10.

DEBT AGREEMENTS

On December 7, 2012, we entered into a credit agreement with a financial institution that provided us with a $12.5 million unsecured revolving credit and letter of credit facility, with a $3.0 million maximum amount for outstanding letters of credit. Borrowings under the credit agreement bear interest at a LIBOR-based rate or a floating rate of 1% above the prevailing prime rate. The floating rate will not be less than the greatest of (a) a one month LIBOR-based rate plus 1.00% per annum, (b) the federal funds effective rate plus 0.50% per annum, and (c) the prevailing prime rate. The rate we must pay for that portion of the credit agreement which is not utilized is 0.05% per annum. The credit agreement permits us to pay cash dividends in an amount not to exceed $1.0 million per calendar year so long as we are not in default before and after giving effect to such dividends.

We also have a £1.0 million revolving credit facility in the United Kingdom and a €1.5 million revolving credit facility in Germany. As of December 30, 2013, the uncommitted 100.0 million New Taiwan Dollar credit facility that was previously available to us expired and to date we have not renewed this credit facility.

We have an uncommitted credit facility in China in the amount of 40.0 million Chinese Yuan (approximately $6.6 million) that was renewed on February 24, 2014 with an expiration date of February 24, 2015.

All of our credit facilities are unsecured.

At both January 31, 2014 and October 31, 2013, we had $3.3 million of borrowings outstanding under our credit facility in China. We had no other debt or borrowings under any of our other credit facilities. At January 31, 2014 we were in compliance with all covenants contained in our credit agreements and, as of that date, we had total unutilized credit facilities of approximately $19.5 million.