On July 3, 2013, TranSwitch Corp. entered into a business financing modification agreement with Bridge Bank, National Association, amending the terms of that certain amended and restated business financing agreement, as amended, between the company and Bridge Bank dated April 4, 2011. Pursuant to the terms of the modification agreement, the maturity date of the financing agreement was extended until July 3, 2014.

The financing agreement as amended by the modification agreement contains customary representations, warranties, and affirmative and negative covenants for facilities of this type, including the payment of certain fees, restrictions on dispositions of the company's assets, changes in business, and incurrence of certain indebtedness and encumbrances. The financing agreement as amended by the modification agreement also contains customary events of default, including payment defaults and a breach of representations and warranties and covenants. If an event of default occurs and is continuing, Bridge Bank has customary rights and remedies under the financing agreement, including the right to declare all outstanding indebtedness under the facility immediately due and payable and ceasing to advance money or extend credit.