Exhibit 10.25

 

THIRD Amendment

to

AMENDED AND RESTATED Loan and security agreement

 

This Third Amendment to Amended and Restated Loan and Security Agreement (this
“Amendment”) is entered into this 18th day of July, 2018, by and between Silicon
Valley Bank, a California corporation (“Bank”) and ROKU, INC., a Delaware
corporation (“Borrower”).

Recitals

A.Bank and Borrower have entered into that certain Amended and Restated Loan and
Security Agreement dated as of November 18, 2014, as amended by that certain
First Amendment to Amended and Restated Loan and Security Agreement dated as of
May 14, 2015, and as further amended by that certain Second Amendment to Amended
and Restated Loan and Security Agreement dated as of June 9, 2017  (as the same
has been or may from time to time be further amended, modified, supplemented or
restated, the “Loan Agreement”).  

B.Bank has extended credit to Borrower for the purposes permitted in the Loan
Agreement.  

C.Borrower has requested that Bank amend the Loan Agreement to make certain
revisions thereto as more fully set forth herein.

D.Bank has agreed to so amend certain provisions of the Loan Agreement, but only
to the extent, in accordance with the terms, subject to the conditions and in
reliance upon the representations and warranties set forth below.

Agreement

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

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

2.Amendments to Loan Agreement.

 

2.1Section 13 (Definitions).  The following terms and their respective
definitions set forth in Section 13.1 are deleted in their entirety and replaced
with the following:

““Credit Facility Sublimit Amount” is an aggregate amount not to exceed Thirty
Million Dollars ($30,000,000) at any time outstanding.”

 

““Current Liabilities” are all obligations and liabilities of Borrower to Bank
(including reimbursement obligations for issued and undrawn letters of credit),

 

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plus, without duplication, the aggregate amount of Borrower’s Total Liabilities
that mature within one (1) year.”

 

““Current Ratio” is a ratio of (a) the sum of (i) Current Assets and (ii) SAM
Investments to (b) Current Liabilities, minus Deferred Revenue.”

 

““Quick Assets” is, on any date, Borrower’s unrestricted cash maintained with
Bank or Bank’s Affiliates (including, without limitation, SAM Investments), plus
net billed accounts receivable.”

 

2.2Section 13 (Definitions).  The following new term and its definition are
inserted to appear alphabetically in Section 13.1:

““SAM Investments” means the aggregate value of all securities, financial
assets, other investment property and other amounts maintained by Borrower in
Account No. *****638 with and/or through U.S. Bank, N.A. that is subject to a
Securities Account Control Agreement among Borrower, Bank, SVB Asset Management
and U.S. Bank, N.A.”

 

2.3Exhibit B (Compliance Certificate).  The Compliance Certificate appearing as
Exhibit B to the Loan Agreement is deleted in its entirety and replaced with the
Compliance Certificate attached as Schedule 1 hereto. From and after the date
hereof, all references in the Loan Agreement to the Compliance Certificate shall
be deemed to refer to Schedule 1 attached hereto.

 

3.

Limitation of Amendments.

3.1The amendments set forth in Section 2, above, are effective for the purposes
set forth herein and shall be limited precisely as written and shall not be
deemed to (a) be a consent to any amendment, waiver or modification of any other
term or condition of any Loan Document, or (b) otherwise prejudice any right or
remedy which Bank may now have or may have in the future under or in connection
with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are hereby
ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties.  To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and complete in
all material respects as of the date hereof (except to the extent such
representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

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4.2Borrower has the power and authority to execute and deliver this Amendment
and to perform its obligations under the Loan Agreement, as amended by this
Amendment;

4.3The organizational documents of Borrower delivered to Bank on the Second
Amendment Effective Date remain true, accurate and complete and have not been
amended, supplemented or restated and are and continue to be in full force and
effect;

4.4The execution and delivery by Borrower of this Amendment and the performance
by Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, have been duly authorized;

4.5The execution and delivery by Borrower of this Amendment and the performance
by Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not and will not contravene (a) any law or regulation binding on
or affecting Borrower, (b) any contractual restriction with a Person binding on
Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or
(d) the organizational documents of Borrower;

4.6The execution and delivery by Borrower of this Amendment and the performance
by Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not require any order, consent, approval, license, authorization
or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on
Borrower, except as already has been obtained or made; and

4.7This Amendment has been duly executed and delivered by Borrower and is the
binding obligation of Borrower, enforceable against Borrower in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium or other similar laws of
general application and equitable principles relating to or affecting creditors’
rights.

5.Ratification of Amended and Restated Intellectual Property Security
Agreement.  Borrower hereby ratifies, confirms and reaffirms, all and singular,
the terms and conditions of a certain Amended and Restated Intellectual Property
Security Agreement dated as of June 9, 2017 between Borrower and Bank, and
acknowledges, confirms and agrees that said Amended and Restated Intellectual
Property Security Agreement shall remain in full force and effect.

6.Integration.  This Amendment and the Loan Documents represent the entire
agreement about this subject matter and supersede prior negotiations or
agreements.  All prior agreements, understandings, representations, warranties,
and negotiations between the parties about the subject matter of this Amendment
and the Loan Documents merge into this Amendment and the Loan Documents.

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

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8.Effectiveness.  This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto, and
(b) Borrower’s payment to Bank of Bank’s legal fees and expenses incurred in
connection with this Amendment.

[Signature page follows.]

 

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In Witness Whereof, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

 

 

BANK

BORROWER

 

SILICON VALLEY BANK

 

 

By:  /s/ Kyle Larrabee

Name:   Kyle Larrabee

Title:  Vice President_____________

 

ROKU, INC.

 

 

By:    /s/ Peter Nichter

Name:   Peter Nichter

Title:    VP Finance

 

 

 

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SCHEDULE 1

 

EXHIBIT B

 

Compliance Certificate

TO:

SILICON VALLEY BANKDate: ____________

FROM:

ROKU, INC.

 

The undersigned authorized officer of ROKU, INC. (“Borrower”) certifies that
under the terms and conditions of (a) the Amended and Restated Loan and Security
Agreement between Borrower and Bank dated as of November 18, 2014 (as amended
and as may be further amended, supplemented, replaced, restated, amended and
restated or otherwise modified from time to time, the “Senior Agreement”), and
(b) the Subordinated Loan and Security Agreement between Borrower, Bank and the
other lenders party thereto dated as of June 9, 2017 (as may be amended,
supplemented, replaced, restated, amended and restated or otherwise modified
from time to time, the “Subordinated Loan Agreement”) (the Senior Loan Agreement
and the Subordinated Loan Agreement are, collectively, the “Agreement”):

 

(1) Borrower is in complete compliance for the period ending _______________
with all required covenants except as noted below; (2) there are no Events of
Default except as noted below; (3) all representations and warranties in the
Agreement are true and correct in all material respects on this date except as
noted below; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or
modified by materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date;
(4) Borrower, and each of its Subsidiaries, have timely filed all required tax
returns and reports, and Borrower has timely paid all foreign, federal, state
and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Senior
Agreement and Section 5.8 of the Subordinated Loan Agreement; and (5) no Liens
have been levied or claims made against Borrower or any of its Subsidiaries
relating to unpaid employee payroll or benefits of which Borrower has not
previously provided written notification to Bank.

 

Attached are the required documents supporting the certification.  The
undersigned certifies that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.  The undersigned acknowledges that no
borrowings may be requested at any time or date of determination that Borrower
is not in compliance with any of the terms of the Agreement, and that compliance
is determined not just at the date this certificate is delivered.  Capitalized
terms used but not otherwise defined herein shall have the meanings given them
in the Agreement.

 

Please indicate compliance status by circling Yes/No under “Complies” column.

 

Reporting Covenants

Required

Complies

 

 

 

Monthly financial statements with Compliance Certificate

Monthly within 30 days

Yes   No

Annual financial statement (CPA Audited) + CC

FYE within 180 days

Yes   No

Form 10‑K

After IPO, FYE within 90 days

Yes   No

Form 10‑Q

After IPO, quarterly within 50 days

Yes   No

Merchant Service Processing statement

Monthly within 30 days

Yes   No

A/R, A/P Agings, Inventory Report, and Deferred Revenue (if requested)

Monthly within 30 days

Yes   No

Transaction Report (if Advances are outstanding)

Weekly; or Monthly within 30 days if Streamline Eligible

Yes  No

Board approved annual financial projections

Within 90 days of each FYE or more frequently as updated

Yes  No

 

 

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Financial Covenants

Required

Actual

Complies

 

 

 

 

Maintain on a Monthly Basis:

 

 

 

Current Ratio of at least

1.25:1.00

_____:1.00

Yes   No

 

Performance Pricing

Applies

 

 

 

Streamline Eligible

(a) Prime or (b) LIBOR plus 2.75%

Yes  No

Not Streamline Eligible

Prime + 1.0%

Yes  No

 

 

Streamline Eligible

Required

Actual

Complies

 

 

 

 

Adjusted Quick Ratio greater than

1.00 to 1.00

____:1.00

Yes  No

 

The following financial covenant and streamline eligibility analysis and
information set forth in Schedule 1 attached hereto are true and accurate as of
the date of this Certificate.

 

Other Matters

 

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

Yes

No

 

The following are the exceptions with respect to the certification above:  (If
no exceptions exist, state “No exceptions to note.”)

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ROKU, INC.

 

 

 

By: ___________________________

Name:

Title:

 

BANK USE ONLY

 

Received by: _____________________

authorized signer

Date: _________________________

 

Verified: ________________________

authorized signer

Date: _________________________

Compliance Status:Yes     No

 

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Schedule 1 to Compliance Certificate

 

Financial Covenants of Borrower/Streamline Eligibility

 

In the event of a conflict between this Schedule and the Loan Agreement, the
terms of the Loan Agreement shall govern.

 

Dated:____________________

 

I.Current Ratio (Section 6.9(a))

Required:  (i) Commencing with the month ending March 31, 2015, and continuing
for each month thereafter, through and including the month ending May 31, 2017,
at least 1.10 to 1.00, and (ii) commencing with the month ending June 30, 2017,
and continuing for each month thereafter, at least 1.25 to 1.00

Actual:

 

A.

Aggregate value of Borrower’s current assets and SAM Investments

$_______

 

B.

Aggregate value of all obligations and liabilities of Borrower to Bank
(including reimbursement obligations for issued and undrawn letters of credit)

$_______

C.

Aggregate value of obligations that should, under GAAP, be classified as
liabilities on Borrower’s consolidated balance sheet, including all Indebtedness
(other than Subordinated Debt), and not otherwise reflected in line B above that
matures within one (1) year

$_______

D.

Deferred Revenue

$_______

E.

Current Liabilities (the sum of lines B and C minus line D)

$_______

F.

Current Ratio (line A divided by line E)

 

 

Is line F equal to or greater than 1.25:1.00?

 

______ No, not in compliance______ Yes, in compliance

 

II.Adjusted Quick Ratio (Streamline Eligible)

Required:  Greater than 1.00 to 1.00.

Actual:

 

A.

Aggregate value of Borrower’s unrestricted cash  maintained with Bank or Bank’s
Affiliates (including SAM Investments)

$_______

 

B.

Aggregate value of Borrower’s net billed accounts receivable

$_______

C.

Quick Assets (the sum of lines A and B)

$_______

D.

Aggregate value of all obligations and liabilities of Borrower to Bank
(including reimbursement obligations for issued and undrawn letters of credit)

$_______

E.

Aggregate value of obligations that should, under GAAP, be classified as
liabilities on Borrower’s consolidated balance sheet, including all Indebtedness
(other than Subordinated Debt), and not otherwise reflected in line D above that
matures within one (1) year

$_______

F.

Aggregate value of all outstanding Obligations under the Revolving Line and not
otherwise reflected in line D or E above

 

G.

Current Liabilities (the sum of lines (D and E), plus F)

$_______

H.

Deferred Revenue

$_______

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I.

Adjusted Quick Ratio (line C divided by line G, minus line H)

 

 

Is line I greater than 1.00 to 1.00?

 

______ No, not Streamline Eligible______ Yes, Streamline Eligible

 

 

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