Document:

Master Purchase Agreement

 Exhibit 10.25 
 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 

Confidential Treatment Requested 
 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
 MASTER PURCHASE AGREEMENT 
 THIS MASTER PURCHASE AGREEMENT (the
“Agreement”) is made and entered into as of July 1, 2006 (the “Effective Date”), by and between Entropic Communications, Inc., a Delaware corporation located at 9276 Scranton Rd, San Diego, CA
92121 (“Entropic” or “Supplier”), and Tellabs Operations, Inc. a Delaware corporation having principal offices at One Tellabs Center, 1415 W. Diehl Rd., Naperville, IL 60563
(“Tellabs” or “CUSTOMER”). Each of the foregoing entities may be singularly referred to herein as a “Party” and collectively as the “Parties”. This
Agreement is intended to be the Master Purchase Agreement (MPA) referred to in the Entropic Materials License Agreement (MLA) between Supplier and CUSTOMER. 
 BACKGROUND 
 In consideration for the Parties entering into this Agreement and subject
to the terms and conditions of this Agreement, Supplier desires to manufacture (or have manufactured) and supply to CUSTOMER, and CUSTOMER desires to purchase from Supplier, the Products (defined below). CUSTOMER shall incorporate the Products into
Tellabs’ own end products. 
 NOW, THEREFORE, the Parties to this Agreement agree as
follows: 
 AGREEMENT 
 1. DEFINITIONS. All definitions below and elsewhere in this Agreement apply both to their singular and plural forms, as the context may require. The terms “herein”,
“hereunder”, and “hereof” and similar expressions refer to this Agreement. 
 1.1
“Affiliate” shall mean any Entity (defined below) directly or indirectly controlling, controlled by or under common control with a Party, where control means the ownership or control, directly or indirectly, of more than
fifty percent (50%) of all the voting power of the shares (or other securities rights) entitled to vote for the election of directors or other governing authority, as of the Effective Date or hereafter during the Term (defined below); provided
that such entity shall be considered an Affiliate only for the time during which such control exists. 
 1.2
“Device” means a semiconductor device (e.g., a chip) including any firmware or other software resident thereon, as provided by Supplier. 
 1.3 “Entity” means a corporation, partnership, limited liability company, or other enterprise, association, organization, or entity. 
 1.4 “Intellectual Property” or “Intellectual Property Rights” collectively 

  

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means all of the following legal rights, title, or interest in or arising under the laws of the United States, or any other country or international treaty
regime, whether or not filed, perfected, registered or recorded and whether now or hereafter existing, filed, issued or acquired: (i) patents, patent applications, or patent rights, including any and all continuations, divisions, reissues,
reexaminations or extensions thereof; (ii) rights associated with works of authorship, including copyrights, copyright applications, copyright registrations, or moral rights; (iii) rights relating to know-how or trade secrets, including
rights in industrial property, customer, vendor and prospect lists ‘and all associated information or databases and other confidential or proprietary information; (iv) industrial design rights or mask work rights; (v) trademarks,
service marks, logos, trade dress, trade names or service names; (vi) data rights; and (vii) any rights analogous to those set forth in the preceding clauses and any other proprietary rights relating to intangible property. 
 1.5 “Lead Time” means the time period between the date of acceptance of an applicable Purchase Order (defined below) by
Supplier and the date of shipment by Supplier of the applicable Products in connection with such Purchase Order. To the extent of quantities noted in forecasts issued by CUSTOMER to Supplier, the applicable lead time shall be no greater than
[...***...]; provided, however, Supplier shall use commercially reasonable efforts to shorten the lead time. 
 1.6
“Process Technology” means the systematic techniques, methods, or approaches used by Supplier to manufacture, package, or test semiconductor chips or assemblies. 
 1.7 “Products” means the Devices that Supplier makes available pursuant to the terms of this Agreement. 
 1.8 “Purchase Order” means a written purchase order for Products or Services submitted by CUSTOMER to Supplier pursuant to
Section 4.2. 
 1.9 “Specifications” means the written specifications of a Product. 
 1.10 “Term” shall have the meaning set forth in Section 16. 
 2. MARKET RIGHTS. The relationship of the Parties under this Agreement shall be non-exclusive in all respects. Other
than the Parties’ respective obligations to comply fully with the terms of the NDA (as defined below), it is expressly understood and a greed that nothing expressed or implied in this Agreement shall be deemed to restrict: (i) Supplier’s
right or ability, whether during the Term or at any time thereafter, to directly or indirectly sell, license, use, promote, market, exploit, develop or otherwise deal in the Products, or any other product, software or service; or (ii) Tellabs’
right to independently develop or cause to be developed and to make commercial usage of similar or competing technology as that which is incorporated in the Products; or (iii) either Party’s right to enter into any business arrangement of
whatever nature or description, including arrangements similar to those contemplated in this Agreement, with any service supplier, distributor, reseller, system integrator, or any other third party wherever located. 
 3. CONTRACT MANUFACTURERS. Orders to purchase the Product may be issued by Tellabs and/or by
Tellabs’ contract manufacturers listed in the attached Exhibit B (the “CMs”). 

  

			
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“Tellabs and/or CMs” shall be collectively or disjunctively referred to herein as “CUSTOMER.” In addition to Tellabs, Supplier agrees to
extend all the terms of this Agreement, including pricing terms, to the CMs listed in Exhibit B. Tellabs shall remain fully liable to Supplier for the activities of each CM, and for each CM’s compliance with the terms hereof, and any breach
committed by any CM shall be deemed a breach of this Agreement by Tellabs, except that in no event will Tellabs be responsible for the payment obligations of the CMs. Supplier acknowledges that it shall look only to the CMs for payment of purchase
orders issued by the CMs. 
 4. PRICES 
 4.1 Supplier represents and warrants that, during the term of this Agreement, the purchase price and the material terms and conditions of sale for the sale of each of the Products provided to CUSTOMER under
this Agreement is and shall be, [...***...]. If at any time during the term of this Agreement, [...***...]. 
 4.2 The per
unit price of the Product is set forth in the attached Exhibit A. 
 4.2.1 No adjustments will be made for [...***...], except
as mutually agreed by the parties in writing. 
 4.2.2 From time to time a need may arise whereby CUSTOMER and the Supplier may
mutually agree upon specific Product pricing based on a specific CUSTOMER bid or CUSTOMER opportunity. The parties will negotiate in good faith to agree upon Product pricing to be used for these unique circumstances. 
 4.2.3 In the event that the Product does not remain competitive in terms of technology, design, quality or price, compared to similar goods
available to CUSTOMER, the parties agree to make commercially reasonable efforts, in good faith, to agree upon any changes that are necessary to cause the Product to be competitive. 
 4.2.4 Upon the effective date of any [...***...] price reduction set forth in Exhibit A or any other general price reduction instituted by
Supplier, the reduction shall apply to any open purchase orders of Products not yet delivered, in addition to all newly issued purchase orders. 
 5. VOLUME ADJUSTMENTS 
 5.1 CUSTOMER shall not be subject to [...***...] based on
the quantity of Products purchased hereunder. 
 5.2 Any forecasts or annual usage figures provided hereunder are “best
judgment” figures which are subject to change as business conditions change and are not to be construed as a commitment. Supplier shall rely upon such figures at its own risk. 
 5.3 Notwithstanding any provision herein or any other verbal or written requirements or provisions, CUSTOMER shall not be obligated to any
specific dollar expenditure. 
  

			
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 6. FORECASTS AND PURCHASE ORDERS.

 6.1 Rolling Forecast. Upon the Effective Date, and on or before [...***...] thereafter during the Term, Tellabs shall make
reasonable efforts to cause the CMs to provide Supplier with a [...***...] forecast of Products. [...***...]. 
 6.2 Purchase
Orders. Upon the Effective Date and during the Term., CUSTOMER shall provide Supplier with Purchase Orders for Products, based on the Lead Time for such Products, which shall create a binding obligation to purchase such Products from Supplier
within the Lead Time for the applicable Products. Each Purchase Order shall specify: (a) the quantity and part number of Products being ordered; (b) the applicable price; (c) the requested delivery date; (d) the delivery
destination; and, (e) any special shipping instructions regarding the Products. Each Purchase Order shall be subject to acceptance by Supplier, such acceptance not to be unreasonably withheld or delayed. Supplier shall make commercially
reasonable efforts to provide written notice to CUSTOMER of any rejection of a CUSTOMER Purchase Order within [...***...] of Supplier’s receipt thereof but in no event greater than [...***...], and such Purchase Order shall be
deemed accepted by Supplier if no such rejection notice is provided to CUSTOMER prior to the expiration of such [...***...]. In the event of a conflict between the pricing in an accepted Purchase Order and the pricing set forth on Supplier
quotes (the quoted price), the quoted price shall control. Furthermore, it is agreed that each such Purchase Order shall be governed by the provisions of this Agreement and that none of the provisions of a Purchase Order, or Supplier’s
acknowledgement thereof (either printed, stamped, typed or written), if any, shall be applicable to the purchase if any of the foregoing is in addition to or in conflict with this Agreement. A general or standard acknowledgment of any such order or
the making of delivery with respect thereto shall in no case be construed as an amendment to this Agreement. 
 7.
DELIVERY, ACCEPTANCE, RESCHEDULING AND CANCELLATION. 
 7.1
Delivery Performance. 
 Supplier shall ensure prompt delivery of Products purchased under this Agreement, with a goal of 100% on time delivery. Products
shall be deemed to have been delivered “On Time” if they have been delivered [...***...] before the mutually agreed delivery date and [...***...] after such date. Any delivery that does not arrive at the specified location,
does not contain the quantity of Products specified or does not contain the correct part number, will be considered late. 
 Supplier shall notify CUSTOMER
in writing (including by email) if it becomes aware that any Product delivery will be late. If any Products are not delivered on time, CUSTOMER may exercise any of the following remedies: 
 (a) Require Supplier to pay the cost to expedite delivery (including freight, expedite charges, Supplier overtime and any charges associated with
piece part expedites). 
  

			
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 (b) Cancel any pending purchase orders for late items that remain undelivered without liability
and elect, at CUSTOMER’s sole discretion, to either (A) retain and pay for any Products previously delivered (if any) or (B) return any such late-delivered Products to Supplier at Supplier’s sole expense, without any liability of
CUSTOMER; or 
 Overall on time delivery will be measured [...***...] for all shipments delivered to CUSTOMER within the given time period. Upon
receiving written notification by Tellabs that [...***...] of Products have been delivered on-time for a given time period, an executive officer of Supplier in Supplier’s manufacturing operations shall participate in a corrective action
meeting to establish a mutually agreeable corrective action plan within such time as is commercially reasonable under the circumstances. 
 7.2 Acceptance. 
 CUSTOMER shall accept or reject each shipment within [...***...] of delivery. All Products shall be deemed accepted
by CUSTOMER unless CUSTOMER provides Supplier with written notice of rejection, specifying the reason that such shipment is non-conforming or otherwise does not meet the requirements set forth in this Agreement, within [...***...] of delivery.

 7.3 Rescheduling and Cancellation. 
 Any rescheduling or cancellation of orders of Products by CUSTOMER must conform to the terms set forth below: 
 (a) During the period that is [...***...] or less prior to the scheduled delivery date of an order, CUSTOMER shall not be permitted to modify, reschedule or cancel any order. 
 (b) During the period [...***...] but more than [...***...] prior to the scheduled delivery date of an order, CUSTOMER may modify
and/or reschedule such order or part thereof. CUSTOMER will use commercially reasonable efforts to reschedule delivery of the complete order within [...***...] following the originally scheduled delivery date, but shall not reschedule any
delivery more than [...***...] after the originally scheduled delivery date of such items. CUSTOMER may push out the scheduled delivery date up to [...***...], provided that the cumulative effect is not greater than [...***...]
after the originally scheduled delivery date. Entropic shall use commercially reasonable efforts to accommodate a request by CUSTOMER to re-schedule any delivery to an earlier date. CUSTOMER may cancel prior rescheduled orders or part thereof;
cancellation charges shall be determined per the cancellation schedule listed in Exhibit A 8(d). 
 (c) Outside [...***...],
CUSTOMER may modify, reschedule [...***...] or cancel any order or part thereof at no charge to CUSTOMER. Multiple schedule changes are allowed. 
 (d) During the period [...***...] but more than [...***...] prior to the scheduled delivery date of an order, CUSTOMER may cancel orders or portions of orders per the below schedule. Supplier agrees
to divert completed material and work in process to other 

  

			
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customers wherever possible in order to minimize charges. CUSTOMER will pay the applicable cost set forth below for any order or portion of order so
canceled. Additionally, Supplier agrees to use commercially reasonable efforts to stop processing material within [...***...] of cancellation but in no event greater than [...***...]. 
 Cost incurred for Product inventory and work-in-process intended to service packaged device deliveries shall be as follows: 
  

			
	Stage of Completion	  	Liability of CUSTOMER Upon Order Cancellation
		
	[...***...]	  	 [...***...]

 7.4 Modifications to Orders. Supplier will use commercially reasonable efforts to maintain
adequate capacity to supply CUSTOMER with a [...***...] sustainable increase in upside demand over the aggregate purchase quantities forecasted by the CMs. 
 In the event CUSTOMER requires a modification in excess of the percentage set forth above, Supplier shall make commercially reasonable efforts to accommodate such modification. 
 8. SHIPPING. 
 8.1
Shipping Arrangements. Supplier shall ship Products in accordance with shipping instructions provided by CUSTOMER. CUSTOMER shall specify the CUSTOMER Product part number and quantity, ship to address, ,carrier, and other information required
for the shipment. All Products shall be packaged for shipment as specified by CUSTOMER’s packaging instructions for each CUSTOMER Product. CUSTOMER shall pay or reimburse Supplier for all freight, duty, taxes or other charges associated with
shipment of Products by Supplier. 
 8.2 Shipping Method; Transfer of Title. All shipments of Products by Supplier under this
Agreement shall be made EXW Entropic shipping facility (INCOTERMS 2000). Accordingly, title to and risk of loss of Products shipped hereunder shall be transferred to CUSTOMER at the shipping point. 
 9. DISCONTINUANCE OF PRODUCTS; ENGINEERING AND MANUFACTURING
CHANGES. 
 9.1 Discontinuance of Products. 
 In the event that Supplier chooses to discontinue the manufacturing of any of the products to be sold hereunder, Supplier shall provide CUSTOMER with not less than [...***...] prior written notice of such
manufacturing discontinuance, followed by an additional [...***...] period during which last time buy deliveries may be scheduled. Such last time buys shall be [...***...]. 
  

			
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 9.2 Engineering or Manufacturing Changes. 
 (a) Supplier shall make no change to a Product that would affect the form, fit, or function of such Product without having obtained the prior
written consent of CUSTOMER, which consent shall not be unreasonably withheld. 
 (b) CUSTOMER may request changes to such
specifications from time to time through the proposal of an Engineering Change Order (ECO), issued to Supplier. If Supplier agrees to such ECO, then the Parties shall negotiate appropriate changes in pricing, schedule, and other terms that are
impacted by such ECO. 
 10. WARRANTY AND DISCLAIMERS. 
 10.1 Limited Product Warranty. For a period of [...***...] after the date of shipment of Products to CUSTOMER (the “Warranty
Period”) Supplier warrants that each Product furnished under this Agreement shall: (a) materially conform to the Specifications for such Product; and, (b) be free from defects in design, material and workmanship that
materially affect performance and functionality. This warranty will be valid only during the Warranty Period. Supplier shall, at its option, and as CUSTOMER’s sole and exclusive remedy for any breach of this warranty, repair or, replace the
affected Product(s) or, if neither repair nor replacement is commercially reasonable, Supplier shall refund the monies paid by CUSTOMER for any defective Product for which CUSTOMER invoked this warranty by providing notice to Supplier within the
applicable warranty period. CUSTOMER shall notify Supplier in writing of any defects and obtain Supplier’s approval pursuant to Section 11 before returning any Product. The warranty period for repaired or replacement Products shall be the
lesser of [...***...] from the date of shipment or [...***...]. The remedies set forth in this Section shall be Entropic’s sole liability and CUSTOMER’s sole and exclusive remedies for any breach of the limited warranty set
forth above. 
 10.2 Infringement Warranty. Supplier warrants that, as of the Effective Date it has no actual knowledge that the
Products, or uses of the Products as specified in the documentation, infringe upon the patent, copyright, trade secret or trademark of any third party. If, following the Effective Date, Supplier obtains such actual knowledge, Supplier shall promptly
notify CUSTOMER in writing thereof; but such situation shall not constitute a breach of warranty by Supplier hereunder. For any breach of the foregoing warranty, Supplier’s sole liability and CUSTOMER’s sole and exclusive remedy shall be
Supplier’s indemnification obligation in Section 18. 
 10.3 Exceptions. The warranty provided in Section 10.1 above
will be void as to such Product that: (i) fails, malfunctions or is damaged as a result of improper handling, installation, maintenance, storage, removal, modification or repair other than by Supplier or its agent(s); or (ii) is
accidentally damaged, subjected to abuse (including electrostatic discharge) or improper use, or is otherwise used not in accordance with its intended purpose, other than by Supplier or its agent(s); or ( iii) is altered such that Supplier is unable
to verify the defect with its (or its manufacturer’s) normal test equipment other than by Supplier or its agent(s). In no event will CUSTOMER or the carrier transporting the Products be deemed Supplier’s agent. 
 10.4 GENERAL DISCLAIMER. FOR ALL SUPPLIER PRODUCTS 

  

			
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PROVIDED HEREUNDER, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, SUPPLIER DISCLAIMS ALL WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, OR ANY AFFIRMATION OF
FACT OR REPRESENTATION, INCLUDING THE WARRANTIES OF MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. 
 10.5 HIGH RISK ACTIVITIES
DISCLAIMER. NEITHER THE PRODUCTS, NOR ANY GOOD THAT INCORPORATES THE PRODUCTS, ARE DESIGNED, MANUFACTURED OR INTENDED FOR USE IN HAZARDOUS ENVIRONMENTS REQUIRING FAIL-SAFE PERFORMANCE, SUCH AS IN THE OPERATION OF NUCLEAR FACILITIES, AIRCRAFT
NAVIGATION OR AIRCRAFT COMMUNICATIONS SYSTEMS, AIR TRAFFIC CONTROL, DIRECT LIFE SUPPORT MACHINES, OR WEAPONS SYSTEMS, IN WHICH THE FAILURE OF THE PRODUCTS AND/OR GOODS INCORPORATING THE PRODUCTS, COULD LEAD DIRECTLY TO DEATH, PERSONAL INJURY OR
SEVERE PHYSICAL OR ENVIRONMENTAL DAMAGE (“HIGH RISK ACTIVITIES”). SUPPLIER SPECIFICALLY AND EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTY OF FITNESS FOR HIGH RISK ACTIVITIES. 
 11. RETURNS. Any returns of Products during the Warranty Period must be approved in writing by Supplier prior to return of Products
by CUSTOMER. Supplier shall provide CUSTOMER with a Return Material Authorization (RMA) number [...***...] of Supplier’s receipt of a written request by CUSTOMER. Requests for RMAs must specify the Product, the Product serial number, and
the reason for return. Products must be returned in the same or equivalent packaging as originally provided by Supplier, with the RMA number included on the shipping container. Products returned without an RMA number may be refused by Supplier.
CUSTOMER shall be responsible for any shipping costs associated with returning the Product to Supplier; Supplier shall be responsible for any shipping costs associated with shipping the repaired or replacement Product to CUSTOMER. 
 12. FORCE MAJEURE. Neither Party shall be liable in damages for failure to comply with its obligations to the extent
that its performance is prevented by causes beyond its reasonable control including acts of God or of the public enemy, acts of any governmental authority, fires, war, riots, terrorist acts, unavailability or shortages of electricity or other
utilities, floods, unusually severe weather, epidemics, quarantine restrictions, strikes, labor disputes or shortages of labor, freight embargoes, or inability to secure necessary parts and materials. 
 13. LIMITATION OF LIABILITY. WITH THE EXCEPTIONS OF A BREACH OF THE NDA (AS DEFINED BELOW) AND FOR
SUPPLIER’S LIABILITY ARISING FROM A BREACH OF THE WARRANTY SET FORTH IN THE FIRST SENTENCE OF SECTION 10.2, TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW: (I) SUPPLIER SHALL NOT BE LIABLE FOR ANY INCIDENTAL, INDIRECT, EXEMPLARY,
SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF REVENUE OR PROFITS) ARISING FROM OR CAUSED, DIRECTLY OR INDIRECTLY, BY THE USE OF THE SUPPLIER 

  

			
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PRODUCTS BY CUSTOMER OR ANY CUSTOMER OF CUSTOMER, OR BY THE PERFORMANCE OR FAILURE OF THE SUPPLIER PRODUCTS TO PERFORM, OR BY ANY OTHER ACT OR OMISSION,
OR BY ANY OTHER CAUSE ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT; AND, (II) WITH THE EXCEPTIONS OF A BREACH OF THE NDA AND FOR SUPPLIER’S LIABILITY ARISING FROM A BREACH OF THE WARRANTY SET FORTH IN THE FIRST SENTENCE OF SECTION 10.2,
IN NO EVENT SHALL SUPPLIER’S LIABILITY TO CUSTOMER FOR ANY CLAIM ARISING FROM OR RELATING TO THIS AGREEMENT, WHETHER IN CONTRACT OR TORT OR OTHERWISE, [...***...]; PROVIDED THAT, NOTWITHSTANDING THE FOREGOING, SUPPLIER’S
LIABILITY TO INDEMNIFY CUSTOMER UNDER SECTION 18.1 SHALL BE [...***...]. 
 14. PAYMENT AND
TAXES. 
 14.1 Payment. Supplier will invoice CUSTOMER for amounts due for the Products upon shipment. Tellabs and
its CMs shall pay Supplier within thirty (30) days of Supplier’s invoice date. CUSTOMER agrees to accept partial shipments; provided that with the exception of any disputes between the parties in good faith, Supplier shall only invoice
CUSTOMER for such quantity actually delivered to CUSTOMER’s carrier. 
 14.2 Late Payment. Any payment not paid when due, which
is not the subject of a bona fide dispute between the parties in good faith, may accrue interest from the date due until the date paid at a rate of [...***...] per annum, or the maximum rate allowed under applicable law, whichever is less.

 14.3 Taxes. All prices are exclusive of federal, state, or local sales, use, excise, or similar taxes applicable to the sale of the
Products sold pursuant to this Agreement. CUSTOMER shall pay all such taxes (except any taxes based on Supplier’s income). 
 15.
COMPLIANCE. Each Party shall comply with all applicable laws and regulations, statutes, treaties, administrative orders and court orders, including export laws, as well as (i) the laws and regulations of other applicable countries
which prohibit export or diversion of certain technical Products to certain countries and individuals and any other applicable law, and (ii) the U.S. Foreign Corrupt Practices Act and Anti-Boycott Regulations in their respective dealings with the
Products and in performing their respective obligations under this Agreement. CUSTOMER shall not export or re-export, or request Supplier to export or re-export, any Products, including all Products and/or technical data received from Supplier or
any direct product thereof, directly or indirectly, to any country, entity or person prohibited by the U.S. Government. CUSTOMER acknowledges that compliance with U.S. export laws may cause delays in shipments and/or prohibit Supplier from exporting
certain Products to certain countries and entities for certain uses. In no event shall Supplier be liable for any such delays or prohibition. 
  

			
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 16. TERM AND TERMINATION. 
 16.1 Term of Agreement. The term of this Agreement begins on the Effective Date and will continue, unless earlier terminated as described herein,
for a period of [...***...]. (the “Initial Terns”). 
 16.2 Termination for Cause by Either Party.
Either Party may terminate this Agreement immediately, upon written notice: (i) if the other Party breaches the NDA; (ii) if the other Party breaches any provision of this Agreement and fails to cure such breach within thirty
(30) days after receipt by the breaching Party of written notice from the non-breaching Party describing such breach; (iii) upon the institution by or against the other Party of insolvency, receivership, or bankruptcy proceedings or any
other proceedings for the settlement of the other Party’s debts, which proceedings are not stayed or dismissed within sixty (60) days after institution; (iv) upon the other Party’s making an assignment for the benefit of
creditors; or (v) upon the other Party’s dissolution or ceasing to conduct business. 
 16.3 Effect of Termination. Upon
termination or expiration of this Agreement, CUSTOMER may elect to [...***...] Upon any termination or expiration of this Agreement: (a) all licenses granted by Supplier hereunder shall immediately terminate; except that CUSTOMER
may continue to distribute, subject to the terms of this Agreement, any Products that are in CUSTOMER’s inventory as of the effective date of such termination or expiration or that later come into CUSTOMER’s inventory as a result of the
operation of subsection (i) of this Section 16.3; and, (b) each Party shall return to the other Party any Confidential Information (defined below) of the other Party in such Party’s possession, and such party shall purge all of
the other Party’s Confidential System from such Party’s electronic systems. Notwithstanding the foregoing, the termination or expiration of this Agreement shall not affect any licenses or sub-licenses properly granted by CUSTOMER to its
end user customers in connection with this Agreement either: (1) prior to the effective date of such termination or expiration; or (2) thereafter, relative to those Products described by this Section 16.3 that either are in
CUSTOMER’s inventory as of the effective date of such termination or expiration or that later come into CUSTOMER’s inventory as a result of the operation of subsection (i) of this Section 16.3. Any such licenses under either
subsection (1) or (2) above of this Section 16.3 shall continue to be in effect in accordance with their terms notwithstanding any such termination or expiration of this Agreement. 
 17. SURVIVAL. All payment obligations of CUSTOMER hereunder and the following provisions of this Agreement shall survive any
termination or expiration of this Agreement: Sections 1, 10, 11, 12, 13, 14, 16.3, 17, 18, 22, 23.1, 23.2 (only regarding CUSTOMER’s distribution rights), 23.3 and 25. 
 18. INDEMNITY. 
 18.1 Infringement Indemnification by Supplier. Supplier shall defend, indemnify and hold CUSTOMER, its Affiliates (as listed in the MLA) and their respective officers, directors, employees, agents and representatives, harmless from
and against any and all damages, liabilities, judgments, losses, costs and expenses (including attorneys’ fees) suffered or incurred by CUSTOMER or the other designated indemnitees in connection with any claim, demand, suit or other legal
action (each, a “Claim”), brought by a third party against CUSTOMER based upon the 

  

			
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actual or alleged infringement or misappropriation of Intellectual Property Rights by the Products and/or the binary files that Section 23.2 below
authorizes CUSTOMER to provide to third parties together with the Products. 
 (a) Additional Actions. In the event of a Claim or if
Supplier reasonably believes a Claim is likely, Supplier may, in its sole discretion: (i) modify the infringing Product so that it is no longer infringing but of equivalent form and fit, and is functionally equivalent; (ii) replace the
Product with a non-infringing version of the Product which is a form, fit and functionally equivalent product; (iii) obtain a license for CUSTOMER to continue using the Product as provided in this Agreement; or, (iv) in the event that none
of the foregoing are commercially reasonable, terminate this Agreement. In the event of such termination, Supplier agrees to refund to CUSTOMER the amount actually paid by CUSTOMER to Supplier for the infringing Product(s). 
 (b) Exclusive Remedies and Limitations. The obligations and remedies set forth in this Section 18.1 shall be the sole and exclusive remedies
of CUSTOMER for the infringement of third-party rights by the Product. Supplier shall have no obligation under this Section 18.1 for any Claims which result from or arise in connection with: (i) any use of the Product in combination with
third party software and/or hardware or other technology not provided by Supplier to the extent such infringement would not have occurred but for such combination; (ii) modification of the Product by CUSTOMER or any third party to the extent
such infringement would not have occurred but for such modification; (iii) any use, except for its intended purpose as specified in the MLA and/or the applicable documentation of such Product; (iv) use of the Product that exceeds the scope
of the licenses expressly granted in this Agreement; provided that such exception shall not apply to the extent the Product is used within the scope of the licenses granted in this Agreement; (v) use of other than the latest update or upgrade
of the Product once such update or upgrade has been provided by Supplier to CUSTOMER at no cost or expense to CUSTOMER, provided that (1) such update or upgrade yields a product of the same form and fit and which is functionally equivalent,
(2) CUSTOMER has been afforded a reasonable period of time to implement such update or upgrade if the Claim would have been avoided by such use of such update or upgrade, (3) Supplier has notified CUSTOMER in writing that the usage of such
update or upgrade is necessary to avoid possible liability for infringement; and (4) relative to each Product distributed by CUSTOMER prior to Supplier’s provision of a given update or upgrade or prior to expiration of the reasonable
period of time described above by subsection (b)(v)(2) of this Section 18.1 for a given update or upgrade, this subsection (b)(v) of this Section 18.1 shall not be construed to limit any rights of CUSTOMER or obligations of Supplier under
this Section 18.1 relative to such previously distributed Product as a result of any failure to use such given update or upgrade or (vi) use of the Product not in compliance with applicable laws. Supplier shall have no liability under this
Section 18.1 for increased damages for willful infringement by CUSTOMER (or any attorneys fees associated with such willful infringement) to the extent that the basis for the increased damages award, as determined by the court, is the result of
the conduct, acts or omissions of CUSTOMER with the willful intent of engaging in infringement. 
 18.2 By Customer. CUSTOMER shall
defend, indemnify and hold Supplier, its officers, directors, employees, agents and suppliers, harmless from and against any claim 

  

			
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(including for any product liability, whether based on negligence, strict liability or otherwise), action, suit, damages, liabilities, losses and expenses
(including reasonable attorneys’ fees) suffered or incurred by Supplier: (i) in connection with any damage, defect or injury actually or allegedly caused by or related to any CUSTOMER Devices or any CUSTOMER products that incorporate the
Products, which are not attributable to the Products; or, (ii) that is based on CUSTOMER’s use, sale, or distribution of CUSTOMER products that incorporate the Products but not based on the Products; or (iii) in connection with any
allegation that the CUSTOMER Specifications, CUSTOMER Devices, or CUSTOMER products that incorporate the Products but not the Products themselves, infringe on the Intellectual Property Rights or other proprietary rights of any third party; or
(iv) in connection with any use of a Product, by CUSTOMER or any third party that receives such Product from CUSTOMER, in any High Risk Activity. 
 18.3 Conditions. The obligations set forth in Section 18.1 and 18.2 are contingent upon: (i) the Party seeking indemnification (the “Indemnified Party”) giving prompt written
notice to the Party providing the indemnification (the “Indemnifying Party”) of any such Claim; (ii) the Indemnified Party allowing the Indemnifying Party to have sole control of the defense and related settlement
negotiations for the Claim; provided that the Indemnifying Party shall have no right to incur any liability on behalf of the Indemnified Party without the Indemnified Party’s prior written consent; and (iii) the Indemnified Party fully
assisting and cooperating in the defense and settlement negotiations as reasonably requested by the Indemnifying Party, so long as The Indemnifying Party pays the Indemnified Party’s out-of-pocket expenses associated with such assistance and
cooperation. Subject to the Indemnifying Party’s right to control the defense and settlement of such Claims, the Indemnified Party may, at its cost and expense, engage its own counsel to participate in the defense and settlement of such Claims
and to advise the Indemnifying Party regarding any Claims. 
 19. SUPPLIER DEVELOPMENT:
QUALITY CONTROL 
 Supplier agrees to participate in CUSTOMER’s supplier development programs. In addition, Supplier
will institute a quality and inspection system which incorporates IS09001/TL9001 and such other standards and procedures as mutually agreed by the parties in writing. 
 20. TECHNICAL SUPPORT AND INFORMATION 
 (a) In addition to its other duties set forth herein, Supplier shall provide technical support services to Tellabs, as described in the attached Exhibit C. 
 (b) Supplier acknowledges that CUSTOMER will need technical information for uses such as design., validation, manufacture, benchmarking, assembly,
and service of the Product. Supplier will cooperate to create, maintain, update, and deliver technical information relating to the Product and its manufacture as needed. Notwithstanding any other agreement between Supplier and CUSTOMER, Supplier
will not withhold delivery of such information or documents needed by CUSTOMER and will not impose legal restrictions on CUSTOMER’s use thereof, other than under the NDA. 
  

			
	 Page 12 of 22
	  	

 21. TRADEMARK RIGHTS 
 No right is granted hereunder for either party to use the trademark of the other party, except as specifically permitted in writing by such other party. Willful use of a
party’s trademark contrary to the provisions of the Agreement shall constitute a material breach of this Agreement. 
 22.
CONFIDENTIAL INFORMATION 
 The Mutual Confidentiality Agreement between the parties, bearing an effective date of
September 7, 2004 (the “NDA”) is hereby incorporated by reference herein. 
 23. INTELLECTUAL
PROPERTY 
 23.1 Ownership. Subject to the rights expressly granted to CUSTOMER hereunder, Supplier, or its
licensors, shall retain all rights, title and interest in and to ownership of all industrial rights and Intellectual Property Rights embodied in or related to the Specifications, the Process Technology, and the Products. 
 23.2 License. Subject to the terms of this Agreement, Supplier hereby grants CUSTOMER (i) a limited, non-exclusive, non-transferable (except
as expressly permitted herein), worldwide royalty-free license to use Supplier’s Intellectual Property Rights embodied in the Products for the sole purpose of incorporating the Products into CUSTOMER’s products and for marketing and
distributing such CUSTOMER’s products to CUSTOMER’s customers including, without limitation, resellers, distributors, and/or end users, provided that CUSTOMER enters into a binding agreement with each of the foregoing that protects
Supplier’s Confidential Information and Intellectual Property Rights at least to the same extent as CUSTOMER protects its own Confidential Information and Intellectual Property Rights in the relevant transactions, and (ii) a limited,
non-exclusive, non-transferable (except as expressly permitted herein), worldwide royalty-free license under Supplier’s intellectual Property Rights embodied in the Products to grant sublicenses to CUSTOMER’s customers, including without
limitation resellers, distributors, and/or end users, for the sole purpose of marketing, distributing and using the Products as incorporated into CUSTOMER’s products. Each party retains all rights not expressly granted to the other party
hereunder. In addition, and solely in conjunction with CUSTOMER’s right to incorporate, market and distribute the Products as set forth in this Section 23.2, CUSTOMER shall have the right: (a) to include, market and distribute in
CUSTOMER’s products, the binary files created by CUSTOMER pursuant, if applicable, to its previously executed materials license agreement with Supplier (the “MLA”), provided that such binary files were properly created
as authorized under the MLA ; and (b) grant sublicenses to CUSTOMER’s customers, including without limitation resellers, distributors, and/or end users, for the sole purpose of marketing, distributing and using such binary files as
included in CUSTOMER’s products. In connection with any distribution of such binary files, CUSTOMER agrees that Supplier shall have no liability of any nature whatsoever regarding such binary files, other than any liability based on the source
code as initially furnished by Supplier to Tellabs pursuant to the terms of the MLA. For avoidance of doubt, such binary files may only be provided to third parties together with the Products, and may not be provided as standalone items. 

 

			
	 Page 13 of 22
	  	

 23.3 Restrictions. To the extent that the Products consist of software or firmware
(“Supplier Code”), except as expressly set forth herein or the MLA, this Agreement shall be not construed to grant to CUSTOMER any right, title, or interest in any Intellectual Property Rights embodied in or associated with
the Supplier Code, or any right to copy, modify or lease the Supplier Code. Except as permitted under applicable law, under no circumstances shall CUSTOMER, nor shall CUSTOMER permit any third person to, reverse assemble, reverse compile, reverse
translate or otherwise reverse engineer the Supplier Code or otherwise attempt to learn or derive the source code, structure, algorithms or ideas underlying the Supplier Code. 
 24. QUALITY CERTIFICATION. 
 Unless Supplier furnishes Tellabs with a written waiver, signed by [...***...], upon signing this Agreement, Supplier shall be fully ISO 9000 compliant within [...***...] of the Effective Date. Supplier shall be ISO 9000
certified within [...***...] of the Effective Date and shall fully cooperate with [...***...] mandatory source inspections, as [...***...] sees fit. 
 25. GENERAL. 
 25.1 Notices. All notices and other communications pursuant to
this Agreement shall be in writing and shall be deemed given if delivered personally, sent by facsimile, sent by nationally recognized overnight courier or mailed by registered or certified mail (return receipt requested), postage prepaid, to the
Parties at the addresses set forth below or to such other address as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance with this Section 25.2. Any such notice or communication shall be deemed
to have been delivered and received (a) in the case of personal delivery, on the date of such delivery, (b) in the case of facsimile, on the date sent if confirmation of receipt is received, (c) in the case of a nationally recognized
overnight courier in circumstances under which such courier provides next business day delivery, on the next business day after the date when sent and (d) in the case of mailing, on the third business day following that on which the piece of
mail containing such communication is posted: 
  

			
	If to CUSTOMER:	  	Tellabs Operations, Inc.
		  	1465 N. McDowell Blvd.
		  	Petaluma, CA 94954
		  	Fax: 707-794-7878
		  	Attention: Legal Department
		  	e-mail:
	If to Supplier:	  	Entropic Communications, Inc.
		  	9276 Scranton Rd, Suite 200
		  	San Diego, CA 92121
		  	Fax: 858-546-2411
		  	Attention: Customer Service
		  	e-mail: meconomy@entropic.com

  

			
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	  	***Confidential Treatment Requested

 or to such other address as the person to whom notice is given may have previously furnished to the
others in writing in the manner set forth above. 
 25.2 Governing Law and Jurisdiction and Disputes. This Agreement shall be governed
by and interpreted solely and exclusively in accordance with the laws of the State of California without regard to the conflicts of laws provisions thereof. The United Nations Convention on Contracts for the International Sale of Goods shall not
govern this Agreement and is hereby specifically disclaimed. In the event that Supplier initiates legal proceedings to enforce the terms of this Agreement, it may only do so in Cook County, Illinois; in the event that Tellabs initiates such legal
proceedings, it may only do so in San Diego County, California. Each Party hereby irrevocably consents to such jurisdiction and venue, and irrevocably waives any objections thereto. 
 25.3 Injunctive Relief. The Parties agree that in such cases where irreparable damage would occur and the Parties would not have any adequate
remedy at law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or where otherwise breached, each Party shall be entitled to seek injunctive or other equitable relief, wherever such
Party deems appropriate, to prevent such breaches of this Agreement or to so protect such Party’s rights under this Agreement. The foregoing remedy is in addition to any other remedy to which the Party seeking such equitable relief is entitled
to at law. 
 25.4 Assignment. Neither Party shall assign or transfer this Agreement or all or any part of its rights hereunder, by
operation of law or otherwise, without the prior written consent of the other Party, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, either Party may assign this entire Agreement, including all of such
Party’s rights and obligations under this Agreement without the consent of the other Party: (i) to any Affiliate of the assigning Party; (ii) to the surviving Entity in the event of a merger, acquisition, or consolidation involving
the assigning Party; or (iii) to the successor or purchaser of any portion of the business of the assigning Party resulting from a reorganization, spin-off, or sale of all or a portion of all the assets of any business, division, or group of
assigning Party, provided, however, that any such Affiliate, surviving Entity, successor or purchaser agrees in writing to be bound by the terms of this Agreement and is no less adequately capitalized than Supplier. In the event of any
of the foregoing assignments, the assigning Party will have no further obligations or liability to the other Party under this Agreement except for obligations and liabilities that accrued before such assignment. Any unauthorized assignment or
transfer shall be null and void. This Agreement shall be binding upon and inure solely to the benefit of each Party and its successors and permitted assigns. 
 25.5 Entire Agreement. This Agreement (including any Exhibits attached hereto and the NDA, each of which are incorporated by reference into this Agreement) constitutes the entire agreement between the Parties
with respect to the subject matter of this Agreement and supersedes all other prior and contemporaneous agreements and understandings both written and oral between the Parties with respect to such subject matter. Notwithstanding the foregoing, this
Agreement is not intended to supersede or replace any of the pre-existing license agreements between CUSTOMER and Supplier that are related to the Products, including, without limitation, the MLA, or any other agreements that are otherwise expressly
referenced in this Agreement, such license and other agreements to remain in full force and effect in accordance with their terms. 
  

			
	 Page 15 of 22
	  	

 25.6 Severability. If any provision of this Agreement or the application thereof to any person or
circumstance is held invalid or unenforceable, the remainder of this Agreement and the application of such provision to other persons or circumstances shall not be affected thereby and to such end the provisions of this Agreement are agreed to be
severable. In such event, the affected provision shall be amended to achieve as nearly as possible the same economic effect as the original provision. 
 25.7 Amendments. This Agreement may be amended only by an instrument in writing signed by authorized representatives of both Parties. 
 25.8 Construction. The descriptive headings in this Agreement are inserted for convenience of reference only and are not intended to be part of or
to affect the meaning or interpretation of this Agreement. All Section and Exhibit references in this Agreement are to Sections and Exhibits, respectively, of or to this Agreement unless specified otherwise. Unless expressly stated otherwise, when
used in this Agreement the word “including” means “including but not limited to.” 
 25.9 Waiver. Any waiver of
compliance with any obligation, covenant, agreement, provision or condition of this Agreement or consent pursuant to this Agreement shall not be effective unless evidenced by an instrument in writing executed by the Party to be charged. Any waiver
of compliance with any such obligation, covenant, agreement, provision or condition of this Agreement shall not operate as a waiver of, or estoppel with respect to, any subsequent or other non-compliance. 
 25.10 Relationship. Nothing contained in this Agreement shall be deemed or construed as creating a joint venture or partnership between the
Parties. Neither Party is by virtue of this Agreement authorized as an agent, employee, or legal representative of the other Party, and the relationship of the Parties is, and at all times shall continue to be, that of independent contractors.

 25.11 Attorneys’ Fees. If any action at law or in equity, including an action for declaratory relief or injunctive relief is
brought to enforce or interpret the provisions of this Agreement, the prevailing Party shall be entitled to recover its court costs and reasonable attorneys’ fees from the non-prevailing Party, in addition to any other relief to which the
prevailing Party may be entitled. 
 25.12 Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which shall constitute one and the same agreement. 
 25.13 Ambiguities. The Parties have
participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the Parties, and no presumption or burden of
proof shall arise or disfavoring any Party by virtue of the authorship of any provisions of this Agreement. 
  

			
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 25.14 Execution. This Agreement may be executed by facsimile signatures and such signature shall
be deemed binding for all purposes of this Agreement, without delivery of an original signature being thereafter required. 
 IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute and deliver this Agreement as of the date first set forth above. 
  

									
	ENTROPIC COMMUNICATIONS, INC.	 		 	TELLABS OPERATIONS, INC.
					
	Signed:	 	 /s/ Patrick C. Henry
	 		 	Signed:	 	 /s/ John Brots

	Name:	 	Patrick C. Henry	 		 	Name:	 	John Brots
	Title:	 	President and CEO	 		 	Title:	 	Executive V.P. – Global Operations
	Date:	 	7/10/06	 		 	Date:	 	7/12/06

  

			
	 Page 17 of 22
	  	

 EXHIBIT A 
 PRODUCTS AND PRICING 
 [...***...] 
  

			
	 Page 18 of 22
	  	***Confidential Treatment Requested

 EXHIBIT B 
 TELLABS’ CONTRACT MANUFACTURERS 
 [...***...] 
  

			
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	  	***Confidential Treatment Requested

 EXHIBIT C 
 TECHNICAL SUPPORT 
 Entropic Obligations. 
  

	 	1.1.	Support. During the warranty period, Supplier shall provide Support to CUSTOMER in the event that CUSTOMER is not able to identify and resolve an End-User reported problem.
Supplier shall have no responsibility with regard to Support directly to any End-User. Support provided by Supplier to CUSTOMER shall include the following: 

  

	 	1.1.1	Technical Telephone Support. Supplier shall provide telephone assistance with respect to the Products within [...***...] after CUSTOMER’s designated
representative(s) contacts Supplier’s technical support engineer. Technical telephone support shall be available between 8:00 am and 5:00 pm Pacific Time, Monday through Friday, excluding US holidays. CUSTOMER’s personnel will be requested
to provide a name, company name and any applicable call back numbers at the time the call is placed. The information and level of detail that CUSTOMER provides to Supplier technical engineers will reduce the amount of time to troubleshoot
CUSTOMER’s reported problem. Supplier shall review CUSTOMER’s troubleshooting methods and results to determine if Supplier’s products are related to the failure. If so, Supplier shall work with CUSTOMER to suggest the proper course of
action. Mailing shall make reasonable commercial efforts to track the reported problem and identify a reasonable workaround or resolution. CUSTOMER shall also report any engineering or quality complaints received by End-Users to Supplier via the
process described in this section. 

  

	 	1.1.2	Email Support. Technical assistance not requiring a [...***...] response may be requested via email. 

  

	 	1.1.3	On-Site Support. If a problem cannot be resolved via phone support, upon CUSTOMER’s request, Supplier shall provide on-site support to perform additional
troubleshooting, identification and implementation of a resolution. Such on-site support shall be available on an as-available basis upon a schedule to be mutually agreed. If the problem is found not to be caused by Supplier’s Product, CUSTOMER
will be responsible for actual reasonable travel and personal expenses. If the problem is found to be caused by Supplier’s Product, Supplier shall bear its own respective costs for such services. 

  

	 	1.1.4	 Returned Material Authorizations. If during the troubleshooting and fault isolation process, it is determined that a hardware failure is the root cause of
the problem, CUSTOMER shall replace the defective product from its spares pool and then contact Supplier to initiate a Returned 

  

			
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	  	***Confidential Treatment Requested

	 	 
Material Authorization (RMA) for the defective Product. Supplier shall promptly provide an RMA number to CUSTOMER and instructions on failed product
disposition and return of the defective product to Supplier. CUSTOMER shall ensure that the Product is shipped back following the provided RMA procedures and packed suitably to prevent damage in shipping. No Products may be returned to Supplier
without an RMA. Units returned under RMA will be repaired or replaced and shipped back to CUSTOMER within thirty (30) days of receipt at Supplier’s designated facility. CUSTOMER pays shipping charges to Supplier; Supplier pays shipping
charges back to CUSTOMER. 

  

	 	1.1.4.1	Failure Reports. Supplier shall provide a report on any Product returned for failure analysis. Such report shall state how the Product was tested, the nature of the
defect or failure, if known, what corrective action was taken, and the final test results. 

  

	 	1.1.5	Software Support. CUSTOMER may report bugs or malfunctions in the firmware to Supplier by contacting the Supplier technical support engineer as described in
Section 1.1.1 above. Supplier, shall make reasonable commercial efforts to track the reported problem and identify a reasonable workaround or resolution, including bug fixes if deemed necessary, to bring such firmware into compliance with the
applicable Product Specification as soon as reasonably possible. Any necessary firmware or software bug fixes will be provided to CUSTOMER for installation by CUSTOMER in the field. During the warranty period, Supplier shall provide CUSTOMER with
any bug fixes for the firmware, when and if available, as released by Supplier and applicable to the Products supplied. Supplier shall provide CUSTOMER with hardware compatibility information applicable to any such firmware bug fix released. The
parties agree that any out-of-warranty software support shall be negotiated in good faith at the time of request. 

  

	 	1.1.6	Emergency Support. Upon request, Supplier shall provide reasonable commercial efforts to support CUSTOMER on a priority basis in the event of a Product failure that causes an
emergency “out of service” condition of an End-User. Such support shall include telephone assistance, expedited RMA processing and on-site support as mutually agreed. 

  

	 	1.2	Additional Support. Additional support services that may be requested by CUSTOMER, and agreed to by Supplier, which are for services other than Support as described herein
shall be provided upon a schedule and at such rates as mutually agreed by the parties in writing, as well as actual reasonable travel and personal expenses. 

  

			
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	2.	Escalation Procedure. 

  

	 	2.1.	Supplier. At any time, CUSTOMER may contact the Supplier technical support engineer to request escalation of a technical issue or previously reported problem. Upon receipt of
such escalation request, the Supplier technical support engineer shall route the caller to an appropriate individual and/or provide contact information to CUSTOMER as necessary. 

  

	 	2.2.	Tellabs. At any time, Supplier may contact the Tellabs Customer Call Center at 1-800-690-2324 to request escalation of a technical issue or previously reported problem. Upon
receipt of such escalation request, the Tellabs Customer Call Center shall route the caller to an appropriate individual and/or provide contact information to Supplier as necessary. Any customer that initially contacts Supplier as its initial line
of support shall be referred by Supplier to CUSTOMER at the number above. 

  

 Page 22 of 22 

 ***Text Omitted and Filed Separately 
 with the Securities and Exchange Commission. 
 Confidential Treatment Requested

 Under 17 C.F.R. Sections 200.80(b)(4) 
 and 230.406 
 AMENDMENT ONE 
 TO THAT CERTAIN MASTER PURCHASE AGREEMENT 
 Reference is made to that certain Master Purchase Agreement
dated July 1, 2006 (the “Agreement) by and between Entropic Communications, Inc., a Delaware corporation located at 9276 Scranton Rd, San Diego, CA 92121 (“Entropic”), and Tellabs Operations, Inc., a Delaware
corporation having principal offices at One Tellabs Center, 1415 W. Diehl Rod., Naperville, IL 60563 (“Tellabs”). 
 WHEREAS, Tellabs
and Entropic desire to amend the Agreement to modify existing terms and incorporate new terms, as required by the parties, as set forth herein. 
 NOW
THEREFORE, the parties hereby agree as follows as of the date hereof: 
  

	 	1.	Exhibit A of the Agreement, “Products and Pricing,” is hereby supplemented by adding the products and pricing terms set forth in the attached Exhibit A.

  

	 	2.	All other terms and conditions in the reference Agreement shall remain the same. 

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their duly authorized representatives. 
  

					
	Tellabs Operations, Inc.	 		 	Entropic Communications, inc.
			
	 /s/ Joelle Prather
	 		 	 /s/ Kent Vandenberg

	Signature	 		 	Signature
			
	 Joelle Prather
	 		 	 Kent Vandenberg

	Printed Name	 		 	Printed Name
			
	 VP Global Sourcing
	 		 	 Executive Director of Americas

	Title	 		 	Title
			
	 6/26/2007
	 		 	 6/20/2007

	Date	 		 	Date

 EXHIBIT A 
 PRODUCTS AND PRICING 
 [...***...] 
  

			
		  	***Confidential Treatment RequestedVenture Loan and Security Agreement dated October 6, 2006

 Exhibit 10.26 
 VENTURE LOAN AND SECURITY AGREEMENT 
 Dated as of October 6, 2006 
 by and between 
 HORIZON TECHNOLOGY FUNDING
COMPANY LLC, 
 a Delaware limited liability company 
 76 Batterson Park Road 
 Farmington, CT 06032 
 as Lender 
 And 
 RF MAGIC, INC., 
 a Delaware corporation 
 10182 Telesis Court, 4th Floor 
 San Diego, CA 92121 
 as Borrower 
  

				
	 Commitment Amount Loan A:
	  	$	5,000,000
	 Commitment Amount Loan B:
	  	$	2,000,000
	 Commitment Termination Date Loan A:
	  	 	October 31, 2006
	 Commitment Termination Date Loan B:
	  	 	June 30, 2007

 The Lender and Borrower hereby agree as follows: 
 AGREEMENT 
 1. Definitions and Construction. 
 1.1 Definitions. As used in this Agreement, the following capitalized terms shall have the following meanings: 
 “Account Control Agreement” means an agreement acceptable to Lender which perfects via control Lender’s security interest in
Borrower’s deposit accounts and/or accounts holding securities. 
 “Affiliate” means any Person that owns or controls
directly or indirectly ten percent (10%) or more of the stock of another entity, any Person that controls or is controlled by or is under common control with such Persons or any Affiliate of such Persons and each of such Person’s officers,
directors, joint venturers or partners. 
 “Agreement” means this certain Venture Loan and Security Agreement by and between
Borrower and Lender dated as of the date on the cover page hereto (as it may from time to time be amended or supplemented in writing signed by the Borrower and Lender). 
 “Borrower” means the Borrower as set forth on the cover page of this Agreement. 
 “Borrower’s Home State” means California. 
 “Business Day” means any day that is not a
Saturday, Sunday, or other day on which banking institutions are authorized or required to close in Connecticut or Borrower’s Home State. 
 “Claim” has the meaning given such term in Section 10.3 of this Agreement. 
 “Code”
means the Uniform Commercial Code as adopted and in effect in the State of Connecticut, as amended from time to time; provided that if by reason of mandatory provisions of law, the creation and/or perfection or the effect of perfection
or non-perfection of the security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than Connecticut, the term “Code” shall also mean the Uniform Commercial Code as in effect from
time to time in such jurisdiction for purposes of the provisions hereof relating to such creation, perfection or effect of perfection or non-perfection. 
 “Collateral” has the meaning given such term in Section 4.1 of this Agreement. 
 “Commitment Amount Loan A” and “Commitment Amount Loan B” have the meanings as set forth on the cover page of this Agreement. 
 “Commitment Fee” has the meaning given such term in Section 2.6(c) of this Agreement. 
  

 1 

 “Commitment Termination Date Loan A” and “Commitment Termination Date Loan
B” have the meanings as set forth on the cover page of this Agreement. 
 “Default” means any event which with the
passing of time or the giving of notice or both would become an Event of Default hereunder. 
 “Default Rate” means the per
annum rate of interest equal to five percent (5%) over the Loan Rate, but such rate shall in no event be more than the highest rate permitted by applicable law to be charged on commercial loans in a default situation. 
 “Disclosure Schedule” means Exhibit A attached hereto. 
 “Environmental Laws” means all foreign, federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and
codes, together with all administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authorities, in each case relating to environmental, health, safety and land use matters,
including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, the Clean Air Act, the Federal Water Pollution Control Act of 1972, the Solid Waste Disposal Act, the Federal Resource Conservation and Recovery Act, the
Toxic Substances Control Act and the Emergency Planning and Community Right-to-Know Act. 
 “Equity Securities” of any
Person means (a) all common stock, preferred stock, participations, shares, partnership interests, membership interests or other equity interests in and of such Person (regardless of how designated and whether or not voting or non-voting) and
(b) all warrants, options and other rights to acquire any of the foregoing. 
 “ERISA” has the meaning given to such
term in Section 7.12 of this Agreement. 
 “Event of Default” has the meaning given to such term in
Section 8 of this Agreement. 
 “Funding Certificate” means a certificate executed by a Responsible Officer of
Borrower substantially in the form of Exhibit B or such other form as Lender may agree to accept. 
 “Funding Date”
means any date on which a Loan is made to or on account of Borrower under this Agreement. 
 “GAAP” means generally accepted
accounting principles as in effect in the United States of America from time to time, consistently applied. 
 “Good Faith
Deposit” has the meaning given such term in Section 2.6(a) of this Agreement. 
 “Governmental
Authority” means (a) any federal, state, county, municipal or foreign government, or political subdivision thereof, (b) any governmental or quasi-governmental agency, authority, board, bureau, commission, department,
instrumentality or public body, (c) any court or administrative tribunal, or (d) with respect to any Person, any arbitration tribunal or other non-governmental authority to whose jurisdiction that Person has consented. 
  

 2 

 “Hazardous Materials” means all those substances which are regulated by, or which may
form the basis of liability under, any Environmental Law, including all substances identified under any Environmental Law as a pollutant, contaminant, hazardous waste, hazardous constituent, special waste, hazardous substance, hazardous material, or
toxic substance, or petroleum or petroleum derived substance or waste. 
 “Indebtedness” means, with respect to Borrower or
any Subsidiary, the aggregate amount of, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all
obligations of such Person to pay the deferred purchase price of property or services (excluding trade payables aged less than one hundred eighty (180) days), (d) all capital lease obligations of such Person, (e) all obligations or
liabilities of others secured by a Lien on any asset of such Person, whether or not such obligation or liability is assumed, and (f) all Indebtedness of others guaranteed by such Person. Unless otherwise indicated, the term
“Indebtedness” shall include all Indebtedness of Borrower and the Subsidiaries. 
 “Indemnified Person” has
the meaning given such term in Section 10.3 of this Agreement. 
 “Intellectual Property” means all of
Borrower’s right, title and interest in and to patents, patent rights (and applications and registrations therefor), trademarks and service marks (and applications and registrations therefor), inventions, copyrights, mask works (and
applications and registrations therefor), trade names, trade styles, software and computer programs, source code, object code, trade secrets, methods, processes, know how, drawings, specifications, descriptions, and all memoranda, notes, and records
with respect to any research and development, all whether now owned or subsequently acquired or developed by Borrower and whether in tangible or intangible form or contained on magnetic media readable by machine together with all such magnetic media
(but not including embedded computer programs and supporting information included within the definition of “goods” under the Code). 
 “Investment” means the purchase or acquisition of any capital stock, equity interest, or any obligations or other securities of, or any interest in, any Person, or the extension of any advance, loan, extension of credit or
capital contribution to, or any other investment in, or deposit with, any Person. 
 “Landlord Agreement” means an agreement
by which a lessor to Borrower of certain real property furnishes its consent to removal of personal property by Lender under certain conditions, substantially in the form provided by Lender to Borrower or such other form as is reasonably acceptable
to Lender. 
 “Lender” means the Lender as set forth on the cover page of this Agreement. 
 “Lender’s Expenses” means all reasonable costs or expenses (including reasonable attorneys’ fees and expenses) incurred in
connection with the preparation, negotiation, documentation, administration and funding of the Loan Documents; and Lender’s reasonable attorneys’ fees, costs and expenses incurred in amending, modifying, enforcing or defending the Loan
Documents (including fees and expenses of appeal or review), including the exercise of any 

  

 3 

 
rights or remedies afforded hereunder or under applicable law, whether or not suit is brought, whether before or after bankruptcy or insolvency, including
without limitation all fees and costs incurred by Lender in connection with Lender’s enforcement of its rights in a bankruptcy or insolvency proceeding filed by or against Borrower or its Property. 
 “Lien” means any voluntary or involuntary security interest, pledge, bailment, lease, mortgage, hypothecation, conditional sales and
title retention agreement, encumbrance or other lien with respect to any Property in favor of any Person. 
 “Loan” means
each advance of credit by Lender to Borrower under this Agreement and, “Loans” means, collectively all such advances of credit. 
 “Loan A” means the advance of credit by Lender to Borrower under this Agreement in the Commitment Amount Loan A. 
 “Loan B” means the advance of credit by Lender to Borrower under this Agreement in the Commitment Amount Loan B. 
 “Loan Documents” means, collectively, this Agreement, the Notes, the Warrant, any Landlord Agreement, any Account Control Agreement and all other documents, instruments and agreements entered into in connection with this
Agreement, all as amended or extended from time to time. 
 “Loan Rate” means, with respect to each Loan, the per annum rate
of interest (based on a year of twelve 30-day months) equal to the greater of (a) 11.90 % or (b) 11.90% plus the difference between (i) the one month LIBOR Rate (rounded to the nearest one hundredth percent), as reported
in the Wall Street Journal, on the date which is five (5) Business Days before the Funding Date for such Loan (or, if the Wall Street Journal is not published on such date, the next earlier date on which it is published).and
(ii) 5.33%. 
 “Maturity Date” means, with respect to Loan A, May 1, 2010 and with respect to Loan B, the date
which is forty-two (42) months from the first day of the month next following the first day of the month following the Funding Date for Loan B, or, in the case of Loan A or Loan B, if earlier, the date of acceleration of the Loans following an
Event of Default or the date of prepayment, whichever is applicable. 
 “Note” means each promissory note executed in
connection with a Loan in substantially the form of Exhibit C attached hereto, and, collectively, “Notes” means all such promissory notes. 
 “Obligations” means all debt, principal, interest, fees, charges, expenses and attorneys’ fees and costs and other amounts, obligations, covenants, and duties owing by Borrower to Lender of any
kind and description (whether pursuant to or evidenced by the Loan Documents (other than the Warrant), or by any other agreement between Lender and Borrower, and whether or not for the payment of money), whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, including all Lender’s Expenses. 
 “Officer’s
Certificate” means a certificate executed by a Responsible Officer substantially in the form of Exhibit E or such other form as Lender may agree to accept. 
  

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 “Payment Date” has the meaning given such term in Section 2.2(a) of this
Agreement. 
 “Permitted Indebtedness” means and includes: 
 (a) Indebtedness of Borrower to Lender; 
 (b) Indebtedness of Borrower secured by Liens permitted under clause (e) of the definition of Permitted Liens; 
 (c)
Indebtedness arising from the endorsement of instruments in the ordinary course of business; 
 (d) Indebtedness existing on the date hereof
and set forth on the Disclosure Schedule; 
 (e) Indebtedness owed to Silicon Valley Bank consisting of (i) a revolving credit facility
in which the loans are limited to not more than Eighty Percent (80%) of Borrower’s outstanding accounts receivable plus (ii) term debt existing on the date hereof in the outstanding aggregate principal amount of $1,650,000;

 (f) Other Indebtedness in an aggregate principal amount not to exceed $250,000 at any time; and 
 (g) Extensions, refinancings and renewals of any items of Permitted Indebtedness, provided that the principal amount is not increased or the terms
modified to impose more burdensome terms upon Borrower or its Subsidiary, as the case may be. 
 “Permitted Investments”
means and includes any of the following Investments as to which Lender has a perfected security interest: 
 (a) Deposits and deposit
accounts with commercial banks organized under the laws of the United States or a state thereof to the extent: (i) the deposit accounts of each such institution are insured by the Federal Deposit Insurance Corporation up to the legal limit; and
(ii) each such institution has an aggregate capital and surplus of not less than One Hundred Million Dollars ($100,000,000); 
 (b)
Investments consisting of securities accounts, in which the investments therein otherwise meet the definition of Permitted Investments; 
 (c) Investments in marketable obligations issued or fully guaranteed by the United States and maturing not more than one (1) year from the date of issuance; 
 (d) Investments in open market commercial paper rated at least “A1” or “P1” or higher by a national credit rating agency and
maturing not more than one (1) year from the creation thereof and Investments in money market accounts and certificates of deposit; 
 (e) Investments pursuant to or arising under currency agreements or interest rate agreements entered into in the ordinary course of business; 
  

 5 

 (f) Investments consisting of (1) travel advances and employee relocation loans and other employee
loans and advances in the ordinary course of business; provided the aggregate amount of such loans do not exceed $250,000 at any one time outstanding and (2) loans to employees, officers or directors relating to the purchase of equity
securities of Borrower pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; provided the aggregate amount of such do not exceed $250, 000 at any one time outstanding (exclusive of any non-cash based
loan options, pursuant to which no cash is distributed from the Borrower to such employee, officer or director, to acquire such securities); 
 (g) Investments consisting of debt obligations received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of; and other disputes with, customers or suppliers arising in
the ordinary course of business; 
 (h) Investments consisting of notes receivable of, or prepaid royalties and other credit extensions to,
customers who are not Affiliates, in the ordinary course of business; 
 (i) Investments to fund operating expenses or capital costs of
Borrower’s subsidiaries operations, provided that such Investments are consistent with Borrower’s annual operating budget and plan as delivered to Lender each year pursuant to Section 6.3 of this Agreement; provided that (i) the
aggregate amount of such Investments does not exceed Two Million Dollars ($2,000,000) in any fiscal year of Borrower and (ii) upon Lender’s request, Borrower provides or causes any of its domestic subsidiaries to provide any and all
documents required by Lender to make any such domestic subsidiaries guarantors of the Obligations and grant a security in the personal property, excluding Intellectual Property, to secure any such guaranty; and 
 (j) Other Investments aggregating not in excess of Two Hundred Fifty Thousand Dollars ($250,000) at any time. 
 “Permitted IP Claims” means the granting of co-inventor status to, and the allowance of certain system claims by, Echostar Technology
Holdings Corporation, solely with respect to the following patents of Borrower: 10/735521, 10/734603, 10/734604 and 11/164768. 
 “Permitted Liens” means and includes: 
 (a) the Lien created by this Agreement; 
 (b) Liens for fees, taxes, levies, imposts, duties or other governmental charges of any kind which are not yet delinquent or which are being contested
in good faith by appropriate proceedings which suspend the collection thereof (provided that such appropriate proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of Collateral which in
the aggregate is material to Borrower and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books of Borrower); 
  

 6 

 (c) Liens identified on the Disclosure Schedule; 
 (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other similar Liens arising in the ordinary course of
business and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings (provided that such appropriate proceedings do not involve any substantial danger of the
sale, forfeiture or loss of any material item of Collateral or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such Lien or reserves sufficient to discharge such Lien have been provided on the books
of Borrower); 
 (e) Liens upon any equipment or other personal property acquired by Borrower after the date hereof to secure (i) the
purchase price of such equipment or other personal property, or (ii) lease obligations or indebtedness incurred solely for the purpose of financing the acquisition of such equipment or other personal property; provided that
(A) such Liens are confined solely to the equipment or other personal property so acquired and the amount secured does not exceed the acquisition price thereof, and (B) no such Lien shall be created, incurred, assumed or suffered to exist
in favor of Borrower’s officers, directors or stockholders holding five percent (5%) or more of Borrower’s Equity Securities; 
 (f) Liens granted to a lender providing Indebtedness permitted under subparagraph (e) of the definition of Permitted Indebtedness; 
 (g) non-exclusive licenses of Intellectual Property entered into in the ordinary course of business, or exclusive licenses of Intellectual Property with respect to scope or geographic area, (A) to customers in connection with
Borrower’s customization of software or other products for such customers, or (B) in connection with “end-of-life” source code where such source code is no longer integral to Borrower’s business; 
 (h) Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default; 
 (i) Liens securing Subordinated Debt; 
 (j) Leases or subleases and licenses and sublicenses granted in the ordinary course of business; 
 (k) Liens in favor of customs
and revenue authorities arising as a matter of law, in the ordinary course of Borrower’s business, to secure payment of customs duties in connection with the importation of goods; 
 (l) Liens on insurance proceeds securing the payment of financed insurance premiums; and 
 (m) Deposits in the ordinary course of business under worker’s compensation, unemployment insurance, social security and other similar laws, or to
secure the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar bonds for the performance of bids, tenders or contracts (other than for the repayment of
borrowed money) or to secure statutory obligations (other than liens arising under ERISA or environmental liens) or surety or appeal bonds, or to secure indemnity, performance or other similar bonds. 
  

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 “Person” means and includes any individual, any partnership, any corporation, any
business trust, any joint stock company, any limited liability company, any unincorporated association or any other entity and any domestic or foreign national, state or local government, any political subdivision thereof, and any department,
agency, authority or bureau of any of the foregoing. 
 “Property” means any interest in any kind of property or asset,
whether real, personal or mixed, whether tangible or intangible. 
 “Responsible Officer” has the meaning given such term in
Section 6.3 of this Agreement. 
 “Scheduled Payments” has the meaning given such term in
Section 2.2(a) of this Agreement. 
 “Solvent” has the meaning given such term in Section 5.11 of
this Agreement. 
 “Subsidiary” means any corporation or other entity of which a majority of the outstanding Equity
Securities entitled to vote for the election of directors or other governing body (otherwise than as the result of a default) is owned by Borrower directly or indirectly through Subsidiaries. 
 “Third Party Equipment” has the meaning given such term in Section 4.8 of this Agreement. 
 “Transfer” has the meaning given such term in Section 7.4 of this Agreement. 
 “Warrant” means the separate warrant or warrants dated on or about the date hereof in favor of the Lender or its designees to purchase
securities of Borrower. 
 1.2 Construction. References in this Agreement to “Articles,” “Sections,”
“Exhibits,” “Schedules” and “Annexes” are to recitals, articles, sections, exhibits, schedules and annexes herein and hereto unless otherwise indicated. References in this Agreement and each of the other Loan Documents
to any document, instrument or agreement shall include (a) all exhibits, schedules, annexes and other attachments thereto, (b) all documents, instruments or agreements issued or executed in replacement thereof, and (c) such document,
instrument or agreement, or replacement or predecessor thereto, as amended, modified and supplemented from time to time and in effect at any given time. The words “hereof,” “herein” and “hereunder” and words of similar
import when used in this Agreement or any other Loan Document shall refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case
may be. The words “include” and “including” and words of similar import when used in this Agreement or any other Loan Document shall not be construed to be limiting or exclusive. Unless otherwise indicated in this Agreement or
any other Loan Document, all accounting terms used in this Agreement or any other Loan Document shall be construed, and all accounting and financial computations hereunder or thereunder shall be computed, in accordance with GAAP, and all terms
describing Collateral shall be construed in accordance with the Code. The terms and information set forth on the cover page of this Agreement are incorporated into this Agreement. 
  

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 2. Loans; Repayment. 
 2.1 Commitment. 
 (a) The Commitment Amount. Subject to the terms and conditions of this
Agreement and relying upon the representations and warranties herein set forth as and when made or deemed to be made, Lender agrees to lend to Borrower prior to the Commitment Termination Date Loan A, Loan A. Subject to the terms and conditions of
this Agreement, including without limitation Section 3.3 below, and relying upon the representations and warranties herein set forth as and when made or deemed to be made, Lender agrees to lend to Borrower on or after January 1, 2007, but
prior to the Commitment Termination Date Loan B, Loan B. 
 (b) The Loans and the Notes. The obligation of Borrower to repay the
unpaid principal amount of and interest on the Loan shall be evidenced by a Note issued to Lender. 
 (c) Use of Proceeds. The
proceeds of each Loan shall be used solely for working capital or general corporate purposes of Borrower. 
 (d) Termination of
Commitment to Lend. Notwithstanding anything in the Loan Documents, Lender’s obligation to lend the undisbursed portion of the Commitment Amount Loan A or Commitment Amount Loan B to Borrower hereunder shall terminate on the earlier of
(i) at Lender’s sole election, the occurrence of any Default or Event of Default hereunder, and (ii) with respect to Loan A, Commitment Termination Date Loan A and with respect to Loan B; Commitment Termination Date Loan B.
Notwithstanding the foregoing, Lender’s obligation to lend the undisbursed portion of the Commitment Amount Loan A or Commitment Amount Loan B to Borrower shall terminate if, in Lender’s sole judgment, there has been a material adverse
change in the business, results of operations, condition (financial or otherwise) or prospects of Borrower, whether or not arising from transactions in the ordinary course of business. 
 2.2 Payments. 
 (a) Scheduled
Payments. Borrower shall make payments of accrued interest only on the outstanding principal amount of each Loan on the first twelve (12) Payment Dates specified in the Note applicable to such Loan and thirty (30) equal payments of
principal plus accrued interest on the outstanding principal amount of each Loan on each subsequent Payment Date as set forth in the Note applicable to such Loan (collectively, the “Scheduled Payments”). Borrower shall make such
Scheduled Payments commencing on the date set forth in the Note applicable to such Loan and continuing thereafter on the first Business Day of each calendar month (each a “Payment Date”) through the Maturity Date. In any event, all
unpaid principal and accrued interest shall be due and payable in fall on the Maturity Date. 
  

 9 

 (b) Interim Payment. Unless the Funding Date for a Loan is the first day of a calendar month,
Borrower shall pay the per diem interest (accruing at the Loan Rate from the Funding Date through the last day of that month) payable with respect to such Loan on the first Business Day of the next calendar month following the Funding Date.

 (c) Payment of Interest. Borrower shall pay interest on each Loan at a per annum rate of interest equal to the Loan Rate. All
computations of interest (including interest at the Default Rate, if applicable) shall be based on a year of twelve 30-day months. Notwithstanding any other provision hereof, the amount of interest payable hereunder shall not in any event exceed the
maximum amount permitted by the law applicable to interest charged on commercial loans. 
 (d) Application of Payments. All payments
received by Lender when no Event of Default exists shall be applied as follows: (1) first, to Lender’s Expenses then due and owing; and (2) second to all Scheduled Payments then due and owing (provided, however, if such
payments are not sufficient to pay the whole amount then due, such payments shall be applied first to unpaid interest at the Loan Rate, then to the remaining amount then due). During the existence of an Event of Default, all payments and application
of proceeds shall be made as set forth in Section 9.7. 
 (e) Late Payment Fee. Borrower shall pay to Lender a late
payment fee equal to three percent (3%) of any Scheduled Payment not paid when due. 
 (f) Default Rate. Borrower shall pay
interest at a per annum rate equal to the Default Rate on any amounts required to be paid by Borrower under this Agreement or the other Loan Documents (including Scheduled Payments), payable with respect to any Loan, accrued and unpaid interest, and
any fees or other amounts which remain unpaid after such amounts are due. If an Event of Default has occurred and the Obligations have been accelerated (whether automatically or by Lender’s election), Borrower shall pay interest on the
aggregate, outstanding accelerated balance hereunder from the date of the Event of Default until all Events of Default are cured, at a per annum rate equal to the Default Rate. 
 2.3 Prepayments. 
 (a) Mandatory
Prepayment Upon an Acceleration. If the Loans are accelerated following the occurrence of an Event of Default pursuant to Section 9.1(a) hereof, then Borrower, in addition to any other amounts which may be due and owing hereunder, shall
immediately pay to Lender the amount set forth in Section 2.3(b) below, as if the Borrower had opted to prepay on the date of such acceleration. 
 (b) Optional Prepayment. Upon ten (10) Business Days’ prior written notice to Lender, Borrower may, at its option, at any time, prepay all of the Loans by paying to Lender an amount equal to
(i) any accrued and unpaid interest on the outstanding principal balance of the Loans; (ii) for each Loan an amount equal to (A) if the Loan is prepaid in calendar year 2006, four (4%) percent of the then outstanding principal
balance of the Loan, (B) if the Loan is prepaid in calendar year 2007, two and one half of one (2.5%) percent of the then outstanding principal balance of the Loan, or (C) ) if the Loan is prepaid after December 31, 

  

 10 

 
2007, one (1.0%) percent of the then outstanding principal balance of the Loan,; (iii) the outstanding principal balance of the Loans and
(iv) all other sums, if any, that shall have become due and payable hereunder. Notwithstanding the foregoing, if on or before the prepayment of the Loans, Borrower completes the sale of its Equity Securities in an initial public offering or is
sold for an amount which results in the Lender receiving net cash proceeds per share equal to two times the Warrant Price (as defined in the Warrant), Borrower shall not owe the amount set forth in Section 2.3(b)(ii) above. 
 2.4 Other Payment Terms. 
 (a)
Place and Manner. Borrower shall make all payments due to Lender in lawful money of the United States. All payments of principal, interest, fees and other amounts payable by Borrower hereunder shall be made, in immediately available funds,
not later than 4:00 p.m. Connecticut time, on the date on which such payment is due. Borrower shall make such payments to Lender via wire transfer as follows: 
  

			
	 Payment via wire transfer:
	  	
	 Credit:
	  	Horizon Technology Funding Company LLC
	 Bank Name:
	  	ABN Amro/LaSalle Bank NA CDO Trust Services
	 Bank Address:
	  	135 South LaSalle Street, Suite 1625
		  	Chicago, Illinois 60603
		  	Attn: Greg Meyers, 312-904-0283
	 Account No.:
	  	2090067 – Trust GL
	 FFCT-Reference Account Number
	  	721771.1
	 ABA Routing No.:
	  	071000505
	 Reference:
	  	RF Magic Invoice #                         

 (b) Date. Whenever any payment is due hereunder on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of time shall be included in the computation of interest or fees, as the case may be. 
 2.5 Procedure for Making the Loans. 
 (a) Notice. Borrower shall notify Lender of the date on
which Borrower desires Lender to make any Loan at least five (5) Business Days in advance of the desired Funding Date, unless Lender elects at its sole discretion to allow the Funding Date to be within five (5) Business Days of
Borrower’s notice. Borrower’s execution and delivery to Lender of a Note shall be Borrower’s agreement to the terms and calculations thereunder with respect to the Loan. Lender’s obligation to make any Loan shall be expressly
subject to the satisfaction of the conditions set forth in Section 3. 
 (b) Loan Rate Calculation. Prior to each Funding
Date, Lender shall establish the Loan Rate with respect to such Loan, which shall be set forth in the Note to be executed by Borrower with respect to such Loan and shall be conclusive in the absence of a manifest error. 
  

 11 

 (c) Disbursement. Lender shall disburse the proceeds of each Loan by wire transfer to Borrower at
the account specified in the Funding Certificate for the Loan. 
 2.6 Good Faith Deposit; Legal and Closing Expenses; and Commitment
Fee. 
 (a) Good Faith Deposit. Borrower has delivered to Lender a good faith deposit in the amount of Thirty Five Thousand
Dollars ($35,000) (the “Good Faith Deposit”). The Good Faith Deposit will be applied to Lender’s Costs (as defined in Section 2.3(b) below) and the balance to the Commitment Fee. If the Funding Date does not occur (other
than as a result of Lender’s election not to fund pursuant to Section 2.1(d) above), Lender shall retain the Good Faith Deposit as compensation for its time, expenses and opportunity cost. 
 (b) Legal, Due Diligence and Documentation Expenses. Concurrently with its execution and delivery of this Agreement, Borrower shall pay to Lender
(from the Good Faith Deposit) Lender’s legal, due diligence and documentation expenses (“Lender’s Costs”) in connection with the negotiation and documentation of this Agreement and the Loan Documents in an amount not to exceed
Ten Thousand Dollars ($10,000). 
 (c) Commitment Fee. Borrower shall pay Lender concurrently with its execution and delivery of this
Agreement a commitment fee in the amount of Thirty Five Thousand Dollars ($35,000) (the “Commitment Fee”). The Commitment Fee shall be retained by Lender and be deemed fully earned upon receipt. 
 3. Conditions of Loan. 
 3.1
Conditions Precedent to Closing. At the time of the execution and delivery of this Agreement, Lender shall have received, in form and substance reasonably satisfactory to Lender, all of the following (unless Lender has agreed to waive such
condition or document, in which case such condition or document shall be a condition precedent to the making of any Loan and shall be deemed added to Section 3.2): 
 (a) Loan Agreement. This Agreement duly executed by Borrower and Lender. 
 (b) Warrant. The Warrant duly executed by Borrower. 
 (c) Secretary’s Certificate. A certificate of the secretary or assistant secretary of Borrower with copies of the following documents attached: (i) the certificate of incorporation and bylaws of
Borrower certified by Borrower as being complete and in full force and effect on the date thereof, (ii) incumbency and representative signatures, and (iii) resolutions authorizing the execution and delivery of this Agreement and each of
the other Loan Documents. 
 (d) Good Standing Certificates. A good standing certificate from Borrower’s state of incorporation
and the state in which Borrower’s principal place of business is located, each dated as of a recent date. 
  

 12 

 (e) Certificate of Insurance. Evidence of the insurance coverage required by
Section 6.8 of this Agreement. 
 (f) Consents. All necessary consents of stockholders and other third parties with
respect to the execution, delivery and performance of this Agreement, the Warrant and the other Loan Documents. 
 (g) Legal Opinion.
A legal opinion of Borrower’s counsel covering the matters set forth in Exhibit D hereto. 
 (h) Account Control
Agreements. Account Control Agreements for all of Borrower’s deposit accounts and accounts holding securities duly executed by all of the parties thereto, in the forms provided by or reasonably acceptable to Lender. 
 (i) Other Documents. Such other documents and completion of such other matters, as Lender may reasonably deem necessary or appropriate.

 3.2 Conditions Precedent to Making a Loan. The obligation of Lender to make each Loan is further subject to the following
conditions: 
 (a) No Default. No Default or Event of Default shall have occurred and be continuing. 
 (b) Note. Borrower shall have duly executed and delivered to Lender a Note in the amount of the Loan. 
 (c) UCC Financing Statements. Lender shall have received such documents, instruments and agreements, including UCC financing statements or
amendments to UCC financing statements, as Lender shall reasonably request to evidence the perfection and priority of the security interests granted to Lender pursuant to Section 4. Borrower authorizes Lender to file any UCC financing
statements, continuations of or amendments to UCC financing statements it deems necessary to perfect its security interest in the Collateral. 
 (d) Funding Certificate. Borrower shall have duly executed and delivered to Lender a Funding Certificate for such Loan. 
 (e) Subordination Agreement. A Subordination Agreement with respect to the Indebtedness constituting Permitted Indebtedness under subsection (e) of the definition of Permitted Indebtedness, executed by the lender providing such
Indebtedness. 
 (f) Other Documents. Such other documents and completion of such other matters, as Lender may reasonably deem
necessary or appropriate. 
 3.3 Condition Precedent to Making Loan B. Borrower shall not request and Lender shall have no obligation
to make, Loan B unless, in addition to all of the other terms and conditions contained herein, (a) on or before June 30, 2007, Borrower provides Lender with evidence reasonably satisfactory to Lender that Borrower has achieved aggregate
revenues, as determined in accordance with GAAP, of not less than Fourteen Million Dollars ($14,000,000) in Borrower’s fiscal quarters ending September 30, 2006 and December 31, 2006. 
  

 13 

 3.4 Covenant to Deliver. Borrower agrees (not as a condition but as a covenant) to deliver to
Lender each item required to be delivered to Lender as a condition to each Loan, if such Loan is advanced. Borrower expressly agrees that the extension of such Loan prior to the receipt by Lender of any such item shall not constitute a waiver by
Lender of Borrower’s obligation to deliver such item, and any such extension in the absence of a required item shall be in Lender’s sole discretion. 
 4. Creation of Security Interest. 
 4.1 Grant of Security Interest. Borrower grants to Lender a
valid and continuing security interest in all presently existing and hereafter acquired or arising Collateral in order to secure prompt, full and complete payment of any and all Obligations and in order to secure prompt, full and complete
performance by Borrower of each of its covenants and duties under each of the Loan Documents (other than the Warrant). The “Collateral” shall mean and include all right, title, interest, claims and demands of Borrower in and to all
personal property of Borrower, including without limitation, all of the following: 
 (a) All goods (and embedded computer programs and
supporting information included within the definition of “goods” under the Code) and equipment now owned or hereafter acquired, including, without limitation, all laboratory equipment, computer equipment, office equipment, machinery,
fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions, and improvements to any of the foregoing, wherever located;

 (b) All inventory now owned or hereafter acquired, including, without limitation, all merchandise, raw materials, parts, supplies,
packing and shipping materials, work in process and finished products including such inventory as is temporarily out of Borrower’s custody or possession or in transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and Borrower’s books relating to any of the foregoing; 
 (c) All contract rights and general intangibles (except to the extent included within the definition of Intellectual Property), now owned or hereafter
acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, software, computer programs, computer disks, computer tapes,
literature, reports, catalogs, design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of any kind; 
 (d) All now existing and hereafter arising accounts, contract rights, royalties, license rights, license fees and all other forms of obligations owing to Borrower arising out of the sale or lease of goods, the
licensing of technology or the rendering of services by 

  

 14 

 
Borrower (subject, in each case, to the contractual rights of third parties to require funds received by Borrower to be expended in a particular manner),
whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by Borrower and Borrower’s books relating to any of the foregoing; 

(e) All documents, cash, deposit accounts, letters of credit (whether or not the letter of credit is evidenced by a writing), certificates of
deposit, instruments, promissory notes, chattel paper (whether tangible or electronic) and investment property, including, without limitation, all securities, whether certificated or uncertificated, security entitlements, securities accounts,
commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired and Borrower’s books relating to the foregoing (but excluding any cash, deposit
accounts or certificates of deposits which are pledged and continue to be pledged to secure reimbursement obligations of Borrower under letters of credit issued on Borrower’s or its subsidiaries behalf with respect to leases of real property);

 (f) Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds
thereof, including, without limitation, insurance, condemnation, requisition or similar payments and proceeds of the sale or licensing of Intellectual Property to the extent such proceeds no longer constitute Intellectual Property; but 

(g) Notwithstanding the foregoing, the Collateral shall not include any Intellectual Property; provided, however, that the Collateral
shall include all accounts receivables, accounts, and general intangibles that consist of rights to payment and proceeds from the sale, licensing or disposition of all or any part, or rights in, the foregoing (the “Rights to
Payment”). Notwithstanding the foregoing, if a judicial authority (including a U.S. Bankruptcy Court) holds that a security interest in the underlying Intellectual Property is necessary to have a security interest in the Rights to Payment,
then the Collateral shall automatically, and effective as of the date hereof, include the Intellectual Property to the extent necessary to permit perfection of Lender’s security interest in the Rights to Payment. 
 4.2 After-Acquired Property. If Borrower shall at any time acquire a commercial tort claim, as defined in the Code, Borrower shall promptly notify
Lender in writing signed by Borrower of the brief details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance
satisfactory to Lender. 
 4.3 Duration of Security Interest. Lender’s security interest in the Collateral shall continue until
the payment in full and the satisfaction of all Obligations (other than indemnity obligations which have not arisen prior to the date of repayment in full of all other Obligations) and termination of Lender’s commitment to fund the Loans,
whereupon such security interest shall terminate. Lender shall, at Borrower’s sole cost and expense, execute such further documents and take such further actions as may be reasonably necessary to make effective the release contemplated by this
Section 4.3, including duly authorizing and delivering termination statements for filing in all relevant jurisdictions under the Code. 
  

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 4.4 Location and Possession of Collateral. The Collateral is and shall remain in the possession of
Borrower at its location listed on the cover page hereof or as set forth in the Disclosure Schedule. Borrower shall remain in full possession, enjoyment and control of the Collateral (except only as may be otherwise required by Lender for perfection
of its security interest therein) and so long as no Event of Default has occurred, shall be entitled to manage, operate and use the same and each part thereof with the rights and franchises appertaining thereto; provided that the
possession, enjoyment, control and use of the Collateral shall at all time be subject to the observance and performance of the terms of this Agreement. 
 4.5 Delivery of Additional Documentation Required. Borrower shall from time to time execute and deliver to Lender, at the request of Lender, all financing statements and other documents Lender may reasonably
request, in form satisfactory to Lender, to perfect and continue Lender’s perfected security interests in the Collateral and in order to consummate fully all of the transactions contemplated under the Loan Documents. 
 4.6 Right to Inspect. Lender (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice, from time to
time during Borrower’s usual business hours, to inspect Borrower’s books and records and to make copies thereof and to inspect, test, and appraise the Collateral in order to verify Borrower’s financial condition or the amount,
condition of, or any other matter relating to, the Collateral. 
 4.7 Intellectual Property. Borrower shall (i) protect, defend
and maintain the validity and enforceability of any material Intellectual Property and promptly advise Lender in writing of material infringements, and (ii) not allow any Intellectual Property material to Borrower’s business to be
abandoned, forfeited or dedicated to the public without the consent of the board of directors of the Borrower. 
 4.8 Lien
Subordination. Lender agrees that the Liens granted to it hereunder shall be subordinate to the Liens to secure the Indebtedness permitted under clause (e) of the definition of Permitted Indebtedness. Lender agrees that the Liens granted to
it hereunder in Third Party Equipment shall be subordinate to the Liens of future lenders providing equipment financing and equipment lessors for equipment and other personal property acquired by Borrower after the date hereof (“Third Party
Equipment”); provided that in the case of equipment financings and leasing such Liens are confined solely to the equipment so financed and the proceeds thereof and are Permitted Liens. Notwithstanding the foregoing, the
Obligations hereunder shall not be subordinate in right of payment to any obligations to other equipment lenders or equipment lessors and Lender’s rights and remedies hereunder shall not in any way be subordinate to the rights and remedies of
any such equipment lenders or equipment lessors, except for its rights and remedies with respect to Third Party Equipment. So long as no Event of Default exists, Lender agrees to execute and deliver such agreements and documents as may be reasonably
requested by Borrower from time to time which set forth the lien subordination described in this Section 4.8 and are reasonably acceptable to Lender. Lender shall have no obligation to execute any agreement or document which would impose
obligations, restrictions or lien priority on Lender which are less favorable to Lender than those described in this Section 4.8. 
  

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 5. Representations and Warranties. Except as set forth in the Disclosure Schedule, Borrower
represents and warrants as follows: 
 5.1 Organization and Qualification. Borrower is a corporation duly organized and validly
existing under the laws of its state of incorporation and qualified and licensed to do business in, and is in good standing in, any state in which the conduct of its business or its ownership of Property requires that it be so qualified or in which
the Collateral is located, except for such states as to which any failure to so qualify would not have a material adverse effect on Borrower. 
 5.2 Authority. Borrower has all necessary power and authority to execute, deliver, and perform in accordance with the terms thereof, the Loan Documents to which it is a party. Borrower has all requisite power and authority to own and
operate its Property and to carry on its businesses as now conducted. 
 5.3 Conflict with Other Instruments, etc. Neither the
execution and delivery of any Loan Document to which Borrower is a party nor the consummation of the transactions therein contemplated nor compliance with the terms, conditions and provisions thereof will conflict with or result in a breach of any
of the terms, conditions or provisions of the certificate of incorporation, the by-laws, or any other organizational documents of Borrower or any law or any regulation, order, writ, injunction or decree of any court or governmental instrumentality
or any material agreement or instrument to which Borrower is a party or by which it or any of its Property is bound or to which it or any of its Property is subject, or constitute a default thereunder or result in the creation or imposition of any
Lien, other than Permitted Liens. 
 5.4 Authorization; Enforceability. The execution and delivery of this Agreement, the granting of
the security interest in the Collateral, the incurring of the Loans, the execution and delivery of the other Loan Documents to which Borrower is a party and the consummation of the transactions herein and therein contemplated have each been duly
authorized by all necessary action on the part of Borrower. Except for the consent of Silicon Valley Bank, which consent shall be obtained prior to the making of a Loan, no authorization, consent, approval, license or exemption of, and no
registration, qualification, designation, declaration or filing with, or notice to, any Person is, was or will be necessary to (i) the valid execution and delivery of any Loan Document to which Borrower is a party, (ii) the performance of
Borrower’s obligations under any Loan Document, or (iii) the granting of the security interest in the Collateral, except for filings in connection with the perfection of the security interest in any of the Collateral or the issuance of the
Warrant. The Loan Documents have been duly executed and delivered and constitute legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency or other similar laws of general application relating to or affecting the enforcement of creditors’ rights or by general principles of equity. 
 5.5 No Prior Encumbrances. Borrower has good and marketable title to the Collateral, free and clear of Liens except for Permitted Liens. Borrower has good title and ownership of, or is licensed under, all of
Borrower’s current Intellectual Property that is necessary to operate its business. Borrower has not received any communications alleging that Borrower has violated, or by conducting its business as proposed, would violate any proprietary
rights of 

  

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any other Person. Borrower has no knowledge of any infringement or violation by it of the intellectual property rights of any third party and has no
knowledge of any violation or infringement by a third party of any of its Intellectual Property. The Collateral and the Intellectual Property constitute substantially all of the assets and property of Borrower. 
 5.6 Name; Location of Chief Executive Office, Principal Place of Business and Collateral. Borrower has not done business under any name other than
that specified on the signature page hereof. Borrower’s jurisdiction of incorporation, chief executive office, principal place of business, and the place where Borrower maintains its records concerning the Collateral are presently located in
the state and at the address set forth on the cover page of this Agreement. The Collateral is presently located at the address set forth on the cover page hereof or as set forth in the Disclosure Schedule. 
 5.7 Litigation. There are no actions or proceedings pending by or against Borrower before any court or administrative agency in which an adverse
decision could have a material adverse effect on Borrower or the aggregate value of the Collateral. Borrower does not have knowledge of any such pending or threatened actions or proceedings. 
 5.8 Financial Statements. All financial statements relating to Borrower or any Affiliate that have been or may hereafter be delivered by Borrower
to Lender present fairly in all material respects Borrower’s financial condition as of the date thereof and Borrower’s results of operations for the period then ended. 
 5.9 No Material Adverse Effect. No event has occurred and no condition exists which could reasonably be expected to have a material adverse effect
on the financial condition, business or operations of Borrower since December 31, 2005. 
 5.10 Full Disclosure. No
representation, warranty or other statement made by Borrower in any Loan Document (including the Disclosure Schedule), certificate or written statement furnished to Lender contains any untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained in such certificates or statements not misleading (it being recognized by the Lender that projections and estimates as to future events, although reflecting Borrower’s good faith
projections or forecasts based on methods and data which Borrower believes to be reasonable and accurate, are not to be viewed as facts and that the actual results during the period or periods covered by any such projections and estimates may differ
from projected or estimated results). There is no fact known to Borrower which materially adversely affects, or which could in the future be reasonably expected to materially adversely affect, its ability to perform its obligations under this
Agreement. 
 5.11 Solvency, Etc. Borrower is Solvent (as defined below) and, after the execution and delivery of the Loan Documents
and the consummation of the transactions contemplated thereby, Borrower will be Solvent. “Solvent” means, with respect to any Person on any date, that on such date (a) the fair value of the property of such Person is greater
than the fair value of the liabilities (including, without limitation, contingent liabilities) of such Person, (b) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or 

  

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liabilities beyond such Person’s ability to pay as such debts and liabilities mature and (d) such Person is not engaged in business or a
transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. 
 5.12 Subsidiaries. Borrower has no Subsidiaries other than those listed on the Disclosure Schedule. 
 5.13 Catastrophic Events; Labor Disputes. Neither Borrower nor its properties is or has been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or
other casualty that could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower. There are no disputes presently subject to grievance procedure, arbitration or litigation under any of
the collective bargaining agreements, employment contracts or employee welfare or incentive plans to which Borrower is a party, and there are no strikes, lockouts, work stoppages or slowdowns, or, to the knowledge of Borrower, jurisdictional
disputes or organizing activity occurring or threatened which could reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower. 
 5.14 Certain Agreements of Officers, Employees and Consultants. 
 (a) No Violation. To the knowledge of Borrower, no officer, employee or consultant of Borrower is, or is now expected to be, in violation of any term of any employment contract, proprietary information
agreement, nondisclosure agreement, noncompetition agreement or any other material contract or agreement or any restrictive covenant relating to the right of any such officer, employee or consultant to be employed by Borrower because of the nature
of the business conducted or to be conducted by Borrower or relating to the use of trade secrets or proprietary information of others, and to Borrower’s knowledge, the continued employment of Borrower’s officers, employees and consultants
does not subject Borrower to any material liability for any claim or claims arising out of or in connection with any such contract, agreement, or covenant. 
 (b) No Present Intention to Terminate. To the knowledge of Borrower, no officer of Borrower, and no employee or consultant of Borrower whose termination, either individually or in the aggregate, could
reasonably be expected to have a material adverse effect on the financial condition, business or operations of Borrower, has any present intention of terminating his or her employment or consulting relationship with Borrower. 
 6. Affirmative Covenants. Borrower, until the full and complete payment of the Obligations (other than indemnity obligations which have not arisen
prior to the date of repayment in full of all other Obligations), covenants and agrees that: 
 6.1 Good Standing. Borrower shall
maintain its corporate existence and its good standing in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a material adverse effect on the
financial condition, operations or business of Borrower. Borrower shall maintain in force all licenses, approvals and agreements, the loss of which could reasonably be expected to have a material adverse effect on its financial condition, operations
or business. 
  

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 6.2 Government Compliance. Borrower shall comply with all statutes, laws, ordinances and
government rules and regulations to which it is subject, noncompliance with which could reasonably be expected to materially adversely affect the financial condition, operations or business of Borrower. 
 6.3 Financial Statements, Reports, Certificates. Borrower shall deliver to Lender: (a) as soon as available, but in any event within thirty
(30) days after the end of each month, a company prepared balance sheet, income statement and cash flow statement covering Borrower’s operations during such period, certified by Borrower’s president, treasurer or chief financial
officer (each, a “Responsible Officer”); (b) as soon as available, but in any event within one hundred eighty (180) days after the end of Borrower’s fiscal year, audited financial statements of Borrower prepared in
accordance with GAAP, together with an unqualified (except as a “going concern” or other similar qualification) opinion on such financial statements of a nationally recognized or other independent public accounting firm reasonably
acceptable to Lender; and (c) as soon as available, but in any event within ninety (90) days after the end of Borrower’s fiscal year or, if later, the date of Borrower’s board of directors’ adoption, Borrower’s
operating budget and plan for the next fiscal year; and (d) such other financial information as Lender may reasonably request from time to time. From and after such time as Borrower becomes a publicly reporting company, promptly as they are
available and in any event: (x) at the time of filing of Borrower’s Form 10-K with the Securities and Exchange Commission after the end of each fiscal year of Borrower, the financial statements of Borrower filed with such Form 10-K; and
(y) at the time of filing of Borrower’s Form 10-Q with the Securities and Exchange Commission after the end of each of the first three fiscal quarters of Borrower, the financial statements of Borrower filed with such Form 10-Q. In
addition, Borrower shall deliver to Lender (i) promptly upon becoming available, copies of all statements, reports and notices sent or made available generally by Borrower to its security holders; and (ii) immediately upon receipt of
notice thereof, a report of any material legal actions pending or threatened in writing against Borrower or the commencement of any action, proceeding or governmental investigation involving Borrower is commenced that is reasonably expected to
result in damages or costs to Borrower of One Hundred Fifty Thousand Dollars ($150,000). 
 6.4 Certificates of Compliance. Each time
financial statements are furnished pursuant to Section 6.3 above, Borrower shall deliver to Lender an Officer’s Certificate signed by a Responsible Officer in the form of, and certifying to the matters set forth in Exhibit E
hereto. 
 6.5 Notice of Defaults. As soon as possible, and in any event within five (5) days after the discovery of a Default or
an Event of Default, Borrower shall provide Lender with an Officer’s Certificate setting forth the facts relating to or giving rise to such Default or Event of Default and the action which Borrower proposes to take with respect thereto.

 6.6 Taxes. Borrower shall make due and timely payment or deposit of all material federal, state, and local taxes, assessments, or
contributions required of it by law or imposed upon any Property belonging to it, and will execute and deliver to Lender, on demand, appropriate certificates attesting to the payment or deposit thereof; and Borrower will make timely payment or
deposit of all material tax payments and withholding taxes required of it by applicable laws, including those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request, furnish Lender
with proof satisfactory to 

  

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Lender indicating that Borrower has made such payments or deposits; provided that Borrower need not make any payment if the amount or validity
of such payment is contested in good faith by appropriate proceedings which suspend the collection thereof (provided that such proceedings do not involve any substantial danger of the sale, forfeiture or loss of any material item of
Collateral or Collateral which in the aggregate is material to Borrower and that Borrower has adequately bonded such amounts or reserves sufficient to discharge such amounts have been provided on the books of Borrower). 
 6.7 Use; Maintenance. Borrower shall keep and maintain all items of equipment and other similar types of personal property that form any
significant portion or portions of the Collateral in good operating condition and repair and shall make all necessary replacements thereof and renewals thereto so that the value and operating efficiency thereof shall at all times be maintained and
preserved. Borrower shall not permit any such material item of Collateral to become a fixture to real estate or an accession to other personal property, without the prior written consent of Lender. Borrower shall not permit any such material item of
Collateral to be operated or maintained in violation of any applicable law, statute, rule or regulation. With respect to items of leased equipment (to the extent Lender has any security interest in any residual Borrower’s interest in such
equipment under the lease), Borrower shall keep, maintain, repair, replace and operate such leased equipment in accordance with the terms of the applicable lease. 
 6.8 Insurance. Borrower shall keep its business and the Collateral insured for risks and in amounts as are customary for companies of Borrower’s size and type of business. Insurance policies shall be in a
form and with companies that are satisfactory to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as an additional loss payee and all liability policies shall show Lender as an additional insured and
all policies shall provide that the insurer must give Lender at least thirty (30) days notice before canceling its policy. At Lender’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.
Proceeds payable under any policy shall, at Lender’s option, be payable to Lender on account of the Obligations. Notwithstanding the foregoing, so long as no Event of Default has occurred and is continuing, Borrower shall have the option of
applying the proceeds of any casualty policy, toward the replacement or repair of destroyed or damaged property; provided that (i) any such replaced or repaired property (a) shall be of equal or like value as the replaced or repaired
Collateral and (b) shall be deemed Collateral in which Lender has been granted a first priority security interest and (ii) after the occurrence and during the continuation of an Event of Default all proceeds payable under such casualty
policy shall, at the option of Lender, be payable to Lender, on account of the Obligations. If Borrower fails to obtain insurance as required under Section 6.8 or to pay any amount or furnish any required proof of payment to third persons and
Lender, Lender may make all or part of such payment or obtain such insurance policies required in Section 6.8, and take any action under the policies Lender deems prudent. On or prior to the first Funding Date and prior to each policy renewal,
Borrower shall furnish to Lender certificates of insurance or other evidence satisfactory to Lender that insurance complying with all of the above requirements is in effect. 
 6.9 Security Interest. Assuming the proper filing of one or more financing statement(s) identifying the Collateral with the proper state and/or
local authorities, the security interests in the Collateral granted to Lender pursuant to this Agreement (i) constitute and will continue to constitute first priority security interests to the extent that a security interest in such 

  

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Collateral can be perfected by the filing of a UCC-1 financing statement (except to the extent any Permitted Liens may have a superior priority to
Lender’s Lien under this Agreement) and (ii) are and will continue to be superior and prior to the rights of all other creditors of Borrower to the extent that a security interest in such Collateral can be perfected by the filing of a
UCC-1 financing statement (except to the extent of such Permitted Liens). 
 6.10 Further Assurances. At any time and from time to
time Borrower shall execute and deliver such further instruments and take such further action as may reasonably be requested by Lender to make effective the purposes of this Agreement, including without limitation, the continued perfection and
priority of Lender’s security interest in the Collateral. 
 6.11 Equity Investment. Borrower shall permit Lender or its
assignees, at Lender’s option, to purchase up to Five Hundred Thousand ($500,000) of the securities sold in Borrower’s next round of equity financing at the same price and on the same terms as paid and received by the lead investor of the
equity financing. Borrower agrees that it shall notify Lender promptly upon the execution by Borrower of a term sheet or letter of intent setting forth the terms and conditions of such financing and in any event within five (5) days of such
execution. 
 7. Negative Covenants. Borrower, until the full and complete payment of the Obligations (other than indemnity
obligations which have not arisen prior to the date of repayment in full of all other Obligations), covenants and agrees that Borrower shall not: 
 7.1 Chief Executive Office. Change its name, jurisdiction of incorporation, chief executive office, principal place of business or any of the items set forth in Section 1 of the Disclosure Schedule without thirty (30) days
prior written notice to Lender. 
 7.2 Collateral Control. Subject to its rights under Sections 4.4 and 7.4, remove any items
of Collateral from Borrower’s facility located at the address set forth on the cover page hereof or as set forth on the Disclosure Schedule. 
 7.3 Liens. Create, incur, assume or suffer to exist any Lien of any kind upon any of Borrower’s Property, whether now owned or hereafter acquired, except Permitted Liens. 
 7.4 Other Dispositions of Collateral. Convey, sell, lease or otherwise dispose of all or any part of the Collateral to any Person (collectively, a
“Transfer”), except for: (i) Transfers of inventory in the ordinary course of business; (ii) Transfers of worn-out or obsolete equipment; or (iii) Transfers permitted under subclause (f) of the definition of
Permitted Liens with respect to Collateral, (iv) Transfers otherwise permitted under this Section 7, (v) Transfers of non-exclusive (or exclusive solely with respect to scope or geographic area) licenses of property in the ordinary
course of business and (vi) Transfers of exclusive licenses of property with respect to scope or geographic area (A) to customers in connection with Borrower’s customization of software or other products for such customers, or
(B) in connection with “end-of-life” source code where such source code is no longer integral to Borrower’s business. 
 7.5 Distributions. (i) Pay any dividends or make any distributions on its Equity Securities, except for dividends payable in capital stock; (ii) purchase, redeem, retire, defease or otherwise acquire for value any of its
Equity Securities (other than repurchases pursuant to the 

  

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terms of employee stock purchase plans, employee restricted stock agreements or similar arrangements in an aggregate amount not to exceed Three Hundred Fifty
Thousand Dollars ($350,000) or by cancellation of Indebtedness); (iii) except as permitted pursuant to Section 7.5(ii), return any capital to any holder of its Equity Securities as such; (iv) except for distributions in capital stock,
make any distribution of assets, Equity Securities, obligations or securities to any holder of its Equity Securities as such; or (v) set apart any sum for any such purpose; provided, however. Borrower may pay dividends payable solely in capital
stock. 
 7.6 Mergers or Acquisitions. Merge or consolidate with or into any other Person or acquire all or substantially all of the
capital stock or assets of another Person; provided that, if any acquisition of all or substantially all of the capital stock or assets of another Person does not materially adversely affect the business or financial performance of Borrower, such
consent shall not be unreasonably withheld by Lender. 
 7.7 Change in Ownership. Engage in or permit any of its Subsidiaries to
engage in any business other than the businesses currently engaged in by Borrower or reasonably related thereto or have a material change in its ownership of greater than fifty percent (50%) (other than by the sale by Borrower of
Borrower’s Equity Securities in a public offering or to venture capital or institutional investors so long as Borrower identifies to Lender the venture capital or institutional investors prior to the closing of the investment). 
 7.8 Transactions With Affiliates. Except for transactions between Borrower and its Subsidiaries that are not otherwise prohibited by any other
provision of Section 7, enter into any contractual obligation with any Affiliate or engage in any other transaction with any Affiliate except upon terms at least as favorable to Borrower as an arms-length transaction with Persons who are not
Affiliates of Borrower. 
 7.9 Indebtedness Payments. (i) Except for the conversion of Indebtedness to Equity Securities and the
payment of cash in lieu of issuing fractional shares upon conversion thereof, prepay, redeem, purchase, defease or otherwise satisfy in any manner prior to the scheduled repayment thereof any Indebtedness for borrowed money (other than amounts due
or permitted to be prepaid under this Agreement or under any revolving credit agreement constituting Permitted Indebtedness under clause (e) of the definition of Permitted Indebtedness) or lease obligations, (ii) except as otherwise
permitted pursuant to Section 7.9(i) amend, modify or otherwise change the terms of any Indebtedness for borrowed money or lease obligations so as to accelerate the scheduled repayment thereof or (iii) repay any notes to officers,
directors or stockholders. 
 7.10 Indebtedness. Create, incur, assume or permit to exist any Indebtedness except Permitted
Indebtedness. 
 7.11 Investments. Make any Investment except for Permitted Investments. 
 7.12 Compliance. Become regulated as an “investment company” or a company controlled by an “investment company” under the
Investment Company Act of 1940 or undertake as one of its important activities extending credit to purchase or carry margin stock, or use the proceeds of any Loan for that purpose; fail to meet the minimum funding requirements of 

  

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the Employment Retirement Income Security Act of 1974, and its regulations, as amended from time to time (“ERISA”), permit a Reportable
Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on
Borrower’s business or operations or could reasonably be expected to cause a material adverse change, or permit any of its Subsidiaries to do so. 
 7.13 Maintenance of Accounts. (i) Maintain any deposit account or account holding securities owned by Borrower except accounts with respect to which Lender is able to take such actions as it deems
necessary to obtain a perfected security interest in such accounts through one or more Account Control Agreements; or (ii) grant or allow any other Person (other than Lender) to perfect a security interest in, or enter into any agreements with
any Persons (other than Lender) accomplishing perfection via control as to, any of its deposit accounts or accounts holding securities, other than any lender providing Indebtedness permitted under clause (e) of the definition of Permitted
Indebtedness. 
 7.14 Negative Pledge Regarding Intellectual Property. Create, incur, assume or suffer to exist any Lien of any kind
upon any Intellectual Property or Transfer any Intellectual Property, whether now owned or hereafter acquired, other than licenses of Intellectual Property entered into in the ordinary course of business and Permitted IP Claims. 
 8. Events of Default. Any one or more of the following events shall constitute an “Event of Default” by Borrower under this
Agreement: 
 8.1 Failure to Pay. If Borrower fails to pay when due and payable or when declared due and payable in accordance with the
Loan Documents: (i) any Scheduled Payment within five (5) Business Days of the relevant Payment Date or the relevant Maturity Date, or (ii) any other portion of the Obligations within five (5) Business Days after receipt of
written notice from Lender that such payment is due. 
 8.2 Certain Covenant Defaults. If Borrower fails to perform any obligation
under Section 6.8 or Sections 7.6, 7.7, 7.9, 7.10, 7.11, 7.12 and 7.13 of this Agreement. 
 8.3 Other Covenant Defaults. If
Borrower fails or neglects to perform, keep, or observe any other material term, provision, condition, covenant, or agreement contained in this Agreement (other than as set forth in Sections 8.1. 8.2 or 8.4 through 8.13), in any of the other
Loan Documents and Borrower has failed to cure such default within thirty (30) days of the occurrence of such default. During this thirty (30) day period, the failure to cure the default is not an Event of Default (but no Loan will be made
during the cure period). 
 8.4 Intentionally Omitted. 
 8.5 Seizure of Assets, Etc. If any material portion of Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is levied upon, or comes into the possession of any trustee,
receiver or Person acting in a similar capacity and such attachment, seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if Borrower is enjoined, restrained, or in any way prevented
by court order from 

  

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continuing to conduct all or any material part of its business affairs, or if a judgment or other claim becomes a lien or encumbrance upon any material
portion of Borrower’s assets, or if a notice of lien, levy, or assessment is filed of record with respect to any of Borrower’s assets by the United States Government, or any department, agency, or instrumentality thereof, or by any state,
county, municipal, or governmental agency, and the same is not paid within ten (10) days after Borrower receives notice thereof; provided that none of the foregoing shall constitute an Event of Default where such action or event
is stayed or an adequate bond has been posted pending a good faith contest by Borrower. 
 8.6 Service of Process. The service of
process upon Lender seeking to attach by a trustee or other process any funds of the Borrower on deposit or otherwise held by Lender, or the delivery upon Lender of a notice of foreclosure by any Person seeking to attach or foreclose on any funds of
the Borrower on deposit or otherwise held by Lender, or the delivery of a notice of foreclosure or exclusive control to any entity holding or maintaining Borrower’s deposit accounts or accounts holding securities by any Person (other than
Lender) seeking to foreclose or attach any such accounts or securities. 
 8.7 Default on Indebtedness. One or more defaults shall
exist under any agreement with any third party or parties which consists of the failure to pay any Indebtedness at maturity or which results in a right by such third party or parties, whether or not exercised, to accelerate the maturity of
Indebtedness in an aggregate amount in excess of One Hundred Fifty Thousand Dollars ($150,000) or a default shall exist under any financing agreement with Lender or any of Lender’s Affiliates. 
 8.8 Judgments. If a judgment or judgments for the payment of money in an amount, individually or in the aggregate, of at least One Hundred Fifty
Thousand Dollars ($150,000) shall be rendered against Borrower and shall remain unsatisfied and unstayed for a period of twenty (20) days or more. 
 8.9 Misrepresentations. If any material misrepresentation or material misstatement is determined to exist in any warranty, representation, statement, certification, or report made to Lender by Borrower or any
officer, employee, agent, or director of Borrower as of the date such warranty, representation, statement, certification or report is made or deemed made. 
 8.10 Breach of Warrant. If Borrower shall breach any material term of the Warrant. 
 8.11
Unenforceable Loan Document. If, prior to the repayment in full of all Obligations, Borrower shall assert that any Loan Document is not, a legal, valid and binding obligation of Borrower enforceable in accordance with its terms. 

8.12 Involuntary Insolvency Proceeding. If a proceeding shall have been instituted in a court having jurisdiction in the premises seeking a
decree or order for relief in respect of Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or for the appointment of a receiver, liquidator, assignee, custodian, trustee (or
similar official) of Borrower or for any substantial part of its Property, or for the winding-up or liquidation of its affairs, and such proceeding shall remain undismissed or unstayed and in effect for a period of forty-five (45) consecutive
days or such court shall enter a decree or order granting the relief sought in such proceeding. 
  

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 8.13 Voluntary Insolvency Proceeding. If Borrower shall commence a voluntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian (or other similar official) of Borrower or for any substantial part of its Property, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they
become due, or shall take any corporate action in furtherance of any of the foregoing. 
 9. Lender’s Rights and Remedies.

 9.1 Rights and Remedies. Upon the occurrence and during the continuance of any Default or Event of Default, Lender shall not have
any further obligation to advance money or extend credit to or for the benefit of Borrower. In addition, upon the occurrence and during the continuance of an Event of Default, Lender shall have the rights, options, duties and remedies of a secured
party as permitted by law and, in addition to and without limitation of the foregoing, Lender may, at its election, without notice of election and without demand, do any one or more of the following, all of which are authorized by Borrower:

 (a) Acceleration of Obligations. Declare all Obligations, whether evidenced by this Agreement, by any of the other Loan Documents,
or otherwise, including (i) any accrued and unpaid interest, (ii) the amounts which would have otherwise come due under Section 2.3(b)(ii) if the Loans had been voluntarily prepaid, (iii) the unpaid principal balance of the Loans
and (iv) all other sums, if any, that shall have become due and payable hereunder, immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.12 or 8.13 all Obligations
shall become immediately due and payable without any action by Lender); 
 (b) Protection of Collateral. Make such payments and do
such acts as Lender considers necessary or reasonable to protect Lender’s security interest in the Collateral. Borrower agrees to assemble the Collateral if Lender so requires and to make the Collateral available to Lender as Lender may
designate. Borrower authorizes Lender and its designees and agents to enter the premises where the Collateral is located, to take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest, or compromise any Lien
which in Lender’s determination appears or is claimed to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s owned premises, Borrower hereby grants
Lender a license to enter into possession of such premises and to occupy the same, without charge, for up to one hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein, at law, in equity, or
otherwise; 
 (c) Preparation of Collateral for Sale. Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale,
advertise for sale, and sell (in the manner provided for herein) the Collateral. Lender and its agents and any purchasers at or after foreclosure are hereby granted a non-exclusive, irrevocable, perpetual, fully paid, royalty-free license or other
right, 

  

 26 

 
solely pursuant to the provisions of this Section 9.1, to use, without charge, Borrower’s Intellectual Property, including without limitation,
labels, patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any Property of a similar nature, now or at any time hereafter owned or acquired by Borrower or in which
Borrower now or at any time hereafter has any rights; provided that such license shall only be exercisable in connection with the disposition of Collateral upon Lender’s exercise of its remedies hereunder; 
 (d) Sale of Collateral. Sell the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for
cash or on terms, in such manner and at such places (including Borrower’s premises) as Lender determines are commercially reasonable; and 
 (e) Purchase of Collateral. Credit bid and purchase all or any portion of the Collateral at any public sale. 
 Any deficiency that exists
after disposition of the Collateral as provided above will be paid immediately by Borrower. 
 9.2 Set Off Right. Lender may set off
and apply to the Obligations any and all indebtedness at any time owing to or for the credit or the account of Borrower or any other assets of Borrower in Lender’s possession or control. 
 9.3 Effect of Sale. Upon the occurrence and during the continuance of an Event of Default, to the extent permitted by law, Borrower covenants that
it will not at any time insist upon or plead, or in any manner whatsoever claim or take any benefit or advantage of, any stay or extension law now or at any time hereafter in force, nor claim, take nor insist upon any benefit or advantage of or from
any law now or hereafter in force providing for the valuation or appraisement of the Collateral or any part thereof prior to any sale or sales thereof to be made pursuant to any provision herein contained, or to the decree, judgment or order of any
court of competent jurisdiction; nor, after such sale or sales, claim or exercise any right under any statute now or hereafter made or enacted by any state or otherwise to redeem the property so sold or any part thereof, and, to the full extent
legally permitted, except as to rights expressly provided herein, hereby expressly waives for itself and on behalf of each and every Person, except decree or judgment creditors of Borrower, acquiring any interest in or title to the Collateral or any
part thereof subsequent to the date of this Agreement, all benefit and advantage of any such law or laws, and covenants that it will not invoke or utilize any such law or laws or otherwise hinder, delay or impede the execution of any power herein
granted and delegated to Lender, but will suffer and permit the execution of every such power as though no such power, law or laws had been made or enacted. Any sale, whether under any power of sale hereby given or by virtue of judicial proceedings,
shall operate to divest all right, title, interest, claim and demand whatsoever, either at law or in equity, of Borrower in and to the Property sold, and shall be a perpetual bar, both at law and in equity, against Borrower, its successors and
assigns, and against any and all Persons claiming the Property sold or any part thereof under, by or through Borrower, its successors or assigns. 
  

 27 

 9.4 Power of Attorney in Respect of the Collateral. Borrower does hereby irrevocably appoint
Lender (which appointment is coupled with an interest), the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name to file any notices of security interests, financing statements and continuations and
amendments thereof pursuant to the Code or federal law, as may be necessary to perfect, or to continue the perfection of Lender’s security interests in the Collateral. Borrower does hereby irrevocably appoint Lender (which appointment is
coupled with an interest) during the existence of an Event of Default, the true and lawful attorney in fact of Borrower with full power of substitution, for it and in its name: (a) to ask, demand, collect, receive, receipt for, sue for,
compound and give acquittance for any and all rents, issues, profits, avails, distributions, income, payment draws and other sums in which a security interest is granted under Section 4 with full power to settle, adjust or compromise any
claim thereunder as fully as if Lender were Borrower itself; (b) to receive payment of and to endorse the name of Borrower to any items of Collateral (including checks, drafts and other orders for the payment of money) that come into
Lender’s possession or under Lender’s control; (c) to make all demands, consents and waivers, or take any other action with respect to, the Collateral; (d) in Lender’s discretion to file any claim or take any other action or
proceedings, either in its own name or in the name of Borrower or otherwise, which Lender may reasonably deem necessary or appropriate to protect and preserve the right, title and interest of Lender in and to the Collateral; (e) endorse
Borrower’s name on any checks or other forms of payment or security; (f) sign Borrower’s name on any invoice or bill of lading for any account or drafts against account debtors; (g) make, settle, and adjust all claims under
Borrower’s insurance policies; (h) settle and adjust disputes and claims about the accounts directly with account debtors, for amounts and on terms Lender determines reasonable; (i) transfer the Collateral into the name of Lender or a
third party as the Code permits; and (j) to otherwise act with respect thereto as though Lender were the outright owner of the Collateral. 
 9.5 Lender’s Expenses. If Borrower fails to pay any amounts or furnish any required proof of payment due to third persons or entities, as required under the terms of this Agreement, then Lender may do any or all of the
following: (a) make payment of the same or any part thereof; or (b) obtain and maintain insurance policies of the type discussed in Section 6.8 of this Agreement, and take any action with respect to such policies as Lender
deems prudent. Any amounts paid or deposited by Lender shall constitute Lender’s Expenses, shall be immediately due and payable, shall bear interest at the Default Rate and shall be secured by the Collateral. Any payments made by Lender shall
not constitute an agreement by Lender to make similar payments in the future or a waiver by Lender of any Event of Default under this Agreement. Borrower shall pay all reasonable fees and expenses, including without limitation, Lender’s
Expenses, incurred by Lender in the enforcement or attempt to enforce any of the Obligations hereunder not performed when due. 
 9.6
Remedies Cumulative. Lender’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. Lender shall have all other rights and remedies not inconsistent herewith as provided under the
Code, by law, or in equity. No exercise by Lender of one right or remedy shall be deemed an election, and no waiver by Lender of any Event of Default on Borrower’s part shall be deemed a continuing waiver. No delay by Lender shall constitute a
waiver, election, or acquiescence by it. 
  

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 9.7 Application of Collateral Proceeds. The proceeds and/or avails of the Collateral, or any part
thereof, and the proceeds and the avails of any remedy hereunder (as well as any other amounts of any kind held by Lender, at the time of or received by Lender after the occurrence and during the continuance of an Event of Default hereunder) shall
be paid to and applied as follows: 
 (a) First, to the payment of out-of-pocket costs and expenses, including all amounts expended to
preserve the value of the Collateral, of foreclosure or suit, if any, and of such sale and the exercise of any other rights or remedies, and of all proper fees, expenses, liability and advances, including reasonable legal expenses and
attorneys’ fees, incurred or made hereunder by Lender, including, without limitation, Lender’s Expenses; 
 (b) Second, to
the payment to Lender of the amount then owing or unpaid on the Loans for any accrued and unpaid interest, the amounts which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, the principal
balance of the Loans, and all other Obligations with respect to the Loans (provided, however, if such proceeds shall be insufficient to pay in full the whole amount so due, owing or unpaid upon the Loans, then to the unpaid interest
thereon, then to the amounts which would have otherwise come due under Section 2.3(b)(ii), if the Loans had been voluntarily prepaid, then to the principal balance of the Loans, and then to the payment of other amounts then payable to Lender
under any of the Loan Documents); and 
 (c) Third, to the payment of the surplus, if any, to Borrower, its successors and assigns,
or to the Person lawfully entitled to receive the same. 
 9.8 Reinstatement of Rights. If Lender shall have proceeded to enforce any
right under this Agreement or any other Loan Document by foreclosure, sale, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely, then and in every such case
(unless otherwise ordered by a court of competent jurisdiction), Lender shall be restored to its former position and rights hereunder with respect to the Property subject to the security interest created under this Agreement. 
 10. Waivers; Indemnification. 
 10.1
Demand; Protest. Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of
accounts, documents, instruments, chattel paper, and guarantees at any time held by Lender on which Borrower may in any way be liable. 
 10.2 Lender’s Liability for Collateral. So long as Lender complies with its obligations, if any, under the Code, Lender shall not in any way or manner be liable or responsible for: (a) the safekeeping of the Collateral;
(b) any loss or damage thereto occurring or arising in any manner or fashion from any cause other than Lender’s gross negligence or willful misconduct; (c) any diminution in the value thereof; or (d) any act or default of any
carrier, warehouseman, bailee, forwarding agency, or other Person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne by Borrower. 
  

 29 

 10.3 Indemnification and Waiver. Whether or not the transactions contemplated hereby shall be
consummated: 
 (a) General Indemnity. Borrower agrees upon demand to pay or reimburse Lender for all liabilities, obligations and
out-of-pocket expenses, including Lender’s Expenses and reasonable fees and expenses of counsel for Lender from time to time arising in connection with the enforcement or collection of sums due under the Loan Documents, and in connection with
any amendment or modification of the Loan Documents or any “work-out” in connection with the Loan Documents. Borrower shall indemnify, reimburse and hold Lender, and each of its respective successors, assigns, agents, attorneys, officers,
directors, equity holders, servants, agents and employees (each an “Indemnified Person”) harmless from and against all liabilities, losses, damages, actions, suits, demands, claims of any kind and nature (including claims relating
to environmental discharge, cleanup or compliance), all costs and expenses whatsoever to the extent they may be incurred or suffered by such Indemnified Person in connection therewith (including reasonable attorneys’ fees and expenses), fines,
penalties (and other charges of any applicable Governmental Authority), licensing fees relating to any item of Collateral, damage to or loss of use of property (including consequential or special damages to third parties or damages to
Borrower’s property), or bodily injury to or death of any person (including any agent or employee of Borrower) (each, a “Claim”), directly or indirectly relating to or arising out of the use of the proceeds of the Loans or
otherwise, the falsity of any representation or warranty of Borrower or Borrower’s failure to comply with the terms of this Agreement or any other Loan Document. The foregoing indemnity shall cover, without limitation, (i) any Claim in
connection with a design or other defect (latent or patent) in any item of equipment or product included in the Collateral, (ii) any Claim for infringement of any patent, copyright, trademark or other intellectual property right, (iii) any
Claim resulting from the presence on or under or the escape, seepage, leakage, spillage, discharge, emission or release of any Hazardous Materials on the premises owned, occupied or leased by Borrower, including any Claims asserted or arising under
any Environmental Law, (iv) any Claim for negligence or strict or absolute liability in tort, or (v) any Claim asserted as to or arising under any Account Control Agreement or any Landlord Agreement; provided, however,
Borrower shall not indemnify Lender for any liability incurred by Lender as a direct and sole result of Lender’s gross negligence or willful misconduct. Such indemnities shall continue in full force and effect, notwithstanding the expiration or
termination of this Agreement. Upon Lender’s written demand, Borrower shall assume and diligently conduct, at its sole cost and expense, the entire defense of Lender, each of its members, partners, and each of their respective, agents,
employees, directors, officers, equity holders, successors and assigns against any indemnified Claim described in this Section 10.3(a). Borrower shall not settle or compromise any Claim against or involving Lender without first obtaining
Lender’s written consent thereto, which consent shall not be unreasonably withheld. 
 (b) Waiver. NOTWITHSTANDING ANYTHING TO
THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, BORROWER AGREES THAT IT SHALL NOT SEEK FROM LENDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES. 
  

 30 

 (c) Survival; Defense. The obligations in this Section 10.3 shall survive payment of
all other Obligations pursuant to Section 12.8. At the election of any Indemnified Person, Borrower shall defend such Indemnified Person using legal counsel satisfactory to such Indemnified Person in such Person’s reasonable
discretion, at the sole cost and expense of Borrower. All amounts owing under this Section 10.3 shall be paid within thirty (30) days after written demand. 
 11. Notices. Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any other agreement
entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by certified mail, postage
prepaid, return receipt requested, or by prepaid nationally recognized overnight courier, as the case may be, at their respective addresses set forth below: 
  

			
	 If to Borrower:
	  	RF Magic, Inc.
		  	10182 Telesis Court, 4th Floor
		  	San Diego, CA 92121
		  	Attention: David Lyle, CFO
		  	Ph: (858) 546-2401 x309
	 If to Lender:
	  	Horizon Technology Funding Company LLC
		  	76 Batterson Park Road
		  	Farmington, CT 06032
		  	Attention: Legal Department
		  	Ph: (860) 676-8654

 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
 12. General Provisions. 
 12.1 Successors and Assigns. This Agreement and the Loan Documents shall bind and inure to the benefit of the respective successors and permitted
assigns of each of the parties; provided, however, neither this Agreement nor any rights hereunder may be assigned by Borrower without Lender’s prior written consent, which consent may be granted or withheld in Lender’s sole
discretion. Lender shall have the right without the consent of or notice to Borrower to sell, transfer, assign, negotiate, or grant participations in all or any part of, or any interest in Lender’s rights and benefits hereunder, except that
Lender may not sell, transfer, assign, negotiate or grant participations in all or any part of, or any interest in Lender’s rights and benefits hereunder to any competitor of Borrower unless an Event of Default shall, have occurred and be
continuing and Borrower shall have accelerated the Obligations. Lender may disclose the Loan Documents and any other financial or other information relating to Borrower or any Subsidiary to any potential participant or assignee of any of the Loans,
provided that such participant or assignee agrees to protect the confidentiality of such documents and information using the same measures that it uses to protect its own confidential information. 
 12.2 Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement. 
  

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 12.3 Severability of Provisions. Each provision of this Agreement shall be several from every
other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 12.4 Entire
Agreement; Construction; Amendments and Waivers. 
 (a) Entire Agreement. This Agreement and each of the other Loan Documents
dated as of the date hereof, taken together, constitute and contain the entire agreement between Borrower and Lender and supersede any and all prior agreements, negotiations, correspondence, understandings and communications between the parties,
whether written or oral, respecting the subject matter hereof. Borrower acknowledges that it is not relying on any representation or agreement made by Lender or any employee, attorney or agent thereof, other than the specific agreements set forth in
this Agreement and the Loan Documents. 
 (b) Construction. This Agreement is the result of negotiations between and has been
reviewed by each of Borrower and Lender executing this Agreement as of the date hereof and their respective counsel; accordingly, this Agreement shall be deemed to be the product of the parties hereto, and no ambiguity shall be construed in favor of
or against Borrower or Lender. Borrower and Lender agree that they intend the literal words of this Agreement and the other Loan Documents and that no parol evidence shall be necessary or appropriate to establish Borrower’s or Lender’s
actual intentions. 
 (c) Amendments and Waivers. Any and all discharges or waivers of, or consents to any departures from any
provision of this Agreement or of any of the other Loan Documents shall not be effective without the written consent of Lender. Any and all amendments and modifications of this Agreement or of any of the other Loan Documents shall not be effective
without the written consent of Lender and Borrower. Any waiver or consent with respect to any provision of the Loan Documents shall be effective only in the specific instance and for the specific purpose for which it was given. No notice to or
demand on Borrower in any case shall entitle Borrower to any other or farther notice or demand in similar or other circumstances. Any amendment, modification, waiver or consent affected in accordance with this Section 12.4 shall be binding upon
Lender and on Borrower. 
 12.5 Reliance by Lender. All covenants, agreements, representations and warranties made herein by Borrower
shall be deemed to be material to and to have been relied upon by Lender, notwithstanding any investigation by Lender. 
 12.6 No Set-Offs
by Borrower. All sums payable by Borrower pursuant to this Agreement or any of the other Loan Documents shall be payable without notice or demand and shall be payable in United States Dollars without set-off or reduction of any manner
whatsoever. 
 12.7 12.7 Counterparts. This Agreement may be executed in any number of counterparts and by different parties on
separate counterparts (including signatures delivered by facsimile or other electronic means), 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. 
  

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 12.8 Survival. All covenants, representations and warranties made in this Agreement shall continue
in full force and effect so long as any Obligations (other than indemnity obligations which have not arisen prior to the date of repayment in full of all other Obligations) or commitment to fund remain outstanding. The obligations of Borrower to
indemnify Lender with respect to the expenses, damages, losses, costs and liabilities described in Section 10.3 shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Lender
have run. 
 13. Relationship of Parties. Borrower and Lender acknowledge, understand and agree that the relationship between
Borrower, on the one hand, and Lender, on the other, is, and at all time shall remain solely that of a borrower and lender. Lender shall not under any circumstances be construed to be a partner or a joint venturer of Borrower or any of its
Affiliates; nor shall Lender under any circumstances be deemed to be in a relationship of confidence or trust or a fiduciary relationship with Borrower or any of its Affiliates, or to owe any fiduciary duty to Borrower or any of its Affiliates.
Lender does not undertake or assume any responsibility or duty to Borrower or any of its Affiliates to select, review, inspect, supervise, pass judgment upon or otherwise inform Borrower or any of its Affiliates of any matter in connection with its
or their Property, any Collateral held by Lender or the operations of Borrower or any of its Affiliates. Borrower and each of its Affiliates shall rely entirely on their own judgment with respect to such matters, and any review, inspection,
supervision, exercise of judgment or supply of information undertaken or assumed by Lender in connection with such matters is solely for the protection of Lender and neither Borrower nor any Affiliate is entitled to rely thereon. 
 14. Confidentiality. All information (other than periodic reports filed by Borrower with the Securities and Exchange Commission) disclosed by
Borrower to Lender in writing or through inspection pursuant to this Agreement shall be considered confidential, except for information that (a) was known to the public prior to disclosure by Borrower under this Agreement, (b) becomes known to the
public through no fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Lender agrees to use the same degree of care to safeguard and prevent
disclosure of such confidential information as Lender uses with its own confidential information, but in any event no less than a reasonable degree of care. Lender shall not disclose such information to any third party (other than to Lender’s
members, partners, attorneys, governmental regulators, or auditors, or to Lender’s subsidiaries and affiliates and prospective transferees and purchasers of the Loans, all subject to the same confidentiality obligation set forth herein or as
required by law, regulation, subpoena or other order to be disclosed) and shall use such information only for purposes of evaluation of its investment in Borrower and the exercise of Lender’s rights and the enforcement of its remedies under
this Agreement and the other Loan Documents. The obligations of confidentiality shall not apply to any information that (a) was known to the public prior to disclosure by Borrower under this Agreement, (b) becomes known to the public through no
fault of Lender, (c) is disclosed to Lender by a third party having a legal right to make such disclosure, or (d) is independently developed by Lender. Notwithstanding the foregoing, Lender’s agreement of confidentiality shall not apply if
Lender has acquired indefeasible title to any Collateral or in connection with any enforcement or exercise of Lender’s rights and remedies under this Agreement following an Event of Default, including the enforcement of Lender’s security
interest in the Collateral. 
  

 33 

 15. 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 CONNECTICUT, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. EACH OF BORROWER AND LENDER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF
CONNECTICUT. BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS,
TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. 
 [Remainder of page intentionally left blank.] 

 

 34 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first
above written. 
  

					
	BORROWER:	 	
		
	RF MAGIC, INC.	 	
			
	By:	 	 /s/ Mark H. Foley
	 	
	Name:	 	Mark H. Foley	 	
	Title:	 	CEO & President	 	
		
	LENDER:	 	
		
	HORIZON TECHNOLOGY FUNDING COMPANY LLC	 	
	By: Horizon Technology Finance, LLC, its sole member	 	
			
	By:	 	 /s/ Robert D. Pomeroy, Jr.
	 	
	Name:	 	Robert D. Pomeroy, Jr.	 	
	Title:	 	Managing Member	 	

  

 35

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