This Loan Agreement (this “Agreement”) is entered into by and between Fiberstars, Inc. (“Borrower”) and WELLS FARGO
BANK, NATIONAL ASSOCIATION (“Bank”) and sets forth the terms and conditions which govern all Borrower’s commercial
credit accommodations form Bank, whether now existing or hereafter granted (each, a “Credit” and collectively, “Credits”),
which terms and conditions are in addition to those set forth in any other contract, instrument or document (collectively with
this Agreement, the “Loan Documents”) required by this Agreement or heretofore or at any time hereafter delivered to Bank in
connection with any Credit.
I. REPRESENTATIONS AND WARRENTIES . Borrower makes the following representations and warranties to Bank,
which representations and warranties shall be true as of the date hereof and on the date of each extension of credit under each
Credit with the same effect as through make on each such date:
(a) Legal Status . Borrower is a corporation , duly organized and existing and in good standing under the laws of the State
of California , and is qualified or licensed to do business in all jurisdictions in which such qualification or licensing is required
or in which the failure to be qualified or licensed could have a material adverse effect on Borrower.
(b) Authorization and Validity . Each of the Loan Documents has been duly authorized, and upon its execution and
delivery to Bank will constitute a legal valid and binding obligation of Borrower or the party which executes the same,
enforceable in accordance with its respective terms.
(c) No Violation . The execution, delivery and performance by Borrower of each of the Loan Documents do not violate any
provision of law or regulation, or contravene any provision of Borrower’s Articles of Incorporation or By-Laws, or result in any
breach of or default under any agreement, indenture or other instrument to which Borrower is a party or by which Borrower may
(d) No Litigatio