Exhibit 10.5

[***] Certain information in this document has been excluded pursuant to
Regulation S-K, Item 601(b)(10). Such excluded information is not material and
would likely cause competitive harm to the registrant if publicly disclosed.

Execution Version

WAIVER AND FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS WAIVER AND FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
“Agreement”) is entered into as of August 14, 2019, among Restoration Robotics,
Inc., a Delaware corporation (the “Borrower”), Solar Capital Ltd., a Maryland
corporation (in its capacity as collateral agent, the “Collateral Agent”) and
the Lenders party hereto, comprising the Required Lenders under the Loan
Agreement referred to below (each, a “Lender” and, collectively, the “Lenders”).

RECITALS

A. The Borrower, the Lenders party thereto, and the Collateral Agent, are
parties to that certain Loan and Security Agreement, dated as of May 10, 2018,
as amended by that certain First Amendment to Loan and Security Agreement, dated
as of June 29, 2018, that certain Second Amendment to Loan and Security
Agreement, entered into as of November 2, 2018, that certain Third Amendment to
Loan and Security Agreement, dated as of February 13, 2019, and that certain
Fourth Amendment to Loan and Security Agreement, dated as of June 14, 2019 (as
further amended, supplemented or otherwise modified prior to the date hereof,
the “Loan Agreement”).

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

AGREEMENT

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

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

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

2.1 Definition of Final Fee. The definition of “Final Fee” is hereby amended and
restated as follows:

“Final Fee” is a payment (in addition to and not a substitution for the regular
monthly payments of principal plus accrued interest or any other fee payable
hereunder) (a) due on the earliest to occur of (i) the Maturity Date, (ii) the
acceleration of the Term Loan, and (iii) the prepayment in full of the Term
Loans pursuant to Section 2.2(c) or (d), and (b) equal to “(1) if the
Obligations are repaid in full on or prior to August 31, 2019, One Million, One
Hundred Ten Thousand Dollars ($1,110,000.00), (2) if the Obligations are repaid
in full after August 31, 2019 but on or prior to October 1, 2019, One Million
Three Hundred Ten Thousand Dollars ($1,310,000.00), or (3) if the Obligations
remain outstanding after October 1, 2019, One Million Four Hundred Ten Thousand
Dollars ($1,410,000.00). The Final Fee shall be fully earned on the date so
paid, non-refundable for any reason and payable to the Lenders in accordance
with their respective Pro Rata Shares.

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2.2 Section 6.12. The following shall be added to the end of the existing
Section 6.12 of the Loan Agreement:

“In addition, on or before each deadline set forth in the following table,
Borrower shall have provided evidence reasonably satisfactory to the Collateral
Agent that Borrower has received after August 12, 2019 and prior to the
applicable deadline, at least the aggregate amount set forth in the following
table for that deadline in aggregate unrestricted net cash proceeds from the
sale and issuance of Borrower’s common or preferred stock pursuant to one or
more bona fide equity financings or the issuance of Subordinated Debt, in each
case on terms reasonably acceptable to Collateral Agent:

 

Deadline

   Aggregate
Amount After
August 12,
2019  

August 30, 2019

   $ 3,000,000  

September 30, 2019

   $ 4,000,000  

October 15, 2019

   $ 4,500,000”  

2.3 Section 6.13. The reference to “July 31, 2019” at the end of the existing
Section 6.13 of the Loan Agreement is hereby deleted and replaced with
“September 30, 2019”.

2.4 Section 7.13. The reference to “August 31, 2019” in clause (a) of the
existing Section 7.13 of the Loan Agreement is hereby deleted and replaced with
“October 31, 2019” and the reference to “September 1, 2019” in clause (b) of the
existing Section 7.13 of the Loan Agreement is hereby deleted and replaced with
“November 1, 2019”.

2.5 Section 7.14. The following proviso shall be added and the end of the first
sentence of the existing Section 7.14 of the Loan Agreement:

; provided that the foregoing covenant shall not be tested for the months of
July through October 2019.

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

3. Waiver. Each Lender and the Collateral Agent hereby waives the Event of
Default that would exist as a consequence of the Borrower’s failure to comply
with each of (i) Section 6.13 of the Loan Agreement (as was in effect as of the
date immediately prior to the date hereof) and (ii) Section 7.14 of the Loan
Agreement for the period ending June 30, 2019.

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

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

4.2 the Borrower shall have paid to the Lenders in accordance with their
respective Pro Rata Shares an amendment fee of Fifty Thousand Dollars
($50,000.00); and

 

2

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

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

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

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

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

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

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

5.6 Immediately after giving effect to this Agreement, no Default or Event of
Default has occurred and is continuing under the Loan Agreement or the Loan
Documents.

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

 

3

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

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

9. Miscellaneous.

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

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

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

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

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

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

[Signature page follows.]

 

4

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IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, as of
the date first above written.

 

THE BORROWER RESTORATION ROBOTICS, INC. By  

/s/ Mark Hair

  Name: Mark Hair   Title: Chief Financial Officer

[Signature Page to Restoration Robotics Fifth Amendment to LSA]

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COLLATERAL AGENT AND LENDER: SOLAR CAPITAL LTD. By  

/s/ Anthony Storino

  Name: Anthony Storino   Title: Authorized Signatory LENDER: SCP PRIVATE CREDIT
INCOME FUNDS L.P. By  

/s/ Anthony Storino

  Name: Anthony Storino   Title: Authorized Signatory LENDER: SUNS SPV LLC By  

/s/ Anthony Storino

  Name: Anthony Storino   Title: Authorized Signatory

[Signature Page to Restoration Robotics Fifth Amendment to LSA]

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LENDER: WESTERN ALLIANCE BANK By  

/s/ Lindsay Fouty

  Name: Lindsay Fouty   Title: VP, Portfolio Management

[Signature Page to Restoration Robotics Fifth Amendment to LSA]

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Exhibit A

Replacement Exhibit D

[See attached]

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EXHIBIT D

Compliance Certificate

 

TO:   

SOLAR CAPITAL LTD., as Collateral Agent and Lender

WESTERN ALLIANCE BANK, as Lender

FROM:    Restoration Robotics, Inc.

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

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

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

(c) Except as noted below, all representations and warranties of Borrower stated
in the Loan Documents (other than the Warrants) are true and correct in all
material respects on date hereof; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring
to a specific date shall be true, accurate and complete in all material respects
as of such date

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

(e) No Liens have been levied or claims made against Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Collateral Agent and the
Lenders.

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

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

 

     Reporting Covenant    Requirement      Actual      Complies 1)    Financial
statements    Monthly within 30 days           Yes      No      N/A 2)    Annual
(CPA Audited) statements    Within 180 days after FYE           Yes      No     
N/A

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3)    Annual Financial Projections/Budget (prepared on a monthly basis)   
Annually (within 60 days after FYE or 10 days of approval), and when revised
(within 7 days of approval)           Yes      No      N/A 4)    8-K, 10-K and
10-Q Filings    If applicable, within 5 days of filing           Yes      No
     N/A 5)    Compliance Certificate    Monthly within 30 days           Yes
     No      N/A 6)    Total amount of Borrower’s unrestricted cash and Cash
Equivalents at the last day of the measurement period         $________      Yes
     No      N/A 7)    Total amount of Borrower’s Subsidiaries’ unrestricted
cash and Cash Equivalents at the last day of the measurement period        
$________      Yes      No      N/A

Deposit and Securities Accounts

(Please list all accounts; attach separate sheet if additional space needed)

 

Institution Name

   Account Number    New
Account?    Account Control Agreement in place? 1)          Yes    No    Yes   
No 2)          Yes    No    Yes    No 3)          Yes    No    Yes    No 4)   
      Yes    No    Yes    No

Financial Covenants

 

[7.13 – Minimum Liquidity Requirement:   

1. Unrestricted Cash and Cash Equivalents:

   _________________]1

2. Does this comply with the Minimum of $7,500,000 on or prior to October 31,
2019 or $12,500,000 thereafter?

   Yes                 No 7.14 – Minimum Revenue Requirement:

1. Actual 12 month Trailing Revenue for this month:

   $ ____________

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

   Yes                 No

 

1 

To be included only if applicable.

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A    B    C    D

Month Ending

  

Management Case Revenue
Projection (12 Month Trailing)

  

Minimum Percent Achievement for
Covenant

  

Minimum Revenue Required for
Covenant (12 Month Trailing)

9/30/2018    [***]    [***]    [***] 10/31/2018    [***]    [***]    [***]
11/30/2018    [***]    [***]    [***] 12/31/2018    [***]    [***]    [***]
1/31/2019    [***]    [***]    [***] 2/28/2019    [***]    [***]    [***]
3/31/2019    [***]    [***]    [***] 4/30/2019    [***]    [***]    [***]
5/31/2019    [***]    [***]    [***] 6/30/2019    [***]    [***]    [***]
7/31/2019    [***]    [***]    [***] 8/31/2019    [***]    [***]    [***]
9/30/2019    [***]    [***]    [***] 10/31/2019    [***]    [***]    [***]
11/30/2019    [***]    [***]    [***] 12/31/2019    [***]    [***]    [***]
1/31/2020    [***]    [***]    [***] 2/29/2020    [***]    [***]    [***]
3/31/2020    [***]    [***]    [***] 4/30/2020    [***]    [***]    [***]
5/31/2020    [***]    [***]    [***] 6/30/2020    [***]    [***]    [***]
7/31/2020    [***]    [***]    [***] 8/31/2020    [***]    [***]    [***]
9/30/2020    [***]    [***]    [***]

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10/31/2020    [***]    [***]    [***] 11/30/2020    [***]    [***]    [***]
12/31/2020    [***]    [***]    [***] 1/31/2021    [***]    [***]    [***]
2/28/2021    [***]    [***]    [***] 3/31/2021    [***]    [***]    [***]
4/30/2021    [***]    [***]    [***] 5/31/2021    [***]    [***]    [***]
6/30/2021    [***]    [***]    [***] 7/31/2021    [***]    [***]    [***]
8/31/2021    [***]    [***]    [***] 9/30/2021    [***]    [***]    [***]
10/31/2021    [***]    [***]    [***] 11/30/2021    [***]    [***]    [***]
12/31/2021    [***]    [***]    [***] 1/31/2022    [***]    [***]    [***]
2/28/2022    [***]    [***]    [***] 3/31/2022    [***]    [***]    [***]
4/30/2022    [***]    [***]    [***]

Other Matters

 

1)    Have there been any changes in Key Persons since the last Compliance
Certificate?    Yes    No 2)    Have there been any
transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan
Agreement?    Yes    No 3)    Have there been any new or pending claims or
causes of action against Borrower or any of its Subsidiaries that involve more
than Two Hundred Fifty Thousand Dollars ($250,000.00)?    Yes    No 4)    Have
there been any amendments of or other changes to the capitalization table of
Borrower and to the Operating Documents of Borrower or any of its Subsidiaries?
If yes, provide copies of any such amendments or changes with this Compliance
Certificate.    Yes    No

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5)    Has Borrower or any Subsidiary entered into any Material Agreement,
amended any Material Agreement, or modified any other license, agreement or
other contractual arrangement such that it would become a Material Agreement? If
yes, please explain and provide a copy of the Material Agreement(s) and/or
amendment(s).    Yes    No 6)    Has Borrower provided the Collateral Agent with
all notices required to be delivered under Sections 6.2(a) and 6.2(b) of the
Loan Agreement?    Yes    No

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Exceptions

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

Restoration Robotics, Inc.

 

By:  

 

Name:     Title:    

Date:

 

      COLLATERAL AGENT USE ONLY                                    
Received by:                                                    
Date:                    Verified by:                                          
           Date:                    Compliance Status:
            Yes                 No