. The Placement Agent shall be entitled to appoint counsel to
represent the Indemnified Party in any action for which indemnification is sought. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the Indemnified Party) also be counsel to the Indemnified Party. In no event shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any local counsel) separate from their
own counsel for all Indemnified Parties in connection with any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances. An indemnifying party will not, without the
prior written consent of the Indemnified Parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification may be sought hereunder
(whether or not the Indemnified Parties are actual or potential parties to such claim, action, suit or proceeding) unless such settlement, compromise or consent includes an unconditional release of each Indemnified Party from all liability arising
out of such claim, action, suit or proceeding. 
  

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 8.2 Contribution. 
 8.2.1 In order to provide for just and equitable contribution in circumstances under which the indemnification provided for in Section 8.1 hereof is for any reason held to be unenforceable for the benefit
of an Indemnified Party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred
by such Indemnified Party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the Offerors, on the one hand, and the Placement Agent, on the other hand, from the offering of the Securities or
(ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above, but also the relative fault of
the Offerors, on the one hand, and the Placement Agent, on the other hand, in connection with the statements, omissions or breaches, which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant equitable
considerations. 
 8.2.2 The relative benefits received by the Offerors, on the one hand, and the Placement Agent, on the other hand, in
connection with the offering of the Securities shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities (net of the Fee but before deducting expenses) received by the Offerors and the Fee
paid to Morgan Keegan & Company, Inc. bear to the aggregate of such net proceeds and the Fee. 
 8.2.3 The Offerors and the
Placement Agent agree that it would not be just and equitable if contribution pursuant to this Section 8.2 were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable
considerations referred to above in this Section 8.2. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an Indemnified Party and referred to above in this Section 8.2 shall be deemed to
include any legal or other expenses reasonably incurred by such Indemnified Party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any
claim whatsoever based upon any such untrue or alleged untrue statement, omission or alleged omission or breach or alleged breach. 
 8.2.4
Notwithstanding any provision of this Section 8 to the contrary, the Placement Agent shall not be required to contribute any amount in excess of the amount of the Fee. 
 8.2.5 No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. 
 8.2.6 For purposes of this Section 8.2, the Placement
Agent, each person, if any, who controls the Placement Agent within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act and the respective partners, directors, officers, employees and agents of the Placement
Agent or any such controlling person shall have the same rights to contribution as the Placement Agent, while each officer and director of the Company, each trustee of the Trust and each person, if any, who controls the Company within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights to contribution as the Offerors. 
  

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 8.3 Additional Remedies. The indemnity and contribution agreements contained in this
Section 8 are in addition to any liability that the Offerors may otherwise have to any Indemnified Party. 
 8.4 Additional
Indemnification. The Company shall indemnify and hold harmless the Trust against all loss, liability, claim, damage and expense whatsoever, as due from the Trust under Sections 8.1 through 8.3 hereof. 
 Section 9. Rights and Responsibilities of Placement Agent. 
 9.1 Reliance. In performing its duties under this Agreement, the Placement Agent shall be entitled to rely upon any notice, signature or writing which it shall in good faith believe to be genuine and to be signed or presented by a
proper party or parties. The Placement Agent may rely upon any opinions or certificates or other documents delivered by the Offerors or their counsel or designees to either the Placement Agent or the Purchaser. 
 9.2 Rights of Placement Agent. In connection with the performance of its duties under this Agreement, the Placement Agent shall not be liable for
any error of judgment or any action taken or omitted to be taken unless the Placement Agent was grossly negligent or engaged in willful misconduct in connection with such performance or non-performance. No provision of this Agreement shall require
the Placement Agent to expend or risk its own funds or otherwise incur any financial liability on behalf of the Purchaser in connection with the performance of any of its duties hereunder. The Placement Agent shall be under no obligation to exercise
any of the rights or powers vested in it by this Agreement. 
 Section 10. Termination. This Agreement shall be subject to termination in the absolute
discretion of the Placement Agent, by notice given to the Company and the Trust prior to delivery of and payment for the Preferred Securities, if prior to such time (i) a downgrading shall have occurred in the rating accorded the Company’s
debt securities or preferred stock by any “nationally recognized statistical rating organization,” as that term is used by the SEC in Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, or such organization shall have publicly announced that
it has under surveillance or review, with possible negative implications, its rating of the Company’s debt securities or preferred stock, (ii) the Trust shall be unable to sell and deliver to the Purchaser at least $5,000,000 aggregate
stated liquidation value of Preferred Securities, (iii) the Company or any of its subsidiaries that is an insured depository institution shall cease to be “adequately-capitalized” within the meaning of 12 U.S.C. Section 1831 and
applicable regulations adopted thereunder, or any formal administrative or judicial action is taken by any appropriate federal banking agency against the Company or any such insured subsidiary for unsafe and unsound banking practices, or violations
of law, (iv) a suspension or material limitation in trading in securities generally shall have occurred on the New York Stock Exchange, (v) a suspension or material limitation in trading in any of the Company’s securities shall have
occurred on the exchange or quotation system upon which the Company’s securities are traded, if any, (vi) a general moratorium on commercial banking activities shall have been declared either by federal or South Carolina authorities or
(vii) there shall have occurred any outbreak or escalation of hostilities, or declaration 

  

 22 

 
by the United States of a national emergency or war or other calamity or crisis the effect of which on financial markets is such as to make it, in the
Placement Agent’s or the Purchaser’s judgment, impracticable or inadvisable to proceed with the offering or delivery of the Preferred Securities. 
 Section 11. Miscellaneous. 
 11.1 Disclosure Schedule. The term “Disclosure Schedule,” as used herein,
means the schedule, if any, attached to this Agreement that sets forth items the disclosure of which is necessary or appropriate as an exception to one or more representations or warranties contained in Section 4 hereof. The Disclosure
Schedule shall be arranged in paragraphs corresponding to the section numbers contained in Section 4. Nothing in the Disclosure Schedule shall be deemed adequate to disclose an exception to a representation or warranty made herein unless
the Disclosure Schedule identifies the exception with reasonable particularity and describes the relevant facts in reasonable detail. Without limiting the generality of the immediately preceding sentence, the mere listing (or inclusion of a copy) of
a document or other item in the Disclosure Schedule shall not be deemed adequate to disclose an exception to a representation or warranty made herein unless the representation or warranty has to do with the existence of the document or other item
itself. Information provided by the Company in response to any due diligence questionnaire shall not be deemed part of the Disclosure Schedule and shall not be deemed to be an exception to one or more representations or warranties contained in
Section 4 hereof unless such information is specifically included on the Disclosure Schedule in accordance with the provisions of this Section 11.1. 
 11.2 Notices. All communications hereunder will be in writing and effective only on receipt, and will be mailed, delivered by hand or courier or
sent by facsimile and confirmed: 
 If to the Placement Agent, to: 
 Credit Suisse Securities (USA) LLC 
 Eleven Madison Avenue 
 New York, New York 10010 
 Facsimile:
(212) 743-5043 
 Attention: The CDO Group 
  

 23 

 with a copy to: 
 Thacher Proffitt & Wood LLP 
 Two World Financial Center 
 New York, New York 10281 
 Facsimile:
(212) 912-7751 
 Telephone: (212) 912-7400 
 Attention: Mark I. Sokolow, Esq. 
 if to the Offerors, to: 
 Greer Bancshares Incorporated 
 1111 W.
Poinsett Street 
 Greer, South Carolina 29652 
 Facsimile: (864) 968-1437 
 Telephone: (864) 848-5120 
 Attention: Chief Financial Officer 
 All
such notices and communications shall be deemed to have been duly given (i) at the time delivered by hand, if personally delivered, (ii) five business days after being deposited in the mail, postage prepaid, if mailed, (iii) when
answered back, if telexed, (iv) the next business day after being telecopied, or (v) the next business day after timely delivery to a courier, if sent by overnight air courier guaranteeing next-day delivery. From and after the Closing, the
foregoing notice provisions shall be superseded by any notice provisions of the Operative Documents under which notice is given. The Placement Agent, the Company, and their respective counsel, may change their respective notice addresses, from time
to time, by written notice to all of the foregoing persons. 
 11.3 Parties in Interest, Successors and Assigns. This Agreement will
inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person other than the parties hereto
and the affiliates, directors, officers, employees, agents and controlling persons referred to in Section 8 hereof, their successors, assigns, heirs and legal representatives, and any Subsequent Purchaser, any right or obligation
hereunder. None of the rights or obligations of the Company or the Trust under this Agreement may be assigned, whether by operation of law or otherwise, without the Placement Agent’s prior written consent. The rights and obligations of the
Placement Agent and the Purchaser under this Agreement may be assigned by such party without the Company’s or the Trust’s consent; provided that the assignee assumes the obligations of such party under this Agreement. 
 11.4 Amendments. This Agreement may not be modified, amended, altered or supplemented, except upon the execution and delivery of a written
agreement by each of the parties hereto. 
 11.5 Counterparts and Facsimile. This Agreement may be executed by any one or more of the
parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument. This Agreement may be executed by any one or more of the parties hereto
by facsimile which shall be effective as delivery of a manually executed counterpart hereof. 
  

 24 

 11.6 Headings. The headings in this Agreement are for convenience of reference only and shall not
limit or otherwise affect the meaning hereof. 
 11.7 Governing Law. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW). 
 11.8 Submission to Jurisdiction. ANY LEGAL ACTION OR PROCEEDING BY OR AGAINST ANY PARTY HERETO OR WITH RESPECT TO OR ARISING OUT OF THIS AGREEMENT MAY BE BROUGHT IN OR REMOVED TO THE COURTS OF THE STATE OF NEW
YORK, IN AND FOR THE COUNTY OF NEW YORK, OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK (IN EACH CASE SITTING IN THE BOROUGH OF MANHATTAN). BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY ACCEPTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS (AND COURTS OF APPEALS THEREFROM) FOR LEGAL PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT. 
 11.9 Entire Agreement. This Agreement, together with the Operative Documents and the other documents delivered in connection with the transactions
contemplated by this Agreement, is intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter
contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, together with the Operative Documents and the other documents delivered in
connection with the transaction contemplated by this Agreement, supersedes all prior agreements and understandings between the parties with respect to such subject matter. 
 11.10 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held
invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being
intended that all of the Placement Agent’s and the Purchaser’s rights and privileges shall be enforceable to the fullest extent permitted by law. 
  

 25 

 11.11 Survival. The respective agreements, representations, warranties, indemnities and other
statements of the Company and the Trust and their respective officers or trustees and of the Placement Agent set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf
of the Placement Agent, the Purchaser, the Company or the Trust or any of their respective officers, directors, trustees or controlling persons, and will survive delivery of and payment for the Preferred Securities. The provisions of Sections
2.4 and 8 shall survive the termination or cancellation of this Agreement. 
 Signatures appear on the following page

  

 26 

 If this Agreement is satisfactory to you, please so indicate by signing the acceptance of this Agreement
and deliver such counterpart to the Offerors whereupon this Agreement will become binding between us in accordance with its terms. 
  

			
	Very truly yours,
	
	GREER BANCSHARES INCORPORATED
		
	By:	 	  
		 	Name:
		 	Title:
	
	GREER CAPITAL TRUST II
		
	By:	 	Greer Bancshares Incorporated, as Depositor
		
	By:	 	  
		 	Name:
		 	Title:

			
	 CONFIRMED AND ACCEPTED
 as of the date first
set forth above

	
	CREDIT SUISSE SECURITIES (USA) LLC, as Placement Agent
		
	By:	 	  
		 	Name:
		 	Title:

  

 27 

 Schedule 4.10 
 List of Significant Subsidiaries 
 Greer State Bank 
  

 28 

 EXHIBIT A 
 FORM OF SUBSCRIPTION AGREEMENT 
 PREFERRED SECURITIES SUBSCRIPTION AGREEMENT 
 December 28, 2006 
 THIS PREFERRED
SECURITIES SUBSCRIPTION AGREEMENT (this “Agreement”) made among Greer Capital Trust II (the “Trust”), a statutory trust created under the Delaware Statutory Trust Act (12 Del. C. §3801, et seq.), Greer
Bancshares Incorporated, a South Carolina corporation, with its principal offices located at 1111 W. Poinsett Street, Greer, South Carolina 29652 (the “Company” and, together with the Trust, the “Offerors”), Credit Suisse, acting
through its Cayman Islands branch (the “Purchaser”), and Credit Suisse Securities (USA) LLC (as to Sections 1.2, 1.3 and Article III). 
 RECITALS: 
 A. The Trust desires to issue an aggregate of FIVE MILLION AND 00/100 ($5,000,000) DOLLARS of its Floating Rate
Preferred Securities (the “Preferred Securities”), liquidation amount $1,000 per Preferred Security, representing an undivided beneficial interest in the assets of the trust (the “Offering”), to be issued pursuant to an Amended
and Restated Trust Agreement (the “Trust Agreement”) by and among the Company, Wilmington Trust Company, as Property Trustee (the “Property Trustee”), Wilmington Trust Company, as Delaware Trustee, the administrative trustees
named therein and the Holders (as defined therein), which Preferred Securities are to be guaranteed by the Company with respect to distributions and payments upon liquidation, redemption and otherwise pursuant to the terms of a Guarantee Agreement
between the Company and Wilmington Trust Company, as Guarantee Trustee (the “Guarantee”); and 
 B. The proceeds from the sale of
the Preferred Securities will be combined with the proceeds from the sale by the Trust to the Company of its Common Securities, and will be used by the Trust to purchase an equivalent amount of Floating Rate Junior Subordinated Notes of the Company
(the “Notes”) to be issued by the Company pursuant to an indenture (the “Indenture”) to be executed by the Company and Wilmington Trust Company, as Indenture Trustee; and 
 C. In consideration of the premises and the mutual representations and covenants hereinafter set forth, the parties hereto agree as follows: 

Article I 
 PURCHASE AND SALE OF PREFERRED
SECURITIES 
 1.1 Upon the execution of this Agreement, the Purchaser hereby agrees to purchase, directly or indirectly, from the Trust,
5,000 Preferred Securities at a price equal to $1,000 per Preferred Security for an aggregate purchase price equal to FIVE MILLION AND 00/100 DOLLARS ($5,000,000) (the “Purchase Price”), and the Trust agrees to sell such Preferred
Securities to the Purchaser for said Purchase Price. The rights and preferences of the Preferred Securities are set forth in the Trust Agreement. The closing of the sale and 

  

 A-1 

 
purchase of the Preferred Securities by the Offerors to the Purchaser shall occur on December 28, 2006, or such other later date (not later than
January 26, 2007) as the parties may designate (the “Closing Date”). The Purchase Price is payable in immediately available funds on the Closing Date. The Offerors shall provide the Purchaser payment instructions no later than two
(2) days prior to the Closing Date. 
 1.2 The Placement Agreement, dated as of December 28, 2006 (the “Placement
Agreement”), among the Offerors and the Placement Agent identified therein (the “Placement Agent”) includes certain representations and warranties, covenants and conditions to closing and certain other matters governing the Offering.
The Placement Agreement is hereby incorporated by reference into this Agreement, and the Purchaser shall be entitled to each of the benefits of the Placement Agent and the Purchaser under the Placement Agreement, subject to the limitations,
qualifications, acknowledgements and exceptions contained therein (except for the rights of the Placement Agent under Sections 2.1 and 2.4 of the Placement Agreement) and shall be entitled to enforce the obligations of the Offerors under such
Placement Agreement as fully as if the Purchaser were a party to such Placement Agreement. 
 1.3 The Purchaser is purchasing the Preferred
Securities in its capacity as a warehouse entity, and the Purchaser may resell the Preferred Securities to a subsequent purchaser (any such purchaser from the Purchaser and, if such purchaser is a warehouse entity, the next subsequent purchaser that
is not a warehouse entity, being referred to hereinafter as a “Subsequent Purchaser”). Upon transfer of the Preferred Securities to a Subsequent Purchaser, the Subsequent Purchaser shall be entitled to each of the benefits of the Placement
Agent and the Purchaser under the Placement Agreement, subject to the limitations, qualifications, acknowledgments and exceptions contained therein and herein (except for the rights of the Placement Agent under Sections 2.1 and 2.4 of the Placement
Agreement) and this Agreement, and shall be entitled to enforce the obligations of the Offerors under the Placement Agreement and this Agreement, as fully as if the Subsequent Purchaser were a party to the Placement Agreement and this Agreement.

 Article II 
 REPRESENTATIONS AND
WARRANTIES OF PURCHASER 
 2.1 The Purchaser understands and acknowledges that the Preferred Securities, the Notes and the Guarantee
(i) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any other applicable securities law, (ii) are being offered for sale by the Trust in transactions not requiring registration
under the Securities Act and (iii) may not be offered, sold, pledged or otherwise transferred by the Purchaser except in compliance with the registration requirements of the Securities Act or any other applicable securities laws, pursuant to an
exemption therefrom or in a transaction not subject thereto. 
 2.2 The Purchaser represents and warrants that it is purchasing the Preferred
Securities for its own account and not with a view to, or for offer or sale in connection with, any distribution thereof in violation of the Securities Act or other applicable securities laws, 

  

 A-2 

 
subject to any requirement of law that the disposition of its property be at all times within its control and subject to its ability to resell such Preferred
Securities pursuant to an effective registration statement under the Securities Act or under Rule 144A or any other exemption from registration available under the Securities Act or any other applicable securities law. The Purchaser understands that
no public market exists for any of the Preferred Securities, and that it is unlikely that a public market will ever exist for the Preferred Securities. 
 2.3 The Purchaser represents and warrants that (a) it has consulted with its own legal, regulatory, tax, business, investment, financial and accounting advisers in connection herewith to the extent it has deemed
necessary; (b) it has had a reasonable opportunity to ask questions of and receive answers from officers and representatives of the Offerors concerning their respective financial condition and results of operations and the purchase of the
Preferred Securities and any such questions have been answered to its satisfaction; (c) it has had the opportunity to review all publicly available records and filings concerning the Offerors and it has carefully reviewed such records and
filings that it considers relevant to making an investment decision; and (d) it has made its own investment decisions based upon its own judgment, due diligence and advice from such advisers as it has deemed necessary and not upon any view
expressed by the Offerors or the Placement Agent. 
 2.4 The Purchaser represents and warrants that it is (i) an institutional
“accredited investor” within the meaning of subparagraph (a)(1), (2), (3) or (7) of Rule 501 of Regulation D under the Securities Act, and (ii) a “qualified institutional buyer” within the meaning of Rule 144A
under the Securities Act. 
 Article III 
 MISCELLANEOUS 
 3.1 All communications hereunder will be in writing and effective only on receipt, and will be mailed, delivered by
hand or courier or sent by facsimile and confirmed: 
  

			
	 To the Offerors:
	  	 Greer Bancshares Incorporated
 1111 W. Poinsett
Street
 Greer, South Carolina 29652
 Fax:
(864) 968-1437
 Attention: Chief Financial Officer

		
	 To the Purchaser:
	  	 Credit Suisse, acting through its Cayman Islands branch
 c/o Credit Suisse Securities (USA) LLC
 Eleven Madison Avenue
 New York, New York 10010
 Fax: (212) 743-5043
 Attention: The CDO Group

  

 A-3 

 with a copy to: 
 Thacher Proffitt & Wood LLP 
 Two World Financial Center 
 New York, New York 10281 
 Facsimile: (212) 912-7751 
 Telephone: (212) 912-7400 
 Attention: Mark I. Sokolow, Esq. 
 All such notices and communications shall be deemed to have been duly
given (i) at the time delivered by hand, if personally delivered, (ii) five business days after being deposited in the mail, postage prepaid, if mailed, (iii) when answered back, if telexed, (iv) the next business day after being
telecopied, or (v) the next business day after timely delivery to a courier, if sent by overnight air courier guaranteeing next-day delivery. From and after the Closing, the foregoing notice provisions shall be superseded by any notice
provisions of the Operative Documents under which notice is given. The Offerors, the Purchaser, and their respective counsel, may change their respective notice addresses, from time to time, by written notice to all of the foregoing persons.

 3.2 This Agreement shall not be changed, modified or amended except by a writing signed by the parties to be charged, and this Agreement
may not be discharged except by performance in accordance with its terms or by a writing signed by the party to be charged. 
 3.3 Upon the
execution and delivery of this Agreement by the Purchaser, this Agreement shall become a binding obligation of the Purchaser with respect to the purchase of Preferred Securities as herein provided. 
 3.4 NOTWITHSTANDING THE PLACE WHERE THIS AGREEMENT MAY BE EXECUTED BY ANY OF THE PARTIES HERETO, THE PARTIES EXPRESSLY AGREE THAT ALL THE TERMS AND
PROVISIONS HEREOF SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. 
 3.5 The parties agree to execute and deliver all such further documents, agreements and instruments and take such other and further action as may be necessary or appropriate to carry out the purposes and intent of
this Agreement. 
 3.6 This Agreement may be executed in one or more counterparts each of which shall be deemed an original, but all of which
shall together constitute one and the same instrument. Delivery of an executed signature page of this Agreement by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. 
 3.7 In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every 

  

 A-4 

 
other respect and of the remaining provisions hereof shall not be in any way impaired or affected, it being intended that all of the Offerors’ and the
Purchaser’s rights and privileges shall be enforceable to the fullest extent permitted by law. 
 3.8 No recourse shall be had to any
subscriber, officer, director, employee, trustee, equity holder, certificate holder, incorporator or agent of the Purchaser or their respective successors or assigns for any obligations hereunder. The Offerors, severally and jointly, further agree
(i) not to take any action in respect of any claims hereunder against any subscriber, officer, director, employee, trustee, equity holder, certificate holder, incorporator or agent of the Purchaser or any of their successors or assigns that is
an investment vehicle issuing collateralized debt obligations and (ii) not to institute against any successor or assign of the Purchaser that is an investment vehicle issuing collateralized debt obligations any insolvency, bankruptcy,
reorganization, liquidation or similar proceedings in any jurisdiction until one year and one day or, if longer, the applicable preference period then in effect, as the case may be, shall have elapsed since the final payments to the holders of the
securities issued by such investment vehicle. 
 Signatures appear on the following page 
  

 A-5 

 IN WITNESS WHEREOF, this Agreement is agreed to and accepted as of the day and year first written above.

 CREDIT SUISSE, ACTING THROUGH ITS CAYMAN 
 ISLANDS BRANCH, as Purchaser, 
 [By:]

  

			
		
	By:	 	  
		 	Name:
		 	Title:

  

			
	GREER BANCSHARES INCORPORATED
		
	By:	 	  
		 	Name:
		 	Title:
	
	 GREER CAPITAL TRUST II
 By: Greer Bancshares Incorporated, as Depositor

		
	By:	 	  
		 	Name:
		 	Title:
	
	 CREDIT SUISSE SECURITIES (USA) LLC
 (for purposes of the rights and obligations in
 Sections 1.2, 1.3 and Article
III only)

		
	By:	 	  
		 	Name:
		 	Title:

  

 A-6 

 EXHIBIT B-1 
 FORM OF THACHER PROFFITT & WOOD LLP OPINION 
 Pursuant to Section 3.2(a) of the Placement
Agreement, Thacher Proffitt & Wood LLP, special counsel for the Placement Agent and the Purchaser, shall deliver an opinion to the effect that: 
  

	(i)	the Company and each Significant Subsidiary is validly existing as a corporation in good standing under the laws of the jurisdiction in which it is chartered or organized;

  

	(ii)	the Company has corporate power and authority to (a) execute and deliver, and to perform its obligations under, the Operative Documents to which it is a party and
(b) issue and perform its obligations under the Notes; 

  

	(iii)	neither the issue and sale of the Common Securities, the Preferred Securities or the Junior Subordinated Notes, nor the purchase by the Trust of the Junior Subordinated Notes, nor
the execution and delivery of and compliance with the Operative Documents by the Company or the Trust nor the consummation of the transactions contemplated thereby will constitute a breach or violation of the Trust Agreement or the charter or
by-laws of the Company; 

  

	(iv)	the Amended and Restated Trust Agreement has been duly authorized, executed and delivered by the Company and duly executed and delivered by the Administrative Trustees;

  

	(v)	each of the Guarantee and the Indenture has been duly authorized, executed and delivered by the Company and, assuming it has been duly authorized, executed and delivered by the
Guarantee Trustee and the Indenture Trustee, respectively, constitutes a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency and similar laws
affecting creditors’ rights generally and to general principles of equity; 

  

	(vi)	the Junior Subordinated Notes have been duly authorized and executed by the Company and delivered to the Indenture Trustee for authentication in accordance with the Indenture and,
when authenticated in accordance with the provisions of the Indenture and delivered to the Trust against payment therefor, will constitute legal, valid and binding obligations of the Company entitled to the benefits of the Indenture and enforceable
against the Company in accordance with their terms, subject to applicable bankruptcy, insolvency and similar laws affecting creditors’ rights generally and to general principles of equity; 

  

	(vii)	the Trust is not, and, following the issuance of the Preferred Securities and the consummation of the transactions contemplated by the Operative Documents and the application of the
proceeds therefrom, the Trust will not be, an “investment company” or an entity “controlled” by an “investment company,” in each case within the meaning of Section 3(a) of the Investment Company Act;

  

 B-1-1 

	(viii)	assuming (a) the accuracy of the representations and warranties, and compliance with the agreements contained in the Placement Agreement and (b) that the Preferred
Securities are sold in a manner contemplated by, and in accordance with the Placement Agreement, the Subscription Agreement and the Amended and Restated Trust Agreement, it is not necessary in connection with the offer, sale and delivery of the
Preferred Securities by the Trust to the Purchaser, to register any of the Securities under the Securities Act or to require qualification of the Indenture under the Trust Indenture Act of 1939, as amended; 

  

	(ix)	the Placement Agreement and the Subscription Agreement have been duly authorized, executed and delivered by the Company and the Trust; and, 

  

	(x)	the Indenture constitutes a valid and binding instrument of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with its terms, except as
rights to indemnity and contribution thereunder may be limited under applicable law or public policy, and subject to the qualifications that (i) enforcement thereof may be limited by bankruptcy, insolvency, receivership, reorganization,
liquidation, voidable preference, moratorium or other laws (including the laws of fraudulent conveyance and transfer) or judicial decisions affecting the enforcement of creditors’ rights generally or the reorganization of financial institutions
and (ii) the enforceability of the Indenture Trustee’s obligations thereunder is subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and to the effect of
certain laws and judicial decisions upon the availability and enforceability of certain remedies, including the remedies of specific performance and self-help. 

 In rendering such opinions, such counsel may (A) state that its opinion is limited to the laws of the State of New York, the Delaware General
Corporation Law and the federal laws of the United States; (B) as to matters involving the application of laws of any jurisdiction other than the State of New York and the Delaware General Corporation Law or the federal laws of the
United States, (i) rely, to the extent deemed proper and specified in such opinion, upon the opinion of other counsel of good standing believed to be reliable and who are satisfactory to the Purchaser or (ii) assume such law is
substantially similar to the law of the State of New York and, (C) as to matters of fact, rely to the extent deemed proper, on certificates of responsible officers of the Company and public officials. 
  

 B-1-2 

 EXHIBIT B-2 
 FORM OF COMPANY COUNSEL OPINION 
 OR OFFICERS’ CERTIFICATE 
 Pursuant to Section 3.2(b) of the Placement Agreement, either (i) counsel for the Company shall deliver an opinion, or (ii) the [General
Counsel/Chief Legal Officer] of the Company shall deliver an opinion, or, (iii) if the Company does not have a General Counsel or Chief Legal Officer, the [Chief Executive Officer/President/Executive Vice President] and [Chief Financial
Officer/Treasurer/Assistant Treasurer] of the Company shall provide an Officers’ Certificate, to the effect that: 
  

	(i)	all of the issued and outstanding shares of capital stock of each Significant Subsidiary are owned of record by the Company, and the issuance of the Preferred Securities and the
Common Securities is not subject to any contractual preemptive rights known to such [counsel/officer]; 

  

	(ii)	no consent, approval, authorization or order of any court or governmental authority is required for the issue and sale of the Common Securities, the Preferred Securities or the
Junior Subordinated Notes, the purchase by the Trust of the Junior Subordinated Notes, the execution and delivery of and compliance with the Operative Documents by the Company or the Trust or the consummation of the transactions contemplated in the
Operative Documents, except such approvals (specified in such [opinion/certificate]) as have been obtained; 

  

	(iii)	to the knowledge of such [counsel/officer], there is no action, suit or proceeding before or by any government, governmental instrumentality, arbitrator or court, domestic or
foreign, now pending or threatened against or affecting the Trust or the Company or any Significant Subsidiary that could adversely affect the consummation of the transactions contemplated by the Operative Documents or could have a Material Adverse
Effect; 

  

	(iv)	the Company is duly registered as a bank holding company under the Bank Holding Company Act and the regulations thereunder of the Federal Reserve Board, and the deposit accounts of
the Company’s banking subsidiary are insured by the FDIC to the fullest extent permitted by law and the rules and regulations of the FDIC, and no proceeding for the termination of such insurance are pending or, to such person’s knowledge,
threatened; 

  

	(v)	 The execution, delivery and performance of the Operative Documents, as applicable, by the Company and the Trust and the consummation by the Company and the Trust of
the transactions contemplated by the Operative Documents, as applicable, (a) will not result in any violation of the charter or bylaws of the Company, the charter or bylaws of any Significant Subsidiary, the Amended and Restated Trust Agreement
or the Certificate of Trust, and (b) will not conflict with, or result in a breach of any of the terms or provisions of, or constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, or
result in the creation or imposition of any lien, charge and encumbrance upon any assets or properties of the 

  

 B-2-1 

	 	 
Company or any Significant Subsidiary under, (A) any agreement, indenture, mortgage or instrument that the Company or any Significant Subsidiary of the
Company is a party to or by which it may be bound or to which any of its assets or properties may be subject, or (B) any existing applicable law, rule or administrative regulation [for General Counsel only: except that I express no opinion with
respect to the securities laws of the State of Delaware] of any court or governmental agency or authority having jurisdiction over the Company or any Significant Subsidiary of the Company or any of their respective assets or properties, except in
case of (b), where any such violation, conflict, breach, default, lien, charge or encumbrance, would not have a material adverse effect on the assets, properties, business, results of operations or financial condition of the Company and its
subsidiaries, taken as whole. 

 All terms used but not defined herein shall have the meanings assigned to them in the
Placement Agreement. A Subsequent Purchaser shall be entitled to rely on this [opinion/certificate]. 
 [Applies only to in-house counsel
opinion] [In rendering such opinions, such counsel may (A) state that the above is limited to the laws of the States of [Jurisdiction of bar admission], (B) rely as to matters of fact, to the extent deemed proper, on certificates of
responsible officers of the Company and public officials.] 
  

 B-2-2 

 EXHIBIT B-3 
 FORM OF TAX COUNSEL OPINION 
 Pursuant to Section 3.2(c) of the Placement Agreement, Leatherwood Walker
Todd & Mann, P.C., tax counsel for the Offerors, shall deliver an opinion to the effect that: 
  

	(i)	the Trust will be classified for United States federal income tax purposes as a grantor trust and not as an association or a publicly traded partnership taxable as a corporation;
and 

  

	(ii)	for United States federal income tax purposes, the Junior Subordinated Notes will constitute indebtedness of the Company. 

 In rendering such opinions, such counsel may (A) state that its opinion is limited to the laws of the State of [Jurisdiction of bar admission] and
the federal laws of the United States and (B) rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of the Company and public officials. 
  

 B-3-1 

 EXHIBIT B-4 
 FORM OF DELAWARE COUNSEL TRUST OPINION 
 Pursuant to Section 3.2(d) of the Placement Agreement, Morris
James LLP, special Delaware counsel for the Trust, shall deliver an opinion to the effect that: 
  

	(i)	The Trust has been duly created and is validly existing in good standing as a statutory trust under the Delaware Statutory Trust Act, and all filings required under the laws of the
State of Delaware with respect to the creation and valid existence of the Trust as a statutory trust have been made. 

  

	(ii)	Under the Delaware Statutory Trust Act and the Amended and Restated Trust Agreement, the Trust has the trust power and authority (i) to own property and conduct its business,
all as described in the Amended and Restated Trust Agreement, (ii) to execute and deliver, and to perform its obligations under, each of the Placement Agreement, the Subscription Agreement, the Common Securities Subscription Agreement, the
Junior Subordinated Note Subscription Agreement and the Preferred Securities and the Common Securities and (iii) to purchase and hold the Junior Subordinated Notes. 

  

	(iii)	Under the Delaware Statutory Trust Act, the certificate attached to the Amended and Restated Trust Agreement as Exhibit C is an appropriate form of certificate to evidence
ownership of the Preferred Securities. The Preferred Securities have been duly authorized by the Amended and Restated Trust Agreement and, when issued in accordance with the Amended and Restated Trust Agreement and delivered against payment therefor
in accordance with the Amended and Restated Trust Agreement and the Subscription Agreement, the Preferred Securities will be validly issued and (subject to the qualifications set forth in this paragraph) fully paid and nonassessable and will
represent undivided beneficial interests in the assets of the Trust, and the Preferred Security Holders will be entitled to the benefits of the Amended and Restated Trust Agreement. The Preferred Security Holders as beneficial owners of the Trust,
will be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the General Corporation Law of the State of Delaware. The Preferred Security Holders may be obligated to make
payments or provide indemnity or security as set forth in the Amended and Restated Trust Agreement. 

  

	(iv)	The Common Securities have been duly authorized by the Amended and Restated Trust Agreement and, when issued in accordance with the Amended and Restated Trust Agreement and
delivered against payment therefor in accordance with the Amended and Restated Trust Agreement and the Common Securities Subscription Agreement, will be validly issued and will represent undivided beneficial interests in the assets of the Trust, and
the Common Security Holder will be entitled to the benefits of the Amended and Restated Trust Agreement. 

  

 B-4-1 

	(v)	Under the Delaware Statutory Trust Act and the Amended and Restated Trust Agreement, the issuance of the Preferred Securities and the Common Securities is not subject to preemptive
or other similar rights. 

  

	(vi)	Under the Delaware Statutory Trust Act and the Amended and Restated Trust Agreement, the execution and delivery by the Trust of the Placement Agreement, the Subscription Agreement,
the Common Securities Subscription Agreement and the Junior Subordinated Note Subscription Agreement, and the performance by the Trust of its obligations thereunder, have been duly authorized by all necessary trust action on the part of the Trust.

  

	(vii)	The Amended and Restated Trust Agreement constitutes a legal, valid and binding obligation of the Company and the Trustees, enforceable against the Company and the Trustees, in
accordance with its terms. 

  

	(viii)	The issuance and sale by the Trust of the Preferred Securities and the Common Securities, the purchase by the Trust of the Junior Subordinated Notes, the execution, delivery and
performance by the Trust of the Placement Agreement, the Subscription Agreement, the Common Securities Subscription Agreement and the Junior Subordinated Note Subscription Agreement, the consummation by the Trust of the transactions contemplated by
the Placement Agreement, the Subscription Agreement, the Common Securities Subscription Agreement and the Junior Subordinated Note Subscription Agreement and compliance by the Trust with its obligations thereunder are not prohibited by (i) the
Certificate of Trust or the Amended and Restated Trust Agreement or (ii) any law or regulation of the State of Delaware applicable to the Trust. 

  

	(ix)	No filing with, or authorization, approval, consent, license, order, registration, qualification or decree of, any Delaware court or Delaware governmental authority or Delaware
agency is required solely in connection with the issuance and sale by the Trust of the Trust Securities, the purchase by the Trust of the Junior Subordinated Notes, the execution, delivery and performance by the Trust of the Placement Agreement, the
Subscription Agreement, the Common Securities Subscription Agreement and the Junior Subordinated Note Subscription Agreement, the consummation by the Trust of the transactions contemplated by the Placement Agreement and the Subscription Agreement
and compliance by the Trust with its obligations thereunder. 

  

	(x)	The Preferred Security Holders (other than those Preferred Security Holders who reside or are domiciled in the State of Delaware) will have no liability for income taxes imposed by
the State of Delaware solely as a result of their participation in the Trust and the Trust will not be liable for any income tax imposed by the State of Delaware. 

 In rendering such opinions, such counsel may (A) state that its opinion is limited to the laws of the State of Delaware and (B) rely as to matters of fact, to the extent deemed proper, on certificates of
responsible officers of the Company and the Trust and public officials. 
  

 B-4-2 

 EXHIBIT B-5 
 FORM OF TRUSTEE COUNSEL OPINION 
 Pursuant to Section 3.2(e) of the Placement Agreement, Morris James
LLP, special counsel for the Property Trustee, the Guarantee Trustee, the Delaware Trustee and the Indenture Trustee, shall deliver an opinion to the effect that: 
  

	(i)	Wilmington Trust Company is duly incorporated and validly existing as a Delaware banking corporation in good standing under the laws of the State of Delaware with trust powers and
its principal place of business in the State of Delaware. 

  

	(ii)	Wilmington Trust Company has requisite corporate power and authority to execute and deliver, and to perform its obligations under, the Amended and Restated Trust Agreement, the
Guarantee Agreement and the Indenture. 

  

	(iii)	The execution, delivery, and performance by Wilmington Trust Company of the Amended and Restated Trust Agreement, the Guarantee Agreement and the Indenture have been duly authorized
by all necessary corporate action on the part of Wilmington Trust Company, and the Amended and Restated Trust Agreement, the Guarantee Agreement and the Indenture have been duly executed and delivered by Wilmington Trust Company.

  

	(iv)	The Amended and Restated Trust Agreement is a legal, valid and binding obligation of Wilmington Trust Company, enforceable against Wilmington Trust Company, in accordance with its
terms. 

  

	(v)	No approval, authorization or other action by, or filing with, any governmental authority or agency under any law or regulation of the State of Delaware or the United States of
America governing the trust powers of Wilmington Trust Company is required solely in connection with the execution, delivery and performance by Wilmington Trust Company of the Amended and Restated Trust Agreement, the Guarantee Agreement and the
Indenture, except for the filing of the Certificate of Trust with the Secretary of State, which Certificate of Trust has been duly filed with the Secretary of State. 

  

	(vi)	The execution, delivery and performance of the Amended and Restated Trust Agreement, the Guarantee Agreement and the Indenture by Wilmington Trust Company are not prohibited by
(i) the Charter or Bylaws of Wilmington Trust Company, (ii) any law or regulation of the State of Delaware or the United States of America governing the trust powers of Wilmington Trust Company, or (iii) to our knowledge (based and
relying solely on the Officer Certificates), any agreements or instruments to which Wilmington Trust Company is a party or by which Wilmington Trust Company is bound or any judgment or order applicable to Wilmington Trust Company.

  

 B-5-1 

	(vii)	The Junior Subordinated Notes delivered on the date hereof have been authenticated by due execution thereof and delivered by Wilmington Trust Company, as Indenture Trustee, in
accordance with the Company Order. The Preferred Securities delivered on the date hereof have been authenticated by due execution thereof and delivered by Wilmington Trust Company, as Property Trustee, in accordance with the Trust Order.

 In rendering such opinions, such counsel may (A) state that its opinion is limited to the laws of the State of Delaware
and the federal laws of the United States governing the trust powers of Wilmington Trust Company and (B) rely as to matters of fact, to the extent deemed proper, on certificates of responsible officers of Wilmington Trust Company and
public officials. 
  

 B-5-2 

 Annex F 
 OFFICER’S CERTIFICATE 
 The undersigned, the [Chief Financial Officer] [Treasurer] [Executive Vice
President] hereby certifies, pursuant to Section 6.9 of the Placement Agreement, dated as of December 28, 2006 among Greer Bancshares Incorporated (the “Company”), Greer Capital Trust II (the “Trust”) and Credit Suisse
Securities (USA) LLC, that, as of                     , 20    , the Company had the following ratios and balances:

 BANK 
 As of [Quarterly Financial Dates] 
  

			
		
	 Tier 1 Risk Weighted Assets
	  	            %
		
	 Ratio of Double Leverage
	  	            %
		
	 Non-Performing Assets to Loans and OREO
	  	            %
		
	 Tangible Common Equity as a Percentage of Tangible Assets
	  	            %
		
	 Ratio of Reserves to Non-Performing Loans
	  	            %
		
	 Ratio of Net Charge-Offs to Loans
	  	            %
		
	 Return on Average Assets (annualized)
	  	            %
		
	 Net Interest Margin (annualized)
	  	            %
		
	 Efficiency Ratio
	  	            %
		
	 Ratio of Loans to Assets
	  	            %
		
	 Ratio of Loans to Deposits
	  	            %
		
	 Double Leverage (exclude trust preferred as equity)
	  	            %
		
	 Total Assets
	  	$            
		
	 Year to Date Income
	  	$            

  

	*	A table describing the quarterly report calculation procedures is attached. 

 [FOR FISCAL YEAR END: Attached hereto are the audited consolidated financial statements (including the balance sheet, income statement and statement of cash flows, and notes thereto, together with the report of the independent accountants
thereon) of the Company and its consolidated subsidiaries for the three years ended                     , 20    .]

 [FOR FISCAL QUARTER END: Attached hereto are the unaudited consolidated and consolidating financial statements (including the balance sheet and income
statement) of the Company and its consolidated subsidiaries for the fiscal quarter and [six/nine] month period ended                     ,
20    .] 
  

 F-1 

 The financial statements fairly present in all material respects, in accordance with U.S. generally accepted accounting
principles (“GAAP”), the financial position of the Company and its consolidated subsidiaries, and the results of operations and changes in financial condition as of the date, and for the
[             quarter interim] [annual] period ended                     ,
20    , and such financial statements have been prepared in accordance with GAAP consistently applied throughout the period involved (expect as otherwise noted therein). 
 IN WITNESS WHEREOF, the undersigned has executed this Officer’s Certificate as of this
             day of                     , 20    

  

	
	
	   
	Name:
	Title:
	
	Greer Bancshares Incorporated
	1111 W. Poinsett Street
	Greer, South Carolina 29652
	(864) 848-5120

  

 F-2 

 FINANCIAL DEFINITIONS 
 BANK HOLDING COMPANY 
  

					
	 Report Item
	  	 Corresponding FRY-9C or LP Line Items with Line Item
corresponding
Schedules
	  	 Description of Calculation

	Tier 1 Risk Weighted Assets	  	 BHCK7206
 Schedule HC-R
	  	Tier 1 Risk Ratio: Core Capital (Tier 1)/ Risk-Adjusted Assets
			
	Ratio of Double Leverage	  	 (BHCP0365)/(BCHCP3210)
 Schedule PC in the
LP
	  	Total equity investments in subsidiaries divided by the total equity capital. This field is calculated at the parent company level. “Subsidiaries” include bank, bank holding
company, and non-bank subsidiaries.
			
	Non-Performing Assets to Loans and OREO	  	(BHCK5525-BHCK3506+BHCK5526-BHCK3507+BHCK2744/(BHCK2122+BHCK2744) Schedules HC-C, HC-M & HC-N	  	Total Nonperforming Assets (NPLs+Foreclosed Real Estate+Other Nonaccrual & Repossessed Assets)/Total Loans+Foreclosed Real Estate
			
	Tangible Common Equity as a Percentage of Tangible Assets	  	 (BHDM3210-BHCK3163)/(BHCK2170-BHCK3163)
 Schedule
HC
	  	(Equity Capital – Goodwill)/(Total Assets – Goodwill)
			
	Ratio of Reserves to Non-Performing Loans	  	 (BHCK3123+BHCK3128)/(BHCK5525-BHCK3506+BHCK5526-BHCK3507)
 Schedules HC & HC-N & HC-R
	  	Total Loan Loss and Allocated Transfer Risk Reserves/ Total Nonperforming Loans (Nonaccrual + Restructured)
			
	Ratio of Net Charge-Offs to Loans	  	 (BHCK4635-BHCK4605)/(BHCK3516)
 Schedules HI-B &
HC-K
	  	Net charge offs for the period as a percentage of average loans.
			
	Return on Average Assets (annualized)	  	 (BHCK4340/BHCK3368)
 Schedules HI &
HC-K
	  	Net Income as a percentage of Assets.
			
	Net Interest Margin (annualized)	  	 (BHCK4519/(BHCK3515+BHCK3365+BHCK3516+
 BHCK3401+BHCKB985)
 Schedules HI Memorandum and HC-K
	  	(Net Interest Income Fully Taxable Equivalent, if available/Average Earning Assets)
			
	Efficiency Ratio	  	 (BHCK4093)/(BHCK4519+BHCK4079)
 Schedule
HI
	  	(Non-interest Expense)/(Net Interest Income Fully Taxable Equivalent, if available, plus Non-interest Income)
			
	Ratio of Loans to Assets	  	 (BHCKB528+BHCK5369)/(BHCK2170)
 Schedule
HC
	  	Total Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total Assets
			
	Ratio of Loans to Deposits	  	 (BHCKB528+BHCK5369)/(BHDM6631+BHDM6636+BHFN6631+BHFN6636)
 Schedule HC
	  	Total Loans & Leases (Net of Unearned Income & Gross of Reserve)/Total Deposits (Includes Domestic and Foreign Deposits)

  

 1 

					
	 Report Item
	  	 Corresponding FRY-9C or LP Line Items with Line Item
corresponding
Schedules
	  	 Description of Calculation

	Total Assets	  	 (BHCK2170)
 Schedule HC
	  	The sum of total assets. Includes
cash and balances due from
depository institutions; securities;
federal funds sold and securities
purchased under agreements to
resell; loans and
lease financing
receivables; trading assets; premises
and fixed assets; other real estate
owned; investments in
unconsolidated subsidiaries and
associated companies; customer’s
liability on acceptances
outstanding;
intangible assets; and other assets.

  

 2Revolving Credit Agreement

 EXHIBIT 10.113 
  

 REVOLVING CREDIT AGREEMENT 
 DATED AS OF DECEMBER 29, 2006 
 COMERICA BANK 
 AS ADMINISTRATIVE AGENT 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	1.	 	DEFINITIONS	  	1
				
		 	1.1	  	Certain Defined Terms	  	1
			
	2.	 	REVOLVING CREDIT	  	19
				
		 	2.1	  	Commitment	  	19
		 	2.2	  	Accrual of Interest and Maturity; Evidence of Indebtedness	  	19
		 	2.3	  	Requests for and Refundings and Conversions of Advances	  	20
		 	2.4	  	Disbursement of Advances	  	22
		 	2.5	  	[Intentionally Omitted]	  	24
		 	2.6	  	Interest Payments; Default Interest	  	24
		 	2.7	  	Optional Prepayments	  	25
		 	2.8	  	Prime-based Advance in Absence of Election or Upon Default	  	25
		 	2.9	  	Revolving Credit Commitment Fee	  	25
		 	2.10	  	Mandatory Repayment of Revolving Credit Advances	  	26
		 	2.11	  	Optional Reduction or Termination of Revolving Credit Aggregate Commitment	  	27
		 	2.12	  	Use of Proceeds of Advances	  	28
			
	3.	 	LETTERS OF CREDIT	  	28
				
		 	3.1	  	Letters of Credit	  	28
		 	3.2	  	Conditions to Issuance	  	28
		 	3.3	  	Notice	  	29
		 	3.4	  	Letter of Credit Fees; Increased Costs	  	30
		 	3.5	  	Other Fees	  	31
		 	3.6	  	Drawings and Demands for Payment Under Letters of Credit	  	31
		 	3.7	  	Obligations Irrevocable	  	33
		 	3.8	  	Risk Under Letters of Credit	  	34
		 	3.9	  	Indemnification	  	35
		 	3.10	  	Right of Reimbursement	  	36
			
	4.	 	[Intentionally Omitted]	  	37
			
	5.	 	CONDITIONS	  	37
				
		 	5.1	  	Execution of Notes and this Agreement	  	37
		 	5.2	  	Corporate Authority	  	37
		 	5.3	  	Notes, Agreement and other Loan Documents	  	38
		 	5.4	  	[Intentionally Omitted]	  	38
		 	5.5	  	Insurance	  	38
		 	5.6	  	Compliance with Certain Documents and Agreements	  	38
		 	5.7	  	Opinions of Counsel	  	38
		 	5.8	  	Payment of Fees	  	39
		 	5.9	  	Non-GAAP Balance Sheet and Financial Statements	  	39
		 	5.10	  	Appraisals; Audits; Due Diligence	  	39

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	5.11	  	[Intentionally Omitted]	  	39
		 	5.12	  	Material Contracts	  	39
		 	5.13	  	Governmental and Other Approvals	  	39
		 	5.14	  	Closing Certificate	  	39
		 	5.15	  	PowerDsine	  	39
		 	5.16	  	Continuing Conditions	  	39
			
	6.	 	REPRESENTATIONS AND WARRANTIES	  	40
				
		 	6.1	  	Corporate Authority	  	40
		 	6.2	  	Due Authorization	  	40
		 	6.3	  	Good Title; Leases; Assets; No Liens	  	40
		 	6.4	  	Taxes	  	41
		 	6.5	  	No Defaults	  	41
		 	6.6	  	Enforceability of Agreement and Loan Documents	  	41
		 	6.7	  	Compliance with Laws	  	41
		 	6.8	  	Non-contravention	  	42
		 	6.9	  	Litigation	  	42
		 	6.10	  	Consents, Approvals and Filings, Etc	  	42
		 	6.11	  	Agreements Affecting Financial Condition	  	42
		 	6.12	  	No Investment Company or Margin Stock	  	42
		 	6.13	  	ERISA	  	43
		 	6.14	  	Conditions Affecting Business or Properties	  	43
		 	6.15	  	Environmental and Safety Matters	  	43
		 	6.16	  	Subsidiaries	  	44
		 	6.17	  	[Intentionally Omitted]	  	44
		 	6.18	  	Material Contracts	  	44
		 	6.19	  	Franchises, Patents, Copyrights, Tradenames, etc	  	44
		 	6.20	  	[Intentionally Omitted]	  	44
		 	6.21	  	Accuracy of Information	  	44
		 	6.22	  	Solvency	  	45
		 	6.23	  	Employee Matters	  	45
		 	6.24	  	No Misrepresentation	  	45
			
	7.	 	AFFIRMATIVE COVENANTS	  	45
				
		 	7.1	  	Financial Statements	  	45
		 	7.2	  	Certificates; Other Information	  	46
		 	7.3	  	Payment of Obligations	  	46
		 	7.4	  	Conduct of Business and Maintenance of Existence; Compliance with Laws	  	47
		 	7.5	  	Maintenance of Property; Insurance	  	47
		 	7.6	  	Inspection of Property; Books and Records, Discussions	  	48
		 	7.7	  	Notices	  	48
		 	7.8	  	Hazardous Material Laws	  	49

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	7.9	  	Financial Covenants	  	50
		 	7.10	  	Governmental and Other Approvals	  	50
		 	7.11	  	Compliance with ERISA; ERISA Notices	  	50
		 	7.12	  	[Intentionally Omitted]	  	51
		 	7.13	  	Accounts	  	51
		 	7.14	  	Use of Proceeds	  	51
		 	7.15	  	PowerDsine	  	51
		 	7.16	  	Further Assurances	  	51
			
	8.	 	NEGATIVE COVENANTS	  	51
				
		 	8.1	  	Limitation on Debt	  	51
		 	8.2	  	Limitation on Liens	  	53
		 	8.3	  	Acquisitions	  	53
		 	8.4	  	Limitation on Mergers, Dissolution or Sale of Assets	  	53
		 	8.5	  	Restricted Payments	  	54
		 	8.6	  	Limitation on Capital Expenditures	  	55
		 	8.7	  	Limitation on Investments, Loans and Advances	  	55
		 	8.8	  	Transactions with Affiliates	  	56
		 	8.9	  	Sale-Leaseback Transactions	  	56
		 	8.10	  	Limitations on Other Restrictions	  	56
		 	8.11	  	Prepayment of Debt	  	56
		 	8.12	  	Amendment of Subordinated Debt Documents	  	56
		 	8.13	  	Modification of Certain Agreements	  	56
		 	8.14	  	Management Fees	  	56
		 	8.15	  	Fiscal Year	  	57
			
	9.	 	DEFAULTS	  	57
				
		 	9.1	  	Events of Default	  	57
		 	9.2	  	Exercise of Remedies	  	59
		 	9.3	  	Rights Cumulative	  	60
		 	9.4	  	Waiver by Borrowers of Certain Laws	  	60
		 	9.5	  	Waiver of Defaults	  	60
		 	9.6	  	Set Off	  	60
			
	10.	 	PAYMENTS, RECOVERIES AND COLLECTIONS	  	61
				
		 	10.1	  	Payment Procedure	  	61
		 	10.2	  	[Intentionally Omitted]	  	62
		 	10.3	  	Pro-rata Recovery	  	62
			
	11.	 	CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS	  	63
				
		 	11.1	  	Reimbursement of Prepayment Costs	  	63
		 	11.2	  	Eurodollar Lending Office	  	63
		 	11.3	  	Circumstances Affecting Eurodollar-based Rate Availability	  	63

  

 -iii- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	11.4	  	Laws Affecting Eurodollar-based Advance Availability	  	64
		 	11.5	  	Increased Cost of Eurodollar-based Advances	  	64
		 	11.6	  	Capital Adequacy and Other Increased Costs	  	65
		 	11.7	  	Right of Lenders to Fund through Branches and Affiliates	  	66
		 	11.8	  	Margin Adjustment	  	66
			
	12.	 	AGENT	  	67
				
		 	12.1	  	Appointment of Agent	  	67
		 	12.2	  	Deposit Account with Agent or any Lender	  	67
		 	12.3	  	Scope of Agent’s Duties	  	67
		 	12.4	  	Successor Agent	  	68
		 	12.5	  	Credit Decisions	  	68
		 	12.6	  	Authority of Agent to Enforce This Agreement	  	69
		 	12.7	  	Indemnification of Agent	  	69
		 	12.8	  	Knowledge of Default	  	69
		 	12.9	  	Agent’s Authorization; Action by Lenders	  	70
		 	12.10	  	Enforcement Actions by the Agent	  	70
		 	12.11	  	[Intentionally Omitted]	  	70
		 	12.12	  	Agents in their Individual Capacities	  	70
		 	12.13	  	Agent’s Fees	  	70
		 	12.14	  	Documentation Agent or other Titles	  	71
			
	13.	 	MISCELLANEOUS	  	71
				
		 	13.1	  	Accounting Principles	  	71
		 	13.2	  	Choice of Law and Venue; Jury Trial Waiver	  	71
		 	13.3	  	Reference Provision	  	71
		 	13.4	  	Interest	  	74
		 	13.5	  	Closing Costs and Other Costs; Indemnification	  	74
		 	13.6	  	Notices	  	76
		 	13.7	  	Further Action	  	77
		 	13.8	  	Successors and Assigns; Participations; Assignments	  	77
		 	13.9	  	Counterparts	  	80
		 	13.10	  	Amendment and Waiver	  	80
		 	13.11	  	Confidentiality	  	81
		 	13.12	  	Substitution of Lenders	  	82
		 	13.13	  	Withholding Taxes	  	82
		 	13.14	  	Taxes and Fees	  	83
		 	13.15	  	[Intentionally Omitted]	  	83
		 	13.16	  	Patriot Act Notice	  	83
		 	13.17	  	Complete Agreement; Conflicts	  	84
		 	13.18	  	Severability	  	84
		 	13.19	  	Table of Contents and Headings; Section References	  	84
		 	13.20	  	Construction of Certain Provisions	  	84

  

 -iv- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	 	  	Page
		 	13.21	  	Independence of Covenants	  	84
		 	13.22	  	Joint and Several Liability	  	84
		 	13.23	  	Advertisements	  	87
		 	13.24	  	Reliance on and Survival of Various Provisions	  	87

  

 -v- 

 REVOLVING CREDIT AGREEMENT 
 This REVOLVING CREDIT AGREEMENT (“Agreement”) is made as of December 29, 2006, by and among the financial institutions from time to time
signatory hereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”), and Microsemi
Corporation (“Parent”), Microsemi Corp. – Power Products Group, Microsemi Corp. – Integrated Products, Microsemi Corp. – Massachusetts and Microsemi Corp. – Scottsdale (each, a “Borrower” and collectively with
Parent, “Borrowers”). 
 RECITALS 
 A. Borrowers have requested that the Lenders extend to them credit and letters of credit on the terms and conditions set forth herein. 
 B. The Lenders are prepared to extend such credit as aforesaid, but only on the terms and conditions set forth in this Agreement. 
 NOW THEREFORE, in consideration of the covenants contained herein, Borrowers, the Lenders, and the Agent agree as follows: 
 1. DEFINITIONS. 
 1.1 Certain Defined Terms. For the purposes of this Agreement the following terms will have the
following meanings: 
 “Account(s)” shall mean any account or account receivable as defined under the UCC, including without
limitation, with respect to any Person, any right of such Person to payment for goods sold or leased or for services rendered. 
 “Account Debtor” shall mean the party who is obligated on or under any Account. 
 “Advance(s)” shall mean a
borrowing requested by Parent and made by the Revolving Credit Lenders under Section 2.1 hereof, including without limitation any readvance, refunding or conversion of such borrowing pursuant to Section 2.3 hereof, and any advance deemed
to have been made in respect of a Letter of Credit under Section 3.6(a) hereof, and shall include, as applicable, a Eurodollar-based Advance and a Prime-based Advance. 
 “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling (including but not limited to all
directors and officers of such Person), controlled by, or under direct or indirect common control with such Person. A Person shall be deemed to control another Person for the purposes of this definition if such Person possesses, directly or
indirectly, the power (i) to vote 10% or more of the Equity Interests having ordinary voting power for the election of directors or managers of such other Person or (ii) to direct or cause the direction of the management and policies of
such other Person, whether through the ownership of voting securities, by contract or otherwise. 
  

 1 

 “Agent” shall have the meaning set forth in the preamble, and include any successor agents
appointed in accordance with Section 12.4 hereof. 
 “Agent’s Correspondent” shall mean for Eurodollar-based Advances,
Agent’s Grand Cayman Branch (or for the account of said branch office, at Agent’s main office in Detroit, Michigan, United States). 
 “Applicable Fee Percentage” shall mean, as of any date of determination thereof, the applicable percentage used to calculate certain of the fees due and payable hereunder, determined by reference to the appropriate columns in the
Pricing Matrix attached to this Agreement as Schedule 1.1. 
 “Applicable Interest Rate” shall mean the Eurodollar-based Rate or
the Prime-based Rate. 
 “Applicable Margin” shall mean, as of any date of determination thereof, the applicable interest rate
margin, determined by reference to the appropriate columns in the Pricing Matrix attached to this Agreement as Schedule 1.1, such Applicable Margin to be adjusted solely as specified in Section 11.8 hereof. 
 “Applicable Measuring Period” shall mean the period of four consecutive fiscal quarters ending on the applicable date of determination.

 “Asset Sale” shall mean the sale, transfer or other disposition by any Borrower of any asset (other than the sale or transfer of
less than one hundred percent (100%) of the stock or other ownership interests of any Subsidiary) to any Person (other than to a Borrower or a Subsidiary of such Borrower). 
 “Assignment Agreement” shall mean an Assignment Agreement substantially in the form of Exhibit D hereto. 
 “Authorized Signer” shall mean each person who has been authorized by the Parent to execute and deliver any requests for Advances hereunder
pursuant to a written authorization delivered to the Agent and whose signature card or incumbency certificate has been received by the Agent. 
 “Bankruptcy Code” shall mean Title 11 of the United States Code and the rules promulgated thereunder. 
 “Borrower” and “Borrowers” shall have the meanings set forth in the preamble to this Agreement. 
 “Business Day” shall mean any day other than a Saturday or a Sunday on which commercial banks are open for domestic and international business (including dealings in foreign exchange) in Orange County, California and New York, New
York, and in the case of a Business Day which relates to a Eurodollar-based Advance, on which dealings are carried on in the London interbank eurodollar market. 
  

 2 

 “Capital Expenditures” shall mean, for any period, with respect to any Person (without
duplication), the aggregate of all expenditures incurred by such Person and its Subsidiaries during such period for the acquisition or leasing (pursuant to a Capitalized Lease) of fixed or capital assets or additions to equipment, plant and property
that should be capitalized under GAAP on a consolidated balance sheet of such Person and its Subsidiaries. 
 “Capitalized Lease”
shall mean, as applied to any Person, any lease of any property (whether real, personal or mixed) with respect to which the discounted present value of the rental obligations of such Person as lessee thereunder, in conformity with GAAP, is required
to be capitalized on the balance sheet of that Person. 
 “Comerica Bank” shall mean Comerica Bank, a Michigan banking corporation,
and its successors or assigns. 
 “Condemnation Proceeds” shall mean the cash proceeds received by a Borrower in respect of any
condemnation proceeding net of reasonable fees and expenses (including without limitation attorneys’ fees and expenses) incurred in connection with the collection thereof. 
 “Consolidated” (or “consolidated”) or “Consolidating” (or “consolidating”) shall mean, when used with reference
to any financial term in this Agreement, the aggregate for two or more Persons of the amounts signified by such term for all such Persons determined on a consolidated (or consolidating) basis in accordance with GAAP, applied on a consistent basis.
Unless otherwise specified herein, “Consolidated” and “Consolidating” shall refer to Borrowers and their Subsidiaries, determined on a Consolidated or Consolidating basis. 
 “Consolidated Funded Debt” shall mean at any date the aggregate amount of all Funded Debt of the Borrowers at such date, determined on a
Consolidated basis. 
 “Contractual Obligation” shall mean, as to any Person, any provision of any security issued by such Person
or of any material agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
 “Covenant Compliance Report” shall mean the report to be furnished by Parent to the Agent pursuant to Section 7.2(a) hereof, substantially in the form attached hereto as Exhibit L and certified by a Responsible Officer of
Parent, in which report Parent shall set forth the information specified therein and which shall include a statement of then applicable level for the Applicable Margin and Applicable Fee Percentages as specified in Schedule 1.1 attached to this
Agreement. 
 “Debt” shall mean as to any Person, without duplication (a) all Funded Debt of a Person, (b) all Guarantee
Obligations of such Person, (c) all obligations of such Person under conditional sale or other title retention agreements relating to property or assets purchased by such Person, (d) all indebtedness of such Person arising in connection
with any Hedging Transaction entered into by such Person, (e) all recourse Debt of any partnership of which such Person is the general partner, and (f) any Off Balance Sheet Liabilities. 
 “Default” shall mean any event that with the giving of notice or the passage of time, or both, would constitute an Event of Default under this
Agreement. 
  

 3 

 “Distribution” is defined in Section 8.5 hereof. 
 “Dollars” and the sign “$” shall mean lawful money of the United States of America. 
 “EBITDA” means, as of any date of determination, net income, plus net interest expense, taxes, depreciation and amortization, non-cash charges
and extraordinary expenses, less non-cash income, and extraordinary income, all determined in accordance with GAAP and measured on a rolling four (4) quarter basis. 
 “Effective Date” shall mean the date on which all the conditions precedent set forth in Sections 5.1 through 5.16 have been satisfied. 
 “Eligible Assignee” shall mean (a) a Lender; (b) an Affiliate of a Lender; (c) any Person (other than a natural person) that is
or will be engaged in the business of making, purchasing, holding or otherwise investing in commercial loans or similar extensions of credit in the ordinary course of its business, provided that such Person is administered or managed by a Lender, an
Affiliate of a Lender or an entity or Affiliate of an entity that administers or manages a Lender; or (d) any other Person (other than a natural person) approved by the (i) Agent (and in the case of an assignment of a commitment under the
Revolving Credit, the Issuing Lender), and (ii) unless an Event of Default has occurred and is continuing, the Parent (each such approval not to be unreasonably withheld or delayed); provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Borrowers, or any of the Borrowers’ Affiliates or Subsidiaries; and provided further that notwithstanding clause (d)(ii) of this definition, no assignment shall be made to an entity which is a competitor of
Parent without the consent of Parent, which consent may be withheld in its sole discretion. 
 “Equity Interest” shall mean
(i) in the case of any corporation, all capital stock and any securities exchangeable for or convertible into capital stock, (ii) in the case of an association or business entity, any and all shares, interests, participations, rights or
other equivalents of corporate stock (however designated) in or to such association or entity, (iii) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited) and (iv) any
other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person, and including, in all of the foregoing cases described in clauses (i), (ii),
(iii) or (iv), any warrants, rights or other options to purchase or otherwise acquire any of the interests described in any of the foregoing cases. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, or any successor act or code and the regulations in effect from time to time thereunder. 
 “Eurodollar-based Advance” shall mean any Advance which bears interest at the Eurodollar-based Rate. 
 “Eurodollar-based Rate” shall mean a per annum interest rate which is equal to the sum of (a) the Applicable Margin, plus (b) the
quotient of: 
  

	 	(i)	the per annum interest rate at which deposits in the relevant eurocurrency are offered to Agent’s Eurodollar Lending Office by 

  

 4 

 other prime banks in the eurocurrency market in an amount comparable to the relevant Eurodollar-based
Advance and for a period equal to the relevant Eurodollar-Interest Period at approximately 11:00 A.M. California time two (2) Business Days prior to the first day of such Eurodollar-Interest Period, divided by 
  

	 	(ii)	a percentage equal to 100% minus the maximum rate on such date at which Agent is required to maintain reserves on ‘Eurocurrency Liabilities’ as defined in and pursuant to
Regulation D of the Board of Governors of the Federal Reserve System or, if such regulation or definition is modified, and as long as Agent is required to maintain reserves against a category of liabilities which includes eurocurrency deposits or
includes a category of assets which includes eurocurrency loans, the rate at which such reserves are required to be maintained on such category, such sum to be rounded upward, if necessary, to the nearest whole multiple of 1/100th of 1%.

 “Eurodollar-Interest Period” shall mean, for any Eurodollar-based Advance, an Interest Period of one, two, three
or six months (or any shorter or longer periods agreed to in advance by Parent, Agent and the Lenders) as selected by Parent, for such Eurodollar-based Advance pursuant to Section 2.3 hereof, as the case may be. 
 “Eurodollar Lending Office” shall mean, (a) with respect to the Agent, Agent’s office located at its Grand Caymans Branch or such
other branch of Agent, domestic or foreign, as it may hereafter designate as its Eurodollar Lending Office by written notice to Parent and the Lenders and (b) as to each of the Lenders, its office, branch or affiliate located at its address set
forth on the signature pages hereof (or identified thereon as its Eurodollar Lending Office), or at such other office, branch or affiliate of such Lender as it may hereafter designate as its Eurodollar Lending Office by written notice to Parent and
Agent. 
 “Event of Default” shall mean each of the Events of Default specified in Section 9.1 hereof. 
 “Federal Funds Effective Rate” shall mean, for any day, a fluctuating interest rate per annum equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by Agent, all as
conclusively determined by the Agent, such sum to be rounded upward, if necessary, to the nearest whole multiple of 1/100th of 1%. 
 “Fees” shall mean the Revolving Credit Commitment Fee, the Letter of Credit Fees and the other fees and charges (including any agency fees) payable by Borrowers to the Lenders, the Issuing Lender or Agent hereunder. 
  

 5 

 “Fiscal Year” shall mean the twelve-month period ending on the each of September 30,
2007, September 28, 2008 and September 27, 2009. 
 “Funded Debt” of any Person shall mean, without duplication,
(a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services as of such date (other than operating leases and trade liabilities, including but not limited to accounts payable, payroll, taxes
and interest, incurred in the ordinary course of business and payable in accordance with customary practices) or which is evidenced by a note, bond, debenture or similar instrument, (b) the principal component of all obligations of such Person
under Capitalized Leases, (c) all reimbursement obligations (actual, contingent or otherwise) of such Person in respect of letters of credit, bankers acceptances or similar obligations issued or created for the account of such Person,
(d) all liabilities of the type described in (a), (b) and (c) above that are secured by any Liens on any property owned by such Person as of such date even though such Person has not assumed or otherwise become liable for the payment
thereof, the amount of which is determined in accordance with GAAP; provided however that so long as such Person is not personally liable for any such liability, the amount of such liability shall be deemed to be the lesser of the fair market value
at such date of the property subject to the Lien securing such liability and the amount of the liability secured, and (e) all Guarantee Obligations in respect of any liability which constitutes Funded Debt; provided, however that Funded Debt
shall not include any indebtedness under any Hedging Transaction prior to the occurrence of a termination event with respect thereto. 
 “GAAP” shall mean, as of any applicable date of determination, generally accepted accounting principles in the United States of America, as applicable on such date, consistently applied, as in effect on the Effective Date.

 “Governmental Obligations” means noncallable direct general obligations of the United States of America or obligations the
payment of principal of and interest on which is unconditionally guaranteed by the United States of America. 
 “Guarantee
Obligation” shall mean as to any Person (the “guaranteeing person”) any obligation of the guaranteeing Person in respect of any obligation of another Person (the “primary obligor”) (including, without limitation, any bank
under any letter of credit), the creation of which was induced by a reimbursement agreement, guaranty agreement, keepwell agreement, purchase agreement, counterindemnity or similar obligation issued by the guaranteeing person, in either case
guaranteeing or in effect guaranteeing any Debt, leases, dividends or other obligations (the “primary obligations”) of the primary obligor in any manner, whether directly or indirectly, including, without limitation, any obligation of the
guaranteeing person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any such
primary obligation or (2) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in
respect thereof; provided, however, that the term Guarantee Obligation shall not include endorsements of instruments for deposit or collection in the ordinary 
  

 6 

 course of business. The amount of any Guarantee Obligation of any guaranteeing person shall be deemed to be the lower of
(a) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee Obligation is made and (b) the maximum amount for which such guaranteeing person may be liable pursuant to the terms of
the instrument embodying such Guarantee Obligation, unless such primary obligation and the maximum amount for which such guaranteeing person may be liable are not stated or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person’s maximum reasonably anticipated liability in respect thereof as determined by the applicable Person in good faith. 
 “Hazardous Material” shall mean any hazardous or toxic waste, substance or material defined or regulated as such in or for purposes of the Hazardous Material Laws. 
 “Hazardous Material Law(s)” shall mean all laws, codes, ordinances, rules, regulations and other governmental restrictions and requirements
issued by any federal, state, local or other governmental or quasi-governmental authority or body (or any agency, instrumentality or political subdivision thereof) pertaining to any substance or material which is regulated for reasons of health,
safety or the environment and which are presently known or alleged to be currently present on or about or used in any facilities owned, leased or operated by a Borrower, or any portion thereof including, without limitation, those relating to soil,
surface, subsurface ground water conditions and the condition of the indoor and outdoor ambient air; any so-called “superfund” or “superlien” law; and any other United States federal, state or local statute, law, ordinance, code,
rule, regulation, order or decree regulating, relating to, or imposing liability or standards of conduct concerning, any Hazardous Material, as now or at any time during the term of the Agreement in effect. 
 “Hedging Agreement” shall mean any agreement relating to a Hedging Transaction entered into between a Borrower and any Lender or an Affiliate
of a Lender. 
 “Hedging Transaction” means each interest rate swap transaction, basis swap transaction, forward rate transaction,
equity transaction, equity index transaction, foreign exchange transaction, cap transaction, floor transaction (including any option with respect to any of these transactions and any combination of any of the foregoing). 
 “Hereof”, “hereto”, “hereunder” and similar terms shall refer to this Agreement and not to any particular paragraph or
provision of this Agreement. 
 “Income Taxes” shall mean for any period the aggregate amount of taxes based on income or profits
for such period with respect to the operations of Borrowers and their Subsidiaries (including, without limitation, the Michigan Single Business Tax and all other corporate franchise, capital stock, net worth and value-added taxes assessed by state
and local governments) determined in accordance with GAAP on a Consolidated basis (to the extent such income and profits were included in computing Consolidated Net Income). 
 “Indebtedness” shall mean all indebtedness and liabilities (including without limitation principal, interest (including without limitation
interest accruing at the then applicable rate provided in this Agreement or any other applicable Loan Document after the Final Maturity Date 
  

 7 

 and interest accruing at the then applicable rate provided in this Agreement or any other applicable Loan Document after
the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to a Borrower whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), fees,
expenses and other charges) arising under this Agreement or any of the other Loan Documents, whether direct or indirect, absolute or contingent, of a Borrower to any of the Lenders or Affiliates thereof or to the Agent, in any manner and at any
time, whether arising under this Agreement or any of the other Loan Documents (including without limitation, payment obligations under Hedging Transactions evidenced by Hedging Agreements), due or hereafter to become due, now owing or that may
hereafter be incurred by a Borrower to any of the Lenders or Affiliates thereof or to the Agent, and any liabilities of Borrowers to Agent or any Lender arising in connection with any Lender Products, in each case whether or not reduced to judgment,
with interest according to the rates and terms specified, and any and all consolidations, amendments, renewals, replacements, substitutions or extensions of any of the foregoing; provided, however that for purposes of calculating the Indebtedness
outstanding under this Agreement or any of the other Loan Documents, the direct and indirect and absolute and contingent obligations of the Borrowers (whether direct or contingent) shall be determined without duplication. 
 “Insurance Proceeds” shall mean the cash proceeds received by a Borrower from any insurer in respect of any damage or destruction of any
property or asset net of reasonable fees and expenses (including without limitation attorneys fees and expenses) incurred solely in connection with the recovery thereof. 
 “Interest Period” shall mean a Eurodollar-Interest Period, commencing on the day a Eurodollar-based Advance is made, or on the effective date of an election of the Eurodollar-based Rate made under
Section 2.3 hereof; provided, however that (i) any Interest Period which would otherwise end on a day which is not a Business Day shall end on the next succeeding Business Day, except that as to an Interest Period in respect of a
Eurodollar-based Advance, if the next succeeding Business Day falls in another calendar month, such Interest Period shall end on the next preceding Business Day, (ii) when an Interest Period in respect of a Eurodollar-based Advance begins on a
day which has no numerically corresponding day in the calendar month during which such Interest Period is to end, it shall end on the last Business Day of such calendar month, and (iii) no Interest Period in respect of any Advance shall extend
beyond the Revolving Credit Maturity Date. 
 “Internal Revenue Code” shall mean the Internal Revenue Code of 1986 of the United
States of America, as amended from time to time, and the regulations promulgated thereunder. 
 “Inventory” shall mean any
inventory as defined under the UCC. 
 “Investment” shall mean, when used with respect to any Person, (a) any loan, investment
or advance made by such Person to any other Person (including, without limitation, any Guarantee Obligation) in respect of any Equity Interest, Debt, obligation or liability of such other Person and (b) any other investment made by such Person
(however acquired) in Equity Interests in any other Person, including, without limitation, any investment made in exchange for the issuance of Equity Interest of such Person and any investment made as a capital contribution to such other Person.

  

 8 

 “Issuing Lender” shall mean Comerica Bank in its capacity as issuer of one or more Letters of
Credit hereunder, or its successor designated by Parent and the Revolving Credit Lenders. 
 “Issuing Office” shall mean such
office as Issuing Lender shall designate as its Issuing Office. 
 “Lender Products” shall mean any one or more of the following
types of services or facilities extended to any Borrower by any Lender: (i) credit cards, (ii) credit card processing services, (iii) debit cards, (iv) purchase cards, (v) Automated Clearing House (ACH) transactions,
(vi) cash management, including controlled disbursement services, and (vii) establishing and maintaining deposit accounts. 
 “Lenders” shall have the meaning set forth in the preamble, and shall include the Revolving Credit Lenders, and any assignee which becomes a Lender pursuant to Section 13.8 hereof. 
 “Letter of Credit Agreement” shall mean, collectively, the letter of credit application and related documentation executed and/or delivered by
Parent in respect of each Letter of Credit, in each case satisfactory to the Issuing Lender, as amended, restated or otherwise modified from time to time. 
 “Letter of Credit Documents” shall have the meaning ascribed to such term in Section 3.7(a) hereof. 
 “Letter of Credit Fees” shall mean the fees payable in connection with Letters of Credit pursuant to Section 3.4(a) and (b) hereof. 
 “Letter of Credit Maximum Amount” shall mean Ten Million Dollars ($10,000,000). 
 “Letter of
Credit Obligations” shall mean at any date of determination, the sum of (a) the aggregate undrawn amount of all Letters of Credit then outstanding, and (b) the aggregate amount of Reimbursement Obligations which remain unpaid as of
such date. 
 “Letter of Credit Payment” shall mean any amount paid or required to be paid by the Issuing Lender in its capacity
hereunder as issuer of a Letter of Credit as a result of a draft or other demand for payment under any Letter of Credit. 
 “Letter(s)
of Credit” shall mean any standby letters of credit issued by Issuing Lender at the request of or for the account of Parent pursuant to Article 3 hereof. 
 “Lien” shall mean any security interest in or lien on or against any property arising from any pledge, assignment, hypothecation, mortgage, security interest, deposit arrangement, trust receipt, conditional
sale or title retaining contract, sale and leaseback transaction, Capitalized Lease, consignment or bailment for security, or any other type of lien, charge, encumbrance, title exception, preferential or priority arrangement affecting property
(including with respect to stock, any stockholder agreements, voting rights agreements, buy-back agreements and all similar arrangements), whether based on common law or statute. 
  

 9 

 “Loan Documents” shall mean, collectively, this Agreement, the Notes (if issued), the Letter of
Credit Agreements, the Letters of Credit, each Hedging Agreement, and any other documents, certificates or agreements that are executed and required to be delivered pursuant to any of the foregoing documents, as such documents may be amended,
restated or otherwise modified from time to time. 
 “Majority Lenders” shall mean at any time (a) so long as the Revolving
Credit Aggregate Commitment has not been terminated, Lenders holding more than 50.0% of the Revolving Credit Aggregate Commitment and (b) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or
otherwise), Lenders holding more than 50.0% of the aggregate principal amount then outstanding under the Revolving Credit Loans; provided that, for purposes of determining Majority Lenders hereunder, the Letter of Credit Obligations shall be
allocated among the Revolving Credit Lenders based on their respective Revolving Credit Percentages; provided further that so long as there are fewer than three Lenders, considering any Lender and its Affiliates as a single Lender, “Majority
Lenders” shall mean all Lenders. 
 “Majority Revolving Credit Lenders” shall mean at any time (a) so long as the
Revolving Credit Aggregate Commitment has not been terminated, the Revolving Credit Lenders holding more than 50.0% of the Revolving Credit Aggregate Commitment and (b) if the Revolving Credit Aggregate Commitment has been terminated (whether
by maturity, acceleration or otherwise), Revolving Credit Lenders holding more than 50.0% of the aggregate principal amount then outstanding under the Revolving Credit; provided that, for purposes of determining Majority Revolving Credit Lenders
hereunder, the Letter of Credit Obligations shall be allocated among the Revolving Credit Lenders based on their respective Revolving Credit Percentages; provided further that so long as there are fewer than three Revolving Credit Lenders,
considering any Revolving Credit Lender and its Affiliates as a single Revolving Credit Lender, “Majority Revolving Credit Lenders” shall mean all Revolving Credit Lenders. 
 “Material Adverse Effect” shall mean a material adverse effect on (a) the condition (financial or otherwise), business, performance,
operations, properties or prospects of a Borrower, (b) the ability of Borrowers to perform their obligations under this Agreement, the Notes (if issued) or any other Loan Document to which they are a party, or (c) the validity or
enforceability of this Agreement, any of the Notes (if issued) or any of the other Loan Documents or the rights or remedies of the Agent or the Lenders hereunder or thereunder. 
 “Material Contract” shall mean (i) each agreement or contract to which a Borrower is a party or in respect of which a Borrower has any
liability, that by its terms (without reference to any indemnity or reimbursement provision therein) provides for aggregate future guaranteed payments in respect of any such individual agreement or contract of at least Five Million Dollars
($5,000,000), and (ii) any other agreement or contract the loss of which would be reasonably likely to result in a Material Adverse Effect; provided that Material Contracts shall not be deemed to include any Pension Plans, collective bargaining
agreements, broad-based pension or compensation plans or policies, leases of real property or equipment, contracts to purchase or sell goods or services in the ordinary course of Borrowers’ business, or casualty or liability or other insurance
policies maintained in the ordinary course of business. 
  

 10 

 “Multiemployer Plan” shall mean a Pension Plan which is a multiemployer plan as defined in
Section 4001(a)(3) of ERISA. 
 “Non-GAAP” shall mean non-GAAP financial measures (non-GAAP gross margin, non-GAAP operating
expenses, non-GAAP operating income, non-GAAP income before taxes, non-GAAP net income, and non-GAAP diluted earnings per share) that exclude transitional idle capacity and inventory abandonments, manufacturing profit in acquired inventory,
in-process research and development, amortization of intangible assets, stock option compensation, gain or loss on disposition of assets and restructuring and other special charges. 
 “Non-GAAP Balance Sheet” shall mean the non-GAAP consolidated balance sheet of Parent and its Subsidiaries which has been certified by a
Responsible Officer of Parent that it fairly presents in all material respects the Non-GAAP adjustments reflecting the transactions (including payment of all fees and expenses in connection therewith) contemplated by this Agreement and the other
Loan Documents. 
 “Non-GAAP Projected Financial Information” shall mean, as to any proposed acquisition, a statement executed by
Parent (supported by reasonable detail) setting forth the total consideration to be paid or incurred in connection with the proposed acquisition, and non-GAAP combined projected financial information for Parent and the acquisition target (if
applicable), consisting of projected balance sheets as of the proposed effective date of the acquisition and as of the end of at least the next succeeding one (1) Fiscal Year following the acquisition and projected statements of income for that
year, including sufficient detail to permit calculation of the ratios described in Section 7.9 hereof, as projected as of the effective date of the acquisition and as of the end of that Fiscal Year and accompanied by (i) a statement
setting forth a calculation of the ratio so described, (ii) a statement in reasonable detail specifying all material assumptions underlying the projections and (iii) such other information as the Agent or the Lenders shall reasonably
request. 
 “Notes” shall mean the Revolving Credit Notes. 
 “Off Balance Sheet Liability(ies)” of a Person shall mean (i) any repurchase obligation or liability of such Person with respect to
accounts or notes receivables sold by such Person, (ii) any liability under any sale and leaseback transaction which is not a Capitalized Lease, (iii) any liability under any so-called “synthetic lease” transaction entered into
by such Person, or (iv) any obligation arising with respect to any other transaction which is the functional equivalent of Debt or any of the liabilities set forth in subsections (i)-(iii) of this definition, but which does not constitute
a liability on the balance sheets of such Person. 
 “Parent” shall have the meaning set forth in the preamble. 
 “PBGC” shall mean the Pension Benefit Guaranty Corporation or any successor thereto. 
 “Pension Plan” shall mean any plan established and maintained by a Borrower, or contributed to by a Borrower, which is qualified under
Section 401(a) of the Internal Revenue Code and subject to the minimum funding standards of Section 412 of the Internal Revenue Code. 
  

 11 

 “Percentage” shall mean, as applicable, the Revolving Credit Percentage or the Weighted
Percentage. 
 “Permitted Acquisition” shall mean any acquisition by Parent or designated subsidiary, other than another Borrower,
of all or substantially all of the assets of another Person, or of a division or line of business of another Person, or any Equity Interests of another Person which satisfies and/or is conducted in accordance with the following requirements:

  

	 	(a)	Such acquisition is of a business or Person engaged in a line of business which is compatible with, or complementary to, the business of the Parent or such Subsidiary;

  

	 	(b)	Parent shall have delivered to Agent not less than fifteen (15) (or such shorter period of time agreed to by the Agent) nor more than ninety (90) days prior to the date of
such acquisition, notice of such acquisition together with Non-GAAP Projected Financial Information, copies of all material documents relating to such acquisition (including the acquisition agreement and any related document), and historical
financial information (including income statements, balance sheets and cash flows) covering at least three (3) complete Fiscal Years of the acquisition target, if available, prior to the effective date of the acquisition or the entire credit
history of the acquisition target, whichever period is shorter, in each case in form and substance reasonably satisfactory to the Agent; 

  

	 	(c)	Both immediately before and after the consummation of such acquisition and after giving effect to the Non-GAAP Projected Financial Information, no Default or Event of Default shall
have occurred and be continuing; 

  

	 	(d)	The board of directors (or other Person(s) exercising similar functions) of the seller of the assets or issuer of the Equity Interests being acquired shall not have disapproved such
transaction or recommended that such transaction be disapproved; 

  

	 	(e)	All governmental, quasi-governmental, agency, regulatory or similar licenses, authorizations, exemptions, qualifications, consents and approvals necessary under any laws applicable
to Parent, or the acquisition target (if applicable) for or in connection with the proposed acquisition and all necessary non-governmental and other third-party approvals which, in each case, are material to such acquisition shall have been
obtained, and all necessary or appropriate declarations, registrations or other filings with any court, governmental or regulatory authority, securities exchange or any other Person, which in each case, are material to the consummation of such
acquisition or to the acquisition target, if applicable, have been made, and evidence thereof reasonably satisfactory in form and substance to Agent shall have been delivered, or caused to have been delivered, by Parent to Agent;

  

 12 

	 	(f)	There shall be no actions, suits or proceedings pending or, to the knowledge of Borrowers threatened against or affecting the acquisition target in any court or before or by any
governmental department, agency or instrumentality, which could reasonably be expected to be decided adversely to the acquisition target and which, if decided adversely, could reasonably be expected to have a material adverse effect on the business,
operations, properties or financial condition of the acquisition target and its subsidiaries (taken as a whole) or would materially adversely affect the ability of the acquisition target to enter into or perform its obligations in connection with
the proposed acquisition, nor shall there be any actions, suits, or proceedings pending, or to the knowledge of Borrowers threatened against a Borrower that is making the acquisition which would materially adversely affect the ability of Parent to
enter into or perform its obligations in connection with the proposed acquisition; and 

  

	 	(g)	The purchase price of such proposed new acquisition, computed on the basis of total acquisition consideration paid or incurred, or required to be paid or incurred, with respect
thereto, including the amount of Debt (such Debt being otherwise permitted under this Agreement) assumed or to which such assets, businesses or business or Equity Interests, or any Person so acquired is subject and including any portion of the
purchase price allocated to any non-compete agreements, when added to the purchase price for each other acquisition consummated hereunder as a Permitted Acquisition during the term of this agreement (not including acquisitions specifically consented
to which fall outside the terms of this definition, and not including the PowerDsine Acquisition), does not exceed Twenty Five Million Dollars ($25,000,000). 

 “Permitted Investments” shall mean with respect to any Person: 
  

	 	(a)	Governmental Obligations; 

  

	 	(b)	Obligations of a state or commonwealth of the United States or the obligations of the District of Columbia or any possession of the United States, or any political subdivision of
any of the foregoing, which are described in Section 103(a) of the Internal Revenue Code and are graded in any of the highest three (3) major grades as determined by at least one Rating Agency; or secured, as to payments of principal and
interest, by a letter of credit provided by a financial institution or insurance provided by a bond insurance company which in each case is itself or its debt is rated in one of the highest three (3) major grades as determined by at least one
Rating Agency; 

  

	 	(c)	Banker’s acceptances, money-market accounts, commercial accounts, auction rate securities, demand deposit accounts, certificates of deposit, other time deposits or depository
receipts issued by or maintained with any Lender or any Affiliate thereof, or any bank, trust company, savings 

  

 13 

 and loan association, savings bank or other financial institution whose deposits are insured by the
Federal Deposit Insurance Corporation and whose reported capital and surplus equal at least $250,000,000, provided that such minimum capital and surplus requirement shall not apply to demand deposit accounts maintained by Borrowers in the ordinary
course of business; 
  

	 	(d)	Commercial paper rated at the time of purchase within the two highest classifications established by not less than two Rating Agencies, and which matures within 270 days after the
date of issue; 

  

	 	(e)	Obligations of any corporation that maintains a subordinated debt credit quality rating of at least A1 or A+ by Standard & Poor’s (or equivalent);

  

	 	(f)	Secured repurchase agreements against obligations itemized in paragraph (a) above, and executed by a bank or trust company or by members of the association of primary dealers
or other recognized dealers in United States government securities, the market value of which must be maintained at levels at least equal to the amounts advanced; and 

  

	 	(g)	Any fund or other pooling arrangement which exclusively purchases and holds the investments itemized in (a) through (f) above. 

 “Permitted Liens” shall mean with respect to any Person: 
  

	 	(a)	Liens for (i) taxes or governmental assessments or charges or (ii) customs duties in connection with the importation of goods to the extent such Liens attach to the
imported goods that are the subject of the duties, in each case (x) to the extent not yet due, (y) as to which the period of grace, if any, related thereto has not expired or (z) which are being contested in good faith by appropriate
proceedings, provided that in the case of any such contest, any proceedings for the enforcement of such liens have been suspended and adequate reserves with respect thereto are maintained on the books of such Person in conformity with GAAP;

  

	 	(b)	carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, processor’s, landlord’s liens or other like liens arising in the ordinary
course of business which secure obligations that are not overdue for a period of more than 30 days or which are being contested in good faith by appropriate proceedings, provided that in the case of any such contest, (x) any proceedings
commenced for the enforcement of such Liens have been suspended and (y) appropriate reserves with respect thereto are maintained on the books of such Person in conformity with GAAP; 

  

	 	(c)	(i) Liens incurred in the ordinary course of business to secure the performance of statutory obligations arising in connection with progress payments or advance payments due under
contracts with the United States government or any agency thereof entered into in the ordinary course of 

  

 14 

 business and (ii) Liens incurred or deposits made in the ordinary course of business to secure the
performance of statutory obligations (not otherwise permitted under subsection (g) of this definition), bids, leases, fee and expense arrangements with trustees and fiscal agents, trade contracts, surety and appeal bonds, performance bonds and
other similar obligations (exclusive of obligations incurred in connection with the borrowing of money, any lease-purchase arrangements or the payment of the deferred purchase price of property), provided, that in each case full provision for the
payment of all such obligations has been made on the books of such Person as may be required by GAAP; 
  

	 	(d)	any attachment or judgment lien that remains unpaid, unvacated, unbonded or unstayed by appeal or otherwise for a period ending on the earlier of (i) thirty
(30) consecutive days from the date of its attachment or entry (as applicable) or (ii) the commencement of enforcement steps with respect thereto, other than the filing of notice thereof in the public record; 

  

	 	(e)	minor survey exceptions or minor encumbrances, easements or reservations, or rights of others for rights-of-way, utilities and other similar purposes, or zoning or other
restrictions as to the use of real properties, or any interest of any lessor or sublessor under any lease permitted hereunder which, in each case, does not materially interfere with the business of such Person; 

  

	 	(f)	Liens arising in connection with worker’s compensation, unemployment insurance, old age pensions and social security benefits and similar statutory obligations, provided that
no enforcement proceedings in respect of such Liens are pending and provisions have been made for the payment of such liens on the books of such Person as may be required by GAAP; and 

  

	 	(g)	continuations of Liens that are permitted under subsections (a)-(f) hereof, provided such continuations do not violate the specific time periods set forth in subsections
(b) and (d) and provided further that such Liens do not extend to any additional property or assets of a Borrower or secure any additional obligations of Borrowers. 

 Regardless of the language set forth in this definition, no Lien over any real property interest of a Borrower granted to any Person shall be deemed a
“Permitted Lien” under the terms of this Agreement. 
 “Person” shall mean a natural person, corporation, limited
liability company, partnership, limited liability partnership, trust, incorporated or unincorporated organization, joint venture, joint stock company, firm or association or a government or any agency or political subdivision thereof or other entity
of any kind. 
 “PowerDsine” means PowerDsine, an Israeli corporation. 
  

 15 

 “PowerDsine Acquisition” means the acquisition by Parent or designated subsidiary other than
another Borrower, of all of the issued and outstanding capital stock of PowerDsine. 
 “Prime-based Advance” shall mean an Advance
which bears interest at the Prime-based Rate. 
 “Prime-based Rate” shall mean, for any day, that rate of interest which is equal
to the sum of the Applicable Margin plus the Prime Rate. 
 “Prime Rate” shall mean the per annum rate of interest announced by the
Agent, at its main office from time to time as its “prime rate” (it being acknowledged that such announced rate may not necessarily be the lowest rate charged by the Agent to any of its customers), which Prime Rate shall change
simultaneously with any change in such announced rate. 
 “Purchasing Lender” shall have the meaning set forth in
Section 13.11. 
 “Rating Agency” shall mean Moody’s Investor Services, Inc., Standard and Poor’s Ratings Services,
their respective successors or any other nationally recognized statistical rating organization which is acceptable to the Agent. 
 “Register” is defined in Section 13.8(g) hereof. 
 “Reimbursement Obligation(s)” shall mean the aggregate
amount of all unreimbursed drawings under all Letters of Credit (excluding for the avoidance of doubt, reimbursement obligations that are deemed satisfied pursuant to a deemed disbursement under Section 3.6(a)). 
 “Request for Advance” shall mean a Request for a Revolving Credit Advance. 
 “Request for Revolving Credit Advance” shall mean a request for a Revolving Credit Advance issued by Parent under Section 2.3 of this
Agreement in the form annexed hereto as Exhibit A. 
 “Requirement of Law” shall mean as to any Person, the certificate of
incorporation and bylaws, the partnership agreement or other organizational or governing documents of such Person and any law, treaty, rule or regulation or determination of an arbitration or a court or other governmental authority, in each case
applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
 “Responsible Officer” shall mean, with respect to any Person, the chief executive officer, chief financial officer, treasurer, president or controller of such Person, or with respect to compliance with financial covenants, the
chief financial officer or the treasurer of such Person, or any other officer of such Person having substantially the same authority and responsibility. 
 “Revolving Credit” shall mean the revolving credit loans to be advanced to Parent by the applicable Revolving Credit Lenders pursuant to Article 2 hereof, in an aggregate amount (subject to the terms
hereof), not to exceed, at any one time outstanding, the Revolving Credit Aggregate Commitment. 
  

 16 

 “Revolving Credit Advance” shall mean a borrowing requested by Parent and made by the Revolving
Credit Lenders under Section 2.1 of this Agreement, including without limitation any readvance, refunding or conversion of such borrowing pursuant to Section 2.3 hereof and any deemed disbursement of an Advance in respect of a Letter of
Credit under Section 3.6(a) hereof, and may include, subject to the terms hereof, Eurodollar-based Advances and Prime-based Advances. 
 “Revolving Credit Aggregate Commitment” shall mean (a) Seventy Five Million Dollars ($75,000,000), from the Effective Date through the first anniversary thereof; (b) Sixty Million Dollars ($60,000,000) from the first
Business Day after the first anniversary of the Effective Date through the second anniversary of the Effective Date; and (c) Fifty Million Dollars ($50,000,000) from and after the first Business Day after the second anniversary of the Effective
Date; subject, in all cases, to reduction or termination under Section 2.10, 2.11 or 9.2 hereof. 
 “Revolving Credit Commitment
Amount” shall mean with respect to any Revolving Credit Lender, (i) if the Revolving Credit Aggregate Commitment has not been terminated, the amount specified opposite such Revolving Credit Lender’s name in the column entitled
“Revolving Credit Commitment Amount” on Schedule 1.2, as adjusted from time to time in accordance with the terms hereof; and (ii) if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or
otherwise), the amount equal to its Percentage of the aggregate principal amount outstanding under the Revolving Credit (including the outstanding Letter of Credit Obligations). 
 “Revolving Credit Commitment Fee” shall mean the fee payable to Agent for distribution to the Revolving Credit Lenders in accordance with
Section 2.9 hereof. 
 “Revolving Credit Lenders” shall mean the financial institutions from time to time parties hereto as
lenders of the Revolving Credit. 
 “Revolving Credit Maturity Date” shall mean the earlier to occur of (i) January 1,
2010, and (ii) the date on which the Revolving Credit Aggregate Commitment shall terminate in accordance with the provisions of this Agreement. 
 “Revolving Credit Notes” shall mean the revolving credit notes described in Section 2.2 hereof, made by Borrowers to each of the Revolving Credit Lenders in the form annexed hereto as Exhibit B, as such
notes may be amended or supplemented from time to time, and any other notes issued in substitution, replacement or renewal thereof from time to time. 
 “Revolving Credit Percentage” means, with respect to any Revolving Credit Lender, the percentage specified opposite such Revolving Credit Lender’s name in the column entitled “Revolving Credit
Percentage” on Schedule 1.2, as adjusted from time to time in accordance with the terms hereof. 
 “Subordinated Debt” shall
mean any unsecured Funded Debt of a Borrower and other obligations under the Subordinated Debt Documents and any other Funded Debt of a Borrower which has been subordinated in right of payment and priority to the Indebtedness, all on terms and
conditions satisfactory to the Agent. 
  

 17 

 “Subordinated Debt Documents” shall mean and include any documents evidencing any Subordinated
Debt, in each case, as the same may be amended, modified, supplemented or otherwise modified from time to time in compliance with the terms of this Agreement. 
 “Subordination Agreements” shall mean, collectively, any subordination agreements entered into by any Person from time to time in favor of Agent in connection with any Subordinated Debt, the terms of which
are acceptable to the Agent, in each case as the same may be amended, restated or otherwise modified from time to time, and “Subordination Agreement” shall mean any one of them. 
 “Subsidiary(ies)” shall mean any other corporation, association, joint stock company, business trust, limited liability company, partnership or
any other business entity of which more than fifty percent (50%) of the outstanding voting stock, share capital, membership, partnership or other interests, as the case may be, is owned either directly or indirectly by any Person or one or more
of its Subsidiaries, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by any Person and/or its Subsidiaries. Unless otherwise specified to the contrary herein or the context
otherwise requires, Subsidiary(ies) shall refer to the Subsidiary(ies) of Borrowers. 
 “Uniform Commercial Code” or
“UCC” shall mean the Uniform Commercial Code as in effect in any applicable state; provided that, unless specified otherwise or the context otherwise requires, such terms shall refer to the Uniform Commercial Code as in effect in the State
of California. 
 “USA Patriot Act” is defined in Section 6.7. 
 “Weighted Percentage” shall mean with respect to any Lender, its percentage share as set forth in Schedule 1.2, as such Schedule may be revised
by the Agent from time to time, which percentage shall be calculated as follows: 
  

	 	(a)	as to such Lender, so long as the Revolving Credit Aggregate Commitment has not been terminated, its weighted percentage calculated by dividing (i) its Revolving Credit
Commitment Amount, by (ii) the Revolving Credit Aggregate Commitment; and 

  

	 	(b)	as to such Lender, if the Revolving Credit Aggregate Commitment has been terminated (whether by maturity, acceleration or otherwise), its weighted percentage calculated by dividing
(i) its applicable Revolving Credit Commitment Amount, by (ii) the aggregate principal amount outstanding under the Revolving Credit (including any outstanding Letter of Credit Obligations). 

 “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  

 18 

 2. REVOLVING CREDIT. 
 2.1 Commitment. Subject to the terms and conditions of this Agreement (including without limitation Section 2.3 hereof), each Revolving Credit Lender severally and for itself alone agrees to make Advances
of the Revolving Credit in Dollars to Parent from time to time on any Business Day during the period from the Effective Date hereof until (but excluding) the Revolving Credit Maturity Date in an aggregate amount, not to exceed at any one time
outstanding such Lender’s Revolving Credit Percentage of the Revolving Credit Aggregate Commitment. Subject to the terms and conditions set forth herein, advances, repayments and readvances may be made under the Revolving Credit. 
 2.2 Accrual of Interest and Maturity; Evidence of Indebtedness. 
  

	 	(a)	Each Borrower hereby unconditionally promises to pay to the Agent for the account of each Revolving Credit Lender the then unpaid principal amount of each Revolving Credit Advance
(plus all accrued and unpaid interest) of such Revolving Credit Lender to Parent on the Revolving Credit Maturity Date and on such other dates and in such other amounts as may be required from time to time pursuant to this Agreement. Subject to the
terms and conditions hereof, each Revolving Credit Advance shall, from time to time from and after the date of such Advance (until paid), bear interest at its Applicable Interest Rate. 

  

	 	(b)	Each Revolving Credit Lender shall maintain in accordance with its usual practice an account or accounts evidencing indebtedness of Borrowers to the appropriate lending office of
such Revolving Credit Lender resulting from each Revolving Credit Advance made by such lending office of such Revolving Credit Lender from time to time, including the amounts of principal and interest payable thereon and paid to such Revolving
Credit Lender from time to time under this Agreement. 

  

	 	(c)	The Agent shall maintain the Register pursuant to Section 13.8(g), and a subaccount therein for each Revolving Credit Lender, in which Register and subaccounts (taken together)
shall be recorded (i) the amount of each Revolving Credit Advance made hereunder, the type thereof and each Eurodollar-Interest Period applicable to any Eurodollar-based Advance, (ii) the amount of any principal or interest due and payable
or to become due and payable from Borrowers to each Revolving Credit Lender hereunder in respect of the Revolving Credit Advances and (iii) both the amount of any sum received by the Agent hereunder from a Borrower in respect of the Revolving
Credit Advances and each Revolving Credit Lender’s share thereof. 

  

	 	(d)	The entries made in the Register maintained pursuant to paragraph (c) of this Section 2.2 shall, absent manifest error, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations of Borrowers therein recorded; provided, however, that the 

  

 19 

 failure of any Revolving Credit Lender or the Agent to maintain the Register or any account, as
applicable, or any error therein, shall not in any manner affect the obligation of Borrowers to repay the Revolving Credit Advances (and all other amounts owing with respect thereto) made to Borrower by the Revolving Credit Lenders in accordance
with the terms of this Agreement. 
  

	 	(e)	Each Borrower agrees that, upon written request to the Agent by any Revolving Credit Lender, Borrowers will execute and deliver, to such Revolving Credit Lender, at Borrowers’
own expense, a Revolving Credit Note evidencing the outstanding Revolving Credit Advances owing to such Revolving Credit Lender. 

 2.3 Requests for and Refundings and Conversions of Advances. Parent may request an Advance of the Revolving Credit, a refund of any Revolving Credit Advance in the same type of Advance or to convert any Revolving Credit Advance to
any other type of Revolving Credit Advance only by delivery to Agent of a Request for Revolving Credit Advance executed by an Authorized Signer for Parent, subject to the following: 
  

	 	(a)	each such Request for Revolving Credit Advance shall set forth the information required on the Request for Revolving Credit Advance, including without limitation:

  

	 	(i)	the proposed date of such Revolving Credit Advance (or the refunding or conversion of an outstanding Revolving Credit Advance), which must be a Business Day;

  

	 	(ii)	whether such Advance is a new Revolving Credit Advance or a refunding or conversion of an outstanding Revolving Credit Advance; and 

  

	 	(iii)	whether such Revolving Credit Advance is to be a Prime-based Advance or a Eurodollar-based Advance, and, except in the case of a Prime-based Advance, the first Eurodollar-Interest
Period applicable thereto, provided, however, that the initial Revolving Credit Advance made under this Agreement shall be a Prime-based Advance, which may then be converted into a Eurodollar-based Advance in compliance with this Agreement.

  

	 	(b)	each such Request for a Revolving Credit Advance shall be delivered to Agent by 12:00 p.m. (California time) three (3) Business Days prior to the proposed date of the Revolving
Credit Advance, except in the case of a Prime-based Advance, for which the Request for Revolving Credit Advance must be delivered by 12:00 p.m. (California time) on the proposed date for such Revolving Credit Advance; 

  

	 	(c)	on the proposed date of such Revolving Credit Advance, the sum of (x) the aggregate principal amount of all Revolving Credit Advances 

  

 20 

 outstanding on such date (including, without duplication) the Advances that are deemed to be disbursed
by Agent under Section 3.6(a) hereof in respect of Borrowers’ Reimbursement Obligations hereunder, plus (y) the Letter of Credit Obligations as of such date, in each case after giving effect to all outstanding requests for Revolving
Credit Advances and for the issuance of any Letters of Credit, shall not exceed the Revolving Credit Aggregate Commitment; 
  

	 	(d)	in the case of a Prime-based Advance, the principal amount of the initial funding of such Advance, as opposed to any refunding or conversion thereof, and each additional Prime-based
Advance, shall be at least Five Hundred Thousand Dollars ($500,000) or the remainder available under the Revolving Credit Aggregate Commitment if less than Five Hundred Thousand Dollars ($500,000); 

  

	 	(e)	in the case of a Eurodollar-based Advance, the principal amount of such Advance, plus the amount of any other outstanding Revolving Credit Advance to be then combined therewith
having the same Eurodollar-Interest Period, if any, shall be at least One Million Dollars ($1,000,000) (or a larger integral multiple of One Hundred Thousand Dollars ($100,000)) or the remainder available under the Revolving Credit Aggregate
Commitment if less than One Million Dollars ($1,000,000) and at any one time there shall not be in effect more than seven (7) different Eurodollar-Interest Periods; 

  

	 	(f)	a Request for a Revolving Credit Advance, once delivered to Agent, shall not be revocable by any Borrower and shall constitute a certification by Borrowers as of the date thereof
that: 

  

	 	(i)	all conditions to the making of Revolving Credit Advances set forth in this Agreement have been satisfied, and shall remain satisfied to the date of such Revolving Credit Advance
(both before and immediately after giving effect to such Revolving Credit Advance); 

  

	 	(ii)	there is no Default or Event of Default in existence, and none will exist upon the making of such Revolving Credit Advance (both before and immediately after giving effect to such
Revolving Credit Advance); and 

  

	 	(iii)	the representations and warranties of Borrowers contained in this Agreement and the other Loan Documents are true and correct in all material respects and shall be true and correct
in all material respects as of the date of the making of such Revolving Credit Advance (both before and immediately after giving effect to such Revolving Credit Advance), other than any representation or warranty that expressly speaks only as of a
different date; 

  

 21 

 Agent, acting on behalf of the Revolving Credit Lenders, may also, at its option, lend under this Section 2.3 upon
the telephone or email request of an Authorized Signer of Parent to make such requests and, in the event Agent, acting on behalf of the Revolving Credit Lenders, makes any such Advance upon a telephone or email request, an Authorized Signer shall
fax or deliver by electronic file to Agent, on the same day as such telephone or email request, an executed Request for Revolving Credit Advance. Borrowers hereby authorize Agent to disburse Advances under this Section 2.3 pursuant to the
telephone or email instructions of any person purporting to be an Authorized Signer. Notwithstanding the foregoing, each Borrower acknowledges that Borrowers shall bear all risk of loss resulting from disbursements made upon any telephone or email
request. Each telephone or email request for an Advance from an Authorized Signer for Parent shall constitute a certification of the matters set forth in the Request for Revolving Credit Advance form as of the date of such requested Advance.

 2.4 Disbursement of Advances. 
  

	 	(a)	Upon receiving any Request for Revolving Credit Advance from Parent under Section 2.3 hereof, Agent shall promptly notify each Revolving Credit Lender by wire, telex or
telephone (confirmed by wire, telecopy or telex) of the amount of such Advance being requested and the date such Revolving Credit Advance is to be made by each Revolving Credit Lender in an amount equal to its Revolving Credit Percentage of such
Advance. Unless such Revolving Credit Lender’s commitment to make Revolving Credit Advances hereunder shall have been suspended or terminated in accordance with this Agreement, each such Revolving Credit Lender shall make available the amount
of its Revolving Credit Percentage of each Revolving Credit Advance in immediately available funds to Agent, as follows: 

  

	 	(i)	for Prime-based Advances, at the office of Agent located at 500 North State College Boulevard, Suite 570, Orange, California 92868, not later than 1:00 p.m. (California time) on the
date of such Advance; and 

  

	 	(ii)	for Eurodollar-based Advances, at the Agent’s Correspondent for the account of the Eurodollar Lending Office of the Agent, not later than 12:00 p.m. (the time of the
Agent’s Correspondent) on the date of such Advance. 

  

	 	(b)	Subject to submission of an executed Request for Revolving Credit Advance by Parent without exceptions noted in the compliance certification therein, Agent shall make available to
Parent the aggregate of the amounts so received by it from the Revolving Credit Lenders in like funds and currencies: 

  

	 	(i)	for Prime-based Advances, not later than 4:00 p.m. (California time) on the date of such Revolving Credit Advance, by credit to an account of Parent maintained with Agent or to such
other account or third party as Parent may reasonably direct in writing, provided such direction is timely given; and 

  

 22 

	 	(ii)	for Eurodollar-based Advances, not later than 4:00 p.m. (the time of the Agent’s Correspondent) on the date of such Revolving Credit Advance, by credit to an account of Parent
maintained with Agent’s Correspondent or to such other account or third party as Parent may direct in writing, provided such direction is timely given. 

  

	 	(c)	Agent shall deliver the documents and papers received by it for the account of each Revolving Credit Lender to such Revolving Credit Lender. Unless Agent shall have been notified by
any Revolving Credit Lender at least two (2) Business Days prior to the date of any proposed Revolving Credit Advance that such Revolving Credit Lender does not intend to make available to Agent such Revolving Credit Lender’s Percentage of
such Advance, Agent may assume that such Revolving Credit Lender has made such amount available to Agent on such date, as aforesaid. Agent may, but shall not be obligated to, make available to Parent the amount of such payment in reliance on such
assumption. If such amount is not in fact made available to Agent by such Revolving Credit Lender, as aforesaid, Agent shall be entitled to recover such amount on demand from such Revolving Credit Lender. If such Revolving Credit Lender does not pay
such amount forthwith upon Agent’s demand therefor and the Agent has in fact made a corresponding amount available to Parent, the Agent shall promptly notify Parent and Borrowers shall pay such amount to Agent, if such notice is delivered to
Parent prior to 1:00 p.m. (California time) on a Business Day, on the day such notice is received, and otherwise on the next Business Day, and such amount paid by Borrowers shall be applied as a prepayment of the Revolving Credit (without any
corresponding reduction in the Revolving Credit Aggregate Commitment), reimbursing Agent for having funded said amounts on behalf of such Revolving Credit Lender. Borrowers shall retain their claim against such Revolving Credit Lender with respect
to the amounts repaid by them to Agent and, if such Revolving Credit Lender subsequently makes such amounts available to Agent, Agent shall promptly make such amounts available to Parent as a Revolving Credit Advance. Agent shall also be entitled to
recover from such Revolving Credit Lender or Borrowers, as the case may be, but without duplication, interest on such amount in respect of each day from the date such amount was made available by Agent to Parent, to the date such amount is recovered
by Agent, at a rate per annum equal to: 

  

	 	(i)	in the case of such Revolving Credit Lender, for the first two (2) Business Days such amount remains unpaid, the Federal Funds Effective Rate, and thereafter, at the rate of
interest then applicable to such Revolving Credit Advances; and 

  

 23 

	 	(ii)	in the case of Borrowers, the rate of interest then applicable to such Advance of the Revolving Credit. 

 Until such Revolving Credit Lender has paid Agent such amount, such Revolving Credit Lender shall have no interest in or rights with respect to such Advance for any purpose whatsoever. The obligation of any Revolving
Credit Lender to make any Revolving Credit Advance hereunder shall not be affected by the failure of any other Revolving Credit Lender to make any Advance hereunder, and no Revolving Credit Lender shall have any liability to any Borrower or any of
their Subsidiaries, the Agent, any other Revolving Credit Lender, or any other party for another Revolving Credit Lender’s failure to make any loan or Advance hereunder. 
 2.5 [Intentionally Omitted]. 
 2.6
Interest Payments; Default Interest. (a) Interest on the unpaid balance of all Prime-based Advances from time to time outstanding shall accrue from the date of such Advance to the date repaid, at a per annum interest rate equal to the
Prime-based Rate, and shall be payable in immediately available funds commencing on first day of the first full month after such Advance is made, and on the first day of each calendar month thereafter. Whenever any payment under this
Section 2.6(a) shall become due on a day which is not a Business Day, the date for payment thereof shall be extended to the next Business Day. Interest accruing at the Prime-based Rate shall be computed on the basis of a 360 day year and
assessed for the actual number of days elapsed, and in such computation effect shall be given to any change in the interest rate resulting from a change in the Prime-based Rate on the date of such change in the Prime-based Rate. 
  

	 	(b)	Interest on each Eurodollar-based Advance of the Revolving Credit shall accrue at its Eurodollar-based Rate and shall be payable in immediately available funds on the last day of
the Eurodollar-Interest Period applicable thereto (and, if any Eurodollar-Interest Period shall exceed three months, then on the last Business Day of the third month of such Eurodollar-Interest Period, and at three month intervals thereafter).
Interest accruing at the Eurodollar-based Rate shall be computed on the basis of a 360 day year and assessed for the actual number of days elapsed from the first day of the Eurodollar-Interest Period applicable thereto to but not including the last
day thereof. 

  

	 	(c)	Notwithstanding anything to the contrary in the preceding sections, all accrued and unpaid interest on any Revolving Credit Advance refunded or converted pursuant to
Section 2.3 hereof, shall be due and payable in full on the date such Advance is refunded or converted. 

  

	 	(d)	In the case of any Event of Default under Section 9.1(i), immediately upon the occurrence thereof, and in the case of any other Event of Default, immediately upon receipt by
Agent of notice from the Majority Revolving Credit Lenders, interest shall be payable on demand on all Revolving Credit Advances from time to time outstanding at a per annum rate equal to the Applicable Interest Rate in respect of each such Advance
plus, in 

  

 24 

 the case of Eurodollar-based Advances, two percent (2%) for the remainder of the then existing
Interest Period, if any, and at all other such times, and for all Prime-based Advances from time to time outstanding, at a per annum rate equal to the Prime-based Rate plus two percent (2%). 
 2.7 Optional Prepayments. 
  

	 	(a)	(i) Borrowers may prepay the outstanding principal of any Prime-based Advance(s) of the Revolving Credit at any time (subject to not less than three (3) Business Day’s
notice to Agent), provided that, any partial prepayment shall be at least Five Hundred Thousand Dollars ($500,000), and (ii) subject to Section 2.10(c) hereof, Borrowers may prepay the outstanding principal of any Eurodollar-based Advance
of the Revolving Credit at any time (subject to not less than three (3) Business Day’s notice to Agent) provided that, provided that, any partial prepayment shall be at least Five Hundred Thousand Dollars ($500,000).

  

	 	(b)	Any prepayment of a Prime-based Advance made in accordance with this Section shall be without premium or penalty and any prepayment of any other type of Advance shall be subject to
the provisions of Section 11.1 hereof, but otherwise without premium or penalty. 

 2.8 Prime-based Advance in Absence
of Election or Upon Default. If, (a) as to any outstanding Eurodollar-based Advance of the Revolving Credit, Agent has not received payment of all outstanding principal and accrued interest on the last day of the Interest Period applicable
thereto, or does not receive a timely Request for Advance meeting the requirements of Section 2.3 hereof with respect to the refunding or conversion of such Advance, or (b) subject to Section 2.6(d) hereof, if on the last day of the
applicable Interest Period a Default or an Event of Default shall have occurred and be continuing, then, on the last day of the applicable Interest Period the principal amount of any Eurodollar-based Advance which has not been prepaid shall, absent
a contrary election of the Majority Revolving Credit Lenders, be converted automatically to a Prime-based Advance and the Agent shall thereafter promptly notify Parent of said action. 
 2.9 Revolving Credit Commitment Fee. From the Effective Date to the Revolving Credit Maturity Date, Borrowers shall pay to the Agent for
distribution to the Revolving Credit Lenders pro-rata in accordance with their respective Percentages, a Revolving Credit Commitment Fee quarterly in arrears commencing April 1, 2007 (in respect of the prior quarter or any portion thereof), and
on the first day of each calendar quarter thereafter. Whenever any payment of the Revolving Credit Commitment Fee shall be due on a day which is not a Business Day, the date for payment thereof shall be extended to the next Business Day. The
Revolving Credit Commitment Fee payable to each Revolving Credit Lender shall be determined by multiplying the Applicable Fee Percentage times the average daily amount by which such Lender’s Percentage of the Revolving Credit Aggregate
Commitment then in effect exceeds the sum of (i) such Lender’s Revolving Credit Percentage of the aggregate principal amount of Revolving Credit Advances outstanding from time to time during such period and (ii) such Lender’s
Percentage of the Letter of Credit Obligations outstanding from time to time during such period, calculated on a daily basis. The Revolving Credit Commitment Fee shall be 
  

 25 

 computed on the basis of a year of three hundred sixty (360) days and assessed for the actual number of days
elapsed. Upon receipt of such payment, Agent shall make prompt payment to each Lender of its share of the Revolving Credit Commitment Fee based upon its respective Revolving Credit Percentage. It is expressly understood that the Revolving Credit
Commitment Fees described in this Section are not refundable under any circumstances. 
 2.10 Mandatory Repayment of Revolving Credit
Advances. 
  

	 	(a)	If at any time and for any reason the aggregate outstanding principal amount of Revolving Credit Advances, plus the outstanding Letter of Credit Obligations, shall exceed the
Revolving Credit Aggregate Commitment, Borrowers shall immediately reduce any pending request for a Revolving Credit Advance on such day by the amount of such excess and, to the extent any excess remains thereafter, repay any Revolving Credit
Advances in an amount equal to the lesser of the outstanding amount of such Advances and the amount of such remaining excess, with such amounts to be applied between the Revolving Credit Advances as determined by the Agent and then, to the extent
that any excess remains after payment in full of all Revolving Credit Advances, to provide cash collateral in support of any Letter of Credit Obligations in an amount equal to the lesser of 105% of the amount of such Letter of Credit Obligations and
the amount of such remaining excess, with such cash collateral to be provided on the basis set forth in Section 9.2 hereof. Each Borrower acknowledges that, in connection with any repayment required hereunder, it shall also be responsible for
the reimbursement of any prepayment or other costs required under Section 11.1 hereof. Any payments made pursuant to this Section shall be applied first to outstanding Prime-based Advances under the Revolving Credit and then to Eurodollar-based
Advances of the Revolving Credit. 

  

	 	(b)	Subject to Article 10 hereof, any payments made pursuant to this Section shall be applied first to outstanding Prime-based Advances under the Revolving Credit and then to
Eurodollar-based Advances. If any amounts remain thereafter, a portion of such prepayment equivalent to the undrawn amount of any outstanding Letters of Credit shall be held by Lender as cash collateral for the Reimbursement Obligations, with any
additional prepayment monies being applied to any Fees, costs or expenses due and outstanding under this Agreement, and with the remainder of such prepayment thereafter being returned to Parent. 

  

	 	(c)	To the extent that, on the date any mandatory repayment of the Revolving Credit Advances under this Section 2.10 or payment pursuant to the terms of any of the Loan Documents
is due, the Indebtedness under the Revolving Credit or any other Indebtedness to be prepaid is being carried, in whole or in part, at the Eurodollar-based Rate and no Default or Event of Default has occurred and is continuing, Borrowers may deposit
the amount of such mandatory prepayment in a cash collateral account to be 

  

 26 

 held by the Agent, for and on behalf of the Revolving Credit Lenders, on such terms and conditions as
are reasonably acceptable to Agent and upon such deposit the obligation of Borrowers to make such mandatory prepayment shall be deemed satisfied. Subject to the terms and conditions of said cash collateral account, sums on deposit in said cash
collateral account shall be applied (until exhausted) to reduce the principal balance of the Revolving Credit on the last day of each Eurodollar-Interest Period attributable to the Eurodollar-based Advances of such Revolving Advance, thereby
avoiding breakage costs under Section 11.1 hereof; provided, however, that if a Default or Event of Default shall have occurred at any time while sums are on deposit in the cash collateral account, Agent may, in its sole discretion, elect to
apply such sums to reduce the principal balance of such Eurodollar-based Advances prior to the last day of the applicable Eurodollar-Interest Period, and Borrowers will be obligated to pay any resulting breakage costs under Section 11.1.

 2.11 Optional Reduction or Termination of Revolving Credit Aggregate Commitment. Borrowers may, upon at least five
(5) Business Days’ prior written notice to the Agent, permanently reduce the Revolving Credit Aggregate Commitment in whole at any time, or in part from time to time, without premium or penalty, provided that: (i) each partial
reduction of the Revolving Credit Aggregate Commitment shall be in an aggregate amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000) or a larger integral multiple of Two Million Five Hundred Thousand Dollars ($2,500,000);
(ii) each reduction shall be accompanied by the payment of the Revolving Credit Commitment Fee, if any, accrued and unpaid to the date of such reduction; (iii) Borrowers shall prepay in accordance with the terms hereof the amount, if any,
by which the aggregate unpaid principal amount of Revolving Credit Advances (including, without duplication, any deemed Advances made under Section 3.6 hereof) outstanding hereunder, plus the Letter of Credit Obligations, exceeds the amount of
the then applicable Revolving Credit Aggregate Commitment as so reduced, together with interest thereon to the date of prepayment; and (iv) no reduction shall reduce the Revolving Credit Aggregate Commitment to an amount which is less than the
aggregate undrawn amount of any Letters of Credit outstanding at such time; provided, however that if the termination or reduction of the Revolving Credit Aggregate Commitment requires the prepayment of a Eurodollar-based Advance and such
termination or reduction is made on a day other than the last Business Day of the then current Interest Period applicable to such Eurodollar-based Advance, then, pursuant to Section 11.1, Borrowers shall compensate the Revolving Credit Lenders
for any losses or, so long as no Default or Event of Default has occurred and is continuing, Borrowers may deposit the amount of such prepayment in a collateral account as provided in Section 2.10(b). Reductions of the Revolving Credit
Aggregate Commitment and any accompanying prepayments of Advances of the Revolving Credit shall be distributed by Agent to each Revolving Credit Lender in accordance with such Revolving Credit Lender’s Revolving Percentage thereof, and will not
be available for reinstatement by or readvance to any Borrower. Any reductions of the Revolving Credit Aggregate Commitment hereunder shall reduce each Revolving Credit Lender’s portion thereof proportionately (based on the applicable
Percentages), and shall be permanent and irrevocable. Any payments made pursuant to this Section shall be applied first to outstanding Prime-based Advances under the Revolving Credit and then to Eurodollar-based Advances of the Revolving Credit.

  

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 2.12 Use of Proceeds of Advances. Advances of the Revolving Credit shall be used to finance a
portion of the PowerDsine Acquisition, and for working capital and other lawful corporate purposes. 
 3. LETTERS OF CREDIT. 
 3.1 Letters of Credit. Subject to the terms and conditions of this Agreement, Issuing Lender may through the Issuing Office, at any time and from
time to time from and after the date hereof until thirty (30) days prior to the Revolving Credit Maturity Date, upon the written request of Parent accompanied by a duly executed Letter of Credit Agreement and such other documentation related to
the requested Letter of Credit as the Issuing Lender may require, issue Letters of Credit in Dollars for the account of Parent, in an aggregate amount for all Letters of Credit issued hereunder at any one time outstanding not to exceed the Letter of
Credit Maximum Amount. Each Letter of Credit shall be in a minimum face amount of One Hundred Thousand Dollars ($100,000) (or such lesser amount as may be agreed to by Issuing Lender) and each Letter of Credit (including any renewal thereof) shall
expire not later than the first to occur of (i) one year after the date of issuance thereof and (ii) ten (10) Business Days prior to the Revolving Credit Maturity Date in effect on the date of issuance thereof. The submission of all
applications in respect of and the issuance of each Letter of Credit hereunder shall be subject in all respects to the International Standby Practices 98, and any successor documentation thereto and to the extent not inconsistent therewith, the laws
of the State of California. In the event of any conflict between this Agreement and any Letter of Credit Document other than any Letter of Credit, this Agreement shall control. 
 3.2 Conditions to Issuance. No Letter of Credit shall be issued at the request and for the account of Parent unless, as of the date of issuance of
such Letter of Credit: 
  

	 	(a)	(i) after giving effect to the Letter of Credit requested, the Letter of Credit Obligations do not exceed the Letter of Credit Maximum Amount; and (ii) after giving effect to
the Letter of Credit requested, the Letter of Credit Obligations on such date plus the aggregate amount of all Revolving Credit Advances (including all Advances deemed disbursed by Agent under Section 3.6(a) hereof in respect of Borrowers’
Reimbursement Obligations) hereunder requested or outstanding on such date do not exceed the Revolving Credit Aggregate Commitment; 

  

	 	(b)	the representations and warranties of Borrowers contained in this Agreement and the other Loan Documents are true and correct in all material respects and shall be true and correct
in all material respects as of date of the issuance of such Letter of Credit (both before and immediately after the issuance of such Letter of Credit), other than any representation or warranty that expressly speaks only as of a different date;

  

	 	(c)	there is no Default or Event of Default in existence, and none will exist upon the issuance of such Letter of Credit; 

  

 28 

	 	(d)	Parent shall have delivered to Issuing Lender at its Issuing Office, not less than three (3) Business Days prior to the requested date for issuance (or such shorter time as the
Issuing Lender, in its sole discretion, may permit), the Letter of Credit Agreement related thereto, together with such other documents and materials as may be required pursuant to the terms thereof, and the terms of the proposed Letter of Credit
shall be reasonably satisfactory to Issuing Lender; 

  

	 	(e)	no order, judgment or decree of any court, arbitrator or governmental authority shall purport by its terms to enjoin or restrain Issuing Lender from issuing the Letter of Credit
requested, or any Revolving Credit Lender from taking an assignment of its Revolving Credit Percentage thereof pursuant to Section 3.6 hereof, and no law, rule, regulation, request or directive (whether or not having the force of law) shall
prohibit the Issuing Lender from issuing, or any Revolving Credit Lender from taking an assignment of its Revolving Credit Percentage of, the Letter of Credit requested or letters of credit generally; 

  

	 	(f)	there shall have been (i) no introduction of or change in the interpretation of any law or regulation, (ii) no declaration of a general banking moratorium by banking
authorities in the United States, California or the respective jurisdictions in which the Revolving Credit Lenders, Parent and the beneficiary of the requested Letter of Credit are located, and (iii) no establishment of any new restrictions by
any central bank or other governmental agency or authority on transactions involving letters of credit or on banks generally that, in any case described in this clause (e), would make it unlawful or unduly burdensome for the Issuing Lender to issue
or any Revolving Credit Lender to take an assignment of its Revolving Credit Percentage of the requested Letter of Credit or letters of credit generally; and 

  

	 	(g)	Issuing Lender shall have received the issuance fees required in connection with the issuance of such Letter of Credit pursuant to Section 3.4 hereof. 

Each Letter of Credit Agreement submitted to Issuing Lender pursuant hereto shall constitute the certification by Borrowers of the matters set forth in Sections 3.2
(a) through (c) hereof. The Agent shall be entitled to rely on such certification without any duty of inquiry. 
 3.3
Notice. The Issuing Lender shall deliver to the Agent, concurrently with or promptly following its issuance of any Letter of Credit, a true and complete copy of each Letter of Credit. Promptly upon its receipt thereof, Agent shall give
notice, substantially in the form attached as Exhibit C, to each Revolving Credit Lender of the issuance of each Letter of Credit, specifying the amount thereof and the amount of such Revolving Credit Lender’s Percentage thereof. 
  

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 3.4 Letter of Credit Fees; Increased Costs. (a) Borrowers shall pay letter of credit fees as
follows: 
  

	 	(i)	A per annum letter of credit fee with respect to the undrawn amount of each Letter of Credit issued pursuant hereto (based on the amount of each Letter of Credit) in the amount of
the Applicable Fee Percentage (determined with reference to Schedule 1.1 to this Agreement) shall be paid to the Agent for distribution to the Revolving Credit Lenders in accordance with their Percentages. 

  

	 	(ii)	A letter of credit facing fee on the face amount of each Letter of Credit shall be paid to the Agent for distribution to the Issuing Lender for its own account.

  

	 	(b)	All payments by Borrowers to the Agent for distribution to the Issuing Lender or the Revolving Credit Lenders under this Section 3.4 shall be made in Dollars in immediately
available funds at the Issuing Office or such other office of the Agent as may be designated from time to time by written notice to Parent by the Agent. The fees described in clauses (a)(i) and (ii) above (i) shall be nonrefundable under
all circumstances, (ii) in the case of fees due under clause (a)(i) above, shall be payable semi-annually in advance and (iii) in the case of fees due under clause (a)(ii) above, shall be payable upon the issuance of such Letter of Credit
and upon any amendment thereto or extension thereof. The fees due under clause (a)(i) above shall be determined by multiplying the Applicable Fee Percentage times the undrawn amount of the face amount of each such Letter of Credit on the date of
determination, and shall be calculated on the basis of a 360 day year and assessed for the actual number of days from the date of the issuance thereof to the stated expiration thereof. The parties hereto acknowledge that, unless the Issuing Lender
otherwise agrees, any material amendment and any extension to a Letter of Credit issued hereunder shall be treated as a new Letter of Credit for the purposes of the letter of credit facing fee. 

  

	 	(c)	If any change in any law or regulation or in the interpretation thereof by any court or administrative or governmental authority charged with the administration thereof, adopted
after the date hereof, shall either (i) impose, modify or cause to be deemed applicable any reserve, special deposit, limitation or similar requirement against letters of credit issued or participated in by, or assets held by, or deposits in or
for the account of, Issuing Lender or any Revolving Credit Lender or (ii) impose on Issuing Lender or any Revolving Credit Lender any other condition regarding this Agreement, the Letters of Credit or any participations in such Letters of
Credit, and the result of any event referred to in clause (i) or (ii) above shall be to increase the cost or expense to Issuing Lender or such Revolving Credit Lender of issuing or maintaining or participating in any

  

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 of the Letters of Credit (which increase in cost or expense shall be determined by the Issuing
Lender’s or such Revolving Credit Lender’s reasonable allocation of the aggregate of such cost increases and expenses resulting from such events), then, upon demand by the Issuing Lender or such Revolving Credit Lender, as the case may be,
Borrowers shall, within thirty (30) days following demand for payment, pay to Issuing Lender or such Revolving Credit Lender, as the case may be, from time to time as specified by the Issuing Lender or such Revolving Credit Lender, additional
amounts which shall be sufficient to compensate the Issuing Lender or such Revolving Credit Lender for such increased cost and expense (together with interest on each such amount from ten days after the date such payment is due until payment in full
thereof at the Prime-based Rate), provided that if the Issuing Lender or such Revolving Credit Lender could take any reasonable action, without cost or administrative or other burden or restriction to such Lender, to mitigate or eliminate such cost
or expense, it agrees to do so within a reasonable time after becoming aware of the foregoing matters. Each demand for payment under this Section 3.4(c) shall be accompanied by a certificate of Issuing Lender or the applicable Revolving Credit
Lender setting forth the amount of such increased cost or expense incurred by the Issuing Lender or such Revolving Credit Lender, as the case may be, as a result of any event mentioned in clause (i) or (ii) above, and in reasonable detail,
the methodology for calculating and the calculation of such amount, which certificate shall be prepared in good faith and shall be conclusive evidence, absent manifest error, as to the amount thereof. 
 3.5 Other Fees. In connection with the Letters of Credit, and in addition to the Letter of Credit Fees, Borrowers shall pay, for the sole account
of the Issuing Lender, standard documentation, administration, payment and cancellation charges assessed by Issuing Lender or the Issuing Office, at the times, in the amounts and on the terms set forth or to be set forth from time to time in the
standard fee schedule of the Issuing Office in effect from time to time. 
 3.6 Drawings and Demands for Payment Under Letters of
Credit. 
  

	 	(a)	If the Issuing Lender shall honor a draft or other demand for payment presented or made under any Letter of Credit, Borrowers agree to pay to the Issuing Lender an amount equal to
the amount paid by the Issuing Lender in respect of such draft or other demand under such Letter of Credit and all reasonable expenses paid or incurred by the Agent relative thereto not later than 1:00 p.m. (California time), on (i) the
Business Day that Parent receives notice of such presentment and honor, if such notice is received prior to 11:00 a.m. (California time) or (ii) the Business Day immediately following the day that Parent received such notice, if such notice is
received after 11:00 a.m. (California time). Unless Borrowers shall have made such payment to the Agent for the account of the Issuing Lender on such day, the Agent shall be deemed to have disbursed to Parent and to have elected to substitute for
the reimbursement obligation, 

  

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 with respect to the applicable Letter of Credit honored by the Issuing Lender, a Prime-based Advance of
the Revolving Credit (which Advance may be subsequently converted at any time into a Eurodollar-based Advance pursuant to Section 2.3 hereof) on behalf of and for the account of the Revolving Credit Lenders in an aggregate amount equal to the
amount so paid by the Issuing Lender in respect of such draft or other demand under such Letter of Credit. Such Prime-based Advance shall be deemed disbursed notwithstanding any failure to satisfy any conditions for disbursement of any Advance set
forth in Section 2 hereof and, to the extent of the Advances so disbursed, the reimbursement obligation of Borrowers under this Section 3.6 shall be deemed satisfied. 
  

	 	(b)	If the Issuing Lender shall honor a draft or other demand for payment presented or made under any Letter of Credit, the Issuing Lender shall provide notice thereof to Parent on the
date such draft or demand is honored, and to each Revolving Credit Lender on such date unless Borrowers shall have satisfied their reimbursement obligations under Section 3.6(a) hereof by payment to the Agent (for the benefit of the Issuing
Lender) on such date. The Issuing Lender shall further use reasonable efforts to provide notice to Parent prior to honoring any such draft or other demand for payment, but such notice, or the failure to provide such notice, shall not affect the
rights or obligations of the Issuing Lender with respect to any Letter of Credit or the rights and obligations of the parties hereto, including without limitation the obligations of Borrowers under Section 3.6(a) hereof.

  

	 	(c)	Upon issuance by the Issuing Lender of each Letter of Credit hereunder, each Revolving Credit Lender shall automatically acquire a pro rata participation interest in such Letter of
Credit and each related Letter of Credit Payment based on its respective Revolving Credit Percentage. Each Revolving Credit Lender, on the date a draft or demand under any Letter of Credit is honored (or the next succeeding Business Day if the
notice required to be given by Issuing Lender to the Revolving Credit Lenders under Section 3.6(b) hereof is not given to the Revolving Credit Lenders prior to 2:00 p.m. (California time) on such date of draft or demand), shall make its
Revolving Credit Percentage of the amount paid by the Issuing Lender, and not reimbursed by Borrowers on such day, in immediately available funds at the principal office of the Agent for the account of Issuing Lender. If and to the extent such
Revolving Credit Lender shall not have made such pro rata portion available to the Agent, such Revolving Credit Lender agrees to pay to the Agent for the account of the Issuing Lender forthwith on demand such amount together with interest thereon,
for each day from the date such amount was paid by the Issuing Lender until such amount is so made available to the Agent at the Federal Funds Rate for the first three days and thereafter at a Prime-based Rate applicable during such period to the
related Advance deemed to have been disbursed under Section 3.6(a) in respect of the reimbursement obligation 

  

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 of Borrowers. If such Revolving Credit Lender shall pay such amount to the Agent for the account of
Issuing Lender together with such interest, if any, such amount so paid shall be deemed to constitute an Advance by such Revolving Credit Lender disbursed in respect of the reimbursement obligation of Borrowers under Section 3.6(a) hereof for
purposes of this Agreement, effective as of the dates applicable under said Section 3.6(a). The failure of any Revolving Credit Lender to make its pro rata portion of any such amount paid by the Issuing Lender available to the Agent for the
account of Issuing Lender shall not relieve any other Revolving Credit Lender of its obligation to make available its pro rata portion of such amount, but no Revolving Credit Lender shall be responsible for failure of any other Revolving Credit
Lender to make such pro rata portion available to the Agent for the account of Issuing Lender. 
 Notwithstanding the foregoing however no
Revolving Credit Lender shall be deemed to have acquired a participation in a Letter of Credit if the officers of the Issuing Lender immediately responsible for matters concerning this Agreement shall have received written notice from Agent or any
Lender at least two (2) Business Days prior to the date of the issuance of such Letter of Credit that the issuance of Letters of Credit should be suspended based on the occurrence and continuance of a Default or Event of Default and stating
that such notice is a “notice of default”; provided, however that the Revolving Credit Lenders shall be deemed to have acquired such a participation upon the date on which such Default or Event of Default has been waived by the requisite
Revolving Credit Lenders, as applicable. 
  

	 	(d)	Nothing in this Agreement shall be construed to require or authorize any Revolving Credit Lender to issue any Letter of Credit, it being recognized that the Issuing Lender shall be
the sole issuer of Letters of Credit under this Agreement. 

 3.7 Obligations Irrevocable. The obligations of Borrowers
to make payments to Agent for the account of Issuing Lender or the Revolving Credit Lenders with respect to Letter of Credit Obligations under Section 3.6 hereof, shall be unconditional and irrevocable and not subject to any qualification or
exception whatsoever, including, without limitation: 
  

	 	(a)	Any lack of validity or enforceability of any Letter of Credit, any Letter of Credit Agreement, any other documentation relating to any Letter of Credit, this Agreement or any of
the other Loan Documents (the “Letter of Credit Documents”); 

  

	 	(b)	Any amendment, modification, waiver, consent, or any substitution, exchange or release of or failure to perfect any interest in collateral or security, with respect to or under any
Letter of Credit Document; 

  

	 	(c)	The existence of any claim, setoff, defense or other right which any Borrower may have at any time against any beneficiary or any transferee of any Letter of Credit (or any persons
or entities for whom any such beneficiary or any such transferee may be acting), the Agent, the Issuing 

  

 33 

 Lender or any Revolving Credit Lender or any other Person, whether in connection with this Agreement,
any of the Letter of Credit Documents, the transactions contemplated herein or therein or any unrelated transactions; 
  

	 	(d)	Any draft or other statement or document presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect; 

  

	 	(e)	Payment by the Issuing Lender to the beneficiary under any Letter of Credit against presentation of documents which do not comply with the terms of such Letter of Credit, including
failure of any documents to bear any reference or adequate reference to such Letter of Credit; 

  

	 	(f)	Any failure, omission, delay or lack on the part of the Agent, Issuing Lender or any Revolving Credit Lender or any party to any of the Letter of Credit Documents to enforce, assert
or exercise any right, power or remedy conferred upon the Agent, Issuing Lender, any Revolving Credit Lender or any such party under this Agreement, any of the other Loan Documents or any of the Letter of Credit Documents, or any other acts or
omissions on the part of the Agent, Issuing Lender, any Revolving Credit Lender or any such party; or 

  

	 	(g)	Any other event or circumstance that would, in the absence of this Section 3.7, result in the release or discharge by operation of law or otherwise of Borrowers from the
performance or observance of any obligation, covenant or agreement contained in Section 3.6 hereof. 

 No setoff, counterclaim, reduction
or diminution of any obligation or any defense of any kind or nature which any Borrower has or may have against the beneficiary of any Letter of Credit shall be available hereunder to Borrowers against the Agent, Issuing Lender or any Revolving
Credit Lender. With respect to any Letter of Credit, nothing contained in this Section 3.7 shall be deemed to prevent Borrowers, after satisfaction in full of the absolute and unconditional obligations of Borrowers hereunder with respect to
such Letter of Credit, from asserting in a separate action any claim, defense, set off or other right which they (or any of them) may have against Agent, Issuing Lender or any Revolving Credit Lender in connection with such Letter of Credit.

 3.8 Risk Under Letters of Credit. 
  

	 	(a)	In the administration and handling of Letters of Credit and any security therefor, or any documents or instruments given in connection therewith, Issuing Lender shall have the sole
right to take or refrain from taking any and all actions under or upon the Letters of Credit. 

  

	 	(b)	Subject to other terms and conditions of this Agreement, Issuing Lender shall issue the Letters of Credit and shall hold the documents related thereto in its own name and shall make
all collections thereunder and 

  

 34 

 otherwise administer the Letters of Credit in accordance with Issuing Lender’s regularly
established practices and procedures and will have no further obligation with respect thereto. In the administration of Letters of Credit, Issuing Lender shall not be liable for any action taken or omitted on the advice of counsel, accountants,
appraisers or other experts selected by Issuing Lender with due care and Issuing Lender may rely upon any notice, communication, certificate or other statement from any Borrower, beneficiaries of Letters of Credit, or any other Person which Issuing
Lender believes to be authentic. Issuing Lender will, upon request, furnish the Revolving Credit Lenders with copies of Letter of Credit Documents related thereto. 
  

	 	(c)	In connection with the issuance and administration of Letters of Credit and the assignments hereunder, Issuing Lender makes no representation and shall have no responsibility with
respect to (i) the obligations of Borrowers or the validity, sufficiency or enforceability of any document or instrument given in connection therewith, or the taking of any action with respect to same, (ii) the financial condition of, any
representations made by, or any act or omission of any Borrower or any other Person, or (iii) any failure or delay in exercising any rights or powers possessed by Issuing Lender in its capacity as issuer of Letters of Credit in the absence of
its gross negligence or willful misconduct. Each of the Revolving Credit Lenders expressly acknowledges that it has made and will continue to make its own evaluations of Borrowers’ creditworthiness without reliance on any representation of
Issuing Lender or Issuing Lender’s officers, agents and employees. 

  

	 	(d)	If at any time Issuing Lender shall recover any part of any unreimbursed amount for any draw or other demand for payment under a Letter of Credit, or any interest thereon, Agent or
Issuing Lender, as the case may be, shall receive same for the pro rata benefit of the Revolving Credit Lenders in accordance with their respective Percentages and shall promptly deliver to each Revolving Credit Lender its share
thereof, less such Revolving Credit Lender’s pro rata share of the costs of such recovery, including court costs and attorney’s fees. If at any time any Revolving Credit Lender shall receive from any source whatsoever any payment on any
such unreimbursed amount or interest thereon in excess of such Revolving Credit Lender’s Percentage of such payment, such Revolving Credit Lender will promptly pay over such excess to Agent, for redistribution in accordance with this Agreement.

 3.9 Indemnification. Each Borrower hereby indemnifies and agrees to hold harmless the Revolving Credit Lenders, the
Issuing Lender and the Agent and their respective Affiliates, and the respective officers, directors, employees and agents of such Persons (each an “L/C Indemnified Person”), from and against any and all claims, damages, losses,
liabilities, costs or expenses of any kind or nature whatsoever which the Revolving Credit Lenders, the Issuing Lender or the Agent or any such Person may incur or which may be claimed against any of them 
  

 35 

 by reason of or in connection with any Letter of Credit (collectively, the “L/C Indemnified Amounts”), and none
of the Issuing Lender, any Revolving Credit Lender or the Agent or any of their respective officers, directors, employees or agents shall be liable or responsible for: 
  

	 	(a)	the use which may be made of any Letter of Credit or for any acts or omissions of any beneficiary in connection therewith; 

  

	 	(b)	the validity, sufficiency or genuineness of documents or of any endorsement thereon, even if such documents should in fact prove to be in any or all respects invalid, insufficient,
fraudulent or forged; 

  

	 	(c)	payment by the Issuing Lender to the beneficiary under any Letter of Credit against presentation of documents which do not strictly comply with the terms of any Letter of Credit
(unless such payment resulted from the gross negligence or willful misconduct of the Issuing Lender), including failure of any documents to bear any reference or adequate reference to such Letter of Credit; 

  

	 	(d)	any error, omission, interruption or delay in transmission, dispatch or delivery of any message or advice, however transmitted, in connection with any Letter of Credit; or

  

	 	(e)	any other event or circumstance whatsoever arising in connection with any Letter of Credit. 

 It is understood that in making any payment under a Letter of Credit the Issuing Lender will rely on documents presented to it under such Letter of Credit as to any and all matters set forth therein without further
investigation and regardless of any notice or information to the contrary. 
 With respect to subparagraphs (a) through (e) hereof, (i) no
Borrower shall be required to indemnify any L/C Indemnified Person for any L/C Indemnified Amounts to the extent such amounts result from the gross negligence or willful misconduct of such L/C Indemnified Person or any officer, director, employee or
agent of such L/C Indemnified Person and (ii) the Agent and the Issuing Lender shall be liable to each Borrower to the extent, but only to the extent, of any direct, as opposed to consequential or incidental, damages suffered by a Borrower
which were caused by the gross negligence or willful misconduct of the Issuing Lender or any officer, director, employee or agent of the Issuing Lender or by the Issuing Lender’s wrongful dishonor of any Letter of Credit after the presentation
to it by the beneficiary thereunder of a draft or other demand for payment and other documentation strictly complying with the terms and conditions of such Letter of Credit. 
 3.10 Right of Reimbursement. Each Revolving Credit Lender agrees to reimburse the Issuing Lender on demand, pro rata in accordance with its
respective Revolving Credit Percentage, for (i) the reasonable out-of-pocket costs and expenses of the Issuing Lender to be reimbursed by Borrowers pursuant to any Letter of Credit Agreement or any Letter of Credit, to the extent not reimbursed
by a Borrower and (ii) any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, fees, reasonable out-of-pocket expenses or disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or 
  

 36 

 asserted against Issuing Lender in any way relating to or arising out of this Agreement (including Section 3.6(c)
hereof), any Letter of Credit, any documentation or any transaction relating thereto, or any Letter of Credit Agreement, to the extent not reimbursed by a Borrower, except to the extent that such liabilities, losses, costs or expenses were incurred
by Issuing Lender as a result of Issuing Lender’s gross negligence or willful misconduct or by the Issuing Lender’s wrongful dishonor of any Letter of Credit after the presentation to it by the beneficiary thereunder of a draft or other
demand for payment and other documentation strictly complying with the terms and conditions of such Letter of Credit. 
 4. [INTENTIONALLY OMITTED].

 5. CONDITIONS. 
 The obligations of the
Lenders to make Advances or loans pursuant to this Agreement and the obligation of the Issuing Lender to issue Letters of Credit are subject to the following conditions: 
 5.1 Execution of Notes and this Agreement. Borrowers shall have executed and delivered to Agent for the account of each Lender requesting Notes, the Revolving Credit Note; Borrowers shall have executed and
delivered this Agreement; and Borrowers shall have executed and delivered the other Loan Documents to which any Borrower is required to be a party (including all schedules and other documents to be delivered pursuant hereto); and such Notes (if
any), this Agreement and the other Loan Documents shall be in full force and effect. 
 5.2 Corporate Authority. Agent shall have
received, with a counterpart thereof for each Lender: 
 A certificate of Parent’s Secretary or Assistant Secretary dated as of the
Effective Date as to: 
  

	 	(i)	corporate resolutions (or the equivalent) of each Borrower authorizing the transactions contemplated by this Agreement and the other Loan Documents approval of this Agreement and
the other Loan Documents, in each case to which such Borrower is party, and authorizing the execution and delivery of this Agreement and the other Loan Documents, and in the case of Parent, authorizing the execution and delivery of requests for
Advances and the issuance of Letters of Credit hereunder, 

  

	 	(ii)	the incumbency and signature of the officers or other authorized persons of each Borrower executing any Loan Document and in the case of Parent, the officers who are authorized to
execute any Requests for Advance, or requests for the issuance of Letters of Credit, 

  

	 	(iii)	a certificate of good standing or continued existence (or the equivalent thereof) from the state of its incorporation or formation, and from every state or other jurisdiction where
each Borrower is qualified to do business, which jurisdictions are listed on Schedule 5.2 attached hereto, and 

  

 37 

	 	(iv)	copies of each Borrower’s articles of incorporation and bylaws or other constitutional documents, as in effect on the Effective Date. 

 5.3 Notes, Agreement and other Loan Documents. (a) The Agent shall have received the following documents, each in form and substance
satisfactory to Agent and fully executed by each party thereto: 
  

	 	(i)	a Revolving Credit Note drawn to the order of each Lender that has requested the delivery of Notes, as applicable, executed and delivered by Borrowers and dated the Effective Date;
and 

  

	 	(ii)	a fully executed copy of this Agreement dated the Effective Date. 

  

	 	(b)	Certified copies of uniform commercial code requests for information, or a similar search report certified by a party acceptable to the Agent, dated a date reasonably prior to the
Effective Date, listing all effective financing statements in the jurisdiction noted on Schedule 5.3(d) which name any Borrower (under its present name or under any previous names used within five (5) years prior to the date hereof) as debtor,
together with (x) copies of such financing statements, and (y) authorized Uniform Commercial Code (Form UCC-3) Termination Statements, if any, necessary to release all Liens and other rights of any Person previously granted by any Person
(other than Liens permitted by Section 8.2 of this Agreement). 

 5.4 [Intentionally Omitted]. 
 5.5 Insurance. The Agent shall have received evidence reasonably satisfactory to it that Borrowers have obtained the insurance policies required
by Section 7.5 hereof and that such insurance policies are in full force and effect. 
 5.6 Compliance with Certain Documents and
Agreements. Each Borrower shall have performed and complied in all material respects with all agreements and conditions contained in this Agreement and the other Loan Documents, to the extent required to be performed or complied with by such
Borrower. No Person (other than Agent, Lenders and Issuing Lender) party to this Agreement or any other Loan Document shall be in material default in the performance or compliance with any of the terms or provisions of this Agreement or the other
Loan Documents or shall be in material default in the performance or compliance with any of the material terms or material provisions of, in each case to which such Person is a party. 
 5.7 Opinions of Counsel. Parent shall furnish Agent prior to the initial Advance under this Agreement, with signed copies for each Lender,
opinions of counsel to Borrowers, including opinions of local counsel to the extent deemed necessary by the Agent, in each case dated the Effective Date and covering such matters as reasonably required by and otherwise reasonably satisfactory in
form and substance to the Agent and each of the Lenders. 
  

 38 

 5.8 Payment of Fees. Borrowers shall have paid to Comerica Bank any fees due under the terms
hereof, along with any other fees, costs or expenses due and outstanding to the Agent or the Lenders as of the Effective Date (including reasonable fees, disbursements and other charges of counsel to Agent). 
 5.9 Non-GAAP Balance Sheet and Financial Statements. Parent shall have delivered to the Lenders and the Agent, in form and substance satisfactory
to Agent: (a) the Non-GAAP Balance Sheet, (b) audited financial statements of Parent and its Subsidiaries for the Fiscal Year ending October 1, 2006, and presented in accordance with GAAP, and the quarterly financial statements
prepared by Parent for October 1, 2006 and (c) quarterly projections of Parent through September 30, 2007, in form acceptable to Agent. 
 5.10 Appraisals; Audits; Due Diligence. Agent and Lenders shall have received, in each case in form and substance satisfactory to the Agent, such audits, appraisals and other reports or due diligence materials
as Agent and the Majority Lenders may reasonably request. 
 5.11 [Intentionally Omitted]. 
 5.12 Material Contracts. Agent shall have received copies of all Material Contracts described on Schedule 6.18 hereof. 
 5.13 Governmental and Other Approvals. Agent shall have received copies of all authorizations, consents, approvals, licenses, qualifications or
formal exemptions, filings, declarations and registrations with, any court, governmental agency or regulatory authority or any securities exchange or any other person or party (whether or not governmental) received by each Borrower in connection
with the transactions contemplated by the Loan Documents to occur on the Effective Date. 
 5.14 Closing Certificate. The Agent shall
have received, with a signed counterpart for each Lender, a certificate of a Responsible Officer of Parent dated the Effective Date (or, if different, the date of the initial Advance hereunder), stating that to the best of his or her respective
knowledge after due inquiry, (a) the conditions set forth in this Section 5 have been satisfied to the extent required to be satisfied by any Borrower; (b) the representations and warranties made by Borrowers in this Agreement or any
of the other Loan Documents, as applicable, are true and correct in all material respects; (c) no Default or Event of Default shall have occurred and be continuing; (d) since October 1, 2006, nothing shall have occurred which has had,
or could reasonably be expected to have, a material adverse change on the business, results of operations, conditions, property or prospects (financial or otherwise) of Borrowers; and (e) there shall have been no material adverse change to the
Non-GAAP Balance Sheet. 
 5.15 PowerDsine. The Agent shall have received, prior to the Effective Date, a brokerage or similar
statement with respect to PowerDsine’s cash and cash equivalents. 
 5.16 Continuing Conditions. The obligations of each Lender
to make Advances (including the initial Advance) under this Agreement and the obligation of the Issuing Lender to issue any Letters of Credit shall be subject to the continuing conditions that: 
  

	 	(a)	No Default or Event of Default shall exist as of the date of the Advance or the request for the Letter of Credit, as the case may be; and 

  

 39 

	 	(b)	Each of the representations and warranties contained in this Agreement and in each of the other Loan Documents shall be true and correct in all material respects as of the date of
the Advance or Letter of Credit (as the case may be) as if made on and as of such date (other than any representation or warranty that expressly speaks only as of a different date). 

 6. REPRESENTATIONS AND WARRANTIES. 
 Each Borrower
represents and warrants to the Agent, the Lenders and the Issuing Lender as follows: 
 6.1 Corporate Authority. Borrower is a
corporation (or other business entity) duly organized and existing in good standing under the laws of the state or jurisdiction of its incorporation or formation, as applicable, and, other than as set forth on Schedule 6.1 hereto, Borrower is duly
qualified and authorized to do business as a foreign corporation in each jurisdiction where the character of its assets or the nature of its activities makes such qualification and authorization necessary except where failure to be so qualified or
be in good standing could not reasonably be expected to have a Material Adverse Effect. Borrower has all requisite corporate, limited liability or partnership power and authority to own all its property (whether real, personal, tangible or
intangible or of any kind whatsoever) and to carry on its business. 
 6.2 Due Authorization. Execution, delivery and performance of
this Agreement, and the other Loan Documents, to which Borrower is party, and the issuance of the Notes by Borrower (if requested) are within such Person’s corporate, limited liability or partnership power, have been duly authorized, are not in
contravention of any law applicable to Borrower or the terms of Borrower’s organizational documents and, except as have been previously obtained or as referred to in Section 6.10, below, do not require the consent or approval of any
governmental body, agency or authority or any other third party except to the extent that such consent or approval is not material to the transactions contemplated by the Loan Documents. 
 6.3 Good Title; Leases; Assets; No Liens. (a) Borrower, to the extent applicable, has good and valid title (or, in the case of real property,
good and marketable title) to all assets owned by it, subject only to the Liens permitted under section 8.2 hereof, and Borrower has a valid leasehold or interest as a lessee or a licensee in all of its leased real property; 
  

	 	(b)	Schedule 6.3(b) hereof identifies all of the real property owned or leased, as lessee thereunder, by the Borrower on the Effective Date, including all warehouse or bailee locations;

  

	 	(c)	The Borrower will collectively own or collectively have a valid leasehold interest in all assets that were owned or leased (as lessee) by the Borrower immediately prior to the
Effective Date to the extent that such assets are necessary for the continued operation of the Borrower’ businesses in substantially the manner as such businesses were operated immediately prior to the Effective Date; 

 

 40 

	 	(d)	Borrower owns or has a valid leasehold interest in all real property necessary for its continued operations and, to the best knowledge of Borrower, no material condemnation, eminent
domain or expropriation action has been commenced or threatened against any such owned or leased real property; and 

  

	 	(e)	There are no Liens on and no financing statements on file with respect to any of the assets owned by the Borrower, except for the Liens permitted pursuant to Section 8.2 of
this Agreement. 

 6.4 Taxes. Except as set forth on Schedule 6.4 hereof, Borrower has filed on or before their
respective due dates or within the applicable grace periods, all United States federal, state, local and other tax returns which are required to be filed or has obtained extensions for filing such tax returns and is not delinquent in filing such
returns in accordance with such extensions and has paid all material taxes which have become due pursuant to those returns or pursuant to any assessments received by any Borrower, as the case may be, to the extent such taxes have become due, except
to the extent such taxes are being contested in good faith by appropriate proceedings diligently conducted and with respect to which adequate estimated provision has been made on the books of Borrower as may be required by GAAP. 
 6.5 No Defaults. Borrower is not in default under or with respect to any agreement, instrument or undertaking to which is a party or by which it
or any of its property is bound which would cause or would reasonably be expected to cause a Material Adverse Effect. 
 6.6
Enforceability of Agreement and Loan Documents. This Agreement and each of the other Loan Documents to which Borrower is a party (including without limitation, each Request for Advance), have each been duly executed and delivered by its duly
authorized officers and constitute the valid and binding obligations of Borrower, enforceable against Borrower in accordance with their respective terms, except as enforcement thereof may be limited by applicable bankruptcy, reorganization,
insolvency, fraudulent conveyance, moratorium or similar laws affecting the enforcement of creditor’s rights, generally and by general principles of equity (regardless of whether enforcement is considered in a proceeding in law or equity).

 6.7 Compliance with Laws. (a) Except as disclosed on Schedule 6.7, Borrower has complied with all applicable federal, state
and local laws, ordinances, codes, rules, regulations and guidelines (including consent decrees and administrative orders) including but not limited to Hazardous Material Laws, and is in compliance with any Requirement of Law, except to the extent
that failure to comply therewith could not reasonably be expected to have a Material Adverse Effect; and (b) neither the extension of credit made pursuant to this Agreement or the use of the proceeds thereof by the Borrower will violate the
Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto, or The
United and Strengthening America by providing 
  

 41 

 appropriate Tools Required to Intercept and Obstruct Terrorism (“USA Patriot Act”) Act of 2001, Public Law
10756, October 26, 2001 or Executive Order 13224 of September 23, 2001 issued by the President of the United States (66 Fed. Reg. 49049 (2001)). 
 6.8 Non-contravention. The execution, delivery and performance of this Agreement and the other Loan Documents (including each Request for Advance) to which Borrower is a party are not in contravention of the
terms of any indenture, agreement or undertaking to which Borrower is a party or by which it or its properties are bound where such violation could reasonably be expected to have a Material Adverse Effect. 
 6.9 Litigation. Except as set forth on Schedule 6.9 hereof, there is no suit, action, proceeding, including, without limitation, any bankruptcy
proceeding or governmental investigation pending against or to the knowledge of Borrower, threatened against Borrower (other than any suit, action or proceeding in which Borrower is the plaintiff and in which no counterclaim or cross-claim against
Borrower has been filed), or any judgment, decree, injunction, rule, or order of any court, government, department, commission, agency, instrumentality or arbitrator outstanding against Borrower, nor is Borrower in violation of any applicable law,
regulation, ordinance, order, injunction, decree or requirement of any governmental body or court which could in any of the foregoing events reasonably be expected to have a Material Adverse Effect. 
 6.10 Consents, Approvals and Filings, Etc. Except as set forth on Schedule 6.10 hereof, no material authorization, consent, approval, license,
qualification or formal exemption from, nor any filing, declaration or registration with, any court, governmental agency or regulatory authority or any securities exchange or any other Person (whether or not governmental) is required in connection
with the execution, delivery and performance: (a) by Borrower of this Agreement and any of the other Loan Documents to which Borrower is a party or (b) by the Borrower of the grant of Liens granted, conveyed or otherwise established (or to
be granted, conveyed or otherwise established) by or under this Agreement or the other Loan Documents, as applicable, except in each case for such matters which have been previously obtained. All such material authorizations, consents, approvals,
licenses, qualifications, exemptions, filings, declarations and registrations which have previously been obtained or made, as the case may be, are in full force and effect and, to the best knowledge of Borrower, are not the subject of any attack or
threatened attack (in each case in any material respect) by appeal or direct proceeding or otherwise. 
 6.11 Agreements Affecting
Financial Condition. Borrower is not party to any agreement or instrument or subject to any charter or other corporate restriction which could reasonably be expected to have a Material Adverse Effect. 
 6.12 No Investment Company or Margin Stock. Borrower is not an “investment company” within the meaning of the Investment Company Act of
1940, as amended. Borrower is not engaged principally, or as one of its important activities, directly or indirectly, in the business of extending credit for the purpose of purchasing or carrying margin stock. None of the proceeds of any of the
Advances will be used by Borrower to purchase or carry margin stock. Terms for which meanings are provided in Regulation U of the Board of Governors of the Federal Reserve System or any regulations substituted therefore, as from time to time in
effect, are used in this paragraph with such meanings. 
  

 42 

 6.13 ERISA. Borrower does not maintain or contribute to any Pension Plan subject to Title IV of
ERISA, except as set forth on Schedule 6.13 hereto or otherwise disclosed to the Agent in writing. There is no accumulated funding deficiency within the meaning of Section 412 of the Internal Revenue Code or Section 302 of ERISA, or any
outstanding liability with respect to any Pension Plans owed to the PBGC other than future premiums due and owing pursuant to Section 4007 of ERISA, and no “reportable event” as defined in Section 4043(c) of ERISA has occurred
with respect to any Pension Plan other than an event for which the notice requirement has been waived by the PBGC. None of the Borrower has engaged in a prohibited transaction with respect to any Pension Plan, other than a prohibited transaction for
which an exemption is available and has been obtained, which could subject such Borrower to a material tax or penalty imposed by Section 4975 of the Internal Revenue Code or Section 502(i) of ERISA. Each Pension Plan is being maintained
and funded in accordance with its terms and is in material compliance with the requirements of the Internal Revenue Code and ERISA. Borrower has not had a complete or partial withdrawal from any Multiemployer Plan that has resulted or could
reasonably be expected to have resulted in any Withdrawal Liability and, except as notified to Agent in writing following the Effective Date, no such Multiemployer Plan is in reorganization (within the meaning of Section 4241 of ERISA) or
insolvent (within the meaning of Section 4245 of ERISA). 
 6.14 Conditions Affecting Business or Properties. As of the Effective
Date and the date of each request for an Advance hereunder, neither the respective businesses nor the properties of Borrower is affected by any fire, explosion, accident, strike, lockout or other dispute, drought, storm, hail, earthquake, embargo,
Act of God, or other casualty (except to the extent such event is covered by insurance sufficient to ensure that upon application of the proceeds thereof, no Material Adverse Effect could reasonably be expected to occur) which could reasonably be
expected to have a Material Adverse Effect. 
 6.15 Environmental and Safety Matters. Except as set forth in Schedules 6.9, 6.10 and
6.15: 
  

	 	(a)	all facilities and property owned or leased by the Borrower are in compliance with all Hazardous Material Laws; 

  

	 	(b)	to the best knowledge of Borrower, there have been no unresolved and outstanding past, and there are no pending or threatened: 

  

	 	(i)	claims, complaints, notices or requests for information received by Borrower with respect to any alleged violation of any Hazardous Material Law, or 

  

	 	(ii)	written complaints, notices or inquiries to Borrower regarding potential liability of any Borrower under any Hazardous Material Law; and 

  

 43 

	 	(c)	to the best knowledge of Borrower, no conditions exist at, on or under any property now or previously owned or leased by Borrower which, with the passage of time, or the giving of
notice or both, are reasonably likely to give rise to liability under any Hazardous Material Law or create a significant adverse effect on the value of the property. 

 6.16 Subsidiaries. Except as disclosed on Schedule 6.16 hereto as of the Effective Date, and thereafter, except as disclosed to the Agent in
writing from time to time, Borrower does not have any other Subsidiaries. 
 6.17 [Intentionally Omitted]. 
 6.18 Material Contracts. Schedule 6.18 attached hereto is an accurate and complete list of all Material Contracts in effect on or as of the
Effective Date to which Borrower is a party or is bound. 
 6.19 Franchises, Patents, Copyrights, Tradenames, etc. The Borrower
possess all franchises, patents, copyrights, trademarks, trade names, licenses and permits, and rights in respect of the foregoing, adequate for the conduct of their business substantially as now conducted without known conflict with any rights of
others. Schedule 6.18 contains a true and accurate list of all trade names and any and all other names used by Borrower during the five-year period ending as of the Effective Date. 
 6.20 [Intentionally Omitted]. 
 6.21
Accuracy of Information. (a) The audited financial statements for the Fiscal Year ended October 1, 2006, furnished to Agent and the Lenders prior to the Effective Date fairly present in all material respects the financial condition
of the Borrowers and their Subsidiaries and the results of their operations for the periods covered thereby, and have been prepared in accordance with GAAP. The projections, the Non-GAAP Balance Sheet and the other non-GAAP financial information
delivered to the Agent prior to the Effective Date are based upon good faith estimates and assumptions believed by management of the Borrower to be accurate and reasonable at the time made, it being recognized by the Lenders that such financial
information as it relates to future events is not to be viewed as fact and that actual results during the period or periods covered by such financial information may differ from the projected results set forth therein. 
  

	 	(b)	From October 1, 2006 through the Effective Date, there has been no material adverse change in the business, operations, condition, property or prospects (financial or
otherwise) of the Borrower, taken as a whole. 

  

	 	(c)	To the best knowledge of the Borrower, as of the Effective Date, (i) the Borrower does not have any material contingent obligations (including any liability for taxes) not
disclosed by or reserved against in the opening balance sheet to be delivered hereunder and (ii) there are no unrealized or anticipated losses from any present commitment of the Borrower which contingent obligations and losses in the aggregate
could reasonably be expected to have a Material Adverse Effect. 

  

 44 

 6.22 Solvency. After giving effect to the consummation of the transactions contemplated by this
Agreement and other Loan Documents, Borrower will be solvent, able to pay its indebtedness as it matures and will have capital sufficient to carry on its businesses and all business in which it is about to engage. This Agreement is being executed
and delivered by the Borrower to Agent and the Lenders in good faith and in exchange for fair, equivalent consideration. The Borrower does not intend to nor does management of the Borrower believe the Borrower will incur debts beyond their ability
to pay as they mature. The Borrower does not contemplate filing a petition in bankruptcy or for an arrangement or reorganization under the Bankruptcy Code or any similar law of any jurisdiction now or hereafter in effect relating to Borrower, nor
does Borrower have any knowledge of any threatened bankruptcy or insolvency proceedings against Borrower. 
 6.23 Employee Matters.
There are no strikes, slowdowns, work stoppages, unfair labor practice complaints, grievances, arbitration proceedings or controversies pending or, to the best knowledge of the Borrower, threatened against Borrower by any employees of Borrower,
other than non-material employee grievances or controversies arising in the ordinary course of business. Set forth on Schedule 6.22 are all union contracts or agreements to which Borrower is party as of the Effective Date and the related expiration
dates of each such contract. 
 6.24 No Misrepresentation. Neither this Agreement nor any other Loan Document, certificate,
information or report furnished or to be furnished by or on behalf of Borrower to Agent or any Lender in connection with any of the transactions contemplated hereby or thereby, contains a misstatement of material fact, or omits to state a material
fact required to be stated in order to make the statements contained herein or therein, taken as a whole, not misleading in the light of the circumstances under which such statements were made. There is no fact, other than information known to the
public generally, known to Borrower after diligent inquiry, that could reasonably be expect to have a Material Adverse Effect that has not expressly been disclosed to Agent in writing. 
 7. AFFIRMATIVE COVENANTS. 
 Each Borrower (except as otherwise indicated) covenants and agrees, so
long as any Lender has any commitment to extend credit hereunder, or any of the Indebtedness remains outstanding and unpaid, that it will, and, as applicable, it will cause each of its Subsidiaries to: 
 7.1 Financial Statements. Parent shall furnish to the Agent, in form and detail satisfactory to Agent, with sufficient copies for each Lender, the
following documents: 
  

	 	(a)	as soon as available, but in any event within ninety (90) days after the end of each Fiscal Year, a copy of the Form 10K filed by Parent with the SEC; 

 

	 	(b)	as soon as available, but in any event within fifty (50) days after the end of the first, second and third fiscal quarter of Parent, a copy of the Form 10Q filed by Parent with
the SEC; and 

 all such financial statements to be complete and correct in all material respects and to be prepared in reasonable detail and
in accordance with SEC filing requirements. 
  

 45 

 7.2 Certificates; Other Information. Parent shall furnish to the Agent, in form and detail
acceptable to Agent, with sufficient copies for each Lender, the following documents: 
  

	 	(a)	Concurrently with the delivery of the financial statements described in Sections 7.1(a) and 7.1(b) of this Agreement for each fiscal year-end and fiscal quarter-end, respectively, a
Covenant Compliance Report duly executed by a Responsible Officer of Parent; 

  

	 	(b)	[Intentionally Omitted]; 

  

	 	(c)	Promptly upon receipt thereof, copies of all significant reports submitted by Parent’s firm(s) of certified public accountants in connection with each annual, interim or
special audit or review of any type of the financial statements or related internal control systems of any Borrower made by such accountants, including any comment letter submitted by such accountants to management in connection with their services;

  

	 	(d)	Any financial reports, statements, press releases, other material information or written notices delivered to the holders of the Subordinated Debt pursuant to any applicable
Subordinated Debt Documents (to the extent not otherwise required hereunder), as and when delivered to such Persons; 

  

	 	(e)	Within ninety (90) days after the end of each Fiscal Year, projections for Parent and its Subsidiaries for the next succeeding Fiscal Year, on a quarterly basis and for the
following Fiscal Year on an annual basis, including a balance sheet, as at the end of each relevant period and for the period commencing at the beginning of the Fiscal Year and ending on the last day of such relevant period, such projections
certified by a Responsible Officer of Parent as being based on reasonable estimates and assumptions taking into account all facts and information known (or reasonably available to Parent) by a Responsible Officer of Parent; 

 

	 	(f)	Any additional information as required by any Loan Document, and such additional schedules, certificates and reports, all to such extent as Agent may reasonably request from time to
time, any such schedule, certificate or report to be certified as true and correct in all material respects by a Responsible Officer of Parent and shall be in such form and detail as Agent may reasonably specify; and 

  

	 	(g)	Such additional financial and/or other information as Agent or any Lender may from time to time reasonably request, promptly following such request. 

 7.3 Payment of Obligations. Pay, discharge or otherwise satisfy, at or before maturity or before they become delinquent, as the case may be, all
of its material obligations of whatever nature, including without limitation all assessments, governmental charges, claims for labor, supplies, rent or other obligations, except where the amount or validity thereof is currently being appropriately
contested in good faith and reserves in conformity with GAAP with respect thereto have been provided on the books of the Borrower. 
  

 46 

 7.4 Conduct of Business and Maintenance of Existence; Compliance with Laws. 
  

	 	(a)	Continue to engage in their respective business and operations substantially as conducted immediately prior to the Effective Date; 

  

	 	(b)	Preserve, renew and keep in full force and effect its existence and maintain its qualifications to do business in each jurisdiction where such qualifications are necessary for its
operations, except as otherwise permitted pursuant to Section 8.4; 

  

	 	(c)	Take all action it deems necessary in its reasonable business judgment to maintain all rights, privileges and franchises necessary for the normal conduct of its business except
where the failure to so maintain such rights, privileges or franchises could not, either singly or in the aggregate, reasonably be expected to have a Material Adverse Effect; 

  

	 	(d)	Comply with all Contractual Obligations and Requirements of Law, except to the extent that failure to comply therewith could not, either singly or in the aggregate, reasonably be
expected to have a Material Adverse Effect; and 

  

	 	(e)	(i) Continue to be a Person whose property or interests in property is not blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23,
2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit or Support Terrorism (66 Fed. Reg. 49079 (2001)) (the “Order”), (ii) not engage in the transactions prohibited by Section 2 of
that Order or become associated with Persons such that a violation of Section 2 of the Order would arise, and (iii) not become a Person on the list of Specially Designated National and Blocked Persons, or (iv) otherwise not become
subject to the limitation of any OFAC regulation or executive order. 

 7.5 Maintenance of Property; Insurance.
(a) Keep all material property it deems, in its reasonable business judgment, useful and necessary in its business in working order (ordinary wear and tear excepted); (b) maintain insurance coverage with financially sound and reputable
insurance companies on physical assets and against other business risks in such amounts and of such types as are customarily carried by companies similar in size and nature (including without limitation casualty and public liability and property
damage insurance), and in the event of acquisition of additional property, real or personal, or of the incurrence of additional risks of any nature, increase such insurance coverage in such manner and to such extent as prudent business judgment and
present practice or any applicable Requirements of Law would dictate; (c) such insurance policies shall provide that the loss payable thereunder shall be payable to Borrower, and to the Agent (as mortgagee, or, in the case of personal property
interests, lender loss payee) as their respective interests may appear; (d) in the case of all public liability insurance policies, 
  

 47 

 such policies shall list the Agent as an additional insured, as Agent may reasonably request; and (e) if requested
by Agent, certificates evidencing such policies, including all endorsements thereto, to be deposited with Agent, such certificates being in form and substance reasonably acceptable to Agent. 
 7.6 Inspection of Property; Books and Records, Discussions. Permit Agent and each Lender, through their authorized attorneys, accountants and
representatives (a) at all reasonable times during normal business hours, upon the request of Agent or such Lender, to examine Borrower’s books, accounts, records, ledgers and assets and properties; (b) from time to time, during
normal business hours, upon the request of the Agent, to conduct full or partial collateral audits of the Accounts and Inventory of the Borrower and appraisals of all or a portion of the fixed assets (including real property) of the Borrower, such
audits and appraisals to be completed by an appraiser as may be selected by Agent and consented to by Borrower (such consent not to be unreasonably withheld), with all reasonable costs and expenses of such audits to be reimbursed by the Borrower,
provided that so long as no Event of Default or Default exists, Borrower shall not be required to reimburse Agent for such audits or appraisals more frequently than once each Fiscal Year; (c) during normal business hours and at their own risk,
to enter onto the real property owned or leased by Borrower to conduct inspections, investigations or other reviews of such real property; and (d) at reasonable times during normal business hours and at reasonable intervals, to visit all of the
Borrower’ offices, discuss Borrower’s respective financial matters with their respective officers, as applicable, and, by this provision, Borrower authorizes, and will cause each of their respective Subsidiaries to authorize, its
independent certified or chartered public accountants to discuss the finances and affairs of Borrower and examine any of Borrower’s books, reports or records held by such accountants. 
 7.7 Notices. Promptly give written notice to the Agent of: 
  

	 	(a)	the occurrence of any Default or Event of Default of which Borrower has knowledge; 

  

	 	(b)	any (i) litigation or proceeding existing at any time between Borrower and any Governmental Authority or other third party, or any investigation of Borrower conducted by any
Governmental Authority, which in any case if adversely determined would have a Material Adverse Effect or (ii) any material adverse change in the financial condition of Borrower since the date of the last audited financial statements delivered
pursuant to Section 7.1(a) hereof; 

  

	 	(c)	the occurrence of any event which Borrower believes could reasonably be expected to have a Material Adverse Effect, promptly after concluding that such event could reasonably be
expected to have such a Material Adverse Effect; 

  

	 	(d)	promptly after becoming aware thereof, the taking by the Internal Revenue Service or any foreign taxing jurisdiction of a written tax position (or any such tax position taken by
Borrower in a filing with the Internal Revenue Service or any foreign taxing jurisdiction) which could reasonably be expected to have a Material Adverse Effect, setting forth the details of such position and the financial impact thereof;

  

 48 

	 	(e)	(i) all jurisdictions in which Borrower proposes to become qualified after the Effective Date to transact business, (ii) the acquisition or creation of any new Subsidiaries,
(iii) any material change after the Effective Date in the authorized and issued Equity Interests of Borrower or any other material amendment to Borrower’s charter, by-laws or other organizational documents, such notice, in each case, to
identify the applicable jurisdictions, capital structures or amendments as applicable, provided that such notice shall be given not less than ten (10) Business Days prior to the proposed effectiveness of such changes, acquisition or creation,
as the case may be (or such shorter period to which Agent may consent); 

  

	 	(f)	not less than fifteen (15) Business Days (or such other shorter period to which Agent may agree) prior to the proposed effective date thereof, any proposed material amendments,
restatements or other modifications to any Subordinated Debt Documents; and 

  

	 	(g)	any default or event of default by any Person under any Subordinated Debt Document, concurrently with delivery or promptly after receipt (as the case may be) of any notice of
default or event of default under the applicable document, as the case may be. 

 Each notice pursuant to this Section shall be accompanied by
a statement of a Responsible Officer of Parent setting forth details of the occurrence referred to therein and, in the case of notices referred to in clauses (a), (b), (c), (d) and (g) hereof stating what action Borrower has taken or
proposes to take with respect thereto. 
 7.8 Hazardous Material Laws. 
  

	 	(a)	Use and operate all of its facilities and properties in material compliance with all applicable Hazardous Material Laws, keep all material required permits, approvals, certificates,
licenses and other authorizations required under such Hazardous Material Laws in effect and remain in compliance therewith, and handle all Hazardous Materials in material compliance with all applicable Hazardous Material Laws;

  

	 	(b)	(i) Promptly notify Agent and provide copies upon receipt of all written claims, complaints, notices or inquiries received by Borrower relating to its facilities and properties or
compliance with Hazardous Material Laws which, if adversely determined, could reasonably be expected to have a Material Adverse Effect and (ii) promptly cure and have dismissed with prejudice to the reasonable satisfaction of Agent and the
Majority Lenders any material actions and proceedings relating to compliance with Hazardous Material Laws to which Borrower is named a party, other than such actions or proceedings being contested in good faith and with the establishment of
reasonable reserves; 

  

 49 

	 	(c)	To the extent necessary to comply in all material respects with Hazardous Material Laws, remediate or monitor contamination arising from a release or disposal of Hazardous Material,
which solely, or together with other releases or disposals of Hazardous Materials could reasonably be expected to have a Material Adverse Effect; 

  

	 	(d)	Provide such information and certifications which Agent or any Lender may reasonably request from time to time to evidence compliance with this Section 7.8.

 7.9 Financial Covenants. 
  

	 	(a)	Maximum Funded Debt to EBITDA. Parent, on a consolidated basis, shall at all times maintain a ratio of Funded Debt to EBITDA, measured quarterly, not to exceed 2.00 to 1.00.

  

	 	(b)	Minimum EBITDA. Parent, on a consolidated basis, shall at all times maintain an EBITDA of at least Twenty Million Dollars ($20,000,000), measured quarterly on a rolling four
(4) quarter basis. 

 7.10 Governmental and Other Approvals. Apply for, obtain and/or maintain in effect, as
applicable, all authorizations, consents, approvals, licenses, qualifications, exemptions, filings, declarations and registrations (whether with any court, governmental agency, regulatory authority, securities exchange or otherwise) which are
necessary or reasonably requested by Agent in connection with the execution, delivery and performance by Borrower of, as applicable, this Agreement, the other Loan Documents, the Subordinated Debt Documents, or any other documents or instruments to
be executed and/or delivered by Borrower, as applicable in connection therewith or herewith, except where the failure to so apply for, obtain or maintain could not reasonably be expected to have a Material Adverse Effect. 
 7.11 Compliance with ERISA; ERISA Notices. (a) Comply in all material respects with all material requirements imposed by ERISA and the
Internal Revenue Code, including, but not limited to, the minimum funding requirements for any Pension Plan, except to the extent that any noncompliance could not reasonably be expected to have a Material Adverse Effect. 
  

	 	(b)	Promptly notify Agent upon the occurrence of any of the following events in writing: (i) the termination, other than a standard termination, as defined in ERISA, of any Pension
Plan subject to Subtitle C of Title IV of ERISA by Borrower; (ii) the appointment of a trustee by a United States District Court to administer any Pension Plan subject to Title IV of ERISA; (iii) the commencement by the PBGC, of any
proceeding to terminate any Pension Plan subject to Title IV of ERISA; (iv) the failure of Borrower to make any payment in respect of any Pension Plan required under Section 412 of the Internal Revenue Code or Section 302 of ERISA;
(v) the withdrawal of Borrower from any Multiemployer Plan if Borrower 

  

 50 

 reasonably believes that such withdrawal would give rise to the imposition of Withdrawal Liability with
respect thereto; or (vi) the occurrence of (x) a “reportable event” which is required to be reported by Borrower under Section 4043 of ERISA other than any event for which the reporting requirement has been waived by the
PBGC or (y) a “prohibited transaction” as defined in Section 406 of ERISA or Section 4975 of the Internal Revenue Code other than a transaction for which a statutory exemption is available or an administrative exemption has
been obtained. 
 7.12 [Intentionally Omitted]. 
 7.13 Accounts. Parent shall maintain its primary deposit and operating accounts with Comerica Bank. 
 7.14 Use of Proceeds. Use all Advances of the Revolving Credit as set forth in Section 2.12 hereof. Borrower shall not use any portion of the proceeds of any such advances for the purpose of purchasing or carrying any
“margin stock” (as defined in Regulation U of the Board of Governors of the Federal Reserve System) in any manner which violates the provisions of Regulation T, U or X of said Board of Governors or for any other purpose in violation of any
applicable statute or regulation. 
 7.15 PowerDsine. Parent agrees that, within ten (10) Business Days following consummation of
the PowerDsine Acquisition, PowerDsine shall be added as a “Borrower” to this Agreement, and that the all references to “Borrowers” throughout the Loan Documents shall include PowerDsine. Borrowers shall cause PowerDsine to
execute and deliver to Agent within a reasonable time following Agent’s request, and at the expense of the Borrowers, such documents or instruments as Agent may reasonably require to effectuate more fully the purposes of this Section.

 7.16 Further Assurances. (a) Take such actions as the Agent or Majority Lenders may from time to time reasonably request; and

  

	 	(b)	Execute and deliver or cause to be executed and delivered to Agent within a reasonable time following Agent’s request, and at the expense of the Borrower, such other documents
or instruments as Agent may reasonably require to effectuate more fully the purposes of this Agreement or the other Loan Documents. 

 8.
NEGATIVE COVENANTS. 
 Each Borrower (except as otherwise indicated) covenants and agrees that, so long as any Lender has any commitment
to extend credit hereunder, or any of the Indebtedness remains outstanding and unpaid, it will not, and, as applicable, it will not permit any of its Subsidiaries to: 
 8.1 Limitation on Debt. Create, incur, assume or suffer to exist any Debt, except: 
  

	 	(a)	Indebtedness of Borrower to Agent and the Lenders under this Agreement and/or the other Loan Documents; 

  

 51 

	 	(b)	any Debt existing on the Effective Date and set forth in Schedule 8.1 attached hereto and any renewals or refinancing of such Debt (provided that (i) the aggregate principal
amount of such renewed or refinanced Debt shall not exceed the aggregate principal amount of the original Debt outstanding on the Effective Date (less any principal payments and the amount of any commitment reductions made thereon on or prior to
such renewal or refinancing), (ii) the renewal or refinancing of such Debt shall be on substantially the same or better terms as in effect with respect to such Debt on the Effective Date, and shall otherwise be in compliance with this
Agreement, and (iii) at the time of such renewal or refinancing no Default or Event of Default has occurred and is continuing or would result from the renewal or refinancing of such Debt; 

  

	 	(c)	any Debt of Borrower or any Subsidiary incurred to finance the acquisition of fixed or capital assets, whether pursuant to a loan or a Capitalized Lease provided that both at the
time of and immediately after giving effect to the incurrence thereof (i) no Default or Event of Default shall have occurred and be continuing, and (ii) the aggregate amount of all such Debt at any one time outstanding (including, without
limitation, any Debt of the type described in this clause (c) which is set forth on Schedule 8.1 hereof) shall not exceed Five Million Dollars ($5,000,000) in any fiscal year of Borrower during the term hereof, and any renewals or refinancings
of such Debt on terms substantially the same or better than those in effect at the time of the original incurrence of such Debt; 

  

	 	(d)	Subordinated Debt; 

  

	 	(e)	Debt under any Hedging Transactions, provided that such transaction is entered into for risk management purposes and not for speculative purposes; 

  

	 	(f)	Debt arising from judgments or decrees not deemed to be a Default or Event of Default under subsection (g) of Section 9.1; 

  

	 	(g)	Debt owing to a Person that is a Subsidiary, but only to the extent permitted under Section 8.7 hereof; and 

  

	 	(h)	additional unsecured Debt not otherwise described above, provided that both at the time of and immediately after giving effect to the incurrence thereof (i) no Default or Event
of Default shall have occurred and be continuing or result therefrom and (ii) the aggregate amount of all such Debt shall not exceed Five Million Dollars ($5,000,000) at any one time outstanding. 

  

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 8.2 Limitation on Liens. Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, except for: 
  

	 	(a)	Permitted Liens; 

  

	 	(b)	Liens securing Debt permitted by Section 8.1(c), provided that (i) such Liens are created upon fixed or capital assets acquired by Borrower after the date of this
Agreement (including without limitation by virtue of a loan or a Capitalized Lease), (ii) any such Lien is created solely for the purpose of securing indebtedness representing or incurred to finance the cost of the acquisition of the item of
property subject thereto, (iii) the principal amount of the Debt secured by any such Lien shall at no time exceed 100% of the sum of the purchase price or cost of the applicable property, equipment or improvements and the related costs and
charges imposed by the vendors thereof and (iv) the Lien does not cover any property other than the fixed or capital asset acquired; provided, however, that no such Lien shall be created over any owned real property of Borrower; and

  

	 	(c)	other Liens, existing on the Effective Date, set forth on Schedule 8.2 and renewals, refinancings and extensions thereof on substantially the same or better terms as in effect on
the Effective Date and otherwise in compliance with this Agreement. 

 Regardless of the provisions of this Section 8.2, no Lien over any
real estate owned or leased by of Borrower or any Subsidiary of Borrower shall be permitted under the terms of this Agreement. 
 8.3
Acquisitions. Except for Permitted Acquisitions and acquisitions permitted under Sections 8.5 or 8.7, if any, purchase or otherwise acquire or become obligated for the purchase of all or substantially all or any material portion of the assets
or business interests or a division or other business unit of any Person, or any Equity Interest of any Person, or any business or going concern. 
 8.4 Limitation on Mergers, Dissolution or Sale of Assets. Enter into any merger or consolidation or convey, sell, lease, assign, transfer or otherwise dispose of any of its property, business or assets (including, without limitation,
Equity Interests, receivables and leasehold interests), whether now owned or hereafter acquired or liquidate, wind up or dissolve, except: 
  

	 	(a)	Inventory leased or sold in the ordinary course of business; 

  

	 	(b)	obsolete, damaged, uneconomic or worn out machinery, parts, property or equipment, or property or equipment no longer used or useful in the conduct of Borrower’s business;

  

	 	(c)	Permitted Acquisitions; 

  

	 	(d)	mergers or consolidations of any Subsidiary of Borrower with or into Borrower or any Subsidiary so long as the Borrower or such Subsidiary shall be the continuing or surviving
entity; provided that at the time of 

  

 53 

 each such merger or consolidation, both before and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing or result from such merger or consolidation; 
  

	 	(e)	any Subsidiary of Borrower may liquidate or dissolve into Borrower or a Subsidiary if Borrower determines in good faith that such liquidation or dissolution is in the best interests
of Borrower, so long as no Default or Event of Default has occurred and is continuing or would result therefrom; 

  

	 	(f)	sales or transfers, including without limitation upon voluntary liquidation from a Subsidiary to Borrower; 

  

	 	(g)	(i) Asset Sales (exclusive of asset sales permitted pursuant to all other subsections of this Section 8.4) in which the sales price is at least equal to the fair market value
of the assets sold and the consideration received is cash or cash equivalents or Debt of Borrower being assumed by the purchaser, provided that the aggregate amount of such Asset Sales does not exceed Five Million Dollars ($5,000,000) in any Fiscal
Year and no Default or Event of Default has occurred and is continuing at the time of each such sale (both before and after giving effect to such Asset Sale); (ii) the sale by Borrower or Borrower’s Subsidiaries’ of Borrower’s or
such Subsidiaries’ real estate located in Santa Ana, California, Broomfield, Colorado, Montgomeryville, Pennsylvania, and Ennis, Ireland (collectively, the “Closed Facilities”); (iii) the sale or other restructuring of the
businesses conducted at the Closed Facilities, including but not limited to the closing of such Closed Facilities, redistribution of the work performed at such Closed Facilities, and the sale of equipment previously located at such Closed
Facilities; and (iv) other Asset Sales approved by the Majority Lenders in their sole discretion; 

  

	 	(h)	the sale or disposition of Permitted Investments and other cash equivalents in the ordinary course of business; and 

  

	 	(i)	dispositions of owned or leased vehicles in the ordinary course of business. 

 8.5 Restricted Payments. Declare or make any distributions, dividend, payment or other distribution of assets, properties, cash, rights, obligations or securities (collectively, “Distributions”) on
account of any of its Equity Interests, as applicable, or purchase, redeem or otherwise acquire for value any of its Equity Interests, as applicable, or any warrants, rights or options to acquire any of its Equity Interests, now or hereafter
outstanding (collectively, “Purchases”), except that Borrower may declare and make Distributions payable in the Equity Interests of Borrower, provided that (i) the issuance of such Equity Interests does not otherwise violate the terms
of this Agreement and no Default or Event of Default has occurred and is continuing at the time of making such Distribution or would result from the making of such Distribution, and (ii) the cash value of such Distributions do not exceed Five
Million Dollars ($5,000,000) in the aggregate during the term of this agreement. 
  

 54 

 8.6 Limitation on Capital Expenditures. Make or commit to make (by way of the acquisition of
securities of a Person or otherwise) any expenditure in respect of the purchase or other acquisition of fixed or capital assets (excluding any such asset acquired in connection with normal replacement and maintenance programs properly charged to
current operations) except for Capital Expenditures, the aggregate amount of which in any Fiscal Year shall not exceed Thirty Million Dollars ($30,000,000). 
 8.7 Limitation on Investments, Loans and Advances. Make or allow to remain outstanding any Investment (whether such investment shall be of the character of investment in shares of stock, evidences of
indebtedness or other securities or otherwise) in, or any loans or advances to, any Person other than: 
  

	 	(a)	Permitted Investments; 

  

	 	(b)	Investments existing on the Effective Date and listed on Schedule 8.7 hereof; 

  

	 	(c)	sales on open account in the ordinary course of business; 

  

	 	(d)	intercompany loans or intercompany Investments made by Parent to or in another Borrower; provided that, in the case of any intercompany loans or intercompany Investments made by
Parent in any non-Borrower Subsidiary, the aggregate amount outstanding in respect thereof shall not exceed Five Million Dollars ($5,000,000) cash in the aggregate at any time; and provided, further, that in each case, no Default or Event of Default
shall have occurred and be continuing at the time of making such intercompany loan or intercompany Investment or result from such intercompany loan or intercompany Investment being made; 

  

	 	(e)	Investments in respect of Hedging Transactions provided that such transaction is entered into for risk management purposes and not for speculative purposes;

  

	 	(f)	loans and advances to employees, officers and directors of Borrower for moving, entertainment, travel and other similar expenses in the ordinary course of business in the aggregate
at any time outstanding; 

  

	 	(g)	Permitted Acquisitions and Investments in any Person acquired pursuant to a Permitted Acquisition; 

  

	 	(h)	Investments constituting deposits made in connection with the purchase of goods or services in the ordinary course of business in an aggregate amount for such deposits not to exceed
One Million Dollars ($1,000,000) at any one time outstanding; 

  

	 	(i)	other Investments not described above provided that both at the time of and immediately after giving effect to any such Investment (i) no Default or Event of Default shall have
occurred and be continuing or shall result 

  

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 from the making of such Investment and (ii) the aggregate amount of all such other Investments
shall not exceed One Million Dollars ($1,000,000) at any time outstanding. 
 In valuing any Investments for the purpose of applying the limitations set
forth in this Section 8.7 (except as otherwise expressly provided herein), such Investment shall be taken at the original cost thereof, without allowance for any subsequent write-offs or appreciation or depreciation, but less any amount repaid
or recovered on account of capital or principal. 
 8.8 Transactions with Affiliates. Except as set forth in Schedule 8.8, enter into
any transaction, including, without limitation, any purchase, sale, lease or exchange of property or the rendering of any service, with any Affiliates of the Borrower except: (a) transactions with Affiliates that are Subsidiaries of Borrower;
(b) transactions otherwise permitted under this Agreement (including, without limitation, pursuant to Section 8.14 hereof); and (c) transactions in the ordinary course of Borrower’s business and upon fair and reasonable terms no
less favorable to Borrower than it would obtain in a comparable arms length transaction from unrelated third parties. 
 8.9
Sale-Leaseback Transactions. Enter into any arrangement with any Person providing for the leasing by Borrower of real or personal property which has been or is to be sold or transferred by Borrower to such Person or to any other Person to
whom funds have been or are to be advanced by such Person on the security of such property or rental obligations of Borrower, as the case may be. 
 8.10 Limitations on Other Restrictions. Except for this Agreement or any other Loan Document, enter into any agreement, document or instrument which would restrict the ability of any Subsidiary of the Borrower to pay or make
dividends or distributions in cash or kind to Borrower or any Subsidiary, to make loans, advances or other payments of whatever nature to Borrower, or to make transfers or distributions of all or any part of its assets to Borrower. 
 8.11 Prepayment of Debt. Make any prepayment (whether optional or mandatory), repurchase, redemption, defeasance or any other payment in respect
of any Subordinated Debt. 
 8.12 Amendment of Subordinated Debt Documents. Amend, modify or otherwise alter (or suffer to be amended,
modified or altered) the Subordinated Debt Documents except as permitted in the applicable Subordinated Debt Documents and Subordination Agreements, or if no such restrictions exist in the applicable Subordinated Debt Documents or Subordination
Agreements, without the prior written consent of the Agent. 
 8.13 Modification of Certain Agreements. Make, permit or consent to any
amendment or other modification to the constitutional documents of Borrower or any Material Contract except to the extent that any such amendment or modification (i) does not violate the terms and conditions of this Agreement or any of the
other Loan Documents, (ii) does not materially adversely affect the interest of the Lenders as creditors and/or secured parties under any Loan Document and (iii) could not reasonably be expected to have a Material Adverse Effect.

 8.14 Management Fees. Pay or otherwise advance, directly or indirectly, any management, consulting or other fees to an Affiliate.

  

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 8.15 Fiscal Year. Permit the Fiscal Year of Borrower to end on a day other than September 30,
2007, September 28, 2008 and September 27, 2009. 
 9. DEFAULTS. 
 9.1 Events of Default. The occurrence of any of the following events shall constitute an Event of Default hereunder: 
  

	 	(a)	non-payment when due of (i) the principal or interest on the Indebtedness under the Revolving Credit or (ii) any Reimbursement Obligation or (iii) any Fees;

  

	 	(b)	non-payment of any other amounts due and owing by any Borrower under this Agreement or by any Borrower under any of the other Loan Documents to which it is a party, other than as
set forth in subsection (a) above, within three (3) Business Days after the same is due and payable; 

  

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

  

	 	(d)	default in the observance or performance of any of the other conditions, covenants or agreements set forth in this Agreement or any of the other Loan Documents by any Borrower and
continuance thereof for a period of thirty (30) consecutive days; 

  

	 	(e)	any representation or warranty made by any Borrower herein or in any certificate, instrument or other document submitted pursuant hereto proves untrue or misleading in any material
adverse respect when made; 

  

	 	(f)	(i) default by any Borrower in the payment of any indebtedness for borrowed money, whether under a direct obligation or guaranty (other than Indebtedness hereunder) of such Borrower
in excess of Two Hundred Fifty Thousand Dollars ($250,000) (or the equivalent thereof in any currency other than Dollars) individually or in the aggregate when due and continuance thereof beyond any applicable period of cure and or (ii) failure
to comply with the material terms of any other obligation of any Borrower with respect to any indebtedness for borrowed money (other than Indebtedness hereunder) in excess of Two Hundred Fifty Thousand Dollars ($250,000) (or the equivalent thereof
in any currency other than Dollars) individually or in the aggregate, which continues beyond any applicable period of cure and which would permit the holder or holders thereto to accelerate such other indebtedness for borrowed money, or require the
prepayment, repurchase, redemption or defeasance of such indebtedness; 

  

	 	(g)	the rendering of any judgment(s) (not covered by adequate insurance from a solvent carrier which is defending such action without reservation of rights) for the payment of money in
excess of the sum of One Million 

  

 57 

 Dollars ($1,000,000) (or the equivalent thereof in any currency other than Dollars) individually or in
the aggregate against any Borrower, and such judgments shall remain unpaid, unvacated, unbonded or unstayed by appeal or otherwise for a period of thirty (30) consecutive days from the date of its entry; 
  

	 	(h)	the occurrence of (i) a “reportable event”, as defined in ERISA, which is determined by the PBGC to constitute grounds for a distress termination of any Pension Plan
subject to Title IV of ERISA maintained or contributed to by or on behalf of any Borrower for the benefit of any of its employees or for the appointment by the appropriate United States District Court of a trustee to administer such Pension Plan and
such reportable event is not corrected and such determination is not revoked within sixty (60) days after notice thereof has been given to the plan administrator of such Pension Plan (without limiting any of Agent’s or any Lender’s
other rights or remedies hereunder), or (ii) the termination or the institution of proceedings by the PBGC to terminate any such Pension Plan, or (iii) the appointment of a trustee by the appropriate United States District Court to
administer any such Pension Plan, or (iv) the reorganization (within the meaning of Section 4241 of ERISA) or insolvency (within the meaning of Section 4245 of ERISA) of any Multiemployer Plan, or receipt of notice from any
Multiemployer Plan that it is in reorganization or insolvency, or the complete or partial withdrawal by any Borrower from any Multiemployer Plan, which in the case of any of the foregoing, could reasonably be expected to have a Material Adverse
Effect; 

  

	 	(i)	except as expressly permitted under this Agreement, any Borrower shall be dissolved (other than a dissolution of a Subsidiary of such Borrower which is not a Guarantor or a
Borrower) or liquidated (or any judgment, order or decree therefor shall be entered) except as otherwise permitted herein; or if a creditors’ committee shall have been appointed for the business of such Borrower; or if a Borrower shall have
made a general assignment for the benefit of creditors or shall have been adjudicated bankrupt and if not an adjudication based on a filing by a Borrower, it shall not have been dismissed within forty-five (45) days, or shall have filed a
voluntary petition in bankruptcy or for reorganization or to effect a plan or arrangement with creditors or shall fail to pay its debts generally as such debts become due in the ordinary course of business (except as contested in good faith and for
which adequate reserves are made in such party’s financial statements); or shall file an answer to a creditor’s petition or other petition filed against it, admitting the material allegations thereof for an adjudication in bankruptcy or
for reorganization; or shall have applied for or permitted the appointment of a receiver or trustee or custodian for any of its property or assets; or such receiver, trustee or custodian shall have been appointed for any of its property or assets
(otherwise than upon application or consent of a Borrower) and shall not have been removed within thirty (30) days; or if an order shall be entered approving any petition for reorganization of a Borrower and shall not have been reversed or
dismissed within forty-five (45) days; 

  

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	 	(j)	[Intentionally Omitted]; 

  

	 	(k)	the validity, binding effect or enforceability of any subordination provisions relating to any Subordinated Debt shall be contested by any Person party thereto (other than any
Lender, Agent or Issuing Lender), or such subordination provisions shall fail to be enforceable by Agent and the Lenders in accordance with the terms thereof, or the Indebtedness shall for any reason not have the priority contemplated by this
Agreement or such subordination provisions; or 

  

	 	(l)	any Loan Document shall at any time for any reason cease to be in full force and effect (other than in accordance with the terms thereof or the terms of any other Loan Document), as
applicable, or the validity, binding effect or enforceability thereof shall be contested by any party thereto (other than any Lender, Agent or Issuing Lender), or any Person shall deny that it has any or further liability or obligation under any
Loan Document, or any such Loan Document shall be terminated (other than in accordance with the terms thereof or the terms of any other Loan Document), invalidated, revoked or set aside or in any way cease to give or provide to the Lenders and the
Agent the benefits purported to be created thereby. 

 9.2 Exercise of Remedies. If an Event of Default has occurred and
is continuing hereunder: (a) the Agent may, and shall, upon being directed to do so by the Majority Revolving Credit Lenders, declare the Revolving Credit Aggregate Commitment terminated; (b) the Agent may, and shall, upon being directed
to do so by the Majority Lenders, declare the entire unpaid principal Indebtedness, including the Notes, immediately due and payable, without presentment, notice or demand, all of which are hereby expressly waived by Borrowers; (c) upon the
occurrence of any Event of Default specified in Section 9.1(i) and notwithstanding the lack of any declaration by Agent under preceding clauses (a) or (b), the entire unpaid principal Indebtedness shall become automatically and immediately
due and payable, and the Revolving Credit Aggregate Commitment shall be automatically and immediately terminated; (d) the Agent shall, upon being directed to do so by the Majority Revolving Credit Lenders, demand immediate delivery of cash
collateral, and each Borrower agrees to deliver such cash collateral upon demand, in an amount equal to 105% of the maximum amount that may be available to be drawn at any time prior to the stated expiry of all outstanding Letters of Credit;
(e) the Agent may, and shall, upon being directed to do so by the Majority Lenders, notify Agent that interest shall be payable on demand on all Indebtedness (other than Revolving Credit Advances with respect to which Section 2.6 hereof
shall govern) owing from time to time to the Agent or any Lender, at a per annum rate equal to the then applicable Prime-based Rate plus two percent (2%); and (f) the Agent may, and shall, upon being directed to do so by the Majority Lenders or
the Lenders, as applicable (subject to the terms hereof), exercise any remedy permitted by this Agreement, the other Loan Documents or law. 
  

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 9.3 Rights Cumulative. No delay or failure of Agent and/or Lenders in exercising any right, power
or privilege hereunder shall affect such right, power or privilege, nor shall any single or partial exercise thereof preclude any further exercise thereof, or the exercise of any other power, right or privilege. The rights of Agent and Lenders under
this Agreement are cumulative and not exclusive of any right or remedies which Lenders would otherwise have. 
 9.4 Waiver by Borrowers of
Certain Laws. To the extent permitted by applicable law, each Borrower hereby agrees to waive, and does hereby absolutely and irrevocably waive and relinquish the benefit and advantage of any valuation, stay, appraisement, extension or
redemption laws now existing or which may hereafter exist, which, but for this provision, might be applicable to any sale made under the judgment, order or decree of any court, on any claim for interest on the Notes, or any security interest or
mortgage contemplated by or granted under or in connection with this Agreement. These waivers have been voluntarily given, with full knowledge of the consequences thereof. 
 9.5 Waiver of Defaults. No Event of Default shall be waived by the Lenders except in a writing signed by an officer of the Agent in accordance
with Section 13.6 hereof. No single or partial exercise of any right, power or privilege hereunder, nor any delay in the exercise thereof, shall preclude other or further exercise of their rights by Agent or the Lenders. No waiver of any Event
of Default shall extend to any other or further Event of Default. No forbearance on the part of the Agent or the Lenders in enforcing any of their rights shall constitute a waiver of any of their rights. Each Borrower expressly agrees that this
Section may not be waived or modified by the Lenders or Agent by course of performance, estoppel or otherwise. 
 9.6 Set Off. Upon
the occurrence and during the continuance of any Event of Default, each Lender may at any time and from time to time, without notice to Borrowers but subject to the provisions of Section 10.3 hereof (any requirement for such notice being
expressly waived by Borrowers), setoff and apply against any and all of the obligations of Borrowers now or hereafter existing under this Agreement, whether owing to such Lender, any Affiliate of such Lender or any other Lender or the Agent, any and
all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of a Borrower and any property of a Borrower from time to time in
possession of such Lender, irrespective of whether or not such deposits held or indebtedness owing by such Lender may be contingent and unmatured and regardless of whether any collateral then held by Agent or any Lender is adequate to cover the
Indebtedness. Promptly following any such setoff, such Lender shall give written notice to Agent and Parent of the occurrence thereof. Each Borrower hereby grants to the Lenders and the Agent a lien on and security interest in all such deposits,
indebtedness and property as collateral security for the payment and performance of all of the obligations of such Borrower under this Agreement. The rights of each Lender under this Section 9.6 are in addition to the other rights and remedies
(including, without limitation, other rights of setoff) which such Lender may have. 
  

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 10. PAYMENTS, RECOVERIES AND COLLECTIONS. 
 10.1 Payment Procedure. 
  

	 	(a)	All payments to be made by a Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise provided herein, all
payments made by a Borrower of principal, interest or fees hereunder shall be made without setoff or counterclaim on the date specified for payment under this Agreement and must be received by Agent not later than 1:00 p.m. (California time) on the
date such payment is required or intended to be made in Dollars in immediately available funds to Agent at Agent’s office located at 500 North State College Boulevard, Suite 570, Orange, California 92868 for the ratable benefit of the Revolving
Credit Lenders in the case of payments in respect of the Revolving Credit and any Letter of Credit Obligations. Any payment received by the Agent after 1:00 p.m. (California time) shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue. Upon receipt of each such payment, the Agent shall make prompt payment to each applicable Lender, or, in respect of Eurodollar-based Advances, such Lender’s Eurodollar Lending Office, in like
funds and currencies, of all amounts received by it for the account of such Lender. 

  

	 	(b)	Unless the Agent shall have been notified in writing by Parent at least two (2) Business Days prior to the date on which any payment to be made by Borrowers is due that
Borrowers do not intend to remit such payment, the Agent may, in its sole discretion and without obligation to do so, assume that Borrowers have remitted such payment when so due and the Agent may, in reliance upon such assumption, make available to
each Revolving Credit Lender, on such payment date an amount equal to such Lender’s share of such assumed payment. If Borrowers have not in fact remitted such payment to the Agent, each Lender shall forthwith on demand repay to the Agent the
amount of such assumed payment made available or transferred to such Lender, together with the interest thereon, in respect of each day from and including the date such amount was made available by the Agent to such Lender to the date such amount is
repaid to the Agent at a rate per annum equal to the Federal Funds Effective Rate for the first two (2) Business Days that such amount remains unpaid, and thereafter at a rate of interest then applicable to such Revolving Credit Advances.

  

	 	(c)	Subject to the definition of “Interest Period” in Section 1 of this Agreement, whenever any payment to be made hereunder shall otherwise be due on a day which is not
a Business Day, such payment shall be made on the next succeeding Business Day and such extension of time shall be included in computing interest, if any, in connection with such payment. 

  

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	 	(d)	All payments to be made by a Borrower under this Agreement or any of the Notes shall be made without setoff or counterclaim, as aforesaid, and, subject to full compliance by each
Lender (and each assignee and participant pursuant to Section 13.8) with Section 13.13, without deduction for or on account of any present or future withholding or other taxes of any nature imposed by any governmental authority or of any
political subdivision thereof or any federation or organization of which such governmental authority may at the time of payment be a member (other than any taxes on the overall income, net income, net profits or net receipts or similar taxes (or any
franchise taxes imposed in lieu of such taxes) on the Agent or any Lender (or any branch maintained by Agent or a Lender) as a result of a present or former connection between the Agent or such Lender and the governmental authority, political
subdivision, federation or organization imposing such taxes), unless Borrowers are compelled by law to make payment subject to such tax. In such event, Borrowers shall: 

  

	 	(i)	pay to the Agent for Agent’s own account and/or, as the case may be, for the account of the Lenders such additional amounts as may be necessary to ensure that the Agent and/or
such Lender or Lenders receive a net amount equal to the full amount which would have been receivable had payment not been made subject to such tax; and 

  

	 	(ii)	remit such tax to the relevant taxing authorities according to applicable law, and send to the Agent or the applicable Lender or Lenders, as the case may be, such certificates or
certified copy receipts as the Agent or such Lender or Lenders shall reasonably require as proof of the payment by Borrowers of any such taxes payable by each Borrower. 

 As used herein, the terms “tax”, “taxes” and “taxation” include all taxes, levies, imposts, duties, fees, deductions and withholdings or similar charges together with interest (and any
taxes payable upon the amounts paid or payable pursuant to this Section 10.1) thereon. Parent shall be reimbursed by the applicable Lender for any payment made by a Borrower under this Section 10.1 if the applicable Lender is not in
compliance with its obligations under Section 13.13 at the time of the Borrower’s payment. 
 10.2 [Intentionally Omitted].

 10.3 Pro-rata Recovery. If any Lender shall obtain any payment or other recovery (whether voluntary, involuntary, by application of
setoff or otherwise) on account of principal of, or interest on, any of the Advances made by it, or the participations in Letter of Credit Obligations held by it in excess of its pro rata share of payments then or thereafter obtained by all Lenders
upon principal of and interest on all such Indebtedness, such Lender shall purchase from the other Lenders such participations in the Revolving Credit and/or the Letter of Credit Obligation held by them as shall be necessary to cause such purchasing
Lender to share the 
  

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 excess payment or other recovery ratably in accordance with the applicable Percentages of the Lenders; provided, however,
that if all or any portion of the excess payment or other recovery is thereafter recovered from such purchasing holder, the purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest. 

11. CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS. 
 11.1 Reimbursement of Prepayment Costs. If (i) Borrowers make any payment of principal with respect to any Eurodollar-based Advance on any day other than the last day of the Interest Period applicable thereto (whether
voluntarily, pursuant to any mandatory provisions hereof, by acceleration, or otherwise); (ii) Borrowers convert or refund (or attempt to convert or refund) any such Advance on any day other than the last day of the Interest Period applicable
thereto; (iii) Borrowers fails to borrow, refund or convert any Eurodollar-based Advance after notice has been given by Parent to Agent in accordance with the terms hereof requesting such Advance; or (iv) or if Borrowers fail to make any
payment of principal in respect of a Eurodollar-based Advance when due, Borrowers shall reimburse Agent for itself and/or on behalf of any Lender, as the case may be, within ten (10) Business Days of written demand therefor for any resulting
loss, cost or expense incurred (excluding the loss of any Applicable Margin) by Agent and Lenders, as the case may be, as a result thereof, including, without limitation, any such loss, cost or expense incurred in obtaining, liquidating, employing
or redeploying deposits from third parties, whether or not Agent and Lenders, as the case may be, shall have funded or committed to fund such Advance. Calculation of any amounts payable to any Lender under this paragraph shall be made as though such
Lender shall have actually funded or committed to fund the relevant Advance through the purchase of an underlying deposit in an amount equal to the amount of such Advance and having a maturity comparable to the relevant Interest Period; provided,
however, that any Lender may fund any Eurodollar-based Advance in any manner it deems fit and the foregoing assumptions shall be utilized only for the purpose of the calculation of amounts payable under this paragraph. Upon the written request of
Parent, Agent and Lenders shall deliver to Parent a certificate setting forth the basis for determining such losses, costs and expenses, which certificate shall be conclusively presumed correct, absent manifest error. 
 11.2 Eurodollar Lending Office. For any Eurodollar Advance, if Agent or a Lender, as applicable, shall designate a Eurodollar Lending Office which
maintains books separate from those of the rest of Agent or such Lender, Agent or such Lender, as the case may be, shall have the option of maintaining and carrying the relevant Advance on the books of such Eurodollar Lending Office. 
 11.3 Circumstances Affecting Eurodollar-based Rate Availability. If, with respect to any Eurodollar-Interest Period, Agent or the Majority Lenders
(after consultation with Agent) shall determine in good faith that, by reason of circumstances affecting the foreign exchange and interbank markets generally, deposits in eurodollars in the applicable amounts are not being offered to the Agent or
such Lenders for such Eurodollar-Interest Period, then Agent shall forthwith give notice thereof to Parent. Thereafter, until Agent notifies Parent that such circumstances no longer exist, (i) the obligation of Lenders to make Eurodollar-based
Advances, and the right of Parent to convert an Advance to or refund an Advance as a Eurodollar-based Advance, as the case may be, shall be suspended, and (ii) effective upon the last day of each 
  

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 Eurodollar-Interest Period related to any existing Eurodollar-based Advance, each such Eurodollar-based Advance shall
automatically be converted into a Prime-based Advance (without regard to satisfaction of any conditions to conversion contained elsewhere herein). 
 11.4 Laws Affecting Eurodollar-based Advance Availability. If, after the date of this Agreement, the adoption or introduction of, or any change in, any applicable law, rule or regulation or in the interpretation or administration
thereof by any governmental authority charged with the interpretation or administration thereof, or compliance by any of the Lenders (or any of their respective Eurodollar Lending Offices) with any request or directive (whether or not having the
force of law) of any such authority, shall make it unlawful or impossible for any of the Lenders (or any of their respective Eurodollar Lending Offices) to honor its obligations hereunder to make or maintain any Advance with interest at the
Eurodollar-based Rate, such Lender shall forthwith give notice thereof to Parent and to Agent. Thereafter, (a) the obligations of the applicable Lenders to make Eurodollar-based Advances and the right of Parent to convert an Advance into or
refund an Advance as a Eurodollar-based Advance shall be suspended and thereafter Parent may select as Applicable Interest Rates only those which remain available and which are permitted to be selected hereunder, and (b) if any of the Lenders
may not lawfully continue to maintain an Advance to the end of the then current Eurodollar-Interest Period applicable thereto as a Eurodollar-based Advance, the applicable Advance shall immediately be converted to a Prime-based Advance and the
Prime-based Rate shall be applicable thereto for the remainder of such Eurodollar-Interest Period. For purposes of this Section, a change in law, rule, regulation, interpretation or administration shall include, without limitation, any change made
or which becomes effective on the basis of a law, rule, regulation, interpretation or administration presently in force, the effective date of which change is delayed by the terms of such law, rule, regulation, interpretation or administration.

 11.5 Increased Cost of Eurodollar-based Advances. If, after the date of this Agreement, the adoption or introduction of, or any
change in, any applicable law, rule or regulation or in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by Agent
or any of the Lenders (or any of their respective Eurodollar Lending Offices) with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency: 
  

	 	(a)	shall subject any of the Lenders (or any of their respective Eurodollar Lending Offices) to any tax, duty or other charge with respect to any Advance or shall change the basis of
taxation of payments to any of the Lenders (or any of their respective Eurodollar Lending Offices) of the principal of or interest on any Advance or any other amounts due under this Agreement in respect thereof (except for changes in the rate of tax
on the overall net income of any of the Lenders or any of their respective Eurodollar Lending Offices); or 

  

	 	(b)	shall impose, modify or deem applicable any reserve (including, without limitation, any imposed by the Board of Governors of the Federal Reserve System), special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by, any of the Lenders (or 

  

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 any of their respective Eurodollar Lending Offices) or shall impose on any of the Lenders (or any of
their respective Eurodollar Lending Offices) or the foreign exchange and interbank markets any other condition affecting any Advance; 
 and the result of
any of the foregoing matters is to increase the costs to any of the Lenders of maintaining any part of the Indebtedness hereunder as a Eurodollar-based Advance or to reduce the amount of any sum received or receivable by any of the Lenders under
this Agreement in respect of a Eurodollar-based Advance, then such Lender shall promptly notify Agent, and Agent shall promptly notify Parent of such fact and demand compensation therefor and, within ten (10) Business Days after such notice,
Borrowers agree to pay to such Lender or Lenders such additional amount or amounts as will compensate such Lender or Lenders for such increased cost or reduction, provided that each Lender agrees to take any reasonable action, to the extent such
action could be taken without cost or administrative or other burden or restriction to such Lender, to mitigate or eliminate such cost or reduction, within a reasonable time after becoming aware of the foregoing matters. Agent will promptly notify
Parent of any event of which it has knowledge which will entitle Lenders to compensation pursuant to this Section, or which will cause Borrowers to incur additional liability under Section 11.1 hereof, provided that Agent shall incur no
liability whatsoever to the Lenders or Borrowers in the event it fails to do so. A certificate of Agent (or such Lender, if applicable) setting forth the basis for determining such additional amount or amounts necessary to compensate such Lender or
Lenders shall accompany such demand and shall be conclusively presumed to be correct absent manifest error. 
 11.6 Capital Adequacy and
Other Increased Costs. 
  

	 	(a)	If, after the date of this Agreement, the adoption or introduction of, or any change in any applicable law, treaty, rule or regulation (whether domestic or foreign) now or hereafter
in effect and whether or not presently applicable to any Lender or Agent, or any interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof, or compliance by any Lender or Agent
with any guideline, request or directive of any such authority (whether or not having the force of law), including any risk based capital guidelines, affects or would affect the amount of capital required to be maintained by such Lender or Agent (or
any corporation controlling such Lender or Agent) and such Lender or Agent, as the case may be, determines that the amount of such capital is increased by or based upon the existence of such Lender’s or Agent’s obligations or Advances
hereunder and such increase has the effect of reducing the rate of return on such Lender’s or Agent’s (or such controlling corporation’s) capital as a consequence of such obligations or Advances hereunder to a level below that which
such Lender or Agent (or such controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy) by an amount deemed by such Lender or Agent to be material (collectively,
“Increased Costs”), then Agent or such Lender shall notify Parent, and thereafter Borrowers shall pay to such Lender or Agent, as the case may be, within ten (10) Business Days of written demand 

  

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 therefor from such Lender or Agent, additional amounts sufficient to compensate such Lender or Agent (or
such controlling corporation) for any increase in the amount of capital and reduced rate of return which such Lender or Agent reasonably determines to be allocable to the existence of such Lender’s or Agent’s obligations or Advances
hereunder. A statement setting forth the amount of such compensation, the methodology for the calculation and the calculation thereof which shall also be prepared in good faith and in reasonable detail by such Lender or Agent, as the case may be,
shall be submitted by such Lender or by Agent to Parent, reasonably promptly after becoming aware of any event described in this Section 11.6(a) and shall be conclusively presumed to be correct, absent manifest error. 
  

	 	(b)	Notwithstanding the foregoing, however, Borrowers shall not be required to pay any increased costs under Sections 11.5, 11.6 or 3.4(c) for any period ending prior to the date that
is 180 days prior to the making of a Lender’s initial request for such additional amounts unless the applicable change in law or other event resulting in such increased costs is effective retroactively to a date more than 180 days prior to the
date of such request, in which case a Lender’s request for such additional amounts relating to the period more than 180 days prior to the making of the request must be given not more than 180 days after such Lender becomes aware of the
applicable change in law or other event resulting in such increased costs. 

 11.7 Right of Lenders to Fund through Branches
and Affiliates. Each Lender may, if it so elects, fulfill its commitment as to any Advance hereunder by designating a branch or Affiliate of such Lender to make such Advance; provided that (a) such Lender shall remain solely
responsible for the performances of its obligations hereunder and (b) no such designation shall result in any material increased costs to Borrowers. 
 11.8 Margin Adjustment. Adjustments to the Applicable Margins and the Applicable Fee Percentages, based on Schedule 1.1, shall be implemented on a quarterly basis as follows: 
  

	 	(a)	Such adjustments shall be given prospective effect only, effective as to all Advances outstanding hereunder, the Applicable Fee Percentage and the Letter of Credit Fee, upon the
date of delivery of the financial statements under Sections 7.1(a) and 7.1(b) hereunder and the Covenant Compliance Report under Section 7.2(a) hereof, in each case establishing applicability of the appropriate adjustment and in each case with
no retroactivity or claw-back. In the event Parent shall fail timely to deliver such financial statements or the Covenant Compliance Report and such failure continues for three (3) days, then (but without affecting the Event of Default
resulting therefrom) from the date delivery of such financial statements and report was required until such financial statements and report are delivered, the Applicable Margins and Applicable Fee Percentages shall be at the highest level on the
Pricing Matrix attached to this Agreement as Schedule 1.1. 

  

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	 	(b)	From the Effective Date until the required date of delivery (or, if earlier, delivery) of the financial statements under Section 7.1(b) hereof, and the Covenant Compliance
Report under Section 7.2(a) hereof, for the fiscal quarter ending December 31, 2006, the Applicable Margins and Applicable Fee Percentages shall be those set forth under the Level I column of the pricing matrix attached to this Agreement
as Schedule 1.1. Thereafter, Applicable Margins and Applicable Fee Percentages shall be based upon the quarterly financial statements and Covenant Compliance Reports, subject to recalculation as provided in Section 11.8(a) above.

 12. AGENT. 
 12.1
Appointment of Agent. Each Lender and the holder of each Note (if issued) irrevocably appoints and authorizes the Agent to act on behalf of such Lender or holder under this Agreement and the other Loan Documents and to exercise such powers
hereunder and thereunder as are specifically delegated to Agent by the terms hereof and thereof, together with such powers as may be reasonably incidental thereto, including without limitation the power to execute or authorize the execution of
financing or similar statements or notices, and other documents. In performing its functions and duties under this Agreement, the Agent shall act solely as agent of the Lenders and does not assume and shall not be deemed to have assumed any
obligation towards or relationship of agency or trust with or for Borrowers. 
 12.2 Deposit Account with Agent or any Lender. Each
Borrower authorizes Agent and each Lender, in Agent’s or such Lender’s sole discretion, upon notice to Agent to charge its general deposit account(s), if any, maintained with the Agent or such Lender for the amount of any principal,
interest, or other amounts or costs due under this Agreement when the same become due and payable under the terms of this Agreement or the Notes. 
 12.3 Scope of Agent’s Duties. The Agent shall have no duties or responsibilities except those expressly set forth herein, and shall not, by reason of this Agreement or otherwise, have a fiduciary relationship with any Lender
(and no implied covenants or other obligations shall be read into this Agreement against the Agent). None of Agent, its Affiliates nor any of their respective directors, officers, employees or agents shall be liable to any Lender for any action
taken or omitted to be taken by it or them under this Agreement or any document executed pursuant hereto, or in connection herewith or therewith with the consent or at the request of the Majority Lenders (or all of the Lenders for those acts
requiring consent of all of the Lenders) (except for its or their own willful misconduct or gross negligence), nor be responsible for or have any duties to ascertain, inquire into or verify (a) any recitals or warranties made by any Borrower or
any Affiliate of any Borrower, or any officer thereof contained herein or therein, (b) the effectiveness, enforceability, validity or due execution of this Agreement or any document executed pursuant hereto or any security thereunder,
(c) the performance by the Borrower of their respective obligations hereunder or thereunder, or (d) the satisfaction of any condition hereunder or thereunder, including without limitation in connection with the making of any Advance or the
issuance of any Letter of Credit. Agent and its Affiliates shall be entitled to rely upon any certificate, notice, document or other communication (including any cable, telegraph, telex, facsimile transmission or oral communication) believed by it
to be genuine and correct and to have been sent or given by or on behalf of a proper person. Agent may treat the payee of any 
  

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 Note as the holder thereof. Agent may employ agents and may consult with legal counsel, independent public accountants
and other experts selected by it and shall not be liable to the Lenders (except as to money or property received by them or their authorized agents), for the negligence or misconduct of any such agent selected by it with reasonable care or for any
action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 
 12.4
Successor Agent. Agent may resign as such at any time upon at least thirty (30) days prior notice to Parent and each of the Lenders. If Agent at any time shall resign or if the office of Agent shall become vacant for any other reason,
Majority Lenders shall, by written instrument, appoint successor agent(s) (“Successor Agent”) satisfactory to such Majority Lenders and, so long as no Default or Event of Default has occurred and is continuing, to Parent (which approval
shall not be unreasonably withheld or delayed); provided, however that any such successor Agent shall be a bank or a trust company or other financial institution which maintains an office in the United States, or a commercial bank organized under
the laws of the United States or any state thereof, or any Affiliate of such bank or trust company or other financial institution which is engaged in the banking business, and shall have a combined capital and surplus of at least $500,000,000. Such
Successor Agent shall thereupon become the Agent hereunder, as applicable, and Agent shall deliver or cause to be delivered to any successor agent such documents of transfer and assignment as such Successor Agent may reasonably request. If a
Successor Agent is not so appointed or does not accept such appointment before the resigning Agent’s resignation becomes effective, the resigning Agent may appoint a temporary successor to act until such appointment by the Majority Lenders and,
if applicable, Parent, is made and accepted, or if no such temporary successor is appointed as provided above by the resigning Agent, the Majority Lenders shall thereafter perform all of the duties of the resigning Agent hereunder until such
appointment by the Majority Lenders and, if applicable, Parent, is made and accepted. Such Successor Agent shall succeed to all of the rights and obligations of the resigning Agent as if originally named. The resigning Agent shall duly assign,
transfer and deliver to such Successor Agent all moneys at the time held by the resigning Agent hereunder after deducting therefrom its expenses for which it is entitled to be reimbursed hereunder. Upon such succession of any such Successor Agent,
the resigning Agent shall be discharged from its duties and obligations, in its capacity as Agent hereunder, except for its gross negligence or willful misconduct arising prior to its resignation hereunder, and the provisions of this Article 12
shall continue in effect for the benefit of the resigning Agent in respect of any actions taken or omitted to be taken by it while it was acting as Agent. 
 12.5 Credit Decisions. Each Lender acknowledges that it has, independently of Agent and each other Lender and based on the financial statements of Borrowers and such other documents, information and
investigations as it has deemed appropriate, made its own credit decision to extend credit hereunder from time to time. Each Lender also acknowledges that it will, independently of Agent and each other Lender and based on such other documents,
information and investigations as it shall deem appropriate at any time, continue to make its own credit decisions as to exercising or not exercising from time to time any rights and privileges available to it under this Agreement, any Loan Document
or any other document executed pursuant hereto. 
  

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 12.6 Authority of Agent to Enforce This Agreement. Each Lender, subject to the terms and
conditions of this Agreement, grants the Agent full power and authority as attorney-in-fact to institute and maintain actions, suits or proceedings for the collection and enforcement of any Indebtedness outstanding under this Agreement or any other
Loan Document and to file such proofs of debt or other documents as may be necessary to have the claims of the Lenders allowed in any proceeding relative to any Borrower, or their respective creditors or affecting their respective properties, and to
take such other actions which Agent considers to be necessary or desirable for the protection, collection and enforcement of the Notes, this Agreement or the other Loan Documents. 
 12.7 Indemnification of Agent. The Lenders agree (which agreement shall survive the expiration or termination of this Agreement) to indemnify the
Agent and its Affiliates (to the extent not reimbursed by Borrowers, but without limiting any obligation of Borrowers to make such reimbursement), ratably according to their respective Weighted Percentages, from and against any and all claims,
damages, losses, liabilities, costs or expenses of any kind or nature whatsoever (including, without limitation, reasonable fees and disbursements of counsel) which may be imposed on, incurred by, or asserted against the Agent and its Affiliates in
any way relating to or arising out of this Agreement, any of the other Loan Documents or the transactions contemplated hereby or any action taken or omitted by the Agent and its Affiliates under this Agreement or any of the Loan Documents; provided,
however, that no Lender shall be liable for any portion of such claims, damages, losses, liabilities, costs or expenses resulting from the Agent’s or its Affiliate’s gross negligence or willful misconduct. Without limitation of the
foregoing, each Lender agrees to reimburse the Agent and its Affiliates promptly upon demand for its ratable share of any reasonable out-of-pocket expenses (including, without limitation, reasonable fees and expenses of house and outside counsel)
incurred by the Agent and its Affiliates in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of
rights or responsibilities under, this Agreement or any of the other Loan Documents, to the extent that the Agent and its Affiliates are not reimbursed for such expenses by Borrowers, but without limiting the obligation of Borrowers to make such
reimbursement. Each Lender agrees to reimburse the Agent and its Affiliates promptly upon demand for its ratable share of any amounts owing to the Agent and its Affiliates by the Lenders pursuant to this Section, provided that, if the Agent or its
Affiliates are subsequently reimbursed by a Borrower for such amounts, they shall refund to the Lenders on a pro rata basis the amount of any excess reimbursement. If the indemnity furnished to the Agent and its Affiliates under this Section shall
become impaired as determined in the Agent’s reasonable judgment or Agent shall elect in its sole discretion to have such indemnity confirmed by the Lenders (as to specific matters or otherwise), Agent shall give notice thereof to each Lender
and, until such additional indemnity is provided or such existing indemnity is confirmed, the Agent may cease, or not commence, to take any action. Any amounts paid by the Lenders hereunder to the Agent or its Affiliates shall be deemed to
constitute part of the Indebtedness hereunder. 
 12.8 Knowledge of Default. It is expressly understood and agreed that the Agent
shall be entitled to assume that no Default or Event of Default has occurred and is continuing, unless the officers of the Agent immediately responsible for matters concerning this Agreement shall have received a written notice from a Lender or a
Borrower specifying such Default or Event of Default and stating that such notice is a “notice of default”. Upon receiving such a notice, the 
  

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 Agent shall promptly notify each Lender of such Default or Event of Default and provide each Lender with a copy of such
notice and shall endeavor to provide such notice to the Lenders within three (3) Business Days (but without any liability whatsoever in the event of its failure to do so). The Agent shall also furnish the Lenders, promptly upon receipt, with
copies of all other notices or other information required to be provided by any Borrower hereunder. 
 12.9 Agent’s Authorization;
Action by Lenders. Except as otherwise expressly provided herein, whenever the Agent is authorized and empowered hereunder on behalf of the Lenders to give any approval or consent, or to make any request, or to take any other action on behalf of
the Lenders (including without limitation the exercise of any right or remedy hereunder or under the other Loan Documents), the Agent shall be required to give such approval or consent, or to make such request or to take such other action only when
so requested in writing by the Majority Lenders or the Lenders, as applicable hereunder. Action that may be taken by the Majority Lenders, any other specified Percentage of the Lenders or all of the Lenders, as the case may be (as provided for
hereunder) may be taken (i) pursuant to a vote of the requisite percentages of the Lenders as required hereunder at a meeting (which may be held by telephone conference call), provided that Agent exercises good faith, diligent efforts to give
all of the Lenders reasonable advance notice of the meeting, or (ii) pursuant to the written consent of the requisite percentages of the Lenders as required hereunder, provided that all of the Lenders are given reasonable advance notice of the
requests for such consent. 
 12.10 Enforcement Actions by the Agent. Except as otherwise expressly provided under this Agreement or
in any of the other Loan Documents and subject to the terms hereof, Agent will take such action, assert such rights and pursue such remedies under this Agreement and the other Loan Documents as the Majority Lenders or all of the Lenders, as the case
may be (as provided for hereunder), shall direct; provided, however, that the Agent shall not be required to act or omit to act if, in the reasonable judgment of the Agent, such action or omission may expose the Agent to personal liability for which
Agent has not been satisfactorily indemnified hereunder or is contrary to this Agreement, any of the Loan Documents or applicable law. Except as expressly provided above or elsewhere in this Agreement or the other Loan Documents, no Lender (other
than the Agent, acting in its capacity as agent) shall be entitled to take any enforcement action of any kind under this Agreement or any of the other Loan Documents. 
 12.11 [Intentionally Omitted]. 
 12.12 Agents in their Individual Capacities. Comerica Bank
and its Affiliates, successors and assigns shall each have the same rights and powers hereunder as any other Lender and may exercise or refrain from exercising the same as though such Lender were not the Agent. Comerica Bank and its Affiliates may
(without having to account therefor to any Lender) accept deposits from, lend money to, and generally engage in any kind of banking, trust, financial advisory or other business with any Borrower as if such Lender were not acting as the Agent
hereunder, and may accept fees and other consideration therefor without having to account for the same to the Lenders. 
 12.13
Agent’s Fees. Until the Indebtedness has been repaid and discharged in full and no commitment to extend any credit hereunder is outstanding, Borrowers shall pay to the Agent, 
  

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 as applicable, any agency or other fee(s) set forth (or to be set forth from time to time) herein. The agency fees
referred to in this Section 12.13 shall not be refundable under any circumstances. 
 12.14 Documentation Agent or other Titles.
Any Lender identified on the facing page or signature page of this Agreement or in any amendment hereto or as designated with consent of the Agent in any assignment agreement as Lead Arranger, Documentation Agent, Syndications Agent or any similar
titles, shall not have any right, power, obligation, liability, responsibility or duty under this Agreement as a result of such title other than those applicable to all Lenders as such. Without limiting the foregoing, the Lenders so identified shall
not have or be deemed to have any fiduciary relationship with any Lender as a result of such title. Each Lender acknowledges that it has not relied, and will not rely, on the Lender so identified in deciding to enter into this Agreement or in taking
or not taking action hereunder. 
 13. MISCELLANEOUS. 
 13.1 Accounting Principles. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to
be made for the purposes of this Agreement, it shall be done, unless otherwise specified herein, in accordance with GAAP. 
 13.2 Choice
of Law and Venue; Jury Trial Waiver. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts of law. Each of Borrowers, the Agent and Lenders
hereby submits to the exclusive jurisdiction of the state and Federal courts located in the State of California. THE UNDERSIGNED ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN
CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR HER CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, WAIVES ANY RIGHT TO
TRIAL BY JURY IN THE EVENT OF LITIGATION ARISING OUT OF OR RELATED TO THIS AGREEMENT OR ANY OTHER DOCUMENT, INSTRUMENT OR AGREEMENT BETWEEN THE UNDERSIGNED PARTIES 
 13.3 Reference Provision. In the event the Jury Trial Waiver set forth above is not enforceable, the parties elect to proceed under this Judicial Reference Provision. 
  

	 	(a)	Mechanics. 

  

	 	(i)	With the exception of the items specified in clause (b), below, any controversy, dispute or claim (each, a “Claim”) between the parties arising out of or relating to this
Agreement or any other document, instrument or agreement between the undersigned parties (collectively in this Section, the “Loan Documents”), will be resolved by a reference proceeding in California in accordance with the provisions of
Sections 638 et seq. of the California Code 

  

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 of Civil Procedure (“CCP”), or their successor sections, which shall constitute the exclusive
remedy for the resolution of any Claim, including whether the Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding will be in the state or federal court in the county or
district where the real property involved in the action, if any, is located or in the state or federal court in the county or district where venue is otherwise appropriate under applicable law (the “Court”). 
  

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

  

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

  

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

  

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

  

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

  

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

  

	 	(d)	Repeal. If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted), any dispute 

  

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 between the parties that would otherwise be determined by reference procedure will be resolved and
determined by arbitration. The arbitration will be conducted by a retired judge or justice, in accordance with the California Arbitration Act §1280 through §1294.2 of the CCP as amended from time to time. The limitations with respect to
discovery set forth above shall apply to any such arbitration proceeding. 
  

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

 13.4
Interest. In the event the obligation of a Borrower to pay interest on the principal balance of the Notes or on any other amounts outstanding hereunder or under the other Loan Documents is or becomes in excess of the maximum interest rate
which such Borrower is permitted by law to contract or agree to pay, giving due consideration to the execution date of this Agreement, then, in that event, the rate of interest applicable thereto with respect to such Lender’s applicable
Percentages shall be deemed to be immediately reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction of principal and not of interest. 
 13.5 Closing Costs and Other Costs; Indemnification. 
  

	 	(a)	Borrowers shall pay or reimburse (a) Agent and its Affiliates for payment of, on demand, all reasonable costs and expenses, including, by way of description and not limitation,
reasonable in-house and outside attorney fees and advances, appraisal and accounting fees, lien search fees, and required travel costs, incurred by Agent and its Affiliates in connection with the commitment, consummation and closing of the loans
contemplated hereby, or in connection with the administration or enforcement of this Agreement or the other Loan Documents (including the obtaining of legal advice regarding the rights and responsibilities of the parties hereto) or any refinancing
or restructuring of the loans or Advances provided under this Agreement or the other Loan Documents, or any amendment or modification thereof requested by a Borrower, and (b) Agent and its Affiliates and each of the Lenders, as the case may be,
for all stamp and other taxes and duties payable or determined to be payable in connection with the execution, delivery, filing or recording of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby,
and any and all liabilities with respect 

  

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 to or resulting from any delay in paying or omitting to pay such taxes or duties. Furthermore, all
reasonable costs and expenses, including without limitation attorney fees, incurred by Agent and its Affiliates and, after the occurrence and during the continuance of an Event of Default, by the Lenders in revising, preserving, protecting,
exercising or enforcing any of its or any of the Lenders’ rights against a Borrower, or otherwise incurred by Agent and its Affiliates and the Lenders in connection with any Event of Default or the enforcement of the loans (whether incurred
through negotiations, legal proceedings or otherwise), including by way of description and not limitation, such charges in any court or bankruptcy proceedings or arising out of any claim or action by any person against Agent, its Affiliates, or any
Lender which would not have been asserted were it not for Agent’s or such Affiliate’s or Lender’s relationship with Borrowers hereunder or otherwise, shall also be paid by Borrowers. All of said amounts required to be paid by
Borrowers hereunder and not paid forthwith upon demand, as aforesaid, shall bear interest, from the date incurred to the date payment is received by Agent, at the Prime-based Rate, plus two percent (2%). 
  

	 	(b)	Each Borrower agrees to indemnify and hold Agent and each of the Lenders (and their respective Affiliates) harmless from all loss, cost, damage, liability or expenses, including
reasonable house and outside attorneys’ fees and disbursements (but without duplication of such fees and disbursements for the same services), incurred by Agent and each of the Lenders by reason of an Event of Default, or enforcing the
obligations of any Borrower under this Agreement or any of the other Loan Documents, as applicable, or in the prosecution or defense of any action or proceeding concerning any matter growing out of or connected with this Agreement or any of the Loan
Documents, excluding, however, any loss, cost, damage, liability or expenses to the extent arising as a result of the gross negligence or willful misconduct of the party seeking to be indemnified under this Section 13.5(b), provided that,
Borrowers shall be obligated to reimburse Agent and the Lenders for only a single financial consultant selected by Agent in consultation with the Lenders. 

  

	 	(c)	Each Borrower agrees to defend, indemnify and hold harmless Agent and each Lender (and their respective Affiliates), and their respective employees, agents, officers and directors
from and against any and all claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses of whatever kind or nature (including without limitation, reasonable attorneys and consultants fees, investigation and laboratory
fees, environmental studies required by Agent or any Lender in connection with the violation of Hazardous Material Laws), court costs and litigation expenses, arising out of or related to (i) the presence, use, disposal, release or threatened
release of any Hazardous Materials on, from or affecting any premises owned or occupied by any Borrower in violation of or the non-compliance with applicable Hazardous Material Laws, (ii) any personal 

  

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 injury (including wrongful death) or property damage (real or personal) arising out of or related to
such Hazardous Materials, (iii) any lawsuit or other proceeding brought or threatened, settlement reached or governmental order or decree relating to such Hazardous Materials, and/or (iv) complying or coming into compliance with all
Hazardous Material Laws (including the cost of any remediation or monitoring required in connection therewith) or any other Requirement of Law; provided, however, that Borrowers shall have no obligations under this Section 13.5(c) with respect
to claims, demands, penalties, fines, liabilities, settlements, damages, costs or expenses to the extent arising as a result of the gross negligence or willful misconduct of the Agent or such Lender, as the case may be. The obligations of Borrowers
under this Section 13.5(c) shall be in addition to any and all other obligations and liabilities Borrowers may have to Agent or any of the Lenders at common law or pursuant to any other agreement. 
 13.6 Notices. 
  

	 	(a)	Except as expressly provided otherwise in this Agreement (and except as provided in clause (b) below), all notices and other communications provided to any party hereto under
this Agreement or any other Loan Document shall be in writing and shall be given by personal delivery, by mail, by reputable overnight courier or by facsimile and addressed or delivered to it at its address set forth on Schedule 13.6 or at such
other address as may be designated by such party in a notice to the other parties that complies as to delivery with the terms of this Section 13.6. Any notice, if personally delivered or if mailed and properly addressed with postage prepaid and
sent by registered or certified mail, shall be deemed given when received or when delivery is refused; any notice, if given to a reputable overnight courier and properly addressed, shall be deemed given two (2) Business Days after the date on
which it was sent, unless it is actually received sooner by the named addressee; and any notice, if transmitted by facsimile, shall be deemed given when received. The Agent may, but, except as specifically provided herein, shall not be required to,
take any action on the basis of any notice given to it by telephone, but the giver of any such notice shall promptly confirm such notice in writing, by facsimile, and such notice will not be deemed to have been received until such confirmation is
deemed received in accordance with the provisions of this Section set forth above. If such telephonic notice conflicts with any such confirmation, the terms of such telephonic notice shall control. Any notice given by the Agent or any Lender to
Parent shall be deemed to be a notice to all Borrowers. 

  

	 	(b)	Notices and other communications provided to any the Agent and the Lenders party hereto under this Agreement or any other Loan Document may be delivered or furnished by electronic
communication (including email and Internet or intranet websites) pursuant to procedures approved 

  

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 by the Agent. The Agent or Parent may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications (including email and Internet or intranet websites) pursuant to procedures approved by it. Unless otherwise agreed to in a writing by and among the parties to a particular communication,
(i) notices and other communications sent to an email address shall be deemed received upon the sender’s receipt of an acknowledgment from the intended recipient (such as by the “return receipt requested” function, return email,
or other written acknowledgment) and (ii) notices and other communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its email address as described in the foregoing
clause (i) of notification that such notice or other communication is available and identifying the website address therefore. 
 13.7
Further Action. Each Borrower, from time to time, upon written request of Agent will make, execute, acknowledge and deliver or cause to be made, executed, acknowledged and delivered, all such further and additional instruments, and take all
such further action as may reasonably be required to carry out the intent and purpose of this Agreement or the Loan Documents, and to provide for Advances under and payment of the Notes, according to the intent and purpose herein and therein
expressed. 
 13.8 Successors and Assigns; Participations; Assignments. 
  

	 	(a)	This Agreement shall be binding upon and shall inure to the benefit of the Borrowers and the Lenders and their respective successors and assigns. 

  

	 	(b)	The foregoing shall not authorize any assignment by any Borrower of its rights or duties hereunder, and, except as otherwise provided herein, no such assignment shall be made (or be
effective) without the prior written approval of the Lenders. 

  

	 	(c)	No Lenders may at any time assign or grant participations in such Lender’s rights and obligations hereunder and under the other Loan Documents except (i) by way of
assignment to any Eligible Assignee in accordance with clause (d) of this Section, (ii) by way of a participation in accordance with the provisions of clause (e) of this Section or (iii) by way of a pledge or assignment of a
security interest subject to the restrictions of clause (f) of this Section (and any other attempted assignment or transfer by any Lender shall be deemed to be null and void). 

  

	 	(d)	Each assignment by a Lender of all or any portion of its rights and obligations hereunder and under the other Loan Documents, shall be subject to the following terms and conditions:

  

	 	(i)	each such assignment shall be made on a pro rata basis, and shall be in a minimum amount of the lesser of (x) Five Million Dollars 

  

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 ($5,000,000) or such lesser amount as the Agent shall agree and (y) the entire remaining amount of
assigning Lender’s aggregate interest in the Revolving Credit (and participations in any outstanding Letters of Credit); provided however that, after giving effect to such assignment, in no event shall the entire remaining amount (if any) of
assigning Lender’s aggregate interest in the Revolving Credit (and participations in any outstanding Letters of Credit) be less than Five Million Dollars ($5,000,000); and 
  

	 	(ii)	the parties to any assignment shall execute and deliver to Agent an Assignment Agreement substantially (as determined by Agent) in the form attached hereto as Exhibit D (with
appropriate insertions acceptable to Agent), together with a processing and recordation fee in the amount, if any, required as set forth in the Assignment Agreement (provided however that such Lender need not deliver an Assignment Agreement in
connection with assignments to such Lender’s Affiliates or to a Federal Reserve Bank). 

 Until the Assignment Agreement becomes effective
in accordance with its terms, and Agent has confirmed that the assignment satisfies the requirements of this Section 13.8, Borrowers and the Agent shall be entitled to continue to deal solely and directly with the assigning Lender in connection
with the interest so assigned. From and after the effective date of each Assignment Agreement that satisfies the requirements of this Section 13.8, the assignee thereunder shall be deemed to be a party to this Agreement, such assignee shall
have the rights and obligations of a Lender under this Agreement and the other Loan Documents (including without limitation the right to receive fees payable hereunder in respect of the period following such assignment) and the assigning Lender
shall relinquish its rights and be released from its obligations under this Agreement and the other Loan Documents. 
 Upon request,
Borrowers shall execute and deliver to the Agent, new Note(s) payable to the order of the assignee in an amount equal to the amount assigned to the assigning Lender pursuant to such Assignment Agreement, and with respect to the portion of the
Indebtedness retained by the assigning Lender, to the extent applicable, new Note(s) payable to the order of the assigning Lender in an amount equal to the amount retained by such Lender hereunder. The Agent, the Lenders and Borrowers acknowledge
and agree that any such new Note(s) shall be given in renewal and replacement of the Notes issued to the assigning lender prior to such assignment and shall not effect or constitute a novation or discharge of the Indebtedness evidenced by such prior
Note, and each such new Note may contain a provision confirming such agreement. 
  

	 	(e)	Borrowers and the Agent acknowledge that each of the Lenders may at any time and from time to time, subject to the terms and conditions hereof, grant participations in such
Lender’s rights and obligations hereunder (on a pro rata basis only) and under the other Loan Documents to any Person (other than a natural person or to a Borrower or any of a Borrower’s Affiliates or Subsidiaries); provided that any
participation permitted 

  

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 hereunder shall comply with all applicable laws and shall be subject to a participation agreement that
incorporates the following restrictions: 
  

	 	(i)	such Lender shall remain the holder of its Notes hereunder (if such Notes are issued), notwithstanding any such participation; 

  

	 	(ii)	a participant shall not reassign or transfer, or grant any sub-participations in its participation interest hereunder or any part thereof; and 

  

	 	(iii)	such Lender shall retain the sole right and responsibility to enforce the obligations of Borrowers relating to the Notes and the other Loan Documents, including, without limitation,
the right to proceed against any Guarantors, or cause the Agent to do so (subject to the terms and conditions hereof), and the right to approve any amendment, modification or waiver of any provision of this Agreement without the consent of the
participant (unless such participant is an Affiliate of such Lender), except for those matters covered by Section 13.10(a) through (e) hereof (provided that a participant may exercise approval rights over such matters only on an indirect
basis, acting through such Lender, and Borrowers, Agent and the other Lenders may continue to deal directly with such Lender in connection with such Lender’s rights and duties hereunder). Notwithstanding the foregoing, however, in the case of
any participation granted by any Lender hereunder, the participant shall not have any rights under this Agreement or any of the other Loan Documents against the Agent, any other Lender or any Borrower; provided, however that the participant may have
rights against such Lender in respect of such participation as may be set forth in the applicable participation agreement and all amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold such participation. Each such
participant shall be entitled to the benefits of Article 11 of this Agreement to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to clause (d) of this Section, provided that no participant shall be
entitled to receive any greater amount pursuant to such the provisions of Article 11 than the issuing Lender would have been entitled to receive in respect of the amount of the participation transferred by such issuing Lender to such participant had
no such transfer occurred and each such participant shall also be entitled to the benefits of Section 9.6 hereof as though it were a Lender, provided that such participant agrees to be subject to Section 10.3 hereof as though it were a
Lender. 

  

	 	(f)	Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including its Notes, if any) 

  

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 to secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledge or assignee for such Lender as a party hereto. 
  

	 	(g)	The Agent shall maintain at its principal office a copy of each Assignment Agreement delivered to it and a register (the “Register”) for the recordation of the names and
addresses of the Lenders, the Percentages of such Lenders and the principal amount of each type of Advance owing to each such Lender from time to time. The entries in the Register shall be conclusive evidence, absent manifest error, and Borrowers,
the Agent, and the Lenders may treat each Person whose name is recorded in the Register as the owner of the Advances recorded therein for all purposes of this Agreement. The Register shall be available for inspection by Parent or any Lender upon
reasonable notice to the Agent and a copy of such information shall be provided to any such party on their prior written request. The Agent shall give prompt written notice to Parent of the making of any entry in the Register or any change in such
entry. 

  

	 	(h)	Each Borrower authorizes each Lender to disclose to any prospective assignee or participant which has satisfied the requirements hereunder, any and all financial information in such
Lender’s possession concerning such Borrower which has been delivered to such Lender pursuant to this Agreement, provided that each such prospective assignee or participant shall execute a confidentiality agreement consistent with the terms of
Section 13.11 hereof or shall otherwise agree to be bound by the terms thereof. 

  

	 	(i)	Nothing in this Agreement, the Notes or the other Loan Documents, expressed or implied, is intended to or shall confer on any Person other than the respective parties hereto and
thereto and their successors and assignees and participants permitted hereunder and thereunder any benefit or any legal or equitable right, remedy or other claim under this Agreement, the Notes or the other Loan Documents. 

13.9 Counterparts. This Agreement may be executed in several counterparts, and each executed copy shall constitute an original instrument, but
such counterparts shall together constitute but one and the same instrument. 
 13.10 Amendment and Waiver. No amendment or waiver of
any provision of this Agreement or any other Loan Document, nor consent to any departure by any Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the Agent and the Majority Lenders (or by the Agent
at the written request of the Majority Lenders) or, if this Agreement expressly so requires with respect to the subject matter thereof, by all Lenders (and, with respect to any amendments to this Agreement or the other Loan Documents, by Borrowers
or the Guarantors that are signatories thereto), and then such waiver or consent 
  

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 shall be effective only in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and signed by the Lender or Lenders affected thereby, do any of the following: (a) increase any Lender’s commitments hereunder, (b) reduce the principal of,
or interest on, any outstanding Indebtedness or any Fees or other amounts payable hereunder, (c) postpone any date fixed for any payment of principal of, or interest on, any outstanding Indebtedness or any Fees or other amounts payable
hereunder, (d) except as expressly permitted hereunder, release all or substantially all of the collateral, or release any material guaranty provided by any Person in favor of Agent and the Lenders, provided however that Agent shall be
entitled, without notice to or any further action or consent of the Lenders, to release any collateral which a Borrower is permitted to sell, assign or otherwise transfer in compliance with this Agreement or the other Loan Documents or release any
guaranty to the extent expressly permitted in this Agreement or any of the other Loan Documents, (e) terminate or modify any indemnity provided to the Lenders hereunder or under the other Loan Documents, except as shall be otherwise expressly
provided in this Agreement or any other Loan Document, or (f) change the definitions of “Revolving Credit Percentage”, “Weighted Percentage”, “Interest Periods”, “Majority Lenders”, “Majority
Revolving Credit Lenders”, or this Section 13.10; provided, further, that notwithstanding the foregoing, the Revolving Credit Maturity Date may be postponed or extended only with the consent of all of the Revolving Credit
Lenders and provided further, however, that no amendment, waiver, or consent shall, unless in a writing signed by the Agent affect the rights or duties of the Agent under this Agreement or any other Loan Document. All references
in this Agreement to “Lenders” or “the Lenders” shall refer to all Lenders, unless expressly stated to refer to Majority Lenders (or the like). 
 The Agent shall, upon the written request of Parent, execute and deliver to Parent such documents as may be necessary to evidence the release of any Person from its obligations under the Loan Documents (including
without limitation a guaranty) if all of the Equity Interests of such Person that were held by a Borrower are sold or otherwise transferred to any transferee other than Parent or a Subsidiary of a Borrower as part of or in connection with any
disposition (whether by sale, by merger or by any other form of transaction) permitted in accordance with the terms of this Agreement; provided that (i) Agent shall not be required to execute any such release or subordination agreement
on terms which, in the Agent’s opinion, would expose the Agent to liability or create any obligation or entail any consequence other than the release of such Liens without recourse or warranty or such release shall not in any manner discharge,
affect or impair the Indebtedness. 
 13.11 Confidentiality. Each Lender agrees that it will not disclose without the prior consent of
Parent (other than to its employees, its Subsidiaries, another Lender, an Affiliate of a Lender or to its auditors or counsel) any information with respect to Borrowers which is furnished pursuant to this Agreement or any of the other Loan
Documents; provided that any Lender may disclose any such information (a) as has become generally available to the public or has been lawfully obtained by such Lender from any third party under no duty of confidentiality to Borrowers,
(b) as may be required or appropriate in any report, statement or testimony submitted to, or in respect to any inquiry, by, any municipal, state or federal regulatory body having or claiming to have jurisdiction over such Lender, including the
Board of Governors of the Federal Reserve System of the United States, the Office of the Comptroller of the Currency or the Federal Deposit Insurance Corporation or similar organizations (whether in the United 
  

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 States or elsewhere) or their successors, (c) as may be required or appropriate in respect to any summons or
subpoena or in connection with any litigation, (d) in order to comply with any law, order, regulation, ruling or other requirement of law applicable to such Lender, and (e) to any prospective assignee or participant in accordance with
Section 13.8(h) hereof. 
 13.12 Substitution of Lenders. If (a) any Lender has failed to fund its Revolving Credit
Percentage of any Revolving Credit Advance, or to fund a Revolving Credit Advance to repay any Reimbursement Obligations, (b) the obligation of any Lender to make Eurodollar-based Advances has been suspended pursuant to Section 11.3 or
11.4, (c) any Lender has demanded compensation under Section 11.5 or 11.6 (in each case, an “Affected Lender”), then the Agent or Parent shall have the right to make written demand on the Affected Lender (with a copy to Parent in
the case of a demand by the Agent or with a copy to the Agent in the case of a demand by Parent) to assign and the Affected Lender shall assign, to one or more financial institutions that comply with the provisions of Section 13.8 hereof (the
“Purchasing Lender” or “Purchasing Lenders”) to purchase the Advances of the Revolving Credit, of such Affected Lender (including, without limitation, its participating interests in outstanding Letters of Credit) and assume the
commitment of the Affected Lender to extend credit under the Revolving Credit (including without limitation its obligation to purchase participations in Letters of Credit) under this Agreement. The Affected Lender shall be obligated to sell its
Advances of the Revolving Credit, and assign its commitment to extend credit under the Revolving Credit (including without limitation its obligations to purchase participations in Letters of Credit) to such Purchasing Lender or Purchasing Lenders
within ten (10) days after receiving notice from Parent requiring it to do so, at an aggregate price equal to the outstanding principal amount thereof, plus unpaid interest accrued thereon up to but excluding the date of the sale. In connection
with any such sale, and as a condition thereof, Borrowers shall pay to the Affected Lender all fees accrued for its account hereunder to but excluding the date of such sale, plus, if demanded by the Affected Lender within ten (10) Business Days
after such sale, (i) the amount of any compensation which would be due to the Affected Lender under Section 11.1 if Borrowers had prepaid the outstanding Eurodollar-based Advances of the Affected Lender on the date of such sale and
(ii) any additional compensation accrued for its account under Sections 3.4(d), 11.5 and 11.6 to but excluding said date. Upon such sale, the Purchasing Lender or Purchasing Lenders shall assume the Affected Lender’s commitment, and the
Affected Lender shall be released from its obligations hereunder to a corresponding extent. If any Purchasing Lender is not already one of the Lenders, the Affected Lender, as assignor, such Purchasing Lender, as assignee, Borrowers and the Agent,
shall enter into an Assignment Agreement pursuant to Section 13.8 hereof, whereupon such Purchasing Lender shall be a Lender party to this Agreement, shall be deemed to be an assignee hereunder and shall have all the rights and obligations of a
Lender with a Revolving Credit Percentage equal to its ratable share of the then applicable Revolving Credit Aggregate Commitment of the Affected Lender. In connection with any assignment pursuant to this Section 13.12, Borrowers or the
Purchasing Lender shall pay to the Agent the administrative fee for processing such assignment referred to in Section 13.8. 
 13.13
Withholding Taxes. If any Lender is not a “united states person” within the meaning of Section 7701(a)(30) of the Internal Revenue Code, such Lender shall promptly (but in any event prior to the initial payment of interest
hereunder or prior to its accepting any assignment under Section 13.8 hereof, as applicable) deliver to the Agent two executed copies of (i) Internal Revenue Service Form W-8BEN or any successor form specifying the applicable tax

  

 82 

 treaty between the United States and the jurisdiction of such Lender’s domicile which provides for the exemption
from withholding on interest payments to such Lender, (ii) Internal Revenue Service Form W-8ECI or any successor form evidencing that the income to be received by such Lender hereunder is effectively connected with the conduct of a trade or
business in the United States or (iii) other evidence satisfactory to the Agent that such Lender is exempt from United States income tax withholding with respect to such income; provided, however, that such Lender shall not be required to
deliver to Agent the aforesaid forms or other evidence with respect to Advances to Borrowers, if such Lender has assigned its entire interest hereunder (including its Revolving Credit Commitment Amount, any outstanding Advances hereunder and
participations in Letters of Credit issued hereunder and any Notes issued to it by Borrowers), to an Affiliate which is incorporated under the laws of the United States or a state thereof, and so notifies the Agent. Such Lender shall amend or
supplement any such form or evidence as required to insure that it is accurate, complete and non-misleading at all times. Promptly upon notice from the Agent of any determination by the Internal Revenue Service that any payments previously made to
such Lender hereunder were subject to United States income tax withholding when made, such Lender shall pay to the Agent the excess of the aggregate amount required to be withheld from such payments over the aggregate amount actually withheld by the
Agent. In addition, from time to time upon the reasonable request and the sole expense of Borrowers, each Lender and the Agent shall (to the extent it is able to do so based upon applicable facts and circumstances), complete and provide Parent with
such forms, certificates or other documents as may be reasonably necessary to allow such Borrower, as applicable, to make any payment under this Agreement or the other Loan Documents without any withholding for or on the account of any tax under
Section 10.1(d) hereof (or with such withholding at a reduced rate), provided that the execution and delivery of such forms, certificates or other documents does not adversely affect or otherwise restrict the rights and benefits (including
without limitation economic benefits) available to such Lender or the Agent, as the case may be, under this Agreement or any of the other Loan Documents, or under or in connection with any transactions not related to the transactions contemplated
hereby. 
 13.14 Taxes and Fees. Should any tax (other than as a result of a Lender’s failure to comply with Section 13.13
or a tax based upon the net income or capitalization of any Lender or the Agent by any jurisdiction where a Lender or the Agent is or has been located), or recording or filing fee become payable in respect of this Agreement or any of the other Loan
Documents or any amendment, modification or supplement hereof or thereof, Borrowers agree to pay the same, together with any interest or penalties thereon arising from any Borrower’s actions or omissions, and agrees to hold the Agent and the
Lenders harmless with respect thereto. Notwithstanding the foregoing, nothing contained in this Section 13.14 shall affect or reduce the rights of any Lender or the Agent under Section 11.5 hereof. 
 13.15 [Intentionally Omitted]. 
 13.16 Patriot Act Notice. Pursuant to Section 326 of the USA Patriot Act, the Agent and the Lenders hereby notify Borrowers that if they or any of their Subsidiaries open an account, including any loan, deposit account, treasury
management account, or other extension of credit with Agent or any Lender, the Agent or the applicable Lender will request the applicable Person’s name, tax identification number, business address and other information necessary to identify
such Person (and may request such Person’s organizational documents or other identifying documents) to the extent necessary for the Agent and the applicable Lender to comply with the USA Patriot Act. 
  

 83 

 13.17 Complete Agreement; Conflicts. This Agreement, the Notes (if issued), any Requests for
Revolving Credit Advance, and the Loan Documents contain the entire agreement of the parties hereto, superseding all prior agreements, discussions and understandings relating to the subject matter hereof, and none of the parties shall be bound by
anything not expressed in writing. In the event of any conflict between the terms of this Agreement and the other Loan Documents, this Agreement shall govern. 
 13.18 Severability. In case any one or more of the obligations of Borrowers under this Agreement, the Notes or any of the other Loan Documents shall be invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining obligations of Borrowers shall not in any way be affected or impaired thereby, and such invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality or
enforceability of the obligations of any Borrower under this Agreement, the Notes or any of the other Loan Documents in any other jurisdiction. 
 13.19 Table of Contents and Headings; Section References. The table of contents and the headings of the various subdivisions hereof are for convenience of reference only and shall in no way modify or affect any of the terms or
provisions hereof and references herein to “sections,” “subsections,” “clauses,” “paragraphs,” “subparagraphs,” “exhibits” and “schedules” shall be to sections, subsections,
clauses, paragraphs, subparagraphs, exhibits and schedules, respectively, of this Agreement unless otherwise specifically provided herein or unless the context otherwise clearly indicates. 
 13.20 Construction of Certain Provisions. If any provision of this Agreement or any of the Loan Documents refers to any action to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person, whether or not expressly specified in such provision. 
 13.21 Independence of Covenants. Each covenant hereunder shall be given independent effect (subject to any exceptions stated in such covenant) so
that if a particular action or condition is not permitted by any such covenant (taking into account any such stated exception), the fact that it would be permitted by an exception to, or would be otherwise within the limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default. 
 13.22 Joint and Several Liability. 
  

	 	(a)	Each of the Borrowers acknowledges and agrees that it is the intent of the parties that each such Borrower be primarily liable for the obligations as a joint and several obligor. It
is the intention of the parties that with respect to liability of any Borrower hereunder arising solely by reason of its being jointly and severally liable for Advances and other extensions of credit taken by Borrower, the obligations of such
Borrower shall be absolute, unconditional and irrevocable irrespective of: 

  

	 	(i)	any lack of validity, legality or enforceability of this Agreement or any Note as to any Borrower, as the case may be; 

  

 84 

	 	(ii)	the failure of any Lender or any holder of any Note: 

  

	 	(A)	to enforce any right or remedy against any Borrower, as the case may be, or any other Person (including any Guarantor) under the provisions of this Agreement, such Note, or
otherwise, or 

  

	 	(B)	to exercise any right or remedy against any guarantor of, or collateral securing, any obligations; 

  

	 	(iii)	any change in the time, manner or place of payment of, or in any other term of, all or any of the Indebtedness, or any other extension, compromise or renewal of any Indebtedness;

  

	 	(iv)	any reduction, limitation, impairment or termination of any Indebtedness with respect to any Borrower, as the case may be, for any reason, including any claim of waiver, release,
surrender, alteration or compromise, and shall not be subject to (and each of the Borrowers hereby waives any right to or claim of) any defense (other than the defense of payment in full of the Indebtedness) or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Indebtedness with respect to any Borrower, as the case may be;

  

	 	(v)	any addition, exchange, release, surrender or nonperfection of any collateral, or any amendment to or waiver or release or addition of, or consent to departure from, any guaranty,
held by any Lender or any holder of the Notes securing any of the Indebtedness; or 

  

	 	(vi)	any other circumstance which might otherwise constitute a defense (other than the defense of payment in full of the Indebtedness) available to, or a legal or equitable discharge of,
any Borrower, as the case may be, any surety or any guarantor. 

  

	 	(b)	Each of the Borrowers agrees that its joint and several liability hereunder shall continue to be effective or be reinstated, as the case may be, if at any time any payment (in whole
or in part) of any of the Indebtedness is rescinded or must be restored by any Lender or any holder of any Note, upon the insolvency, bankruptcy or reorganization of any Borrower, as the case may be, as though such payment had not been made;

  

	 	(c)	Each of the Borrowers hereby expressly waives: (i) notice of the Lenders’ acceptance of this Agreement; (ii) notice of the existence or creation or

  

 85 

 non payment of all or any of the Indebtedness other than notices expressly provided for in this
Agreement; (iii) presentment, demand, notice of dishonor, protest, and all other notices whatsoever other than notices expressly provided for in this Agreement; (iv) any claim or defense based on an election of remedies; and (v) all
diligence in collection or protection of or realization upon the Indebtedness or any part thereof, any obligation hereunder, or any security for or guaranty of any of the foregoing. 
  

	 	(d)	No delay on any of the Lenders part in the exercise of any right or remedy shall operate as a waiver thereof, and no single or partial exercise by any of the Lenders of any right or
remedy shall preclude other or further exercise thereof or the exercise of any other right or remedy. No action of any of the Lenders permitted hereunder shall in any way affect or impair any such Lenders’ rights or any Borrower’s
Indebtedness under this Agreement. 

  

	 	(e)	Each of the Borrowers hereby represents and warrants to each of the Lenders that it now has and will continue to have independent means of obtaining information concerning the
Borrowers’ affairs, financial condition and business. Lenders shall not have any duty or responsibility to provide any Borrower with any credit or other information concerning such Borrower’s affairs, financial condition or business which
may come into the Lenders’ possession. 

  

	 	(f)	Each of the Borrowers represents and warrants (i) that the business operations of the Borrowers are interrelated and that the business operations of the Borrowers complement
one another, and such entities have a common business purpose, and (ii) that, to permit their uninterrupted and continuous operations, such entities now require and will from time to time hereafter require funds and credit accommodations for
general business purposes and that (iii) the proceeds of advances under the Revolving Credit and the other credit facilities extended hereunder will directly or indirectly benefit the Borrowers hereunder, severally and jointly, regardless of
which Borrower receives part or all of the proceeds of such Advances. 

  

	 	(g)	Notwithstanding anything to the contrary contained herein, it is the intention of the Borrowers, Agent and the Lenders that the amount of the respective Borrowers’ obligations
hereunder shall be in, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of applicable law governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution,
insolvency, fraudulent transfers or conveyances or other similar laws (collectively, “Applicable Insolvency Laws”). To that end, but only in the event and to the extent that the Borrowers’ respective obligations hereunder or any
payment made pursuant thereto would, but for the operation of the foregoing proviso, be subject to avoidance or recovery 

  

 86 

 under Applicable Insolvency Laws, the amount of the Borrowers’ respective obligations hereunder
shall be limited to the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render the Borrower’s respective obligations hereunder unenforceable or avoidable or subject to recovery under Applicable
Insolvency Laws. To the extent any payment actually made hereunder exceeds the limitation contained in this Section 13.22(g), then the amount of such excess shall, from and after the time of payment by the Borrowers (or any of them), be
reimbursed by the Lenders upon demand by such Borrowers. The foregoing proviso is intended solely to preserve the rights of the Agent and the Lenders hereunder against the Borrowers to the maximum extent permitted by Applicable Insolvency Laws and
neither any Borrower nor any Guarantor nor any other Person shall have any right or claim under this Section 13.22(g) that would not otherwise be available under Applicable Insolvency Laws. 
 13.23 Advertisements. The Agent and the Lenders may disclose the names of Borrowers and the existence of the Indebtedness in general
advertisements and trade publications. 
 13.24 Reliance on and Survival of Various Provisions. All terms, covenants, agreements,
representations and warranties of Borrowers to any of the Loan Documents made herein or in any of the Loan Documents or in any certificate, report, financial statement or other document furnished by or on behalf of any Borrower in connection with
this Agreement or any of the Loan Documents shall be deemed to have been relied upon by the Lenders, notwithstanding any investigation heretofore or hereafter made by any Lender or on such Lender’s behalf, and those covenants and agreements of
Borrowers set forth in Section 13.5 hereof (together with any other indemnities of Borrowers contained elsewhere in this Agreement or in any of the other Loan Documents) and of Lenders set forth in Section 12.7 hereof shall survive the
repayment in full of the Indebtedness and the termination of any commitment to extend credit. 
 [Signatures Follow On Succeeding Page]

  

 87 

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

							
	 COMERICA BANK,
 as Administrative
Agent,
	  	 MICROSEMI CORPRORATION,
 a Delaware
corporation

				
	By:	 	 /s/ Jennifer S. Seto
	  	By:	 	 /s/ David R. Sonksen

	Its:	 	Vice President	  	Its:	 	Chief Financial Officer, Secretary & Treasurer
			
		 		  	 MICROSEMI CORP. – POWER
 PRODUCTS GROUP,
a Delaware corporation

				
		 		  	By:	 	 /s/ David R. Sonksen

		 		  	Its:	 	Chief Financial Officer, Secretary & Treasurer
			
		 		  	 MICROSEMI CORP. – INTEGRATED
 PRODUCTS,
a Delaware corporation

				
		 		  	By:	 	 /s/ David R. Sonksen

		 		  	Its:	 	Chief Financial Officer, Secretary & Treasurer
			
		 		  	 MICROSEMI CORP. - MASSACHUSETTS,
 a Delaware
corporation

				
		 		  	By:	 	 /s/ David R. Sonksen

		 		  	Its:	 	Chief Financial Officer, Secretary & Treasurer

 [Signature Page to Revolving Credit Agreement] 
 [Signatures Continued Next Page] 
  

 88 

			
	 MICROSEMI CORP. - SCOTTSDALE,
 an Arizona
corporation

		
	By:	 	 /s/ David R. Sonksen

	Its:	 	Chief Financial Officer, Secretary & Treasurer

  

			
	 COMERICA BANK,
 as a Lender and as Issuing
Lender

		
	By:	 	 /s/ Jennifer S. Seto

	Its:	 	Vice President

 [Signature Page to Revolving Credit Agreement] 
  

 89 

 Schedule 1.1 
 Applicable Margin Grid  
 Revolving Credit Facility 
 (basis points per annum) 
  

									
	 Basis for Pricing
	  	 Level I
	  	 Level II
	  	 Level III
	  	 Level IV

	Funded Debt/EBITDA*	  	< 0.50 to 1.00	  	 3 0.50 to 1.00
 but < 1.00 to 1.00
	  	 3 1.00 to 1.00
 but < 1.50 to 1.00
	  	 3 1.50 to 1.00
 but £ 2.00 to 1.00

	Revolving Credit Eurodollar Margin	  	37.5	  	62.5	  	87.5	  	112.5
	Revolving Credit Prime-Based Rate Margin	  	(100)	  	(100)	  	(100)	  	(100)
	Revolving Credit Commitment Fee	  	20	  	20	  	20	  	20
	Letter of Credit Fees (exclusive of facing fees)	  	35	  	50	  	75	  	100

	*	Definitions as set forth in the Credit Agreement. 

	**	Level I pricing shall be in effect until the delivery of the financial statements for the quarter ending December 31, 2006, after which time the pricing grid shall govern.

  

 90 

 Schedule 1.2 
 Lender Commitment Percentages  
 Revolving Credit Facility 
  

									
	 Facility
	  	 Comerica Bank
	  	 [Lender 2]
	  	 [Lender 3]
	  	 TOTAL

	 Revolving Credit
	  	100%	  		  		  	100%

  

 91 

 Schedules 
 Schedule 5.2 – Jurisdictions 
 Schedule 6.1 - Corporate Authority 
 Schedule 6.3(b) – Real Property 
 Schedule 6.4 – Taxes 

Schedule 6.7 - Compliance with Laws 
 Schedule 6.9 - Litigation

 Schedule 6.10 - Consents, Approvals and Filings, Etc. 
 Schedule 6.13 – ERISA 
 Schedule 6.16 - Subsidiaries 
 Schedule 6.18 – Material Contracts 
 Schedule 6.19 – Tradenames 
 Schedule 6.23 – Employee Matters 
 Schedule 8.1 – Existing Debt 
 Schedule 8.2 – Existing Liens 
 Schedule 8.7 – Existing
Investments 
 Schedule 8.8 - Transactions with Affiliates 
 Schedule 13.6 – Addresses 
  

 92 

 Schedule 5.2 
 JURISDICTIONS 
  

					
	 Entity
	    	 Jurisdiction of
 Incorporation
	    	 Foreign Qualifications

	Microsemi Corporation	    	Delaware	    	California, Texas
	Microsemi Corp. – Power Products Group	    	Delaware	    	Oregon, Colorado
	Microsemi Corp. – Integrated Products	    	Delaware	    	California, Florida, Texas
	Microsemi Corp. – Massachusetts	    	Delaware	    	Massachusetts, California, [Ohio]
	Microsemi Corp. – Scottsdale	    	Arizona	    	None

  

 93 

 Schedule 6.1 
 CORPORATE AUTHORITY 
 See Schedule 5.2 
  

 94 

 Schedule 6.3(b) 
 REAL PROPERTY 
 Microsemi Corporation 
 Our headquarters are located in a rented building complex in Irvine, California. This complex contains general office and engineering space. 

Microsemi Corp. – Massachusetts 
 We lease one
facility in Lawrence, Massachusetts and another facility in Lowell, Massachusetts. 
 Microsemi Corp. – Scottsdale 
 We lease one facility in Scottsdale, Arizona. 
 Microsemi
Corp. – Integrated Products 
 We own two facilities in Garden Grove, California. 
 Microsemi Corp. – Power Products Group 
 We lease
three facilities in Bend, Oregon. 
  

 95 

 Schedule 6.4 
 TAXES 
 [NONE.] 
  

 96 

 Schedule 6.7 
 COMPLIANCE WITH LAWS 
 [NONE.] 
  

 97 

 Schedule 6.9 
 LITIGATION 
 The Company is involved in various pending litigation matters arising out of the
normal conduct of our business, including without limitation litigation relating to commercial transactions and contracts, and environmental matters. In the opinion of management, the final outcome of these matters, if it were adverse, will not have
a material adverse effect on our financial position, results of operations or cash flows. 
 In Broomfield, Colorado, the owner of a property
located adjacent to a manufacturing facility owned by Microsemi Corp. – Colorado (“the Subsidiary”) had notified the Subsidiary and other parties of a claim that contaminants migrated to his property, thereby diminishing its value. In
August 1995, the subsidiary, together with Coors Porcelain Company, FMC Corporation and Siemens Microelectronics, Inc. (former owners of the manufacturing facility), agreed to settle the claim and to indemnify the owner of the adjacent property for
remediation costs. Although TCE and other contaminants previously used by former owners at the facility are present in soil and groundwater on the subsidiary’s property, the Company vigorously contests any assertion that the subsidiary caused
the contamination. In November 1998, the Company signed an agreement with the three former owners of this facility whereby they have 1) reimbursed the Company for $530,000 of past costs, 2) assumed responsibility for 90% of all future clean-up
costs, and 3) promised to indemnify and protect the Company against any and all third-party claims relating to the contamination of the facility. An Integrated Corrective Action Plan was submitted to the State of Colorado. Sampling and management
plans were prepared for the Colorado Department of Public Health & Environment. State and local agencies in Colorado are reviewing current data and considering study and cleanup options. The most recent forecast estimated that the total
project cost, up to the year 2020, would be approximately $5,300,000; accordingly, the Company recorded a one-time charge of $530,000 for this project in fiscal year 2003. There has not been any significant development since September 28, 2003.

  

 98 

 Schedule 6.10 
 CONSENTS, APPROVALS AND FILINGS, ETC 
 [NONE.] 
  

 99 

 Schedule 6.13 
 ERISA 
 [NONE.] 
  

 100 

 Schedule 6.16 
 SUBSIDIARIES 
  

					
	 Name
	  	State Inc.	  	Ownership %
	 Microsemi Corp. – Santa Ana
	  	Delaware	  	100
	 Microsemi Corp. – Scottsdale
	  	Arizona	  	100
	 Microsemi Corp. – Colorado
	  	Colorado	  	100
	 Microsemi Corp. – Massachusetts
	  	Delaware	  	100
	 Microsemi Corp. – Integrated Products
	  	Delaware	  	100
	 Microsemi Corp. – Power Products Group
	  	Delaware	  	100
	 Microsemi Corp. - RF Power Products
	  	Delaware	  	100
	 Microsemi Corp. – Montgomeryville
	  	Delaware	  	100
	 Microsemi Corp. - Advanced Technology Center
	  	Delaware	  	100
	 Micro WaveSys, Inc.
	  	California	  	100
	 Microsemi Real Estate, Inc.
	  	California	  	100
	 Microsemi RF Products, Inc.
	  	Delaware	  	100
	 Microsemi Power Module Products, SAS
	  	Foreign	  	100
	 Micro (Bermuda), Ltd.
	  	Foreign	  	100
	 Microsemi Comercial Offshore de Macau Limitada
	  	Foreign	  	100
	 Microsemi Corp. – International
	  	Foreign	  	100
	 Shangai Microsemi Semiconductor Co. Ltd.
	  	Foreign	  	60

  

 101 

 Schedule 6.18 
 MATERIAL CONTRACTS 
 Incorporated by reference to the exhibits filed by the Company with the SEC, as follows:

  

			
	 Sequential
 Exhibit
 Number
	  	 Description

	2.6	  	Agreement and Plan of Merger dated as of November 2, 2005, by and among the Company, APT Acquisition Corp, a Delaware corporation that is a wholly owned subsidiary of the Company and
Advanced Power Technology, Inc, and Advanced Power Technology, Inc., a Delaware corporation, including the following exhibits:
		
		  	                                       
 Form of Voting Agreement
		  	                                       
 Form of Non-Competition Agreement
		  	                                       
 Form of Lock-up Agreement
		  	                                       
 Form of Option Assumption Agreement
		
		  	Exhibits omitted but to be made available to the SEC at the SEC’s request:.
		
		  	                                       
 Form of Employment Agreement
		  	                                       
 Form of Certificate of Merger
		  	                                       
 List of Parties to Ancillary Agreements (18)
		
	3	  	Bylaws of the Company* (1)
		
	3.1	  	Amended and Restated Certificate of Incorporation of the Company effective August 9, 2001* (6)
		
	3.2	  	Certificate of Designation of Series A Junior Participating Preferred Stock (4)
		
	3.3	  	Certificate of Amendment to Certificate of Designation of Series A Junior Participating Preferred Stock (20)
		
	4.1	  	Specimen certificate for the shares of common stock of Microsemi (20)
		
	4.2	  	Rights Agreement dated December 22, 2000 between the Company and Mellon Investor Services, LLC, as Rights Agent, and the exhibits thereto (4)
		
	4.2.1	  	Amendment No. One dated December 16, 2005 to Rights Agreement dated December 22, 2000 between the Company and Mellon Investor Services, LLC, as Rights Agent, and the exhibits thereto
(20)
		
	4.4	  	Advanced Power Technology, Inc. Stock Option Plan dated December 31, 1995, as amended by Amendments Nos. 1 and 2. (27)
		
	4.4.1	  	Amendments Nos. 3, 4 and 5 to Stock Option Plan dated December 31, 1995, as amended. (28)
		
	4.4.2	  	Form of Non-Qualified Stock Option Letter Agreement under the Advanced Power Technology, Inc. Stock Option Plan dated December 31, 1995. (29)
		
	4.4.3	  	Form of Incentive Stock Option Letter Agreement under the Advanced Power Technology, Inc. Stock Option Plan dated December 31, 1995. (29)

  

 102 

			
	4.4.4	  	Form of Non-Qualified Option Letter Agreement for Members of the Board of Directors under the Advanced Power Technology, Inc. Stock Option Plan dated December 31, 1995.
(29)
		
	4.5	  	Advanced Power Technology, Inc. Equity Incentive Plan dated May 3, 2005. (30)
		
	4.5.1	  	Form of Incentive Stock Option Letter Agreement under the Advanced Power Technology, Inc. Equity Incentive Plan dated May 3, 2005. (29)
		
	4.5.2	  	Form of Non-Qualified Stock Option Letter Agreement for Members of the Board of Directors under the Advanced Power Technology, Inc. Equity Incentive Plan dated May 3, 2005. (29)
		
	4.6	  	Form of Option Assumption Agreement, entered into between the Registrant and each of the holders of Advanced Power Technology, Inc. options assumed by Registrant (29)
		
	10.13	  	The Company’s 1987 Stock Plan, and amendments thereto* (7)
		
	10.13.1	  	Adjustment of 1987 Plan for February 2004 Stock Split* (12)
		
	10.78	  	Motorola-Microsemi PowerMite(R) Technology Agreement (20)
		
	10.84	  	Supplemental Executive Retirement Plan* (2)
		
	10.85	  	Credit Agreement, dated as of April 2, 1999, among the Company, the Lenders from time to time party thereto and Canadian Imperial Bank of Commerce, as Agent (3)
		
	10.85.1	  	First Amendment dated as of June 25, 1999 to Credit Agreement dated April 2, 1999 (8)
		
	10.85.2	  	Second Amendment dated as of February 14, 2000 to Credit Agreement dated April 2, 1999 (8)
		
	10.85.3	  	Third Amendment dated as of April 2, 2001 to Credit Agreement dated April 2, 1999 (8)
		
	10.85.4	  	Fourth Amendment dated as of May 25, 2002 to Credit Agreement dated April 2, 1999 (8)
		
	10.85.5	  	Fifth Amendment dated as of December 5, 2002 to Credit Agreement dated April 2, 1999 (11)
		
	10.85.6	  	Sixth Amendment dated December 10, 2003 to Credit Agreement dated April 2, 1999 (12)
		
	10.85.7	  	Seventh Amendment dated March 31, 2004 to Credit Agreement dated April 2, 1999 (13)
		
	10.85.8	  	Eighth Amendment dated March 31, 2004 to Credit Agreement dated April 2, 1999 (13)
		
	10.85.9	  	Ninth Amendment dated March 29, 2005 to Credit Agreement dated April 2, 1999 (15)

  

 103 

			
	10.85.10	  	Tenth Amendment dated as of June 1, 2006 to Credit Agreement dated as of April 2, 1999 (23)
		
	10.85.11	  	Eleventh Amendment dated as of June 28, 2006 to Credit Agreement dated as of April 2, 1999. (23)
		
	10.85.12	  	Twelfth Amendment dated as of July 14, 2006 to Credit Agreement dated as of April 2, 1999. (23)
		
	10.86	  	Transition and Consulting Agreement dated January 24, 2001 between Mr. Philip Frey, Jr. and the Company* (5)
		
	10.86.1	  	Agreement dated April 1, 2002, executed May 13, 2002, between Philip Frey, Jr. and the Company, amending the Transition and Consulting Agreement dated January 24, 2001* (9)
		
	10.87	  	Agreements dated January 12, 2001 between James J. Peterson and the Company* (5)
		
	10.88	  	Agreement dated January 12, 2001 between David R. Sonksen and the Company* (5)
		
	10.91.1	  	Form of Stock Option Exchange Grant and Replacement Option Agreement*(16)
		
	10.91	  	Board Member Retirement Process * (10)
		
	10.92	  	Indemnification Agreement between the Company and each of the following persons:* (11)

  

			
	 INDEMNITEE:
	  	Date:
	 Thomas R. Anderson
	  	5/05/03
	 Martin H. Jurick
	  	5/05/03
	 Dennis R. Leibel
	  	5/05/03
	 James J. Peterson
	  	5/05/03
	 Nick E. Yocca
	  	5/05/03
	 William E. Bendush
	  	5/05/03
	 William L. Healey
	  	5/05/03
	 Harold A. Blomquist
	  	6/03/03
	 Philip Frey, Jr.
	  	5/05/03
	 Robert B. Phinizy
	  	5/05/03
	 Paul R. Bibeau
	  	6/03/03
	 Ralph Brandi
	  	5/05/03
	 James H. Gentile
	  	5/12/03
	 John M. Holtrust
	  	5/29/03
	 John J. Petersen
	  	5/21/03
	 David R. Sonksen
	  	5/05/03
	 H.K. Desai
	  	5/05/03
	 Paul F. Folino
	  	7/20/04
	 Steven G. Litchfield
	  	2/25/04

  

 104 

			
	10.93	  	Form of Executive Retention Agreement* (14)

  

					
	 Date
	  	 Executive
	  	 Potential Payout as a Multiple of Pay

	10/15/04	  	Ralph Brandi	  	Two (2)
	10/15/04	  	John Holtrust	  	One (1)
	10/15/04	  	James Gentile	  	One (1)
	10/15/04	  	Steven Litchfield	  	One (1)

  

			
	10.94	  	Form of Employee Stock Option Agreement prior to August 17, 2004* (14)
		
	10.95	  	Form of Employee Stock Option Agreement from and after August 17, 2004* (14)
		
	10.96	  	Form of Non-Employee Stock Option Agreement* (14)
		
	10.97	  	Description of Cash Bonus Plan* (14)
		
	10.98	  	Supplemental Medical Plan (14)
		
	10.99	  	Form of Employee Stock Agreement from and after September 26, 2005* (19)
		
	10.100	  	Form of Amendment of Eligible Unvested Options* (17)
		
	10.101	  	Form of Voting Agreement between the Company and each of Patrick P.H. Sireta, Russell Crecraft, Dah Weh Tsang, Greg Haugen and Thomas Loder (20)
		
	10.102	  	Form of Lock-up Agreement between the Company and each of Patrick P.H. Sireta, Russell Crecraft, Dah Weh Tsang, Greg Haugen and Thomas Loder (20)
		
	10.103	  	Non-Competition Agreement between the Company and Patrick P.H. Sireta (20)
		
	10.104	  	Settlement Agreement dated July 8, 1998 by and between Microsemi Corp. – Colorado, FMC Corporation, Siemens Microelectronics, Inc. and Coors Porcelain Company (21)
		
	10.109	  	Form of Notice of Stock Option Grant and Employee Stock Option Agreement from and after February 22, 2006 (22)
		
	10.109.1	  	Form of Notice of Stock Option Grant and Employee Stock Option Agreement from and after March 28, 2006 (24)
		
	10.110	  	Form of Notice of Stock Option Grant and Non-Employee Stock Option Agreement from and after February 22, 2006 (22)
		
	10.111	  	Directors’ Compensation Policy prior to February 22, 2006 (25)
		
	10.111.1	  	Directors’ Compensation Policy from and after February 22, 2006 (25)
		
	10.112	  	Form of Voting Agreement (26)

	(1)	Filed in Registration Statement (No. 33-3845) and incorporated herein by this reference. 

	(2)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on February 9, 1998 with the Commission for the fiscal quarter
ended December 28, 1997. 

  

 105 

	(3)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on August 16, 1999 with the Commission for the fiscal quarter
ended July 4, 1999. 

	(4)	Incorporated by reference to the indicated Exhibit to the Company’s Registration Statement of Form 8-A12G as filed December 29, 2000 

	(5)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on February 13, 2001 with the Commission for the fiscal quarter
ended December 31, 2000. 

	(6)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on August 29, 2001. 

	(7)	Incorporated by reference to the indicated Exhibit to the Company’s Annual Report on Form 10-K filed on December 24, 2001 with the Commission for the fiscal year ended
September 30, 2001. 

	(8)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on August 12, 2002 with the Commission for the fiscal quarter
ended June 30, 2002. 

	(9)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on November 4, 2002. 

	(10)	Incorporated by reference to the indicated Exhibit to the Company’s Annual Report on Form 10-K filed on December 19, 2002 with the Commission for the fiscal year ended
September 29, 2002. 

	(11)	Incorporated by reference to the indicated Exhibit to the Company’s Annual Report on Form 10-K filed on December 19, 2003 with the Commission for the fiscal year ended
September 28, 2003. 

	(12)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on February 10, 2004 with the Commission for the fiscal quarter
ended December 28, 2003. 

	(13)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on March 28, 2004. 

	(14)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on September 24, 2004 

	(15)	Incorporated by reference to the indicated Exhibit to the Company’s Quarterly Report on Form 10-Q as filed on August 12, 2005 with the Commission for the fiscal quarter
ended July 3, 2005. 

	(16)	Incorporated by reference to Exhibit 99(D)(2) to the Company’s Tender Offer Statement on Schedule TO filed on November 1, 2002. 

	(17)	Incorporated by reference to Exhibit 99(D)(2) to the Company’s Tender Offer Statement on Schedule TO filed on August 17, 2005. 

	(18)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on November 7, 2005. 

  

 106 

	(19)	Incorporated by reference to the indicated Exhibit to the Company’s Current Report on Form 8-K as filed on September 28, 2005. 

	(20)	Incorporated by reference to the indicated Exhibit to the Registrant’s Post-Effective Amendment No. 1 to Form S-4 (Reg. No. 333-130655) as filed on April 27,
2006 

	(21)	Incorporated by reference to the indicated Exhibit to the Registrant’s Pre-Effective Amendment No. 2 to Form S-4 (Reg. No. 333-130655) as filed on March 3, 2006.

	(22)	Incorporated by reference to the indicated Exhibit to the Registrant’s Current Report on Form 8-K as filed on February 28, 2006. 

	(23)	Incorporated by reference to the indicated Exhibit to the Registrant’s Quarterly Report on Form 10-Q as filed on August 11, 2006. 

	(24)	Incorporated by reference to the indicated Exhibit to the Registrant’s Current Report on Form 8-K filed on April 3, 2006. 

	(25)	Incorporated by reference to the indicated Exhibit to the Registrant’s Current Report on Form 8-K as filed on October 5, 2006 

	(26)	Incorporated by reference to the indicated Exhibit to the Registrant’s Current Report on Form 8-K as filed on October 30, 2006. 

	(27)	Incorporated by reference to the indicated Exhibit to the Registrant’s Annual Report on Form 10-K as filed on December 16, 2005. 

	(28)	Previously filed by Advanced Power Technology, Inc. (File No. 1-16047) on June 2, 2000 as Exhibit 10.1 to its Registration Statement on Form S-1 (Registration
No.333-38418) and incorporated herein by reference. 

	(29)	Previously filed by Advanced Power Technology, Inc. (File No. 1-16047) on March 8, 2005 as Exhibit 10.21 to its Annual Report on Form 10-K and incorporated herein by
reference. 

	(30)	Incorporated by reference to the indicated Exhibit to the Registrant’s Post-Effective Amendment No. 2 to Form S- on Form S-8 as filed on July 10, 2006.

  

 107 

 Schedule 6.19 
 TRADENAMES 
  

			
	 Name
	  	 Other

	Microsemi Corporation	  	Microsemi
	Irvine, CA	  	Microsemiconductor, Inc.
		
	Microsemi Corp. – Santa Ana	  	Microsemi Santa Ana
	Santa Ana, CA	  	MSC Microtech
		
	Microsemi (H.K.) Ltd.	  	Microsemi Hong Kong
	Shatin, Hong Kong	  	Hong Kong
		
	Micro (Bermuda) Ltd.	  	Microsemi Ireland
	Ennis, County Clare, Ireland	  	Micro Ennis
		
	Microsemi Corp. – Scottsdale	  	Microsemi
	Scottsdale, AZ	  	Microsemi Scottsdale
		
	Microsemi Corp. – Colorado	  	Microsemi Colorado
	Broomfield, CO	  	
		
	Micro Quality Semiconductor, Inc.	  	MQSI
	Garland, TX (dissolved)	  	Microsemi Texas
		  	Micro Texas
		
	Microsemi Corp. – Integrated Products	  	Linfinity
	Garden Grove, CA	  	Linfinity Microelectronics, Inc
		  	MicroWaveSys
		  	WaveSys
		  	MicroPower Products
		
	Microsemi Corp. – Massachusetts	  	MMP
	Location: Lowell, MA	  	Micro Lowell
		  	BKC
		  	BKC Semiconductors
		  	Microsemi Watertown
		  	Sertech
		  	USPD
		
	Location: Lawrence, MA	  	Micro NES
		  	NES
		  	New England Semi
		  	Lawrence
		  	Micro CDI
		  	CDI
		  	Compensated Devices

  

 108 

 Schedule 6.23 
 EMPLOYEE MATTERS 
 OCSC Case No. 05CC07426. Former employee filed this employment action
alleging that he was terminated in 2005 in retaliation for audit reports he had prepared in 2003 and earlier. In July 2006, the Superior Court granted the Company’s motion for summary judgment and entered an order dismissing his complaint
against the Company in its entirety. Former complainant has notified the Company, through counsel, that he intends to pursue an appeal of the summary judgment against him. The Company intends to continue vigorously pursuing its position in any
appeal in this matter. 
  

 109 

 Schedule 8.1 
 EXISTING DEBT 
  

				
	 Capitalized lease (facility in Santa Ana and truck in Scottsdale)
	  	$	3,224,000
	 Supplemental Executive Retirement Program
	  	$	336,000
	 Comerica revolving line of credit, which expires in March 2008 ($30,000,000 limit)
	  	$	400,000

 INTER-COMPANY INDEBTEDNESS OF PARENT AND SUBSIDIARIES (IN THOUSANDS) (AS OF OCTOBER 1, 2006) 
  

				
	 Name
	  	O/S Debt (KS)	 
	 Microsemi – Santa Ana
	  	(19,559	)
	 Microsemi (H.K.) Ltd.
	  	(7,804	)
	 Micro (Bermuda) Ltd.
	  	(10,000	)
	 Microsemi – Scottsdale
	  	(203,906	)
	 Microsemi – Colorado
	  	18,935	 
	 Micro Quality Semiconductor, Inc.*
	  	10,263	 
	 Microsemi – Integrated Products
	  	59,182	 
	 Microsemi – Massachusetts
	  	(22,241	)
	 Microsemi – Power Products Group
	  	(14,626	)
	 Shanghai Microsemi Semi Co.
	  	145	 

	*	Dissolved 

  

 110 

 Schedule 8.2 
 EXISTING LIENS 
 Comerica’s security interest in substantially all of the assets of the Company in
connection with its $30,000,000 credit facility. 
  

 111 

 Schedule 8.7 
 EXISTING INVESTMENTS 
 Schedule 6.16 of this Agreement is incorporated herein by reference. 
  

 112 

 Schedule 8.8 
 TRANSACTIONS WITH AFFILIATES 
 [NONE.] 
  

 113 

 Schedule 13.6 
 ADDRESSES 
  

			
	Microsemi Corporation	 	Microsemi Corp. – Santa Ana
	2381 Morse Avenue	 	2830 S. Fairview St.
	Irvine, CA 92614	 	Santa Ana, CA 92704
		
	Microsemi Corp. – Scottsdale	 	Microsemi Corp.- Colorado
	8700 E. Thomas Road	 	800 Hoyt Street
	Scottsdale, AZ 85251-5073	 	Broomfield, CO 80020
		
	Microsemi Corp. - Massachusetts	 	MicroWaveSys, Inc.
	6 Lake Street	 	6033 W. Century Blvd. Ste. 1200
	Lawrence, MA 01841	 	Los Angeles, CA 90045
		
	Microsemi Corp. – Integrated Products	 	Microsemi Corp. - Massachusetts
	11861 Western Avenue	 	75 Technology Drive
	Garden Grove, CA 92841	 	Lowell, MA 01851
		
	Microsemi Corp. – Power Products Group	 	Microsemi Corp. – RF Power Products
	405 SW Columbia Street	 	3000 Oakmead Village Drive
	Bend. OR 97702	 	Santa Clara, CA 95051
		
	Microsemi Corp. – Montgomeryville	 	Microsemi Corp.–Advanced Technology Ctr
	140 Commerce Drive	 	1855 SW 57th Court
	Montgomeryville, PA 18936	 	Boulder, CO 80301
		
	Microsemi Power Module Products SAS	 	Micro (Bermuda) Ltd.
	Chemin De Magret	 	Gort Road, Industrial Estates
	33700 Merignac	 	Ennis, County Clare, Ireland
	France	 	
		
	Microsemi (H.K.) Ltd.	 	Shanghai Microsemi Semiconductor Co. Ltd.
	5F-7F, Meeco Ind. Bldg	 	203 Shan Nan Road
	53-55 Au Pui Wan St., Fotan	 	Shanghai, P.R.C.
	Xin Zhuang Ind.	 	
	Shatin, N.T. Hong Kong	 	
		
	Micro Macao Commercial Offshore Ltd.	 	Microsemi Corp. - International
	18th Floor, Unit D	 	c/o Wilmington Trust Corporate Services
	Bank of China Bldg.	 	4th Floor, Century Yard, Cricket Square
	Avenida Doutor Mario Soares	 	Elgin Avenue, P.O. Box 32322
	Macau	 	Grand Cayman KY1-1209
		 	Cayman Islands

  

 114 

 EXHIBIT A 
 FORM OF REQUEST FOR REVOLVING CREDIT ADVANCE 
  

			
	 No.                            
	 	Dated:                     ,
20    

  

	TO:	Comerica Bank (“Agent”) 

  

	RE:	Revolving Credit Agreement dated as of December 29, 2006 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) by and among the
financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such
capacity, the “Agent”) and Microsemi Corporation (“Parent”), Microsemi Corp. – Power Products Group, Microsemi Corp. – Integrated Products, Microsemi Corp. – Massachusetts and Microsemi Corp. – Scottsdale
(each, a “Borrower” and collectively with Parent, “Borrowers”). 

 Pursuant to the terms and conditions of
the Credit Agreement, Parent hereby requests an Advance from Lenders, as described herein: 
  

	 	(A)	Date of Advance: 

  

	 	(B)	 ̈ (check if applicable) 

 This Advance is or includes a whole or partial refunding/conversion of: 
 Advance No(s).
                                        
                                     
  

	 	(C)	Type of Advance (check only one): 

  ̈ Prime-based Advance 
  ̈ Eurodollar-based Advance 
  

	 	(D)	Amount of Advance: 

 $                                      
           
  

	 	(E)	Interest Period (applicable to Eurodollar-based Advances) 

              months (insert 1, 2, 3, or 6) 
  

	 	(F)	Disbursement Instructions 

  ̈ Comerica Bank Account No.
                                 
  ̈ Other:
                                        
                             
 _____________________________________     
  

 115 

 Borrowers certify to the matters specified in Section 2.3(f) of the Credit Agreement. 
 Capitalized terms used herein, except as defined to the contrary, have the meanings given them in the Credit Agreement. 
  

			
	 MICROSEMI CORPORATION,
 for itself
and on behalf of all Borrowers

		
	By:	 	  

		
	Its:	 	  

 Agent
Approval:                                      
           
  

 116 

 EXHIBIT B 
 FORM OF REVOLVING CREDIT NOTE 
  

			
	$                    	 	                    ,
20    

 On or before the Revolving Credit Maturity Date, FOR VALUE RECEIVED, MICROSEMI CORPORATION,
MICROSEMI CORP. – POWER PRODUCTS GROUP, MICROSEMI CORP. – INTEGRATED PRODUCTS, MICROSEMI CORP. – MASSACHUSETTS AND MICROSEMI CORP. – SCOTTSDALE (each, a “Borrower” and collectively, “Borrowers”), jointly and
severally, promise to pay to the order of [insert Bank] (“Lender”) at [Orange, California], care of Agent, in lawful money of the United States of America, so much of the sum of [Insert Amount derived from Percentages] Dollars
($                    ), as may from time to time have been advanced by Lender and then be outstanding hereunder pursuant to the Revolving
Credit Agreement (“Agreement”) dated as of December 29, 2006, by and among the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the
“Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”), and Borrowers. Each of the Revolving Credit Advances made hereunder shall bear interest at the Applicable Interest Rate from time
to time applicable thereto under the Credit Agreement or as otherwise determined thereunder, and interest shall be computed, assessed and payable on the unpaid principal amount of each Revolving Credit Advance made by the Lender from the date of
such Revolving Credit Advance until paid at the rate and at the times set forth in the Credit Agreement. 
 This Note is a note under which
Revolving Credit Advances (including refundings and conversions), repayments and readvances may be made from time to time, but only in accordance with the terms and conditions of the Credit Agreement. This Note evidences borrowings under, is subject
to, is secured in accordance with, and may be accelerated or matured under, the terms of the Credit Agreement, to which reference is hereby made. Capitalized terms used herein, except as defined to the contrary, shall have the meanings given them in
the Credit Agreement. 
 This Note shall be interpreted and the rights of the parties hereunder shall be determined under the laws of, and
enforceable in, the State of California. 
 Each Borrower hereby waives presentment for payment, demand, protest and notice of dishonor and
nonpayment of this Note and agree that no obligation hereunder shall be discharged by reason of any extension, indulgence, release, or forbearance granted by any holder of this Note to any party now or hereafter liable hereon or any present or
subsequent owner of any property, real or personal, which is now or hereafter security for this Note. 
 *    *    * 
 [SIGNATURES FOLLOW ON SUCCEEDING PAGE] 

 Nothing herein shall limit any right granted Lender by any other instrument or by law. 
  

			
	MICROSEMI CORPORATION
		
	By:	 	  

	Its:	 	  

	
	MICROSEMI CORP. – POWER PRODUCTS GROUP
		
	By:	 	  

	Its:	 	  

	
	MICROSEMI CORP. – INTEGRATED PRODUCTS
		
	By:	 	  

	Its:	 	  

	
	MICROSEMI CORP. – MASSACHUSETTS
		
	By:	 	  

	Its:	 	  

	
	MICROSEMI CORP. – SCOTTSDALE
		
	By:	 	  

	Its:	 	  

  

 2 

 EXHIBIT C 
 FORM OF NOTICE OF ISSUANCE OF LETTER OF CREDIT 
  

	TO:	Lenders 

  

	RE:	Issuance of Letter of Credit pursuant to Article 3 of the Revolving Credit Agreement dated as of December 29, 2006 (as amended, restated or otherwise modified from time to
time, the “Credit Agreement”) by and among the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica Bank,
as Administrative Agent for the Lenders (in such capacity, the “Agent”) and Microsemi Corporation (“Parent”), Microsemi Corp. – Power Products Group, Microsemi Corp. – Integrated Products, Microsemi Corp. –
Massachusetts and Microsemi Corp. – Scottsdale (each, a “Borrower” and collectively with Parent, “Borrowers”). 

 On                     , 20    ,1 Agent, in accordance with Article 3 of the Credit Agreement, issued its Letter of Credit number
                    , in favor of
                            2 for the account of MICROSEMI CORPORATION. The face amount of such Letter of Credit is
$                                        .
The amount of each Lender’s participation in such Letter of Credit is as follows:3 
  

				
	 Comerica Bank
	  	$	                            
	                     [Lender]
	  	$	                            
	                     [Lender]
	  	$	                            
	                     [Lender]
	  	$	                            

 This notification is delivered this
             day of                     ,
20    , pursuant to Section 3.3 of the Credit Agreement. Except as otherwise defined, capitalized terms used herein have the meanings given them in the Credit Agreement. 
  

			
	Signed:
	
	COMERICA BANK, as Agent
		
	By:	 	  

	Its:	 	  

  

	1	Date of Issuance 

	2	Beneficiary 

	3	Amounts based on Percentages 

 [This form of Letter of
Credit Notice (including footnotes) is subject in all respects to the terms and conditions of the Credit Agreement which shall govern in the event of any inconsistencies or omissions.] 

 EXHIBIT D 
 FORM OF LENDER ASSIGNMENT AGREEMENT 
 Date:                         
  

	To:	Microsemi Corporation, on behalf of all Borrowers 

 and

 Comerica Bank (“Agent”) 
  

	Re:	Revolving Credit Agreement (“Agreement”) dated as of December 29, 2006 (as amended, restated or otherwise modified from time to time, the “Credit
Agreement”) by and among the financial institutions from time to time signatory thereto (individually a “Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica Bank, as Administrative
Agent for the Lenders (in such capacity, the “Agent”) and Microsemi Corporation (“Parent”), Microsemi Corp. – Power Products Group, Microsemi Corp. – Integrated Products, Microsemi Corp. – Massachusetts and
Microsemi Corp. – Scottsdale (each, a “Borrower” and collectively with Parent, “Borrowers”). 

 Ladies and Gentlemen:

 Reference is made to Section 13.8 of the Credit Agreement. Unless otherwise defined herein or the context otherwise requires, all
initially capitalized terms used herein without definition shall have the meanings specified in the Credit Agreement. 
 This Agreement
constitutes notice to each of you of the proposed assignment and delegation by [insert assignor Lender] (the “Assignor”) to [insert proposed assignee] (the “Assignee”), and, subject to the terms and conditions of
the Credit Agreement, the Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases and assumes from the Assignor, effective on the “Effective Date” (as hereafter defined) that undivided interest in each of
Assignor’s rights and obligations under the Credit Agreement and the other Loan Documents in the amounts as set forth on the attached Schedule 1, such that, after giving effect to the foregoing assignment and assumption, and the concurrent
assignment by Assignor to Assignee on the date hereof, the Assignee’s interest in the Revolving Credit (and participations in any outstanding Letters of Credit) shall be as set forth in the attached Schedule 2 with respect to the Assignee.

 The Assignor hereby instructs the Agent to make all payments from and including the Effective Date hereof in respect of the interest
assigned hereby, directly to the Assignee. The Assignor and the Assignee agree that all interest and fees accrued up to, but not including, the Effective Date of the assignment and delegation being made hereby are the property of the Assignor, and
not the Assignee. The Assignee agrees that, upon receipt of any such interest or fees accrued up to the Effective Date, the Assignee will promptly remit the same to the Assignor. 

 The Assignee hereby confirms that it has received a copy of the Credit Agreement and the exhibits and
schedules referred to therein, and all other Loan Documents which it considers necessary, together with copies of the other documents which were required to be delivered under the Credit Agreement as a condition to the making of the loans
thereunder. The Assignee acknowledges and agrees that it: (a) has made and will continue to make such inquiries and has taken and will take such care on its own behalf as would have been the case had its Percentage been granted and its loans
been made directly by such Assignee to the Borrowers without the intervention of the Agent, the Assignor or any other Lender; and (b) has made and will continue to make, independently and without reliance upon the Agent, the Assignor or any
other Lender, and based on such documents and information as it has deemed appropriate, its own credit analysis and decisions relating to the Credit Agreement. The Assignee further acknowledges and agrees that neither the Agent, nor the Assignor has
made any representations or warranties about the creditworthiness of the Borrowers or any other party to the Credit Agreement or any other of the Loan Documents, or with respect to the legality, validity, sufficiency or enforceability of the Credit
Agreement, or any other of the Loan Documents. This assignment shall be made without recourse to or warranty by the Assignor, except as set forth herein. 
 Assignee represents and warrants that it is a Person to which assignments are permitted pursuant to Section 13.8 of the Credit Agreement. 
 Except as otherwise provided in the Credit Agreement, effective as of the Effective Date: 
  

	 	1.	the Assignee: (i) shall be deemed automatically to have become a party to the Credit Agreement and the other Loan Documents, to have assumed all of the Assignor’s
obligations thereunder to the extent of the Assignee’s percentage referred to in the second paragraph of this Assignment Agreement, and to have all the rights and obligations of a party to the Credit Agreement and the other Loan Documents, as
if it were an original signatory thereto to the extent specified in the second paragraph hereof; and (ii) agrees to be bound by the terms and conditions set forth in the Credit Agreement and the other Loan Documents as if it were an original
signatory thereto; and 

  

	 	2.	the Assignor’s obligations under the Credit Agreement and the other Loan Documents shall be reduced by the Percentage referred to in the second paragraph of this Assignment
Agreement. 

 As used herein, the term “Effective Date” means the date on which all of the following have occurred or
have been completed, as reasonably determined by the Agent: 
  

	 	(A)	the delivery to the Agent of an original of this Assignment Agreement executed by the Assignor and the Assignee; 

  

	 	(B)	the payment to the Agent, of all accrued fees, expenses and other items for which reimbursement is then owing under the Credit Agreement; 

  

	 	(C)	the payment to the Agent of the processing fee referred to in Section 13.8(d)(1) of the Credit Agreement (unless waived by Agent); and 

  

 2 

	 	(D)	all other restrictions and items noted in Section 13.8 of the Credit Agreement have been completed. 

 The Agent shall notify the Assignor and the Assignee, along with Borrowers, of the Effective Date. 
 The
Assignee hereby advises each of you of the following administrative details with respect to the assigned loans: 
  

	 	(A)	Address for Notices: 

 Institution Name: 
 Address: 
 Attention: 
 Telephone: 
 Facsimile: 
  

	 	(B)	Payment Instructions: 

  

	 	(C)	Proposed effective date of assignment. 

 The Assignee has
delivered to the Agent (or is delivering to the Agent concurrently herewith) the tax forms referred to in Section 13.12 of the Credit Agreement to the extent required thereunder, and other forms reasonably requested by the Agent. The Assignor
has delivered to the Agent (or is delivering to Agent concurrently herewith), the original of each Note held by the Assignor under the Credit Agreement. 
 The laws of the State of California shall govern the validity, interpretation and enforcement of this Agreement. 
 * * * 
 Signatures Follow on Succeeding Pages 
  

 3 

 Please evidence your consent to and acceptance of the proposed assignment and delegation set forth herein
by signing and returning counterparts hereof to the Assignor and the Assignee. 
  

			
	[ASSIGNOR]
		
	By:	 	  

	Its:	 	  

	
	[ASSIGNEE]
		
	By:	 	  

	Its:	 	  

  

 4 

 ASSIGNMENT AGREEMENT ACCEPTED AND CONSENTED TO this      day of
                    , 20         BY: 
  

			
	COMERICA BANK, as Agent
		
	By:	 	  

	Its:	 	  

	
	 MICROSEMI CORPORATION,
 for itself
and on behalf of all Borrowers*

		
	By:	 	  

	Its:	 	  

 [*Parent’s consent will be required except as specified in Section 13.8 of the Credit Agreement.]

 [This form of Assignment Agreement (including footnotes) is subject in all respects to the terms and conditions of the Credit Agreement which shall govern
in the event of any inconsistencies or omissions.] 
  

 5 

 EXHIBIT E 
 FORM OF COVENANT COMPLIANCE REPORT 
  

	TO:	Comerica Bank, as Agent 

 RE:     Revolving Credit
Agreement dated as of December 29, 2006 (as amended, restated or otherwise modified from time to time, the “Credit Agreement”) by and among the financial institutions from time to time signatory thereto (individually a
“Lender,” and any and all such financial institutions collectively the “Lenders”), Comerica Bank, as Administrative Agent for the Lenders (in such capacity, the “Agent”) and Microsemi Corporation (“Parent”),
Microsemi Corp. – Power Products Group, Microsemi Corp. – Integrated Products, Microsemi Corp. – Massachusetts and Microsemi Corp. – Scottsdale (each, a “Borrower” and collectively with Parent, “Borrowers”).

 This Covenant Compliance Report (“Report”) is furnished pursuant to Section 7.2(a) of the Credit Agreement and sets forth various
information as of                     , 20     (the “Computation Date”). 
 Please indicate compliance status by circling Yes/No under “Complies” column. 
  

									
	 Reporting Covenant
	  	 Required
	  	Complies
	 Quarterly financial statements (10Q)
	  	Quarterly within 50 days (of 1st, 2d and 3rd fiscal quarters)	  	Yes	    	No
	 Annual (CPA Audited) (10K)
	  	FYE within 90 days	  	Yes	    	No
	 Compliance Cert.
	  	Quarterly within 50 days (and 90 days of FYE)	  	Yes	    	No

  

									
	 Financial Covenant
	  	 Required
	  	 Actual
	  	Complies
	 Measured on a Quarterly Basis:
	  		  		  		    	
	 Maximum Funded Debt to EBITDA
	  	2.00:1.00	  	            :1.00	  	Yes	    	No
	 Minimum EBITDA (rolling 4-quarters)
	  	$20,000,000	  	$                    	  	Yes	    	No

 Parent’s Responsible Officer hereby certifies that: 
 A. To the best of my knowledge, all of the information set forth in this Report (and in any Schedule attached hereto) is true and correct in all material
respects. 
 B. To the best of my knowledge, the representation and warranties of Borrowers contained in the Credit Agreement and in the Loan
Documents are true and correct in all material 

 respects with the same effect as though such representations and warranties had been made on and at the date hereof,
except to the extent that such representations and warranties expressly relate to an earlier specific date, in which case such representations and warranties were true and correct in all material respects as of the date when made. 
 C. I have reviewed the Credit Agreement and this Report is based on an examination sufficient to assure that this Report is accurate. 
 D. To the best of my knowledge, except as stated in Schedule 5 hereto (which shall describe any existing Default or Event of Default and the notice and
period of existence thereof and any action taken with respect thereto or contemplated to be taken by Borrowers), no Default or Event of Default has occurred and is continuing on the date of this Report. 
 Capitalized terms used in this Report and in the Schedules hereto, unless specifically defined to the contrary, have the meanings given to them in the
Credit Agreement. 
 IN WITNESS WHEREOF, Parent has caused this Report to be executed and delivered by Parent’s Responsible Officer this
             day of                         ,
            . 
  

			
	Microsemi Corporation,
	for itself and on behalf of all Borrowers
		
	By:	 	  

	Its:	 	  

 Corporation Resolutions and Incumbency Certification 
 Authority to Procure Loans 
 I certify that I am the
duly elected and qualified Secretary of MICROSEMI CORPORATION (the “Corporation”); that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance with its bylaws and
applicable statutes. 
 Copy of Resolutions: 
 Be it
Resolved, That: 
  

	1.	Any one (1) of the following David R. Sonksen, John W. Hohener, Hoang M. Ngo and Mark. W. Lin of the Corporation are authorized, for, on behalf of, and in the name of the
Corporation to: 

  

	 	(a)	Negotiate and procure loans, letters of credit and other credit or financial accommodations from the Lenders (including but not limited to Comerica Bank, a Michigan banking
corporation, as Agent and Lender) under and as defined in that certain Revolving Credit Agreement dated as of December 29, 2006, as may subsequently be amended from time to time. 

  

	 	(b)	Discount with the Agent and Lenders, commercial or other business paper belonging to the Corporation made or drawn by or upon third parties, without limit as to amount;

  

	 	(c)	Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation; and 

  

	 	(d)	Execute and deliver in form and content as may be required by the Agent and Lenders any and all notes, evidences of Indebtedness, applications for letters of credit, guaranties,
subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property and assets. 

  

	2.	Said Agent and Lenders be and are authorized and directed to pay the proceeds of any such loans or discounts as directed by the persons so authorized to sign, whether so payable to
the order of any of said persons in their individual capacities or not, and whether such proceeds are deposited to the individual credit of any of said persons or not; 

  

	3.	Any and all agreements, instruments and documents previously executed and acts and things previously done to carry out the purposes of these Resolutions are ratified, confirmed and
approved as the act or acts of the Corporation. 

  

	4.	These Resolutions shall continue in force, and the Agent and Lenders may consider the holders of said offices and their signatures to be and continue to be as set forth in a
certified copy of these Resolutions delivered to the Agent or the Lenders, until notice to the contrary in writing is duly served on the Agent (such notice to have no effect on any action previously taken by the Agent or the Lenders in reliance on
these Resolutions). 

  

	5.	Any person, corporation or other legal entity dealing with the Agent or the Lenders may rely upon a certificate signed by an officer of the Agent or the Lenders to effect that these
Resolutions and any agreement, instrument or document executed pursuant to them are still in full force and effect and binding upon the Corporation. 

  

 - 1 - 

	6.	Agent and the Lenders may consider the holders of the offices of the Corporation and their signatures, respectively, to be and continue to be as set forth in the Certificate of the
Secretary of the Corporation until notice to the contrary in writing is duly served on the Agent and the Lenders. 

 I further certify that the
above Resolutions are in full force and effect as of the date of this Certificate; that these Resolutions and any borrowings or financial accommodations under these Resolutions have been properly noted in the corporate books and records, and have
not been rescinded, annulled, revoked or modified; that neither the foregoing Resolutions nor any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Corporation or
of any agreement, indenture or other instrument to which the Corporation is a party or by which it is bound; and that neither the articles of incorporation nor bylaws of the Corporation nor any agreement, indenture or other instrument to which the
Corporation is a party or by which it is bound require the vote or consent of shareholders of the Corporation to authorize any act, matter or thing described in the foregoing Resolutions. 
 I further certify that the following named persons have been duly elected to the offices set opposite their respective names, that they continue to hold these offices at
the present time, and that the signatures which appear below are the genuine, original signatures of each respectively: 
 (PLEASE SUPPLY
GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW) 
  

					
	 NAME (Type or Print)
	  	 TITLE
	  	 SIGNATURE

			
	David R. Sonksen	  	 Chief Financial Officer,
 Secretary &
Treasurer
	  	 /s/ David R. Sonksen

			
	John W. Hohener	  	Vice President – Finance	  	 /s/ John W. Hohener

			
	Hoang M. Ngo	  	Corporate Controller	  	 /s/ Hoang M. Ngo

			
	Mark W. Lin	  	Asst. Corp. Controller	  	 /s/ Mark W. Lin

 In Witness Whereof, I have affixed my name as Secretary and have caused the corporate seal (where available) of
said Corporation to be affixed on December 29, 2006. 
  

	
	MICROSEMI CORPORATION
	
	 /s/ David R. Sonksen

	Secretary

  

 - 2 - 

 Corporation Resolutions and Incumbency Certification 
 Authority to Procure Loans 
 I certify that I am the
duly elected and qualified Secretary of MICROSEMI CORP. – POWER PRODUCTS GROUP (the “Corporation”); that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance
with its bylaws and applicable statutes. 
 Copy of Resolutions: 
 Be it Resolved, That: 
  

	1.	David R. Sonksen of the Corporation is authorized, for, on behalf of, and in the name of the Corporation to: 

  

	 	(a)	Negotiate and procure loans, letters of credit and other credit or financial accommodations from the Lenders (including but not limited to Comerica Bank, a Michigan banking
corporation, as Agent and Lender) under and as defined in that certain Revolving Credit Agreement dated as of December 29, 2006, as may subsequently be amended from time to time. 

  

	 	(b)	Discount with the Agent and Lenders, commercial or other business paper belonging to the Corporation made or drawn by or upon third parties, without limit as to amount;

  

	 	(c)	Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation; and 

  

	 	(d)	Execute and deliver in form and content as may be required by the Agent and Lenders any and all notes, evidences of Indebtedness, applications for letters of credit, guaranties,
subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property and assets. 

  

	2.	Said Agent and Lenders be and are authorized and directed to pay the proceeds of any such loans or discounts as directed by the persons so authorized to sign, whether so payable to
the order of any of said persons in their individual capacities or not, and whether such proceeds are deposited to the individual credit of any of said persons or not; 

  

	3.	Any and all agreements, instruments and documents previously executed and acts and things previously done to carry out the purposes of these Resolutions are ratified, confirmed and
approved as the act or acts of the Corporation. 

  

	4.	These Resolutions shall continue in force, and the Agent and Lenders may consider the holders of said offices and their signatures to be and continue to be as set forth in a
certified copy of these Resolutions delivered to the Agent or the Lenders, until notice to the contrary in writing is duly served on the Agent (such notice to have no effect on any action previously taken by the Agent or the Lenders in reliance on
these Resolutions). 

  

	5.	Any person, corporation or other legal entity dealing with the Agent or the Lenders may rely upon a certificate signed by an officer of the Agent or the Lenders to effect that these
Resolutions and any agreement, instrument or document executed pursuant to them are still in full force and effect and binding upon the Corporation. 

  

	6.	Agent and the Lenders may consider the holders of the offices of the Corporation and their signatures, respectively, to be and continue to be as set forth in the Certificate of the
Secretary of the Corporation until notice to the contrary in writing is duly served on the Agent and the Lenders. 

 I further certify that the above Resolutions are in full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these Resolutions have been properly noted in the corporate books and records, and have not been rescinded, annulled, revoked or modified; that neither the foregoing Resolutions nor
any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Corporation or of any agreement, indenture or other instrument to which the Corporation is a party or by
which it is bound; and that neither the articles of incorporation nor bylaws of the Corporation nor any agreement, indenture or other instrument to which the Corporation is a party or by which it is bound require the vote or consent of shareholders
of the Corporation to authorize any act, matter or thing described in the foregoing Resolutions. 
 I further certify that the following named persons have
been duly elected to the offices set opposite their respective names, that they continue to hold these offices at the present time, and that the signatures which appear below are the genuine, original signatures of each respectively: 
 (PLEASE SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW) 
  

					
	 NAME (Type or Print)
	  	 TITLE
	  	 SIGNATURE

	David R. Sonksen	  	Chief Financial Officer, Secretary & Treasurer	  	 /s/ David R. Sonksen

 In Witness Whereof, I have affixed my name as Secretary and have caused the corporate seal (where available) of
said Corporation to be affixed on December 29, 2006. 
  

	
	MICROSEMI CORP. – POWER PRODUCTS GROUP
	
	 /s/ David R. Sonksen

	Secretary

 Corporation Resolutions and Incumbency Certification 
 Authority to Procure Loans 
 I certify that I am the
duly elected and qualified Secretary of MICROSEMI CORP. – INTEGRATED PRODUCTS (the “Corporation”); that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance
with its bylaws and applicable statutes. 
 Copy of Resolutions: 
 Be it Resolved, That: 
  

	1.	David R. Sonksen of the Corporation is authorized, for, on behalf of, and in the name of the Corporation to: 

  

	 	(a)	Negotiate and procure loans, letters of credit and other credit or financial accommodations from the Lenders (including but not limited to Comerica Bank, a Michigan banking
corporation, as Agent and Lender) under and as defined in that certain Revolving Credit Agreement dated as of December 29, 2006, as may subsequently be amended from time to time. 

  

	 	(b)	Discount with the Agent and Lenders, commercial or other business paper belonging to the Corporation made or drawn by or upon third parties, without limit as to amount;

  

	 	(c)	Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation; and 

  

	 	(d)	Execute and deliver in form and content as may be required by the Agent and Lenders any and all notes, evidences of Indebtedness, applications for letters of credit, guaranties,
subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property and assets. 

  

	2.	Said Agent and Lenders be and are authorized and directed to pay the proceeds of any such loans or discounts as directed by the persons so authorized to sign, whether so payable to
the order of any of said persons in their individual capacities or not, and whether such proceeds are deposited to the individual credit of any of said persons or not; 

  

	3.	Any and all agreements, instruments and documents previously executed and acts and things previously done to carry out the purposes of these Resolutions are ratified, confirmed and
approved as the act or acts of the Corporation. 

  

	4.	These Resolutions shall continue in force, and the Agent and Lenders may consider the holders of said offices and their signatures to be and continue to be as set forth in a
certified copy of these Resolutions delivered to the Agent or the Lenders, until notice to the contrary in writing is duly served on the Agent (such notice to have no effect on any action previously taken by the Agent or the Lenders in reliance on
these Resolutions). 

  

	5.	Any person, corporation or other legal entity dealing with the Agent or the Lenders may rely upon a certificate signed by an officer of the Agent or the Lenders to effect that these
Resolutions and any agreement, instrument or document executed pursuant to them are still in full force and effect and binding upon the Corporation. 

  

	6.	Agent and the Lenders may consider the holders of the offices of the Corporation and their signatures, respectively, to be and continue to be as set forth in the Certificate of the
Secretary of the Corporation until notice to the contrary in writing is duly served on the Agent and the Lenders. 

  

 I further certify that the above Resolutions are in full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these Resolutions have been properly noted in the corporate books and records, and have not been rescinded, annulled, revoked or modified; that neither the foregoing Resolutions nor
any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Corporation or of any agreement, indenture or other instrument to which the Corporation is a party or by
which it is bound; and that neither the articles of incorporation nor bylaws of the Corporation nor any agreement, indenture or other instrument to which the Corporation is a party or by which it is bound require the vote or consent of shareholders
of the Corporation to authorize any act, matter or thing described in the foregoing Resolutions. 
 I further certify that the following named persons have
been duly elected to the offices set opposite their respective names, that they continue to hold these offices at the present time, and that the signatures which appear below are the genuine, original signatures of each respectively: 
 (PLEASE SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW) 
  

					
	 NAME (Type or Print)
	  	 TITLE
	  	 SIGNATURE

	David R. Sonksen	  	Chief Financial Officer, Secretary & Treasurer	  	 /s/ David R. Sonksen

 In Witness Whereof, I have affixed my name as Secretary and have caused the corporate seal (where available) of
said Corporation to be affixed on December 29, 2006. 
  

	
	MICROSEMI CORP. – INTEGRATED PRODUCTS
	
	 /s/ David R. Sonksen

	Secretary

 Corporation Resolutions and Incumbency Certification 
 Authority to Procure Loans 
 I certify that I am the
duly elected and qualified Secretary of MICROSEMI CORP. – MASSACHUSETTS (the “Corporation”); that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance with its
bylaws and applicable statutes. 
 Copy of Resolutions: 
 Be it Resolved, That: 
  

	1.	David R. Sonksen of the Corporation are/is authorized, for, on behalf of, and in the name of the Corporation to: 

  

	 	(a)	Negotiate and procure loans, letters of credit and other credit or financial accommodations from the Lenders (including but not limited to Comerica Bank, a Michigan banking
corporation, as Agent and Lender) under and as defined in that certain Revolving Credit Agreement dated as of December 29, 2006, as may subsequently be amended from time to time. 

  

	 	(b)	Discount with the Agent and Lenders, commercial or other business paper belonging to the Corporation made or drawn by or upon third parties, without limit as to amount;

  

	 	(c)	Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation; and 

  

	 	(d)	Execute and deliver in form and content as may be required by the Agent and Lenders any and all notes, evidences of Indebtedness, applications for letters of credit, guaranties,
subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property and assets. 

  

	2.	Said Agent and Lenders be and are authorized and directed to pay the proceeds of any such loans or discounts as directed by the persons so authorized to sign, whether so payable to
the order of any of said persons in their individual capacities or not, and whether such proceeds are deposited to the individual credit of any of said persons or not; 

  

	3.	Any and all agreements, instruments and documents previously executed and acts and things previously done to carry out the purposes of these Resolutions are ratified, confirmed and
approved as the act or acts of the Corporation. 

  

	4.	These Resolutions shall continue in force, and the Agent and Lenders may consider the holders of said offices and their signatures to be and continue to be as set forth in a
certified copy of these Resolutions delivered to the Agent or the Lenders, until notice to the contrary in writing is duly served on the Agent (such notice to have no effect on any action previously taken by the Agent or the Lenders in reliance on
these Resolutions). 

  

	5.	Any person, corporation or other legal entity dealing with the Agent or the Lenders may rely upon a certificate signed by an officer of the Agent or the Lenders to effect that these
Resolutions and any agreement, instrument or document executed pursuant to them are still in full force and effect and binding upon the Corporation. 

  

	6.	Agent and the Lenders may consider the holders of the offices of the Corporation and their signatures, respectively, to be and continue to be as set forth in the Certificate of the
Secretary of the Corporation until notice to the contrary in writing is duly served on the Agent and the Lenders. 

 I further certify that the
above Resolutions are in full force and effect as of the date of this Certificate; that these Resolutions and any borrowings or financial accommodations under these Resolutions have been properly noted in the corporate books and records, and have
not been rescinded, annulled, revoked or modified; that neither the foregoing Resolutions nor any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Corporation or
of any agreement, indenture or other instrument to which the Corporation is a party or by which it is bound; and that neither the articles of incorporation nor bylaws of the Corporation nor any agreement, indenture or other instrument to which the
Corporation is a party or by which it is bound require the vote or consent of shareholders of the Corporation to authorize any act, matter or thing described in the foregoing Resolutions. 
 I further certify that the following named persons have been duly elected to the offices set opposite their respective names, that they continue to hold these offices at
the present time, and that the signatures which appear below are the genuine, original signatures of each respectively: 
 (PLEASE SUPPLY
GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW) 
  

					
	 NAME (Type or Print)
	  	 TITLE
	  	 SIGNATURE

	 David R. Sonksen
	  	Chief Financial Officer, Secretary & Treasurer	  	 /s/ David R. Sonksen

 In Witness Whereof, I have affixed my name as Secretary and have caused the corporate seal (where available) of
said Corporation to be affixed on December 29, 2006. 
  

	
	MICROSEMI CORP. – MASSACHUSETTS
	
	 /s/ David R. Sonksen

	Secretary

 Corporation Resolutions and Incumbency Certification 
 Authority to Procure Loans 
 I certify that I am the
duly elected and qualified Secretary of MICROSEMI CORP. – SCOTTSDALE (the “Corporation”); that the following is a true and correct copy of resolutions duly adopted by the Board of Directors of the Corporation in accordance with its
bylaws and applicable statutes. 
 Copy of Resolutions: 
 Be it Resolved, That: 
  

	1.	David R. Sonksen of the Corporation is authorized, for, on behalf of, and in the name of the Corporation to: 

  

	 	(a)	Negotiate and procure loans, letters of credit and other credit or financial accommodations from the Lenders (including but not limited to Comerica Bank, a Michigan banking
corporation, as Agent and Lender) under and as defined in that certain Revolving Credit Agreement dated as of December 29, 2006, as may subsequently be amended from time to time. 

  

	 	(b)	Discount with the Agent and Lenders, commercial or other business paper belonging to the Corporation made or drawn by or upon third parties, without limit as to amount;

  

	 	(c)	Purchase, sell, exchange, assign, endorse for transfer and/or deliver certificates and/or instruments representing stocks, bonds, evidences of Indebtedness or other securities owned
by the Corporation, whether or not registered in the name of the Corporation; and 

  

	 	(d)	Execute and deliver in form and content as may be required by the Agent and Lenders any and all notes, evidences of Indebtedness, applications for letters of credit, guaranties,
subordination agreements, loan and security agreements, financing statements, assignments, liens, deeds of trust, mortgages, trust receipts and other agreements, instruments or documents to carry out the purposes of these Resolutions, any or all of
which may relate to all or to substantially all of the Corporation’s property and assets. 

  

	2.	Said Agent and Lenders be and are authorized and directed to pay the proceeds of any such loans or discounts as directed by the persons so authorized to sign, whether so payable to
the order of any of said persons in their individual capacities or not, and whether such proceeds are deposited to the individual credit of any of said persons or not; 

  

	3.	Any and all agreements, instruments and documents previously executed and acts and things previously done to carry out the purposes of these Resolutions are ratified, confirmed and
approved as the act or acts of the Corporation. 

  

	4.	These Resolutions shall continue in force, and the Agent and Lenders may consider the holders of said offices and their signatures to be and continue to be as set forth in a
certified copy of these Resolutions delivered to the Agent or the Lenders, until notice to the contrary in writing is duly served on the Agent (such notice to have no effect on any action previously taken by the Agent or the Lenders in reliance on
these Resolutions). 

  

	5.	Any person, corporation or other legal entity dealing with the Agent or the Lenders may rely upon a certificate signed by an officer of the Agent or the Lenders to effect that these
Resolutions and any agreement, instrument or document executed pursuant to them are still in full force and effect and binding upon the Corporation. 

  

	6.	Agent and the Lenders may consider the holders of the offices of the Corporation and their signatures, respectively, to be and continue to be as set forth in the Certificate of the
Secretary of the Corporation until notice to the contrary in writing is duly served on the Agent and the Lenders. 

 I further certify that the above Resolutions are in full force and effect as of the date of this Certificate; that these
Resolutions and any borrowings or financial accommodations under these Resolutions have been properly noted in the corporate books and records, and have not been rescinded, annulled, revoked or modified; that neither the foregoing Resolutions nor
any actions to be taken pursuant to them are or will be in contravention of any provision of the articles of incorporation or bylaws of the Corporation or of any agreement, indenture or other instrument to which the Corporation is a party or by
which it is bound; and that neither the articles of incorporation nor bylaws of the Corporation nor any agreement, indenture or other instrument to which the Corporation is a party or by which it is bound require the vote or consent of shareholders
of the Corporation to authorize any act, matter or thing described in the foregoing Resolutions. 
 I further certify that the following named persons have
been duly elected to the offices set opposite their respective names, that they continue to hold these offices at the present time, and that the signatures which appear below are the genuine, original signatures of each respectively: 
 (PLEASE SUPPLY GENUINE SIGNATURES OF AUTHORIZED SIGNERS BELOW) 
  

					
	 NAME (Type or Print)
	  	 TITLE
	  	 SIGNATURE

	 David R. Sonksen
	  	Chief Financial Officer, Secretary & Treasurer	  	 /s/ David R. Sonksen

 In Witness Whereof, I have affixed my name as Secretary and have caused the corporate seal (where available) of
said Corporation to be affixed on December 29, 2006. 
  

	
	MICROSEMI CORP. – SCOTTSDALE
	
	 /s/ David R. Sonksen

	Secretary

 ATTN: 
 MICROSEMI CORPORATION 
 MICROSEMI CORP. – POWER PRODUCTS GROUP 
 MICROSEMI CORP. – INTEGRATED PRODUCTS 
 MICROSEMI CORP. – MASSACHUSETTS 
 AND MICROSEMI CORP. – SCOTTSDALE 
 USA PATRIOT ACT 
 NOTICE

 OF 
 CUSTOMER
IDENTIFICATION 
 IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT 
 To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify,
and record information that identifies each person who opens an account. 
 WHAT THIS MEANS FOR YOU: when you open an account, we will ask
your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents. 

 COMERICA BANK 
 Member FDIC 
 ITEMIZATION OF AMOUNT FINANCED 
 DISBURSEMENT INSTRUCTIONS 
 (Revolver)

  

			
	Name(s): MICROSEMI CORPORATION, on behalf of all Borrowers	  	Date: December 29, 2006
		
	$75,000,000	  	credited to deposit account No.                      when Advances are requested by Microsemi
Corporation
		
	Amounts paid to others on your behalf:	  	
		
	$	  	to Comerica Bank for Loan Fee
		
	$	  	to Comerica Bank for Document Fee
		
	$	  	to Comerica Bank for accounts receivable audit (estimate)
		
	$	  	to Bank counsel fees and expenses
		
	$	  	to
                                
		
	$	  	to
                                
		
	$	  	TOTAL (AMOUNT FINANCED)

 Upon consummation of this transaction, this document will also serve as the authorization for Comerica Bank to
disburse the loan proceeds as stated above. 
  

			
	 MICROSEMI CORPORATION,
 for itself and on behalf of all Borrowers
	    	 MICROSEMI CORPORATION,
 for itself and on behalf of
all Borrowers

		
	  
	    	  

	Signature	    	Signature

  

 COMERICA BANK 
 Member FDIC 
 AUTOMATIC DEBIT AUTHORIZATION 
 To: Comerica Bank 
 Re: Loan #
                     
 You are hereby authorized
and instructed to charge account No.                      in the name of 
 MICROSEMI CORPORATION 
 for principal interest and other payments due on above referenced loan as set forth below and credit
the loan referenced above. 
 x      Debit each interest
payment as it becomes due according to the terms of the Loan and Security Agreement and any renewals or amendments thereof. 
 x      Debit each principal payment as it becomes due according to the terms of the Loan and Security Agreement and any renewals or amendments thereof. 
 x      Debit each payment for Bank Expenses as it becomes due according
to the terms of the Loan and Security Agreement and any renewals or amendments thereof. 
 This Authorization is to remain in full force and effect until
revoked in writing. 
  

			
	 Borrower Signature
	    	 Date

		
	  
	    	 December 29, 2006                                  
  

		
	  
	    	 December 29, 2006

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