Document:

CONSULTANT

                              ENGAGEMENT AGREEMENT

         This Agreement supercedes and replaces the Corporate Advisor Engagement
Agreement,  (except  as to those  shares of Sun River  Energy,  Inc.  previously
issued to  Consultant),  made the 7th day of May, 2009, by and between Sun River
Energy,  Inc. (the "Company"),  located at 7609 Ralston Road,  Arvada,  Colorado
80002 and Jay Leaver (the  "Consultant"),  located at 1410 High Street,  Denver,
Colorado 80218.

         Sun River Energy, Inc. hereby engages Jay Leaver, as Consultant, under
the following terms and conditions, to be effective as of October 1, 2009.

         WHEREAS, the Company desires professional guidance and advice regarding
Energy  Exploration and Development and desires Consultant to aid it in business
matters; and

         WHEREAS, Consultant has expertise in the area of energy exploration and
project development and  implementation;  and is willing to act as an advisor to
the Company upon the terms and conditions set forth in this Agreement;

         WHEREAS, Consultant is to be hereby engaged to act as President of Sun
River Energy, Inc. on a part-time basis.

         NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  mutual
promises herein contained, the parties hereto agree as follows:

1.       Duties, Scope of Agreement, and Relationship of the Parties

         (a) The  company  hereby  agrees to  retain  Consultant  as  President,
consistent  with  Consultant's  expertise and ability in energy  exploration and
development,  and Consultant agrees to so act for the Company during the term of
this  Agreement  under the Job  Description  attached  as Exhibit B. All parties
understand that Consultant has many other business  interests and will devote as
much time as in his  discretion  as  necessary  to perform his duties under this
Agreement.  In addition,  the company  understands that consultant's  efforts on
behalf of his other interests are the sole and separate property of Consultant.

         (b) The services rendered by consultant to the company pursuant to this
Agreement shall be as an independent contractor at times and dates convenient to
Consultant,  and this  Agreement  does not make  Consultant  the employee of the
Company  for any  purpose  whatsoever.  No  right or  authority  is  granted  to
Consultant to assume or to create any obligation or responsibility, in excess of
$2,500,  express or implied, on behalf of or in the name of the company,  expect
as authorized  by  Resolution  of the Board of Directors.  The company shall not
withhold for  Consultant  any federal or state taxes from the amounts to be paid
to consultant hereunder, and Consultant agrees that he will pay all taxes due on
such amounts.

<PAGE>

         (c)  Consultant  agrees to make  available  to Company his  services as
President on an as needed basis on reasonable request.  Consultant shall provide
planning and other  advisory  services as are necessary to carryout the business
of the Company.

2.       Compensation

(a) The  Company  will pay  $6,000  per  month on the 15th day of each  month to
Consultant as a consulting  fee.  These payments will be made to the account and
entity designated by Consultant.

(b)      Stock compensation is detailed in Exhibit "A".

(c) Other forms of compensation  may occur depending on the nature of a specific
engagement and only upon the mutual agreement of both parties.

3.       Expenses

         The Company shall reimburse Consultant for all pre-approved  reasonable
and  necessary  expenses  incurred by it in carrying  out its duties  under this
Agreement  including  travel.  Consultant  shall  submit  related  receipts  and
documentation with his request for reimbursement.

4.       Renewal; Termination

         (a)  This  Agreement   shall  continue  in  effect  for  6  months  and
thereafter,  if not then terminated,  shall be renewed annually until terminated
by the  parties.  Either  the  Company  or the  Consultant  may  terminate  this
Agreement by giving the other party fifteen (15) days written notice..  However,
termination  of  Consultant  by the Company shall not relieve the Company of its
financial obligations to Consultant as defined herein.

         (b) Subject to the continuing obligations of Consultant under Section 5
below,  either party may terminate this Agreement at any time if the other party
shall fail to fulfill any material obligation under this Agreement and shall not
have cured the breach within 10 days after having received notice thereof.

         (c)  Termination or expiration of this  Agreement  shall not extinguish
any rights of compensation that shall accrue prior to the termination.

<PAGE>

5.       Confidential Information

         (a)  "Confidential  Information,"  as  used in this  Section  5,  means
information  that is not generally  known and that is proprietary to the Company
or that the  Company is  obligated  to treat as  proprietary.  This  information
includes, without limitation:

               (i)  Trade secret information about the Company and its products;

               (ii) Information concerning the Company's business as the Company
                    has conducted it since the Company's  incorporation or as it
                    may conduct it in the future; and

               (iii)Information  concerning any of the Company's past,  current,
                    or possible future products,  including (without limitation)
                    information  about  the  Company's  research,   development,
                    engineering,    purchasing,    manufacturing,    accounting,
                    marketing, selling, or leasing efforts.

         (b) Any information that Consultant  reasonably considers  Confidential
Information, or that the Company treats as Confidential Information,  due to its
unique nature purchased or developed by the Company, not available in the public
domain  or  licensed  or  copyrighted   information   will  be  presumed  to  be
Confidential  Information  (whether  Consultant  or  others  originated  it  and
regardless of how obtained).

         (c) Except as required in its duties to the  Company,  Consultant  will
never,  either during or after the term of this Agreement,  use or disclose such
aforedescribed  Confidential  Information  to any person not  authorized  by the
Company to receive it.

         (d) If this Agreement is terminated, Consultant will promptly turn over
to the Company all records and any compositions,  articles,  devices,  apparatus
and other items that disclose,  describe,  or embody  Confidential  Information,
including  all  copies,   reproductions,   and  specimens  of  the  Confidential
Information  in its  possession,  regardless of who prepared them. The rights of
the  Company  set forth in this  Section 5 are in  addition to any rights of the
Company with respect to protection of trade secrets or confidential  information
arising  out of the common or  statutory  laws of the State of  Colorado  or any
other  state or any country  wherein  Consultant  may from time to time  perform
services  pursuant  to  this  Agreement.   This  Section  5  shall  survive  the
termination or expiration of this Agreement.

<PAGE>

6.       False or Misleading Information

         The Company  warrants  that it will provide  Consultant  with  accurate
financial,  corporate,  and other data required by Consultant  and necessary for
full  disclosure  of all facts  relevant to any efforts  required of  Consultant
under this Agreement. Such information shall be furnished promptly upon request.
If the Company fails to provide such information, or if any information provided
by the Company to  Consultant  shall be false or  misleading,  or if the Company
omits or  fails  to  provide  or  withholds  relevant  material  information  to
Consultant or to any  professionals  engaged  pursuant to paragraph  5(d) above,
then,  in such  event,  any and all fees  paid  hereunder  will be  retained  by
Consultant as liquidated  damages and this Agreement  shall be null and void and
Consultant shall have no further obligation hereunder.  Further, by execution of
this Agreement, the Company hereby indemnifies Consultant from any and all costs
for expenses or damages incurred, and holds Consultant harmless from any and all
claims  and/or  actions  that may arise  out of  providing  false or  misleading
information or by omitting  relevant  information in connection with the efforts
required of Consultant under this Agreement.

7.       Consultant's Best efforts and No Warranty of Information

         Consultant  shall use its best efforts to use reliable  information and
scientific  techniques  associated  with  the  oil and  gas  business.  However,
Consultant  makes no warranty as to the completeness or  interpretation  of such
information,  nor does Consultant  warrant the information with regard to errors
or omissions contained therein. Any reserve estimates, price calculations, price
forecasts,  exploration potential predictions or similar information provided by
Consultant  are, or may well be  estimates  only,  and should not be  considered
predictions of actual results.

8.       Miscellaneous

     (a) Successors and Assigns. This Agreement is binding on and ensures to the
benefit  of  the  Company.   Company  cannot  assign  this   Agreement   without
Consultant's written agreement.

     (b)  Modification.  This  Agreement  may be modified  or amended  only by a
writing signed by both the Company and Consultant.

     (c)  Governing  Law.  The  laws  of  Colorado  will  govern  the  validity,
construction, and performance of this Agreement. Any legal proceeding related to
this Agreement will be brought in an appropriate  Colorado  court,  and both the
Company and  Consultant  hereby  consent to the exclusive  jurisdiction  of that
court for this purpose.

     (d) Construction.  Wherever possible, each provision of this Agreement will
be interpreted so that it is valid under the applicable law. If any provision of
this Agreement is to any extent invalid under the applicable law, that provision
will still be effective to the extent it remains  valid.  The  remainder of this
Agreement also will continue to be valid, and the entire Agreement will continue
to be valid in other jurisdictions.

     (e)  Waivers.  No failure or delay by either the Company or  Consultant  in
exercising  any right or remedy under this Agreement will waive any provision of
the Agreement,  nor will any single or partial exercise by either the Company or
Consultant of any right or remedy under this Agreement  preclude  either of them
from  otherwise or further  exercising  these  rights or remedies,  or any other
rights or remedies granted by any law or any related document.

     (f) Captions.  The headings in this Agreement are for convenience  only and
do not affect this Agreement's interpretation.

     (g)  Entire   Agreement.   This  Agreement   supersedes  all  previous  and
contemporaneous  oral negotiations,  commitments,  writings,  and understandings
between the parties concerning the matters in this Agreement.

     (h)  Notices.  All notices and other  communications  required or permitted
under this  Agreement  shall be in writing  and sent by  registered  first-class
mail,  postage  prepaid,  and shall be effective  five days after mailing to the
addresses  stated  below.  These  addresses  may be  changed at any time by like
notice.

         In the case of the Company:
                           Sun River Energy, LLC
                           Attention: Redgie Green
                           c/o 7609 Ralston Road
                           Arvada, Colorado 80002
                           Ph: 303-422-8127
                           Fx: 303-431-1567

         In the case of Consultant:
                           Jay S. Leaver
                           Leaverite Exploration, Inc.
                           1570 S. Forest St.
                           Denver, Colorado 80222
                           Ph. 720-212-5489
                           Fx. 303-322-2288
                           E-mail: GeoLeaver@aol.com

     (i)  Indemnification.   Company  agrees  to  indemnify  and  hold  harmless
Consultant  from any and all  claims,  actions,  liabilities,  costs,  expenses,
including   attorney  fees  arising  from  claims  made  against  Consultant  in
connection  with  Company's  possession or use of advice,  guidance,  materials,
information, data or other services provided by Consultant under this Agreement.

<PAGE>

     (j) Conflicts of Interest.  Company acknowledges that Consultant is engaged
in the  business  of  providing  petroleum  consulting  for  other  oil  and gas
companies  within  the  United  State and  Canada.  In the event  Consultant  is
requested  by Company to provide  advice and  guidance on or about  geographical
areas that may create a  potential  conflict of  interest  between  Consultant's
other business  matters and the Company's  operations,  Consultant  shall not be
required by Company to render  advice and guidance on such an area.  Company and
Consultant  shall use their best  efforts to notify each other of any  potential
conflicts  of  interests.  In any event,  Consultant's  general  knowledge  that
Company plans to engage,  or is actively  engaging,  in oil and gas  exploration
within an area shall in no way preclude  Consultant,  or  Consultant's  business
entities,  from  performing  land services or  consulting  for other oil and gas
companies within the same area.

<PAGE>

                  IN WITNESS  WHEREOF,  the parties have executed this Agreement
as of the September 23, 2009.

         "The Company"                      "Consultant"
         SUN RIVER ENERGY, INC.             JAY LEAVER

         By:                                By:
            ------------------------          -----------------------------

<PAGE>

                                    Exhibit A

                            Term Sheet - Stock Grants

I.       Stock Grants.

               A.   Company will grant Executive 10,000 shares of Company common
                    stock on the day effective of engagement.

               B.   Future additional Grants shall occur as follows:

                  1. Vesting.  Subject to continuation of engagement  under this
                  or a subsequent agreement, (i) 10,000 shares at the end of 1st
                  quarter of engagement hereunder and, (ii) an additional 10,000
                  shares each  calendar  quarter  thereafter,  contingent on the
                  continuation  of engagement for at least 6 months of the term.
                  Vesting will be accelerated  on a Change in Control,  for that
                  current quarter.

                  2. Executive will enter into a six (6) month lock-up agreement
                  with Company,  to be released upon reasonable  written notice,
                  in discretion of Company.

II.      Change in Control.

               A.   For purpose of the options,  "Change in Control" means:  (a)
                    the consummation of a merger or consolidation of the Company
                    with or into another  entity or any other  transaction,  the
                    stockholders  of  the  Company  immediately  prior  to  such
                    merger,   consolidation   or   other   transaction   own  or
                    beneficially    own    immediately    after   such   merger,
                    consolidation or other transaction 50% or more of the voting
                    power  of the  outstanding  securities  of  each  of (i) the
                    continuing  or  surviving  entity  and  (ii) any  direct  or
                    indirect  parent  entity  of such  continuing  or  surviving
                    entity;  (b) the sale,  transfer or other disposition of all
                    or  substantially  all of the  Company's  assets to a Person
                    which  is not  owned or  controlled  by the  Company  or its
                    stockholders  immediately  prior to such sale,  transfer  or
                    other   disposition;   (c)  individuals   who,   immediately
                    following the effective date of this  Agreement,  constitute
                    the Board (the  "Incumbent  Board")  cease for any reason to
                    constitute  at  least a  majority  of the  Board;  provided,
                    however,  that any individual becoming a director thereafter
                    whose election,  or nomination for election by the Company's
                    shareholders,  was approved by a vote of at least a majority
                    of the directors then  comprising the Incumbent  Board shall
                    be considered as though such individual were a member of the
                    Incumbent Board; or (d) any transaction as a result of which
                    any Person is the  "Beneficial  Owner"  (as  defined in Rule
                    13d-3 under the Exchange Act),  directly or  indirectly,  of
                    securities of the Company  representing  at least 20% of the
                    total  voting  power   represented  by  the  Company's  then
                    outstanding   voting   securities.   For  purposes  of  this
                    definition of Change in Control,  the term "Persons"  means,
                    acting  individually  or  as a  group,  an  individual  or a
                    corporation,  limited liability company, partnership,  joint
                    venture, trust,  unincorporated  organization,  association,
                    government agency or political  subdivision thereof or other
                    entity.

<PAGE>

                                    Exhibit B

                                 Job Description

               A.   Consultant   will  be  involved  in   day-to-day   decisions
                    involving  selection  of  Projects  to  work  on,  and  what
                    resources to allocate to individual Projects.

               B.   Consultant has specific experience in the fields of geology,
                    geophysics,  and  geochemistry  as  relevant  to oil and gas
                    prospects  and plays.  Consultant  will make this  expertise
                    available to the Company.  Company  will  recognize  that in
                    matters  outside  the  specific   expertise  of  Consultant,
                    including  but  not  limited  to  Drilling,  Reservoir,  and
                    Completion  Engineering,   and  Land,  Gas  Marketing,   and
                    Pipeline   Construction,   outside   personnel   should   be
                    consulted.

               C.   Consultant will make specific recommendations for additional
                    personnel  necessary  to continue  intelligent  pursuit of a
                    Project or Projects. Such additional personnel may be in the
                    form of new hires or  Consultants.  Consultant will not make
                    such recommendations without due consideration for the needs
                    of the Company. The Company will make every effort to enable
                    the  Consultant  to form the team  necessary  to further the
                    Company's  interests.  Company  will not  hire or  otherwise
                    obtain team members without the input of Consultant.exh092109.htm

Exhibit 10.1

 

AMENDMENT NO. 3

 

TO

 

LOAN AND SECURITY AGREEMENT

 

This Amendment No. 3 to Loan and Security Agreement (this
“Amendment”) is entered into September 21st, 2009 (the “Amendment Date”), by and between MIPS Technologies, Inc., a Delaware corporation (“Borrower”), and Silicon
Valley Bank (“Bank”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

 

Recitals

 

	
A.  
	
Borrower and Bank have entered into that certain Loan and Security Agreement dated as of July 3, 2008, as amended by that certain Amendment No. 1 to Loan and Security Agreement dated December 18, 2008, and that certain Amendment No. 2 to Loan and Security Agreement and Consent dated May 7, 2009 (as so amended and as may be further amended, restated or
modified, the “Loan Agreement”), pursuant to which the Bank has agreed to extend and make available to Borrower certain advances of money.

 

	
B.  
	
Borrower now desires that Bank extend the maturity date and make certain other changes, all upon the terms and conditions more fully set forth herein.

 

	
C.  
	
Subject to the representations and warranties of Borrower herein and upon the terms and conditions set forth in this Amendment, Bank is willing to so amend the Loan Agreement.

 

Agreement

 

NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:

 

	
1.  
	
Amendments to Loan Agreement.

 

	
1.1  
	
Section 13 (Definitions).  The following definitions in Section 13.1 of the Loan Agreement are amended in their entirety to read as follows:

 

““EBITDA” shall mean, for any fiscal period, (a) Net Income for such period, plus (b) Interest Expense for such period, plus (c) consolidated income taxes of Borrower and its Subsidiaries for such period, plus (d) to the extent deducted in the calculation of Net
Income, consolidated depreciation expense and amortization expense of Borrower and its Subsidiaries for such period, plus (e) other consolidated non-cash expenses, including non-cash stock compensation expense, of Borrower and its Subsidiaries for such period, plus (f) non-cash charges for the amortization of (i) amounts in the Founders Deferral Escrow Account (as defined in the Chipidea Share Purchase Agreement) if and to the extent such amounts constitute employee compensation and (ii) amounts tied to the non-cash
charges for the discontinued operations associated with the Chipidea sale.”

 

““Revolving Line Maturity Date” is the 364th day following the Amendment 3 Date.”

 

	
1.2  
	
Section 13 (Definitions).  The following definition of “Amendment 3 Date” shall be added to Section 13.1 of the Loan Agreement in its alphabetically appropriate position:

 

““Amendment 3 Date” is the Amendment Date as defined in that certain Amendment No. 3 to Loan and Security Agreement by and between Borrower and Bank which amendment added this definition.”

 

	
1.3  
	
Exhibit E to Loan Agreement (Compliance Certificate).  Exhibit E (“Compliance Certificate”) of the Loan Agreement is amended in its entirety by deleting it and replacing it with Exhibit A attached hereto.

 

	
2.  
	
Borrower’s Representations And Warranties.

 

	
2.1  
	
Borrower represents and warrants that:

 

	
(a)  
	
immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no
Event of Default has occurred and is continuing;

 

 

 

 

 

 

 

	
(b)  
	
Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

 

	
(c)  
	
the certificate of incorporation delivered to Bank in connection with this Amendment and the bylaws and other organizational documents of Borrower delivered to Bank in connection with the execution of the Loan Agreement, remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

	
(d)  
	
the execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of Borrower;

 

	
(e)  
	
this Amendment has been duly executed and delivered by the Borrower and is the binding obligation of Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating
to or affecting creditors’ rights; and

 

	
(f)  
	
as of the date hereof, it has no defenses against the obligations to pay any amounts under the Obligations.  Borrower acknowledges that Bank has acted in good faith and has conducted in a commercially reasonable manner its relationships with Borrower in connection with this Amendment and in connection with the Loan Documents.

 

	
2.2  
	
Borrower understands and acknowledges that Bank is entering into this Amendment in reliance upon, and in partial consideration for, the representations and warranties in Section 2.1, and agrees that such reliance is reasonable and appropriate.

 

	
3.  
	
Limitation.  The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein
or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof.  Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.  This
Amendment is a Loan Document and any breach of this Amendment by Borrower shall be an immediate Event of Default under the Loan Agreement.

 

	
4.  
	
Effectiveness.  This Amendment shall become effective upon the satisfaction of all the following conditions precedent:

 

	
4.1  
	
Amendment.  Borrower and Bank shall have duly executed and delivered this Amendment to Bank.

 

	
4.2  
	
Loan Fees.  Borrower shall have paid to Bank a loan fee in the amount of $25,000.

 

	
4.3  
	
Bank Expenses.  Borrower shall have paid all Bank Expenses incurred through the date of this Amendment.

 

	
5.  
	
Counterparts.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall
be deemed an original of this Amendment.

 

	
6.  
	
Integration.  This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations,
oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with respect to Borrower shall remain in full force and effect.

 

	
7.  
	
Governing Law; Venue.  THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.  Borrower and Bank each submit to the exclusive
jurisdiction of the State and Federal courts in Santa Clara County, California.

 

 

2

 

 

[Remainder of page intentionally left blank - signature page follows]

 

 

 

  

3

  

[Signature page to Amendment No. 3 to Loan and Security Agreement]

 

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

 

	
  
	
Borrower:
	
MIPS Technologies, Inc.

	
  
	
a Delaware corporation

 

 

	
  
	
 
	 By:  /s/ MAURY AUSTIN           

	
  
	
 
	 Printed Name: Maury Austin          

	
  
	
 
	 Title: CFO                

 

	
  
	
Bank:
	
Silicon Valley Bank

 

 

	
  
	
 
	 By:  /s/ NICK TSIAGKAS            

	
  
	
 
	 Printed Name: Nick Tsiagkas           

	
  
	
 
	 Title: Relationship Manager           

 

 

 

 

 

 

  

  

  

EXHIBIT A TO AMENDMENT NO. 3

 

EXHIBIT E TO LOAN AGREEMENT - COMPLIANCE CERTIFICATE

TO:                     SILICON VALLEY BANK                                                                                                                                         Date:  __________ 

FROM:               MIPS TECHNOLOGIES, INC.

The undersigned authorized officer of MIPS Technologies, Inc. (“Borrower”) certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement ”), (1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below, (2) there are no Events of Default, (3) all representations
and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, (4) Borrower, and each of its
Subsidiaries, has timely filed all required tax returns and reports (or has been granted an extension to file such tax return and reports), and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement, and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Bank.  Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement,
and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

	
Please indicate compliance or qualification status by circling Yes/No under “Complies” or ”Qualifies” column.

	  
	
Reporting Covenants
	
Required by*
	
Complies

	  	  	  
	
Borrowing Base Certificate
	
If any amount is outstanding under the Revolving Line:

30 days after month end

Otherwise:

5 days prior to borrowing under the Revolving Line
	
Yes   No

	
A/R & A/P Agings plus Deferred Revenue
	
With every Borrowing Base Certificate
	
Yes   No

	
10K (or link thereto)
	
5 days after SEC filing or 90 days after FYE
	
Yes   No

	
10Q (or link thereto)
	
5 days after SEC filing or 45 days after FQE
	
Yes   No

	
Compliance Certificate
	
With every 10K or 10Q report
	
Yes   No

	
Consolidating Financial Statements
	
With every 10K or 10Q report
	
Yes   No

	
Royalty Trend Report
	
30 days after FQE
	
Yes   No

	
Annual financial projections
	
90 days after FYE or 10 days after Board  approval
	
Yes   No

	  
	
FYE=Fiscal Year End     FQE=Fiscal Quarter End                                                                                                *
If more than one deadline is indicated, the earlier deadline is the required deadline.

	
Financial Covenants
	
Required
	
Actual
	
Complies

	
Maintain at the end of each quarter:
	  	  	  
	
Maximum Senior Debt Leverage Ratio
	
2.00 to 1.00
	
_____:1.00
	
Yes   No

	
Minimum Adjusted Quick Ratio
	
1.75 to 1.00
	
_____:1.00
	
Yes   No

	
Minimum Fixed Charge Coverage

(rolling two fiscal quarters’ basis)
	
1.50 to 1.00
	
_____:1.00
	
Yes   No

	
Other Items
	
Required to Qualify
	
Actual
	
Qualifies

	
Increase in Permitted Investments (e)(ii)
	
Consolidated cash + Cash Equivalents at FQE >= $14,000,000
	
$___________
	
Yes   No

 

 

 

 

  

2

  

The following financial covenant analys[is][es] and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

The following are the exceptions with respect to the certification above:  (if none, state “No exceptions to note.”)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	
MIPS Technologies, Inc.

 

 

By:

Name:

Title:

 
	
BANK USE ONLY

 

Received by: ____________________   

authorized signer

Date:           _______________________

 

Verified: ________________________

authorized signer

Date:           _______________________

 

Compliance Status:           Yes     No

 

 

 

 

  

3

  

Schedule 1 to Exhibit E to Loan Agreement - Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:           ____________________

I.           Calculation of Quick Assets

 

	
A.
	
Aggregate value of the unrestricted cash and Cash Equivalents of Borrower and its Subsidiaries (not less than 50% of which are held in the US)

 
	
    $____________

	
B.
	
Aggregate value of the gross accounts receivable of Borrower and its Subsidiaries

 
	
    $____________

	
C.
	
Aggregate value of the Investments with maturities of fewer than 12 months of Borrower and it Subsidiaries

 
	
    $____________

	
D.
	
Quick Assets (the sum of lines A through C)
	
    $____________

	  	  	  

*           *           *           *           *

II.           Calculation of EBITDA  (on a rolling-2 quarter basis)

	
A.
	
Net Income
	
$____________

	
B.
	
To the extent included in the determination of Net Income
	  
	  	
1.           Interest Expense

 
	
$____________

	  	
2.           Consolidated income taxes

 
	
$____________

	  	
3.           Amortization expense

 
	
$____________

	  	
4.           Depreciation expense

 
	
$____________

	  	
5.           All other non-cash charges (including non-cash stock compensation expense)

 
	
$____________

	  	
6.           Non-cash charges for the amortization of (i) amounts in the Founders Deferral Escrow Account (as defined in the Chipidea Share Purchase Agreement) if and to the extent such amounts constitute employee compensation and (ii) amounts tied to the non-cash charges for the discontinued
operations associated with the Chipidea sale.
	
$____________

	  	
7.           The sum of lines 1 through 6

 
	
$____________

	
C.
	
EBITDA (line A plus line B.7)
	
$____________

*           *           *           *           *

 

 

 

 

  

4

  

III.           Fixed Charge Coverage Ratio Covenant (Section 6.7(a) of Loan Agreement)

Required:

Fixed Charge Coverage Ratio as at the last day of any period of two consecutive fiscal quarters ending with any fiscal quarters set forth below to be not less than the ratio set forth below opposite such fiscal quarters:

	
Fiscal Quarter Ending

 
	
Fixed Charge Coverage Ratio

	
March 31, 2009 and thereafter
	
1.50:1.00

Actual:

	
A.
	
EBITDA (from Line II.C above)

 
	
$____________

	
B.
	
Unfunded capital expenditures

 
	
    $____________

	
C.
	
Line A minus Line B

 
	
$____________

	
D.
	
Scheduled payments of principal and interest on all Indebtedness (for the same two rolling quarters, but excluding the pay-off or pre-payment of Indebtedness to Jefferies Finance LLC on or before July 3, 2008)

 
	
$____________

	
E.
	
Fixed Charge Coverage Ratio
	
_____:1.00

 

Is line III.E equal to or greater than the required ratios set forth above? (please circle answer)

                 No,
not in compliance                                                                                                                                    Yes,
in compliance

*           *           *           *           *

IV.           Senior Debt Leverage Ratio (Section 6.7(b) of Loan Agreement)

 

Required:

Senior Debt Leverage Ratio of not more than 2.00:1.00 as of the last day of any fiscal quarter

Actual:

	
A.
	
All Indebtedness (including Advances and Term Loans)  owed to banks

 
	
$____________

	
B.
	
Capital lease obligations

 
	
$____________

	
C.
	
Sum of Line A plus Line B

 
	
$____________

	
D.
	
EBITDA (line II.C above) annualized

 
	
    $____________

	
E.
	
Senior Debt Leverage Ratio (line C divided by line D)

 
	
_____:1.00

Is line IV.E equal to or less than the required ratios set forth above? (please circle answer)

 

                 No,
not in compliance                                                                                                                                    Yes,
in compliance

 

*           *           *           *           *

 

 

 

 

  

5

  

V.           Adjusted Quick Ratio (Section 6.7(c) of Loan Agreement)

Required:

	
Fiscal Quarter Ending

 
	
Adjusted Quick Ratio

	
June 30, 2009 and thereafter
	
1.75:1.00

Actual:

	
A.
	
Quick Assets (Line I.D above)

 
	
$____________

	
B.
	
Current Liabilities (as defined in the Agreement)

 
	
$____________

	
C.
	
Deferred Revenue

 
	
$____________

	
D.
	
Line B minus line C

 
	
$____________

	
E.
	
Adjusted Quick Ratio (line A divided by line D)

 
	
_____:1.00

Is line V.G equal to or greater than the number required in the table above? (please circle answer)

 

                 No,
not in compliance                                                                                                                                    Yes,
in compliance

 

*           *           *           *           *

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