On January 16, 2014, NeoPhotonics Corporation entered into a First Amendment to Credit Agreement to that certain Revolving Credit and Term Loan Agreement, dated as of March 21, 2013, with Comerica Bank, as Administrative Agent and Lead Arranger, and the lenders from time to time party thereto. The Amendment modified one of the financial covenants in the Credit Agreement to increase the maximum funded debt to adjusted EBITDA ratio threshold for each fiscal quarter beginning December 31, 2013 through September 30, 2014. In addition, the Amendment increased the applicable interest margins by 0.25% per annum beginning on the effective date of the Amendment through the date of delivery of the financial statements for the quarter ended June 30, 2014 in accordance with a revised margin grid which includes pricing based on higher funded debt to adjusted EBITDA ratios.

Loans under the term loan facility bear interest from the Amendment effective date through the date of delivery of the financial statements for the quarter ended June 30, 2014, at the company's option, at a rate equal to either the LIBOR rate, plus an applicable margin equal to 3.00% per annum, or a base rate, plus an applicable margin equal to 2.00% per annum. Loans under the revolving loan facility bear interest from the Amendment effective date through the date of delivery of the financial statements for the quarter ended June 30, 2014, at the company's option, at a rate equal to either the LIBOR rate, plus an applicable margin equal to 2.75% per annum, or a base rate, plus an applicable margin equal to 1.75% per annum. Thereafter pricing will be adjusted quarterly in accordance with the revised margin pricing grid in the Amendment based on the company's ratio of funded debt to adjusted EBITDA.

The Amendment also: provided for an extension for performance of delivery of certain post closing requirements; and added provisions intended to address the impact of regulatory changes caused by the Dodd-Frank Act applicable to swaps. The Amendment also provided for an extension until February 15, 2014 for the delivery of the company's financial statements and related reports for the first three fiscal quarters of the fiscal year ending December 31, 2013.