Document:

Loan and Security Modification Agreement, dated May 5, 2009

 Exhibit 10.3 
 LOAN AND SECURITY MODIFICATION AGREEMENT 
 This Loan
and Security Modification Agreement is entered into as of May 5, 2009, by and between CHIPX, INCORPORATED (the “Borrower”) and Bridge Bank, National Association (“Bank”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to,
among other documents, a Loan and Security Agreement, dated December 9, 2008 by and between Borrower to Bank, as may be amended from time to time (the “Loan and Security Agreement”). Capitalized terms used without definition herein
shall have the meanings assigned to them in the Loan and Security Agreement. 
 Hereinafter, all indebtedness owing by Borrower to Bank shall be
referred to as the “Indebtedness” and the Loan and Security Agreement and any and all other documents executed by Borrower in favor of Bank shall be referred to as the “Existing Documents.” 
 2. DESCRIPTION OF CHANGE IN TERMS. 
 A. Modification(s) to Loan and Security Agreement: 
  

	 	1).	The following defined term in Section 1.1 entitled “Definitions” is hereby amended as follows: 

 “Prime Rate” means the variable rate of interest, per annum, most recently announced by Bank, as its “prime rate,”
whether or not such announced rate is the lowest rate available from Bank. 
  

	 	2).	Section 6.8 entitled “Maximum Loss/Profitability” is hereby amended as follows: 

 6.8 Maximum Loss/Profitability. Borrower may suffer a quarterly loss of no more than ($100,000) for the fourth quarter of FY 2008; no
more than ($650,000) for the first quarter of FY 2009; no more than ($700,000) for the second quarter of FY 2009; and no more than ($150,000) for the third quarter of FY 2009; thereafter Borrower shall maintain a profit of at least $1.00 for each
fiscal quarter. 
  

	 	3).	Section 6.9 entitled “Asset Coverage Ratio” is hereby amended as follows: 

 6.9 Asset Coverage Ratio. Borrower shall maintain at all times a ratio of Cash at Bank plus Eligible Accounts aged less than 90 days
from the invoice date, to Indebtedness to Bank of at least 1.45 to 1.00, to be measured at the end of each month. 
 3. ACCEPTANCE OF REVISED
2009 OPERATING BUDGET. Bank hereby acknowledges acceptance of Borrower’s revised 2009 Board-approved operating budget, in a form and substance acceptable to Bank. 
 4. CONSISTENT CHANGES. The Existing Documents are each hereby amended wherever necessary to reflect the changes described above. 
 5. PAYMENT OF AMENDMENT FEE. Borrower shall pay Bank a fee in the amount of $5,000 (“Amendment Fee”) plus all out-of-pocket expenses. 
 6. NO DEFENSES OF BORROWER/GENERAL RELEASE. Borrower agrees that, as of this date, it has no defenses against the obligations to pay any amounts
under the Indebtedness. Each of Borrower and Guarantor (each, a “Releasing Party”) acknowledges that Bank would not enter into this Loan and Security Modification Agreement without Releasing Party’s assurance that it has no claims
against Bank or any of

  

 1 

 
Bank’s officers, directors, employees or agents. Except for the obligations arising hereafter under this Loan and Security Modification Agreement, each Releasing Party releases Bank, and
each of Bank’s and entity’s officers, directors and employees from any known or unknown claims that Releasing Party now has against Bank of any nature, including any claims that Releasing Party, its successors, counsel, and advisors may in
the future discover they would have now had if they had known facts not now known to them, whether founded in contract, in tort or pursuant to any other theory of liability, including but not limited to any claims arising out of or related to the
Agreement or the transactions contemplated thereby. Releasing Party waives the provisions of California Civil Code section 1542, which states: 
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the
debtor.” 
 The provisions, waivers and releases set forth in this section are binding upon each Releasing Party and its shareholders,
agents, employees, assigns and successors in interest. The provisions, waivers and releases of this section shall inure to the benefit of Bank and its agents, employees, officers, directors, assigns and successors in interest. The provisions of this
section shall survive payment in full of the Obligations, full performance of all the terms of this Loan and Security Modification Agreement and the Agreement, and/or Bank’s actions to exercise any remedy available under the Agreement or
otherwise. 
 7. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon
Borrower’s representations, warranties, and agreements, as set forth in the Existing Documents. Except as expressly modified pursuant to this Loan and Security Modification Agreement, the terms of the Existing Documents remain unchanged and in
full force and effect. Bank’s agreement to modifications to the existing Indebtedness pursuant to this Loan and Security Modification Agreement in no way shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this
Loan and Security Modification Agreement shall constitute a satisfaction of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Documents, unless the party is expressly released
by Bank in writing. No maker, endorser, or guarantor will be released by virtue of this Loan and Security Modification Agreement. The terms of this paragraph apply not only to this Loan and Security Modification Agreement, but also to any subsequent
Loan and Security modification agreements. 
 8. CONDITIONS. The effectiveness of this Loan and Security Modification Agreement is
conditioned upon payment of the Amendment Fee. 
 9. COUNTERSIGNTURE. This Loan and Security Modification Agreement shall become
effective only when executed by Bank, Borrower, and Guarantor. 
  

									
	BORROWER:	 		 	BANK:
			
	CHIPX, INCORPORATED	 		 	BRIDGE BANK, NATIONAL ASSOCIATION
					
	By:	 	 /s/ RA Sheffield
	 		 	By:	 	 /s/ Christopher Hill

					
	Name:	 	 RA Sheffield
	 		 	Name:	 	 Christopher Hill

					
	Title:	 	 CFO
	 		 	Title:	 	 VP

  

 2 

 Guarantor consents to the modifications to the Indebtedness pursuant to this Loan and Security
Modification Agreement, hereby ratifies the provisions of the Guaranty and confirms that all provisions of that document are in full force and effect. 
  

							
	CHIPX (Israel) LTD	 		 	
				
	By:	 	 /s/ R.A. Sheffield
	 	Date:	 	 5/12/09

				
	Name:	 	 R.A. Sheffield
	 		 	
				
	Title:	 	 Board Member
	 		 	
			
	CHIPX, UK LIMITED	 		 	
				
	By:	 	 /s/ R.A. Sheffield
	 	Date:	 	 5/12/09

				
	Name:	 	 R.A. Sheffield
	 		 	
				
	Title:	 	 Board Member
	 		 	

  

 3Consent, Assignment, Assumption and Amendment Agreement

 Exhibit 10.4 
 CONSENT, ASSIGNMENT, ASSUMPTION AND AMENDMENT AGREEMENT 
 This Consent, Assignment, Assumption and Amendment Agreement (this “Agreement”) is made as of November 9, 2009, by and among CHIPX INCORPORATED, a Delaware corporation (“ChipX”), GIGOPTIX, INC., a Delaware corporation
(“GigOptix”), and BRIDGE BANK, NATIONAL ASSOCIATION (“Bank”). 
 RECITALS 
 A. Bank and ChipX are parties to that certain Loan and Security Agreement dated
December 9, 2008 (the “Loan Agreement”). Except as otherwise defined herein, capitalized terms shall have the meaning assigned in the Loan Agreement. 
 B. ChipX and GigOptix have entered into an Agreement and Plan of Merger on even date herewith (the “Merger Agreement”) pursuant to which a wholly owned subsidiary of GigOptix will merge with and
into ChipX, with ChipX continuing as the surviving corporation (the “Merger”). Pursuant to the Loan Documents, Bank must consent to such Merger. 
 C. GigOptix desires to assume all obligations of ChipX under the Loan Documents (the “Assumption”). 
 D. GigOptix and ChipX have requested Bank’s consent to the Merger, and Bank desires to grant such consent, provided GigOptix assumes all obligations of ChipX under the Loan Documents to Bank in
accordance with this Agreement. 
 NOW, THEREFORE, the parties agree as
follows: 
 1. Assumption. Simultaneously with the consummation of the Merger, to the extent not already provided for in
the Merger Agreement or otherwise made effective as a consequence of the Merger, ChipX assigns to GigOptix, and GigOptix assumes, all obligations of ChipX, including, but not limited to, the payment of any amounts outstanding. GigOptix confirms that
effective upon the consummation of the Merger, to secure such performance, GigOptix grants Bank a security interest in its property described on Exhibit A attached hereto (the “Collateral”). 
 2. Amendment/Definitions. Upon the consummation of the Merger, any reference in the Loan Documents to Borrower, the undersigned or
other terms that refer to ChipX shall also mean and refer to GigOptix. Upon the consummation of the Merger, and until such time as the Loan Agreement is restructured to the mutual satisfaction of Bank and GigOptix, $1,000,000 of ChipX’s cash at
Bank shall be designated as restricted cash collateral to secure the outstanding Obligations under the Loan Agreement. Within five business days following the consummation of the Merger, ChipX and GigOptix shall execute Bank’s form of lockbox
agreement and commence the establishment of a lockbox account and facility satisfactory to Bank. Failure to do so shall constitute an immediate Event of Default. 
 3. Representations and Warranties. GigOptix confirms that the Representations and Warranties set forth in Article 5 of the Loan Agreement are true and correct as of the date hereof and will remain
so after giving effect to the Merger. 
 4. Consent; Waiver. Bank consents to the merger of ChipX into GigOptix pursuant
to the Merger Agreement. 
 5. General Provisions. Except as provided above, the Loan Documents remain unchanged and the
parties hereby confirm that the Loan Documents as may be modified by this Agreement are in full force and effect. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when
executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement. This Agreement shall be governed by the internal laws of the State of California without regard to
conflict of laws principles. 
  

 1. 

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

			
	CHIPX, INCORPORATED
		
	By:	 	 /s/ Amnon Fisher

	Title:	 	 CEO

	
	GIGOPTIX, INC.
		
	By:	 	 /s/ Dr. Avi Katz

	Title:	 	 CEO

	
	BRIDGE BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Christopher Hill

	Title:	 	 VP

  

 2. 

 DEBTOR: GIGOPTIX, INC. 
 SECURED PARTY: BRIDGE BANK, NATIONAL ASSOCIATION 
 EXHIBIT A 
 COLLATERAL DESCRIPTION ATTACHMENT 
 TO LOAN AND SECURITY AGREEMENT 
 All personal property of Borrower (herein
referred to as “Borrower” or “Debtor”) whether presently existing or hereafter created or acquired, and wherever located, including, but not limited to: 
 (a) all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), deposit
accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto), general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory notes),
inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money,
and all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said books and records; 
 (i) (b) any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds, and all supporting obligations and the security therefor or for
any right to payment. All terms above have the meanings given to them in the California Uniform Commercial Code, as amended or supplemented from time to time. 
 Notwithstanding the foregoing, the “Collateral” does not include more than 65% of the presently existing and hereafter arising issued and outstanding shares of capital stock owned by Borrower of
any foreign subsidiary which shares entitle the holder thereof to vote for directors or any other matter. 
  

 3.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00165-of-00352.parquet"}]]