Exhibit 10.32

CERTAIN MATERIAL (INDICATED BY ASTERISKS) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

Execution Version

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Agreement”) is
entered into as of February 13, 2019, among Restoration Robotics, Inc., a
Delaware corporation (the “Borrower”), Solar Capital Ltd., a Maryland
corporation (in its capacity as collateral agent, the “Collateral Agent”) and
the Lenders party hereto, comprising the Required Lenders under the Loan
Agreement referred to below (each, a “Lender” and, collectively, the “Lenders”).

Recitals

A.The Borrower, the Lenders party thereto, and the Collateral Agent, are parties
to that certain Loan and Security Agreement, dated as of May 10, 2018, as
amended by that certain First Amendment to Loan and Security Agreement, dated as
of June 29, 2018 and that certain Second Amendment to Loan and Security
Agreement, entered into as of November 2, 2018 (as amended, supplemented or
otherwise modified prior to the date hereof, the “Loan Agreement”).

B.The Borrower has requested certain amendments to the Loan Agreement. Although
the Lenders and the Collateral Agent are under no obligation to do so, they have
agreed to such requests, subject to the terms and conditions hereof.

Agreement

NOW, THEREFORE, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, the parties hereto agree as
follows:

1.Definitions. Capitalized terms used but not defined in this Agreement shall
have the meanings given to them in the Loan Agreement.

2.Amendments to the Loan Agreement. The Loan Agreement shall be amended as
follows:

2.1Definition of Final Fee. The definition of “Final Fee” is hereby amended by
replacing “Eighty Hundred Thirty Thousand Dollars ($830,000.00)” with “Nine
Hundred Sixty Thousand Dollars ($960,000.00).”

2.2New Section 6.12. A new Section 6.12 shall be added to the Loan Agreement as
follows:

6.12Equity or Subordinated Debt Raise. On or before February 28, 2019, Borrower
shall have provided evidence reasonably satisfactory to the Collateral Agent
that Borrower has received after February 1, 2019 at least Five Million Dollars
($5,000,000.00) in aggregate unrestricted net cash proceeds from the sale and
issuance of Borrower’s common or preferred stock pursuant to one or more bona
fide equity financings or the issuance of Subordinated Debt, in each case on
terms reasonably acceptable to Collateral Agent

 

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

 

2.3New Section 6.13. A new Section 6.13 shall be added to the Loan Agreement as
follows:

6.13Letter of Intent. On or before February 28, 2019, Borrower shall have
provided an executed letter of intent for the acquisition of 100% of the equity
of or all or substantially all of the assets (with an assumption of all
liabilities of) the Borrower or the merger of the Borrower, including the
repayment in full of the Obligations, in form and substance satisfactory to the
Collateral Agent.

2.4Section 7.13. Section 7.13 of the Loan Agreement shall be amended and
restated in its entirety as follows:

7.13Minimum Liquidity. Borrower shall not allow, at any time, the unrestricted
cash and Cash Equivalents of Borrower and its Subsidiaries to be an amount less
than (a) as of any date of determination on or prior to June 15, 2019, Ten
Million Five Hundred Thousand Dollars ($10,500,000.00), and (b) as of any date
of determination on or after June 16, 2019 Twelve Million Five Hundred Thousand
Dollars ($12,500,000.00); provided, however, this covenant shall no longer apply
after the latest of the following to occur, (i) Borrower has provided evidence
reasonably satisfactory to the Collateral Agent that Borrower has received after
March 23, 2018 at least Twenty Five Million Dollars ($25,000,000.00) in
aggregate unrestricted net cash proceeds from the sale and issuance of
Borrower’s common or preferred stock pursuant to one or more bona fide equity
financings on terms reasonably acceptable to Collateral Agent, (ii) Borrower has
provided evidence reasonably satisfactory to the Collateral Agent that Borrower
has at least Fifteen Million Dollars ($15,000,000.00) of actual net revenue for
any trailing six-month period ending after November 1, 2018, and (iii) December
31, 2019.

2.5Section 8.2. Section 8.2(a) of the Loan Agreement is hereby amended and
restated as follows:

(a)Borrower or any of its Subsidiaries fails or neglects to perform any
obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.4
(Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of
Intellectual Property Rights), 6.9 (Landlord Waivers; Bailee Waivers), 6.10
(Creation/Acquisition of Subsidiaries), Section 6.12 (Equity or Subordinated
Debt Raise), Section 6.13 (Letter of Intent) or Borrower violates any provision
in Section 7; or

2.6Exhibit D. Exhibit G to the Loan Agreement shall be replaced in its entirety
with Exhibit A hereto.

3.Conditions to Effectiveness. The effectiveness of Section 2 shall be subject
to the satisfaction of each of the following conditions precedent, each in form
and substance reasonably satisfactory to Collateral Agent:

3.1the due execution and delivery to the Collateral Agent of this Agreement by
each party hereto;

3.2the Borrower shall have paid to the Lenders in accordance with their
respective Pro Rata Shares an amendment fee of Twenty Thousand Dollars
($20,000.00); and

3.3the Borrower shall have paid to the Lenders the reasonable out-of-pocket
costs and expenses of the Collateral Agent and the Lenders party hereto, and the
reasonable fees and disbursements of counsel to the Collateral Agent and the
Lenders party hereto, in connection with the negotiation, preparation, execution
and delivery of this Agreement and any other documents to be delivered in
connection herewith.

2

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

 

4.Representations and Warranties. The Borrower represents and warrants to the
Collateral Agent and each Lender as follows:

4.1Each of the representations and warranties made by the Borrower in or
pursuant to any Loan Document (a) that is qualified by materiality is true and
correct, and (b) that is not qualified by materiality is true and correct in all
material respects, in each case, on and as of the date of this Agreement, except
to the extent that any such representation and warranty specifically relates to
an earlier date, in which case such representation and warranty was true and
correct in all material respects as of such earlier date.

4.2The Borrower has the power and authority to execute and deliver this
Agreement and to perform its obligations under the Loan Documents.

4.3The execution and delivery by the Borrower of this Agreement, the performance
by Borrower of its obligations under the Loan Agreement, have been duly
authorized by all necessary corporate action on the part of the Borrower.

4.4The execution and delivery by the Borrower of this Agreement and the
performance by the Borrower of its obligations hereunder do not (a) conflict
with any of the Operating Documents of the Borrower, (b) contravene, conflict
with, constitute a default under or violate any material Requirement of Law
applicable to the Borrower, (c) contravene, conflict or violate any applicable
order, writ, judgment, injunction, decree, determination or award of any
Governmental Authority by which Borrower or any of its property or assets may be
bound or affected, (d) require any action by, filing, registration, or
qualification with, or Governmental Approval from, any Governmental Authority
(except such Governmental Approvals which have already been obtained and are in
full force and effect), or (e) constitute an event of default under any material
agreement by which Borrower or any of its properties, is bound.

4.5This Agreement has been duly executed and delivered by the Borrower and is
the valid and binding obligation of the Borrower, enforceable against the
Borrower 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.

4.6Both immediately prior to giving effect hereto and immediately thereafter, no
Default or Event of Default has occurred and is continuing under the Loan
Agreement or the Loan Documents.

5.Reaffirmation of Loan Documents. The Borrower hereby grants, ratifies and
reaffirms the security interest in its Collateral granted to the Collateral
Agent pursuant to the terms of the Loan Agreement, and also ratifies and
reaffirms its obligations under each Loan Document to which it is party, and
acknowledges and agrees that each such Loan Document shall remain in full force
and effect after giving effect to the consummation of this Agreement. This
Agreement is not a novation and the terms and conditions of this Agreement shall
be in addition to and supplemental to all terms and conditions set forth in the
Loan Documents. In the event of any conflict or inconsistency between this
Agreement and the terms of any other Loan Document, the terms of this Agreement
shall be controlling, but such other Loan Document shall not otherwise be
affected or the rights therein impaired.

3

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

 

6.Integration. This Agreement and the other Loan Documents represent the entire
agreement relating to the subject matter of this Agreement and supersede all
prior negotiations and agreements with respect to the substance of this
Agreement. All prior agreements, understandings, representations, warranties,
and negotiations between the parties about the subject matter of this Agreement
and the Loan Documents merge into this Agreement and the Loan Documents

7.Counterparts. This Agreement may be executed in any number of counterparts and
all of such counterparts taken together shall be deemed to constitute one and
the same instrument.

8.Miscellaneous.

8.1Except as expressly amended pursuant hereto, the Loan Agreement and the other
Loan Documents shall remain unchanged and in full force and effect and are
hereby ratified and confirmed in all respects.

8.2This Agreement shall constitute a Loan Document under the Loan Agreement.

8.3Each provision of this Agreement is severable from every other provision in
determining the enforceability of any provision.

8.4This Agreement is effective for the purposes set forth herein and shall be
limited precisely as written and shall not be deemed to (a) be a consent to any
Agreement, waiver or modification of any term or condition of any Loan Document,
or (b) otherwise prejudice any right or remedy which the Collateral Agent or any
Lender may now have or may have in the future under or in connection with any
Loan Document.

8.5This Agreement and all documents related hereto shall constitute Loan
Documents, shall be construed in connection with and as part of the Loan
Documents.

9.Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HERETO SHALL IN ALL RESPECTS BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH,
THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF
LAWS PRINCIPLES OF SUCH STATE (OTHER THAN SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW)), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, REGARDLESS OF THE LOCATION OF THE COLLATERAL, PROVIDED, HOWEVER,
THAT IF THE LAWS OF ANY JURISDICTION OTHER THAN NEW YORK SHALL GOVERN IN REGARD
TO THE VALIDITY, PERFECTION OR EFFECT OF PERFECTION OF ANY LIEN OR IN REGARD TO
PROCEDURAL MATTERS AFFECTING ENFORCEMENT OF ANY LIENS IN COLLATERAL, SUCH LAWS
OF SUCH OTHER JURISDICTIONS SHALL CONTINUE TO APPLY TO THAT EXTENT. This
Agreement is subject to the provisions of Section 11 of the Loan Agreement
relating to jurisdiction, venue, jury trial waiver and judicial reference, which
provisions are by this reference incorporated herein, mutatis mutandis, as if
set forth herein in full.

[Signature page follows.]

 

4

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

 

IN WITNESS WH EREOF, the parties hereto have duly executed this Agree me nt, as
of the date first above written.

 

THE BORROWER

 

 

RESTORATION ROBOTICS, INC.

 

 

 

 

 

 

 

 

By:

/s/ Mark Hair

 

Name:

 

Mark Hair

 

Title:

 

CFO

 

 

 

[Signature Page to Restoration Robotics Third Amendment to LSA]

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

 

 

COLLATERAL AGENT AND LENDER:

 

 

SOLAR CAPITAL LTD.

 

 

 

 

 

 

 

 

By:

/s/ Anthony Storino

 

Name:

 

Anthony Storino

 

Title:

 

Authorized Signatory

 

 

 

LENDER:

 

 

SCP PRIVATE CREDIT INCOME FUNDS L.P.

 

 

 

 

 

 

 

 

By:

/s/ Anthony Storino

 

Name:

 

Anthony Storino

 

Title:

 

Authorized Signatory

 

 

 

LENDER:

 

 

SUNS SPV LLC

 

 

 

 

 

 

 

 

By:

/s/ Anthony Storino

 

Name:

 

Anthony Storino

 

Title:

 

Authorized Signatory

 

 

[Signature Page to Restoration Robotics Third Amendment to LSA]

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

 

 

LENDER:

 

 

WESTERN ALLIANCE BANK

 

 

 

 

 

 

 

 

By:

/s/ Lindsay Fouty

 

Name:

 

Lindsay Fouty

 

Title:

 

VP, Portfolio Management

 

 

 

 

 

[Signature Page to Restoration Robotics Third Amendment to LSA]

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

 

Exhibit A

Replacement Exhibit D

[See attached]

 

 

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

 

EXHIBIT D

Compliance Certificate

TO:

SOLAR CAPITAL LTD., as Collateral Agent and Lender
WESTERN ALLIANCE BANK, as Lender

FROM:

Restoration Robotics, Inc.

The undersigned authorized officer (“Officer”) of Restoration Robotics, Inc.
(“Borrower”), hereby certifies that in accordance with the terms and conditions
of the Loan and Security Agreement dated as of May 10, 2018 by and among
Borrower, Collateral Agent, and the Lenders from time to time party thereto (the
“Loan Agreement;” capitalized terms used but not otherwise defined herein shall
have the meanings given them in the Loan Agreement),

(a)Borrower is in complete compliance for the period ending ________________
with all required covenants except as noted below;

(b)There are no Events of Default or events that with the passage of time could
result in an Event of Default, except as noted below;

(c)Except as noted below, all representations and warranties of Borrower stated
in the Loan Documents (other than the Warrants) are true and correct in all
material respects on date hereof; 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

(d)Borrower, and each of Borrower’s Subsidiaries, has timely filed all required
tax returns and reports, Borrower, and each of Borrower’s Subsidiaries, has
timely paid all foreign, federal, state, and local taxes, assessments, deposits
and contributions owed by Borrower, or Subsidiary, except as otherwise permitted
pursuant to the terms of Section 5.8 of the Loan Agreement;

(e)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 Collateral Agent and the
Lenders.

Attached are the required documents, if any, supporting our certification(s).
The Officer, on behalf of Borrower, further certifies that the attached
financial statements are prepared in accordance with Generally Accepted
Accounting Principles (GAAP) and are consistently applied from one period to the
next except as explained in an accompanying letter or footnotes and except, in
the case of unaudited financial statements, for the absence of footnotes and
subject to year-end and audit adjustments as to the interim financial
statements.

 

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

 

Please indicate compliance status since the last Compliance Certificate by
circling Yes, No, or N/A under “Complies” column.

 

Reporting Covenant

Requirement

Actual

Complies

1)

Financial statements

Monthly within 30 days

 

Yes

No

N/A

2)

Annual (CPA Audited) statements

Within 180 days after FYE

 

Yes

No

N/A

3)

Annual Financial Projections/Budget (prepared on a monthly basis)

Annually (within 60 days after FYE or 10 days of approval), and when revised
(within 7 days of approval)

 

Yes

No

N/A

4)

8-K, 10-K and 10-Q Filings

If applicable, within 5 days of filing

 

Yes

No

N/A

5)

Compliance Certificate

Monthly within 30 days

 

Yes

No

N/A

6)

Total amount of Borrower’s unrestricted cash and Cash Equivalents at the last
day of the measurement period

 

$______

Yes

No

N/A

7)

Total amount of Borrower’s Subsidiaries’ unrestricted cash and Cash Equivalents
at the last day of the measurement period

 

$______

Yes

No

N/A

Deposit and Securities Accounts
(Please list all accounts; attach separate sheet if additional space needed)

 

Institution Name

Account Number

New
Account?

Account Control Agreement in place?

1)

 

 

Yes

No

Yes

No

2)

 

 

Yes

No

Yes

No

3)

 

 

Yes

No

Yes

No

4)

 

 

Yes

No

Yes

No

Financial Covenants

[7.13 – Minimum Liquidity Requirement

 

1.

Unrestricted Cash and Cash Equivalents:

___________________]1

2.

Does this comply with the Minimum of $10,500,000 on or prior to June 15, 2019 or
$12,000,000 thereafter?

Yes

No

 

 

 

1 

To be included only if applicable.

 

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

 

[7.14 – Minimum Revenue Requirement

1.

Actual 12 month Trailing Revenue for this month:

$ ___________________

2.

Does this comply with the Minimum Revenue Required in Column D below for this
month:

Yes

No

 

A

B

C

D

Month Ending

Management Case Revenue

Projection (12 Month Trailing)

Minimum Percent

Achievement for

Covenant

Minimum Revenue Required for

Covenant (12 Month Trailing)

9/30/2018

[***]

[***]

[***]

10/31/2018

[***]

[***]

[***]

11/30/2018

[***]

[***]

[***]

12/31/2018

[***]

[***]

[***]

1/31/2019

[***]

[***]

[***]

2/28/2019

[***]

[***]

[***]

3/31/2019

[***]

[***]

[***]

4/30/2019

[***]

[***]

[***]

5/31/2019

[***]

[***]

[***]

6/30/2019

[***]

[***]

[***]

7/31/2019

[***]

[***]

[***]

8/31/2019

[***]

[***]

[***]

9/30/2019

[***]

[***]

[***]

10/31/2019

[***]

[***]

[***]

11/30/2019

[***]

[***]

[***]

12/31/2019

[***]

[***]

[***]

1/31/2020

[***]

[***]

[***]

2/29/2020

[***]

[***]

[***]

3/31/2020

[***]

[***]

[***]

4/30/2020

[***]

[***]

[***]

5/31/2020

[***]

[***]

[***]

[***] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

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

 

6/30/2020

[***]

[***]

[***]

7/31/2020

[***]

[***]

[***]

8/31/2020

[***]

[***]

[***]

9/30/2020

[***]

[***]

[***]

10/31/2020

[***]

[***]

[***]

11/30/2020

[***]

[***]

[***]

12/31/2020

[***]

[***]

[***]

1/31/2021

[***]

[***]

[***]

2/28/2021

[***]

[***]

[***]

3/31/2021

[***]

[***]

[***]

4/30/2021

[***]

[***]

[***]

5/31/2021

[***]

[***]

[***]

6/30/2021

[***]

[***]

[***]

7/31/2021

[***]

[***]

[***]

8/31/2021

[***]

[***]

[***]

9/30/2021

[***]

[***]

[***]

10/31/2021

[***]

[***]

[***]

11/30/2021

[***]

[***]

[***]

12/31/2021

[***]

[***]

[***]

1/31/2022

[***]

[***]

[***]

2/28/2022

[***]

[***]

[***]

3/31/2022

[***]

[***]

[***]

4/30/2022

[***]

[***]

[***]

[***] Certain information in this document has been omitted and filed separately
with the Securities and Exchange Commission.  Confidential treatment has been
requested with respect to the omitted portions.

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

 

Other Matters

1)

Have there been any changes in Key Persons since the last Compliance
Certificate?

Yes

No

2)

Have there been any transfers/sales/disposals/retirement of Collateral or IP
prohibited by the Loan Agreement?

Yes

No

3)

Have there been any new or pending claims or causes of action against Borrower
or any of its Subsidiaries that involve more than Two Hundred Fifty Thousand
Dollars ($250,000.00)?

Yes

No

4)

Have there been any amendments of or other changes to the capitalization table
of Borrower and to the Operating Documents of Borrower or any of its
Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.

Yes

No

5)

Has Borrower or any Subsidiary entered into any Material Agreement, amended any
Material Agreement, or modified any other license, agreement or other
contractual arrangement such that it would become a Material Agreement? If yes,
please explain and provide a copy of the Material Agreement(s) and/or
amendment(s).

Yes

No

6)

Has Borrower provided the Collateral Agent with all notices required to be
delivered under Sections 6.2(a) and 6.2(b) of the Loan Agreement?

Yes

No

 

 

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

 

Exceptions

Please explain any exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions.” Attach separate sheet if additional
space needed.)

 

Restoration Robotics, Inc.

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 

Date:

 

 

COLLATERAL AGENT USE ONLY

 

 

 

 

 

 

 

Received by:

 

 

 

Date:

 

 

 

 

 

 

 

 

 

Verified by:

 

 

 

Date:

 

 

 

 

 

 

 

 

 

Compliance Status:

 

Yes

 

No