Exhibit 10.1

CONFIDENTIAL TREATMENT REQUESTED

Execution Version                              

THE LOANS ARE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271
ET SEQ. OF THE CODE. THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE
DATE AND YIELD TO MATURITY FOR SUCH LOANS MAY BE OBTAINED BY SUBMITTING A
WRITTEN REQUEST FOR SUCH INFORMATION TO BORROWER AT THE ADDRESS SET FORTH IN
SCHEDULE 10.2 TO THIS AGREEMENT.

 

CREDIT AGREEMENT

dated as of August 8, 2017

by and between

NATERA, INC.,

as the Borrower,

and

ORBIMED ROYALTY OPPORTUNITIES II, LP

as the Lender

 

 

 

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TABLE OF CONTENTS

 

 

 

 

 

Page

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

1

SECTION 1.1

Defined Terms.

1

SECTION 1.2

Use of Defined Terms

20

SECTION 1.3

Cross-References

20

SECTION 1.4

Accounting and Financial Determinations

20

SECTION 1.5

Business Days; Payment

20

 

 

 

ARTICLE II

COMMITMENT AND BORROWING PROCEDURES

21

SECTION 2.1

Commitment

21

SECTION 2.2

Borrowing Procedure

21

SECTION 2.3

Funding

21

SECTION 2.4

Reduction of the Commitment Amounts

21

 

 

 

ARTICLE III

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

21

SECTION 3.1

Repayments and Prepayments; Application

21

SECTION 3.2

Repayments and Prepayments

21

SECTION 3.3

Application

22

SECTION 3.4

Interest Rate

22

SECTION 3.5

Default Rate

22

SECTION 3.6

Payment Dates

22

SECTION 3.7

Repayment Premium

23

SECTION 3.8

Undrawn Fee

23

SECTION 3.9

Issuance of Shares of Common Stock

23

 

 

 

ARTICLE IV

LIBO RATE AND OTHER PROVISIONS

24

SECTION 4.1

Increased Costs, Etc

24

SECTION 4.2

Increased Capital Costs

24

SECTION 4.3

Taxes

24

SECTION 4.4

Payments, Computations; Proceeds of Collateral, Etc

27

SECTION 4.5

Setoff

28

SECTION 4.6

LIBO Rate Not Determinable

28

 

 

 

ARTICLE V

CONDITIONS TO MAKING THE LOANS

28

SECTION 5.1

Credit Extensions

28

SECTION 5.2

Secretary’s Certificate, Etc

28

SECTION 5.3

Closing Date Certificate

29

SECTION 5.4

Payment of Outstanding Indebtedness, Etc

29

SECTION 5.5

Delivery of Note

29

SECTION 5.6

Financial Information, Etc

29

SECTION 5.8

Solvency, Etc

30

 

-  i  -

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SECTION 5.9

Guarantee

30

SECTION 5.10

Security Agreements

30

SECTION 5.11

Intellectual Property Security Agreements

30

SECTION 5.14

Opinion of Counsel

30

SECTION 5.15

Insurance

31

SECTION 5.17

Anti-Terrorism Laws

31

SECTION 5.18

Satisfactory Legal Form

31

SECTION 5.19

Net Revenues

31

SECTION 5.20

Disclosure Schedules

31

 

 

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

31

SECTION 6.1

Organization, Etc.

31

SECTION 6.2

Due Authorization, Non-Contravention, Etc

32

SECTION 6.3

Government Approval, Regulation, Etc

32

SECTION 6.4

Validity, Etc

32

SECTION 6.5

Financial Information

32

SECTION 6.6

No Material Adverse Change

33

SECTION 6.7

Litigation, Labor Matters and Environmental Matters

33

SECTION 6.8

Subsidiaries

33

SECTION 6.9

Ownership of Properties

33

SECTION 6.10

Taxes

34

SECTION 6.11

Benefit Plans, Etc

34

SECTION 6.12

Accuracy of Information

34

SECTION 6.13

Regulations U and X

34

SECTION 6.14

Solvency

35

SECTION 6.15

Intellectual Property

35

SECTION 6.17

Permits

37

SECTION 6.18

Regulatory Matters

37

SECTION 6.19

Transactions with Affiliates

39

SECTION 6.20

Investment Company Act

40

SECTION 6.21

OFAC

40

SECTION 6.22

Deposit and Disbursement Accounts

40

SECTION 6.23

The Shares

40

 

 

 

ARTICLE VII

AFFIRMATIVE COVENANTS

40

SECTION 7.1

Financial Information, Reports, Notices, Etc

40

SECTION 7.2

Maintenance of Existence; Compliance with Contracts, Laws, Etc

43

SECTION 7.3

Maintenance of Properties

43

SECTION 7.4

Insurance

43

SECTION 7.5

Books and Records

44

SECTION 7.6

Environmental Law Covenant

44

SECTION 7.7

Use of Proceeds

44

SECTION 7.8

Future Guarantors, Security, Etc

44

SECTION 7.9

Obtaining of Permits, Etc

45

SECTION 7.10

Product Licenses

45

 

-  ii  -

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SECTION 7.11

Maintenance of Regulatory Authorizations, Contracts, Intellectual Property, Etc

46

SECTION 7.12

Inbound Licenses; Product Agreements

46

SECTION 7.13

Cash Management

46

SECTION 7.15

Product Agreements

47

SECTION 7.16

Post-Closing Covenant

47

 

 

 

ARTICLE VIII

NEGATIVE COVENANTS

48

SECTION 8.1

Business Activities

48

SECTION 8.2

Indebtedness

48

SECTION 8.3

Liens

50

SECTION 8.4

Minimum Net Revenues

51

SECTION 8.5

Investments

52

SECTION 8.6

Restricted Payments, Etc

53

SECTION 8.7

Consolidation, Merger; Permitted Acquisitions, Etc

54

SECTION 8.8

Permitted Dispositions

54

SECTION 8.9

Modification of Certain Agreements

55

SECTION 8.10

Transactions with Affiliates

56

SECTION 8.11

Restrictive Agreements, Etc

56

SECTION 8.12

Sale and Leaseback

57

SECTION 8.13

Change in Name, Location or Executive Office or Executive Management; Change in
Fiscal Year

57

SECTION 8.14

Benefit Plans and Agreements

57

 

 

 

ARTICLE IX

EVENTS OF DEFAULT

58

SECTION 9.1

Listing of Events of Default

58

SECTION 9.2

Action if Bankruptcy

60

SECTION 9.3

Action if Other Event of Default

60

 

 

 

ARTICLE X

MISCELLANEOUS PROVISIONS

61

SECTION 10.1

Waivers, Amendments, Etc

61

SECTION 10.2

Notices; Time

61

SECTION 10.3

Payment of Costs and Expenses

61

SECTION 10.4

Indemnification

62

SECTION 10.5

Survival

62

SECTION 10.6

Severability

62

SECTION 10.7

Headings

63

SECTION 10.8

Execution in Counterparts, Effectiveness, Etc.

63

SECTION 10.9

Governing Law; Entire Agreement

63

SECTION 10.10

Successors and Assigns

63

SECTION 10.11

Other Transactions

63

SECTION 10.12

Forum Selection and Consent to Jurisdiction

64

SECTION 10.13

Waiver of Jury Trial

64

SECTION 10.14

Confidential Information

65

SECTION 10.15

Exceptions to Confidentiality

65

SECTION 10.16

Register

66

 

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SCHEDULES:

Schedule 1.1

Competitors

Schedule 1.2

Tangible Fixed Assets

Schedule 6.7(a)

Litigation

Schedule 6.8

Existing Subsidiaries

Schedule 6.10

Taxes

Schedule 6.15(a)

Intellectual Property

Schedule 6.15(b)

Intellectual Property Exceptions

Schedule 6.15(b)(v)

Intellectual Property Sole Ownership Exceptions

Schedule 6.15(c)

Intellectual Property Infringement

Schedule 6.15(d)

Significant License Agreements

Schedule 6.15(e)

Infringement Notices

Schedule 6.17

Permits

Schedule 6.18(b)

Regulatory Actions

Schedule 6.18(d)

Key Permit Matters

Schedule 6.18(e)

Certain Regulatory Enforcement Matters

Schedule 6.18(g)

Debarment and Similar Matters

Schedule 6.18(h)

Studies, Tests and Clinical and Preclinical Trials

Schedule 6.19

Transactions with Affiliates

Schedule 6.22

Deposit and Disbursement Accounts

Schedule 8.2(c)

Existing Indebtedness

Schedule 8.3(c)

Existing Liens

Schedule 8.5(a)

Investments

Schedule 10.2

Notice Information

-  iv  -

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EXHIBITS:

Exhibit A      -      Form of Promissory Note

Exhibit B      -      Form of Loan Request

Exhibit C      -      Form of Compliance Certificate

Exhibit D      -      Form of Guarantee

Exhibit E      -      Form of Security Agreement

 

 

-  v  -

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CREDIT AGREEMENT

THIS CREDIT AGREEMENT dated as of August 8, 2017 (as amended, supplemented or
otherwise modified from time to time, this “Agreement”), is by and between
NATERA, INC., a Delaware corporation (the “Borrower”) and ORBIMED ROYALTY
OPPORTUNITIES II, LP (together with its Affiliates, successors, transferees and
assignees, the “Lender”). The Borrower and the Lender are sometimes referred to
herein individually as a “Party” and collectively as the “Parties”.

W I T N E S S E T H:

WHEREAS, the Borrower has requested that the Lender provide a senior term loan
facility to the Borrower in an aggregate principal amount of $100,000,000 (with
$75,000,000 available on the Closing Date and $25,000,000, at the Borrower’s
request, available on or prior to December 31, 2018, subject to the terms and
conditions set forth herein); and

WHEREAS, the Lender is willing, on the terms and subject to the conditions
hereinafter set forth, to extend the Commitment and make the Loans to the
Borrower;

NOW, THEREFORE, the parties hereto agree as follows.

ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS

SECTION 1.1 Defined Terms. The following terms (whether or not underscored) when
used in this Agreement, including its preamble and recitals, shall, except where
the context otherwise requires, have the following meanings (such meanings to be
equally applicable to the singular and plural forms thereof):

“Affiliate” of any Person means any other Person which, directly or indirectly,
Controls, is Controlled by or is under common Control with such Person.
“Control” (and its correlatives) by any Person means the power of such Person,
directly or indirectly, (i) to vote 10% or more of the Voting Securities
(determined on a fully diluted basis) of another Person, or (ii) to direct or
cause the direction of the management and policies of such other Person (whether
by contract or otherwise).

“Agreement” is defined in the preamble.

“Applicable Margin” means 8.75%.

“Authorized Officer” means, relative to the Borrower or any of the Subsidiaries,
those of its officers, general partners or managing members (as applicable)
whose signatures and incumbency shall have been certified to the Lender pursuant
to Section 5.2.

“Benefit Plan” means any “employee benefit plan,” as defined in section 3(3) of
ERISA, that either: (i) is a “multiemployer plan,” as defined in section 3(37)
of ERISA, (ii) is subject to section 412 of the Code, section 302 of ERISA or
Title IV of ERISA, or (iii) provides welfare benefits to any former employees of
the Borrower or any of its Subsidiaries, other than for

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coverage through the end of the calendar month in which a termination of
employment occurs or to the extent required by section 4980B(f) of the Code and
the corresponding provisions of ERISA or similar state law.

“Borrower” is defined in the preamble.

“Borrower LDTs” means the laboratory-developed tests and associated services or
products developed, designed, validated, marketed, and performed by the Borrower
and its Subsidiaries, including the Panorama, Spectrum and Anora tests.

“Borrower Medical Devices” means any products researched, developed, marketed,
manufactured, stored, or distributed by or for the Borrower and its
Subsidiaries, including in vitro diagnostic medical devices, reagents, software,
sample collection kits, cord blood collection devices, cord blood processing
systems and storage devices, and any other Device.

“Business Day” means any day which is neither a Saturday or Sunday nor a legal
holiday on which banks are authorized or required to be closed in New York, New
York.

“Capital Securities” means, with respect to any Person, all shares of, interests
or participations in, or other equivalents in respect of (in each case however
designated, whether voting or non-voting), of such Person’s capital stock, and
any warrants, options or other rights entitling the holder thereof to purchase
or acquire any such capital stock, in each case whether now outstanding or
issued after the Closing Date.

“Capitalized Lease Liabilities” means, with respect to any Person, all monetary
obligations of such Person and its Subsidiaries under any leasing or similar
arrangement which have been (or, in accordance with GAAP, should be) classified
as capitalized leases, and for purposes of each Loan Document the amount of such
obligations shall be the capitalized amount thereof, determined in accordance
with GAAP, and the stated maturity thereof shall be the date of the last payment
of rent or any other amount due under such lease prior to the first date upon
which such lease may be terminated by the lessee without payment of a premium or
a penalty; provided, however, that all obligations of any Person that are or
would have been treated as operating leases (including for avoidance of doubt,
any network lease or any operating indefeasible right of use) for purposes of
GAAP prior to the issuance by the Financial Accounting Standards Board on
February 25, 2016 of an Accounting Standards Update (the “ASU”) shall continue
to be accounted for as operating leases for purposes of all financial
definitions and calculations under this Agreement (whether or not such operating
lease obligations were in effect on such date) notwithstanding the fact that
such obligations are required in accordance with the ASU (on a prospective or
retroactive basis or otherwise) to be treated as Capitalized Lease Liabilities
in the financial statements to be delivered pursuant to Section 7.01.

“Cash Equivalent Investment” means, at any time:

(a)      any direct obligation of (or unconditionally guaranteed by) the United
States (or any agency or political subdivision thereof, to the extent such
obligations are supported by the full faith and credit of the United States)
maturing not more than one year after such time;

-  2  -

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(b)      commercial paper maturing not more than one year from the date of
issue, which is issued by a corporation (other than an Affiliate of the Borrower
or any of its Subsidiaries) organized under the laws of any state of the United
States or of the District of Columbia and rated A-1 or higher by S&P or P-1 or
higher by Moody’s;

(c)      any certificate of deposit, demand or time deposit or bankers
acceptance, maturing not more than 180 days after its date of issuance, which is
issued by or placed with any bank or trust company organized under the laws of
the United States (or any state thereof) and which has (or is a subsidiary of a
bank holding company which has) (x) a credit rating of A2 or higher from Moody’s
or A or higher from S&P and (y) a combined capital and surplus greater than
$500,000,000; or

(d)      investments in money market mutual funds at least 95% of the assets of
which are comprised of securities of the types described in clauses (a) through
(c) of this definition.

“Casualty Event” means the material damage to, or destruction or condemnation
of, as the case may be, property of Borrower or any of its Subsidiaries.

“Change in Control” means and shall be deemed to have occurred if (except if
occurring in connection with an issuance by the Borrower of Capital Securities
or other equity interests in connection with a public equity offering or a
private equity offering primarily to venture investors for capital raising
purposes) (i) any “person” or “group” (within the meaning of Rule 13d-5 of the
Securities Exchange Act of 1934 as in effect on the date hereof) shall own,
directly or indirectly, beneficially or of record, determined on a fully diluted
basis, more than 40% of the Voting Securities of the Borrower or (ii) a majority
of the seats (other than vacant seats) on the board of directors (or equivalent)
of the Borrower shall at any time be occupied by persons who were neither (x)
nominated by the board of directors of the Borrower nor (y) appointed by
directors so nominated.

“Change in Law” means the occurrence, after the date of this Agreement, of any
of the following: (i) the adoption or taking effect of any law, rule, regulation
or treaty, (ii) any change in any law, rule, regulation or treaty or in the
administration, interpretation, implementation or application thereof by any
Governmental Authority or (iii) the making or issuance of any request, rule,
guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided that, notwithstanding anything herein to the
contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and
all requests, rules, guidelines or directives thereunder or issued in connection
therewith and (y) all requests, rules, guidelines or directives promulgated by
the Bank for International Settlements, the Basel Committee on Banking
Supervision (or any successor or similar authority) or the United States or
foreign regulatory authorities, in each case pursuant to Basel III, shall in
each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted or issued; and provided further that the implementation of, and
compliance with, FATCA including any intergovernmental agreements established
pursuant to FATCA shall not be deemed to be a “Change in Law”.

-  3  -

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“CLIA” means the Clinical Laboratory Improvement Amendments of 1988, as amended
together with any rule, regulation, interpretation, guidance document, policy,
judgment lawfully issued or promulgated thereunder by CMS (or any predecessor
entity).

“CLIA Accreditation” means a certificate of compliance or certificate of
accreditation from an accreditation program approved by CMS permitting a
clinical laboratory to perform tests of high complexity.

“Closing Date” means the date of the making of the Initial Loan hereunder, which
in no event shall be later than August 8, 2017.

“Closing Date Certificate” means a closing date certificate executed and
delivered by an Authorized Officer of the Borrower containing the items
described in Section 5.3.

“CMS” means the U.S. Center for Medicare and Medicaid Services.

“Code” means the Internal Revenue Code of 1986, and the regulations thereunder,
in each case as amended from time to time.

“Commitment” means the Lender’s obligation (if any) to make Loans hereunder.

“Commitment Amount” means the Initial Commitment Amount plus the Delayed Draw
Commitment Amount.

“Competitor” means any Person who competes with the Borrower in the general
fields of genetic testing for reproductive indications, cord blood and cord
tissue banking, and plasma-based oncology diagnostics, including those Persons
identified on Schedule 1.1 (which the Borrower may update from time to time with
the consent of the Lender (such consent not to be unreasonably withheld or
delayed)) and Affiliates of Competitors.

“Compliance Certificate” means a certificate duly completed and executed by an
Authorized Officer of the Borrower, substantially in the form of Exhibit C
hereto.

“Confidential Information” means any and all information or material (whether
written or oral, or in electronic or other form) that, at any time before, on or
after the Closing Date, has been or is provided or communicated to the Receiving
Party by or on behalf of the Disclosing Party pursuant to this Agreement or in
connection with the transactions contemplated hereby, and shall include the
existence and terms of this Agreement, and shall include all information
received from the Disclosing Party or any of its Affiliates relating to the
Disclosing Party or its Affiliates, to their respective businesses, or to any
Product, other than any such information that is available to the Receiving
Party on a non-confidential basis prior to disclosure by the Disclosing Party.

“Contingent Liability” means any agreement, undertaking or arrangement by which
any Person guarantees, endorses or otherwise becomes or is contingently liable
upon (by direct or indirect agreement, contingent or otherwise, to provide funds
for payment, to supply funds to, or otherwise to invest in, a debtor, or
otherwise to assure a creditor against loss) the Indebtedness of any other
Person (other than by endorsements of instruments in the course of collection),
or

-  4  -

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guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person. The amount of any Person’s obligation under any
Contingent Liability shall (subject to any limitation set forth therein) be
deemed to be the stated or determined amount of the outstanding debt, obligation
or other liability guaranteed thereby, or if not stated or determinable, the
maximum reasonably anticipated amount of such debt, obligation or other
liability as determined by such Person in good faith; provided, however, that
such amount shall not in any event exceed the maximum amount for which such
Person may be liable under the applicable agreement, undertaking or arrangement.

“Control” is defined within the definition of “Affiliate”.

“Controlled Account” is defined in Section 7.13.

“Copyright Security Agreement” means any Copyright Security Agreement executed
and delivered by the Borrower or any of the Subsidiaries in substantially the
form of Exhibit C to the Security Agreement, as amended, supplemented, amended
and restated or otherwise modified from time to time.

“Copyrights” means all copyrights, whether statutory or common law, and all
exclusive licenses from third parties or rights to use copyrights owned by such
third parties, along with any and all (i) renewals, revisions, extensions,
derivative works, enhancements, modifications, updates and new releases thereof,
(ii) income, royalties, damages, claims and payments now and hereafter due
and/or payable with respect thereto, including, without limitation, damages and
payments for past, present or future infringements thereof, (iii) rights to sue
for past, present and future infringements thereof, and (iv) foreign copyrights
and any other rights corresponding thereto throughout the world.

“Default” means any Event of Default or any condition, occurrence or event
which, after notice or lapse of time or both, would constitute an Event of
Default.

“Delayed Draw Closing Date” means the date of the making of the Delayed Draw
Loan hereunder, which in no event shall be later than December 31, 2018.

“Delayed Draw Commitment Amount” means $25,000,000.

“Delayed Draw Commitment Termination Date” means the earliest to occur of (i)
the Delayed Draw Closing Date (immediately after the making of the Delayed Draw
Loan on such date), (ii) December 31, 2018, if the Delayed Draw Loan shall not
have been made hereunder on or prior to such date and (iii) the Initial
Commitment Termination Date, if the Initial Loan shall not have been made
hereunder prior to or on such date.

“Delayed Draw Loan” is defined in Section 2.1.

“Designated Jurisdiction” means any country or territory to the extent that such
country or territory is the subject of a comprehensive Sanction by OFAC,
including (as of the Closing Date) the Crimea Region of Ukraine, Cuba, Iran,
North Korea, Sudan and Syria.

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“Device” means any instrument, apparatus, implement, machine, contrivance,
implant, in vitro reagent, or other similar or related article, including any
component, part, or accessory, which is (a) recognized in the official National
Formulary, or the United States Pharmacopeia, or any supplement to them, (b)
intended for use in the diagnosis of disease or other conditions, or in the
cure, mitigation, treatment, or prevention of disease, in man or other animals,
or (c) intended to affect the structure or any function of the body of man or
other animals; and which does not achieve its primary intended purposes through
chemical action within or on the body of man or other animals and which is not
dependent upon being metabolized for the achievement of its primary intended
purposes.

“Device Approval Application” means a premarket approval application (PMA)
submitted under Section 515 of the FD&C Act (21 U.S.C. § 360e), a de novo
request submitted under Section 513(f) of the FD&C Act (21 U.S.C. § 360c(f)), or
premarket notification submitted under Section 510(k) of the FD&C Act (21 U.S.C.
§ 360(k)) (“510(k)”), as defined in the FD&C Act, or any corresponding foreign
application, including, with respect to the European Union, a submission to a
Notified Body for a Certificate of Conformity with an applicable Council
Directive.

“Disclosing Party” means the Party disclosing Confidential Information.

“Disposition” (or similar words such as “Dispose”) means any sale, transfer,
lease, license, contribution or other conveyance (including by way of merger)
of, or the granting of options, warrants or other rights to, any of the
Borrower’s or its Subsidiaries’ assets (including accounts receivable and
Capital Securities of Subsidiaries but excluding Capital Securities of the
Borrower) to any other Person (other than to the Borrower or any of its
Subsidiaries) in a single transaction or series of transactions.

“Disqualified Capital Securities” shall mean any Capital Securities that, by
their terms (or by the terms of any security or other Capital Securities into
which they are convertible or for which they are exchangeable) or upon the
happening of any event or condition, (a) mature or are mandatorily redeemable
(other than solely for Qualified Capital Securities), pursuant to a sinking fund
obligation or otherwise (except as a result of a Change in Control or asset sale
so long as any rights of the holders thereof upon the occurrence of a Change in
Control or asset sale event shall be subject to the prior repayment in full of
the Loans and all other Obligations that are accrued and payable and the
termination of the Commitment), (b) are redeemable at the option of the holder
thereof (other than solely for Qualified Capital Securities) (except as a result
of a Change in Control or asset sale so long as any rights of the holders
thereof upon the occurrence of a Change in Control or asset sale event shall be
subject to the prior repayment in full of the Loans and all other Obligations
that are accrued and payable and the termination of the Commitment), in whole or
in part, (c) provide for the scheduled payment of dividends in cash or (d) are
or become convertible into or exchangeable for Indebtedness or any other Capital
Securities that would constitute Disqualified Capital Securities, in each case,
prior to the date that is one hundred and eighty-one (181) days after the
Maturity Date; provided that if such Capital Securities are issued pursuant to a
plan for the benefit of employees of the Borrower or any of its Subsidiaries, or
by any such plan to such employees, such Capital Securities shall not constitute
Disqualified Capital Securities solely because they may be required to be
repurchased

-  6  -

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by the Borrower or its Subsidiaries in order to satisfy applicable statutory or
regulatory obligations.

“EMA” means the European Medicines Agency or any successor entity.

“Environmental Laws” means all federal, state, local or international laws,
statutes, rules, regulations, codes, directives, treaties, requirements,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, natural resources, Hazardous Material or
health and safety matters.

“Environmental Liability” means any liability, loss, claim, suit, action,
investigation, proceeding, damage, commitment or obligation, contingent or
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of or affecting the Borrower or
any Subsidiary directly or indirectly arising from, in connection with or based
upon (i) any Environmental Law or Environmental Permit, (ii) the generation,
use, handling, transportation, storage, treatment, recycling, presence,
disposal, Release or threatened Release of, or exposure to, any Hazardous
Materials, or (iii) any contract, agreement, penalty, order, decree, settlement,
injunction or other arrangement (including operation of law) pursuant to which
liability is assumed, entered into, inherited or imposed with respect to any of
the foregoing.

“Environmental Permit” is defined in Section 6.7.

“ERISA” means the Employee Retirement Income Security Act of 1974, and the
regulations thereunder, in each case as amended from time to time.

“ERISA Affiliate” means, as applied to any Person, (i) any corporation that is a
member of a controlled group of corporations within the meaning of section
414(b) of the Code of which that Person is a member, (ii) any trade or business
(whether or not incorporated) that is a member of a group of trades or
businesses under common control within the meaning of section 414(c) of the Code
of which that Person is a member, or (iii) any member of an affiliated service
group within the meaning of section 414(m) or 414(o) of the Code of which that
Person, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member.

“Event of Default” is defined in Section 9.1.

“Excluded Account” is defined in Section 7.13.

“FATCA” means (a) Sections 1471 through 1474 of the Code, as of the Closing Date
(or any amended or successor version that is substantively comparable and not
materially more onerous to comply with), including any current or future
regulations or official interpretations thereof, (b) any treaty, law, regulation
or other official guidance enacted in any other jurisdiction, or relating to an
intergovernmental agreement between the United States and any other jurisdiction
with the purpose (in either case) of facilitating the implementation of (a)
above, or (c) any agreement pursuant to the implementation of paragraphs (a) or
(b) above with the United

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States Internal Revenue Service, the United States government or any
governmental or taxation authority in the United States.

“FD&C Act” means the U.S. Food, Drug and Cosmetic Act (or any successor
thereto), as amended from time to time, and the rules, regulations, guidelines,
guidance documents and compliance policy guides issued or promulgated
thereunder.

“FDA” means the U.S. Food and Drug Administration and any successor entity.

“Fiscal Month” means a calendar month ending on the last Business Day of that
calendar month.

“Fiscal Quarter” means a quarter ending on the last day of March, June,
September or December.

“Fiscal Year” means any period of twelve consecutive calendar months ending on
December 31; references to a Fiscal Year with a number corresponding to any
calendar year (e.g., the “2016 Fiscal Year”) refer to the Fiscal Year ending on
December 31 of such calendar year.

“Foreign Lender” means a Lender that is organized under the laws of a
jurisdiction outside of the United States.

“F.R.S. Board” means the Board of Governors of the Federal Reserve System or any
successor thereto.

“FTC Act” means the Federal Trade Commission Act.

“GAAP” means generally accepted accounting principles in the United States.

“Governmental Authority” means any national, supranational, federal, state,
county, provincial, local, municipal or other government or political
subdivision thereof (including any Regulatory Agency), whether domestic or
foreign, and any agency, authority, commission, ministry, instrumentality,
regulatory body, court, tribunal, arbitrator, central bank or other Person
exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to any such government.

“Guarantee” means the guarantee executed and delivered by each Guarantor,
substantially in the form of Exhibit D hereto, as amended, supplemented, amended
and restated or otherwise modified from time to time.

“Guarantors” means, collectively, the Subsidiaries existing on the Closing Date
and each future Subsidiary required to execute a Guarantee pursuant to Section
7.8.

“Hazardous Material” means any material, substance, chemical, mixture or waste
which is capable of damaging or causing harm to any living organism, the
environment or natural resources, including all explosive, special, hazardous,
polluting, toxic, industrial, dangerous, biohazardous, medical, infectious or
radioactive substances, materials or wastes, noise, odor,

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electricity or heat, and including petroleum or petroleum products, byproducts
or distillates, asbestos or asbestos-containing materials, urea formaldehyde,
polychlorinated biphenyls, radon gas, ozone-depleting substances, greenhouse
gases, and all other substances or wastes of any nature regulated pursuant to
any Environmental Law or as to which any Governmental Authority requires
investigation, reporting or remedial action.

“Hedging Obligations” means, with respect to any Person, all liabilities of such
Person under currency exchange agreements, interest rate swap agreements,
interest rate cap agreements and interest rate collar agreements, and all other
agreements or arrangements designed to protect such Person against fluctuations
in interest rates or currency exchange rates.

“herein”, “hereof”, “hereto”, “hereunder” and similar terms contained in any
Loan Document refer to such Loan Document as a whole and not to any particular
Section, paragraph or provision of such Loan Document.

“IDE” means an application, including an application filed with a Regulatory
Agency, for authorization to commence human clinical studies, including (a) an
Investigational Device Exemption as defined in the FD&C Act or any successor
application or procedure filed with the FDA, (b) an abbreviated IDE as specified
in FDA regulations in 21 C.F.R. § 812.2(b), (c) any equivalent of a United
States IDE in other countries or regulatory jurisdictions, (d) all amendments,
variations, extensions and renewals thereof that may be filed with respect to
the foregoing and (e) all related documents and correspondence thereto,
including documents and correspondence with Institutional Review Boards (IRBs).

“Impermissible Qualification” means any qualification or exception to the
opinion or certification of any independent public accountant as to any
financial statement of the Borrower (i) which is of a “going concern” or similar
nature other than any such qualification in any opinion given in the Fiscal Year
of the Maturity Date that is based solely on a determination that the Borrower
may not have sufficient cash or other available resources to run the business
for the Fiscal Year of the Maturity Date as a result of the Loans maturing
during such Fiscal Year or (ii) which relates to the limited scope of
examination of matters relevant to such financial statement.

“including” and “include” means including without limiting the generality of any
description preceding such term, and, for purposes of each Loan Document, the
parties hereto agree that the rule of ejusdem generis shall not be applicable to
limit a general statement, which is followed by or referable to an enumeration
of specific matters, to matters similar to the matters specifically mentioned.

“Indebtedness” of any Person means:

(a)      all obligations of such Person for borrowed money or advances and all
obligations of such Person evidenced by bonds, debentures, notes or similar
instruments;

(b)      all obligations, contingent or otherwise, relative to the face amount
of all letters of credit, whether or not drawn, and banker’s acceptances issued
for the account of such Person;

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(c)      all Capitalized Lease Liabilities of such Person and all obligations of
such Person arising under Synthetic Leases;

(d)      net Hedging Obligations of such Person;

(e)      all obligations of such Person in respect of Disqualified Capital
Securities;

(f)      whether or not so included as liabilities in accordance with GAAP, all
obligations of such Person to pay the deferred purchase price of property or
services (excluding trade accounts payable in the ordinary course of business
which are not overdue for a period of more than 90 days or, if overdue for more
than 90 days, as to which a dispute exists and adequate reserves in conformity
with GAAP have been established on the books of such Person), and indebtedness
secured by (or for which the holder of such indebtedness has an existing right,
contingent or otherwise, to be secured by) a Lien on property owned or being
acquired by such Person (including indebtedness arising under conditional sales
or other title retention agreements), whether or not such indebtedness shall
have been assumed by such Person or is limited in recourse; and

(g)      all Contingent Liabilities of such Person in respect of any of the
foregoing.

The Indebtedness of any Person shall include the Indebtedness of any other
Person (including any partnership in which such Person is a general partner) to
the extent such Person is liable therefor as a result of such Person’s ownership
interest in or other relationship with such Person, except to the extent the
terms of such Indebtedness provide that such Person is not liable therefor.

“Indemnified Liabilities” is defined in Section 10.4.

“Indemnified Parties” is defined in Section 10.4.

“Infringement” and “Infringes” mean the misappropriation or other violation of
know-how, trade secrets, confidential information, and/or other Intellectual
Property.

“Initial Commitment Amount” means $75,000,000.

“Initial Commitment Termination Date” means the earliest to occur of (i) the
Closing Date (immediately after the making of the Initial Loan on such date),
and (ii) August 8, 2017, if the Initial Loan shall not have been made hereunder
on or prior to such date.

“Initial Loan” is defined in Section 2.1.

“Intellectual Property” means all (i) Patents and all patent applications of any
type, registrations and renewals, reissues, reexaminations and patent rights in
any lawful form thereof; (ii) Trademarks and all applications, registrations and
renewals thereof; (iii) Copyrights and other works of authorship (registered or
unregistered), and all applications, registrations and renewals therefor; (iv)
computer software, databases, data and documentation; (v) trade secrets and
confidential business information, whether patentable or unpatentable and
whether or not reduced to practice, know-how, inventions, manufacturing
processes and techniques, research

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and development information, data and other information included in or
supporting Regulatory Authorizations, including financial, marketing and
business data, pricing and cost information, business, finance and marketing
plans, customer and prospective customer lists and information, and supplier and
prospective supplier lists and information; (vi) other intellectual property or
similar proprietary rights; and (vii) any and all improvements to any of the
foregoing.

“Interest Period” means, (a) initially, the period beginning on (and including)
the date on which the Initial Loan is made hereunder pursuant to Section 2.3 and
ending on (and including) the last day of the Fiscal Quarter in which the Loan
was made, and (b) thereafter, the period beginning on (and including) the first
day of each succeeding Fiscal Quarter and ending on the earlier of (and
including) (x) the last day of such Fiscal Quarter and (y) the Maturity Date.

“Investment” means, relative to any Person, (i) any loan, advance or extension
of credit made by such Person to any other Person, including the purchase by
such Person of any bonds, notes, debentures or other debt securities of any
other Person, (ii) Contingent Liabilities in favor of any other Person, and
(iii) any Capital Securities held by such Person in any other Person. The amount
of any Investment shall be the original principal or capital amount thereof less
all returns of principal or equity thereon and shall, if made by the transfer or
exchange of property other than cash, be deemed to have been made in an original
principal or capital amount equal to the fair market value of such property at
the time of such Investment.

“Joint Venture” means a joint venture, partnership or other similar arrangement,
in corporate, partnership or similar legal form.

“Key Permits” means all Permits relating to the Products, including all
Regulatory Authorizations, the loss of which would reasonably be expected to
have a Material Adverse Effect.

“knowledge” of the Borrower means the actual knowledge of any officer of the
Borrower after due inquiry.

“Lender” is defined in the preamble.

“LIBO Rate” means the three-month London Interbank Offered Rate for deposits in
U.S. Dollars at approximately 11:00 a.m. (London, England time), quoted by the
Lender from the appropriate Bloomberg or Telerate page selected by the Lender
(or any successor thereto or similar source determined by the Lender from time
to time), which shall be that three-month London Interbank Offered Rate for
deposits in U.S. Dollars in effect two Business Days prior to the last Business
Day of the relevant Fiscal Quarter, adjusted for any reserve requirement and any
subsequent costs arising from a change in governmental regulation, such rate to
be rounded up to the nearest 1/16 of 1% and such rate to be reset quarterly as
of the first Business Day of each Fiscal Quarter. If the Initial Loan is
advanced other than on the first Business Day of a Fiscal Quarter, the initial
LIBO Rate shall be that three-month London Interbank Offered Rate for deposits
in U.S. Dollars in effect two Business Days prior to the date of the Initial
Loan, which rate shall be in effect until (and including) the last Business Day
of the Fiscal Quarter next ending. The Lender’s internal records of applicable
interest rates shall be determinative in the absence of manifest error.

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“Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), charge against
or interest in property, or other priority or preferential arrangement of any
kind or nature whatsoever, to secure payment of a debt or performance of an
obligation.

“Loan Documents” means, collectively, this Agreement, the Notes, the Security
Agreement, each other agreement pursuant to which the Lender is granted a Lien
to secure the Obligations (including any mortgages entered into pursuant to
Section 7.8), the Guarantee, the Stock Purchase Agreement, and each other
agreement, certificate or instrument delivered in connection with any Loan
Document, whether or not specifically mentioned herein or therein.

“Loan Request” means a Loan request and certificate duly executed by an
Authorized Officer of the Borrower substantially in the form of Exhibit B
hereto.

“Loans” means the Initial Loan and the Delayed Draw Loan.

“Material Adverse Effect” means a material adverse effect on (i) the business,
condition (financial or otherwise), operations, or properties of the Borrower
and its Subsidiaries taken as a whole, (ii) the rights and remedies of the
Lender under any Loan Document or (iii) the ability of the Borrower and its
Subsidiaries taken as a whole, to perform the Obligations under any Loan
Document.

“Maturity Date” means August 8, 2024.

“Moody’s” means Moody’s Investors Service, Inc.

“Net Asset Sales Proceeds” means, with respect to a Disposition (other than
Dispositions permitted by Sections 8.8(a) through (i)) after the Closing Date by
the Borrower or any Subsidiary to any Person of any assets of the Borrower or
its Subsidiaries, the gross cash proceeds in excess of [*] in the aggregate
through the term of the Agreement received by the Borrower or any Subsidiary
from such Disposition over all reasonable and customary costs, fees and
expenses, and including Taxes payable (or estimated in good faith to be payable)
by the recipient of such proceeds, incurred in connection with such Disposition
which have not been paid to Affiliates of the Borrower in connection therewith,
but excluding any proceeds required to be paid to a creditor (other than the
Lender) which holds a first priority Lien permitted by Section 8.3 on the
property which is the subject of such Disposition.

“Net Casualty Proceeds” means, with respect to any Casualty Event, the amount of
any insurance proceeds or condemnation awards received by the Borrower or any of
the Subsidiaries in connection with such Casualty Event, in excess of [*] per
occurrence, or [*] in the aggregate cumulatively through the Termination Date
(in each case net of all reasonable and customary collection expenses thereof),
but excluding any proceeds or awards required to be paid to a creditor (other
than the Lender) which holds a first priority Lien permitted by clause (f) of
Section 8.3 on the property which is the subject of such Casualty Event.

“Net Revenue” means, for any period, the aggregate amount of net sales,
distribution income, service payments, license income, and other forms of
consideration made to the Borrower and its Subsidiaries related to all products
and services (including all Products) and

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* 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 PORTION.

-  12  -

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shall be determined in accordance with GAAP. Net Revenue shall be determined in
a manner consistent with the methodologies, practices and procedures used in
developing the Borrower’s audited financial statements.

“956 Impact” will be deemed to exist to the extent the issuance of a guaranty
by, grant of a Lien by, or direct or indirect pledge of greater than two-thirds
of the voting Capital Securities or similar equity interests of, a Subsidiary
that is a “controlled foreign corporation” within the meaning of Section 957 of
the Code, would result in incremental income tax liability as a result of the
application of Section 956 of the Code, taking into account actual anticipated
repatriation of funds, foreign tax credits and other relevant factors.

“Non-Excluded Taxes” means in respect of the Lender (and its successors and
assigns), any Taxes imposed on or with respect to any payment made by or on
account of any obligation of the Borrower or any Subsidiary under any Loan
Document other than (a) (i) Taxes imposed on or measured by one or more
alternative bases one of which is a Person’s net income, (ii) franchise Taxes,
and (iii) branch profits Taxes, in each case, imposed with respect to such
Person by the United States or any Governmental Authority under the laws of
which such Person is organized or in which it has its principal office or
maintains its applicable lending office, or imposed as a result of a present or
former connection between such Person and the jurisdiction imposing such Tax or
any political subdivision thereof or therein (other than connections arising
solely from such Person having executed, delivered, become a party to, performed
its obligations under, received payments under, received or perfected a security
interest under, engaged in any other transaction pursuant to or enforced any
Loan Document), (b) any U.S. federal withholding Taxes imposed on amounts
payable to or for the account of the Lender with respect to an applicable
interest in any Loan or Commitment pursuant to a law in effect on the date on
which (i) such Lender acquires such interest in the Loan or Commitment or (ii)
such Lender changes its lending office, except in each case to the extent that,
pursuant to Section 4.3, amounts with respect to such Taxes were payable either
to such Lender (or its assignor, if any) immediately before such Person became a
party hereto or to such Person immediately before the time of designation of a
new lending office, (c) Taxes attributable to such Person’s failure to comply
with Section 4.3(e) and (f), and (d) any U.S. federal withholding Taxes or other
amounts imposed or payable under FATCA.

“Note” means a promissory note of the Borrower payable to the Lender, in the
form of Exhibit A hereto (as such promissory note may be amended, endorsed or
otherwise modified from time to time), evidencing the aggregate Indebtedness of
the Borrower to the Lender resulting from the outstanding amount of the Loans,
and also means all other promissory notes accepted from time to time in
substitution therefor or renewal thereof.

“Obligations” means all obligations (monetary or otherwise, whether absolute or
contingent, matured or unmatured) of the Borrower and each Subsidiary arising
under or in connection with a Loan Document and the principal of and premium, if
any, and interest (including interest accruing during the pendency of any
proceeding of the type described in Section 9.1(h), whether or not allowed in
such proceeding) on the Loans.

“OFAC” means the Office of Foreign Assets Control of the United States
Department of the Treasury.

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“Organic Document” means, relative to the Borrower or any Subsidiary, its
certificate of incorporation, by-laws, certificate of partnership, partnership
agreement, certificate of formation, limited liability agreement, operating
agreement and all shareholder agreements, voting trusts and similar arrangements
applicable to the Borrower’s or any Subsidiary’s Capital Securities.

“Other Administrative Proceeding” means any administrative proceeding relating
to a dispute involving a patent office or other relevant intellectual property
registry which relates to validity, opposition, revocation, ownership or
enforceability of the relevant Intellectual Property.

“Other Taxes” means any and all stamp, documentary or similar Taxes, or any
other excise or property Taxes or similar levies that arise on account of any
payment made or required to be made under any Loan Document or from the
execution, delivery, registration, recording or enforcement of any Loan Document
(excluding, for the avoidance of doubt, Taxes described in clauses (a), (b) or
(c) of the definition of Non-Excluded Taxes).

“Party” and “Parties” have the meanings set forth in the preamble hereto.

“Patent” means any patent, any type of patent application or invention
disclosure, including all divisions, continuations, continuations in-part,
provisionals, continued prosecution applications, substitutions, reissues,
reexaminations, renewals, extensions, restorations, supplemental protection
certificates and patent rights in any form and other additions in connection
therewith, whether in or related to the United States or any foreign country or
other jurisdiction.

“Patent Security Agreement” means any Patent Security Agreement executed and
delivered by the Borrower or any of the Subsidiaries in substantially the form
of Exhibit A to the Security Agreement, as amended, supplemented, amended and
restated or otherwise modified from time to time.

“Permits” means all permits, licenses, registrations, certificates, orders,
approvals, authorizations, consents, waivers, franchises, variances and similar
rights issued by or obtained from any Governmental Authority or any other
Person, including, without limitation, those relating to Environmental Laws.

“Permitted Acquisition” means the purchase or other acquisition (through one
transaction or a series of related transactions) of all or substantially all of
the Capital Securities (other than qualifying directors shares) in, or all or
substantially all of the property of, or all or substantially all of any
business or division of, any Person (other than any joint venture owned by
another Person that is purchased or acquired) that, upon the consummation
thereof, will be majority or wholly-owned directly by the Borrower or one or
more of its Wholly-Owned Subsidiaries (including as a result of a merger or
consolidation); provided that, with respect to each Permitted Acquisition:

(a)      any such newly-created or acquired Subsidiary shall comply with the
requirements of Section 7.8 and the Lender shall have received (or shall receive
in connection with the closing of such acquisition) a first priority perfected
security interest, subject only to Liens permitted under Section 8.3, in the
property (including, without limitation, equity interests) acquired with respect
to the entity acquired;

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(b)      the lines of business of the Person to be (or the property of which is
to be) so purchased or otherwise acquired shall be permitted pursuant to Section
8.1;

(c)      in the case of a purchase or other acquisition of the Capital
Securities of another Person, the board of directors (or other comparable
governing body) of such other Person shall have duly approved such purchase or
other acquisition;

(d)      the total cash and noncash consideration (other than common stock of
the Borrower) paid by or on behalf of the Borrower and its Subsidiaries for any
such purchase or other acquisition, when aggregated with the consideration
(other than common stock of the Borrower) paid by or on behalf of the Borrower
and its Subsidiaries for all other Permitted Acquisitions after the Closing Date
shall not exceed an aggregate cumulative amount of $[*];

(e)      immediately before and after giving effect to any such purchase or
other acquisition, no Default or Event of Default, shall exist or result
therefrom; and

(f)      the Borrower shall have delivered to the Lender, at least 10 Business
Days prior to the date on which any such purchase or other acquisition is to be
consummated, a written notice describing such transaction, and thereafter, if
requested by the Lender for any such transaction involving consideration in
excess of $[*], (i) historical financial statements of or related to the Person
or assets to be acquired, (ii) twelve month projections for such Person or
assets to be acquired and for Borrower after giving effect to such transaction,
and (iii) material documentation and other information relating to such
transaction and reasonably requested by the Lender.

“Permitted Joint Venture” means any Investment in Joint Ventures customary in
the Borrower’s industry; provided that, with respect to each Permitted Joint
Venture:

(a)      the lines of business of the Joint Venture shall be permitted pursuant
to Section 8.1;

(b)      other than as expressly permitted under clause (c) below, there shall
be no recourse to the Borrower or any Subsidiary for any Indebtedness or
obligations of the Joint Venture;

(c)      the sum of the aggregate cash amount (including any recourse or assumed
Indebtedness referenced in clause (b)) plus the fair market value of tangible
assets invested in Permitted Joint Ventures, together with all Investments
pursuant to Section 8.5(k), shall not exceed $[*]; provided that such sum shall
not include any loan, advance or extension of credit that has been repaid; and

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* 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 PORTION.

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(d)      there shall be no (i) transfer by the Borrower or any of its
Subsidiaries of

assets to the Joint Venture other than tangible assets and Intellectual Property
for use solely outside of the United States or (ii) license by the Borrower or
any of its

Subsidiaries of Intellectual Property to the Joint Venture other than (A) for
use solely outside of the United States or (B) as otherwise permitted pursuant
to Section 8.8(d).

“Permitted Subordinated Indebtedness” means Indebtedness incurred after the
Closing Date by the Borrower or the Subsidiaries that is (i) subordinated to the
Obligations and all other Indebtedness owing from the Borrower or the
Subsidiaries to the Lender pursuant to a written subordination agreement
satisfactory to the Lender in its sole discretion and (ii) in an amount and on
terms approved by the Lender in its sole discretion.

“Person” means any natural person, corporation, limited liability company,
partnership, joint venture, association, trust or unincorporated organization,
Governmental Authority or any other legal entity, whether acting in an
individual, fiduciary or other capacity.

“Privacy Laws” means all applicable security and privacy standards regarding
protected health information under (i) the Health Insurance Portability and
Accountability Act of 1996, as amended by the Health Information Technology for
Economic and Clinical Health Act of 2009, including the regulations promulgated
thereunder (collectively “HIPAA”) and (ii) any applicable state privacy Laws.

“Product” means any service or product (including software products and
services) designed, developed, manufactured, licensed, marketed, sold,
performed, or otherwise commercialized by the Borrower or any of its
Subsidiaries, including Borrower LDTs and Borrower Medical Devices, all
activities related to the collection and storage of cord blood performed by the
Borrower and its Subsidiaries, and any such product in development.

“Product Agreement” means each agreement, license, document, instrument,
interest (equity or otherwise) or the like under which one or more parties
grants or receives any right, title or interest with respect to any Product
Development and Commercialization Activities in respect of one or more Products
specified therein or to exclude third parties from engaging in, or otherwise
restricting any right, title or interest as to any Product Development and
Commercialization Activities with respect thereto, including each contract or
agreement with suppliers (including human tissue supply agreements),
manufacturers, distributors, clinical research organizations, hospitals, group
purchasing organizations, wholesalers, pharmacies or any other Person related to
any such entity.

“Product Development and Commercialization Activities” means, with respect to
any Product, any combination of research, development, manufacture, import, use,
sale, importation, storage, labeling, marketing, promotion, supply,
distribution, testing, packaging, purchasing or other commercialization
activities, receipt of payment in respect of any of the foregoing, or like
activities the purpose of which is to commercially exploit such Product.

“Purchase Money Indebtedness” means Indebtedness (1) consisting of the deferred
purchase price for equipment incurred in connection with the acquisition of such
equipment, where the amount of such Indebtedness does not exceed the greater of
(a) the cost of the

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equipment being financed and (b) the fair market value of such equipment; and
(2) incurred to finance such acquisition by the Borrower or a Subsidiary of such
equipment.

“Qualified Capital Securities” shall mean any Capital Securities that are not
Disqualified Capital Securities.

“Receiving Party” means the Party receiving Confidential Information.
“Recipient” is defined in Section 10.14.

“Refinance” means, in respect of any Indebtedness, to refinance, extend, renew,
repay, prepay, redeem, defease or retire, or to issue other Indebtedness in
exchange or replacement for, such Indebtedness.

"Register" is defined in Section 10.16.

“Regulatory Agencies” means any Governmental Authority that is concerned with
the use, control, safety, efficacy, reliability, manufacturing, marketing,
distribution, sale or other Product Development and Commercialization Activities
relating to any Product of the Borrower or any of the Subsidiaries, including
CMS, FDA, and all similar agencies in other jurisdictions, and includes Standard
Bodies.

“Regulatory Authorizations” means all approvals, clearances, notifications,
authorizations, orders, exemptions, registrations, certifications, licenses and
permits granted by, submitted to or filed with any Regulatory Agencies necessary
for the manufacture, development, distribution, use, storage, import, export,
transport, promotion, marketing, sale or other commercialization of any Product
in any country or jurisdiction, including any IDE, Device Approval Application
and CLIA Accreditation.

“Related Parties” means the partners, directors, officers, employees, agents,
trustees, administrators, managers, advisors and representatives of the Borrower
and the Subsidiaries.

“Release” means any releasing, disposing, discharging, injecting, spilling,
leaking, leaching, pumping, pouring, dumping, depositing, emitting, escaping,
emptying, seeping, dispersal, migrating or placing, including movement through,
into or upon the environment or any natural or man-made structure.

“Repayment Premium” means

(i)      for any repayment or prepayment made or required to be made on or prior
to the [*] a premium of twelve and a half percent (12.5%) of the principal
amount of such prepayment or repayment;

(ii)      for any repayment or prepayment made or required to be made after [*]
and on or prior to the [*] a premium of ten percent (10.0%) of the principal
amount of such prepayment or repayment;

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* 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 PORTION.

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(iii)      for any repayment or prepayment made or required to be made after [*]
and on or prior to [*] a premium of five percent (5.0%) of the principal amount
of such prepayment or repayment; and

(iv)      for any repayment or prepayment made or required to be made after [*]
a premium of two and a half percent (2.5%) of the principal amount of such
prepayment or repayment.

“Restricted Payment” means (i) the declaration or payment of any dividend on, or
the making of any payment or distribution on account of, or setting apart assets
for a sinking or other analogous fund for the purchase, redemption, defeasance,
retirement or other acquisition of, any class of Capital Securities of the
Borrower or any Subsidiary or any warrants, options or other right or obligation
to purchase or acquire any such Capital Securities, whether now or hereafter
outstanding, or (ii) the making of any other distribution in respect of such
Capital Securities, in each case either directly or indirectly, whether in cash,
property or obligations of the Borrower or any Subsidiary or otherwise.

“S&P” means Standard & Poor’s Rating Services, a division of S&P Global.

“Sanctions” means any international economic sanction administered or enforced
by the United States Government (including, without limitation, OFAC), the
United Nations Security Council, the European Union, Her Majesty’s Treasury or
other relevant sanctions authority.

“SEC” means the Securities and Exchange Commission.

“Security Agreement” means the Pledge and Security Agreement executed and
delivered by each of the parties thereto, substantially in the form of Exhibit E
hereto, as amended, supplemented, amended and restated or otherwise modified
from time to time.

“Shares” has the meaning set forth in Section 3.9.

“Solvent” means, with respect to any Person on a particular date, that on such
date (i) the fair value of the property of such Person is greater than the total
amount of liabilities, including contingent liabilities, of such Person, (ii)
the present fair saleable value of the assets of such Person is not less than
the amount that will be required to pay the probable liability of such Person on
its debts as they become absolute and matured, (iii) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond its
ability to pay as such debts and liabilities mature, (iv) such Person is not
engaged in a business or a transaction, and is not about to engage in a business
or a transaction, for which the property of such Person would constitute an
unreasonably small capital and (v) such Person has not executed this Agreement
or any other Loan Document, or made any transfer or incurred any obligations
hereunder or thereunder, with actual intent to hinder, delay or defraud either
present or future creditors. The amount of Contingent Liabilities at any time
shall be computed as the amount that, in light of all the facts and
circumstances existing at such time, can reasonably be expected to become an
actual or matured liability.

“Standard Bodies” means any of the organizations that create, sponsor or
maintain safety, quality or other standards, including ISO, ANSI, CEN and SCC
and the like.

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* 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 PORTION.

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“Stock Purchase Agreement” has the meaning set forth in Section 3.9.

“Subsidiary” means, with respect to any Person, any other Person of which more
than 50% of the outstanding Voting Securities of such other Person (irrespective
of whether at the time Capital Securities of any other class or classes of such
other Person shall or might have voting power upon the occurrence of any
contingency) is at the time directly or indirectly owned or controlled by such
Person, by such Person and one or more other Subsidiaries of such Person, or by
one or more other Subsidiaries of such Person. Unless the context otherwise
specifically requires, the term “Subsidiary” shall be a reference to a
Subsidiary of Borrower.

“Synthetic Lease” means, as applied to any Person, any lease (including leases
that may be terminated by the lessee at any time) of any property (whether real,
personal or mixed) (i) that is not a capital lease in accordance with GAAP and
(ii) in respect of which the lessee retains or obtains ownership of the property
so leased for federal income tax purposes, other than any such lease under which
that Person is the lessor.

“Tangible Fixed Assets ” means the equipment set forth on Schedule 1.2 hereto
and other tangible fixed assets acquired with the proceeds of Indebtedness
permitted pursuant to Section 8.2(e).

“Taxes” means all income, stamp or other taxes, duties, levies, imposts,
charges, assessments, fees in the nature of a tax, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, and all interest, penalties or similar liabilities with
respect thereto.

“Termination Date” means the date on which all Obligations in respect of the
Loans (other than inchoate indemnity and reimbursement obligations) have been
paid in full in cash and the Commitment shall have terminated.

“Third Party” means any Person other than the Borrower or any of its
Subsidiaries.

“Trademark” means any trademark, service mark, trade name, logo, symbol, trade
dress, domain name, corporate name or other indicator of source or origin, and
all applications and registrations therefor, together with all of the goodwill
associated therewith.

“Trademark Security Agreement” means any Trademark Security Agreement executed
and delivered by the Borrower or any of the Subsidiaries substantially in the
form of Exhibit B to any Security Agreement, as amended, supplemented, amended
and restated or otherwise modified from time to time.

“UCC” means the Uniform Commercial Code as in effect from time to time in the
State of New York; provided that, if, with respect to any financing statement or
by reason of any provisions of law, the perfection or the effect of perfection
or non-perfection of the security interests granted to the Lender pursuant to
the applicable Loan Document is governed by the Uniform Commercial Code as in
effect in a jurisdiction of the United States other than New York, then “UCC”
means the Uniform Commercial Code as in effect from time to time in such other
jurisdiction for purposes of the provisions of each Loan Document and any
financing statement relating to such perfection or effect of perfection or
non-perfection.

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“United States” or “U.S.” means the United States of America, its fifty states
and the District of Columbia.

“Voting Securities” means, with respect to any Person, Capital Securities of any
class or kind ordinarily having the power to vote for the election of directors,
managers or other voting members of the governing body of such Person.

“Wholly-Owned Subsidiary” means any direct or indirect Subsidiaries of Borrower,
all of the outstanding Capital Securities of which (other than any director’s
qualifying shares or investments by foreign nationals mandated by applicable
laws) is owned directly or indirectly by Borrower.

SECTION 1.2 Use of Defined Terms. Unless otherwise defined or the context
otherwise requires, terms for which meanings are provided in this Agreement
shall have such meanings when used in each other Loan Document and the schedules
attached hereto.

SECTION 1.3 Cross-References. Unless otherwise specified, references in a Loan
Document to any Article or Section are references to such Article or Section of
such Loan Document, and references in any Article, Section or definition to any
clause are references to such clause of such Article, Section or definition.

SECTION 1.4 Accounting and Financial Determinations. Unless otherwise specified,
all accounting terms used in each Loan Document shall be interpreted, and all
accounting determinations and computations thereunder (including under Section
8.4 and the definitions used in such calculations) shall be made, in accordance
with GAAP, as in effect from time to time; provided that, if either the Borrower
or the Lender requests an amendment to any provision hereof to eliminate the
effect of any change occurring after the date hereof in GAAP or the application
thereof on the operation of such provision, regardless of whether any such
notice is given before or after such change in GAAP or the application thereof,
then such provision shall be interpreted on the basis of GAAP in effect and
applied immediately before such change shall have become effective until such
request shall have been withdrawn or such provision amended in accordance
herewith. Unless otherwise expressly provided, all financial covenants and
defined financial terms shall be computed on a consolidated basis for the
Borrower and the Subsidiaries, in each case without duplication.

SECTION 1.5 Business Days; Payment. If any payment or performance under any Loan
Document shall be due on a day that is not a Business Day, the date for such
payment or performance shall be extended to the next succeeding Business Day,
and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension.

ARTICLE II
COMMITMENT AND BORROWING PROCEDURES

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SECTION 2.1 Commitment. On the terms and subject to the conditions of this
Agreement, the Lender agrees to make a term loan (the “Initial Loan”) to the
Borrower on the Closing Date in an amount equal to (but not less than) the
Initial Commitment Amount. On the terms and subject to the conditions of this
Agreement, the Lender agrees to make a term loan (the “Delayed Draw Loan”) to
the Borrower on the Delayed Draw Closing Date in an amount equal to (but not
less than) the Delayed Draw Commitment Amount. No amounts paid or prepaid with
respect to the Loans may be reborrowed.

SECTION 2.2 Borrowing Procedure. The Borrower may irrevocably request that the
Initial Loan be made by delivering to the Lender a Loan Request on or before
1:00 p.m. Eastern (New York City) time on a Business Day at least three Business
Days prior to the proposed Closing Date. The Borrower may irrevocably request
that the Delayed Draw Loan be made by delivering to the Lender a Loan Request on
or before 1:00 p.m. Eastern (New York City) time on a Business Day at least
three Business Days prior to the proposed Delayed Draw Closing Date.

SECTION 2.3 Funding. After receipt of the Loan Request for the Initial Loan, the
Lender shall, on the Closing Date and subject to the terms and conditions
hereof, make the requested proceeds of the Initial Loan available to the
Borrower by wire transfer to the account the Borrower shall have specified in
its Loan Request. After receipt of the Loan Request for the Delayed Draw Loan,
the Lender shall, on the Delayed Draw Closing Date and subject to the terms and
conditions hereof, make the requested proceeds of the Delayed Draw Loan
available to the Borrower by wire transfer to the account the Borrower shall
have specified in its Loan Request.

SECTION 2.4 Reduction of the Commitment Amounts. The Initial Commitment Amount
shall automatically and permanently be reduced to zero on the Initial Commitment
Termination Date. The Delayed Draw Commitment Amount shall automatically and
permanently be reduced to zero on the Delayed Draw Commitment Termination Date.

ARTICLE III
REPAYMENTS, PREPAYMENTS, INTEREST AND FEES

SECTION 3.1 Repayments and Prepayments; Application. The Borrower agrees that
the Loans, and any fees or interest accrued or accruing thereon, shall be repaid
and prepaid solely in U.S. dollars pursuant to the terms of this Article III.

SECTION 3.2 Repayments and Prepayments. The Borrower shall repay in full the
unpaid principal amount of the Loans on the Maturity Date. Prior thereto,
payments and prepayments of the Loans shall be made as set forth below.

(a)      The Borrower shall have the right, with at least three Business Days’
notice to the Lender, at any time and from time to time to prepay any unpaid
principal amount of the Loans, in whole or in part.

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(b)      Within three Business Days of receipt by the Borrower or any Subsidiary
of any (i) Net Casualty Proceeds or (ii) Net Asset Sales Proceeds, the Borrower
shall notify the Lender thereof. If requested by the Lender, the Borrower shall
within three Business Days of such request make a mandatory prepayment of the
Loans, in an amount equal to [*] of such proceeds (or such lesser amount as the
Lender may specify on the date of such request), to be applied as set forth in
Section 3.3 and in Section 3.7; provided that if the Borrower shall deliver to
the Lender within the time period required for the notice pursuant to the first
sentence of this paragraph a certificate of an Authorized Officer to the effect
that the Borrower and its Subsidiaries intend to apply the Net Casualty Proceeds
or Net Asset Sale Proceeds, as the case may be, from such event, within [*]
after receipt of such Net Casualty Proceeds or Net Asset Sale Proceeds, to
replace or repair the assets that were subject of the Disposition or Casualty
Event, as the case may be, with substantially similar replacement or repaired
assets, then no prepayment shall be required pursuant to this clause (b) in
respect of such event except to the extent any Net Casualty Proceeds or Net
Asset Sale Proceeds therefrom that have not been so applied within [*] (or in
the case of a binding commitment made in respect of an application within such
[*]) after receipt of such Net Casualty Proceeds or Net Asset Sale Proceeds, at
which time a prepayment shall be required in an amount equal to the amount of
the Net Casualty Proceeds or Net Asset Sale Proceeds that have not been so
applied.

(c)      The Borrower shall repay the Loans in full immediately upon any
acceleration of the Maturity Date thereof pursuant to Section 9.2 or Section
9.3, unless, pursuant to Section 9.3, only a portion of the Loans is so
accelerated (in which case the portion so accelerated shall be so repaid).

SECTION 3.3 Application. Except as provided in Section 4.4(b), amounts repaid or
prepaid in respect of the outstanding principal amount of the Loans pursuant to
clauses (b) or (c) of Section 3.2 shall be applied pro rata to the Initial Loan
and Delayed Draw Loan.

SECTION 3.4 Interest Rate. During any applicable Interest Period, the Loans
shall accrue interest during such Interest Period at a rate per annum equal to
the sum of (i) the Applicable Margin plus (ii) the higher of (x) the LIBO Rate
for such Interest Period and (y) 1.00%. The interest rate shall be recalculated
and, if necessary,

adjusted for each Interest Period, in each case pursuant to the terms hereof.

SECTION 3.5 Default Rate. At all times commencing upon the date any Event of
Default occurs, and continuing until such Event of Default is no longer
continuing, the Applicable Margin shall be increased by 3.00% per annum.

SECTION 3.6 Payment Dates. Interest accrued on the Loans shall be payable in
cash, without duplication:

(a)      on the Maturity Date therefor;

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* 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 PORTION.

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(b)      on the date of any payment or prepayment, in whole or in part, of
principal outstanding on such Loan on the principal amount so paid or prepaid;

(c)      on the last day of each Fiscal Quarter; provided that if such day is
not a Business Day, then such payment shall be made on the next succeeding
Business Day; and

(d)      on that portion of the Loans that is accelerated pursuant to Section
9.2 or Section 9.3, immediately upon such acceleration.

Interest accrued on the Loans or other monetary Obligations after the date such
amount is due and payable (whether on the Maturity Date, upon acceleration or
otherwise) shall be payable upon demand.

SECTION 3.7 Repayment Premium. Any repayment or prepayment of principal, in
whole or in part, pursuant to this Article III (including any repayments of
principal made on the Maturity Date) shall be accompanied by the Repayment
Premium.

SECTION 3.8 Undrawn Fee. The Borrower agrees to pay the Lender, for its own
account, a fee in an annual amount equal to [*] multiplied by the undrawn
Delayed Draw Commitment Amount, payable in equal installments on the last day of
each Fiscal Quarter (provided that if such day is not a Business Day, then such
payment shall be made on the next succeeding Business Day) until the Delayed
Draw Commitment Termination Date (and if the Delayed Draw Commitment Termination
Date occurs on a date that is not the last day of a Fiscal Quarter, the amount
of the fee for the corresponding Fiscal Quarter shall be a prorated amount for
the portion of such Fiscal Quarter ending on the Delayed Draw Commitment
Termination Date and shall be paid on such date). Such fee shall be fully earned
and nonrefundable under any circumstances.

SECTION 3.9 Issuance of Shares of Common Stock. As soon as practicable after the
Closing Date, but in no event later than August 14, 2017, the Borrower shall
issue, or cause to be issued, to the Lender (or any Affiliate of the Lender
designated by the Lender (provided such Affiliate is not a Competitor)), as a
fee in consideration of the Commitments extended and the Loans made hereunder,
300,000 shares of common stock, par value $0.0001 per share, of the Borrower
(the “Shares”), in electronic book entry at the transfer agent of the Borrower,
pursuant to a certain Stock Purchase Agreement, dated as soon as practicable
after the Closing Date but not earlier than the date upon which the Borrower
files its Form 10-Q for the quarter ended June 30, 2017 with the Securities and
Exchange Commission, between the Borrower and the Lender (or an Affiliate of the
Lender, as applicable) (the “Stock Purchase Agreement”) and other documentation
reasonably acceptable to the Borrower and the Lender. The Shares, together with
the Loans, shall constitute “investment units” for U.S. federal income tax
purposes.

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* 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 PORTION.

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ARTICLE IV

LIBO RATE AND OTHER PROVISIONS

SECTION 4.1 Increased Costs, Etc. The Borrower agrees to reimburse the Lender
for any increase in the cost to the Lender of, or any reduction in the amount of
any sum receivable by the Lender in respect of, the Lender’s Commitment and the
making, continuation or maintaining of the Loans hereunder that may arise in
connection with any Change in Law, except for such changes with respect to
increased capital costs and Taxes which are governed by Section 4.2 and Section
4.3, respectively. The Lender shall notify the Borrower in writing of the
occurrence of any such event, stating the reasons therefor and the additional
amount required fully to compensate the Lender for such increased cost or
reduced amount. Such additional amounts shall be payable by the Borrower
directly to the Lender within ten Business Days of its receipt of such notice,
and such notice shall, in the absence of manifest error, be conclusive and
binding on the Borrower. Failure or delay on the part of the Lender to demand
compensation pursuant to this Section 4.1 shall not constitute a waiver of such
Lender’s right to demand such compensation; provided that the Borrower shall not
be required to compensate the Lender pursuant to this Section for any increased
costs or reductions incurred more than [*] days prior to the date that such
Lender notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender’s intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the [*]-day period referred
to above shall be extended to include the period of retroactive effect thereof.

SECTION 4.2 Increased Capital Costs. If any Change in Law affects or would
affect the amount of capital required or expected to be maintained by the Lender
or any Person controlling the Lender, and the Lender determines (in good faith
and in its reasonable discretion) that the rate of return on its or such
controlling Person’s capital as a consequence of the Commitment or the Loans
made by it hereunder is reduced to a level below that which the Lender or such
controlling Person could have achieved but for the occurrence of any such
circumstance, then upon notice from time to time by the Lender to the Borrower,
the Borrower shall within ten Business Days following receipt of such notice pay
directly to the Lender additional amounts sufficient to compensate the Lender or
such controlling Person for such reduction in rate of return. A statement of the
Lender as to any such additional amount or amounts shall, in the absence of
manifest error, be prima facie evidence of the accuracy thereof. In determining
such amount, the Lender may use any method of averaging and attribution that it
(in its reasonable discretion) shall deem applicable.

SECTION 4.3 Taxes. The Borrower covenants and agrees as follows with respect to
Taxes.

(a)      Except as required by applicable law, any and all payments by the
Borrower under each Loan Document shall be made without setoff, counterclaim or
other defense, and free and clear of, and without deduction or withholding for
or on account of, any Taxes. In the event that any Taxes are imposed and
required to be deducted or

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* 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 PORTION.

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withheld from any payment required to be made by the Borrower or any of the
Subsidiaries to or on behalf of the Lender under any Loan Document, then:

(i)      if such Taxes are Non-Excluded Taxes, the payment shall be increased by
the amount necessary so that after the withholding or deduction for or on
account of such Taxes, the amount received by the Lender is equal to the amount
that it would have received had no such withholding or deduction of Taxes been
made; and

(ii)      the Borrower shall withhold the full amount of such Taxes from such
payment (as increased pursuant to clause (a)(i) and shall pay such amount to the
Governmental Authority imposing such Taxes in accordance with applicable law.

(b)      In addition, the Borrower shall pay all Other Taxes imposed with
respect to the Loans or any Loan Document to the relevant Governmental Authority
imposing such Other Taxes in accordance with applicable law.

(c)      As promptly as practicable after the payment of any Taxes or Other
Taxes required to be paid by the Borrower under Section 4.3(a), or (b), and in
any event within 45 days of any such payment being made, the Borrower shall
furnish to the Lender a copy of an official receipt (or a certified copy
thereof) or other evidence of such payment reasonably satisfactory to the Lender
evidencing the payment of such Taxes or Other Taxes.

(d)      The Borrower shall indemnify the Lender for any Non-Excluded Taxes and
Other Taxes levied, imposed or assessed with respect to the Loans or any Loan
Document on (and whether or not paid directly by) the Lender, whether or not
such Non-Excluded Taxes or Other Taxes are correctly or legally asserted by the
relevant Governmental Authority. In addition, the Borrower shall indemnify the
Lender for any incremental Taxes that may become payable by the Lender as a
result of any failure of the Borrower to pay any Non-Excluded Taxes or Other
Taxes when due to the appropriate Governmental Authority or to deliver to the
Lender, pursuant to clause (c), documentation evidencing the payment of
Non-Excluded Taxes or Other Taxes. With respect to indemnification for
Non-Excluded Taxes and Other Taxes actually paid by the Lender or the
indemnification provided in the immediately preceding sentence, such
indemnification shall be made within 30 days after the date the Lender makes
written demand therefor, which demand shall be accompanied by documentation
reasonably satisfactory to establish the nature of the amounts for which demand
is being made, and the fact and amount of the payment thereof, for the full
amount of any Non-Excluded Taxes or Other Taxes paid by the Lender. The Borrower
acknowledges that any payment made to the Lender or to any Governmental
Authority in respect of the indemnification obligations of the Borrower provided
in this clause shall constitute a payment in respect of which the provisions of
clause (a) and this clause shall apply.

(e)      If the Lender is entitled to an exemption from or reduction in any
applicable withholding Tax with respect to payments under this Agreement or any
other

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Loan Document, then such Lender agrees to deliver to the Borrower, at such times
as are reasonably requested by the Borrower, such properly completed and
executed documentation prescribed by applicable law as will permit such payments
to be made without withholding or at a reduced rate of withholding. In addition,
each Lender agrees that from time to time after the Closing Date, when a lapse
in time or change in circumstances renders the previous documentation obsolete,
expired or inaccurate in any respect, it will deliver to the Borrower updated or
other appropriate documentation (including any new documentation reasonably
requested by the Borrower) or it shall immediately notify the Borrower of its
legal ineligibility to deliver any such documentation. Without limiting the
generality of the foregoing, on the Closing Date, and on the date on which a
subsequent successor or assignee of the Lender otherwise acquires an interest in
this Agreement, as applicable, and at such other times as may be necessary in
the determination of Borrower (in the reasonable exercise of its discretion),
the Lender (and any successor or assign of the Lender) shall deliver to the
Borrower two (2) properly completed and signed original IRS Forms W-8BEN,
W-8BEN-E, W-8EXP, W-8ECI or W-8IMY (along with a Form W-9, W-8BEN-E or W-8BEN
for each beneficial owner that will receive, directly or indirectly, any
consideration payable or otherwise deliverable pursuant to this Agreement) or
IRS Form W-9 (or any successor form), as applicable, and such other
documentation required under the Code and reasonably requested by the Borrower
to establish the appropriate amount of any deduction or withholding of United
States federal Tax, if any, with respect to any payments to Lender (or its
successors or assigns), including any such additional documentation reasonably
requested by Borrower as may be necessary for Borrower to comply with its
obligations under FATCA. Lender (and each of its successors or assigns) shall,
from time to time after the initial delivery by such Person of such forms,

certificates or other evidence, whenever a lapse in time, change in
circumstances or law, or additional guidance by a Governmental Authority renders
such forms, certificates or other evidence obsolete or inaccurate in any
material respect, promptly deliver to Borrower two (2) new originals of Internal
Revenue Service Forms W-8BEN, W-8BEN-E, W-8EXP, W-8ECI, or W-8IMY (along with
Forms W-9, W-8BEN-E or W-8BEN for each beneficial owner for whom it expects to
receive a payment) or Form W-9, or any successor form, as the case may be,
properly completed and duly executed by such Person, and such other
documentation required under the Code and reasonably requested by Borrower to
confirm or establish the extent to which such Person is or is not subject to
deduction, backup withholding or withholding of U.S. federal Tax with respect to
payments to such Person under this Agreement, or notify Borrower of its
inability to deliver any such forms, certificates or other evidence.

(f)      If a payment made to the Lender under any Loan Document would be
subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to
fail to comply with the applicable reporting requirements of FATCA (including
those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such
Lender shall deliver to the Borrower at the time or times prescribed by law and
at such time or times reasonably requested by the Borrower such documentation
prescribed by applicable law (including as prescribed by Section
1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower as may be necessary for the Borrower to comply with
its obligations under FATCA and to determine that such Lender

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has complied with such Lender’s obligations under FATCA or to determine the
amount to deduct and withhold from such payment. Solely for purposes of this
Section 4.3(f), “FATCA” shall include any amendments made to FATCA after the
date of this Agreement.

(g)      If the Lender determines, in its sole discretion exercised in good
faith, that it has received a refund of any Non-Excluded Taxes or Other Taxes as
to which it has been indemnified pursuant to this Section 4.3(d) (including by
the payment of additional amounts pursuant to this Section 4.3(d)), it shall pay
to the Borrower an amount equal to such refund, net of all out-of-pocket
expenses (including Taxes) of the Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund). The Borrower, upon the request of the Lender, shall repay to the Lender
the amount paid over pursuant to this clause (g) (plus any penalties, interest
or other charges imposed by the relevant Governmental Authority) in the event
that the Lender is required to repay such refund to such Governmental Authority.

SECTION 4.4 Payments, Computations; Proceeds of Collateral, Etc.

(a)      Unless otherwise expressly provided in a Loan Document, all payments by
the Borrower pursuant to each Loan Document shall be made without setoff,
deduction or counterclaim not later than 2:00 p.m. Eastern (New York City) time
on the date due in same day or immediately available funds to such account as
the Lender shall specify from time to time by notice to the Borrower. Funds
received after 2:00 p.m. Eastern (New York City) time on any day shall be deemed
to have been received by the Lender on the next succeeding Business Day. All
interest and fees shall be computed on the basis of the actual number of days
(including the first day but excluding the last day) occurring during the period
for which such interest or fee is payable over a year comprised of 360 days.
Payments due on other than a Business Day shall be made on the next succeeding
Business Day and such extension of time shall be included in computing interest
and fees in connection with that payment.

(b)      All amounts received as a result of the exercise of remedies under the
Loan Documents (including from the proceeds of collateral securing the
Obligations) or under applicable law shall be applied upon receipt to the
Obligations as follows: (i) first, to the payment in full in cash of all
interest (including interest accruing after the commencement of a proceeding in
bankruptcy, insolvency or similar law, whether or not permitted as a claim under
such law) and fees owing under the Loan Documents, and all costs and expenses
owing to the Lender pursuant to the terms of the Loan Documents, until paid in
full in cash, (ii) second, after payment in full in cash of the amounts
specified in clause (b)(i), to the payment of the principal amount of the Loans
then outstanding, (iii) third, after payment in full in cash of the amounts
specified in clauses  (b)(i) and (b)(ii), to the payment of all other
Obligations owing to the Lender (other than inchoate indemnity and reimbursement
obligations), and (iv) fourth, after payment in full in cash of the amounts
specified in clauses (b)(i) through (b)(iii), and following the Termination
Date, to the Borrower or any other Person lawfully entitled to receive such
surplus.

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SECTION 4.5 Setoff. The Lender shall, upon the occurrence and during the
continuance of any Default described in clauses (i) through (iv) of Section
9.1(h) or, upon the occurrence and during the continuance of any other Event of
Default, have the right to appropriate and apply to the payment of the
Obligations owing to it (whether or not then due). The Lender agrees promptly to
notify the Borrower after any such appropriation and application made by the
Lender; provided that, the failure to give such notice shall not affect the
validity of such setoff and application. The rights of the Lender under this
Section are in addition to other rights and remedies (including other rights of
setoff under applicable law or otherwise) which the Lender may have.

SECTION 4.6 LIBO Rate Not Determinable. If prior to the commencement of any
Interest Period, adequate and reasonable means do not exist for ascertaining the
LIBO Rate for such Interest Period, then the Lender shall give notice thereof to
the Borrower as promptly as practicable. In the event of any such determination,
the Loans shall, until the Lender has advised the Borrower that the
circumstances giving rise to such notice no longer exist, bear interest at the
interest rate in effect for the immediately preceding Interest Period.

ARTICLE V
CONDITIONS TO MAKING THE LOANS

SECTION 5.1 Credit Extensions. The obligation of the Lender to make the Initial
Loan shall be subject to the execution and delivery of this Agreement by the
parties hereto, the delivery of a Loan Request as requested pursuant to Section
2.3, and the satisfaction of each of the conditions precedent set forth below in
this Article (other than Sections 5.19 and 5.20). The obligation of the Lender
to make the Delayed Draw Loan shall be subject to the prior making of the
Initial Loan, the delivery of a Loan Request as requested pursuant to Section
2.3, and the satisfaction of each of the conditions precedent set forth below in
Sections 5.3, 5.8, 5.19 and 5.20.

SECTION 5.2 Secretary’s Certificate, Etc. The Lender shall have received from
the Borrower and each Subsidiary party to a Loan Document, (i) a copy of a good
standing certificate, dated a date reasonably close to the Closing Date, for
each such Person and (ii) a certificate, dated as of the Closing Date, duly
executed and delivered by such Person’s Secretary, Assistant Secretary or other
Authorized Officer, managing member or general partner, as applicable, as to

(a)      resolutions of each such Person’s Board of Directors (or other managing
body, in the case of other than a corporation) then in full force and effect
authorizing the execution, delivery and performance of each Loan Document to be
executed by such Person and the transactions contemplated hereby and thereby;

(b)      the incumbency and signatures of those of its officers, managing member
or general partner, as applicable, authorized to act with respect to each Loan
Document to be executed by such Person; and

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(c)      the full force and validity of each Organic Document of such Person and
copies thereof;

upon which certificates the Lender may conclusively rely until it shall have
received a further certificate of the Secretary, Assistant Secretary, managing
member or general partner, as applicable, of any such Person canceling or
amending the prior certificate of such Person.

SECTION 5.3 Closing Date Certificate. The Lender shall have received a Closing
Date Certificate, dated as of the Closing Date or Delayed Draw Closing Date, as
the case may be, and duly executed and delivered by an Authorized Officer of the
Borrower, in which certificate the Borrower shall certify that (i) the
representations and warranties set forth in each Loan Document shall, in each
case, be true and correct in all material respects (except with respect to any
representation or warranty qualified by materiality or Material Adverse Effect,
which representation or warranty shall be true and correct in all respects),
(ii) no Default shall have then occurred and be continuing, or would result from
the Loan to be advanced on the Closing Date or Delayed Draw Closing Date, as the
case may be, and (iii) all of the applicable conditions set forth in this
Article V have been satisfied.

SECTION 5.4 Payment of Outstanding Indebtedness, Etc. All Indebtedness not
otherwise permitted by Section 8.2 shall have been paid in full from the
proceeds of the Loan and any commitments in respect of such Indebtedness shall
have been terminated, and all Liens securing payment of any such Indebtedness
shall have been released and the Lender shall have received all Uniform
Commercial Code Form UCC-3 termination statements or other instruments
(including customary payoff letters) as may be suitable or appropriate in
connection therewith.

SECTION 5.5 Delivery of Note. The Lender shall have received a Note duly
executed and delivered by an Authorized Officer of the Borrower.

SECTION 5.6 Financial Information, Etc. The Lender shall have received

(a)      except to the extent publicly available on the SEC’s EDGAR system,
audited consolidated financial statements of the Borrower and the Subsidiaries
for each of the fiscal years ended December 31, 2015 and December 31, 2016;

(b)      unaudited consolidated balance sheets of the Borrower and the

Subsidiaries for the fiscal quarter ended on March 31, 2017, together with the
related consolidated statement of operations, shareholder’s equity and cash
flows for the twelve months then ended; and

(c)      such other non-privileged financial information as to the Borrower and
the Subsidiaries and their respective businesses, assets and liabilities as the
Lender may reasonably request; provided, that such financial information is
otherwise prepared by the Borrower or its Subsidiaries.

SECTION 5.7 Intentionally Omitted.

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SECTION 5.8 Solvency, Etc. The Lender shall have received a solvency certificate
duly executed and delivered by the chief financial officer or other Authorized
Officer of the Borrower, dated as of the Closing Date or Delayed Draw Closing
Date, as the case may be, in form and substance satisfactory to the Lender.

SECTION 5.9 Guarantee. The Lender shall have received executed counterparts of
the Guarantee, dated as of the date hereof, duly executed and delivered by each
Subsidiary.

SECTION 5.10 Security Agreements. The Lender shall have received executed
counterparts of the Security Agreement, dated as of the date hereof, duly
executed and delivered by the Borrower and each Subsidiary, together with

(a)      certificates (in the case of Capital Securities that are securities (as
defined in the UCC)) evidencing all of the issued and outstanding Capital
Securities owned by the Borrower or any Subsidiary, which certificates in each
case shall be accompanied by undated instruments of transfer duly executed in
blank, or, in the case of Capital Securities that are uncertificated securities
(as defined in the UCC), confirmation and evidence satisfactory to the Lender
that the security interest therein has been transferred to and perfected by the
Lender in accordance with Articles 8 and 9 of the UCC;

(b)      financing statements suitable in form for naming the Borrower and each
Subsidiary as a debtor and the Lender as the secured party, or other similar
instruments or documents to be filed under the UCC of all jurisdictions as may
be necessary or, in the opinion of the Lender, desirable to perfect the security
interests of the Lender pursuant to the Security Agreement; and

(c)      UCC Form UCC-3 termination statements, if any, necessary to release all
Liens and other rights of any Person (i) in any assets of the Borrower or any
Subsidiary, and (ii) securing any of the Indebtedness not otherwise permitted by
Section 8.2, together with such other UCC Form UCC-3 termination statements as
the Lender may reasonably request from the Borrower or any Subsidiary.

SECTION 5.11 Intellectual Property Security Agreements. The Lender shall have
received a Patent Security Agreement, a Copyright Security Agreement and a
Trademark Security Agreement, as applicable, each dated as of the Closing Date,
duly executed and delivered by the Borrower or any Subsidiary that, pursuant to
the Security Agreement, is required to provide such intellectual property
security agreements to the Lender.

SECTION 5.12 Intentionally Omitted.

SECTION 5.13 Intentionally Omitted.

SECTION 5.14 Opinion of Counsel. The Lender shall have received an opinion,
dated the Closing Date and addressed to the Lender, from Skadden, Arps, Slate,
Meagher & Flom LLP, counsel to the Borrower and the Subsidiaries, in form

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and substance satisfactory to the Lender and addressing matters customary for
transactions of this type.

SECTION 5.15 Insurance. Subject to Schedule 7.16, the Lender shall have received
accord or similar certificates, from one or more insurance companies
satisfactory to the Lender (other than business interruption insurance (if any),
director and officer insurance and workers' compensation insurance), evidencing
coverage required to be maintained pursuant to each Loan Document, with the
Lender named as loss payee or additional insured, as applicable.

SECTION 5.16 Intentionally Omitted.

SECTION 5.17 Anti-Terrorism Laws. The Lender shall have received, as applicable,
all documentation and other information required by bank regulatory authorities
under applicable “know your customer” and anti-money laundering rules and
regulations, including the U.S.A. Patriot Act.

SECTION 5.18 Satisfactory Legal Form. All documents executed or submitted
pursuant hereto by or on behalf of the Borrower or any Subsidiary shall be
satisfactory in form and substance to the Lender and its counsel.

SECTION 5.19 Net Revenues. The Net Revenue for the twelve full calendar months
ending on the last day of the Fiscal Month immediately prior to the Delayed Draw
Closing Date was at least $[*].

SECTION 5.20 Disclosure Schedules. Immediately prior to the Delayed Draw Closing
Date, the Borrower shall deliver to the Lender updates to Schedules 6.15(a),
6.16, 6.19 and 6.22, each such updated Schedule to be complete and accurate in
all material respects as of the Delayed Draw Closing Date.

ARTICLE VI
REPRESENTATIONS AND WARRANTIES

In order to induce the Lender to enter into this Agreement and to make the Loans
hereunder, the Borrower represents and warrants, in each case (unless otherwise
stated) on the Closing Date and on the Delayed Drawing Closing Date, to the
Lender as set forth in this Article. For the avoidance of doubt, no
representation or warranty in this Article VI is made on the Delayed Drawing
Closing Date until immediately prior to the making of the Delayed Draw Loan.

SECTION 6.1 Organization, Etc. The Borrower and each Subsidiary (a) is validly
organized and existing and in good standing under the laws of the jurisdiction
of its incorporation or organization, is duly qualified to do business and is in
good

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* 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 PORTION.

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standing as a foreign entity in each jurisdiction where the nature of its
business requires such qualification (unless the failure to so qualify as a
foreign entity could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect), and (b) has full power and
authority and holds all requisite material governmental licenses, permits and
other approvals required (i) to enter into and perform its Obligations under
each Loan Document to which it is a party, and (ii) to own and hold under lease
its property and to conduct its business in all material respects substantially
as currently conducted by it.

SECTION 6.2 Due Authorization, Non-Contravention, Etc. The execution, delivery
and performance by the Borrower and each Subsidiary of each Loan Document
executed or to be executed by it are in each case within such Person’s corporate
or organizational powers, have been duly authorized by all necessary corporate
or organizational action, and do not

(a)      contravene (i) the Borrower’s or any Subsidiary’s Organic Documents,
(ii) any court decree or order binding on or affecting the Borrower or any
Subsidiary or (iii) any law or governmental regulation binding on or affecting
the Borrower or any Subsidiary; or

(b)      result in (i) or require the creation or imposition of any Lien on the
Borrower’s or any Subsidiary’s properties (except as permitted by this
Agreement) or (ii) a default under any material contract, agreement, or
instrument binding on or affecting the Borrower or any Subsidiary.

SECTION 6.3 Government Approval, Regulation, Etc. No authorization or approval
or other action by, and no notice to or filing with, any Governmental Authority
or other Person (other than those that have been, or on the Closing Date will
be, duly obtained or made and which are, or on the Closing Date will be, in full
force and effect) is required for the due execution, delivery or performance by
the Borrower or any Subsidiary of any Loan Document to which it is a party.

SECTION 6.4 Validity, Etc. Each Loan Document to which the Borrower or any
Subsidiary is a party constitutes the legal, valid and binding obligations of
such Person enforceable against such Person in accordance with its respective
terms (except, in any case, as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization or similar laws affecting creditors’
rights generally and by principles of equity).

SECTION 6.5 Financial Information. The financial statements of the Borrower and
the Subsidiaries furnished to the Lender pursuant to Sections 5.6 and 7.1 have
been prepared in accordance with GAAP, consistently applied, subject, in the
case of unaudited financial statements, to the absence of footnotes and changes
resulting from normal, year-end audit adjustments, and present fairly in all
material respects the consolidated financial condition of the Persons covered
thereby as at the dates thereof and the results of their operations for the
periods then ended.

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SECTION 6.6 No Material Adverse Change. There has been no material adverse
change in the business, financial performance or condition, operations
(including the results thereof), assets, or properties of the Borrower and its
Subsidiaries, taken as a whole, since December 31, 2016.

SECTION 6.7 Litigation, Labor Matters and Environmental Matters.

(a)      Except as described on Schedule 6.7(a) or as otherwise disclosed to the
Lender, to the Borrower’s knowledge, there are no actions, suits or proceedings
by or before any arbitrator or Governmental Authority pending against or
threatened against or affecting the Borrower or any Subsidiary (i) that involves
this Agreement or the transactions contemplated hereby, (ii) that would
reasonably be expected, individually or in the aggregate, to result in
liabilities in excess of $[*] or (iii) that would reasonably be expected to have
or result in a Material Adverse Effect.

(b)      There are no labor controversies pending against or, to the knowledge
of the Borrower, threatened against or affecting the Borrower or any Subsidiary
that could reasonably be expected to have or result in a Material Adverse
Effect.

(c)      Neither the Borrower nor any Subsidiary (i) has failed to comply with
any Environmental Law or to obtain, maintain or comply with any Permit under or
in connection with any Environmental Law (“Environmental Permit”), except to the
extent that any such failure could not reasonably be expected to have or result
in a Material Adverse Effect; or (ii) is or has been subject to any
Environmental Liability, has received notice of any Environmental Liability, or
knows of any basis for any Environmental Liability, except to the extent that
the foregoing could not reasonably be expected to have or result in a Material
Adverse Effect.

SECTION 6.8 Subsidiaries. The Borrower has no Subsidiaries except those
Subsidiaries which are identified in Schedule 6.8 (which Schedule also
identifies the direct and indirect owners that have economic and/or voting
rights with respect to the Capital Securities of such Subsidiaries) or which are
permitted to have been organized or acquired after the Closing Date in
accordance with Section 8.5 or Section 8.7.

SECTION 6.9 Ownership of Properties. The Borrower and each Subsidiary owns (i)
in the case of owned real property, good and marketable fee title to, and (ii)
in the case of owned personal property, good and valid title to, or, in the case
of leased real or personal property, valid and enforceable leasehold interests
(as the case may be) in, all of its material properties and assets, tangible and
intangible, of any nature whatsoever, free and clear in each case of all Liens
or claims, except for Liens permitted pursuant to Section 8.3.

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* 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 PORTION.

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SECTION 6.10 Taxes. Except as set forth on Schedule 6.10, the Borrower and each
Subsidiary has filed all federal income tax and all other material tax returns
and reports required by law to have been filed by it and has paid all material
Taxes due and owing, except any such Taxes which are being diligently contested
in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books.

SECTION 6.11 Benefit Plans, Etc. Except as would reasonably be expected to,
individually or in the aggregate, result in a Material Adverse Effect: (a) none
of the Borrower or any of the Subsidiaries or any of their respective ERISA
Affiliates sponsors, maintains, contributes to, is required to contribute to, or
has any actual or potential liability with respect to, any Benefit Plan; (b)
none of the Borrower or any of the Subsidiaries is a party to any collective
bargaining agreement, and none of the employees of the Borrower or any of the
Subsidiaries (each in his or her capacity as an employee of the Borrower or a
Subsidiary) are subject to any collective bargaining agreement; (c) each
“employee benefit plan” as defined in section 3(3) of ERISA that (i) provides
retirement benefits, (ii) is sponsored by the Borrower, any Subsidiary, or, with
respect to any such plan that is subject to section 412 of the Code, section 302
of ERISA or Title IV of ERISA, any of their ERISA Affiliates, and (iii) is
intended to be tax-qualified under section 401(a) of the Code has received a
determination letter or opinion letter from the Internal Revenue Service on
which it is entitled to rely, and no assets of any such plan are invested in
Capital Securities of the Borrower; and (d) each “employee benefit plan” (as
defined in section 3(3) of ERISA) sponsored, maintained, contributed to or
required to be contributed to by the Borrower or any Subsidiary complies with
its terms and applicable law.

SECTION 6.12 Accuracy of Information. None of the information heretofore or
contemporaneously furnished in writing to the Lender by or on behalf of the
Borrower or any Subsidiary in connection with any Loan Document or any
transaction contemplated hereby, when taken as a whole, contains any untrue
statement of a material fact, or omits to state any material fact necessary to
make any information, in light of the circumstances under which it is made, not
misleading in any material respect as of the time when made or delivered;
provided, that, with respect to projected financial information, the Borrower
represents only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time; it being understood by the
Lender that such projected financial information are as to future events and are
not to be viewed as facts, the projected financial information are subject to
significant uncertainties and contingencies, many of which are beyond the
control of the Borrower and its Subsidiaries, that no assurance can be given
that any particular projected financial information will be realized and that
actual results during the period or periods covered by any such projections may
significantly differ from the projected results and such differences may be
material.

SECTION 6.13 Regulations U and X. None of the Borrower or any Subsidiary is
engaged in the business of extending credit for the purpose of buying or
carrying margin stock, and no proceeds of the Loans will be used to purchase or
carry margin stock or otherwise for a purpose which violates, or would be
inconsistent with,

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F.R.S. Board Regulation U or Regulation X. Terms for which meanings are provided
in F.R.S. Board Regulation U or Regulation X or any regulations substituted
therefor, as from time to time in effect, are used in this Section with such
meanings.

SECTION 6.14 Solvency. The Borrower and its Subsidiaries taken as a whole, both
before and after giving effect to the Loans, are Solvent.

SECTION 6.15 Intellectual Property.

(a)      Schedule 6.15(a) sets forth a complete and accurate list as of the
Closing Date or Delayed Draw Closing Date, as the case may be, of all (i)
Patents including any Patent applications and other material so defined as
Patents, (ii) registered Trademarks (including domain names) and any pending
registrations for Trademarks, and (iii) any other registered Intellectual
Property, in each case owned by the Borrower or any of the Subsidiaries and
material to the business of the Borrower or such Subsidiary. For each item of
Intellectual Property listed on Schedule 6.15(a), the Borrower has, where
relevant, indicated (A) the countries in each case in which such item is
registered, (B) the application numbers, (C) the registration or patent numbers,
(D) with respect to the Patents, the approximate expected expiration date of the
issued Patents, and (E) the owner of such item of Intellectual Property.

(b)      With respect to all Intellectual Property listed on Schedule 6.15(a),
except as set forth on Schedule 6.15(b):

(i)      the Borrower or a Subsidiary owns such Intellectual Property free and
clear of any and all Liens other than Liens permitted pursuant to Section 8.3,
and all such Intellectual Property is in full force and effect, and has not
expired, lapsed or been forfeited, cancelled or abandoned unless permitted
hereunder, except, on the Delayed Draw Closing Date, where such event or
circumstance is not reasonably expected to be material to the Borrower and its
Subsidiaries;

(ii)      each of the Borrower and the Subsidiaries, as applicable, has taken
commercially reasonable actions to maintain and protect such Intellectual
Property and there are no unpaid maintenance or renewal fees payable by the
Borrower or any of the Subsidiaries that are currently overdue for any of such
registered Intellectual Property, except to the extent such non-payment could
not reasonably be expected to cause a Material Adverse Effect;

(iii)      there is no proceeding challenging the validity or enforceability of
any such Intellectual Property, none of the Borrower or any of the Subsidiaries
is involved in any such proceeding with any Person and none of the Intellectual
Property is the subject of any Other Administrative Proceeding, except on the
Delayed Draw Closing Date, where such challenge is not reasonably expected to
have a Material Adverse Effect;

(iv)      (A) to the knowledge of the Borrower, such Intellectual Property is
subsisting and such registered Copyrights and registered Trademarks are valid
and enforceable, (B) with respect to any such issued Patents, such Patents have
not

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been declared invalid or unenforceable and the Borrower or a Subsidiary has not
received a legal opinion determining that any such Patents are invalid or
unenforceable, and (C) to the knowledge of the Borrower, no event has occurred,
and nothing has been done or omitted to have been done, that would affect the
validity or enforceability of such Intellectual Property, except where such
event is not reasonably expected to have a Material Adverse Effect; and

(v)      each of the Borrower and each Subsidiary, as applicable, is the sole
and exclusive owner of all right, title and interest in and to all such
Intellectual Property that is owned by it, except for Intellectual Property
listed on Schedule  6.15(b)(v) and except, on the Delayed Draw Closing Date, for
Dispositions permitted pursuant to Section 8.8.

(c)      To the knowledge of the Borrower, except as set forth on Schedule
6.15(c), no Third Party is committing any act of Infringement of any
Intellectual Property listed on Schedule 6.15(a), except where such Infringement
is not reasonably expected to have a Material Adverse Effect.

(d)      Schedule 6.15(d) sets forth a complete and accurate list as of the
Closing Date or Delayed Draw Closing Date, as the case may be, of all agreements
pursuant to which Intellectual Property is in-licensed by the Borrower or any of
its Subsidiaries that are significant licenses to the business of the Borrower
or such Subsidiary. With respect to each license agreement listed on Schedule
6.15(d), (x) such license agreement (i) is in full force and effect and is
binding upon and enforceable against the Borrower and the Subsidiaries party
thereto and, to the Borrower’s knowledge, all other parties thereto in
accordance with its terms, (ii) has not been amended or otherwise modified,
except as set forth on Schedule 6.15(d) and (iii) no material default or breach
by Borrower or its Subsidiaries, and to Borrower’s knowledge, any other party
thereto, has occurred and is continuing thereunder, and (y) none of the Borrower
or any of its Subsidiaries has taken any action or omitted to take any action
that would permit any other Person party to any such license agreement to
terminate such license agreement (except to the extent such license is
terminated or otherwise cancelled pursuant to the terms thereof and not as a
result of a breach by the Borrower or any Subsidiary thereunder or pursuant to
the Borrower’s reasonable commercial judgment (and not as a result of a breach
by the Borrower or any Subsidiary thereunder)).

(e)      Except as set forth on Schedule 6.15(e) or as otherwise disclosed to
the Lender, none of the Borrower or any of the Subsidiaries has received written
notice from any Third Party alleging that the conduct of its business (including
the development, manufacture, use, sale or other commercialization of any
Product) Infringes any Intellectual Property of that Third Party and, to the
knowledge of the Borrower, the conduct of its business and the business of the
Subsidiaries (including the development, manufacture, use, sale or other
commercialization of any Product (other than Products in development)) does not
Infringe any Intellectual Property of any Third Party in any material respect.

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(f)      The Borrower and its Subsidiaries have used commercially reasonable
efforts and precautions to protect their respective unregistered Intellectual
Property that is material to their businesses.

SECTION 6.16 [Reserved]

SECTION 6.17 Permits. Except as set forth on Schedule 6.17, the Borrower and the
Subsidiaries have all material Permits, including material Environmental
Permits, necessary or required for the ownership, operation and conduct of their
business and the distribution of the Products (other than Products in
development), as such business and distribution is currently being carried out.
All such Permits are validly held and there are no defaults thereunder, except
as would not reasonably be expected to result in a Material Adverse Effect.

SECTION 6.18 Regulatory Matters.

(a)      The Borrower and its Subsidiaries have conducted and currently conduct
their business in compliance with all applicable U.S. federal, state, local or
foreign laws, statutes, ordinances, rules, regulations, judgments, orders,
injunctions, decrees, arbitration awards and Key Permits issued by any
Governmental Authority (collectively, “Laws”), except where the failure to do
so, individually or in the aggregate, could not reasonably be expected to result
in a Material Adverse Effect.

(i)      Borrower LDTs were researched, developed, designed, and validated in
compliance with all applicable Laws, including the FDCA, CLIA, Privacy Laws and
state laws, and have been and continue to be performed, marketed, and conducted
in compliance with all applicable Laws, including the FDCA, FTC Act, CLIA,
Privacy Laws and state laws, including the laws of New York, except where the
failure to do so, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect.

(ii)      Borrower Medical Devices have been and are being researched,
developed, designed, investigated, manufactured, marketed, and distributed in
compliance with all applicable Laws, including the FDCA, the FTC Act, Privacy
Laws and state laws, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

(iii)      The cord blood collection and storage activities of the Borrower and
its Subsidiaries have been and are being marketed, performed, and otherwise
offered in compliance in all respects with all applicable Laws, including the
FDCA and applicable FDA regulations (including 21 C.F.R. 1271), and constitute
private storage (storage by and on behalf of a donor or a donor’s family
members), except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. The
Borrower and its Subsidiaries do not engage in public cord blood storage.

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(b)      Except as set forth on Schedule 6.18(b) or as otherwise disclosed to
the Lender, (i) to the Borrower’s knowledge, no investigation by any
Governmental Authority with respect to the Borrower is pending or threatened,
and (ii) the Borrower has not received any written communication from any Person
(including any Governmental Authority) alleging any noncompliance with any
applicable laws or any written communication from any Governmental Authority or
accrediting organization of any material issues, problems, or concerns regarding
the quality or performance of the Products, in each case, to the extent such
investigation or noncompliance could reasonably be expected to result in a
Material Adverse Effect.

(c)      All manufacturing facilities owned or operated by the Borrower or any
of its Subsidiaries, or to Borrower’s knowledge used in the production of any
Product (other than Products in development), are and have been operated in
material compliance with cGMPs and all other applicable laws. The FDA has not
issued to Borrower, or to Borrower’s knowledge any other Person, any Form 483,
Warning Letter, or untitled letter with respect to any such facility, or
otherwise alleged of Borrower, or to Borrower’s knowledge of any other Person,
any material non-compliance with cGMPs. All manufacturing facilities owned or
operated by the Borrower or any of its Subsidiaries are operated in material
compliance with other applicable federal, state and local laws.

(d)      Except as set forth on Schedule 6.18(d) or as otherwise disclosed to
the Lender, (i) the Borrower has made available to Lender lists and copies, if
requested, of all Key Permits and written correspondence submitted to or
received from FDA, CMS, or other Governmental Authority (including minutes and
official contact reports relating to any written communications with any
Governmental Authority) in the Borrower’s possession or control, and (ii) to the
Borrower’s knowledge, there has been no untrue statement of fact and no
fraudulent statement made by the Borrower, any of the Subsidiaries or any of
their respective agents or representatives to the FDA, CMS, or any other
Governmental Authority, and there has been no failure by the Borrower or its
Subsidiaries to disclose any fact required to be disclosed to the FDA or any
other Governmental Authority, in each case, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect.

(e)      Except as set forth in Schedule 6.18(e) or as otherwise disclosed to
the Lender, no right of the Borrower to receive reimbursements pursuant to any
government program or private program has ever been terminated or otherwise
materially adversely affected as a result of any investigation or enforcement
action, whether by any Governmental Authority or other Third Party, and to the
Borrower’s knowledge, the Borrower has not been subject of any inspection,
investigation, or audit, by any Governmental Authority in connection with any
alleged improper activity.

(f)      To Borrower’s knowledge, there is no arrangement relating to the
Borrower providing for any rebates, kickbacks or other forms of compensation
that are unlawful to be paid to any Person in return for the referral of
business or for the arrangement for recommendation of such referrals. To the
Borrower’s knowledge, all billings by the Borrower for its services have been
true and correct (other than any inadvertent errors corrected in the ordinary
course of business) and, to the Borrower’s

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knowledge, are in compliance with all applicable laws, including the Federal
False Claims Act or any applicable state false claim or fraud law except where
such failure, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.

(g)      Except as set forth on Schedule 6.18(g), or as otherwise disclosed to
the Lender, the Borrower has not, and to the knowledge of the Borrower, no
officer, director, employee or agent of the Borrower has, (i) been convicted of,
charged with, or to the Borrower’s knowledge, investigated for any federal or
state health program-related offense or any other offense related to healthcare
or been excluded or suspended from participation in any such program; or within
the past five (5) years, has been convicted of, charged with or, to the
Borrower’s knowledge, investigated for a violation of Laws related to fraud,
theft, embezzlement, breach of fiduciary responsibility, financial misconduct,
obstruction of an investigation or controlled substances, or has been subject to
any judgment, stipulation, order or decree of, or criminal or civil fine or
penalty imposed by, any Governmental Authority related to fraud, theft,
embezzlement, breach of fiduciary responsibility, financial misconduct,
obstruction of an investigation or controlled substances; (ii) been convicted of
any crime or engaged in any conduct that has resulted or would reasonably be
expected to result in debarment or exclusion under 21 U.S.C. § 335a, Section
1128 of the Social Security Act or any similar applicable law, and no such
debarment or exclusion proceedings or investigations are pending or to the
Borrower’s knowledge, threatened against the Borrower or any of its officers,
directors, managers, employees or agents.

(h)      Except as set forth on Schedule 6.18(h), all studies, tests and
preclinical and clinical trials conducted relating to the Products, by or on
behalf of the Borrower and the Subsidiaries and, to the knowledge of the
Borrower, their respective licensees, licensors and Third Party services
providers and consultants, have been conducted, and are currently being
conducted, in all material respects, in accordance with all applicable Laws,
procedures and controls pursuant to, where applicable, current good clinical
practices and current good laboratory practices and other applicable laws, rules
and regulations. All results of such studies, tests and trials, and all other
material information related to such studies, tests and trials, have been made
available to the Lender as requested by it. To the extent required by applicable
law, the Borrower has obtained all necessary Regulatory Authorizations material
to the conduct of its business, as such business and distribution is currently
being carried out.

(i)      The transactions contemplated by the Loan Documents (or contemplated by
the conditions to effectiveness of any Loan Document) will not impair the
Borrower’s or any of its Subsidiaries’ ownership of or rights under (or the
license or other right to use, as the case may be) any Regulatory Authorizations
relating to the Products in any material manner.

SECTION 6.19 Transactions with Affiliates. Except as set forth on Schedule 6.19,
none of the Borrower or any Subsidiary has entered into, renewed, extended or
been a party to, any transaction (including the purchase, sale, lease, transfer
or exchange of property or assets of any kind or the rendering of services of
any kind)

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with any of its Affiliates during the three-year period immediately prior to the
Closing Date, except for any such transactions between or among the Borrower and
any Subsidiary.

SECTION 6.20 Investment Company Act. None of the Borrower or any Subsidiary is
an “investment company” or is “controlled” by an “investment company,” as such
terms are defined in, or subject to regulation under, the Investment Company Act
of 1940, as amended.

SECTION 6.21 OFAC. None of the Borrower, any Subsidiary or, to the knowledge of
the Borrower, any Related Party (a) is currently the subject of any Sanctions,
(b) is located, organized or residing in any Designated Jurisdiction, or (c) is
or has been (within the previous five (5) years) engaged in any transaction with
any Person who is now or was then the subject of Sanctions or who is located,
organized or residing in any Designated Jurisdiction. No Loan, nor the proceeds
from any Loan, has been or will be used, directly or indirectly, to lend,
contribute or provide to, or has been or will be otherwise made available to
fund, any activity or business in any Designated Jurisdiction or to fund any
activity or business of any Person located, organized or residing in any
Designated Jurisdiction or who is the subject of any Sanctions, or in any other
manner that will result in any violation by any Person (including the Lender and
its Affiliates) of Sanctions.

SECTION 6.22 Deposit and Disbursement Accounts. Set forth on Schedule 6.22 is a
complete and accurate list as of the Closing Date or Delayed Draw Closing Date,
as the case may be, of all banks and other financial institutions at which the
Borrower or any Subsidiary maintains deposit accounts, lockboxes, disbursement
accounts, investment accounts or other similar accounts, such Schedule correctly
identifies the name and address of each bank or financial institution, the name
in which each such account is held, the type of each such account, and the
complete account number for each such account, and each such account (other than
Excluded Accounts) is a Controlled Account as required pursuant to Section 7.13.

SECTION 6.23 The Shares. The Shares, when issued and delivered in accordance
with Section 3.9, will be validly issued, fully paid and non-assessable. Upon
issuance of the Shares to the Lender pursuant to Section 3.9, the Lender will
have good and valid title to the Shares, free and clear of all Liens.

ARTICLE VII

AFFIRMATIVE COVENANTS

The Borrower covenants and agrees with the Lender that until the Termination
Date has occurred, the Borrower will, and will cause the Subsidiaries to,
perform or cause to be performed the obligations set forth below.

SECTION 7.1 Financial Information, Reports, Notices, Etc. The Borrower will
furnish the Lender copies of the following financial statements, reports,
notices and information:

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(a)      [Intentionally omitted]

(b)      as soon as available and in any event within 45 days after the end of
each of the first three Fiscal Quarters of each Fiscal Year, and except to the
extent publicly available on the SEC’s EDGAR system within such time, an
unaudited consolidated balance sheet of the Borrower and the Subsidiaries as of
the end of such Fiscal Quarter and consolidated statements of income and cash
flow of the Borrower and the Subsidiaries for such Fiscal Quarter and for the
period commencing at the end of the previous Fiscal Year and ending with the end
of such Fiscal Quarter, and including (in each case) in comparative form the
figures for the corresponding Fiscal Quarter in, and the year to date portion
of, the immediately preceding Fiscal Year, certified as complete and correct by
the chief financial or accounting Authorized Officer of the Borrower (subject to
normal year-end audit adjustments and except for the absence of footnotes);

(c)      as soon as available and in any event within 120 days after the end of
each Fiscal Year, and except to the extent publicly available on the SEC’s EDGAR
system within such time, a copy of the consolidated balance sheet of the
Borrower and its Subsidiaries, and the related consolidated statements of income
and cash flow of the Borrower and its Subsidiaries for such Fiscal Year, setting
forth in comparative form the figures for the immediately preceding Fiscal Year,
audited (without any Impermissible Qualification) by an independent accounting
firm which is (i) registered with the Public Company Accounting Oversight Board
(PCAOB) to audit public companies and (ii) reasonably acceptable to the Lender,
it being understood that Ernst & Young LLP are the current auditors of the
Borrower and are deemed acceptable to the Lender;

(d)      concurrently with the delivery of the financial information pursuant to
clauses (b) and (c), a Compliance Certificate, executed by the chief financial
or accounting Authorized Officer of the Borrower, (i) showing compliance with
the financial covenants set forth in Section 8.4 and stating that no Default has
occurred and is continuing (or, if a Default has occurred, specifying the
details of such Default and the action that the Borrower or any of the
Subsidiaries has taken or proposes to take with respect thereto), (ii) stating
that no Subsidiary has been formed or acquired since the delivery of the last
Compliance Certificate (or, if a Subsidiary has been formed or acquired since
the delivery of the last Compliance Certificate, a statement that such
Subsidiary has complied with Section 7.8), (iii) stating that no real property
has been acquired by the Borrower or any of the Subsidiaries since the delivery
of the last Compliance Certificate (or, if any real property has been acquired
since the delivery of the last Compliance Certificate, a statement that the
Borrower has complied with Section 7.8 with respect to such real property), and
(iv) stating and including any and all applications for registration of
Intellectual Property filed by the Borrower or any of the Subsidiaries (or their
respective agents, employees, designees or licensees) with the United States
Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof, and
any and all approvals of registration and issuance of Intellectual Property
received by the Borrower or any of the Subsidiaries (or their respective agents,
employees, designees or licensees) from such offices, in each case since the
delivery of the last Compliance Certificate.

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(e)      as soon as possible and in any event within five Business Days after
the Borrower obtains knowledge of the occurrence of a Default, a statement of an
Authorized Officer of the Borrower setting forth details of such Default and the
action which the Borrower or any of the Subsidiaries has taken or proposes to
take with respect thereto;

(f)      as soon as possible and in any event within five Business Days after
the Borrower obtains knowledge of (i) the occurrence of any material adverse
development with respect to any litigation, action, proceeding or labor
controversy described in Schedule 6.7(a), (ii) the commencement of any
litigation, action, proceeding or labor controversy of the type and materiality
described in Section 6.7, notice thereof and, to the extent the Lender
reasonably requests, copies of all material non-privileged documentation
relating thereto, and (iii) any return, recovery, dispute or claim related to
Product or finished goods inventory that involves more than [*].

(g)      as soon as possible and in any event within ten Business Days after the
Borrower obtains knowledge of (i) any claim that the Borrower, any of the
Subsidiaries or one of their ERISA Affiliates has any liability under a Benefit
Plan, (ii) any effort to unionize the employees of the Borrower or any
Subsidiary, or (iii) written correspondence received from the Internal Revenue
Service regarding the loss of tax-qualification of a retirement plan, which is
sponsored by the Borrower or any of the Subsidiaries, or, with respect to any
such plan that is subject to section 412 of the Code, section 302 of ERISA or
Title IV of ERISA, any of their ERISA Affiliates, under Section 401(a) of the
Code that could reasonably be expected to result in material liability to the
Borrower.

(h)      promptly after the sending or filing thereof, copies of all material
reports, notices, prospectuses and registration statements which the Borrower or
any of its Subsidiaries files with the SEC or any national securities exchange,
unless copies of such reports, notices, prospectuses and registration statements
are publicly available on the SEC’s EDGAR system within two Business Days of the
sending or filing thereof;

(i)      promptly upon receipt thereof, copies of all “management letters” (or
equivalent) submitted to the Borrower or any of the Subsidiaries by the
independent public accountants referred to in clause (c) in connection with each
audit made by such accountants;

(j)      [reserved;]

(k)      if requested by the Lender in writing, the Borrower’s currently
available financial and business projections and budget, with evidence of
approval thereof by the Borrower’s board of directors, which shall be available
for each year no later than March 31 of such year; and

(l)      such other non-privileged financial and other information as the Lender
may from time to time reasonably request (including information and reports in
such detail as the Lender may request with respect to the terms of and
information provided

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* 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 PORTION.

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pursuant to the Compliance Certificate); provided, that such financial
information is otherwise prepared by the Borrower and its Subsidiaries.

SECTION 7.2 Maintenance of Existence; Compliance with Contracts, Laws,  Etc.
Each of the Borrower and each Subsidiary will preserve and maintain its legal
existence (except as otherwise permitted by Section 8.7), comply in all material
respects with all applicable laws, rules, regulations and orders, including the
payment (before the same become delinquent), of all material Taxes, imposed upon
the Borrower or any of the Subsidiaries or upon their property except to the
extent being diligently contested in good faith by appropriate proceedings and
for which adequate reserves in accordance with GAAP have been set aside on the
books of the Borrower or any of the Subsidiaries, as applicable.

SECTION 7.3 Maintenance of Properties. Each of the Borrower and the Subsidiaries
will maintain, preserve, protect and keep its and their respective properties in
good repair, working order and condition (ordinary wear and tear excepted), and
make necessary repairs, renewals and replacements so that the business carried
on by the Borrower or any of the Subsidiaries may be properly conducted at all
times, unless the Borrower or any of the Subsidiaries determines in good faith
that the continued maintenance of such property is no longer economically
desirable, necessary or useful to the business of the Borrower or any of the
Subsidiaries or the Disposition of such property is otherwise permitted by
Section 8.7 or Section 8.8.

SECTION 7.4 Insurance. Each of the Borrower and each of the Subsidiaries will
maintain:

(a)      insurance on its property with financially sound and reputable
insurance companies against business interruption, loss and damage in at least
the amounts (and with only those deductibles) customarily maintained, and
against such risks as are typically insured against in the same general area, by
Persons of comparable size engaged in the same or similar business as the
Borrower and the Subsidiaries; and

(b)      all worker’s compensation, employer’s liability insurance or similar
insurance as may be required under the laws of any state or jurisdiction in
which it may be engaged in business.

Without limiting the foregoing, all insurance policies required pursuant to this
Section (other than business interruption insurance (if any), director and
officer insurance and workers' compensation insurance) shall (i) name the Lender
as mortgagee and loss payee (in the case of property insurance) and additional
insured (in the case of liability insurance), as applicable, and use
commercially reasonable efforts to have the insurer provide that no cancellation
or modification as to the amount or scope of coverage of the policies will be
made without 30 days’ (10 days’ notice for nonpayment of premiums) prior written
notice to the Lender, and (ii) be in addition to any requirements to maintain
specific types of insurance contained in the other Loan Documents.

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SECTION 7.5 Books and Records. Each of the Borrower and each of the Subsidiaries
will keep books and records in accordance with GAAP which accurately reflect all
of its business affairs and transactions and permit the Lender or any of its
representatives, at reasonable times during regular business hours and intervals
(not to include the first 10 calendar days of any Fiscal Month unless explicitly
permitted by the Borrower, except in the event that a Default or Event of
Default has occurred or is continuing) upon reasonable prior written notice to
the Borrower, to visit the Borrower’s or any of the Subsidiaries’ offices, to
discuss the Borrower’s or any of the Subsidiaries’ financial or other matters
with its officers and employees, and its independent public accountants (and the
Borrower hereby authorizes such independent public accountant to discuss the
Borrower’s and any of the Subsidiaries’ financial and other matters with the
Lender or its representatives whether or not any representative of the Borrower
or any of the Subsidiaries is present) and to examine (and photocopy extracts
from) any of its books and records; provided, that so long as no Event of
Default has occurred and is continuing, the Borrower shall only be required to
pay any reasonable and documented fees and expenses incurred in connection with
the Lender’s visits [*] in any calendar year. The Borrower shall pay any
reasonable and documented fees of such independent public accountant incurred in
connection with the Lender’s exercise of its rights pursuant to this Section but
unless an Event of Default has occurred and is continuing at the time of its
exercise of such rights, not for more than [*] in any calendar year.

SECTION 7.6 Environmental Law Covenant. Each of the Borrower and each of the
Subsidiaries will (i) use and operate all of its and their businesses,
facilities and properties in material compliance with all Environmental Laws,
and keep and maintain all Environmental Permits and remain in compliance
therewith, except in each case to the extent such non-compliance could not
reasonably be expected to have or result in a Material Adverse Effect, and (ii)
promptly notify the Lender of, and provide the Lender with copies of all written
material claims, complaints, notices or inquiries relating to, any actual or
alleged non-compliance with any Environmental Laws or Environmental Permits or
any actual or alleged Environmental Liabilities that the Borrower reasonably
determines has or could result in a Material Adverse Effect. The Borrower and
each of the Subsidiaries will promptly resolve, remedy and mitigate any such
non-compliance or Environmental Liabilities in accordance with reasonable
business practices, and shall keep the Lender informed as to the progress of
same.

SECTION 7.7 Use of Proceeds. The Borrower will apply the proceeds of the Loan
for general corporate purposes and to pay its own fees and expenses associated
with the transactions contemplated hereby.

SECTION 7.8 Future Guarantors, Security, Etc. The Borrower and each Subsidiary
will execute any documents, financing statements, agreements and instruments,
and take all further action that may be required under applicable law, or that
the Lender may reasonably request, in order to effectuate the transactions
contemplated by the Loan Documents and in order to grant, preserve, protect and
perfect the validity and first priority (subject to Liens permitted by Section
8.3) of the Liens created or intended to be created by the Loan Documents.
Without limiting the

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* 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 PORTION.

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foregoing, the Borrower will promptly (a) cause any subsequently acquired or
organized Subsidiary to execute a supplement (in form and substance reasonably
satisfactory to the Lender) to the Guarantee and each other applicable Loan
Document in favor of the Lender and (b) pledge or cause to be pledged 100% of
the issued and outstanding Capital Securities of each direct and indirect
Subsidiary that is organized in the United States and 100% of the issued and
outstanding Voting Securities (or 65% of the issued and outstanding Voting
Securities if a 956 Impact would result from pledging 100% of the issued and
outstanding Voting Securities) and 100% of the issued and outstanding non-Voting
Securities of each Subsidiary that is organized outside the United States, in
each case that is owned by the Borrower or a Guarantor, to be subject at all
times to a first priority, perfected Lien (subject to Liens permitted by Section
8.3) in favor of the Lender, pursuant to terms and conditions of the Loan
Documents, together with any filings and deliveries necessary in connection
therewith to protect and perfect the security interests of the Lender therein;
provided that the Borrower shall not, and no Subsidiary shall, be required to
execute or cause the execution of any guaranty or the pledge of any Capital
Securities held by such Person if a 956 Impact would result therefrom. The
Borrower will promptly notify the Lender of any subsequently acquired ownership
interest in real property and will provide the Lender with a description of such
real property, the acquisition date thereof and the purchase price therefor. In
addition, from time to time and to the extent necessary or advisable under the
laws of any jurisdiction outside the United States and to the extent no 956
Impact would result therefrom, each of the Borrower and each of the Subsidiaries
will, at its cost and expense, promptly secure the Obligations by pledging or
creating, or causing to be pledged or created, perfected Liens with respect to
such of its assets and properties as the Lender shall designate, it being agreed
that it is the intent of the parties that the Obligations shall be secured by,
among other things, substantially all the assets of the Borrower and the
Subsidiaries (including real property and personal property acquired subsequent
to the Closing Date); provided that notwithstanding the foregoing, any such
designation by the Lender shall be subject to customary exceptions, limitations
and exclusions consistent, as applicable, with those set forth in the Security
Agreement. Such Liens will be created under the Loan Documents and the
applicable law and shall be in form and substance satisfactory to the Lender,
and the Borrower and each of the Subsidiaries shall deliver or cause to be
delivered to the Lender all such instruments and documents (including mortgages,
legal opinions, title insurance policies and lien searches) as the Lender shall
reasonably request to evidence compliance with this Section.

SECTION 7.9 Obtaining of Permits, Etc. With respect to Products, each of the
Borrower and each of the Subsidiaries will obtain, maintain and preserve, and
take all necessary action to timely renew all Permits and accreditations which
are necessary in the proper conduct of its business except where the failure to
do so, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect.

SECTION 7.10 Product Licenses. The Borrower and each of the Subsidiaries shall
(i) maintain each Key Permit in, or file any notice or registration in, each
jurisdiction in which the Borrower or any of its Subsidiaries are required to
obtain any

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Key Permit or to file any notice or registration, in order to sell or distribute
the Products and (ii) promptly provide evidence of same to the Lender upon
request.

SECTION 7.11 Maintenance of Regulatory Authorizations, Contracts,  Intellectual
Property, Etc. With respect to the Products, each of the Borrower and each of
its Subsidiaries will (i) maintain in full force and effect all material
Regulatory Authorizations, contract rights, authorizations or other rights
necessary for the operations of its business; (ii) notify the Lender, promptly
after learning thereof, of any material product recalls, safety alerts,
corrections, withdrawals, marketing suspensions, removals or the like conducted,
to be undertaken or issued, by the Borrower, any of the Subsidiaries or their
respective suppliers whether or not at the request, demand or order of any
Governmental Authority or otherwise with respect to any Product, or any basis
for undertaking or issuing any such action or item; (iii) maintain in full force
and effect or pursue the prosecution of, as the case may be, and pay all costs
and expenses relating to, all material Intellectual Property owned or controlled
by the Borrower or any of the Subsidiaries, except, in the event that the
Borrower determines in its reasonable commercial judgment not to do so; (iv)
notify the Lender, promptly after learning thereof, of any material Infringement
or other violation by any Person of its material Intellectual Property and
aggressively pursue any such Infringement or other violation except in any
specific circumstances where the Borrower or any of its Subsidiaries determines
that it is not commercially reasonable to do so; (v) use commercially reasonable
efforts to pursue and maintain in full force and effect legal protection for,
and protect against Infringement with respect to, all material Intellectual
Property, including Patents, owned or controlled by the Borrower or any of the
Subsidiaries, except in the event that the Borrower determines in its reasonable
commercial judgment not to do so; and (vi) notify the Lender, promptly after
learning thereof, of any material claim by any Person that the conduct of the
Borrower’s or any of the Subsidiaries’ business (including the development,
manufacture, use, sale or other commercialization of any Product) Infringes in
any material respect any Intellectual Property of that Person and use
commercially reasonable efforts to resolve such claim, except when the Borrower
determines in its reasonable commercial judgment not to do so.

SECTION 7.12 Inbound Licenses; Product Agreements. Each of the Borrower and its
Subsidiaries will use commercially reasonable efforts to exclude from (i) any
material inbound licenses or covenants not to sue with respect to Intellectual
Property (other than over-the-counter or “open-source” software, or other
Intellectual Property that is generally and commercially available to the
public) and (ii) any material Product Agreements, in each case, entered into
after the Closing Date, any provisions that would prohibit or restrict such
license or agreement, or rights thereunder, from becoming subject to a security
interest in favor of the Lender.

SECTION 7.13 Cash Management. Each of the Borrower and its Subsidiaries will:

(a)      maintain a current and complete list of all accounts (of the type
initially set forth on Schedule 6.22) and promptly deliver any updates to such
list to the Lender;

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and, subject to the time periods set forth in Schedule 7.16, execute and
maintain an account control agreement for each such account (other than accounts
exclusively used for (x) payroll, payroll taxes and other employee wage and
benefit programs to or for the benefit of the Borrower’s or a Subsidiary’s
employees, which shall in no event hold in the aggregate more than the amount
reasonably expected to meet such payroll expenses for the following calendar
month, including bonuses and other payments to be paid within the following
calendar month (y) the receipt of receivables solely funded by Medicare or
Medicaid, which shall in no event hold in the [*] and whose total cash balances
shall be automatically swept to a Controlled Account (as defined below), on a
monthly basis and (z) assets that are subject to a Lien permitted pursuant to
Section 8.3 (c) or (m) (collectively, the “Excluded Accounts”)) in form and
substance reasonably acceptable to the Lender (each such account, a “Controlled
Account”); and

(b)      deposit promptly after the date of receipt thereof in accordance with
prudent business practices all cash, checks, drafts or other similar items of
payment relating to or constituting payments made in respect of any and all
accounts and other rights and interests into Controlled Accounts, except to the
extent permitted to be kept in Excluded Accounts.

SECTION 7.14 [Intentionally omitted]

SECTION 7.15 Product Agreements. The Borrower and its Subsidiaries will use
commercially reasonable efforts not to enter into any (i) amendment with respect
to any existing Product Agreement or (ii) new Product Agreement, in each case
that contains (a) any provision which restricts or penalizes a security interest
in, or the assignment of, any Product Agreements, upon the sale, merger or other
disposition of all or a material portion of a Product to which such Product
Agreement relates, or (b) any other provision that has or is likely to adversely
affect, in any material respect, the Lender’s rights hereunder.

SECTION 7.16 Post-Closing Covenant. The Borrower and its Subsidiaries will, as
promptly as practicable, and in any event within the time periods after the
Closing Date specified in Schedule 7.16 or such later date as the Lender agrees
to in writing and at its sole discretion, deliver the documents or take the
actions specified on Schedule 7.16. Notwithstanding anything in this Agreement
or in the other Loan Documents to the contrary, to the extent any representation
and warranty in any Loan Document would not be true solely because the actions
set forth on Schedule 7.16  were not taken as of the Closing Date, the
respective representation and warranty shall not be required to be true and
correct in all material respects until the time the respective action is taken
(or was required to be taken) in accordance with Schedule  7.16.

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* 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 PORTION.

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ARTICLE VIII
NEGATIVE COVENANTS

The Borrower covenants and agrees with the Lender that until the Termination
Date has occurred, the Borrower and the Subsidiaries will perform or cause to be
performed the obligations set forth below.

SECTION 8.1 Business Activities. None of the Borrower or any of its Subsidiaries
or any Permitted Joint Venture, will engage in any business activity except
those business activities engaged in on the date of this Agreement and any
reasonable extensions thereof or any activities reasonably related thereto;
provided that the foregoing shall not prohibit the Borrower or any Subsidiary
from developing any new products, services or technologies within or related to
its general fields of non-invasive genetic testing and prenatal health,
utilizing newly developed technologies in such fields or exploiting any existing
Products in new territories or for different purposes.

SECTION 8.2 Indebtedness. None of the Borrower or any of the Subsidiaries will
create, incur, assume or permit to exist any Indebtedness, other than:

(a)      Indebtedness in respect of the Obligations;

(b)      [Intentionally omitted]

(c)      Indebtedness existing as of the Closing Date which is identified in
Schedule 8.2(c);

(d)      unsecured Indebtedness in respect of performance, surety or appeal
bonds or any warranty or contractual service obligations, performance, surety,
statutory, appeal, bid or completion of performance guarantees or similar
obligations, in each case provided in the ordinary course of business in an
aggregate amount at any time outstanding not to exceed $[*];

(e)      Purchase Money Indebtedness and Capitalized Lease Liabilities, and
Refinancings thereof, in a principal amount not to exceed $[*] in the aggregate
outstanding at any time, and, without duplication, Contingent Liabilities
incurred in connection therewith;

(f)      Permitted Subordinated Indebtedness;

(g)      Indebtedness of any Subsidiary or the Borrower owing to the Borrower or
any Subsidiary;

(h)      other Indebtedness of the Borrower and the Subsidiaries in an aggregate
amount at any time outstanding not to exceed $[*];

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*  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 PORTION.

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(i)      Indebtedness and related guarantees incurred as a result of endorsing
negotiable instruments in the ordinary course of business;

(j)      [Intentionally omitted]

(k)      Indebtedness with respect to outstanding letters of credit posted in
the ordinary course of business, provided the outstanding principal amount of
such Indebtedness shall not exceed $[*] in the aggregate at any time;

(l)      Indebtedness in connection with corporate credit cards, purchasing
cards or bank card products in an aggregate principal amount at any time
outstanding not to exceed $[*];

(m)      Indebtedness in respect of any agreement providing for treasury,
depositary, or cash management services, including in connection with any
automated clearing house transfers of funds or any similar transactions,
securities settlements, foreign exchange contracts, assumed settlement, netting
services, overdraft protections and other cash management, intercompany cash
pooling and similar arrangements, in each case in the ordinary course of
business;

(n)      advances or deposits in the ordinary course of business from customers,
vendors or partners and not constituting Indebtedness for borrowed money;

(o)      workers’ compensation claims, payment obligations in connection with
health, disability or other types of social security benefits, unemployment or
other insurance obligations, reclamation and statutory obligations, in each case
incurred in the ordinary course of Borrower’s or its Subsidiaries’ business;

(p)      Indebtedness incurred in an aggregate principal amount of up to $[*]
for the sole purposes of giving effect to and supporting a certain [*] agreement
with a Third Party previously disclosed to the Lender, and the terms of such
Indebtedness and any intercreditor or subordination agreement with the Lender
relating to such Indebtedness shall each be in form and substance satisfactory
to the Lender; and

(q)      to the extent constituting Indebtedness, customary indemnification and
purchase price adjustments or similar obligations incurred or assumed in
connection with Investments and Dispositions otherwise permitted hereunder.

provided that, no Indebtedness otherwise permitted by clauses (c) (to the extent
of drawings thereunder after Closing Date), (e), (f), (h), (j) or (p) shall be
assumed, created or otherwise incurred if a Default has occurred and is then
continuing or would result therefrom.

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*  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 PORTION.

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SECTION 8.3 Liens. None of the Borrower or any of the Subsidiaries will create,
incur, assume or permit to exist any Lien upon any of its property (including
Capital Securities of any Person), revenues or assets, whether now owned or
hereafter acquired, except:

(a)      Liens securing payment of the Obligations;

(b)      [Intentionally omitted]

(c)      Liens existing as of the Closing Date and disclosed in Schedule 8.3(c) 
securing Indebtedness described in clause (c) of Section 8.2; provided that, no
such Lien shall encumber any additional property and the amount of Indebtedness
secured by such Lien is not increased from that existing on the Closing Date (as
such Indebtedness may have been permanently reduced subsequent to the Closing
Date);

(d)      Liens securing payment of Permitted Subordinated Indebtedness that are
(i) subordinate to the Liens securing payment of the Obligations and all other
Indebtedness owing from the Borrower or the Subsidiaries to the Lender and (ii)
subject to a written subordination agreement satisfactory to the Lender in its
sole discretion;

(e)      Liens securing Indebtedness of the Borrower or the Subsidiaries
permitted pursuant to Section 8.2(e) (provided that (i) such Liens shall be
created within 180 days of the acquisition of the assets financed with such
Indebtedness and (ii) such Liens do not at any time encumber any property other
than the property so financed;

(f)      Liens in favor of carriers, warehousemen, mechanics, materialmen and
landlords granted in the ordinary course of business for amounts not overdue or
being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on its
books;

(g)      Cash deposits made in the ordinary course of business in connection
with worker’s compensation, unemployment insurance or other forms of
governmental insurance or benefits, or to secure performance of tenders,
statutory obligations, bids, leases or other similar obligations (other than for
borrowed money) entered into in the ordinary course of business or to secure
obligations on surety and appeal bonds or performance bonds;

(h)      judgment Liens in existence for less than 60 days after the entry
thereof or with respect to which execution has been stayed or the payment of
which is covered in full (subject to a customary deductible) by insurance
maintained with responsible insurance companies and which do not otherwise
result in an Event of Default under Section 9.1(f);

(i)      easements, rights-of-way, zoning restrictions, minor defects or
irregularities in title and other similar encumbrances not interfering in any
material respect with the value or use of the property to which such Lien is
attached;

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(j)      Liens for Taxes not at the time delinquent or thereafter payable
without penalty or being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have
been set aside on its books;

(k)      licenses and/or sublicenses of Intellectual Property otherwise
permitted under this Agreement or the other Loan Documents, and restrictions
under licenses of Intellectual Property entered into in the ordinary course of
business pursuant to which the Borrower or any of its Subsidiaries is a
licensee;

(l)      banker’s liens, rights of setoff and Liens in favor of financial
institutions incurred made in the ordinary course of business arising in
connection with the Borrower’s or any Subsidiary’s deposit accounts or
securities accounts held at such institutions to secure solely payment of fees
and similar costs and expenses and provided such accounts are maintained in
compliance with Section 7.13(a) hereof;

(m)      Liens on cash and Cash Equivalent Investments (and/or cash collateral)
not to exceed $[*] in the aggregate securing Indebtedness permitted under
Section 8.2(k);

(n)      licenses or sublicenses, leases or subleases of property granted in the
ordinary course of the Borrower’s or its Subsidiary’s business;

(o)      the interests of lessors under operating leases;

(p)      Liens in favor of customs and revenue authorities arising as a matter
of law to secure payment of custom duties that are promptly paid on or before
the date they become due;

(q)      Liens on insurance proceeds securing the payment of financed insurance
premiums that are promptly paid on or before the date they become due (provided
that such Liens extend only to such insurance proceeds and not to any other
property or assets); and

(r)      other Liens securing Indebtedness or other obligations of the Borrower
and the Subsidiaries in an aggregate amount at any time outstanding not to
exceed $[*];

The Lender agrees to execute and deliver such collateral subordination
agreements and

related documents as reasonably requested of it to confirm the priority of the
Liens permitted pursuant to clauses (e) and (m) of Section 8.3.

SECTION 8.4 Minimum Net Revenues. The Borrower shall not permit the Net Revenue
for any Fiscal Quarter to be less than $[*]. In the event the Net Revenue for
any

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* 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 PORTION.

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Fiscal Quarter is less than $[*], the Borrower may cure such default by
prepaying the Loans in a principal amount equal to $[*] minus the actual Net
Revenue for such Fiscal Quarter, together with all accrued and unpaid interest
thereon and the applicable Repayment Premium; provided, that the Borrower may
exercise such cure right no more than [*] times in any Fiscal Year and no more
than [*] times during the term of this Agreement. To make such prepayment, the
Borrower shall deliver an irrevocable written notice to the Lender no later than
the date for delivery of the Compliance Certificate applicable to such Fiscal
Quarter pursuant to Section 7.1(d), and such notice shall specify the date of
prepayment (which shall be a Business Day and in no event be later than three
Business Days after the date of such notice). Notwithstanding anything to the
contrary in Article IX or in any other Loan Document, after receipt of written
notice from the Borrower of the Borrower’s intention to cure a default under
this Section 8.4 and (a) until the date of prepayment, the Lender shall not have
any right to declare all or any portion of the Commitment to make Loans
permanently terminated, declare all or any portion of the unpaid principal
amount of any outstanding Loans, interest accrued and unpaid thereon, and all
amounts owing or payment hereunder or under the Loan Documents immediately due
and payable, or take any other action it is otherwise entitled to take under the
Loan Documents or applicable law (including any right to foreclose on or take
possession of Collateral) solely on the basis of an Event of Default having
occurred and being continuing under Section 9.1 due to failure by the Borrower
to comply with the financial covenant set forth in this Section 8.4; provided,
however, if such an Event of Default has occurred and is continuing during such
period and unless and until a prepayment is made in accordance with this Section
8.4, the Lender shall not be required to advance any Loan under this Agreement,
and (b) upon the making of a prepayment in accordance with this Section 8.4, any
Default or Event of Default arising solely due to the failure by the Borrower to
comply with the financial covenant set forth in this Section 8.4 shall be deemed
to be cured as of the last day of the Fiscal Quarter and solely for the Fiscal
Quarter that is the subject of such prepayment.

SECTION 8.5 Investments. None of the Borrower or any of the Subsidiaries will
purchase, make, incur, assume or permit to exist any Investment in any other
Person, except:

(a)      Investments existing on the Closing Date and identified in Schedule
8.5(a);

(b)      Cash Equivalent Investments;

(c)      Investments received in connection with the bankruptcy or
reorganization of, or settlement of delinquent accounts and disputes with,
customers and suppliers, in each case in the ordinary course of business;

(d)      Investments consisting of any deferred portion of the sales price
received by the Borrower or any of the Subsidiaries in connection with any
Disposition permitted under Section 8.8;

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* 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 PORTION.

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(e)      Investments constituting (i) accounts receivable arising, (ii) trade
debt granted, or (iii) deposits made in connection with the purchase price of
goods or services, in each case in the ordinary course of business;

(f)      Investments consisting of travel advances and employee relocation
loans, and other employee loans and advances in the ordinary course of business,
not to exceed $[*] in the aggregate outstanding at any given time;

(g)      Investments consisting of loans to employees, officers, or directors
relating to the purchase of equity securities of the Borrower or its
Subsidiaries pursuant to employee stock purchase plans or agreements approved by
the Borrower’s Board of Directors, not to exceed the aggregate amount of $[*] in
any Fiscal Year;

(h)      Investments permitted pursuant to the definition of Permitted Joint
Ventures;

(i)      Investments of the Borrower or any Subsidiary in the Borrower or any
Guarantor;

(j)      Permitted Acquisitions and Investments acquired as a result of a
Permitted Acquisition to the extent that such Investments were not made in
contemplation of or in connection with such Permitted Acquisition and were in
existence prior to the date of such Permitted Acquisition;

(k)      Investments in Subsidiaries that are not Guarantors, in an amount not
to exceed, together with Investments in Permitted Joint Ventures, $[*];

(l)      other Investments in an amount not to exceed $[*] in the aggregate
outstanding at any given time;

(m)      any Investment which when made complies with the requirements of the
definition of the term “Cash Equivalent Investment” may continue to be held
notwithstanding that such Investment if made thereafter would not comply with
such requirements;

(n)      Investments consisting of security deposits with utilities, landlords
and other like Persons made in the ordinary course of business; and

(o)      Investments consisting of the endorsement of negotiable instruments for
deposit or collection or similar transactions in the ordinary course of
business.

SECTION 8.6 Restricted Payments, Etc. Without the prior written consent of the
Lender, none of the Borrower or any of the Subsidiaries will declare or make a
Restricted Payment, or make any deposit for any Restricted Payment, other than

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* 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 PORTION.

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(a)      Restricted Payments made by the Borrower or Subsidiaries to the
Borrower or any Subsidiaries;

(b)      the declaration and payment of dividends by the Borrower with respect
to its capital stock payable solely in additional shares of its Capital
Securities;

(c)      payments in respect of the repurchase of Capital Securities from former
officers, directors, employees, consultants or other holders of Capital
Securities of the Borrower and its Subsidiaries in connection with the
termination of such Persons’ services or pursuant to stock repurchase plans or
agreements, employee stock option agreements, restricted stock agreements,
equity incentive plans or other similar agreements or plans, not to exceed an
aggregate amount of $[*] in any Fiscal Year; and

(d)      the conversion of convertible securities into Qualified Capital
Securities pursuant to the terms of such convertible securities or otherwise in
exchange thereof.

SECTION 8.7 Consolidation, Merger; Permitted Acquisitions, Etc. None of the
Borrower or any of the Subsidiaries will liquidate or dissolve, consolidate
with, or merge into or with, any other Person, or purchase or otherwise acquire
all or substantially all of the assets of any Person (or any division thereof),
other than in connection with a Permitted Acquisition, except that, so long as
no Event of Default has occurred and is continuing (or would occur), any
Subsidiary may liquidate or dissolve voluntarily into, and may merge with and
into, the Borrower or any Subsidiary that is a Guarantor; and provided further,
in connection with any Permitted Acquisition, the Borrower or any Subsidiary of
the Borrower may merge into or consolidate with any other Person or permit any
other Person to merge into or consolidate with it, so long as (i) the Person
surviving such merger with any Subsidiary shall be a direct or indirect
Wholly-Owned Subsidiary of the Borrower and a Guarantor, and (ii) in the case of
any such merger to which the Borrower is a party, the Borrower is the surviving
Person.

SECTION 8.8 Permitted Dispositions. None of the Borrower or any of the
Subsidiaries will Dispose of any of its assets (including accounts receivable
and Capital Securities of Subsidiaries) to any Person in one transaction or
series of transactions unless such Disposition is:

(a)      inventory, and non-exclusive licenses of Intellectual Property in
connection therewith, or obsolete, damaged, worn out or surplus property
(including fixed assets no longer used or useful in the business of the Borrower
and its Subsidiaries at the time of such Disposition) Disposed of in the
ordinary course of its business;

(b)      a transaction permitted by Section 8.6 or Section 8.7;

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* 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 PORTION.

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(c)      from the Borrower or a Subsidiary to the Borrower or another Guarantor
(provided that the transferee takes such actions as the Lender may reasonably
request to ensure the perfection and priority of the Liens in favor of the
Lender over such transferred assets);

(d)      a license for the use of the Intellectual Property of the Borrower, or
any of its Subsidiaries which does not result in a legal transfer of title of
the licensed Intellectual Property but that may be exclusive in respects other
than territory, including but not limited to field of use, and that may be
exclusive as to territory only as to discrete geographical areas outside of the
United States;

(e)      pursuant to the definition of Permitted Joint Venture;

(f)      any Disposition of cash that is not otherwise prohibited by the Loan
Documents;

(g)      a disposition consisting of the sale, transfer, assignment or other
disposition of unpaid and overdue accounts receivable in connection with the
collection, compromise or settlement thereof in the ordinary course of business
and not as part of a financing transaction;

(h)      a disposition of property to the extent that (i) such property is
exchanged for credit against the purchase price of similar replacement property
or (ii) the proceeds (determined on an after-tax basis) of such disposition are
applied to the purchase price of such replacement;

(i)      a disposition resulting from Casualty Events; or

(j)      other Dispositions that are on fair market value terms in an
arms-length transaction; provided that (A) in no event shall the aggregate
cumulative amount of cash and noncash consideration payable in connection with
Dispositions pursuant to this clause (j) exceed $[*], (B) not less than [*]% of
the aggregate sales price from any one such Disposition shall be paid in cash at
the closing of such Disposition or within 30 days thereafter, (C) immediately
prior to and immediately after giving effect to any such Disposition, there does
not exist a Default, and (D) in connection with any Disposition permitted by
this clause (j) where the cash and noncash consideration (whether in one or a
series of transactions) exceeds $[*], an Authorized Officer of the Borrower
delivers a certificate to the Lender to the effect that each of clauses (A)
through C) of this definition has been satisfied.

SECTION 8.9 Modification of Certain Agreements. None of the Borrower or any of
the Subsidiaries will consent to any amendment, supplement, waiver or other
modification of, or enter into any forbearance from exercising any rights with
respect

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* 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 PORTION.

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to, the terms or provisions contained in (i) any Organic Documents of the
Borrower or any of the Subsidiaries, if the result would have a adverse effect
(other than immaterial effects) on the rights or remedies of the Lender under
this Agreement or any Loan Document, or (ii) any agreement governing any
Permitted Subordinated Indebtedness, if the result would shorten the maturity
date thereof or advance the date on which any cash payment is required to be
made thereon or would otherwise change any terms thereof in a manner adverse
(other than immaterial effects) to the Lender.

SECTION 8.10 Transactions with Affiliates. None of the Borrower or any of the
Subsidiaries will enter into or cause or permit to exist any arrangement,
transaction or contract (including for the purchase, lease or exchange of
property or the rendering of services) with any of its Affiliates, unless such
arrangement, transaction or contract is:

(a)      between or among the Borrower or any of its Subsidiaries;

(b)      provides normal and reasonable compensation, benefits, reimbursement of
expenses and indemnification to, and other employment arrangements with,
officers, directors and employees;

(c)      is a cash Investment in the Borrower or consists of the issuance of
Capital Securities to Affiliates in exchange for cash;

(d)      is between or among the Borrower or any of its Subsidiaries on the one
hand and a Permitted Joint Venture on the other hand and is not otherwise
prohibited hereunder;

(e)      Investments permitted pursuant to Sections 8.5(f) or (g);

(f)      a transaction listed on Schedule 6.19; or

(g)      (i) is on fair and reasonable terms no less favorable to the Borrower
or any Subsidiary than it could obtain in an arm’s-length transaction with a
Person that is not one of its Affiliates and (ii) is of the kind which would be
entered into by a prudent Person in its position with a Person that is not one
of its Affiliates.

SECTION 8.11 Restrictive Agreements, Etc. None of the Borrower or any of the
Subsidiaries will enter into any agreement prohibiting (i) the creation or
assumption of any Lien upon its properties, revenues or assets, whether now
owned or hereafter acquired, (ii) the ability of the Borrower or any of the
Subsidiaries to amend or otherwise modify any Loan Document, or (iii) the
ability of the Borrower or any Subsidiary to make any payments, directly or
indirectly, to the Borrower, including by way of dividends, advances, repayments
of loans, reimbursements of management and other intercompany charges, expenses
and accruals or other returns on investments. The foregoing prohibitions shall
not apply to restrictions contained (x) in any Loan Document, (y) in the case of
clause (i), (A) contained in any agreement governing any Indebtedness permitted
by clauses (c), (e), or (k) of Section 8.2 as to the assets financed with the
proceeds of such Indebtedness and secured by Liens permitted by

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clauses (e) or (k) of Section 8.3, or (B) contained in any agreement governing
an Indebtedness permitted by clause (j) of Section 8.2, or (C) with respect to
restrictions on assignment customarily found in leases, licenses and other
contracts, or (z) in the case of clause (iii), any Indebtedness permitted by
clauses (e) or (f) of Section 8.2.

SECTION 8.12 Sale and Leaseback. None of the Borrower or any of the Subsidiaries
will directly or indirectly enter into any agreement or arrangement providing
for the sale or transfer by it of any property (now owned or hereafter acquired)
to a Person and the subsequent lease or rental of such property or other similar
property from such Person (other than Tangible Fixed Assets).

SECTION 8.13 Change in Name, Location or Executive Office or
Executive  Management; Change in Fiscal Year. None of the Borrower or any of the
Subsidiaries will:

(a)      without 20 days’ prior written notice to the Lender, (i) change its
legal name or any trade name used to identify it in the conduct of its business
or ownership of its properties, (ii) relocate its chief executive office,
principal place of business or any office in which it maintains books or records
relating to its business (including the establishment of any new office or
facility), or (iii) change its federal taxpayer identification number or
organizational number (or equivalent);

(b)      replace its chief executive officer or chief financial officer without
written notification to the Lender within 20 days thereafter;

(c)      change its jurisdiction of organization or legal structure; or

(d)      change its Fiscal Year or any of its Fiscal Quarters.

SECTION 8.14 Benefit Plans and Agreements. Except as would not reasonably be
expected to, individually or in the aggregate, result in Material Adverse
Effect, none of the Borrower or any Subsidiary will (a) become the sponsor of,
contribute to, be required to contribute to or otherwise incur actual or
potential liability with respect to, any Benefit Plan, (b) cause any “employee
benefit plan,” as defined in section 3(3) of ERISA, that (i) provides retirement
benefits, (ii) is sponsored by the Borrower, any Subsidiary, or, with respect to
any such plan that is subject to section 412 of the Code, section 302 of ERISA
or Title IV of ERISA, any of their ERISA Affiliates, and (iii) is intended to be
tax-qualified under section 401(a) of the Code to cease to be tax qualified, (c)
cause the assets of any tax-qualified retirement plan described in the preceding
clause (ii) to become invested in Capital Securities of the Borrower or (d)
cause any “employee benefit plan” (as defined in section 3(3) of ERISA)
sponsored, maintained, contributed to or required to be contributed to by the
Borrower or any Subsidiary to fail to comply with its terms and applicable law.

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ARTICLE IX
EVENTS OF DEFAULT

SECTION 9.1 Listing of Events of Default. Each of the following events or
occurrences described in this Article shall constitute an “Event of Default”.

(a)      Non-Payment of Obligations. The Borrower shall default in the payment
or prepayment when due of (i) any principal of or interest on any Loan, or (ii)
any fee described in Article III or any other monetary Obligation, and in the
case of clause (ii)  such default shall continue unremedied for a period of
three Business Days after such amount was due.

(b)      Breach of Warranty. Any representation or warranty made or deemed to be
made by the Borrower or any of the Subsidiaries in any Loan Document (including
any certificates delivered pursuant to Article V) is or shall be incorrect when
made or deemed to have been made in any material respect.

(c)      Non-Performance of Certain Covenants and Obligations. The Borrower or
any Subsidiary shall default in the due performance or observance of any of its
obligations under (i) Section 7.1(b), (c), (d), (e), (j), or (k), Section 7.7,
or Article VIII, or (ii) any clause under Section 7.1 other than those
referenced in the foregoing clause (i) and such default shall continue
unremedied for a period of 10 days after the earlier to occur of (A) notice
thereof given to the Borrower by the Lender or (B) the date on which the
Borrower has knowledge of such default.

(d)      Non-Performance of Other Covenants and Obligations. The Borrower or any
Subsidiary shall default in the due performance and observance of any other
covenant, obligation or agreement contained in any Loan Document executed by it,
and such default shall continue unremedied for a period of 30 days after the
earlier to occur of (i) notice thereof given to the Borrower by the Lender or
(ii) the date on which the Borrower has knowledge of such default.

(e)      Default on Other Indebtedness. A default shall occur in the payment of
any amount when due (subject to any applicable grace period), whether by
acceleration or otherwise, of any principal or stated amount of, or interest or
fees on, any Indebtedness of the Borrower or any of the Subsidiaries having a
principal or stated amount, individually or in the aggregate, in excess of $[*],
or a default shall occur in the performance or observance of any obligation or
condition with respect to such Indebtedness if the effect of such default is to
accelerate the maturity of any such Indebtedness or such default shall continue
unremedied for any applicable period of time sufficient to permit the holder or
holders of such Indebtedness, or any trustee or agent for such holders, to cause
or declare such Indebtedness to become due and payable or to require such
Indebtedness to be prepaid, redeemed, purchased or defeased, or require an offer
to purchase or defease such Indebtedness to be made, prior to its expressed
maturity.

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* 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 PORTION.

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(f)      Judgments. Any judgment or order for the payment of money individually
or in the aggregate in excess of $[*] (exclusive of any amounts fully covered by
insurance (less any applicable deductible) and as to which the insurer has
acknowledged its responsibility to cover such judgment or order) shall be
rendered against the Borrower or any of the Subsidiaries and such judgment shall
not have been vacated or discharged or stayed or bonded pending appeal or paid
within 60 days after the entry thereof or enforcement proceedings shall have
been commenced by any creditor upon such judgment or order.

(g)      Change in Control. Any Change in Control shall occur.

(h)      Bankruptcy, Insolvency, Etc. The Borrower or (except as permitted
pursuant to Section 8.7) any of the Subsidiaries shall

(i)      become insolvent or generally fail to pay, or admit in writing its
inability or unwillingness generally to pay, debts as they become due;

(ii)      apply for, consent to, or acquiesce in the appointment of a trustee,
receiver, sequestrator or other custodian for any substantial part of the
property of any thereof, or make a general assignment for the benefit of
creditors;

(iii)      in the absence of such application, consent or acquiescence in or
permit or suffer to exist the appointment of a trustee, receiver, sequestrator
or other custodian for a substantial part of the property of any thereof, and
such trustee, receiver, sequestrator or other custodian shall not be discharged
within 60 days; provided that, the Borrower and each Subsidiary hereby expressly
authorizes the Lender to appear in any court conducting any relevant proceeding
during such 60-day period to preserve, protect and defend its rights under the
Loan Documents;

(iv)      permit or suffer to exist the commencement of any bankruptcy,
reorganization, debt arrangement or other case or proceeding under any
bankruptcy or insolvency law or any dissolution, winding up or liquidation
proceeding, in respect thereof, and, if any such case or proceeding is not
commenced by the Borrower or any Subsidiary, such case or proceeding shall be
consented to or acquiesced in by the Borrower or such Subsidiary, as the case
may be, or shall result in the entry of an order for relief or shall remain for
60 days undismissed; provided that, the Borrower and each Subsidiary hereby
expressly authorizes the Lender to appear in any court conducting any such case
or proceeding during such 60-day period to preserve, protect and defend its
rights under the Loan Documents; or

(v)      take any action authorizing, or in furtherance of, any of the
foregoing.

(i)      Impairment of Security, Etc. Any Loan Document shall (except in
accordance with its terms) terminate or the terms thereof shall cease to be the
legally valid, binding and enforceable obligation of the Borrower or any
Subsidiary thereto; the

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

*    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 PORTION.

-  59  -

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

 

Borrower or any Subsidiary shall contest in any manner such validity, binding
nature or enforceability; or, except as permitted under any Loan Document, any
Lien securing any Obligation shall, in whole or in any material part, cease to
be a perfected first priority Lien.

(j)      Key Permit Events. Any Key Permit or any of the Borrower’s or any
Subsidiary’s rights or interests thereunder is terminated or amended in any
manner that could reasonably be expected to result in a Material Adverse Effect.

(k)      Material Adverse Change. [*]

(l)      Regulatory Matters. If any of the following occurs and has had or would
reasonably be expected to have or result in a Material Adverse Effect: (i) the
FDA, CMS, EMA or any other Governmental Authority (A) issues a letter or other
communication asserting that any Product lacks a required Regulatory
Authorization or (B) initiates enforcement action against, or issues a warning
letter with respect to, the Borrower or any of the Subsidiaries, or any of their
Products or the manufacturing facilities therefor, that causes the Borrower or
such Subsidiary to discontinue marketing or withdraw any of its material
Products, or causes a material delay in the manufacture or offering of any of
its material Products, which discontinuance, withdrawal or delay could
reasonably be expected to last for more than three months; (ii) a recall; or
(iii) the Borrower or any of its Subsidiaries enters into a settlement agreement
(other than any settlement agreement pertaining to a matter and on terms
consistent with those previously disclosed to the Lender) with the FDA, CMS or
any other Governmental Authority.

SECTION 9.2 Action if Bankruptcy. If any Event of Default described in clauses
(i) through (iv) of Section 9.1(h) with respect to the Borrower shall occur, the
Commitments (if not theretofore terminated) shall automatically terminate and
the outstanding principal amount of the Loans and all other Obligations shall
automatically be and become immediately due and payable, without notice or
demand to any Person.

SECTION 9.3 Action if Other Event of Default. If any Event of Default (other
than any Event of Default described in clauses (i) through (iv) of Section
9.1(h)) shall occur for any reason, whether voluntary or involuntary, and be
continuing, the Lender may, by notice to the Borrower declare all or any portion
of the outstanding principal amount of the Loans and other Obligations to be due
and payable and/or the Commitments (if not theretofore terminated) to be
terminated, whereupon the full unpaid amount of the Loans and other Obligations
which shall be so declared due and payable shall be and become immediately due
and payable, without further notice, demand or presentment, and the Commitments
shall terminate.

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

* 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 PORTION.

-  60  -

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

 

ARTICLE X
MISCELLANEOUS PROVISIONS

SECTION 10.1 Waivers, Amendments, Etc. The provisions of each Loan Document may
from time to time be amended, modified or waived, if such amendment,
modification or waiver is in writing and consented to by the Lender and the
Borrower.

No failure or delay on the part of the Lender in exercising any power or right
under any Loan Document shall operate as a waiver thereof, nor shall any single
or partial exercise of any such power or right preclude any other or further
exercise thereof or the exercise of any other power or right. No notice to or
demand on the Borrower or any of the Subsidiaries in any case shall entitle it
or any of them to any notice or demand in similar or other circumstances. No
waiver or approval by the Lender under any Loan Document shall, except as may be
otherwise stated in such waiver or approval, be applicable to subsequent
transactions. No waiver or approval hereunder shall require any similar or
dissimilar waiver or approval thereafter to be granted hereunder.

SECTION 10.2 Notices; Time. All notices and other communications provided under
any Loan Document shall be in writing or by facsimile or by email and addressed,
delivered or transmitted, if to the Borrower or the Lender, to the applicable
Person at its address or facsimile number or email address set forth on Schedule
10.2  hereto, or at such other address or facsimile number as may be designated
by such party in a notice to the other parties. Any notice, if mailed and
properly addressed with postage prepaid or if properly addressed and sent by
pre-paid courier service, shall be deemed given when received; any notice, if
transmitted by facsimile, shall be deemed given when the confirmation of
transmission thereof is received by the transmitter; and any notice, if
transmitted by email, shall be deemed given when transmitted if transmitted
during normal business hours on a Business Day and shall be deemed given at the
opening of business on the subsequent Business Day if transmitted after normal
business hours. Documents required to be delivered pursuant to Section 7.1 may
be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date on which (i) the Borrower posts such documents, or
provides a link thereto on the Borrower’s website or the Internet at the
following website address: [*], or (ii) such documents are posted on the
Borrower’s behalf on an Internet or intranet website, if any, to which the
Lender has access (whether a commercial or third-party website), and in each
case an email with a link to such posting has been provided to the Lender’s
email addresses set forth on Schedule 10.2  heretofore. Unless otherwise
indicated, all references to the time of a day in a Loan Document shall refer to
New York City time.

SECTION 10.3 Payment of Costs and Expenses. [*]

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

* 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 PORTION.

-  61  -

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

 

(a)      [*]; and

(b)      [*].

The Borrower further agrees to pay, and to hold the Lender harmless from all
liability for, any stamp or other taxes which may be payable in connection with
the execution or delivery of each Loan Document, the Loans or the issuance of
the Note. The Borrower also agrees to reimburse the Lender upon demand for all
reasonable out-of-pocket expenses (including reasonable attorneys’ fees and
legal expenses of counsel to the Lender) incurred by the Lender in connection
with (x) the negotiation of any restructuring or “work-out” with the Borrower,
whether or not consummated, of any Obligations and (y) the enforcement of any
Obligations.

SECTION 10.4 Indemnification. In consideration of the execution and delivery of
this Agreement by the Lender, the Borrower hereby indemnifies, agrees to defend,
exonerates and holds the Lender and each of its officers, directors, employees
and agents (collectively, the “Indemnified Parties”) free and harmless from and
against any and all actions, causes of action, suits, losses, costs,
liabilities, obligations and damages, and expenses incurred in connection
therewith (irrespective of whether any such Indemnified Party is a party to the
action for which indemnification hereunder is sought), including reasonable
attorneys’ and professionals’ fees and disbursements, whether incurred in
connection with actions between the parties hereto or between the parties hereto
and third parties (collectively, the “Indemnified Liabilities”), including,
without limitation, Indemnified Liabilities arising out of or relating to (i)
the entering into and performance of any Loan Document by any of the Indemnified
Parties (including any action brought by or on behalf of the Borrower as the
result of any determination by the Lender pursuant to Article V not to fund any
Loan as a consequence of the Borrower’s failure to satisfy the conditions set
forth therein), and (ii) any Environmental Liability; provided that the Borrower
shall have no obligation or liability under this Section 10.4 with respect to
any Indemnified Liabilities that arise from or are the direct result of an
Indemnified Party’s gross negligence or willful misconduct. If and to the extent
that the foregoing indemnification may be unenforceable for any reason, the
Borrower agrees to make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable
law.

SECTION 10.5 Survival. The obligations of the Borrower under Section 4.1,
Section 4.2, Section 4.3, Section 10.3 and Section 10.4, shall in each case
survive any assignment by the Lender and the occurrence of the Termination Date.
The representations and warranties made by the Borrower in each Loan Document
shall survive the execution and delivery of such Loan Document.

SECTION 10.6 Severability. Any provision of any Loan Document which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of such Loan
Document or affecting the validity or enforceability of such provision in any
other jurisdiction.

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

* 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 PORTION.

-  62  -

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

 

SECTION 10.7 Headings. The various headings of each Loan Document are inserted
for convenience only and shall not affect the meaning or interpretation of such
Loan Document or any provisions thereof.

SECTION 10.8 Execution in Counterparts, Effectiveness, Etc.. This Agreement may
be executed by the parties hereto in several counterparts, each of which shall
be an original and all of which shall constitute together but one and the same
agreement. This Agreement shall become effective when counterparts hereof
executed on behalf of the Borrower and the Lender, shall have been received by
the Lender. Delivery of an executed counterpart of a signature page to this
Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement. The words
“execution,” “signed,”

“signature,” and words of like import in this Agreement and any Loan Document
shall be deemed to include electronic signatures or the keeping of records in
electronic form, each of which shall be of the same legal effect, validity or
enforceability as a manually executed signature or the use of a paper-based
recordkeeping system, as the case may be, to the extent and as provided for in
any applicable law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act,
or any other similar state laws based on the Uniform Electronic Transactions
Act.

SECTION 10.9 Governing Law; Entire Agreement. EACH LOAN DOCUMENT AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR
OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING FOR
SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE
STATE OF NEW YORK). The Loan Documents constitute the entire understanding among
the parties hereto with respect to the subject matter thereof and supersede any
prior agreements, written or oral, with respect thereto.

SECTION 10.10 Successors and Assigns. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns; provided that, the Borrower may not assign or transfer its rights
or obligations hereunder without the consent of the Lender; provided, further,
that the Lender may not assign or transfer its rights or obligations hereunder
or under the other Loan Documents to a Competitor of the Borrower without the
prior written consent of the Borrower.

SECTION 10.11 Other Transactions. Nothing contained herein shall preclude the
Lender, from engaging in any transaction, in addition to those contemplated by
the Loan Documents, with the Borrower or any of its Affiliates in which the
Borrower or such Affiliate is not restricted hereby from engaging with any other
Person.

-  63  -

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

 

SECTION 10.12 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, ANY LOAN DOCUMENT, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN)
OR ACTIONS OF THE LENDER OR THE BORROWER IN CONNECTION HEREWITH OR THEREWITH
SHALL BE BROUGHT AND MAINTAINED IN THE COURTS OF THE BOROUGH OF MANHATTAN IN THE
CITY OF NEW YORK IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT, ANY SUIT SEEKING
ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE
LENDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR
OTHER PROPERTY MAY BE FOUND. EACH OF THE BORROWER AND THE LENDER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR
NOTICES SPECIFIED IN SECTION 10.2. EACH OF THE BORROWER AND THE LENDER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT
ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT EITHER THE BORROWER OR THE LENDER HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY
FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH
SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION
OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER AND THE
LENDER, EACH ON ITS OWN BEHALF, HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT
PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN
DOCUMENTS.

SECTION 10.13 Waiver of Jury Trial. THE LENDER AND THE BORROWER HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED
BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, EACH LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF THE LENDER OR THE BORROWER IN CONNECTION THEREWITH.
THE BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE LENDER ENTERING INTO THE LOAN DOCUMENTS.

-  64  -

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

 

SECTION 10.14 Confidential Information. Subject to the provisions of Section
10.15, at all times prior to the fifth anniversary of the Termination Date, the
Receiving Party shall keep confidential and shall not publish or otherwise
disclose any Confidential Information furnished to it by the Disclosing Party,
except to those of the Receiving Party’s employees, advisors or consultants who
have a need to know such information to assist such Party in the performance of
such Party’s obligations or in the exercise of such Party’s rights hereunder and
who are subject to obligations of confidentiality consistent with these
provisions (collectively, “Recipients”). Notwithstanding anything to the
contrary set forth herein, (a) the Lender may disclose this Agreement and the
terms and conditions hereof and any information related hereto, other than to
any Competitor of the Borrower or any of its Subsidiaries, to (i) its
Affiliates, (ii) potential and actual assignees of any of the Lender’s rights
hereunder and (iii) potential and actual investors in, or lenders to, the Lender
(including, in each of the foregoing cases, such Person’s employees, advisors or
consultants); provided that in each case, each such Recipient shall be subject
to reasonable obligations of confidentiality; and (b) the Borrower may disclose
this Agreement and the terms and conditions hereof and information related
hereto, to potential or actual permitted acquirers or assignees, collaborators
and other (sub)licensees, permitted subcontractors, investment bankers,
investors, lenders (including, in each of the foregoing cases, such Person’s
employees, advisors or consultants who have a need to receive and review such
information); provided that in each case, each such Recipient shall be subject
to reasonable obligations of confidentiality. In addition to the foregoing, the
Receiving Party may disclose Confidential Information belonging to the
Disclosing Party (including the Loan Documents and the terms and conditions
thereof) to the extent (and only to the extent) such disclosure is reasonably
necessary in order to comply with applicable laws (including any securities law
or regulation or the rules of a securities exchange) and with judicial process,
if in the reasonable opinion of the Receiving Party’s counsel, such disclosure
is necessary for such compliance, provided that the Receiving Party (x) will
only disclose those portions of the Confidential Information that are necessary
or required to be so disclosed, (y) to the extent legally permissible, will
notify the Disclosing Party of the Receiving Party’s intent to make any
disclosure pursuant thereto, and (z) to the extent reasonably practicable, the
Receiving Party shall provide such notice in advance of the disclosure so as to
allow the Disclosing Party an opportunity to seek (at the Disclosing Party’s
sole expense) a protective order or other appropriate remedy; provided, however,
that no such notice will be required in respect of disclosures of Confidential
Information to regulatory authorities having or claiming to have jurisdiction
over the Receiving Party in connection with routine regulatory examinations. In
the event that no such protective order or other remedy is obtained or that the
Disclosing Party waives compliance with the provisions hereof, the Receiving
Party and its representatives may disclose such Confidential Information as may
be required or requested pursuant to such laws or judicial process.

SECTION 10.15 Exceptions to Confidentiality. The Receiving Party’s obligations
set forth in this Agreement shall not extend to any Confidential Information of
the Disclosing Party:

-  65  -

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

 

(a)      that is or hereafter becomes part of the public domain (other than as a
result of a disclosure by the Receiving Party or its Recipients in violation of
this Agreement);

(b)      that is received from a Third Party without restriction on disclosure
and without, to the knowledge of the Receiving Party, breach of any agreement
between such Third Party and the Disclosing Party;

(c)      that the Receiving Party can demonstrate by competent evidence was
already in its possession without any limitation on disclosure prior to its
receipt from the Disclosing Party;

(d)      that is generally made available to Third Parties by the Disclosing
Party without restriction on disclosure; or

(e)      that the Receiving Party can demonstrate by competent evidence was
independently developed by the Receiving Party without use of or reference to
the Confidential Information.

SECTION 10.16 Register. The Borrower hereby designates Orbimed Royalty
Opportunities II, LP to serve as its agent (and such agency being solely to the
extent required for Tax purposes) to maintain a register (the “Register”) on
which it will record the name and address of the Lender, and the Commitment of,
and principal amount (and stated interest) of the Loans owing to the Lender
pursuant to the terms hereof from time to time. The entries in the Register
shall be conclusive (absent manifest error), and the Borrower and the Lender
shall treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower, at any reasonable time and from time to time upon
reasonable prior notice.

[  Signature Page Follows ]

 

-  66  -

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

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective officers thereunto duly authorized as of the day and year
first above written.

 

 

 

 

NATERA, INC.,
as the Borrower

 

 

 

By:

/s/ Michael Brophy

 

 

 

 

 

Name:  Michael Brophy

 

 

Title:    Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

ORBIMED ROYALTY OPPORTUNITIES II, LP, as the Lender

 

 

 

By OrbiMed Advisors LLC,
its investment manager

 

 

 

By:

/s/ Samuel Isaly

 

 

 

 

 

Name:  Samuel D. Isaly

 

 

Title:    Managing Member

 

 

 

 

[Schedules to Credit Agreement]

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

 

CONFIDENTIAL TREATMENT REQUESTED

SCHEDULES TO CREDIT AGREEMENT

Schedule 1.1 Competitors

Sequenom, Inc.

Laboratory Corporation of America Holdings

Illumina, Inc.

Verinata Health Inc.

Ariosa, Inc.

Counsyl, Inc.

Quest Diagnostics Incorporated

Premaitha Health PLC

Beijing Genomics Institute

Berry Genomics Co., Ltd.

Progenity, Inc.

LifeCodexx AG

Synlab International GmbH

Multiplicom N.V.

Bio-Reference Laboratories, Inc.

Good Start Genetics, Inc.

Invitae Corp.

Recombine Inc.

NxGen MDx LLC

GenPath Diagnostics

Cord Blood Registry

ViaCord

Cryo-Cell International, Inc.

CorCell Companies, Inc.

LifeBankUSA

Roche Molecular Systems Inc.

GRAIL

Guardant Health, Inc.

Personal Genome Diagnostics, Inc.

Foundation Medicine, Inc.

Genomic Health Inc.

 

 

 

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 1.2 Tangible Fixed Assets

[See Attached]

 

[Schedules to Credit Agreement]

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

 

 

 

 

 

 

 

 

Vendor/Payee

Description

PO No.

Purchase Date

Original Price

June 30th 2017
Net Book Value

Location

 

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

[*]* 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 PORTION.

 

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

 

 

 

 

 

 

 

 

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[*]* 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 PORTION.

 

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

 

 

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[*]* 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 PORTION.

 

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

 

 

 

 

 

 

 

 

 

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

[*]* 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 PORTION.

 

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

 

 

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[*]* 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 PORTION.

 

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

 

 

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[*]* 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 PORTION.

 

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

 

 

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[*]* 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 PORTION.

 

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

 

 

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[*]* 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 PORTION.

 

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

 

 

 

 

 

 

 

 

 

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

[*]* 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 PORTION.

 

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

 

 

 

 

 

 

 

 

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

[*]* 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 PORTION.

 

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

 

 

 

 

 

 

 

 

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

[*]* 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 PORTION.

 

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

 

 

[*]

[*]

[*]

[*]

[*]

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[*]

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[*]

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

[*]* 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 PORTION.

 

 

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.7(a) Litigation

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.8 Existing Subsidiaries

 

 

 

Subsidiary

Direct & indirect owner(s)

Natera International, Inc.

Natera, Inc.

NSTX, Inc.

Natera, Inc.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.10 Taxes

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(a) Intellectual Property

[See Attached]

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

TRADEMARKS

Registered Trademarks

 

 

 

 

Country

Mark

Registration No.

Registration Date

Argentina

NATERA

2793701

Mar-23-2016

Argentina

NATERA

2793702

Mar-23-2016

Argentina

NATERA

2793700

Mar-23-2016

Argentina

PANORAMA

2662678

Jul-11-2014

Australia

NATERA

1494690

Jun-05-2012

Australia

PANORAMA

1555711

May-08-2013

Australia

POWERED BY SNPS

1628725

Jun-17-2014

Brazil

NATERA

840152671

Jun-30-2015

Brazil

PANORAMA

840509707

Feb-02-2016

Brazil

PANORAMA

840509723

Feb-02-2016

Canada

NATERA

TMA904282

May-22-2015

Canada

PANORAMA

TMA936551

May-02-2016

Canada

POWERED BY SNPS

TMA909952

Jul-30-2015

China

NATERA

11022636

Aug-14-2015

China

NATERA

11022635

Jan-07-2014

China

PANORAMA

12552423

Oct-07-2014

China

PANORAMA

12552422

Mar-14-2015

European Community

CONSTELLATION

014052708

Sep-14-2015

European Community

NATERA

10930469

Oct-30-2012

European Community

PANORAMA

011801297

Oct-03-2013

European Community

POWERED BY SNPS

013001037

Nov-07-2014

Hong Kong

PANORAMA

303405014AB

Apr-15-2016

Israel

NATERA

274532

Apr-06-2017

Israel

PANORAMA

255562

Jul-02-2015

Japan

NATERA

5521348

Sep-14-2012

Japan

PANORAMA

5717619

Nov-14-2014

Republic of Korea

NATERA

41-0392401

Mar-27-2017

Republic of Korea

PANORAMA

450051329

Sep-30-2014

Malaysia

NATERA

201505822

May-26-2015

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Malaysia

NATERA

2015058021

Jan-20-2017

Malaysia

PANORAMA

2015057528

Apr-08-2016

Malaysia

PANORAMA

2015057530

Apr-15-2016

Mexico

NATERA

1663298

Aug-11-2016

Mexico

NATERA

1582345

Oct-20-2015

Mexico

PANORAMA

1444991

Mar-31-2014

Peru

NATERA

00011277

Aug-07-2015

Peru

PANORAMA

79720

Dec-18-2013

Russian Federation

NATERA

506143

Feb-11-2014

Russian Federation

PANORAMA

518969

Jul-29-2014

Singapore

NATERA

40201508229Q

May-15-2015

Singapore

PANORAMA

40201508236X

May-15-2015

South Africa

PANORAMA

2013/12156

Mar-31-2016

South Africa

PANORAMA

2013/12155

Mar-31-2016

Switzerland

NATERA

678959

Oct-09-2015

Switzerland

PANORAMA

675238

Jul-07-2015

United States of America

ANORA

4782949

Jul-28-2015

United States of America

NATERA

4203883

Sep-04-2012

United States of America

PANORAMA

4846375

Nov-03-2015

United States of America

PANORAMA

4795748

Aug-18-2015

United States of America

POWERED BY SNPS

4683645

Feb-10-2015

United States of America

PRENATUS

4377165

Jul-30-2013

United States of America

SPECTRUM

4804768

Sep-01-2015

 

 

Pending Trademark Applications

Country

Trademark

Application No.

Application Date

Brazil

NATERA

840152647

Jun-05-2012

Canada

EVERCORD

1826662

Mar-10-2017

Hong Kong

NATERA

303405023

May-12-2015

India

NATERA

2343007

Jun-05-2012

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

India

PANORAMA

2527919

May-09-2013

South Africa

NATERA

2015/12170

May-12-2015

South Africa

NATERA

2015/12169

May-12-2015

Thailand

NATERA

991350

Jun-23-2015

Thailand

NATERA

991349

Jun-23-2015

Thailand

PANORAMA

991352

Jun-23-2015

Thailand

PANORAMA

991351

Jun-23-2015

United States of America

CONSTELLATION

86/634580

May-19-2015

United States of America

EVERCORD

87/193621

Oct-05-2016

United States of America

NATERA

87/472240

Jun-01-2017

 

 

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

PATENTS

 

 

 

 

 

 

 

 

 

 

Title

Publication No.

Application No.

Filing Date

Country

Status

Patent No

Issue Date

Expiration
Date

Owner

SYSTEM AND METHOD FOR IMPROVING CLINICAL DECISIONS BY AGGREGATING, VALIDATING
AND ANALYSING GENETIC AND PHENOTYPIC DATA

US-2006-0052945- A1

11/004,274

12/3/2004

US

Issued

8024128

9/20/2011

Dec. 3, 2024

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

2006318425

11/22/2006

Australia

Issued

2006318425

8/15/2013

11/22/2026

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

2013202555

11/22/2006

Australia

Pending

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

2,632,230

11/22/2006

Canada

Pending

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

101346724

200680049316.3

11/22/2006

China

Pending

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND DETERMINING CHROMSOME COPY
NUMBER

101790731

200880016123.7

3/17/2008

China

Issued

ZL200880016123.7

11/6/2013

3/17/2028

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

1960929

06838311.6

11/22/2006

EP

Published

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

11175867.8

11/22/2006

EP

Issued

2437191

4/26/2017

11/22/2026

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

3012760

15199388.8

11/22/2006

EP

Published

 

 

 

Natera

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING GENETIC, PHENTOYPIC
AND CLINICAL DATA TO MAKE PREDICTIONS

HK1125195

09102141.5

3/5/2009

Hong Kong

Published

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

16112262.8

10/25/2016

Hong Kong

Pending

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

 

2008-542450

11/22/2006

Japan

Issued

6121642

4/7/2017

11/22/2026

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND USING DATA TO MAKE
PREDICTIONS

JP2016-184429A

2016-117074

11/22/2006

Japan

Published

 

 

 

Natera

METHOD FOR DETERMINING THE NUMBER OF COPIES OF A CHROMOSOME IN THE GENOME OF A
TARGET INDIVIDUAL USING GENETIC DATA FROM GENETICALLY RELATED

US20070184467A1

11/603,406

11/22/2006

US

Issued

8532930

9/10/2013

Nov. 22, 2026

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND DETERMINING CHROMOSOME
COPY NUMBER

US20080243398A1

12/076,348

3/17/2008

US

Issued

8515679

8/20/2013

Mar. 17, 2028

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

US 2013-0253369 A1

13/793,133

3/11/2013

US

Issued

9424392

8/23/2016

Mar. 11, 2033

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

US 2013-0252824 A1

13/793,186

3/11/2013

US

Issued

8682592

3/25/2014

Mar. 11, 2033

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND DETERMINING CHROMOSOME
COPY NUMBER

US 2014-0032128 A1

13/949,212

7/23/2013

US

Published

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

US 2014-0087385 A1

14/092,457

11/27/2013

US

Issued

9430611

8/30/2016

Nov. 27, 2033

Natera

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

US-2016-0298188- A1

15/187,555

6/20/2016

US

Published

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

2016-0369345 A1

15/191,197

6/23/2016

US

Published

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA FROM TARGET INDIVIDUALS USING
GENETIC DATA FROM GENETICALLY RELATED INDIVIDUALS

2017-0029893-A1

15/293,257

10/13/2016

US

Issued

9695477

7/4/2017

10/13/2036

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND DETERMINING CHROMOSOME
COPY NUMBER

 

15/413,200

1/23/2017

US

Pending

 

 

 

Natera

SYSTEM AND METHOD FOR CLEANING NOISY GENETIC DATA AND DETERMINING CHROMOSOME
COPY NUMBER

US-2017-0166971- A1

15/446,778

3/1/2017

US

Published

 

 

 

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

 

2016200643

2/2/2016

Australia

Pending

 

 

 

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

 

2,731,991

8/4/2009

Canada

Pending

 

 

 

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

CN 102171565A

200980139431.3

8/4/2009

China

Issued

ZL200980139431.3

4/29/2015

8/4/2029

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

CN 104732118 A

CN201510180799.1

8/4/2009

China

Pending

 

 

 

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

 

09805452.1

8/4/2009

EP

Issued

2321642

1/11/2017

8/4/2029

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

HK1159248

11113782.2

12/21/2011

Hong Kong

Issued

HK1159248

1/15/2016

12/21/2031

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

US 2013-0225422 A1

13/846,111

3/18/2013

US

Issued

9639657

5/2/2017

Mar. 18, 2033

Natera

METHODS FOR ALLELE CALLING AND PLOIDY CALLING

2016-0371432 A1

15/257,836

9/6/2016

US

Published

 

 

 

Natera

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2011255641

5/18/2011

Australia

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2015252046

5/18/2011

Australia

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2011358564

11/18/2011

Australia

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

 

2011348100

12/22/2011

Australia

Issued

2011348100

12/8/2016

12/22/2031

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

 

2012385961

11/21/2012

Australia

Issued

2012385961

7/13/2017

11/21/2032

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2,774,252

9/30/2010

Canada

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2,798,758

5/18/2011

Canada

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2,824,387

11/18/2011

Canada

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

 

2,821,906

12/22/2011

Canada

Pending

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

 

2,877,493

11/21/2012

Canada

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

102597266

201080048121.3

9/30/2010

China

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

201180069972.0

11/18/2011

China

Pending

 

 

 

Natera

 

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

*    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 PORTION.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

CN 103608466

201180068305.0

12/22/2011

China

Published

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

CN104685064

201280075224.8

11/21/2012

China

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

10821214.3

9/30/2010

EP

Allowed

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2854056

14198110.0

9/30/2010

EP

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2572003

11784180.9

5/18/2011

EP

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2854057

14198470.8

5/18/2011

EP

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2673729

11858061.2

11/18/2011

EP

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

EP2902500

14195468.5

11/18/2011

EP

Issued

2902500

1/11/2017

11/18/2031

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

EP2656263 (A2)

11851621.0

12/22/2011

EP

Published

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

2847347

12881774.9

11/21/2012

EP

Issued

2847347

3/22/2017

11/21/2032

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

EP3187597A1

17150875.7

1/10/2017

EP

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

HK1173193

13100216.3

1/7/2013

Hong Kong

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

1193173

14105490.8

11/18/2011

Hong Kong

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

HK1195104

14108417.2

12/22/2011

Hong Kong

Pending

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

 

15109182.2

9/16/2015

Hong Kong

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

1208939A

15109615.9

9/30/2015

Hong Kong

Published

 

 

 

Natera

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

1208940A

15109616.8

9/30/2015

Hong Kong

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

1208941A

15109617.7

9/30/2015

Hong Kong

Published

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

1211058

15111834.0

12/2/2015

Hong Kong

Published

 

 

 

Natera

METHODS AND COMPOSITIONS FOR REDUCING GENETIC LIBRARY CONTAMINATION

1212401A

15112589.5

12/22/2015

Hong Kong

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

1213600A

16101401.3

2/5/2016

Hong Kong

Published

 

 

 

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

6584/DELNP/2013

11/18/2011

India

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

6496/DELNP/2013 A

6496/DELNP/2013

12/22/2011

India

Published

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

18/DELNP/2015

18/DELNP/2015

11/21/2012

India

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

2013-553423

11/18/2011

Japan

Allowed

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

 

2013-546434

12/22/2011

Japan

Pending

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

2015-526073

2015-524243

11/21/2012

Japan

Pending

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

KR20150038216 (A)

10-2015-7004509

11/21/2012

Korea

Published

 

 

 

Natera

 

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

*    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 PORTION.

[Schedules to Credit Agreement]

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

 

 

SCHEDULES TO CREDIT AGREEMENT

 

 

 

 

 

 

 

 

 

 

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

WO 2012/108920

2013141237

11/18/2011

Russia

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PATERNITY TESTING

 

2013133413

12/22/2011

Russia

Issued

2620959

5/30/2017

12/22/2031

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

WO 2014/018080

2014152883

11/21/2012

Russia

Published

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

 

11201408813V

11/21/2012

Singapore

Issued

11201408813V

5/25/2017

11/21/2032

Natera

Methods for Non-Invasive Prenatal Ploidy Calling

US 2011-0288780 A1

13/110,685

5/18/2011

US

Issued

8825412

9/2/2014

5/18/2031

Natera

Methods for Non-Invasive Prenatal Ploidy Calling

US 2012-0270212 A1

13/300,235

11/18/2011

US

Pending

 

 

 

Natera

Methods for Non-Invasive Prenatal Paternity Testing

US 2012-0122701 A1

13/335,043

12/22/2011

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US 2013-0178373 A1

13/791,397

3/8/2013

US

Issued

9163282

10/20/2015

Mar. 8, 2033

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US 2014-0154682 A1

14/080,656

11/14/2013

US

Issued

9228234

1/5/2016

Nov. 14, 2033

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US 2014-0100134 A1

14/100,928

12/9/2013

US

Issued

8949036

2/3/2015

Dec. 9, 2033

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

14/179,399

2/12/2014

US

Pending

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US-2014-0336060- A1

14/446,232

7/29/2014

US

Issued

9334541

5/10/2016

Jul. 29, 2034

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US-2015-0051087- A1

14/532,666

11/4/2014

US

Published

 

 

 

Natera

Methods for Non-Invasive Prenatal Ploidy Calling

US-2016-0024564- A1

14/866,223

9/25/2015

US

Published

 

 

 

Natera

Highly Multiplex PCR Methods and
Compositions

US-2017-0051355- A1

14/877,925

10/7/2015

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US 2016-0171152 A1

14/983,128

12/29/2015

US

Published

 

 

 

Natera

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US-2016-0357904- A1

15/243,915

8/22/2016

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2016-0369346 A1

15/252,795

8/31/2016

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

US-2017-0011166- A1

15/273,332

9/22/2016

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

2017-0076038-A1

15/343,003

11/3/2016

US

Published

 

 

 

Natera

METHODS FOR NON-INVASIVE PRENATAL PLOIDY CALLING

 

15/586,013

5/3/2017

US

Pending

 

 

 

Natera

HIGHLY MULTIPLEX PCR METHODS AND COMPOSITIONS

 

2015/00302

11/21/2012

South Africa

Allowed

 

 

 

Natera

Method for Non-Invasive Prenatal Testing Using Parental Mosaicism Data

 

15/433,950

2/15/2017

US

Pending

 

 

 

Natera

METHODS OF USING LOW FETAL
FRACTION DETECTION

WO 2015/026967

PCT/US2014/051926

8/20/2014

PCT

Published

 

 

 

Natera

CELL FREE DNA DIAGNOSTIC TESTING STANDARDS

US 2015-0147815 A1

14/498,629

9/26/2014

US

Issued

9499870

11/22/2016

Sept. 26, 2034

Natera

CELL FREE DNA DIAGNOSTIC TESTING STANDARDS

US-2016-0244838- A1

14/996,097

1/14/2016

US

Published

 

 

 

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

 

2015249846

10/21/2016

Australia

Pending

 

 

 

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

 

2,945,962

4/21/2015

Canada

Pending

 

 

 

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

CN 106460070

201580033190.x

12/20/2016

China

Published

 

 

 

Natera

 

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

*    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 PORTION.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

3134541

15718754.3

10/20/2016

EP

Pending

 

 

 

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

 

201617038186

11/8/2016

India

Pending

 

 

 

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

 

2016-563812

4/21/2015

Japan

Pending

 

 

 

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

WO 2015/164432

2016141308

10/20/2016

Russia

Published

 

 

 

Natera

METHODS FOR SIMULTANEOUS AMPLIFICATION OF TARGET LOCI

US-2015-0322507- A1

14/538,982

11/24/2014

US

Issued

9677118

6/13/2017

Nov. 24, 2034

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

US-2017-0107576- A1

14/692,703

4/21/2015

US

Published

 

 

 

Natera

DETECTING CANCER MUTATIONS AND ANEUPLOIDY IN CHROMOSOMAL SEGMENTS

US-2016-0333416- A1

14/882,763

10/14/2015

US

Published

 

 

 

Natera

METHODS FOR SIMULTANEOUS AMPLIFICATION OF TARGET LOCI

2016-0369333 A1

14/918,544

10/20/2015

US

Published

 

 

 

Natera

METHODS FOR SIMULTANEOUS AMPLIFICATION OF TARGET LOCI

US-2017-0145474- A1

15/336,630

10/27/2016

US

Published

 

 

 

Natera

DETECTING MUTATIONS AND PLOIDY IN CHROMOSOMAL SEGMENTS

WO 2015/164432

PCT/US2015/026957

4/21/2015

PCT

Published

 

 

 

Natera

METHODS AND COMPOSITIONS FOR DETERMINING PLOIDY

WO 2016/183106

PCT/US2016/031686

5/10/2016

PCT

Pending

 

 

 

Natera

SYSTEMS AND METHODS FOR

DETERMINING ANEUPLOIDY RISK USING SAMPLE FETAL FRACTION

2016-0371428 A1

15/186,774

6/20/2016

US

Published

 

 

 

Natera

 

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

*    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 PORTION.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

COMPOSITIONS AND METHODS FOR DETECTION OF NUCLEIC ACID MUTATIONS

 

62/357,847

7/1/2016

US

Pending

 

 

 

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

METHODS FOR LUNG CANCER DETECTION

 

PCT/US2017/028013

4/17/2017

PCT

Pending

 

 

 

Natera / UCL Business, PLC

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

METHODS FOR CHARACTERIZING COPY NUMBER VARIATION USING PROXIMITY-LITIGATION
SEQUENCING

 

62/404,176

10/4/2016

US

Pending

 

 

 

Natera

[*]

 

[*]

[*]

[*]

[*]

 

 

 

[*]

 

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

*    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 PORTION.

 

 

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(b) Intellectual Property Exceptions

None.

 

[  Signature Page to Credit Agreement ]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(b)(v) Intellectual Property Sole Ownership Exceptions 

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(c) Intellectual Property Infringement 

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(d) Significant License Agreements

Illumina Supply Agreement, dated 8.16.13, as amended by the First Amendment to
Illumina Supply Agreement, dated 9.18.14, the Second Amendment to Illumina
Supply Agreement, dated 9.23.15, and the Third Amendment to Illumina Supply
Agreement, dated 6.8.16

[*]

[*]

[*]

 

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

*    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 PORTION.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.15(e) Infringement Notices

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.17 Permits 

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.18(b) Regulatory Actions

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.18(d) Key Permit Matters

None.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.18(e) Reimbursement Matters

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.18(g) Debarment and Related Matters

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.18(h) Studies, Tests and Clinical and Preclinical Trials

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.19 Transactions with Affiliates

None.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 6.22 Deposit and Disbursement Accounts

 

 

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

 

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

 

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

*    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 PORTION.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

[*]

[*]

[*]

[*]

[*]

[*]

[*]

[*]

 

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

*    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 PORTION.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 7.16 Post-Closing

1. No later than 5 days after the Closing Date, deliver the insurance
certificates required by Section 5.15 of the Credit Agreement.

2. No later than 30 days after the Closing Date, deliver endorsements in form
and substance reasonably satisfactory to the Lender required by Section 7.4 of
the Credit Agreement.

3. No later than 60 days after the Closing Date, deliver account control
agreements, which shall be in form and substance reasonably satisfactory to the
Lender, as required by Section 7.13 of the Credit Agreement.

4. No later than 60 days after the Closing Date, deliver landlord waivers and/or
collateral access agreements, which shall be in form and substance reasonably
satisfactory to the Lender, for each of the leased properties listed on Item A
to Schedule II of the Pledge and Security Agreement.

5. No later than 90 days after the Closing Date, either (a) deliver and cause
UBS Bank USA and/or UBS Financial Services, Inc. to deliver to the Lender an
intercreditor agreement, account control agreement and other agreements,
instruments and documents, in each case reasonably satisfactory to the Lender,
necessary or advisable reflect a second priority Lien in favor of the Lender
(prior to all Liens other than Liens permitted pursuant to Item 1 of Schedule
8.3(c) and any other Liens permitted by Section 8.3 of the Credit Agreement) on
all amounts from time to time on deposit or held in the Managed Investment
Account, in which case the UBS Cap shall have no further force or effect; or (b)
transfer all amounts on deposit or held in the Managed Investment Amount in
excess of the UBS Cap to another deposit account at UBS Financial Services, Inc.
or any other financial institution reasonably satisfactory to the Lender and
deliver to the Lender an account control agreement and other agreements,
instruments or documents reasonably necessary or advisable to cause such account
to be a Controlled Account and prior to all Liens other than Liens permitted by
Section 8.3 of the Credit Agreement (excluding Liens permitted pursuant to Item
1 of Schedule 8.3(c)). It is understood and agreed the UBS Cap shall not apply
during such 90-day period.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 8.2(c) Existing Indebtedness

Credit Line Agreement with UBS Bank USA dated September 23, 2015, as amended on
July 5, 2017, providing for a $50 million revolving line of credit (the “UBS
Credit Line”).

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 8.3(c) Existing Liens

Liens in favor of UBS Bank USA on the Collateral (as defined in the UBS Credit
Line) including, on cash and fixed income securities held in account number [*]
(the “Managed Investments Account”) with UBS Financial Services, Inc., which
secure the obligations of the Borrower to UBS Bank USA under the UBS Credit Line
and subject to Schedule 7.16, which amount shall not at any time exceed an
amount equal to the amount drawn and outstanding under the UBS Credit Line plus
$[*] (the “UBS Cap”).

Liens in favor of Comerica Bank on restricted cash held in account number [*] at
Comerica Bank, which secure the obligations of the Borrower to Comerica Bank
pursuant to the Comerica Pledge and Security Agreement and which amount shall
not exceed $[*] at any time.

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

*    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 PORTION.

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 8.5(a) Investments

Investments made from time to time under the Managed Investments Account.

 

[Schedules to Credit Agreement]

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

 

SCHEDULES TO CREDIT AGREEMENT

Schedule 10.2 Notice Information 

If to the Borrower:

Natera, Inc.

Attention: Chief Financial Officer

201 Industrial Road, Suite 410

San Carlos, CA 94070

(650) 249-9090

With a copy to:

General Counsel
Email: [*]

If to the Lender:

OrbiMed Royalty Opportunities II, LP

c/o OrbiMed Advisors LLC

601 Lexington Avenue, 54th Floor

New York, NY 10022

Attention: [*]

Phone: [*]

Fax: [*]

Email: [*]

With a copy to:

[*]

Covington & Burling LLP
New York Times Building
620 Eighth Avenue

New York, NY 10018
Email: [*]

 

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

*    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 PORTION.

 

 

[Schedules to Credit Agreement]

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

 

THE LOANS ARE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR PURPOSES OF SECTION 1271
ET SEQ. OF THE CODE. THE ISSUE PRICE, AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE
DATE AND YIELD TO MATURITY FOR SUCH LOANS MAY BE OBTAINED BY SUBMITTING A
WRITTEN REQUEST FOR SUCH INFORMATION TO BORROWER AT THE ADDRESS SET FORTH IN
SCHEDULE 10.2 TO THE CREDIT AGREEMENT.

EXHIBIT A

FORM OF PROMISSORY NOTE

$75,000,000

August 8, 2017

 

FOR VALUE RECEIVED, NATERA, INC., a Delaware corporation (the “Borrower”),
hereby promises to pay ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware Limited
Partnership (together with its Affiliates, successors, transferees and assigns,
the “Lender”), on the Maturity Date the principal sum of SEVENTY-FIVE MILLION
DOLLARS ($75,000,000) or, if a Delayed Draw Loan is made to the Borrower, ONE
HUNDRED MILLION DOLLARS ($100,000,000) or, in either case if less, the aggregate
unpaid and outstanding principal amount of the Loans made by the Lender pursuant
to the Credit Agreement, dated as of August 8, 2017 (as amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and between
the Borrower and the Lender. Unless otherwise defined herein or the context
otherwise requires, terms used in this Note have the meanings provided in the
Credit Agreement.

The Borrower also promises to pay interest on the unpaid principal amount hereof
from time to time outstanding from the date hereof until maturity (whether by
acceleration or otherwise) and, after maturity upon demand, until paid in full,
at the rates per annum and on the dates specified in the Credit Agreement, as
well as any other amounts that may be due to the Lender upon maturity (whether
by acceleration or otherwise) under or in respect of this Note.

Payments of both principal and interest are to be made in U.S. Dollars in same
day or immediately available funds to the account designated by the Lender
pursuant to the Credit Agreement.

This Note is referred to in, and evidences Indebtedness incurred under, the
Credit Agreement, to which reference is made for a description of the security
and guarantee for this Note and for a statement of the terms and conditions on
which the Borrower is permitted and required to make prepayments and repayments
of the unpaid principal amount of the Indebtedness evidenced by this Note and on
which such Indebtedness may be declared to be immediately due and payable. Any
prepaid principal of this Note may not be reborrowed.

All parties hereto, whether as makers, endorsers or otherwise, severally waive
presentment for payment, demand, protest and notice of dishonor.

THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE
CREDIT AGREEMENT. TRANSFERS OF THIS NOTE

 

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

 

MUST BE RECORDED IN THE REGISTER MAINTAINED PURSUANT TO THE TERMS OF THE CREDIT
AGREEMENT.

THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS
5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

[  Signature Page Follows ]

 

2

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

 

 

 

 

 

NATERA, INC.

 

 

 

 

 

By:

 

 

 

Name: Matthew Rabinowitz

 

 

Title: Chief Executive Officer

 

 

[  Signature Page to Promissory Note ]

 

 

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

 

EXHIBIT B

FORM OF LOAN REQUEST

August 7, 2017

OrbiMed Royalty Opportunities II, LP
601 Lexington Avenue, 54th Floor
New York, NY 10022

Attention: Matthew Rizzo

Ladies and Gentlemen:

Reference is hereby made to that certain Credit Agreement, dated as of August 8,
2017 (as amended, supplemented or otherwise modified from time to time and in
effect on the date hereof, the “Credit Agreement”), by and between Natera, Inc.,
a Delaware corporation (the “Borrower”), and ORBIMED ROYALTY OPPORTUNITIES II,
LP, a Delaware Limited Partnership (together with its Affiliates, successors,
transferees and assignees, the “Lender”).

Unless otherwise defined herein or the context otherwise requires, terms used
herein have the meanings provided in the Credit Agreement.

Pursuant to the provisions of Section 2.2 of the Credit Agreement, the Borrower
hereby requests [an Initial ][a Delayed Draw ]Loan of $[ ] to be made on
                                , 201    (the “Proposed Disbursement Date”),
which Loan shall be evidenced by [that certain Promissory Note dated as of [ ],
201_ in the aggregate original principal amount of $75,000,000.00][         ].

The undersigned hereby certifies to the Lender that:

(a)        the proceeds of the proposed Loan are to be used for the purposes set
forth in Section 7.7 of the Credit Agreement; and

(b)        bank account details and wire transfer instructions for disbursement
of the proceeds of the proposed Loan are set forth on Schedule A hereto;

(c)        no Default has occurred and is continuing, or would result from the
proposed Loan;

(d)        the representations and warranties contained in Article VI of the
Credit Agreement and in the other Loan Documents are true and correct in all
material respects (except with respect to any representation or warranty
qualified by materiality or Material Adverse Effect, which representation or
warranty shall be true and correct in all respects), before and after giving
effect to the making of the proposed Loan and to the application of the proceeds
thereof, as though made on and as of the date hereof, except to the extent that
they relate specifically to an earlier specified date (in which case they are
true and correct in all material respects on and as of such earlier date) or are
affected by transactions or events occurring after the date of the Credit
Agreement which are not prohibited thereunder.

 

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

 

The officer signing below is an Authorized Officer of the undersigned and is
authorized to request the Loan contemplated hereby and issue this Loan Request
on behalf of the undersigned.

[  Signature Page Follows ]

 

2

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

 

 

 

Very truly yours,

 

 

 

 

 

NATERA, INC.,

 

as the Borrower

 

 

 

 

 

By:

 

 

 

Name: Matthew Rabinowitz

 

 

Title: Chief Executive Officer

 

[  Signature Page to Loan Request ]

 

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

 

Schedule A

Disbursement / Wire Instructions

 

 

 

[ Schedules to Loan Request]

 

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

 

CONFIDENTIAL TREATMENT REQUESTED

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

NATERA, INC.

COMPUTATION DATE:__________      , 201

This Compliance Certificate (this “Certificate”) is delivered pursuant to
Section 7.1(d) of the Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”), and
OrbiMed Royalty Opportunities II, LP, a Delaware limited partnership (together
with its Affiliates, successors, transferees and assignees, the “Lender”).
Unless otherwise defined herein or the context otherwise requires, terms used in
this Certificate have the meanings provided in the Credit Agreement.

This Certificate relates to the [Fiscal Quarter][Fiscal Year] commencing on
                                     , 201  and ending on____________       ,
201      (such latter date being the “Computation Date”).

The undersigned is duly authorized to execute and deliver this Certificate on
behalf of the Borrower. By executing this Certificate, the undersigned hereby
certifies to the Lender that as of the Computation Date:

(a) [Select one of the following:]

[Attached hereto as Annex I are the unaudited consolidated balance sheet of
Borrower and the Subsidiaries as of the end of such Fiscal Quarter and
consolidated statements of income and cash flow of the Borrower and the
Subsidiaries for such Fiscal Quarter and for the period commencing at the end of
the previous Fiscal Year and ending with the end of such Fiscal Quarter, and
including (in each case) in comparative form the figures for the corresponding
Fiscal Quarter in, and year to date portion of, the immediately preceding Fiscal
Year, certified as complete and correct by the chief financial or accounting
Authorized Officer of the Borrower (subject to normal year-end audit adjustments
and except for the absence of footnotes).]1

[Attached hereto as Annex I are the consolidated balance sheet of Borrower and
the Subsidiaries, and the related consolidated statements of income and cash
flow of the Borrower and the Subsidiaries for such Fiscal Year, setting forth in
comparative form the figures for the immediately preceding Fiscal Year, audited
(without any Impermissible Qualification) by an independent accounting firm
which is (i) registered with the Public Company Accounting Oversight Board
(PCAOB) to audit public companies and (ii) reasonably acceptable to the Lender,
which shall include a calculation of the financial covenants set forth in
Section 8.4 of the Credit Agreement and stating that, in performing

 

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

1    INCLUDE FOR QUARTERLY FINANCIAL DELIVERABLES.

 

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

 

the examination necessary to deliver the audited financial statements of the
Borrower, no knowledge was obtained of any Event of Default.]2

(b) The financial statements delivered with this Certificate in accordance with
Section 7.1(b) and (c) of the Credit Agreement fairly present in all material
respects the financial condition of the Borrower and the Subsidiaries (subject
to the absence of footnotes and to normal year-end audit adjustments in the case
of unaudited financial statements).

(c) As of the Computation Date, the Borrower and the Subsidiaries are in
compliance in all respects with the financial covenants set forth in Section 8.4
of the Credit Agreement. Set forth on Attachment 1 hereto are calculations
showing compliance with such financial covenants as of the Computation Date.

(d) No Default has occurred and is continuing[ except as set forth on Attachment
2 hereto, which includes a description of the nature and period of existence of
such Default and what action the Borrower or any of the Subsidiaries has taken,
is taking, or proposes to take with respect thereto].

(e) Subsequent to the date of the most recent Compliance Certificate submitted
by the undersigned pursuant to Section 7.1(d) of the Credit Agreement, neither
the Borrower nor any Subsidiary has formed or acquired any new Subsidiary[
except as set forth on Attachment 2 hereto, in which case such new Subsidiary
has complied with the requirements of Section 7.8 of the Credit Agreement].

(f) Subsequent to the date of the most recent Compliance Certificate submitted
by the undersigned pursuant to Section 7.1(d) of the Credit Agreement, neither
the Borrower nor any Subsidiary has acquired any ownership interest in any real
property[ except as set forth on Attachment 2 hereto, in which case the Borrower
has complied with the requirements of Section 7.8 of the Credit Agreement with
respect to such real property].

(g) Subsequent to the date of the most recent Compliance Certificate submitted
by the undersigned pursuant to Section 7.1(d) of the Credit Agreement, a
complete list of (i) each and every application for registration of Intellectual
Property, if any, filed by either the Borrower or any Subsidiary (or their
respective agents, employees, designees or licensees) with the United States
Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof and
(ii) each and every approval of registration and issuance of Intellectual
Property, if any, received by either the Borrower or any Subsidiary (or their
respective agents, employees, designees or licensees) from such offices, is set
forth in Attachment 2 hereto.

[  Signature Page Follows ]

 

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2 INCLUDE FOR ANNUAL FINANCIAL DELIVERABLES.

 

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CONFIDENTIAL TREATMENT REQUESTED

 

IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed
and delivered, and the certification and warranties contained herein to be made,
by its chief financial or accounting Authorized Officer as of the date first
above written.

 

 

 

NATERA, INC.

 

 

 

 

 

By:

 

 

 

Name: [ ]

 

 

Title: [ ]

 

 

[  Signature Page to Compliance Certificate ]

 

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Annex 1

 

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Attachment 1

Net Revenue for the Fiscal Quarter ending on the Computational
Date:______________

 

 

Minimum Net Revenue required pursuant to Section 8.4 of the Credit Agreement:
$[*]

 

 

Compliance: [Yes]/[No]

 

 

 

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*    CERTAIN INFORMATION HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
WITH RESPECT TO THE OMITTED PORTIONS.

 

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Attachment 2

 

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EXHIBIT D

FORM OF GUARANTEE

This GUARANTEE, dated as of August 8, 2017 (as amended, supplemented or
otherwise modified from time to time, this “Guarantee”), is made by NATERA
INTERNATIONAL, INC., a Delaware corporation and NSTX, INC. (together with any
additional Persons named pursuant to Section 5.5, each a “Guarantor” and
collectively the “Guarantors”), in favor of ORBIMED ROYALTY OPPORTUNITIES II,
LP, a Delaware Limited Partnership (together with its Affiliates, successors,
transferees and assignees, the “Lender”).

W I T N E S S E T H:

WHEREAS, pursuant to the Credit Agreement, dated as of August 8, 2017 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and between Natera, Inc., a Delaware corporation (the
“Borrower”) and the Lender, the Lender has extended a Commitment to make Loans
to the Borrower; and

WHEREAS, as a condition precedent to the making of the Initial Loan under the
Credit Agreement, the Guarantors are required to execute and deliver this
Guarantee;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and in order to induce the Lender to make the
Loans to the Borrower, each Guarantor hereby agrees, for the benefit of the
Lender, as follows.

ARTICLE I

DEFINITIONS

SECTION 1.1. Certain Terms. The following terms (whether or not underscored)
when used in this Guarantee, including its preamble and recitals, shall have the
following meanings (such definitions to be equally applicable to the singular
and plural forms thereof):

“Borrower” is defined in the first recital.

“Credit Agreement” is defined in the first recital.

“Guarantor” is defined in the preamble.

“Guarantee” is defined in the preamble.

“Lender” is defined in the preamble.

“Obligor” is defined in Section 2.1(a).

SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined herein or
the context otherwise requires, terms used in this Guarantee, including its
preamble and recitals, have the meanings provided in the Credit Agreement.

 

 

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ARTICLE II

GUARANTEE PROVISIONS

SECTION 2.1. Guarantee. Each Guarantor jointly and severally, absolutely,
unconditionally and irrevocably:

(a)         guarantees the full and punctual payment when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or
otherwise, of all Obligations of the Borrower and the Subsidiaries (each, an
“Obligor”) now or hereafter existing, whether for principal, interest (including
interest accruing at the then applicable Default Rate as provided in Section 3.5
of the Credit Agreement, whether or not a claim for post-filing or post-petition
interest is allowed under applicable law following the institution of a
proceeding under bankruptcy, insolvency or similar laws), fees, expenses or
otherwise (including all such amounts which would become due but for the
operation of the automatic stay under Section 362(a) of the United States
Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and
506(b) of the United States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)); and

(b)         indemnifies and holds harmless the Lender for any and all costs and
expenses (including the reasonable fees and out-of-pocket expenses of counsel to
the Lender) incurred by the Lender in enforcing any rights under this Guarantee,
except to the extent such amounts arise or are incurred as a consequence of the
Lender’s own gross negligence or willful misconduct;

provided, that each Guarantor shall only be liable under this Guarantee for the
maximum amount of such liability that can be hereby incurred without rendering
this Guarantee, as it relates to such Guarantor, voidable under applicable law
relating to fraudulent conveyance or fraudulent transfer, and not for any
greater amount. This Guarantee constitutes a guarantee of payment when due and
not of collection, and each Guarantor specifically agrees that it shall not be
necessary or required that the Lender exercise any right, assert any claim or
demand or enforce any remedy whatsoever against such Guarantor or any other
Person before or as a condition to the obligations of such Guarantor becoming
due hereunder.

SECTION 2.2. Reinstatement, etc. Each Guarantor agrees that this Guarantee shall
continue to be effective or be reinstated (including on or after the Termination
Date), as the case may be, if at any time any payment (in whole or in part) of
any of the Obligations is invalidated, declared to be fraudulent or
preferential, set aside, rescinded or must otherwise be restored by the Lender,
including upon the occurrence of any Event of Default set forth in Section
9.1(h) of the Credit Agreement or otherwise, all as though such payment had not
been made.

SECTION 2.3. Guarantee Absolute, etc. This Guarantee shall in all respects be a
continuing, absolute, unconditional and irrevocable guarantee of payment, and
shall remain in full force and effect until (unless reinstated pursuant to
Section 2.2 above) the Termination Date has occurred. Each Guarantor guarantees
that the Obligations shall be paid strictly in accordance with the terms of each
Loan Document under which they arise, regardless of any law, regulation or order
now or hereafter in effect in any jurisdiction affecting any of such terms or
the rights of

2

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the Lender with respect thereto. The liability of each Guarantor under this
Guarantee shall be absolute, unconditional and irrevocable irrespective of:

(a) any lack of validity, legality or enforceability of any Loan Document;

(b) the failure of the Lender (i) to assert any claim or demand or to enforce
any right or remedy against such Guarantor or any other Person (including any
other guarantor) under the provisions of any Loan Document or otherwise, or (ii)
to exercise any right or remedy against any other guarantor (including such
Guarantor and any other Guarantor) of, or collateral securing, any Obligations;

(c) any change in the time, manner or place of payment of, or in any other term
of, all or any part of the Obligations, or any other extension, compromise or
renewal of any Obligation, or any amendment to, rescission, waiver, or other
modification of, or any consent to or departure from, any of the terms of any
Loan Document;

(d) any reduction, limitation, impairment or termination of any Obligations for
any reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to (and each Guarantor hereby waives any
right to or claim of) any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality, irregularity,
compromise, unenforceability of, or any other event or occurrence affecting, any
Obligations or otherwise;

(e) any addition, exchange or release of any collateral or of any Person that is
(or will become) a guarantor of the Obligations, or any surrender or
non-perfection of any collateral, or any amendment to, or waiver or release of,
or addition to, or consent to or departure from, any other guarantee held by the
Lender securing any of the Obligations; or

(f) any other circumstance which might otherwise constitute a defense available
to, or a legal or equitable discharge of, any Obligor, any surety or any
guarantor (including any Guarantor).

SECTION 2.4. Setoff. Each Guarantor hereby irrevocably authorizes the Lender,
without the requirement that any notice be given to such Guarantor (such notice
being expressly waived by such Guarantor), upon the occurrence and during the
continuance of any Event of Default, to appropriate and apply to the payment of
the Obligations owing to it (whether or not then due), and (as security for such
Obligations) each Guarantor hereby grants to the Lender a continuing security
interest in, any and all balances, credits, deposits, accounts or moneys of such
Guarantor then or thereafter maintained with or on behalf of the Lender. The
Lender agrees to notify such Guarantor after any such set-off and application
made by the Lender; provided, that the failure to give such notice shall not
affect the validity of such setoff and application. The rights of the Lender
under this Section are in addition to other rights and remedies (including other
rights of setoff under applicable law or otherwise) which the Lender may have.

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SECTION 2.5. Waiver, etc. Each Guarantor waives promptness, diligence, notice of
acceptance and any other notice with respect to any of the Obligations and this
Guarantee and any requirement that the Lender protect, secure, perfect or insure
any Lien, or any property subject thereto, or exhaust any right or take any
action against any Obligor or any other Person (including any Guarantor) or
entity or any collateral securing the Obligations, as the case may be.

SECTION 2.6. Postponement of Subrogation, etc. Each Guarantor agrees that it
will not exercise any rights which it may acquire by way of rights of
subrogation under any Loan Document to which it is a party, nor shall such
Guarantor seek or be entitled to seek any contribution or reimbursement from the
Borrower or any other Obligor or Guarantor, in respect of any payment made under
any Loan Document or otherwise, until following the Termination Date. Any amount
paid to such Guarantor on account of any such subrogation rights prior to the
Termination Date shall be held in trust for the benefit of the Lender and shall
immediately be paid and turned over to the Lender in the exact form received by
such Guarantor (duly endorsed in favor of the Lender, if required), to be
credited and applied against the Obligations, whether matured or unmatured, in
accordance with Section 2.7; provided, that if such Guarantor has made payment
to the Lender of all or any part of the Obligations and the Termination Date has
occurred, then, at such Guarantor’s request, the Lender will, at the expense of
such Guarantor, execute and deliver to such Guarantor appropriate documents
(without recourse and without representation or warranty) necessary to evidence
the transfer by subrogation to such Guarantor of an interest in the Obligations
resulting from such payment. In furtherance of the foregoing, at all times prior
to the Termination Date, such Guarantor shall refrain from taking any action or
commencing any proceeding against the Borrower or any other Obligor or Guarantor
(or their successors or assigns, whether in connection with a bankruptcy
proceeding or otherwise) to recover any amounts in respect of payments made
under this Guarantee to the Lender.

SECTION 2.7. Payments; Application. Each Guarantor agrees that all obligations
of such Guarantor hereunder shall be paid solely in U.S. Dollars to the Lender
in immediately available funds, without set-off, counterclaim or other defense
and in accordance with Sections 3.2, 3.3, 4.3 and 4.4 of the Credit Agreement,
free and clear of and without deduction for any Non-Excluded Taxes, such
Guarantor hereby agreeing to comply with and be bound by the provisions of
Sections 3.2, 3.3, 4.3 and 4.4 of the Credit Agreement in respect of all
payments and application of such payments made by it hereunder and the
provisions of which Sections are hereby incorporated into and made a part of
this Guarantee by this reference as if set forth herein; provided, that
references to the “Borrower” in such Sections shall be deemed to be references
to such Guarantor, and references to “this Agreement” in such Sections shall be
deemed to be references to this Guarantee.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

In order to induce the Lender to enter into the Credit Agreement and make the
Loans thereunder, each Guarantor represents and warrants to the Lender as set
forth below.

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SECTION 3.1. Credit Agreement Representations and Warranties. The
representations and warranties contained in Article VI of the Credit Agreement,
insofar as the representations and warranties contained therein are applicable
to such Guarantor and its properties, are true and correct in all material
respects as of the Closing Date and the Delayed Draw Closing Date, if
applicable, each such representation and warranty set forth in such Article
(insofar as applicable as aforesaid) and all other terms of the Credit Agreement
to which reference is made therein, together with all related definitions and
ancillary provisions, being hereby incorporated into this Guarantee by this
reference as though specifically set forth in this Article.

SECTION 3.2. Financial Condition, etc. Each Guarantor has knowledge of the
Borrower’s and each other Guarantor’s financial condition and affairs and has
adequate means to obtain from each such Person on an ongoing basis information
relating thereto and to each such Person’s ability to pay and perform the
Obligations, and agrees to assume the responsibility for keeping, and to keep,
so informed for so long as this Guarantee is in effect. Each Guarantor
acknowledges and agrees that the Lender shall have no obligation to investigate
the financial condition or affairs of the Borrower or any other Guarantor for
the benefit of such Guarantor nor to advise such Guarantor of any fact
respecting, or any change in, the financial condition or affairs of each such
Person that might become known to the Lender at any time, whether or not the
Lender knows or believes or has reason to know or believe that any such fact or
change is unknown to such Guarantor, or might (or does) materially increase the
risk of such Guarantor as guarantor, or might (or would) affect the willingness
of such Guarantor to continue as a guarantor of the Obligations.

SECTION 3.3. Best Interests. It is in the best interests of each Guarantor to
execute this Guarantee inasmuch as each Guarantor will, as a result of being an
Affiliate of the Borrower, derive substantial direct and indirect benefits from
the Loans made to the Borrower by the Lender pursuant to the Credit Agreement,
and each Guarantor agrees that the Lender is relying on this representation in
agreeing to make the Loans to the Borrower.

ARTICLE IV

COVENANTS, ETC.

SECTION 4.1. Covenants. Each Guarantor covenants and agrees that, at all times
prior to the Termination Date, it will perform, comply with and be bound by all
of the agreements, covenants and obligations contained in the Credit Agreement
(including Articles VII and VIII of the Credit Agreement) which are applicable
to such Guarantor or its properties, each such agreement, covenant and
obligation contained in the Credit Agreement and all other terms of the Credit
Agreement to which reference is made in this Article, together with all related
definitions and ancillary provisions, being hereby incorporated into this
Guarantee by this reference as though specifically set forth in this Article.

ARTICLE V

MISCELLANEOUS PROVISIONS

SECTION 5.1. Loan Document. This Guarantee is a Loan Document executed pursuant
to the Credit Agreement and shall (unless otherwise expressly indicated herein)
be construed,

5

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administered and applied in accordance with the terms and provisions thereof,
including Article X thereof. Notwithstanding anything contained herein to
contrary, to the extent any provision in this Guarantee conflicts with any
provision in the Credit Agreement, the terms of the Credit Agreement shall
control.

SECTION 5.2. Binding on Successors, Transferees and Assigns; Assignment. This
Guarantee shall remain in full force and effect until the Termination Date has
occurred, shall be binding upon each Guarantor and its successors, transferees
and assigns and shall inure to the benefit of and be enforceable by the Lender;
provided, that such Guarantor may not (unless otherwise permitted under the
terms of the Credit Agreement) assign any of its obligations hereunder without
the prior written consent of the Lender. Without limiting the generality of the
foregoing, the Lender may assign or otherwise transfer (in whole or in part) its
Commitment, Note or Loans held by it to any other Person to the extent permitted
by the Credit Agreement, and such other Person shall thereupon become vested
with all rights and benefits in respect thereof granted to the Lender under each
Loan Document (including this Guarantee) or otherwise.

SECTION 5.3. Amendments, etc. No amendment to or waiver of any provision of this
Guarantee, nor consent to any departure by any Guarantor from its obligations
under this Guarantee, shall in any event be effective unless the same shall be
in writing and signed by the Lender and then such waiver or consent shall be
effective only in the specific instance and for the specific purpose for which
given.

SECTION 5.4. Notices. All notices and other communications provided for
hereunder shall be given or made as set forth in Section 10.2 of the Credit
Agreement.

SECTION 5.5. Release of Guarantors. Subject to Section 2.2 of this Guarantee,
upon (a) the Disposition of a Guarantor in accordance with the Credit Agreement
and this Guarantee or (b) the occurrence of the Termination Date, the guarantees
made herein shall automatically terminate with respect to (i) such Guarantor (in
the case of clause (a)) or (ii) all Guarantors (in the case of clause (b)).

SECTION 5.6. Additional Guarantors. Upon the execution and delivery by any other
Person of a supplement in the form of Annex I hereto, such Person shall become a
“Guarantor” hereunder with the same force and effect as if it were originally a
party to this Guarantee and named as a “Guarantor” hereunder. The execution and
delivery of such supplement shall not require the consent of any other Guarantor
hereunder, and the rights and obligations of each Guarantor hereunder shall
remain in full force and effect notwithstanding the addition of any new
Guarantor as a party to this Guarantee.

SECTION 5.7. No Waiver; Remedies. In addition to, and not in limitation of,
Section 2.3  and Section 2.5, no failure on the part of the Lender to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any
remedies provided by law.

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SECTION 5.8. Further Assurances. Each Guarantor agrees, upon the written request
of the Lender, to execute and deliver to the Lender, from time to time, any
additional instruments or documents deemed to be reasonably necessary by the
Lender to cause this Guarantee to be, become or remain valid and effective in
accordance with its terms.

SECTION 5.9. Section Captions. Section captions used in this Guarantee are for
convenience of reference only and shall not affect the construction of this
Guarantee.

SECTION 5.10. Severability. Any provision of this Guarantee which is prohibited
or unenforceable in any jurisdiction shall, as to such provision and such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Guarantee
or affecting the validity or enforceability of such provision in any other
jurisdiction.

SECTION 5.11. Governing Law, Entire Agreement, etc. THIS GUARANTEE AND ANY
CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR
OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTEE OR ANY OTHER
LOAN DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK). This Guarantee, along with the other Loan Documents, constitutes
the entire understanding among the parties hereto with respect to the subject
matter hereof and supersedes any prior agreements, written or oral, with respect
hereto.

SECTION 5.12. Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTEE, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR
ACTIONS OF THE LENDER OR ANY GUARANTOR IN CONNECTION HEREWITH SHALL BE BROUGHT
AND MAINTAINED IN THE COURTS OF THE BOROUGH OF MANHATTAN IN THE CITY OF NEW YORK
IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN
DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY
COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE LENDER’S OPTION, IN THE
COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.
THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY
PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR
NOTICES SPECIFIED IN SECTION 10.2 OF THE CREDIT AGREEMENT. THE LENDER BY
ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR HEREBY EXPRESSLY AND IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE
OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN
ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT

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ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT
THAT THE LENDER BY ACCEPTANCE OF THIS GUARANTEE OR ANY GUARANTOR HAS OR
HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY
LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT,
ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND SUCH GUARANTOR, EACH ON
ITS OWN BEHALF, HEREBY IRREVOCABLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW
SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTEE.

SECTION 5.13. Counterparts. This Guarantee may be executed by the parties hereto
in several counterparts, each of which shall be an original and all of which
shall constitute together but one and the same agreement. This Guarantee shall
become effective when counterparts hereof executed on behalf of each Guarantor
shall have been received by the Lender. Delivery of an executed counterpart of a
signature page to this Guarantee by email (e.g. “pdf” or “tiff”) or telecopy
shall be effective as delivery of a manually executed counterpart of this
Guarantee. The words “execution,” “signed,” “signature,” and words of like
import in this Guarantee shall be deemed to include electronic signatures or the
keeping of records in electronic form, each of which shall be of the same legal
effect, validity or enforceability as a manually executed signature or the use
of a paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

SECTION 5.14. Waiver of Jury Trial. THE LENDER BY ACCEPTANCE OF THIS GUARANTEE
AND EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE
FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS GUARANTEE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR ANY GUARANTOR
IN CONNECTION HEREWITH. EACH GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS
RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER
PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS
PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER TO ENTER INTO THE LOAN
DOCUMENTS.

[  Signature Page Follows ]

 

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IN WITNESS WHEREOF, each Guarantor has caused this Guarantee to be duly executed
and delivered by its Authorized Officer as of the date first above written.

 

NATERA INTERNATIONAL, INC.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

NSTX, INC.

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

[  Signature Page to Guarantee ]

 

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ANNEX I to Guarantee

SUPPLEMENT TO

GUARANTEE

This SUPPLEMENT, dated as of                           ,         (this
“Supplement”), is to the Guarantee, dated as of August 8, 2017 (as amended,
supplemented, amended and restated or otherwise modified from time to time, the
“Guarantee”), by the Guarantors (such term, and other terms used in this
Supplement, to have the meanings set forth in Article I of the Guarantee) from
time to time party thereto, in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a
Delaware Limited Partnership (together with its Affiliates, successors,
transferees and assignees, the “Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to a Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented, or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”) and the
Lender, the Lender has extended a Commitment to make the Loans to the Borrower;

WHEREAS, pursuant to the provisions of Section 5.5 of the Guarantee, each of the
undersigned is becoming a Guarantor under the Guarantee; and

WHEREAS, each of the undersigned desires to become a “Guarantor” under the
Guarantee in order to induce the Lender to continue to extend Loans under the
Credit Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, each of the undersigned agrees, for the benefit
of the Lender, as follows.

SECTION 1. Party to Guarantee, etc. In accordance with the terms of the
Guarantee, by its signature below, each of the undersigned hereby irrevocably
agrees to become a Guarantor under the Guarantee with the same force and effect
as if it were an original signatory thereto and each of the undersigned hereby
(a) agrees to be bound by and comply with all of the terms and provisions of the
Guarantee applicable to it as a Guarantor and (b) represents and warrants that
the representations and warranties made by it as a Guarantor thereunder are true
and correct as of the date hereof, unless stated to relate solely to an earlier
date, in which case such representations and warranties shall be true and
correct as of such earlier date. In furtherance of the foregoing, each reference
to a “Guarantor” and/or “Guarantors” in the Guarantee shall be deemed to include
each of the undersigned.

SECTION 2. Representations. Each of the undersigned Guarantors hereby represents
and warrants that this Supplement has been duly authorized, executed and
delivered by it and

 

 

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that this Supplement and the Guarantee constitute its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

SECTION 3. Full Force of Guarantee. Except as expressly supplemented hereby, the
Guarantee shall remain in full force and effect in accordance with its terms.

SECTION 4. Severability. Wherever possible each provision of this Supplement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Supplement shall be prohibited by
or invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Supplement or the Guarantee.

SECTION 5. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR
OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR
ANY DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK). This Supplement, along with the other Loan Documents, constitutes
the entire understanding among the parties hereto with respect to the subject
matter thereof and supersedes any prior agreements, written or oral, with
respect thereto.

SECTION 6. Effective. This Supplement shall become effective when a counterpart
hereof executed by the Guarantor shall have been received by the Lender.
Delivery of an executed counterpart of a signature page to this Agreement by
email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

[  Signature Page Follows ]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused this Supplement to be
duly executed and delivered by its Authorized Officer as of the date first above
written.

 

 

[NAME OF ADDITIONAL SUBSIDIARY]

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

[NAME OF ADDITIONAL SUBSIDIARY]

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

[  Signature Page to Guarantee Supplement ]

 

 

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EXHIBIT E

FORM OF PLEDGE AND SECURITY AGREEMENT

This PLEDGE AND SECURITY AGREEMENT, dated as of August 8, 2017 (as amended,
supplemented or otherwise modified from time to time, this “Security
Agreement”), is made by NATERA, INC., a Delaware corporation (the “Borrower”),
NATERA INTERNATIONAL, INC., a Delaware corporation and NSTX, INC. a Delaware
corporation (together with the Borrower and with any other entity that may
become a party hereto as provided herein, each a “Grantor” and, collectively,
the “Grantors”) in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware
limited partnership (together with its successors, transferees and assignees,
the “Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to the Credit Agreement, dated as of August 8, 2017 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), by and between the Borrower and the Lender, the Lender has extended
a Commitment to make Loans to the Borrower; and

WHEREAS, as a condition precedent to the making of the Initial Loan under the
Credit Agreement, each Grantor is required to execute and deliver this Security
Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, each Grantor agrees, for the benefit of the
Lender, as follows:

ARTICLE I

DEFINITIONS

SECTION 1.1. Certain Terms. The following terms (whether or not underscored)
when used in this Security Agreement, including its preamble and recitals, shall
have the following meanings (such definitions to be equally applicable to the
singular and plural forms thereof):

“Borrower” is defined in the preamble.

“Collateral” is defined in Section 2.1.

“Collateral Account” is defined in Section 4.3.

“Computer and Software Collateral” means (a) all software programs (including
both source code, object code and all related applications and data files)
designed for use on computers and electronic data processing hardware,
integrated computer systems, central processing units, memory units, display
terminals, printers, features, computer elements, card readers, tape drives,
hard and soft disk drives, cables, electrical supply hardware, generators, power
equalizers, accessories and all peripheral devices and other related computer
hardware, including all operating system software, utilities and application
programs in whatsoever form; (b) all firmware associated therewith; (c) all
documentation (including flow charts, logic diagrams, manuals, guides,
specifications, training materials, charts and pseudo codes) with

 

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respect to such software and firmware described in the preceding clauses (a) and
(b); and (d) all rights with respect to all of the foregoing, including
copyrights, licenses, options, warranties, service contracts, program services,
test rights, maintenance rights, support rights, improvement rights, renewal
rights and indemnifications and any substitutions, replacements, improvements,
error corrections, updates, additions or model conversions of any of the
foregoing.

“Control Agreement” means an authenticated record in form and substance
reasonably satisfactory to the Lender, that provides for the Lender to have
“control” (as defined in the UCC) over certain Collateral.

“Copyright Collateral” means all Copyrights of the Grantors, including the
Copyrights referred to in Item A of Schedule V, and all applications for
registration thereof, and all exclusive inbound copyright licenses, including
each copyright license referred to in Item B of Schedule V, the right to sue for
past, present and future infringements of any of the foregoing, all rights
corresponding thereto, all extensions and renewals of any thereof and all
Proceeds of the foregoing, including licenses, royalties, income, payments,
claims, damages and Proceeds of suit, which are owned or exclusively in-licensed
by the Grantors.

“Credit Agreement” is defined in the first recital.

“Distributions” means all dividends paid on Capital Securities, liquidating
dividends paid on Capital Securities, shares (or other designations) of Capital
Securities resulting from (or in connection with the exercise of) stock splits,
reclassifications, warrants, options, non-cash dividends, mergers,
consolidations, and all other distributions (whether similar or dissimilar to
the foregoing) on or with respect to any Capital Securities constituting
Collateral.

“Excluded Capital Securities” means 35% of the issued and outstanding Voting

Securities of any Subsidiary organized outside the United States if and to the
extent a 956 Impact would result from pledging 100% of the issued and
outstanding Voting Securities in such Subsidiary.

“Filing Statements” is defined in clause (b) of Section 3.7.

“General Intangibles” means all “general intangibles” and all “payment
intangibles”, each as defined in the UCC, and shall include all interest rate or
currency protection or hedging arrangements, all tax refunds, all licenses,
permits, concessions and authorizations and all Intellectual Property Collateral
(in each case, regardless of whether characterized as general intangibles under
the UCC).

“Grantor” and “Grantors” are defined in the preamble.

“Intellectual Property Collateral” means, collectively, the Computer and
Software Collateral, the Copyright Collateral, the Patent Collateral, the
Trademark Collateral, and the Trade Secrets Collateral.

“Intercompany Note” means any promissory note evidencing loans made by any
Grantor to any other Grantor.

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“Investment Property” means, collectively, (a) all “investment property” as such
term is defined in Section 9-102(a)(49) of the UCC and (b) whether or not
constituting “investment property” as so defined, all Pledged Notes.

“Lender” is defined in the preamble.
“Patent Collateral” means:

(a)         all of the Grantors’ Patents throughout the world, including each
patent and patent application referred to in Item A of Schedule III;

(b)         all reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations of any of the items described in clause
(a);

(c)         all patent licenses, and other agreements providing any Grantor with
the right to use any items of the type referred to in clauses (a) and (b) above;
and

(d)         all Proceeds of, and rights associated with, the foregoing
(including licenses, royalties income, payments, claims, damages and Proceeds of
infringement suits) and the right to sue third parties for past, present or
future infringements of any Patent and for breach and enforcement of any patent
license.

“Permitted Liens” means all Liens permitted by Section 8.3 of the Credit
Agreement.

“Pledged Notes” means all promissory notes listed on Item J of Schedule II (as
such schedule may be amended or supplemented from time to time), all
Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor.

“Securities Act” is defined in clause (a) of Section 6.2.

“Security Agreement” is defined in the preamble.

“Trade Secrets Collateral” means all of the Grantors’ common law and statutory
trade secrets and all other confidential, proprietary or useful information,
including inventions and discoveries (whether or not patentable and/or reduced
to practice), and all know-how obtained by or used in or contemplated at any
time for use in the business of any Grantor (all of the foregoing being
collectively called a “Trade Secret”), whether or not such Trade Secret has been
reduced to a writing or other tangible form, including all Trade Secret
licenses, and including the right to sue for and to enjoin and to collect
damages for the actual or threatened misappropriation of any Trade Secret and
for the breach or enforcement of any such Trade Secret license.

“Trademark Collateral” means :

(a)          (i) all of the Grantors’ Trademarks, now existing or hereafter
adopted or acquired including those referred to in Item A of Schedule IV,
whether currently in use or not, all registrations and recordings thereof and
all applications in connection therewith, whether pending or filed, including
registrations, recordings and applications in the United States Patent and
Trademark Office or in any office or agency of the United States

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of America, or any State thereof or any other country or political subdivision
thereof or otherwise, and all common-law rights relating to the foregoing, and
(ii) the right to obtain all reissues, extensions or renewals of the foregoing;

(b)         all Trademark licenses for the grant by or to any Grantors of any
right to use any Trademark;

(c)         all of the goodwill of the business connected with the use of, and
symbolized by the items described in, clause (a), and to the extent applicable,
clause (b);

(d)         the right to sue third parties for past, present and future
infringements of any Trademark Collateral described in clause (a), and to the
extent applicable, clause (b); and

(e)         all Proceeds of, and rights associated with, the foregoing,
including any claim by any Grantor against third parties for past, present or
future infringement or dilution of any Trademark, Trademark registration, or
Trademark license, for any injury to the goodwill associated with the use of any
such Trademark or for breach and enforcement of a Trademark license, and all
rights corresponding thereto throughout the world.

SECTION 1.2. Credit Agreement Definitions. Unless otherwise defined herein or
the context otherwise requires, terms used in this Security Agreement, including
its preamble and recitals, have the meanings provided in the Credit Agreement.

SECTION 1.3. UCC Definitions. When used herein the terms “Account”, “Certificate
of Title”, “Certificated Securities”, “Chattel Paper”, “Commercial Tort Claim”,
“Commodity Account”, “Commodity Contract”, “Deposit Account”, “Document”,
“Electronic Chattel Paper”, “Equipment”, “Goods”, “Instrument”, “Inventory”,
“Letter-of-Credit Rights”, “Payment Intangibles”, “Proceeds”, “Promissory
Notes”, “Securities Account”, “Security Entitlement”, “Supporting Obligations”
and “Uncertificated Securities” have the meaning provided in Article 8 or
Article 9, as applicable, of the UCC. “Letters of Credit” has the meaning
provided in Section 5-102 of the UCC.

ARTICLE II

SECURITY INTEREST

SECTION 2.1. Grant of Security Interest. Each Grantor hereby grants to the
Lender, for its benefit, a continuing security interest in all of such Grantor’s
right, title and interest in and to the following property, whether now or
hereafter existing, owned or acquired by such Grantor, and wherever located,
(collectively, the “Collateral”):

(a)         all Accounts;

(b)         all Chattel Paper (including Electronic Chattel Paper);

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(c)         all Commercial Tort Claims listed on Item I of Schedule II (as such
schedule may be amended or supplemented from time to time);

(d)         all Commodity Accounts and Commodity Contracts;

(e)         all Deposit Accounts;

(f)         all Documents;

(g)         all Equipment;

(h)         all Fixtures;

(i)         all General Intangibles;

(j)         all Goods (including Goods held on consignment with third parties);

(k)         all Instruments (including Promissory Notes);

(l)         all Inventory;

(m)         all Investment Property;

(n)         all Letter-of-Credit Rights and Letters of Credit;

(o)         all Payment Intangibles;

(p)         all Securities Accounts and Securities Entitlements;

(q)         all Supporting Obligations;

(r)         all books, records, writings, databases, information and other
property relating to, used or useful in connection with, evidencing, embodying,
incorporating or referring to, any of the foregoing in this Section;

(s)         all Proceeds of the foregoing and, to the extent not otherwise
included, (A) all payments under insurance (whether or not the Lender is the
loss payee thereof) in respect of Collateral and (B) all tort claims; and

(t)         all other property and rights of every kind and description and
interests therein.

Notwithstanding the foregoing, the term “Collateral” shall not include:

(i)         any General Intangibles or other rights arising under any contracts,
instruments, licenses or other documents as to which the grant of a security
interest would (A) constitute a violation of a valid and enforceable restriction
in favor of a third party on such grant, unless and until any required consents
shall

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have been obtained, or (B) give any other party to such contract, instrument,
license or other document the right to terminate its obligations thereunder;

(ii)         trademark applications filed in the United States Patent and
Trademark Office on the basis of such Grantor’s “intent to use” such trademark,
unless and until acceptable evidence of use of the Trademark has been filed with
the United States Patent and Trademark Office pursuant to Section 1(c) or
Section 1(d) of the Lanham Act (15 U.S.C. 1051, et seq.), to the extent that
granting a Lien in such Trademark application prior to such filing would
adversely affect the enforceability or validity of such Trademark application;

(iii)         any asset, the granting of a security interest in which would be
void or illegal under any applicable governmental law, rule or regulation, or
pursuant thereto would result in, or permit the termination of, such asset;

(iv)         any asset subject to a Permitted Lien (other than Liens in favor of
the Lender) securing obligations permitted under the Credit Agreement to the
extent that the grant of other Liens on such asset (A) would result in a breach
or violation of, or constitute a default under, the agreement or instrument
governing such Permitted Lien, (B) would result in the loss of use of such asset
or (C) would permit the holder of such Permitted Lien to terminate the Grantor’s
use of such asset;

(v)         any Excluded Account;

(vi)         any assets securing Liens in favor of UBS Bank USA to the extent
permitted by the Credit Agreement; or

(vii)         any Excluded Capital Securities.

provided, that the property described in paragraphs (i), (iii) and (iv) above
shall only be excluded from the term “Collateral” to the extent the conditions
stated in such paragraphs are not rendered ineffective pursuant to Sections
9-406, 9-407, 9-408 or 9-409 of the UCC or any other applicable law.

SECTION 2.2. Security for Obligations. This Security Agreement and the
Collateral in which the Lender is granted a security interest hereunder by the
Grantors secure, on an equal and ratable basis, the payment and performance of
all of the Obligations.

SECTION 2.3. Grantors Remain Liable. Anything herein to the contrary
notwithstanding:

(a)         the Grantors will remain liable under the contracts and agreements
included in the Collateral to the extent set forth therein, and will perform all
of their duties and obligations under such contracts and agreements to the same
extent as if this Security Agreement had not been executed;

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(b)         the exercise by the Lender of any of its rights hereunder will not
release any Grantor from any of its duties or obligations under any such
contracts or agreements included in the Collateral; and

(c)         the Lender will not have any obligation or liability under any
contracts or agreements included in the Collateral by reason of this Security
Agreement, nor will the Lender be obligated to perform any of the obligations or
duties of any Grantor thereunder or to take any action to collect or enforce any
claim for payment assigned hereunder.

SECTION 2.4. Distributions on Capital Securities In the event that any
Distribution with respect to any Capital Securities pledged hereunder is
permitted to be paid pursuant to Section 8.6 of the Credit Agreement, such
Distribution or may be paid directly to the applicable Grantor. If any
Distribution is made in contravention of Section 8.6 of the Credit Agreement,
such Grantor shall hold the same segregated and in trust for the Lender until
paid to the Lender in accordance with Section 4.1.5.

SECTION 2.5. Security Interest Absolute, etc. This Security Agreement shall in
all respects be a continuing, absolute, unconditional and irrevocable grant of
security interest, and shall remain in full force and effect until the
Termination Date. All rights of the Lender and the security interests granted to
the Lender hereunder, and all obligations of the Grantors hereunder, shall, to
the fullest extent permitted by applicable law, in each case, be absolute,
unconditional and irrevocable irrespective of:

(a)         any lack of validity, legality or enforceability of any Loan
Document (other than this Security Agreement);

(b)         the failure of the Lender (i) to assert any claim or demand or to
enforce any right or remedy against the Borrower or any of the Subsidiaries or
any other Person (including any other Grantor) under the provisions of any Loan
Document or otherwise, or (ii) to exercise any right or remedy against any other
guarantor (including any other Grantor) of, or Collateral securing, any
Obligations;

(c)         any change in the time, manner or place of payment of, or in any
other term of, all or any part of the Obligations, or any other extension,
compromise or renewal of any Obligations;

(d)         any reduction, limitation, impairment or termination of any
Obligations for any reason, including any claim of waiver, release, surrender,
alteration or compromise, and shall not be subject to (and each Grantor hereby
waives, until payment of all Obligations, any right to or claim of) any defense
or setoff, counterclaim, recoupment or termination whatsoever by reason of the
invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any Obligations
or otherwise;

(e)         any amendment to, rescission, waiver, or other modification of, or
any consent to or departure from, any of the terms of any Loan Document;

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(f)         any addition, exchange or release of any Collateral or of any Person
that is (or will become) a Grantor (including the Grantors hereunder), or any
surrender or non-perfection of any Collateral, or any amendment to or waiver or
release or addition to, or consent to or departure from, any other guaranty held
by the Lender securing any of the Obligations; or

(g)         any other circumstance which might otherwise constitute a defense
available to, or a legal or equitable discharge of the Borrower or any of the
Subsidiaries, any surety or any guarantor.

SECTION 2.6. Postponement of Subrogation. Each Grantor agrees that it will not
exercise any rights against another Grantor which it may acquire by way of
rights of subrogation under any Loan Document to which it is a party until
following the Termination Date. No Grantor shall seek or be entitled to seek any
contribution or reimbursement from the Borrower or any of the Subsidiaries, in
respect of any payment made under any Loan Document or otherwise, until
following the Termination Date. Any amount paid to any Grantor on account of any
such subrogation rights prior to the Termination Date shall be held in trust for
the benefit of the Lender and shall immediately be paid and turned over to the
Lender in the exact form received by such Grantor (duly endorsed in favor of the
Lender, if required), to be credited and applied against the Obligations,
whether matured or unmatured, in accordance with Section 6.1(b); provided that
if such Grantor has made payment to the Lender of all or any part of the
Obligations and the Termination Date has occurred, then at such Grantor’s
request, the Lender will, at the expense of such Grantor, execute and deliver to
such Grantor appropriate documents (without recourse and without representation
or warranty) necessary to evidence the transfer by subrogation to such Grantor
of an interest in the Obligations resulting from such payment. In furtherance of
the foregoing, at all times prior to the Termination Date, such Grantor shall
refrain from taking any action or commencing any proceeding against the Borrower
or any of the Subsidiaries (or their successors or assigns, whether in
connection with a bankruptcy proceeding or otherwise) to recover any amounts in
respect of payments made under this Security Agreement to the Lender.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

In order to induce the Lender to enter into the Credit Agreement and make the
Loans thereunder, the Grantors represent and warrant to the Lender as set forth
below.

SECTION 3.1. As to Capital Securities of the Subsidiaries, Investment Property.

(a)         With respect to any Subsidiary of any Grantor that is

(i)         a corporation, business trust, joint stock company or similar
Person, all Capital Securities issued by such Subsidiary are duly authorized and
validly issued, fully paid and non-assessable, and represented by a certificate
or certificates; and

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(ii)         a partnership or limited liability company, no Capital Securities
issued by such Subsidiary (A) is dealt in or traded on securities exchanges or
in securities markets, (B) expressly provides that such Capital Securities is a
security governed by Article 8 of the UCC or (C) is held in a Securities
Account, except, with respect to this clause (a)(ii), Capital Securities (x) for
which the Lender is the registered owner or (y) with respect to which the issuer
has agreed in an authenticated record with such Grantor and the Lender to comply
with any instructions of the Lender without the consent of such Grantor.

(b)         Each Grantor has delivered all Certificated Securities constituting
Collateral held by such Grantor in a Subsidiary on the later of the Closing Date
or the date such Grantor becomes a party to this Security Agreement to the
Lender, together with duly executed undated blank stock powers, or other
equivalent instruments of transfer acceptable to the Lender.

(c)         With respect to Uncertificated Securities constituting Collateral
owned by any Grantor in a Subsidiary on the later of the Closing Date or the
date such Grantor becomes a party to this Security Agreement, such Grantor has
caused the issuer thereof to agree in an authenticated record with such Grantor
and the Lender that such issuer will comply with instructions with respect to
such security originated by the Lender without further consent of such Grantor
(which instructions the Lender hereby agrees not to give unless an Event of
Default has occurred and is continuing). Each party hereto that is such an
issuer of any Uncertificated Securities hereby agrees that such party will
comply with instructions with respect to such security originated by the Lender
(which instructions the Lender hereby agrees not to give unless an Event of
Default has occurred and is continuing).

(d)         The percentage of the issued and outstanding Capital Securities of
each Subsidiary pledged on the Closing Date by each Grantor hereunder is as set
forth on Schedule I. All shares of such Capital Securities have been duly and
validly issued and are fully paid and nonassessable.

(e)         Each of the Intercompany Notes constitutes the legal, valid and
binding obligation of the obligor with respect thereto, enforceable in
accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an
implied covenant of good faith and fair dealing.

SECTION 3.2. Grantor Name, Location, etc. In each case as of the date hereof:

(a)          (i) The jurisdiction in which each Grantor is located for purposes
of Sections 9-301 and 9-307 of the UCC and (ii) the address of each Grantor’s
executive office and principal place of business is set forth in Item A of
Schedule II.

(b)         The Grantors do not have any trade names other than those set forth
in Item C of Schedule II hereto.

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(c)         During the twelve months preceding the later of (i) the date hereof
or (ii) the date such Grantor becomes a party to this Security Agreement, no
Grantor has been known by any legal name different from the one set forth on the
signature page hereto, nor has such Grantor been the subject of any merger or
other corporate reorganization, except as set forth in Item D of Schedule II
hereto.

(d)         Each Grantor’s federal taxpayer identification number (or foreign
equivalent) is (and, during the twelve months preceding the date hereof, such
Grantor has not had a federal taxpayer identification number (or equivalent)
different from that) set forth in Item E of Schedule II hereto.

(e)         No Grantor is a party to any federal, state or local government
contract except as set forth in Item F of Schedule II hereto.

(f)         No Grantor maintains any Deposit Accounts, Securities Accounts or
Commodity Accounts with any Person, in each case, except as set forth on Item G
of Schedule II.

(g)         No Grantor is the beneficiary of any Letters of Credit, except as
set forth on Item H of Schedule II.

(h)         No Grantor has Commercial Tort Claims except as set forth on Item I
of Schedule II.

(i)         The name set forth on the signature page attached hereto is the true
and correct legal name (as defined in the UCC) of each Grantor.

SECTION 3.3. Ownership, No Liens, etc. Each Grantor owns its Collateral
purported to be owned by it free and clear of any Lien, except for any security
interest (a) created by this Security Agreement and (b) Permitted Liens. No
effective UCC financing statement or other filing similar in effect covering all
or any part of the Collateral is on file in any recording office, except those
filed in favor of the Lender relating to this Security Agreement, Permitted
Liens or as to which a duly authorized termination statement relating to such
UCC financing statement or other instrument has been delivered to the Lender on
the Closing Date.

SECTION 3.4. Possession of Inventory, Control; etc.

(a)         Each Grantor has, and agrees that it will maintain, exclusive
possession of its Documents, Instruments, Promissory Notes, Equipment and
Inventory, other than (i) Equipment and Inventory that is in transit in the
ordinary course of business, (ii) Equipment and Inventory that in the ordinary
course of business is in the possession or control of a warehouseman, bailee
agent or other Person (other than a Person controlled by or under common control
with such Grantor) that has been notified of the security interest created in
favor of the Lender pursuant to this Security Agreement and, such Grantor shall
use commercially reasonable efforts to receive an authenticated record from such
warehouseman, bailee agent or other Person acknowledging that it holds
possession of such Collateral for the Lender’s benefit and waives any Lien held
by it against such Collateral, (iii) Inventory that is in the possession of a
consignee in the ordinary course of

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business and (iv) Instruments or Promissory Notes that have been delivered to
the Lender pursuant to Section 3.5. In the case of Equipment or Inventory
described in clause (ii) above, no lessor or warehouseman of any premises or
warehouse upon or in which such Equipment or Inventory is located has (x) issued
any warehouse receipt or other receipt in the nature of a warehouse receipt in
respect of any such Equipment or Inventory, (y) issued any Document for any such
Equipment or Inventory or (z) any Lien (other than Permitted Liens) on any such
Equipment or Inventory.

(b)         Each Grantor is the sole entitlement holder of its Deposit Accounts
and no other Person (other than the Lender pursuant to this Security Agreement
or any other Person with respect to Permitted Liens) has control or possession
of, or any other interest in, any of its Deposit Accounts or any other
securities or property credited thereto.

SECTION 3.5. Negotiable Documents, Instruments and Chattel Paper. Each Grantor
has delivered to the Lender possession of all originals of all Documents,
Instruments, Promissory Notes, and tangible Chattel Paper (other than any
Document, Instrument, Promissory Note or tangible Chattel Paper not exceeding
$100,000 in principal amount) owned or held by such Grantor on the Closing Date.

SECTION 3.6. Intellectual Property Collateral. Except as disclosed on Schedules
III through VI, with respect to any Intellectual Property Collateral:

(a)         such Grantor has not made a previous assignment, sale, transfer or
agreement constituting a present or future assignment, sale or transfer of any
Intellectual Property for purposes of granting a security interest or as
collateral that has not been terminated or released; and

(b)         such Grantor has executed and delivered to the Lender security

agreements for all Copyrights, Patents and Trademarks owned by such Grantor,
including all Copyrights, Patents and Trademarks on Schedule III through VI (as
such schedules may be amended or supplemented from time to time by notice by
such Grantor to the Lender).

SECTION 3.7. Validity, etc.

(a)         This Security Agreement creates a valid security interest in the
Collateral securing the payment of the Obligations to the extent such security
interest may be created pursuant to Article 9 of the UCC.

(b)         As of the Closing Date, each Grantor has filed or caused to be filed
all UCC-1 financing statements in the filing office for each Grantor’s
jurisdiction of organization listed in Item A of Schedule II (collectively, the
“Filing Statements”) (delivered to the Lender the Filing Statements suitable for
timely and proper filing in such offices) and has taken all other actions
requested by the Lender necessary for the Lender to obtain control of the
Collateral as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC.

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(c)         Upon the filing of the Filing Statements with the appropriate
agencies therefor the security interests created under this Security Agreement
shall constitute a perfected security interest in the Collateral described on
such Filing Statements in favor of the Lender to the extent that a security
interest therein may be perfected by filing a financing statement pursuant to
the relevant UCC, prior to all other Liens, except for Permitted Liens (in which
case such security interest shall be second in priority of right only to the
Permitted Liens entitled to priority).

SECTION 3.8. Authorization, Approval, etc. Except as have been obtained or made
and are in full force and effect, no authorization, approval or other action by,
and no notice to or filing with, any Governmental Authority or any other third
party is required either:

(a)         for the grant by the Grantors of the security interest granted
hereby or for the execution, delivery and performance of this Security Agreement
by the Grantors;

(b)         for the perfection or maintenance of the security interests
hereunder (except with respect to the Filing Statements or, with respect to
Intellectual Property Collateral, the recordation of any agreements with the
United States Patent and Trademark Office or the United States Copyright Office
or, with respect to foreign Intellectual Property Collateral, the taking of
appropriate action under applicable foreign law and, with respect to
after-acquired Intellectual Property Collateral, any subsequent filings in
United States intellectual property offices or the taking of appropriate action
under applicable foreign law); or

(c)         for the exercise by the Lender of the voting or other rights
provided for in this Security Agreement, except (i) with respect to any
securities issued by a Subsidiary of the Grantors, as may be required in
connection with a disposition of such securities by laws affecting the offering
and sale of securities generally, the remedies in respect of the Collateral
pursuant to this Security Agreement and (ii) any “change of control” or similar
filings required by state licensing agencies.

SECTION 3.9. Best Interests. It is in the best interests of each Grantor (other
than the Borrower) to execute this Security Agreement inasmuch as such Grantor
will, as a result of being an Affiliate of the Borrower, derive substantial
direct and indirect benefits from the Loans made to the Borrower by the Lender
pursuant to the Credit Agreement, and each Grantor agrees that the Lender is
relying on this representation in agreeing to make such Loans pursuant to the
Credit Agreement to the Borrower.

ARTICLE IV

COVENANTS

Each Grantor covenants and agrees that, until the Termination Date, such Grantor
will perform, comply with and be bound by the obligations set forth below.

SECTION 4.1. As to Investment Property, etc.

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SECTION 4.1.1. Capital Securities of Subsidiaries. No Grantor will allow any of
its Subsidiaries:

(a)          [Omitted];

(b)         that is a partnership or limited liability company, to (i) issue
Capital Securities that are to be dealt in or traded on securities exchanges or
in securities markets, (ii) expressly provide in its Organic Documents that its
Capital Securities are securities governed by Article 8 of the UCC, or (iii)
place such Subsidiary’s Capital Securities in a Securities Account; and

(c)         to issue Capital Securities in addition to or in substitution for
the Capital Securities pledged hereunder, except to such Grantor (and such
Capital Securities are immediately pledged and delivered to the Lender pursuant
to the terms of this Security Agreement).

SECTION 4.1.2. Investment Property (other than Certificated Securities).

(a)         Subject to Section 7.16 of the Credit Agreement, with respect to any
Deposit Accounts, Securities Accounts, Commodity Accounts, Commodity Contracts
or Security Entitlements constituting Investment Property owned or held by any
Grantor, such Grantor will cause (except for Excluded Accounts) the intermediary
maintaining such Investment Property to execute a Control Agreement relating to
such Investment Property pursuant to which such intermediary agrees to comply
with the Lender’s instructions with respect to such Investment Property without
further consent by such Grantor (which instructions the Lender hereby agrees not
to give unless an Event of Default has occurred and is continuing).

(b)         With respect to any Uncertificated Securities (other than
Uncertificated Securities credited to a Securities Account) constituting
Investment Property owned or held by any Grantor, such Grantor will cause the
issuer of such securities that is not a party hereto to execute a Control
Agreement relating to such Investment Property pursuant to which the issuer
agrees to comply with the Lender’s instructions with respect to such
Uncertificated Securities without further consent by such Grantor (which
instructions the Lender hereby agrees not to give unless an Event of Default has
occurred and is continuing). Each party hereto that is such an issuer of any
Uncertificated Securities hereby agrees that such party will comply with
instructions with respect to such security originated by the Lender (which
instructions the Lender hereby agrees not to give unless an Event of Default has
occurred and is continuing).

SECTION 4.1.3. Certificated Securities (Stock Powers). Each Grantor agrees that
all Certificated Securities constituting Collateral, including the Capital
Securities delivered by such Grantor pursuant to this Security Agreement, will
be accompanied by duly executed undated blank stock powers, or other equivalent
instruments of transfer reasonably acceptable to the Lender.

SECTION 4.1.4. Continuous Pledge. Each Grantor will (subject to the terms of the
Credit Agreement) (a) promptly deliver to the Lender all Investment Property and
all Payment

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Intangibles to the extent that such Investment Property or Payment Intangibles
are evidenced by a Document, Instrument, Promissory Note or Chattel Paper (other
than any Document, Instrument, Promissory Note or Chattel Paper not exceeding
$100,000 in the principal amount), and (b) at all times keep pledged to the
Lender pursuant hereto, on a first-priority, perfected basis, security interest
therein and in all interest and principal with respect to such Payment
Intangibles, and all Proceeds and rights from time to time received by or
distributable to such Grantor in respect of any of the foregoing Collateral.
Each Grantor agrees that it will, promptly following receipt thereof, deliver to
the Lender possession of all originals of negotiable Documents, Instruments,
Promissory Notes and Chattel Paper that it acquires following the Closing Date
(other than any Document, Instrument, Promissory Note or Chattel Paper not
exceeding $100,000 in the principal amount).

SECTION 4.1.5. Voting Rights; Dividends, etc. Each Grantor agrees:

(a)         upon receipt of notice of the occurrence and continuance of an Event
of Default from the Lender and without any request therefor by the Lender, so
long as such Event of Default shall continue, to deliver (properly endorsed
where required hereby or requested by the Lender) to the Lender all dividends
and Distributions with respect to Investment Property, all interest, principal,
other cash payments on Payment Intangibles, and all Proceeds of the Collateral,
in each case thereafter received by such Grantor, all of which shall be held by
the Lender as additional Collateral, except for payments made in accordance with
Section 8.6 of the Credit Agreement; and

(b)         immediately upon the occurrence and during the continuance of an
Event of Default and so long as the Lender has notified such Grantor of the
Lender’s intention to exercise its voting power under this clause,

(i)         with respect to Collateral consisting of general partner interests
or limited liability company interests, to promptly modify its Organic Documents
to admit the Lender as a general partner or member, as applicable;

(ii)         that the Lender may exercise (to the exclusion of such Grantor) the
voting power and all other incidental rights of ownership with respect to any
Investment Property constituting Collateral and such Grantor hereby grants the
Lender an irrevocable proxy, exercisable under such circumstances, to vote such
Investment Property; and

(iii)         to promptly deliver to the Lender such additional proxies and
other documents as may be necessary to allow the Lender to exercise such voting
power.

All dividends, Distributions, interest, principal, cash payments, Payment
Intangibles and Proceeds that may at any time and from time to time be held by
such Grantor, but which such Grantor is then obligated to deliver to the Lender,
shall, until delivery to the Lender, be held by such Grantor separate and apart
from its other property in trust for the Lender. The Lender agrees that unless
an Event of Default shall have occurred and be continuing and the Lender shall
have given the notice referred to in clause (b), such Grantor will have the
exclusive voting power

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with respect to any Investment Property constituting Collateral and the Lender
will, upon the written request of such Grantor, promptly deliver such proxies
and other documents, if any, as shall be reasonably requested by such Grantor
which are necessary to allow such Grantor to exercise that voting power;
provided that no vote shall be cast, or consent, waiver, or ratification given,
or action taken by such Grantor that would impair any such Collateral or be
inconsistent with or violate any provision of any Loan Document.

SECTION 4.2. Change of Name, etc. No Grantor will change its name or place of
incorporation or organization or federal taxpayer identification number except
as otherwise permitted by the Credit Agreement.

SECTION 4.3. As to Accounts.

(a)         Each Grantor shall have the right to collect all Accounts so long as
no Event of Default shall have occurred and be continuing.

(b)         Upon (i) the occurrence and continuance of an Event of Default and
(ii) the delivery of notice by the Lender to each Grantor, all Proceeds of
Collateral received by such Grantor shall be delivered in kind to the Lender for
deposit in a Deposit Account of such Grantor maintained with the Lender or
otherwise is a Controlled Account (together with any other Deposit Accounts or
Controlled Accounts pursuant to which any portion of the Collateral is deposited
with the Lender, the “Collateral Accounts”), and such Grantor shall not
commingle any such Proceeds, and shall hold separate and apart from all other
property, all such Proceeds in express trust for the benefit of the Lender until
delivery thereof is made to the Lender.

(c)         Following the delivery of notice pursuant to clause (b)(ii), and so
long as an Event of Default shall have occurred and be continuing, the Lender
shall have the right to apply any amount in the Collateral Account to the
payment of any Obligations which are then due and payable in accordance with
Section 4.4(b) of the Credit Agreement.

(d)         With respect to each of the Collateral Accounts, it is hereby
confirmed and agreed that so long as an Event of Default shall have occurred and
be continuing, (i) deposits in such Collateral Accounts are subject to a
security interest as contemplated hereby, (ii) such Collateral Accounts shall be
under the control of the Lender and (iii) the Lender shall have the sole right
of withdrawal over such Collateral Account.

SECTION 4.4. As to Grantors Use of Collateral.

(a)         At any time following the occurrence and during the continuance of
an Event of Default, whether before or after the maturity of any of the
Obligations, the Lender may exercise any and all rights and remedies to which it
is lawfully entitled with respect to the Collateral.

(b)         Upon the request of the Lender following the occurrence and during
the continuance of an Event of Default, each Grantor will, at its own expense,
notify any parties obligated on any of the Collateral to make payment to the
Lender of any amounts due or to become due thereunder.

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(c)         At any time following the occurrence and during the continuation of
an Event of Default, the Lender may endorse, in the name of such Grantor, any
item, howsoever received by the Lender, representing any payment on or other
Proceeds of any of the Collateral.

SECTION 4.5. As to Intellectual Property Collateral. Each Grantor covenants and
agrees to comply with the following provision:

(a)         such Grantor will not (i) do or fail to perform any act whereby any
Patent Collateral may lapse or become abandoned or dedicated to the public or
unenforceable, (ii) permit any of its licensees of Trademark Collateral to (A)
fail to continue to use any Trademark Collateral if such failure could
reasonably be expected to result in any claim of abandonment for non-use, (B)
fail to maintain the quality of products and services offered under all of the
Trademark Collateral at a level substantially consistent with the quality of
products and services offered under such Trademark Collateral as of the date
hereof, (C) fail to employ all of the Trademark Collateral registered with any
federal or state or foreign authority with an appropriate notice of such
registration, or (D) do or permit any act or knowingly omit to do any act
whereby any of the Trademark Collateral may become invalid or unenforceable, or
(iii) do or permit any act or knowingly omit to do any act whereby any of the
Copyright Collateral or any of the Trade Secrets Collateral may lapse or become
invalid or unenforceable or placed in the public domain except upon expiration
of the end of an unrenewable term of a registration thereof, unless, in the case
of any of the foregoing requirements in clauses (i), (ii) and (iii), such
Grantor in its reasonable business judgment and in good faith determines that
either (x) such Intellectual Property Collateral is of negligible economic value
to such Grantor or (y) the loss of such Intellectual Property Collateral would
not be material to such Grantor;

(b)         such Grantor shall promptly (but no less often than quarterly)
notify the Lender if it knows, or has reason to know, that any application or
registration relating to any material item of the Intellectual Property
Collateral (excluding non-exclusive licenses of Intellectual Property) may, in
the Grantor’s reasonable commercial judgment, become abandoned or dedicated to
the public or placed in the public domain or invalid or unenforceable, or of any
adverse determination or development (including the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any foreign counterpart
thereof or any court) regarding such Grantor’s ownership of or the validity or
enforceability of any material Intellectual Property Collateral, or its right to
register the same or to keep and maintain and enforce the same; and

(c)         such Grantor will promptly (but no less than quarterly) execute and
deliver to the Lender (as applicable) a Patent Security Agreement, Trademark
Security Agreement and/or Copyright Security Agreement, as the case may be, in
the forms of Exhibit A, Exhibit B and Exhibit C hereto following its obtaining
an interest in any such Intellectual Property Collateral, and shall execute and
deliver to the Lender any and all agreements, instruments and documents
reasonably required to evidence the Lender’s interest in any part of such item
of Intellectual Property Collateral.

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SECTION 4.6. As to Letter-of-Credit Rights.

(a)         Each Grantor, by granting a security interest in its
Letter-of-Credit Rights to the Lender, intends to (and hereby does) collaterally
assign to the Lender its rights (including its contingent rights ) to the
Proceeds of all Letter-of-Credit Rights of which it is or hereafter becomes a
beneficiary or assignee.

(b)         Upon the occurrence of an Event of Default, such Grantor will,
promptly upon request by the Lender, (i) notify (and such Grantor hereby
authorizes the Lender to notify) the issuer and each nominated person with
respect to each of the Letters of Credit that the Proceeds thereof have been
assigned to the Lender hereunder and any payments due or to become due in
respect thereof are to be made directly to the Lender and (ii) arrange for the
Lender to become the transferee beneficiary of such Letter of Credit.

SECTION 4.7. As to Commercial Tort Claims. Each Grantor covenants and agrees
that, until the payment in full of the Obligations and termination of all
Commitments, with respect to any Commercial Tort Claim hereafter arising, it
shall deliver to the Lender a supplement in form and substance reasonably
satisfactory to the Lender, together with all supplements to schedules thereto,
identifying such new Commercial Tort Claim.

SECTION 4.8. Electronic Chattel Paper and Transferable Records. If any Grantor
at any time holds or acquires an interest in any electronic chattel paper or any
“transferable record,” as that term is defined in Section 201 of the U.S.
Federal Electronic Signatures in Global and National Commerce Act, or in Section
16 of the U.S. Uniform Electronic Transactions Act as in effect in any relevant
jurisdiction, with a value in excess of $100,000, such Grantor shall promptly
notify the Lender thereof and, at the request of the Lender, shall take such
action as the Lender may reasonably request to vest in the Lender control under
Section 9-105 of the UCC of such electronic chattel paper or control under
Section 201 of the Federal Electronic Signatures in Global and National Commerce
Act or, as the case may be, Section 16 of the Uniform Electronic Transactions
Act, as so in effect in such jurisdiction, of such transferable record. The
Lender agrees with such Grantor that the Lender will arrange, pursuant to
procedures satisfactory to the Lender and so long as such procedures will not
result in the Lender’s loss of control, for the Grantor to make alterations to
the electronic chattel paper or transferable record permitted under Section
9-105 of the UCC or, as the case may be, Section 201 of the U.S. Federal
Electronic Signatures in Global and National Commerce Act or Section 16 of the
U.S. Uniform Electronic Transactions Act for a party in control to allow without
loss of control, unless an Event of Default has occurred and is continuing or
would occur after taking into account any action by such Grantor with respect to
such electronic chattel paper or transferable record.

SECTION 4.9. Further Assurances, etc. Each Grantor agrees that, from time to
time at its own expense, it will, subject to the terms of this Agreement,
promptly execute and deliver all further instruments and documents, and take all
further action, that may be necessary or that the Lender may reasonably request,
in order to perfect, preserve and protect any security interest granted or
purported to be granted hereby or to enable the Lender to exercise and enforce
its rights and remedies hereunder with respect to any Collateral. Without
limiting the generality of the foregoing, such Grantor will

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(a)         from time to time upon the request of the Lender, promptly deliver
to the Lender such stock powers, instruments and similar documents, reasonably
satisfactory in form and substance to the Lender, with respect to such
Collateral as the Lender may request and will, from time to time upon the
request of the Lender, after the occurrence and during the continuance of any
Event of Default, promptly transfer any securities constituting Collateral into
the name of any nominee designated by the Lender; if any Collateral shall be
evidenced by an Instrument, negotiable Document, Promissory Note or tangible
Chattel Paper, deliver and pledge to the Lender hereunder such Instrument,
negotiable Document, Promissory Note or tangible Chattel Paper (other than any
Instrument, negotiable Document, Promissory Note or tangible Chattel Paper in
principal amount less than $100,000) duly endorsed and accompanied by duly
executed instruments of transfer or assignment, all in form and substance
reasonably satisfactory to the Lender;

(b)         file (and hereby authorize the Lender to file) such Filing
Statements or continuation statements, or amendments thereto, and such other
instruments or notices (including any assignment of claim form under or pursuant
to the federal assignment of claims statute, 31 U.S.C. § 3726, any successor or
amended version thereof or any regulation promulgated under or pursuant to any
version thereof), as may be necessary or that the Lender may reasonably request
in order to perfect and preserve the security interests and other rights granted
or purported to be granted to the Lender hereby;

(c)         at all times keep pledged to the Lender pursuant hereto, on a
first-priority, perfected basis, at the request of the Lender, all Investment
Property constituting Collateral, all dividends and Distributions with respect
thereto, and all interest and principal with respect to Promissory Notes, and
all Proceeds and rights from time to time received by or distributable to such
Grantor in respect of any of the foregoing Collateral;

(d)         not create any tangible Chattel Paper without placing a legend on
such tangible Chattel Paper reasonably acceptable to the Lender indicating that
the Lender has a security interest in such Chattel Paper;

(e)         furnish to the Lender, from time to time at the Lender’s reasonable
request, statements and schedules further identifying and describing the
Collateral and such other reports in connection with the Collateral all in
reasonable detail; and

(f)         do all things reasonably requested by the Lender in accordance with
this Security Agreement in order to enable the Lender to have and maintain
control over the Collateral consisting of Investment Property, Deposit Accounts,
Letter-of-Credit-Rights and Electronic Chattel Paper.

Each Grantor agrees that a carbon, photographic or other reproduction of this
Security Agreement or any UCC financing statement covering the Collateral or any
part thereof shall be sufficient as a UCC financing statement where permitted by
law. Each Grantor hereby authorizes the Lender to file financing statements
describing as the collateral covered thereby “all of the debtor’s personal
property or assets, whether now owned or hereafter acquired” or

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words to that effect, notwithstanding that such wording may be broader in scope
than the Collateral described in this Security Agreement.

ARTICLE V

THE LENDER

SECTION 5.1. Lender Appointed Attorney-in-Fact. Each Grantor hereby irrevocably
appoints the Lender as its attorney-in-fact, with full authority in the place
and stead of such Grantor and in the name of such Grantor or otherwise, from
time to time in the Lender’s discretion, following the occurrence and during the
continuance of an Event of Default, to take any action and to execute any
instrument which the Lender may deem necessary or advisable to accomplish the
purposes of this Security Agreement, including:

(a)         to ask, demand, collect, sue for, recover, compromise, receive and
give acquittance and receipts for moneys due and to become due under or in
respect of any of the Collateral;

(b)         to receive, endorse, and collect any drafts or other Instruments,
Documents and Chattel Paper, in connection with clause (a) above;

(c)         to file any claims or take any action or institute any proceedings
which the Lender may deem necessary or desirable for the collection of any of
the Collateral or otherwise to enforce the rights of the Lender with respect to
any of the Collateral; and

(d)         to perform the affirmative obligations of such Grantor hereunder.

Each Grantor hereby acknowledges, consents and agrees that the power of attorney
granted pursuant to this Section is irrevocable and coupled with an interest.

SECTION 5.2. Lender May Perform. If any Grantor fails to perform any agreement
contained herein, upon 5 days after the earlier to occur of (i) notice thereof
given to any such Grantor by the Lender or (ii) the date on which such Grantor
has knowledge of such failure, the Lender may itself perform, or cause
performance of, such agreement, that the Lender deems necessary for the
maintenance, preservation or protection of any of the Collateral or of its
security interest therein to the extent provided for herein, and the expenses of
the Lender incurred in connection therewith shall be payable by such Grantor
pursuant to Section 10.3 of the Credit Agreement.

SECTION 5.3. Lender Has No Duty. The powers conferred on the Lender hereunder
are solely to protect its interest in the Collateral and shall not impose any
duty on it to exercise any such powers. Except for reasonable care of any
Collateral in its possession and the accounting for moneys actually received by
it hereunder, the Lender shall have no duty as to any Collateral or
responsibility for

(a)         ascertaining or taking action with respect to calls, conversions,
exchanges, maturities, tenders or other matters relative to any Investment
Property, whether or not the Lender has or is deemed to have knowledge of such
matters, or

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(b)         taking any necessary steps to preserve rights against prior parties
or any other rights pertaining to any Collateral.

SECTION 5.4. Reasonable Care. The Lender is required to exercise reasonable care
in the custody and preservation of any of the Collateral in its possession;
provided that the Lender shall be deemed to have exercised reasonable care in
the custody and preservation of any of the Collateral, if it takes such action
for that purpose as each Grantor reasonably requests in writing at times other
than upon the occurrence and during the continuance of any Event of Default, but
failure of the Lender to comply with any such request at any time shall not in
itself be deemed a failure to exercise reasonable care.

SECTION 5.5. Lender as Agent for Other Secured Parties. The Lender hereby agrees
to act as agent of the other parties to which any Grantor may owe any
Obligations for all purposes hereunder and under the other Loan Documents
pursuant to which any Grantor grants a Lien or other right in any Collateral to
secure the Obligations, for purposes of acquiring, holding and enforcing any and
all Liens on any Collateral granted by any Grantor to secure any of the
Obligations. The Lender may appoint any co-agents, sub-agents or
attorneys-in-fact in connection with the foregoing.

ARTICLE VI

REMEDIES

SECTION 6.1. Certain Remedies. If any Event of Default shall have occurred and
be continuing:

(a)         The Lender may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all
the rights and remedies of the Lender on default under the UCC (whether or not
the UCC applies to the affected Collateral) and also may

(i)         take possession of any Collateral not already in its possession
without demand and without legal process;

(ii)         require each Grantor to, and each Grantor hereby agrees that it
will, at its expense and upon request of the Lender forthwith, assemble all or
part of the Collateral as directed by the Lender and make it available to the
Lender at a place to be designated by the Lender that is reasonably convenient
to both parties,

(iii)         enter onto the property where any Collateral is located and take
possession thereof without demand and without legal process; and

(iv)         without notice except as specified below, lease, license, sell or
otherwise dispose of the Collateral or any part thereof in one or more parcels
at any public or private sale, at any of the Lender’s offices or elsewhere, for
cash, on credit or for future delivery, and upon such other terms as the Lender
may deem commercially reasonable. Each Grantor agrees that, to the extent notice
of sale shall be required by law, at least ten (10) days’ prior notice to such
Grantor of the

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time and place of any public sale or the time after which any private sale is to
be made shall constitute reasonable notification. The Lender shall not be
obligated to make any sale of Collateral regardless of notice of sale having
been given. The Lender may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may, without
further notice, be made at the time and place to which it was so adjourned.

(b)         All cash Proceeds received by the Lender in respect of any sale of,
collection from, or other realization upon, all or any part of the Collateral
shall be applied by the Lender against all or any part of the Obligations as set
forth in Section 4.4(b) of the Credit Agreement.

(c)         The Lender may:

(i)         transfer all or any part of the Collateral into the name of the
Lender or its nominee, with or without disclosing that such Collateral is
subject to the Lien hereunder,

(ii)         notify the parties obligated on any of the Collateral to make
payment to the Lender of any amount due or to become due thereunder,

(iii)         withdraw, or cause or direct the withdrawal, of all funds with
respect to the Collateral Account;

(iv)         enforce collection of any of the Collateral by suit or otherwise,
and surrender, release or exchange all or any part thereof, or compromise or
extend or renew for any period (whether or not longer than the original period)
any obligations of any nature of any party with respect thereto,

(v)         endorse any checks, drafts, or other writings in any Grantor’s name
to allow collection of the Collateral,

(vi)         take control of any Proceeds of the Collateral, and

(vii)         execute (in the name, place and stead of any Grantor)
endorsements, assignments, stock powers and other instruments of conveyance or
transfer with respect to all or any of the Collateral.

SECTION 6.2. Securities Laws. If the Lender shall determine to exercise its
right to sell all or any of the Collateral that are Capital Securities pursuant
to Section 6.1(a)(iv), each Grantor acknowledges that the Lender may be unable
to effect a public sale or other disposition of the Capital Securities by reason
of certain prohibitions contained in the Securities Act of 1933, as from time to
time amended (the “Securities Act”), federal banking laws, and other applicable
laws, but may be compelled to resort to one or more private sales thereof to a
restricted group of purchasers. Each Grantor agrees that any such private sale
may be at prices and other terms less favorable to the seller than if sold at
public sales and that such private sales shall not solely by reason thereof be
deemed not to have been made in a commercially reasonable manner. The Lender
shall be under no obligation to delay a sale of any of the Capital Securities
for the period

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of time necessary to permit the issuer of such securities to register such
securities for public sale under the Securities Act, or such other federal
banking or other applicable laws, even if the issuer would agree to do so.
Subject to the foregoing, the Lender agrees that any sale of the Capital
Securities shall be made in a commercially reasonable manner, and each Grantor
agrees to use its reasonable best efforts to cause the issuer or issuers of the
Capital Securities contemplated to be sold, to execute and deliver, all at the
Grantors’ expense, all such instruments and documents, and to do or cause to be
done all such other acts and things as may be necessary or, in the reasonable
opinion of the Lender, advisable to exempt such Capital Securities from
registration under the provisions of the Securities Act, and to make all
amendments to such instruments and documents which, in the opinion of the
Lender, are necessary or advisable, all in conformity with the requirements of
the Securities Act and the rules and regulations of the Securities and Exchange
Commission applicable thereto. If the Lender shall determine to exercise its
right to sell all or any of the Collateral that are Capital Securities pursuant
to Section 6.1(a)(iv), each Grantor further agrees to use its reasonable best
efforts (a) to cause such issuer or issuers to exempt or comply with the
provisions of the securities or “Blue Sky” laws of any jurisdiction which the
Lender designates and obtain all necessary governmental approvals for the sale
of the Capital Securities, as requested by the Lender; (b) if required, to cause
such issuer or issuers to make available to its security holders, as soon as
practicable, an earnings statement (which need not be audited) which will
satisfy the provisions of Section 11(a) of the Securities Act; and (c) to do or
cause to be done all such other acts and things as may be necessary to make such
sale of the Collateral or any part thereof valid and binding and in compliance
with applicable law.

SECTION 6.3. Compliance with Restrictions. Each Grantor agrees that in any sale
of any of the Collateral whenever an Event of Default shall have occurred and be
continuing, the Lender is hereby authorized to comply with any limitation or
restriction in connection with such sale as it may be advised by counsel is
necessary in order to avoid any violation of applicable law (including
compliance with such procedures as may restrict the number of prospective
bidders and purchasers, require that such prospective bidders and purchasers
have certain qualifications, and restrict such prospective bidders and
purchasers to Persons who will represent and agree that they are purchasing for
their own account for investment and not with a view to the distribution or
resale of such Collateral), or in order to obtain any required approval of the
sale or of the purchaser by any Governmental Authority or official, and such
Grantor further agrees that such compliance shall not result in such sale being
considered or deemed not to have been made in a commercially reasonable manner,
nor shall the Lender be liable nor accountable to such Grantor for any discount
allowed by the reason of the fact that such Collateral is sold in compliance
with any such limitation or restriction.

SECTION 6.4. Protection of Collateral. The Lender may from time to time, at its
option, perform any act which any Grantor fails to perform after being requested
in writing so to perform (it being understood that no such request need be given
after the occurrence and during the continuance of an Event of Default) and the
Lender may from time to time take any other action which the Lender deems
necessary for the maintenance, preservation or protection of any of the
Collateral or of its security interest therein.

22

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ARTICLE VII

MISCELLANEOUS PROVISIONS

SECTION 7.1. Loan Document. This Security Agreement is a Loan Document executed
pursuant to the Credit Agreement and shall (unless otherwise expressly indicated
herein) be construed, administered and applied in accordance with the terms and
provisions thereof, including Article X thereof. Notwithstanding anything
contained herein to contrary, to the extent any provision in this Security
Agreement conflicts with any provision in the Credit Agreement, the terms of the
Credit Agreement shall control.

SECTION 7.2. Binding on Successors, Transferees and Assigns; Assignment. This
Security Agreement shall remain in full force and effect until the Termination
Date has occurred, shall be binding upon the Grantors and their successors,
transferees and assigns and shall inure to the benefit of and be enforceable by
the Lender; provided that no Grantor may assign any of its obligations hereunder
without the prior consent of the Lender.

SECTION 7.3. Amendments, etc. No amendment or modification to or waiver of any
provision of this Security Agreement, nor consent to any departure by any
Grantor from its obligations under this Security Agreement, shall in any event
be effective unless the same shall be in writing and signed by the Lender and
the Grantors and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

SECTION 7.4. Notices. All notices and other communications provided for
hereunder shall be delivered or made as provided in Section 10.2 of the Credit
Agreement.

SECTION 7.5. Release of Liens. Upon (a) the Disposition of any Collateral or
Grantor to a Person other than a Grantor or any Subsidiary thereof in accordance
with the Credit Agreement and this Security Agreement or (b) the occurrence of
the Termination Date, the security interest(s) granted herein shall
automatically terminate with respect to (i) such Collateral or Grantor, as the
case may be (in the case of clause (a)) or (ii) all Collateral and Grantors (in
the case of clause (b)). Upon any such Disposition or termination, the Lender
will, at the Grantors’ sole expense, deliver to the Grantors, without any
representations, warranties or recourse of any kind whatsoever, all Collateral
held by the Lender hereunder, and execute and deliver to the Grantors such
documents as the Grantors shall reasonably request to evidence such termination.

SECTION 7.6. Additional Grantors. Upon the execution and delivery by any other
Person of a supplement in the form of Annex I hereto, such Person shall become a
“Grantor” hereunder as of the date of such supplement with the same force and
effect as if it were originally a party to this Security Agreement and named as
a “Grantor” hereunder. The execution and delivery of such supplement shall not
require the consent of any other Grantor hereunder, and the rights and
obligations of each Grantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Grantor as a party to this Security
Agreement.

SECTION 7.7. No Waiver; Remedies. In addition to, and not in limitation of

Section 2.4, no failure on the part of the Lender to exercise, and no delay in
exercising, any right

hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right

23

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hereunder preclude any other or further exercise thereof or the exercise of any
other right. The remedies herein provided are cumulative and not exclusive of
any remedies provided by law.

SECTION 7.8. Section Captions. Section captions used in this Security Agreement
are for convenience of reference only and shall not affect the construction of
this Security Agreement.

SECTION 7.9. Severability. Any provision of this Security Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this Security
Agreement or affecting the validity or enforceability of such provision in any
other jurisdiction.

SECTION 7.10. Governing Law, Entire Agreement, etc. THIS SECURITY AGREEMENT AND
ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT
OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT
OR ANY OTHER LOAN DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
(INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Security Agreement, along with
the other Loan Documents, constitutes the entire understanding among the parties
hereto with respect to the subject matter thereof and supersedes any prior
agreements, written or oral, with respect thereto.

SECTION 7.11. Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED
HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS SECURITY
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF THE LENDER OR ANY GRANTOR IN CONNECTION HEREWITH SHALL
BE BROUGHT AND MAINTAINED IN THE COURTS OF THE BOROUGH OF MANHATTAN IN THE CITY
OF NEW YORK IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT
AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT THE LENDER’S OPTION,
IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE
FOUND. THE LENDER AND EACH GRANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR
WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION
10.2 OF THE CREDIT AGREEMENT. THE LENDER AND EACH GRANTOR HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE
LENDER OR ANY GRANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS

24

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(WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN
AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE
LENDER AND SUCH GRANTOR, EACH ON ITS OWN BEHALF, HEREBY IRREVOCABLY WAIVES TO
THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS
UNDER THIS SECURITY AGREEMENT.

SECTION 7.12. Counterparts. This Security Agreement may be executed by the
parties hereto in several counterparts, each of which shall be an original and
all of which shall constitute together but one and the same agreement. This
Security Agreement shall become effective when counterparts hereof executed on
behalf of all of the signatories hereto, shall have been received by the Lender.
Delivery of an executed counterpart of a signature page to this Security
Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement. The words
“execution,” “signed,” “signature,” and words of like import in any Loan
Document shall be deemed to include electronic signatures or the keeping of
records in electronic form, each of which shall be of the same legal effect,
validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable law, including the Federal Electronic Signatures
in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform Electronic
Transactions Act.

SECTION 7.13. Waiver of Jury Trial. THE LENDER AND EACH GRANTOR HEREBY
KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED
BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS SECURITY
AGREEMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL
OR WRITTEN) OR ACTIONS OF THE LENDER OR ANY GRANTOR IN CONNECTION HEREWITH. EACH
GRANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT
CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE LENDER TO ENTER INTO THE LOAN DOCUMENTS.

[Signature Page Follows]

 

25

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IN WITNESS WHEREOF, each of the parties hereto has caused this Security
Agreement to be duly executed and delivered by its Authorized Officer as of the
date first above written.

 

NATERA, INC.

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

NATERA INTERNATIONAL, INC.

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

NSTX, INC.

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

Signature Page to Security Agreement

 

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ORBIMED ROYALTY OPPORTUNITIES II,

 

LP,

 

 

 

as the Lender

 

 

 

By OrbiMed Advisors LLC,

 

its investment manager

 

 

 

By:

 

 

 

Name: Samuel D. Isaly

 

 

Title: Managing Member

 

 

Signature Page to Security Agreement

 

 

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EXHIBIT A

to Security Agreement

PATENT SECURITY AGREEMENT

This PATENT SECURITY AGREEMENT, dated as of          , 2017 (this “Agreement”),
is made by [________], a [        ] (the “Grantor”) in favor of ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware Limited Partnership, for itself and as agent
for the other parties to which the Grantors may owe any Obligations (together
with its Affiliates, successors, transferees and assignees, the “Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to a Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”) and the
Lender, the Lender has extended a Commitment to make the Loans to the Borrower;

WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates
have executed and delivered a Pledge and Security Agreement in favor of the
Lender, dated as of August 8, 2017 (as amended, supplemented or otherwise
modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (c) of Section
4.5 of the Security Agreement, the Grantor is required to execute and deliver
this Agreement and to grant to the Lender a continuing security interest in all
of the Grantor’s right, title and interest in and to all of the Patent
Collateral (as defined below) to secure all of the Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance
of this Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Grantor agrees, for the benefit of the
Lender, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Security
Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby grants to the Lender,
for its benefit, a continuing security interest in all of the Grantor’s right,
title and interest in and to the following property, whether now or hereafter
existing, owned or acquired by the Grantor, and wherever located (the “Patent
Collateral”):

(a)         all of its Patents throughout the world, including each patent and
patent application referred to in Item A of Schedule I;

 

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

 

(b)         all reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations of any of the items described in clause
(a); and

(c)         all Proceeds of, and rights associated with, the foregoing
(including licenses, royalties income, payments, claims, damages and Proceeds of
infringement suits) and the right to sue third parties for past, present or
future infringements of any Patent.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by
the Grantor for the purpose of registering the security interest of the Lender
in the Patent Collateral with the United States Patent and Trademark Office. The
security interest granted hereby has been granted in furtherance of, and not in
limitation of, the security interest granted to the Lender for its benefit under
the Security Agreement. The Security Agreement (and all rights and remedies of
the Lender thereunder) shall remain in full force and effect in accordance with
its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Patent Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination
Date, the security interests granted herein shall automatically terminate with
respect to (A) such Patent Collateral (in the case of clause (i)) or (B) all
Patent Collateral (in the case of clause (ii)). Upon any such Disposition or
termination, the Lender will, at the Grantor’s sole expense, deliver to the
Grantor, without any representations, warranties or recourse of any kind
whatsoever, all Patent Collateral held by the Lender hereunder, and execute and
deliver to the Grantor such documents as the Grantor shall reasonably request to
evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Lender with respect to the security
interest in the Patent Collateral granted hereby are more fully set forth in the
Security Agreement, the terms and provisions of which (including the remedies
provided for therein) are incorporated by reference herein as if fully set forth
herein.

SECTION 6. Loan Document. This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions
thereof, including

Article X thereof.

SECTION 7. Effective. This Agreement shall become effective when a counterpart
hereof executed by the Grantor, shall have been received by the Lender. Delivery
of an executed counterpart of a signature page to this Agreement by email (e.g.
“pdf” or “tiff”) or telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement. The words “execution,” “signed,”
“signature,” and words of like import in any Loan Document shall be deemed to
include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.

2

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 [Signature Page Follows]

 

3

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IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly
executed and delivered by its Authorized Officer as of the date first above
written.

 

[NAME OF GRANTOR]

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

Signature Page to Patent Security Agreement

 

 

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SCHEDULE I
to Patent Security Agreement

Item A. Patents

Issued Patents

 

 

 

 

 

Country

Patent No.

Issue Date

Inventor(s)

Title

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pending Patent Applications

 

 

 

 

 

Country

Serial No.

Filing Date

Inventor(s)

Title

 

 

 

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

 

EXHIBIT B
to Security Agreement

TRADEMARK SECURITY AGREEMENT

This TRADEMARK SECURITY AGREEMENT, dated as of_______  , 2017 (this “Agreement”)
, is made by [                                           ], a
[                          ] (the “Grantor”) in favor of ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware Limited Partnership, for itself and as agent
for the other parties to which the Grantors may owe any Obligations (together
with its Affiliates, successors, transferees and assignees, the “Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to a Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented, or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”) and the
Lender, the Lender has extended a Commitment to make the Loans to the Borrower;

WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates
have executed and delivered a Pledge and Security Agreement in favor of the
Lender, dated as of August 8, 2017 (as amended, supplemented, or otherwise
modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (c) of Section
4.5 of the Security Agreement, the Grantor is required to execute and deliver
this Agreement and to grant to the Lender a continuing security interest in all
of the Grantor’s right, title and interest in and to all of the Trademark
Collateral (as defined below) to secure all of the Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance
of this Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Grantor agrees, for the benefit of the
Lender, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Security
Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby grants to the Lender,
for its benefit, a continuing security interest in all of the Grantor’s right,
title and interest in and to the following property, whether now or hereafter
existing, owned or acquired by the Grantor, and wherever located (the “Trademark
Collateral”):

(a)          (i) all of the Grantor’s Trademarks now existing or hereafter
adopted or acquired including those referred to in Item A of Schedule I, whether
currently in use or not, all registrations and recordings thereof and all
applications in connection therewith, whether pending or filed, including
registrations, recordings and applications in the

 

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

 

United States Patent and Trademark Office or in any office or agency of the
United States of America, or any State thereof or any other country or political
subdivision thereof or otherwise, and all common-law rights relating to the
foregoing, and (ii) the right to obtain all reissues, extensions or renewals of
the foregoing;

(b)         all of the goodwill of the business connected with the use of, and
symbolized by the items described in, clause (a);

(c)         the right to sue third parties for past, present and future
infringements of any Trademark Collateral described in clause (a); and

(d)         all Proceeds of, and rights associated with, the foregoing,
including any claim by the Grantor against third parties for past, present or
future infringement or dilution of any Trademark or Trademark registration, or
for any injury to the goodwill associated with the use of any such Trademark and
all rights corresponding thereto throughout the world;

except that notwithstanding the foregoing, “Trademark Collateral” shall not
include any trademark applications filed in the United States Patent and
Trademark Office on the basis of the Grantor’s “intent to use” such trademark,
unless and until acceptable evidence of use of the Trademark has been filed with
the United States Patent and Trademark Office pursuant to Section 1(c) or
Section 1(d) of the Lanham Act (15 U.S.C. 1051, et seq.), to the extent that
granting a Lien in such Trademark application prior to such filing would
adversely affect the enforceability or validity of such Trademark application.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by
the Grantor for the purpose of registering the security interest of the Lender
in the Trademark Collateral with the United States Patent and Trademark Office.
The security interest granted hereby has been granted in furtherance of, and not
in limitation of, the security interest granted to the Lender for its benefit
under the Security Agreement. The Security Agreement (and all rights and
remedies of the Lender thereunder) shall remain in full force and effect in
accordance with its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Trademark Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination
Date, the security interests granted herein shall automatically terminate with
respect to (A) such Trademark Collateral (in the case of clause (i)) or (B) all
Trademark Collateral (in the case of clause (ii)). Upon any such Disposition or
termination, the Lender will, at the Grantor’s sole expense, deliver to the
Grantor, without any representations, warranties or recourse of any kind
whatsoever, all Trademark Collateral held by the Lender hereunder, and execute
and deliver to the Grantor such documents as the Grantor shall reasonably
request to evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Lender with respect to the security
interest in the Trademark Collateral granted hereby are more fully set forth in
the Security Agreement, the

 

2

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

 

terms and provisions of which (including the remedies provided for therein) are
incorporated by reference herein as if fully set forth herein.

SECTION 6. Loan Document. This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions
thereof, including Article X thereof.

SECTION 7. Effective. This Agreement shall become effective when a counterpart
hereof executed by the Grantor, shall have been received by the Lender. Delivery
of an executed counterpart of a signature page to this Agreement by email (e.g.
“pdf” or “tiff”) or telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement. The words “execution,” “signed,”
“signature,” and words of like import in any Loan Document shall be deemed to
include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.

[Signature Page Follows]

 

3

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

 

 

IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly
executed and delivered by Authorized Officer as of the date first above written.

 

[NAME OF GRANTOR]

 

 

 

 

 

By:

 

 

 

Name:  

 

 

Title:    

 

 

Signature Page to Trademark Security Agreement

 

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

 

SCHEDULE I
to Trademark Security Agreement

Item A. Trademarks

 

Registered Trademarks

Country

Trademark

Registration No.

Registration Date

 

 

 

 

 

 

 

 

 

 

 

 

Pending Trademark Applications

 

 

 

 

Country

Trademark

Serial No.

Filing Date

 

 

 

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

 

EXHIBIT C
to Security Agreement

COPYRIGHT SECURITY AGREEMENT

This COPYRIGHT SECURITY AGREEMENT, dated as of                             ,
2017 (this “Agreement”), is made by
[                                                                       ], a
[                           ] (the “Grantor”) in favor of ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware Limited Partnership, for itself and as agent
for the other parties to which the Grantors may owe any Obligations (together
with its Affiliates, successors, transferees and assignees, the “Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to a Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented, or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”) and the
Lender, the Lender has extended a Commitment to make the Loans to the Borrower;

WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates
have executed and delivered a Pledge and Security Agreement in favor of the
Lender, dated as of August 8, 2017 (as amended, supplemented, or otherwise
modified from time to time, the “Security Agreement”);

WHEREAS, pursuant to the Credit Agreement and pursuant to clause (c) of Section
4.5 of the Security Agreement, the Grantor is required to execute and deliver
this Agreement and to grant to the Lender a continuing security interest in all
of the Grantor’s right, title and interest in and to all of the Copyright
Collateral (as defined below) to secure all of the Obligations; and

WHEREAS, the Grantor has duly authorized the execution, delivery and performance
of this Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Grantor agrees, for the benefit of the
Lender, as follows:

SECTION 1. Definitions. Unless otherwise defined herein or the context otherwise
requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided (or incorporated by reference) in the Security
Agreement.

SECTION 2. Grant of Security Interest. The Grantor hereby grants to the Lender,
for its benefit, a continuing security interest in all of the Grantor’s right,
title and interest in and to the following property, whether now or hereafter
existing, owned or acquired by the Grantor, and wherever located (the “Copyright
Collateral”): all Copyrights of the Grantor, including the Copyrights referred
to in Item A of Schedule I, and all applications for registration thereof, and
all exclusive inbound copyright licenses, including each copyright license
referred to in Item B  of Schedule I, the right to sue for past, present and
future infringements of any of the foregoing, all rights corresponding thereto,
all extensions and renewals of any thereof and all Proceeds of

 

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the foregoing, including licenses, royalties, income, payments, claims, damages
and Proceeds of suit, which are owned or exclusively in-licensed by the Grantor.

SECTION 3. Security Agreement. This Agreement has been executed and delivered by
the Grantor for the purpose of registering the security interest of the Lender
in the Copyright Collateral with the United States Copyright Office. The
security interest granted hereby has been granted in furtherance of, and not in
limitation of, the security interest granted to the Lender for its benefit under
the Security Agreement. The Security Agreement (and all rights and remedies of
the Lender thereunder) shall remain in full force and effect in accordance with
its terms.

SECTION 4. Release of Liens. Upon (i) the Disposition of Copyright Collateral in
accordance with the Credit Agreement or (ii) the occurrence of the Termination
Date, the security interests granted herein shall automatically terminate with
respect to (A) such Copyright Collateral (in the case of clause (i)) or (B) all
Copyright Collateral (in the case of clause (ii)). Upon any such Disposition or
termination, the Lender will, at the Grantor’s sole expense, deliver to the
Grantor, without any representations, warranties or recourse of any kind
whatsoever, all Copyright Collateral held by the Lender hereunder, and execute
and deliver to the Grantor such documents as the Grantor shall reasonably
request to evidence such termination.

SECTION 5. Acknowledgment. The Grantor does hereby further acknowledge and
affirm that the rights and remedies of the Lender with respect to the security
interest in the Copyright Collateral granted hereby are more fully set forth in
the Security Agreement, the terms and provisions of which (including the
remedies provided for therein) are incorporated by reference herein as if fully
set forth herein.

SECTION 6. Loan Document. This Agreement is a Loan Document executed pursuant to
the Credit Agreement and shall (unless otherwise expressly indicated herein) be
construed, administered and applied in accordance with the terms and provisions
thereof, including Article X thereof.

SECTION 7. Effective. This Agreement shall become effective when a counterpart
hereof executed by the Grantor, shall have been received by the Lender. Delivery
of an executed counterpart of a signature page to this Agreement by email (e.g.
“pdf” or “tiff”) or telecopy shall be effective as delivery or a manually
executed counterpart of this Agreement. The words “execution,” “signed,”
“signature,” and words of like import in any Loan Document shall be deemed to
include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.

[Signature Page Follows]

 

 

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IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly
executed and delivered by its Authorized Officer as of the date first above
written.

 

 

[NAME OF GRANTOR]

 

 

 

 

 

By:

 

 

 

Name:  

 

 

Title:    

 

 

Signature Page to Copyright Security Agreement

 

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SCHEDULE I
to Copyright Security Agreement

Item A. Copyrights

Registered Copyrights

 

 

 

 

Country

Registration No.

Registration Date

Author(s)

Title

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Copyright Pending Registration Applications

 

 

 

 

 

Country

Serial No.

Filing Date

Author(s)

Title

 

Item B. Exclusive Inbound Copyright Licenses

 

 

 

 

 

Country or
Territory

Licensor

Licensee

Effective
Date

Expiration
Date

 

 

 

 

 

 

 

 

 

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ANNEX I
to Security Agreement

SUPPLEMENT TO
PLEDGE AND SECURITY AGREEMENT

This SUPPLEMENT, dated as of                                                   ,
      (this “Supplement”), is to the Pledge and Security Agreement, dated as of
August 8, 2017 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the “Security Agreement”), among the Grantors (such
term, and other terms used in this Supplement, to have the meanings set forth in
Article I of the Security Agreement) from time to time party thereto, in favor
of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware Limited Partnership
(together with its Affiliates, successors, transferees and assignees, the
“Lender”).

W I T N E S S E T H :

WHEREAS, pursuant to a Credit Agreement, dated as of August 8, 2017 (as amended,
supplemented, or otherwise modified from time to time, the “Credit Agreement”),
by and between Natera, Inc., a Delaware corporation (the “Borrower”) and the
Lender, the Lender has extended a Commitment to make the Loans to the Borrower;

WHEREAS, pursuant to the provisions of Section 7.6 of the Security Agreement,
each of the undersigned is becoming a Grantor under the Security Agreement; and

WHEREAS, each of the undersigned desires to become a “Grantor” under the
Security Agreement in order to induce the Lender to continue to extend Loans
under the Credit Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, each of the undersigned agrees, for the benefit
of the Lender, as follows.

SECTION 1. Party to Security Agreement, etc. In accordance with the terms of the
Security Agreement, by its signature below, each of the undersigned hereby
irrevocably agrees to become a Grantor under the Security Agreement with the
same force and effect as if it were an original signatory thereto and each of
the undersigned hereby (a) agrees to be bound by and comply with all of the
terms and provisions of the Security Agreement applicable to it as a Grantor and
(b) represents and warrants that the representations and warranties made by it
as a Grantor thereunder are true and correct as of the date hereof, unless
stated to relate solely to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date. In furtherance
of the foregoing, each reference to a “Grantor” and/or “Grantors” in the
Security Agreement shall be deemed to include each of the undersigned. Each of
the undersigned Grantors hereby authorizes the Lender to file financing
statements describing as the collateral covered thereby “all of the debtor’s
personal property or assets, whether now owned or hereafter acquired” or words
to that effect, notwithstanding that such wording may be broader in scope than
the Collateral described in the Security Agreement.

 

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SECTION 2. Schedules. Each of the undersigned Grantors hereby authorizes the
Lender to add the information set forth on the Schedules to this Supplement to
the correlative Schedules attached to the Security Agreement.

SECTION 3. Representations. Each of the undersigned Grantors hereby represents
and warrants that this Supplement has been duly authorized, executed and
delivered by it and that this Supplement and the Security Agreement constitute
its legal, valid and binding obligation, enforceable against it in accordance
with its terms.

SECTION 4. Full Force of Security Agreement. Except as expressly supplemented
hereby, the Security Agreement shall remain in full force and effect in
accordance with its terms.

SECTION 5. Severability. Wherever possible each provision of this Supplement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Supplement shall be prohibited by
or invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Supplement or the Security
Agreement.

SECTION 6. Governing Law, Entire Agreement, etc. THIS SUPPLEMENT AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR
OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR
ANY DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK). This Supplement, along with the other Loan Documents, constitutes
the entire understanding among the parties hereto with respect to the subject
matter thereof and supersedes any prior agreements, written or oral, with
respect thereto.

SECTION 7. Effective. This Supplement shall become effective when a counterpart
hereof executed by the Grantor shall have been received by the Lender. Delivery
of an executed counterpart of a signature page to this Agreement by email (e.g.
“pdf” or “tiff”) or telecopy shall be effective as delivery of a manually
executed counterpart of this Agreement. The words “execution,” “signed,”
“signature,” and words of like import in any Loan Document shall be deemed to
include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any applicable law,
including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar
state laws based on the Uniform Electronic Transactions Act.

[Signature Page Follows]

 

2

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IN WITNESS WHEREOF, each of the parties hereto has caused this Supplement to be
duly executed and delivered by its Authorized Officer as of the date first above
written.

 

 

 

 

 

[NAME OF ADDITIONAL SUBSIDIARY]

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

 

 

 

[NAME OF ADDITIONAL SUBSIDIARY]

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

 

Signature Page to Security Agreement Supplement

 

 

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[COPY SCHEDULES FROM SECURITY AGREEMENT]

 

 

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