Exhibit 10.1

SECOND AMENDMENT TO
LOAN AND SECURITY AGREEMENT
THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into this 24th day of August, 2018, by and between SILICON VALLEY BANK,
a California corporation (“Bank”), and CALIX, INC., a Delaware corporation
(“Borrower”).
RECITALS
A.Bank and Borrower have entered into that certain Loan and Security Agreement
dated as of August 7, 2017 (as the same may from time to time be 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 (i) extend the Revolving Line Maturity
Date, (ii) modify the financial covenants, and (iii) make certain other
revisions to the Loan Agreement 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.
2.1    Section 6.2 (Financial Statements, Reports, Certificates).
(a)    Section 6.2(a) of the Loan Agreement is hereby deleted in its entirety
and replaced with the following:
    (a)    a Borrowing Base Report (and any schedules related thereto and
including any other information reasonably requested by Bank with respect to
Borrower’s Accounts, including without limitation, a detailed accounts
receivable ledger) (i) no later than Friday of each week when a Streamline
Period is not in effect, and (ii) within seven (7) days after the end of each
month when a Streamline Period is in effect;

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(b)    Section 6.2(l) is hereby inserted in the Loan Agreement immediately
following Section 6.2(k) of the Loan Agreement:
    (l)    Beneficial Ownership Information. Borrower shall provide Bank with
prompt written notice of any changes to the beneficial ownership information set
out in the Beneficial Ownership Information Disclosure Form. Borrower
understands and acknowledges that Bank relies on such true, accurate and
up-to-date beneficial ownership information to meet Bank’s regulatory
obligations to obtain, verify and record information about the beneficial owners
of its legal entity customers.
2.2    Section 6.9 (Financial Covenants). Section 6.9 of the Loan Agreement is
hereby deleted in its entirety and replaced with the following:
    6.9    Financial Covenants. Maintain at all times on a consolidated basis
with respect to Borrower:
    (a)    Adjusted Quick Ratio. Tested as of the last day of each fiscal
quarter of Borrower, an Adjusted Quick Ratio as set forth below:
Fiscal Quarter Ending
Adjusted Quick Ratio
September 30, 2018
At least 0.90:1.00
December 31, 2018
At least 0.90:1.00
March 31, 2019 and each fiscal quarter thereafter
At least 1.00:1.00

(b)    Adjusted EBITDA. Tested as of the last day of each fiscal quarter of
Borrower, an Adjusted EBITDA of at least the following amounts at the following
times:
Fiscal Quarter Ending
Adjusted EBITDA
September 30, 2018
$3,000,000
December 31, 2018
$5,000,000
March 31, 2019 and each fiscal quarter thereafter
$1.00

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2.3    Section 7.2 (Changes in Business, Management, Control or Business
Locations). The following sentence is hereby added at the end of the second
paragraph of Section 7.2 of the Loan Agreement:
    “If Borrower intends to add any new offices or business locations, including
warehouses, containing in excess of [***] of Borrower’s assets or property, then
Borrower will first receive the written consent of Bank, and the landlord of any
such new offices or business locations, including warehouses, shall execute and
deliver a landlord consent in form and substance satisfactory to Bank.”
2.4    Section 13 (Definitions).
(a)    The following terms and their respective definitions set forth in
Section 13.1 of the Loan Agreement are hereby deleted in their entirety and
replaced with the following:
    “Eligible Foreign Accounts” are Accounts for which the Account Debtor is
[***], which are Account Debtors that do not have their principal place of
business in the United States, and which (a) otherwise satisfy the definition of
Eligible Accounts, (b) are billed and collected in the United States, and (c)
are billed and/or payable in Dollars, Euros, Pounding Sterling, or Canadian
Dollars.
“Revolving Line Maturity Date” is August 7, 2020.
(b)    Clause (c) of the definition of “Permitted Liens” set forth in Section
13.1 of the Loan Agreement is hereby deleted in its entirety and replaced with
the following:
    (c)    purchase money Liens or Liens in connection with capital leases (i)
on Equipment acquired or held by Borrower incurred for financing the acquisition
of the Equipment securing no more than Six Million Dollars ($6,000,000) in the
aggregate amount outstanding, or (ii) existing on Equipment when acquired, if
the Lien is confined to the property and improvements and the proceeds of the
Equipment;
(c)    The following new defined term is hereby inserted alphabetically to
Section 13.1 of the Loan Agreement:
    “Beneficial Ownership Information Disclosure Form” means the form attached
hereto as Exhibit E.
2.5    Compliance Certificate. Exhibit B of the Loan Agreement is hereby
replaced in its entirety with Exhibit B attached hereto. From and after the date
hereof, all references in the Loan Agreement to the Compliance Certificate shall
be deemed to refer to Exhibit B attached hereto.
2.6    Beneficial Ownership Information Disclosure Form. The Loan Agreement is
hereby amended by adding the Beneficial Ownership Information Disclosure Form
attached hereto as Exhibit E as Exhibit E to the Loan Agreement. From and after
the date hereof,

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all references in the Loan Agreement to the Beneficial Ownership Information
Disclosure Form shall be deemed to refer to the Beneficial Ownership Information
Disclosure Form attached hereto as Exhibit E
3.    Limitation of Amendment.
3.1    The 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.
3.2    This 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.
3.3    In addition to those Events of Default specifically enumerated in the
Loan Documents, the failure to comply with the terms of any covenant or
agreement contained herein shall constitute an Event of Default and shall
entitle Bank to exercise all rights and remedies provided to Bank under the
terms of any of the other Loan Documents as a result of the occurrence of the
same.
4.    Representations and Warranties. To induce Bank to enter into this
Amendment, Borrower hereby represents and warrants to Bank as follows:
4.1    Immediately after giving effect to this Amendment (1) 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 (1) no Event of Default has occurred and
is continuing;
4.2    Borrower 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;
4.3    The organizational documents of Borrower delivered to Bank on the
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;
4.4    The 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;
4.5    The 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 material law or
regulation binding on or affecting

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Borrower, (b) any contractual restriction with a Person binding on Borrower in
any material respects, (c) in any material respects, 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;
4.6    The 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
4.7    This 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.    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.
6.    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.
7.    Effectiveness. This Amendment shall be deemed effective upon (a) the due
execution and delivery to Bank of this Amendment by each party hereto, (b)
Borrower’s payment of an amendment fee to Bank of One Hundred Five Thousand
Dollars ($105,000), and (c) payment of Bank’s legal fees and expenses in
connection with the negotiation and preparation of 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.
BORROWER:
CALIX, INC.
By: _/s/ Cory Sindelar__________________________
Name: Cory Sindelar
Title: Chief Financial Officer
BANK:
SILICON VALLEY BANK
By: _/s/ Stephen Chang_________________________
Name: Stephen Chang
Title: Director

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EXHIBIT B
COMPLIANCE CERTIFICATE
TO:        SILICON VALLEY BANK                    Date:                
FROM:     CALIX, INC.
The undersigned authorized officer of CALIX, INC. (“Borrower”) certifies, solely
in his or her capacity as an officer of Borrower and not in his or her
individual capacity, that under the terms and conditions of the Loan and
Security Agreement between Borrower and Bank (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, (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, has 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 Agreement, and (5) no
Liens have been levied or claims made against Borrower or any of its
Subsidiaries, if any, 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 statements (CPA Audited)
Earlier of 120 days of FYE, or 10-K filing date
Yes No
Quarterly financial statements
Earlier of 90 days of FQE, or 10-Q filing date
Yes No
10-Q, 10-K and 8-K
Within 5 days after filing with SEC
Yes No
A/R & A/P Agings
Monthly within 30 days
Yes No
Deferred Revenue Report
Monthly within 30 days
Yes No
Detailed Debtor Listing
Monthly within 30 days
Yes No
Borrowing Base Reports
If Streamline Period in effect, monthly within 7 days; if Streamline Period not
in effect, Friday of each week
Yes No
Board approved projections
Within later of 60 days of Board approval or FYE, and as within 10 days of any
amendment/update
Yes No
 

The following Intellectual Property was registered after the Effective Date or
after the last delivery date of a Compliance Certificate (if no registrations,
state “None”)
____________________________________________________________________________

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Financial Covenants
Required
Actual
Complies
 
 
 
 
Maintain as indicated:
 
 
 
Adjusted Quick Ratio (tested quarterly)
See attached schedule
See attached schedule
Yes No
Adjusted EBITDA (tested quarterly)
See attached schedule
See attached schedule
Yes No

Performance Pricing
 
 
 
 
 
Interest Rate
Applies
AQR > 1.50
LIBOR + 2.00% or Prime + 0.50%
Yes No
AQR > 1.25 and < 1.50
LIBOR + 2.50% or Prime + 1.00
Yes No
AQR < 1.25
LIBOR + 3.00% or Prime + 1.50%
Yes No

 
Unused Line Fee
Applies
AQR > 1.25
0.25%
Yes No
AQR < 1.25
0.375%
Yes No

Streamline Period
Applies
 
 
 
(i) AQR > 1.10 from the Effective Date through December 31, 2017, or (ii) AQR
> 1.25 from January 1, 2018 and at all times thereafter
Yes
Yes No
(i) AQR < 1.10 from the Effective Date through December 31, 2017, or (ii) AQR <
1.25 from January 1, 2018 and at all times thereafter
No
Yes No

The following financial covenant analyses and information set forth in Schedule
1 attached hereto are true and accurate as of the date of this Certificate.
The following are the exceptions with respect to the certification above: (If no
exceptions exist, state “No exceptions to note.”)
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Attached are copies of all correspondence, reports, documents and other filings
with any Governmental Authority regarding compliance with or maintenance of
Governmental Approvals or Requirements of Law or that could reasonably be
expected to have a material effect on any of the Governmental Approvals or
otherwise on the operations of Borrower or any of its Subsidiaries.

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CALIX, 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
In the event of a conflict between this Schedule and the Loan Agreement, the
terms of the Loan Agreement shall govern.
Dated:    ____________________
I.    Adjusted Quick Ratio (Section 6.9(a))
Required: Tested as of the last day of each fiscal quarter of Borrower, an
Adjusted Quick Ratio as set forth below:

Fiscal Quarter Ending
Adjusted Quick Ratio
September 30, 2018
At least 0.90:1.00
December 31, 2018
At least 0.90:1.00
March 31, 2019 and each fiscal quarter thereafter
At least 1.00:1.00

Actual:
A.
Aggregate value of the unrestricted and unencumbered cash and Cash Equivalents
of Borrower at Bank and Bank’s Affiliates, or held in accounts subject to
Control Agreements as permitted under the Agreement
$_______
B.
Aggregate value of net billed accounts receivable of Borrower
$_______
C.
Quick Assets (the sum of lines A and B)
$_______
D.
Aggregate value of liabilities of Borrower on its consolidated balance sheet
including all Indebtedness and current portion of Subordinated Debt permitted by
Bank to be paid by Borrower (but excluding (i) all other Subordinated Debt, (ii)
Obligations to Bank, and (iii) any Indebtedness that is cash secured or is
otherwise collateralized pursuant to terms acceptable to Bank in its sole
discretion), that matures within one (1) year
$_______
E.
Aggregate value of Obligations to Bank
$_______
F.
The sum of lines D and E
$_______
G.
Aggregate value of the current portion of all amounts received or invoiced by
Borrower in advance of performance under contracts and not yet recognized as
revenue
$_______
H.
Line F minus line G
$_______
I.
Adjusted Quick Ratio (line C divided by line H)
        :1.00

Is line I at least the required amount for such fiscal quarter?
________ No, not in compliance                          Yes, in compliance

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II    Adjusted EBITDA (Section 6.9(b))

Required: Tested as of the last day of each fiscal quarter of Borrower, an
Adjusted EBITDA of at least the following amounts at the following times:

Fiscal Quarter Ending
Adjusted EBITDA
September 30, 2018
$3,000,000
December 31, 2018
$5,000,000
March 31, 2019 and each fiscal quarter thereafter
$1.00

Actual:
A.
Net Income of Borrower
$_________
B.
To the extent included in the determination of Net Income
 
 
1. The provision for income taxes
$_________
 
2. Depreciation expense
$_________
 
3. Amortization expense
$_________
 
4. Interest Expense
$_________
C.
EBITDA (line A plus lines B.1-B.4)
$_________
D.
Non-cash stock compensation expense
$_________
E.
Other non-cash items approved by Bank in writing on a case-by-case basis
$_________
F.
One-time non-recurring restructuring expenses actually incurred by Borrower in
the fiscal quarter ending March 31, 2018 not to exceed $3,000,000 in the
aggregate
$_________
G.
Adjusted EBITDA (line C plus lines D-F
$_________

Is line G at least the amount required above?

  No, not in compliance                ___________ Yes, in compliance

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EXHIBIT E
BENEFICIAL OWNERSHIP INFORMATION DISCLOSURE FORM
1.
Is the Borrower any of the following:

 
i.
 
a public company or an issuer of securities that are registered with the
Securities and Exchange Commission under Section 12 of the Securities Exchange
Act of 1934 or that is required to file reports under Section 15(d) of that Act;
 
 
ii.
 
an investment company registered with the Securities and Exchange Commission
under the Investment Company Act of 1940;
 
 
iii.
 
an investment adviser registered with the Securities and Exchange Commission
under the Investment Advisers Act of 1940; or
 
 
iv.
 
a pooled investment vehicle operated or advised by a regulated financial
institution (including an SEC-registered investment adviser)?
 
 
 
 
 
 

Yes check.jpg [check.jpg]         No    uncheck.jpg [uncheck.jpg]
If yes, skip to signature page below. If no, continue to 2:
2.
Is the Borrower a pooled investment vehicle that is not operated or advised by a
regulated financial institution?

Yes uncheck.jpg [uncheck.jpg]         No    uncheck.jpg [uncheck.jpg]
If yes, skip to 4 below. If no, continue to 3:
3.
Does any individual, directly or indirectly (for example, if applicable, through
such individual’s equity interests in the Borrower’s parent entity), through any
contract, arrangement, understanding, relationship or otherwise, own 25% or more
of the equity interests of Borrower:

Yes     uncheck.jpg [uncheck.jpg]     No    uncheck.jpg [uncheck.jpg]
If yes, complete the following information:

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Name
Date of birth
Residential address
For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
For Non-US Persons: Type of ID, ID number, country of issuance, expiration date
Percentage of ownership/Name of Entity
(if indirect ownership, explain structure)
1
 
 
 
 
 
 
2
 
 
 
 
 
 
3
 
 
 
 
 
 
4
 
 
 
 
 
 

4.
Identify one individual with significant responsibility for managing Borrower
i.e., an executive officer or senior manager (e.g., Chief Executive Officer,
President, Vice President, Chief Financial Officer, Treasurer, Chief Operating
Officer, Managing Member or General Partner) or any other individual who
regularly performs similar functions. If appropriate, an individual listed in
Section 1 above may also be listed here.

 
Name
Date of birth
Residential address
For US Persons, Social Security Number:
(non-US persons should provide SSN if available)
For Non-US Persons: Type of ID, ID number, country of issuance, expiration date
Name of Entity
1
 
 
 
 
 
 

The undersigned, hereby certifies, to the best of his or her knowledge, that the
information set out in this Beneficial Ownership Information Disclosure Form is
true, complete and correct.
Date:  August 24, 2018    

By: /s/ Cory Sindelar
Name: Cory Sindelar
Title: CFO
Email: cory.sindelar@calix.com
Phone: (408) 474-0052

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