EX-10.2



 Exhibit 10.2 
  

 
 TERM LOAN AGREEMENT 

dated as of 

April 4, 2014 

between 
 TANDEM
DIABETES CARE, INC. 
 as Borrower, 

The SUBSIDIARY GUARANTORS from Time to Time Party Hereto, 

and 
 The LENDERS from
Time to Time Party Hereto, 
 U.S. $30,000,000 
  

 
 [***]: CONFIDENTIAL PORTIONS OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. 







 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
		
	SECTION 1 DEFINITIONS	  	 	1	  
			
	 1.01
	 	Certain Defined Terms	  	 	1	  
			
	 1.02
	 	 Accounting Terms and Principles
	  	 	20	  
			
	 1.03
	 	 Interpretation
	  	 	20	  
			
	 1.04
	 	 Changes to GAAP
	  	 	20	  
		
	SECTION 2 THE COMMITMENT	  	 	21	  
			
	 2.01
	 	 Commitments
	  	 	21	  
			
	 2.02
	 	 Borrowing Procedures
	  	 	21	  
			
	 2.03
	 	 Fees
	  	 	21	  
			
	 2.04
	 	 Notes
	  	 	21	  
			
	 2.05
	 	 Use of Proceeds
	  	 	21	  
			
	 2.06
	 	 Defaulting Lenders
	  	 	22	  
			
	 2.07
	 	 Substitution of Lenders
	  	 	23	  
		
	SECTION 3 PAYMENTS OF PRINCIPAL AND INTEREST	  	 	24	  
			
	 3.01
	 	 Repayment
	  	 	24	  
			
	 3.02
	 	 Interest
	  	 	24	  
			
	 3.03
	 	 Prepayments
	  	 	25	  
		
	SECTION 4 PAYMENTS, ETC	  	 	26	  
			
	 4.01
	 	 Payments
	  	 	26	  
			
	 4.02
	 	 Computations
	  	 	27	  
			
	 4.03
	 	 Notices
	  	 	27	  
			
	 4.04
	 	 Set-Off
	  	 	27	  
		
	SECTION 5 YIELD PROTECTION, ETC	  	 	27	  
			
	 5.01
	 	 Additional Costs
	  	 	27	  
			
	 5.02
	 	 Reserved
	  	 	29	  
			
	 5.03
	 	 Illegality
	  	 	29	  
			
	 5.04
	 	 Reserved
	  	 	29	  
			
	 5.05
	 	 Taxes
	  	 	29	  
		
	SECTION 6 CONDITIONS PRECEDENT	  	 	32	  
			
	 6.01
	 	 Conditions to Initial Borrowing
	  	 	32	  
			
	 6.02
	 	 Conditions to Each Borrowing
	  	 	34	  


  
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 TABLE OF CONTENTS 

(continued) 
  

 

							
	 	 	 	  	Page	 
		
	SECTION 7 REPRESENTATIONS AND WARRANTIES	  	 	35	  
			
	 7.01
	 	 Power and Authority
	  	 	35	  
			
	 7.02
	 	 Authorization; Enforceability
	  	 	35	  
			
	 7.03
	 	 Governmental and Other Approvals; No Conflicts
	  	 	35	  
			
	 7.04
	 	 Financial Statements; Material Adverse Change
	  	 	36	  
			
	 7.05
	 	 Properties
	  	 	36	  
			
	 7.06
	 	 No Actions or Proceedings
	  	 	40	  
			
	 7.07
	 	 Compliance with Laws and Agreements
	  	 	40	  
			
	 7.08
	 	 Taxes
	  	 	40	  
			
	 7.09
	 	 Full Disclosure
	  	 	40	  
			
	 7.10
	 	 Regulation
	  	 	40	  
			
	 7.11
	 	 Solvency
	  	 	41	  
			
	 7.12
	 	 Subsidiaries
	  	 	41	  
			
	 7.13
	 	 Indebtedness and Liens
	  	 	41	  
			
	 7.14
	 	 Material Agreements
	  	 	41	  
			
	 7.15
	 	 Restrictive Agreements
	  	 	41	  
			
	 7.16
	 	 Real Property
	  	 	41	  
			
	 7.17
	 	 Pension Matters
	  	 	42	  
			
	 7.18
	 	 Collateral; Security Interest
	  	 	42	  
			
	 7.19
	 	 Regulatory Approvals
	  	 	42	  
			
	 7.20
	 	 Small Business Concern
	  	 	42	  
			
	 7.21
	 	 Update of Schedules
	  	 	43	  
		
	SECTION 8 AFFIRMATIVE COVENANTS	  	 	43	  
			
	 8.01
	 	 Financial Statements and Other Information
	  	 	43	  
			
	 8.02
	 	 Notices of Material Events
	  	 	45	  
			
	 8.03
	 	 Existence; Conduct of Business
	  	 	46	  
			
	 8.04
	 	 Payment of Obligations
	  	 	47	  
			
	 8.05
	 	 Insurance
	  	 	47	  
			
	 8.06
	 	 Books and Records; Inspection Rights
	  	 	47	  
			
	 8.07
	 	 Compliance with Laws and Other Obligations
	  	 	48	  
			
	 8.08
	 	 Maintenance of Properties, Etc
	  	 	48	  
			
	 8.09
	 	 Licenses
	  	 	49	  


  
 -ii- 








 TABLE OF CONTENTS 

(continued) 
  

 

							
	 	 	 	  	Page	 
			
	 8.10
	 	 Action under Environmental Laws
	  	 	49	  
			
	 8.11
	 	 Use of Proceeds
	  	 	49	  
			
	 8.12
	 	 Certain Obligations Respecting Subsidiaries; Further Assurances
	  	 	49	  
			
	 8.13
	 	 Termination of Non-Permitted Liens
	  	 	51	  
			
	 8.14
	 	 Intellectual Property
	  	 	51	  
			
	 8.15
	 	 Post-Closing Items
	  	 	52	  
			
	 8.16
	 	 Small Business Documentation
	  	 	52	  
		
	SECTION 9 NEGATIVE COVENANTS	  	 	52	  
			
	 9.01
	 	 Indebtedness
	  	 	52	  
			
	 9.02
	 	 Liens
	  	 	54	  
			
	 9.03
	 	 Fundamental Changes and Acquisitions
	  	 	55	  
			
	 9.04
	 	 Lines of Business
	  	 	56	  
			
	 9.05
	 	 Investments
	  	 	56	  
			
	 9.06
	 	 Restricted Payments
	  	 	57	  
			
	 9.07
	 	 Payments of Indebtedness
	  	 	57	  
			
	 9.08
	 	 Change in Fiscal Year
	  	 	57	  
			
	 9.09
	 	 Sales of Assets, Etc
	  	 	58	  
			
	 9.10
	 	 Transactions with Affiliates
	  	 	59	  
			
	 9.11
	 	 Restrictive Agreements
	  	 	59	  
			
	 9.12
	 	 Amendments to Material Agreements
	  	 	60	  
			
	 9.13
	 	 Preservation of Borrower Lease; Operating Leases
	  	 	60	  
			
	 9.14
	 	 Sales and Leasebacks
	  	 	61	  
			
	 9.15
	 	 Hazardous Material
	  	 	61	  
			
	 9.16
	 	 Accounting Changes
	  	 	61	  
			
	 9.17
	 	 Compliance with ERISA
	  	 	61	  
		
	SECTION 10 FINANCIAL COVENANTS	  	 	61	  
			
	 10.01
	 	 Minimum Revenue
	  	 	61	  
			
	 10.02
	 	 Cure Right
	  	 	62	  
			
	 10.03
	 	 Minimum Cash
	  	 	62	  


  
 -iii- 








 TABLE OF CONTENTS 

(continued) 
  

 

							
	 	 	 	  	Page	 
		
	SECTION 11 EVENTS OF DEFAULT	  	 	62	  
			
	 11.01
	 	 Events of Default
	  	 	62	  
			
	 11.02
	 	 Remedies
	  	 	65	  
		
	SECTION 12 MISCELLANEOUS	  	 	66	  
			
	 12.01
	 	 No Waiver
	  	 	66	  
			
	 12.02
	 	 Notices
	  	 	66	  
			
	 12.03
	 	 Expenses, Indemnification, Etc
	  	 	66	  
			
	 12.04
	 	 Amendments, Etc
	  	 	67	  
			
	 12.05
	 	 Successors and Assigns
	  	 	68	  
			
	 12.06
	 	 Survival
	  	 	70	  
			
	 12.07
	 	 Captions
	  	 	70	  
			
	 12.08
	 	 Counterparts
	  	 	70	  
			
	 12.09
	 	 Governing Law
	  	 	70	  
			
	 12.10
	 	 Jurisdiction, Service of Process and Venue
	  	 	70	  
			
	 12.11
	 	 Waiver of Jury Trial
	  	 	71	  
			
	 12.12
	 	 Waiver of Immunity
	  	 	71	  
			
	 12.13
	 	 Entire Agreement
	  	 	71	  
			
	 12.14
	 	 Severability
	  	 	71	  
			
	 12.15
	 	 No Fiduciary Relationship
	  	 	72	  
			
	 12.16
	 	 Confidentiality
	  	 	72	  
			
	 12.17
	 	 USA PATRIOT Act
	  	 	72	  
			
	 12.18
	 	 Maximum Rate of Interest
	  	 	72	  
			
	 12.19
	 	 Real Property Security Waivers
	  	 	72	  
		
	SECTION 13 GUARANTEE	  	 	74	  
			
	 13.01
	 	 The Guarantee
	  	 	74	  
			
	 13.02
	 	 Obligations Unconditional
	  	 	74	  
			
	 13.03
	 	 Reinstatement
	  	 	75	  
			
	 13.04
	 	 Subrogation
	  	 	75	  
			
	 13.05
	 	 Remedies
	  	 	75	  
			
	 13.06
	 	 Instrument for the Payment of Money
	  	 	75	  
			
	 13.07
	 	 Continuing Guarantee
	  	 	75	  
			
	 13.08
	 	 Rights of Contribution
	  	 	75	  
			
	 13.09
	 	 General Limitation on Guarantee Obligations
	  	 	76	  
			
	 13.10
	 	 Additional Waivers
	  	 	77	  


  
 -iv- 









					
	SCHEDULES AND EXHIBITS
			
	Schedule 1	  	-	  	Commitments
	Schedule 7.03	  	-	  	Governmental and Other Approvals
	Schedule 7.05(b)	  	-	  	Certain Intellectual Property
	Schedule 7.05(c)	  	-	  	Material Intellectual Property
	Schedule 7.06	  	-	  	Certain Litigation
	Schedule 7.08	  	-	  	Taxes
	Schedule 7.12	  	-	  	Information Regarding Subsidiaries
	Schedule 7.13(b)-1	  	-	  	Existing Indebtedness of Borrower and its Subsidiaries
	Schedule 7.13(b)-2	  	-	  	Liens Granted by the Obligors
	Schedule 7.14	  	-	  	Material Agreements of Each Obligor
	Schedule 7.15	  	-	  	Permitted Restrictive Agreements
	Schedule 7.16	  	-	  	Real Property Owned or Leased by Borrower and Subsidiaries
	Schedule 7.17	  	-	  	Pension Matters
	Schedule 8.15(a)	  	-	  	Jurisdictions for Foreign Intellectual Property Filings
	Schedule 9.05	  	-	  	Existing Investments
	Schedule 9.10	  	-	  	Transactions with Affiliates
	Schedule 9.14	  	-	  	Permitted Sales and Leasebacks
			
	Exhibit A	  	-	  	Form of Guarantee Assumption Agreement
	Exhibit B	  	-	  	Form of Notice of Borrowing
	Exhibit C-1	  	-	  	Form of Term Loan Note
	Exhibit C-2	  	-	  	Form of PIK Loan Note
	Exhibit D	  	-	  	Form of U.S. Tax Compliance Certificate
	Exhibit E	  	-	  	Form of Compliance Certificate


  
 -v- 








 TERM LOAN AGREEMENT, dated as of April 4, 2014 (this
“Agreement”), among TANDEM DIABETES CARE, INC., a Delaware corporation (“Borrower”), the SUBSIDIARY GUARANTORS from time to time party hereto and the Lenders from time to time party hereto.

 RECITALS 

The Borrower and certain of the Lenders have entered into that certain Term Loan Agreement, dated as of December 24, 2012
(the “Existing Term Loan Agreement”), pursuant to which such Lenders have extended certain term loans in the principal amount of $30,000,000 to the Borrower on January 14, 2013. 

At the request of the Borrower, on the date hereof, the Borrower and the lenders under the Existing Term Loan Agreement shall amend and
restate the Existing Term Loan Agreement. All references in this Agreement to the “Existing Term Loan Agreement” hereafter shall mean the Existing Term Loan Agreement, as amended and restated on the date hereof (except where the context
otherwise requires). 
 The Borrower has also requested that the Lenders hereto extend credit in the form of a new tranche of term loans to
the Borrower in an aggregate principal amount of up to $30,000,000, and such Lenders are prepared to make such loans on and subject to the terms and conditions hereof. 

Accordingly, the parties agree as follows: 

SECTION 1 
 DEFINITIONS

 1.01 Certain Defined Terms. As used herein, the following terms have the following respective meanings: 

“Accounting Change Notice” has the meaning set forth in Section 1.04(a). 

“Act” has the meaning set forth in Section 12.17. 

“Acquisition” means any transaction, or any series of related transactions, by which any Person directly or indirectly,
by means of a take-over bid, tender offer, amalgamation, merger, purchase of assets, or similar transaction having the same effect as any of the foregoing, (a) acquires any business or all or substantially all of the assets of any Person
engaged in any business, (b) acquires control of securities of a Person engaged in a business representing more than 50% of the ordinary voting power for the election of directors or other governing body if the business affairs of such Person
are managed by a board of directors or other governing body, or (c) acquires control of more than 50% of the ownership interest in any Person engaged in any business that is not managed by a board of directors or other governing body. 

“Affected Lender” has the meaning set forth in Section 2.07(a). 

“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more
intermediaries, Controls or is Controlled by or is under common 

  
 1 








 
Control with the Person specified. 
 “Agreement” has the
meaning set forth in the introduction hereto. 
 “Asset Sale” is defined in Section 9.09. 

“Asset Sale Net Proceeds” means the aggregate amount of the cash proceeds received from any Asset Sale, net of any bona
fide costs incurred in connection with such Asset Sale, plus, with respect to any non-cash proceeds of an Asset Sale, the fair market value of such non cash proceeds as determined by the Majority Lenders, acting reasonably. 

“Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an assignee of such Lender.

 “Bankruptcy Code” means Title II of the United States Code entitled “Bankruptcy.” 

“Benefit Plan” means any employee benefit plan as defined in Section 3(3) of ERISA (whether governed by the laws
of the United States or otherwise) to which any Obligor or Subsidiary thereof incurs or otherwise has any obligation or liability, contingent or otherwise. 

“Borrower” has the meaning set forth in the introduction hereto. 

“Borrower Facility” means the premises located at 11025, 11035, 11045, 11065 and 11075 Roselle Street, San Diego, CA
92121, which are leased by Borrower pursuant to the Borrower Leases. 
 “Borrower Landlord” means ARE-11025/11075
Roselle Street, LLC. 
 “Borrower Lease” means (a) the Lease Agreement dated March 7, 2012, by and between
Borrower and ARE-11025/11075 Roselle Street, LLC, as amended by (i) the First Amendment to the Lease Agreement dated April 24, 2012, by and between Borrower and ARE-11025/11075 Roselle Street, LLC, (ii) the Second Amendment to the
Lease Agreement dated July 31, 2012, by and between Borrower and ARE-11025/11075 Roselle Street, LLC, and (iii) the Third Amendment to the Lease Agreement dated November 5, 2013, by and between Borrower and ARE-11025/11075 Roselle
Street, LLC; and (b) the Lease Agreement dated November 5, 2013, by and between Borrower and ARE-11025/11075 Roselle Street, LLC. 

“Borrower Party” has the meaning set forth in Section 12.03(b). 

“Borrowing” means a borrowing consisting of Loans made on the same day by the Lenders according to their respective
Commitments (including without limitation a borrowing of a PIK Loan). 
 “Borrowing Date” means the date of each
Borrowing. 
 “Borrowing Notice Date” means, a date that is at least twenty (20) Business Days prior to the
Borrowing Date of such Borrowing. 

  
 2 








 “Business Day” means a day (other than a Saturday or
Sunday) on which commercial banks are not authorized or required to close in New York City. 

“Capital Lease Obligations” means, as to any Person, the obligations of such Person to pay rent or other
amounts under a lease of (or other agreement conveying the right to use) real and/or personal Property which obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person under GAAP and, for
purposes of this Agreement, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP. 

“Capital Royalty Intercreditor Agreement” means that certain intercreditor agreement, dated as of the
date hereof, between the lenders under the Existing Term Loan Agreement and the Lenders hereto. 

“Change of Control” means (a) the acquisition of ownership, directly or indirectly, beneficially or
of record, by any Person or group of Persons acting jointly or otherwise in concert, of capital stock representing more than 30% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Borrower,
(b) during any period of twelve (12) consecutive calendar months, the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were neither (i) nominated by the board of
directors of the Borrower, nor (ii) appointed by directors so nominated, or (c) the acquisition of direct or indirect Control of the Borrower by any Person or group of Persons acting jointly or otherwise in concert; in each case whether as
a result of a tender or exchange offer, open market purchases, privately negotiated purchases or otherwise; provided, however, that no Change of Control shall be deemed to occur as the result of any of the foregoing occurrences if after such
occurrence, the Existing Shareholder Group collectively owns, directly or indirectly, beneficially or of record, capital stock representing more than 30% of the aggregate ordinary voting power represented by the issued and outstanding capital stock
of Borrower. 
 “Claims” includes claims, demands, complaints, grievances, actions,
applications, suits, causes of action, orders, charges, indictments, prosecutions, informations (brought by a public prosecutor without grand jury indictment) or other similar processes, assessments or reassessments. 

“Closing Date” means the date as of which the Lenders notify the Borrower that the conditions precedent
set forth in Section 6.01 have been satisfied or waived, and the first Borrowing under this Agreement occurs. 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and
regulations promulgated thereunder from time to time. 
 “Collateral” means the collateral provided for
in the Security Documents. 
 “Collateral Access Agreement” means a collateral access agreement with respect to
Borrower Facility executed by Borrower Landlord in form and substance satisfactory to Majority Lenders. 

  
 3 








 “Commitment” means, with respect to each Lender, the
obligation of such Lender to make Loans to the Borrower in accordance with the terms and conditions of this Agreement, which commitment is in the amount set forth opposite such Lender’s name on Schedule 1 under the caption
“Commitment”, as such Schedule may be amended from time to time (subject to any transfer of Commitments from PIOP to another Lender in accordance with Section 8.16 if Borrower is not a “Small Business” within the
meaning of the SBIC Act, and the regulations promulgated thereunder on the Closing Date). The aggregate Commitments on the date hereof equal $30,000,000. For purposes of clarification, the amount of any PIK Loans shall not reduce the amount of the
available Commitment. 
 “Commitment Period” means the period from and including the Closing
Date and through and including March 31, 2015. 
 “Commodity Account” is defined in
the Security Agreement. 
 “Compliance Certificate” has the meaning given to such term in
Section 8.01(d). 
 “Contracts” means contracts,
licenses, leases, agreements, obligations, promises, undertakings, understandings, arrangements, documents, commitments, entitlements or engagements under which a Person has, or will have, any liability or contingent liability (in each case, whether
written or oral, express or implied). 
 “Control” means, in respect of a particular
Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have meanings correlative thereto. 
 “Control Agent” is defined
in the Security Agreement. 
 “Copyright” is defined in the Security Agreement.

 “CRPC” means Capital Royalty Partners II (Cayman) L.P. 

“CRPPF” means Capital Royalty Partners II – Parallel Fund “A” L.P., a Delaware limited
partnership. 
 “Cure Amount” has the meaning set forth in Section 10.02(b).  

“Cure Right” has the meaning set forth in Section 10.02(a).  

“Default” means any Event of Default and any event that, upon the giving of notice, the lapse of time or
both, would constitute an Event of Default. 
 “Defaulting Lender” means, subject to
Section 2.06, any Lender that (a) has failed to perform any of its funding obligations hereunder, including in respect of its Loans, within three (3) Business Days of the date required to be funded by it hereunder, (b) has
notified the Borrower or any Lender that it does not intend to comply with its funding obligations or has 

  
 4 








 
made a public statement to that effect with respect to its funding obligations hereunder or under other agreements in which it commits to extend credit, or (c) has, or has a direct or
indirect parent company that has, (i) become the subject of an Insolvency Proceeding, (ii) had a receiver, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or
liquidation of its business or a custodian appointed for it, or (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such proceeding or appointment; provided that a Lender shall not be a
Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority. 

“Deposit Account” is defined in the Security Agreement. 

“Dollars” and “$” means lawful money of the United States of America.

 “Domestic Subsidiary” means any Subsidiary that is a corporation, limited liability company,
partnership or similar business entity incorporated, formed or organized under the laws of the United States, any State of the United States or the District of Columbia. 

“Eligible Transferee” means and includes a commercial bank, an insurance company, a finance company, a
financial institution, any investment fund that invests in loans or any other “accredited investor” (as defined in Regulation D of the Securities Act) that is principally in the business of managing investments or holding assets for
investment purposes; provided that “Eligible Transferee” shall not include any Person that is principally in the business of managing investments or holding assets for investment purposes that has a board participation right in a company
that produces, markets or sells, or develops a program to market or sell, a marketed or Phase III product in competition with the Borrower. 

“Environmental Law” means any federal, state, provincial or local governmental law, rule, regulation,
order, writ, judgment, injunction or decree relating to pollution or protection of the environment or the treatment, storage, disposal, release, threatened release or handling of hazardous materials, and all local laws and regulations related to
environmental matters and any specific agreements entered into with any competent authorities which include commitments related to environmental matters. 

“Equity Cure Right” has the meaning set forth in Section
10.02(a)(i). 
 “Equity Interest” shall mean, with respect to any
Person, any and all shares, interests, participations or other equivalents, including membership interests (however designated, whether voting or nonvoting), of equity of such Person, including, if such Person is a partnership, partnership interests
(whether general or limited) and any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of property of, such partnership, but excluding debt securities convertible or
exchangeable into such equity. 
 “Equivalent Amount” means, with respect to an amount
denominated in one currency, the amount in another currency that could be purchased by the amount in the first currency determined by reference to the Exchange Rate at the time of determination. 

  
 5 








 “ERISA” means the United States Employee Retirement Income
Security Act of 1974, as amended. 
 “ERISA Affiliate” means, collectively, any Obligor,
Subsidiary thereof, and any Person under common control, or treated as a single employer, with any Obligor or Subsidiary thereof, within the meaning of Section 414(b), (c), (m) or (o) of the Code. 

“ERISA Event” means (i) a reportable event as defined in Section 4043 of ERISA with respect to
a Title IV Plan, excluding, however, such events as to which the PBGC by regulation has waived the requirement of Section 4043(a) of ERISA that it be notified within 30 days of the occurrence of such event; (ii) the applicability of the
requirements of Section 4043(b) of ERISA with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, to any Title IV Plan where an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such plan within the following 30 days; (iii) a withdrawal by any Obligor or any ERISA Affiliate thereof from a Title IV Plan or the termination of any Title IV Plan
resulting in liability under Sections 4063 or 4064 of ERISA; (iv) the withdrawal of any Obligor or any ERISA Affiliate thereof in a complete or partial withdrawal (within the meaning of Section 4203 and 4205 of ERISA) from any
Multiemployer Plan if there is any potential liability therefore, or the receipt by any Obligor or any ERISA Affiliate thereof of notice from any Multiemployer Plan that it is in reorganization or insolvency pursuant to Section 4241 or 4245 of
ERISA; (v) the filing of a notice of intent to terminate, the treatment of a plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Title IV Plan or Multiemployer
Plan; (vi) the imposition of liability on any Obligor or any ERISA Affiliate thereof pursuant to Sections 4062(e) or 4069 of ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the failure by any Obligor or any
ERISA Affiliate thereof to make any required contribution to a Plan, or the failure to meet the minimum funding standard of Section 412 of the Code with respect to any Title IV Plan (whether or not waived in accordance with Section 412(c)
of the Code) or the failure to make by its due date a required installment under Section 430 of the Code with respect to any Title IV Plan or the failure to make any required contribution to a Multiemployer Plan; (viii) the determination
that any Title IV Plan is considered an at-risk plan or a plan in endangered to critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; (ix) an event or condition which might reasonably
be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer Plan; (x) the imposition of any liability under Title I or Title IV of
ERISA, other than PBGC premiums due but not delinquent under Section 4007 of ERISA, upon any Obligor or any ERISA Affiliate thereof; (xi) an application for a funding waiver under Section 303 of ERISA or an extension of any
amortization period pursuant to Section 412 of the Code with respect to any Title IV Plan; (xii) the occurrence of a non-exempt prohibited transaction under Sections 406 or 407 of ERISA for which any Obligor or any Subsidiary thereof may
be directly or indirectly liable; (xiii) a violation of the applicable requirements of Section 404 or 405 of ERISA or the exclusive benefit rule under Section 401(a) of the Code by any fiduciary or disqualified person for which any
Obligor or any ERISA Affiliate thereof may be directly or indirectly liable; (xiv) the occurrence of an act or omission which could give rise to the imposition on any Obligor or any ERISA Affiliate thereof of fines, penalties, taxes or related
charges under Chapter 43 of the Code or 

  
 6 








 
under Sections 409, 502(c), (i) or (1) or 4071 of ERISA; (xv) the assertion of a material claim (other than routine claims for benefits) against any Plan or the assets thereof, or
against any Obligor or any Subsidiary thereof in connection with any such plan; (xvi) receipt from the IRS of notice of the failure of any Qualified Plan to qualify under Section 401(a) of the Code, or the failure of any trust forming part
of any Qualified Plan to fail to qualify for exemption from taxation under Section 501(a) of the Code; (xvii) the imposition of any lien (or the fulfillment of the conditions for the imposition of any lien) on any of the rights, properties
or assets of any Obligor or any ERISA Affiliate thereof, in either case pursuant to Title I or IV, including Section 302(f) or 303(k) of ERISA or to Section 401(a)(29) or 430(k) of the Code; or (xviii) the establishment or amendment
by any Obligor or any Subsidiary thereof of any “welfare plan”, as such term is defined in Section 3(1) of ERISA, that provides post-employment welfare benefits in a manner that would increase the liability of any Obligor. 

“Event of Default” has the meaning set forth in Section 11.01.

 “Exchange Rate” means the rate at which any currency (the “Pre-Exchange
Currency”) may be exchanged into another currency (the “Post-Exchange Currency”), as set forth on such date on the relevant Reuters screen at or about 11:00 a.m. (Central time) on such date. In the event that
such rate does not appear on the Reuters screen, the “Exchange Rate” with respect to exchanging such Pre-Exchange Currency into such Post-Exchange Currency shall be determined by reference to such other publicly available service for
displaying exchange rates as may be agreed upon by the Borrower and the Majority Lenders or, in the absence of such agreement, such Exchange Rate shall instead be determined by the Majority Lenders by any reasonable method as they deem applicable to
determine such rate, and such determination shall be conclusive absent manifest error. 
 “Excluded
Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise
Taxes and branch profits Taxes, in each case imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing
such Tax, (b) Other Connection Taxes, (c) U.S. federal withholding Taxes that are imposed on amounts payable to a Lender to the extent that the obligation to withhold amounts existed on the date that such Lender became a “Lender”
under this Agreement, except in each case to the extent such Lender is a direct or indirect assignee of any other Lender that was entitled, at the time the assignment of such other Lender became effective, to receive additional amounts under
Section 5.05, (d) any Taxes imposed in connection with FATCA, (e) any Medicare Taxes, and (f) Taxes attributable to such Recipient’s failure to comply with Section
5.05(e). 
 “Existing Shareholder Group” means the group of investors who, on the
date hereof, collectively own, directly or indirectly, beneficially or of record, capital stock representing more than 30% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of Borrower, consisting of
Domain Ventures, Texas Pacific Group, Delphi Ventures, HLM Venture Partners, and Kearny Venture Partners. 

“Existing Term Loan Agreement” has the meaning set forth in the recitals hereto. 

  
 7 








 “Existing Term Loan Lenders” means the “Lenders”
as defined in the Existing Term Loan Agreement.  
 “Existing Term Loan Obligations”
means the “Obligations” as defined in the Existing Term Loan Agreement. 
 “Expense
Cap” has the meaning set forth in the Fee Letter. 
 “FATCA” means Sections
1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not more onerous to comply with), any regulations or official interpretations thereof and any agreements
entered into pursuant to Section 1471(b)(1) of the Internal Revenue Code. 
 “Fee
Letter” means that fee letter agreement dated as of the date hereof between Borrower and the Lenders party thereto. 

“Foreign Lender” means a Lender that is not a U.S. Person. 

“Foreign Subsidiary” means a Subsidiary of Borrower that is not a Domestic Subsidiary. 

“GAAP” means generally accepted accounting principles in the United States of America, as in effect from
time to time, set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants, in the statements and pronouncements of the Financial Accounting Standards Board and in such
other statements by such other entity as may be in general use by significant segments of the accounting profession that are applicable to the circumstances as of the date of determination. Subject to
Section 1.02, all references to “GAAP” shall be to GAAP applied consistently with the principles used in the preparation of the financial statements described in Section
7.04(a). 
 “Governmental Approval” means any consent, authorization,
approval, order, license, franchise, permit, certificate, accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

“Governmental Authority” means any nation, government, branch of power (whether executive, legislative or
judicial), state, province or municipality or other political subdivision thereof and any entity exercising executive, legislative, judicial, monetary, regulatory or administrative functions of or pertaining to government, including without
limitation regulatory authorities, governmental departments, agencies, commissions, bureaus, officials, ministers, courts, bodies, boards, tribunals and dispute settlement panels, and other law-, rule- or regulation-making organizations or entities
of any State, territory, county, city or other political subdivision of the United States. 

“Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or
otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and
including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such 

  
 8 








 
Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or
services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee
shall not include endorsements for collection or deposit in the ordinary course of business. 
 “Guarantee
Assumption Agreement” means a Guarantee Assumption Agreement substantially in the form of Exhibit A by an entity that, pursuant to Section 8.12(a), is required
to become a “Subsidiary Guarantor” hereunder in favor of the Lenders. 
 “Guaranteed
Obligations” has the meaning set forth in Section 13.01. 

“Hazardous Material” means any substance, element, chemical, compound, product, solid, gas, liquid,
waste, by-product, pollutant, contaminant or material which is hazardous or toxic, and includes, without limitation, (a) asbestos, polychlorinated biphenyls and petroleum (including crude oil or any fraction thereof) and (b) any material
classified or regulated as “hazardous” or “toxic” or words of like import pursuant to an Environmental Law. 

“Hedging Agreement” means any interest rate exchange agreement, foreign currency exchange agreement,
commodity price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement. 

“Indebtedness” of any Person means, without duplication, (a) all obligations of such Person for
borrowed money or obligations of such Person with respect to deposits or advances of any kind by third parties, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such
Person upon which interest charges are customarily paid, (d) all obligations of such Person under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in
respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by such Person of Indebtedness of others,
(h) all Capital Lease Obligations of such Person, (i) all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty (j) obligations under any Hedging Agreement
currency swaps, forwards, futures or derivatives transactions, and (k) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other
entity (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 entity, except to the extent the terms
of such Indebtedness provide that such Person is not liable therefor. 
 “Indemnified
Party” has the meaning set forth in Section 12.03(b). 

  
 9 








 “Indemnified Taxes” means (a) Taxes, other than
Excluded Taxes, imposed on or with respect to any payment made by or on account of any Obligation and (b) to the extent not otherwise described in clause (a), Other Taxes. 

“Insolvency Proceeding” means (i) any case, action or proceeding before any court or other
Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (ii) any general assignment for the benefit of creditors, composition, marshaling of assets
for creditors, or other, similar arrangement in respect of any Person’s creditors generally or any substantial portion of such Person’s creditors, in each case undertaken under U.S. Federal, state or foreign law, including the Bankruptcy
Code.  
 “Intellectual Property” means all Patents, Trademarks, Copyright, and Technical Information,
whether registered or not, domestic and foreign. Intellectual Property shall include all: 
 a) applications or registrations relating to such Intellectual
Property; 
 b) rights and privileges arising under applicable Laws with respect to such Intellectual Property; 

c) rights to sue for past, present or future infringements of such Intellectual Property; and 

d) rights of the same or similar effect or nature in any jurisdiction corresponding to such Intellectual Property throughout the world. 

“Interest-Only Period” means the period from and including the Closing Date and through and including the
sixteenth (16th) Payment Date. 
 “Interest
Period” means, with respect to each Borrowing, (i) initially, the period commencing on and including the Borrowing Date thereof and ending on and including the next Payment Date, and, (ii) thereafter, each period beginning on
and including the day following the immediately preceding Interest Period and ending on and including the next succeeding Payment Date; provided that the term “Interest Period” shall include any period
selected by the Majority Lenders from time to time in accordance with the definition of “Post-Default Rate”. 

“Invention” means any novel, inventive and useful art, apparatus, method, process, machine (including
article or device), manufacture or composition of matter, or any novel, inventive and useful improvement in any art, method, process, machine (including article or device), manufacture or composition of matter.  

“Investment” means, for any Person: (a) the acquisition (whether for cash, property, services or securities or
otherwise) of capital stock, bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to make any such acquisition (including any “short sale” or any sale of any securities
at a time when such securities are not owned by the Person entering into such sale); (b) the making of any deposit with, or advance, loan or other extension of credit to, any other Person (including the purchase of property from another Person
subject to an understanding or agreement, contingent or otherwise, 

  
 10 








 
to resell such property to such Person), but excluding any such advance, loan or extension of credit having a term not exceeding 90 days arising in connection with the sale of inventory or
supplies by such Person in the ordinary course of business; (c) the entering into of any Guarantee of, or other contingent obligation with respect to, Indebtedness or other liability of any other Person and (without duplication) any amount
committed to be advanced, lent or extended to such Person; or (d) the entering into of any Hedging Agreement. 

“IRS” means the U.S. Internal Revenue Service or any successor agency, and to the extent relevant, the
U.S. Department of the Treasury. 
 “Knowledge” means the actual knowledge of any
Responsible Officer of any Person or, so long as he is employed by the Borrower or its Subsidiaries, and the actual knowledge of Robert Anacone, so long as he is an executive officer of the Borrower. 

“Landlord Consent” means each landlord consent with respect to the Borrower Facility duly executed and delivered by the
Borrower in connection with this Agreement in form and substance satisfactory to Majority Lenders. 

“Laws” means, collectively, all international, foreign, federal, state, provincial, territorial,
municipal and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having
the force of law. 
 “Lenders” means Capital Royalty Partners II L.P., CRPPF, PIOP
and CRPC, together with their successors and each assignee of a Lender pursuant to Section 12.05(b) and “Lender” means any one of them. 

“Lien” means any mortgage, lien, pledge, charge or other security interest, or any lease, title retention
agreement, mortgage, restriction, easement, right-of-way, option or adverse claim (of ownership or possession) or other encumbrance of any kind or character whatsoever or any preferential arrangement that has the practical effect of creating a
security interest. 
 “Liquidity” means the balance of unencumbered (other than by Liens
securing the Obligations and the Existing Term Loan Obligations) cash and Permitted Cash Equivalent Investments (which for greater certainty shall not include any undrawn credit lines), in each case, to the extent held in an account over which the
Lenders have a first priority perfected security interest. 
 “Loan” means
(i) each loan advanced by a Lender pursuant to Section 2.01 and (ii) each PIK Loan deemed to have been advanced by a Lender pursuant to Section 3.02(d). For purposes of clarification, any calculation of the
aggregate outstanding principal amount of Loans on any date of determination shall include both the aggregate principal amount of loans advanced pursuant to Section 2.01 and not yet repaid, and all PIK Loans deemed to have been advanced
and not yet repaid, on or prior to such date of determination. 

  
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 “Loan Documents” means, collectively, this Agreement, the
Notes, the Security Documents, the Fee Letter, any subordination agreement or any intercreditor agreement entered into by Lenders with any other creditors of Obligors, including the Capital Royalty Intercreditor Agreement, and any other present or
future document, instrument, agreement or certificate executed by Obligors for the benefit of Lenders in connection with this Agreement or any of the other Loan Documents, all as amended, restated, or otherwise modified. 

“Loss” means judgments, debts, liabilities, expenses, costs, damages or losses, contingent or otherwise,
whether liquidated or unliquidated, matured or unmatured, disputed or undisputed, contractual, legal or equitable, including loss of value, professional fees, including fees and disbursements of legal counsel on a full indemnity basis, and all costs
incurred in investigating or pursuing any Claim or any proceeding relating to any Claim. 
 “Majority
Lenders” means, at any time, Lenders having at such time in excess of 50% of the aggregate Commitments (or, if such Commitments are terminated, the outstanding principal amount of the Loans) then in effect, ignoring, in such
calculation, the Commitments of and outstanding Loans owing to any Defaulting Lender. 
 “Margin Stock”
means “margin stock” within the meaning of Regulations U and X. 
 “Material Adverse
Change” and “Material Adverse Effect” mean a material adverse change in or effect on (i) the business, condition (financial or otherwise), operations, performance, Property or prospects of Borrower and its
Subsidiaries taken as a whole, (ii) the ability of any Obligor to perform its obligations under the Loan Documents, or (iii) the legality, validity, binding effect or enforceability of the Loan Documents or the rights and remedies of the
Lenders under any of the Loan Documents. 
 “Material Agreements” means (a) that
certain Amended and Restated Development and Commercialization Agreement, dated January 4, 2013 by and between Borrower and DexCom, Inc., (b) that certain Research, Development and Commercialization Agreement, dated January 2, 2013,
by and between Borrower and JDRF, and (c) the agreements required to be filed with the SEC as material contracts under Item 601(b)(10) of Regulation S-K of the Securities Act of 1933, as amended, excluding compensation arrangements.
“Material Agreement” means any one such agreement. 
 “Material Indebtedness”
means, at any time, any Indebtedness of any Obligor the outstanding principal amount of which, individually or in the aggregate, exceeds $500,000 (or the Equivalent Amount in other currencies). 

“Material Intellectual Property” means, the Obligor Intellectual Property described in
Schedule 7.05(c) and any other Obligor Intellectual Property after the date hereof the loss of which could reasonably be expected to have a Material Adverse Effect. 

“Maturity Date” means the earlier to occur of (i) the twenty-fourth (24th) Payment Date following the Closing Date, and (ii) the date on which the Loans are accelerated pursuant to Section 11.02. 

  
 12 








 “Maximum Rate” has the meaning set forth in
Section 12.18. 
 “Medicare Tax” means Section 1411 of the Code,
as of the date of this Agreement (or any amended or successor version), and any regulations or official interpretations thereof. 

“Multiemployer Plan” means any multiemployer plan, as defined in Section 400l(a)(3) of ERISA, to
which any ERISA Affiliate incurs or otherwise has any obligation or liability, contingent or otherwise. 

“Non-Consenting Lender” has the meaning set forth in Section
2.07(a). 
 “Non-Disclosure Agreement” has the meaning set forth in
Section 12.16. 
 “Note” means a promissory note
executed and delivered by the Borrower to the Lenders in accordance with Section 2.04 or 3.02(d). 

“Notice of Borrowing” has the meaning given to such term in Section
2.02. 
 “Obligations” means, with respect to any Obligor, all amounts,
obligations, liabilities, covenants and duties of every type and description owing by such Obligor to any Lender, any other indemnitee hereunder or any participant, arising out of, under, or in connection with, any Loan Document, whether direct or
indirect (regardless of whether acquired by assignment), absolute or contingent, due or to become due, whether liquidated or not, now existing or hereafter arising and however acquired, and whether or not evidenced by any instrument or for the
payment of money, including, without duplication, (i) if such Obligor is the Borrower, all Loans, (ii) all interest, whether or not accruing after the filing of any petition in bankruptcy or after the commencement of any insolvency,
reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition interest is allowed in any such proceeding, and (iii) all other fees, expenses (including fees, charges and disbursement of counsel), interest,
commissions, charges, costs, disbursements, indemnities and reimbursement of amounts paid and other sums chargeable to such Obligor under any Loan Document. 

“Obligor Intellectual Property” means Intellectual Property owned by or licensed to any of the
Obligors. 
 “Obligors” means, collectively, the Borrower and the Subsidiary Guarantors
and their respective successors and permitted assigns. 
 “Other Connection Taxes” means,
with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient 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, or sold or assigned an interest in any Loan or Loan
Document). 
 “Other Taxes” means all present or future stamp, court or documentary, intangible,
recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security 

  
 13 








 
interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made
pursuant to Section 5.05(g)). 
 “Participant” has the meaning set forth in Section
12.05(e). 
 “Patents” is defined in the Security Agreement. 

“Payment Date” means each March 31, June 30, September 30, December 31
and the Maturity Date, commencing on the first Payment Date to occur following the first Borrowing Date; provided that, if any such date shall occur on a day that is not a Business Day, the applicable Payment Date shall
be the next preceding Business Day. 
 “PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity performing similar functions. 

“Permitted Acquisition” means any acquisition by the Borrower or any of its wholly-owned Subsidiaries,
whether by purchase, merger or otherwise, of all or substantially all of the assets of, all of the Equity Interests of, or a business line or unit or a division of, any Person; provided that: 

(a) immediately prior to, and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing
or would result therefrom; 
 (b) all transactions in connection therewith shall be consummated, in all material respects, in
accordance with all applicable Laws and in conformity with all applicable Governmental Approvals; 
 (c) in the case of the
acquisition of all of the Equity Interests of such Person, all of the Equity Interests (except for any such securities in the nature of directors’ qualifying shares required pursuant to applicable Law) acquired, or otherwise issued by such
Person or any newly formed Subsidiary of the Borrower in connection with such acquisition, shall be owned 100% by the Borrower, a Subsidiary Guarantor or any other Subsidiary, and the Borrower shall have taken, or caused to be taken, as of the date
such Person becomes a Subsidiary of the Borrower, each of the actions set forth in Section 8.12, if applicable; 

(d) the Borrower and its Subsidiaries shall be in compliance with the financial covenants set forth in
Sections 10.01 and 10.03 on a pro forma basis after giving effect to such acquisition; and 
 (e) such
Person (in the case of an acquisition of Equity Interests) or assets (in the case of an acquisition of assets or a division) (i) shall be engaged or used, as the case may be, in substantially the same business or lines of business in which the
Borrower and/or its Subsidiaries are engaged or (ii) shall have a similar customer base as the Borrower and/or its Subsidiaries. 

“Permitted Cash Equivalent Investments” means (i) marketable direct obligations issued


  
 14 








 
or unconditionally guaranteed by the United States, including obligations issued by a United States government sponsored enterprise, or any agency or any State thereof, or any political
subdivision or municipality of any such State, provided such obligations that are long-term have a credit rating from Standard & Poor’s Ratings Group or Fitch Rating of at least AA or from Moody’s Investors Service, Inc. of at
least Aa, and such municipal obligations that only have a short-term rating have a credit rating from Moody’s Investors Service, Inc. of at least MIG1 or from Standard & Poor’s Ratings Group of at least SP-1 having maturities of
not more than two (2) years from the date of acquisition; (ii) commercial paper maturing no more than one (1) year after its creation and, at the time of acquisition, having a rating from either Standard & Poor’s Ratings
Group of at least A-1 or Moody’s Investors Service, Inc. of at least P-1; (iii) certificates of deposit (including Eurodollar certificates of deposit), time deposits, overnight bank deposits or bankers’ acceptances maturing within one
(1) year from the date of acquisition thereof issued by any bank insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation having at the date of acquisition thereof combined capital and surplus of
not less than $500,000,000 and, at the time of acquisition, having a rating from either Standard & Poor’s Ratings Group of at least A-1 or Moody’s Investors Service, Inc. of at least P-1; (iv) Investments in money market
funds registered according to SEC Rule 2a-7 of the Investment Company Act of 1940, as amended, and that maintain a net asset value of $1.00 per share and maintain a minimum of $1,000,000,000 in assets; and (v) corporate bonds, including
Eurodollar issues of United States domestic corporations, and U.S. dollar denominated issues of foreign corporations, provided such obligations have a credit rating from Standard & Poor’s Ratings Group or Fitch Rating of at least AA or
from Moody’s Investors Service, Inc. of at least Aa. 
 “Permitted Indebtedness” means any
Indebtedness permitted under Section 9.01. 
 “Permitted
Liens” has the meaning set forth in Section 9.02. 

“Permitted Priority Debt” means Indebtedness of the Borrower, in an amount not to exceed at any time 80%
of the face amount at such time of the Borrower’s eligible accounts receivable; provided that (a) such Indebtedness, if secured, is secured solely by the Borrower’s accounts receivable and inventory,
cash proceeds thereof, and cash and (b) the holders or lenders thereof have executed and delivered to Lenders an intercreditor agreement reasonably satisfactory to the Majority Lenders. 

“Permitted Refinancing” means, with respect to any Indebtedness, any extensions, renewals and
replacements of such Indebtedness; provided that such extension, renewal or replacement (i) shall not increase the outstanding principal amount of such Indebtedness, (ii) contains terms relating to
outstanding principal amount, amortization, maturity, collateral (if any) and subordination (if any), and other material terms taken as a whole no less favorable in any material respect to the Borrower and its Subsidiaries or the Lenders than the
terms of any agreement or instrument governing such existing Indebtedness, (iii) shall have an applicable interest rate which does not exceed the rate of interest of the Indebtedness being replaced, and (iv) shall not contain any new
requirement to grant any lien or security or to give any guarantee that was not an existing requirement of such Indebtedness. 

“Permitted Restrictive Agreements” has the meaning set forth in Section
7.15. 

  
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 “Permitted Subordinated Debt” means Indebtedness:

 (i) that is governed by documentation containing representations, warranties, covenants and events of default no more burdensome
or restrictive than those contained in the Loan Documents, (ii) that has a maturity date later than the Maturity Date, (iii) in respect of which no cash payments of principal or interest are required prior to the Maturity Date, and
(iv) in respect of which the holders have agreed in favor of the Borrower and Lenders that (A) prior to the date on which the Commitments have expired or been terminated and all Obligations have been paid in full indefeasibly in cash, such
holders will not exercise any remedies available to them in respect of such Indebtedness, and (B) all Liens (if any) securing such Indebtedness are subordinated to the Liens securing the Obligations. 

“Person” means any individual, corporation, company, voluntary association, partnership, limited
liability company, joint venture, trust, unincorporated organization or Governmental Authority or other entity of whatever nature. 

“PIK Loan” has the meaning set forth in Section 3.02(d).

 “PIK Period” means the period beginning on the Closing Date and ending on the earlier to
occur of (i) the sixteenth (16th) Payment Date after the Closing Date and (ii) the date on which any Event of Default shall have occurred (provided
that if such Event of Default shall have been cured or waived, the PIK Period shall resume until the earlier to occur of the next Event of Default and the sixteenth
(16th) Payment Date after the Closing Date). 

“PIOP” means Parallel Investment Opportunities Partners II L.P., a Delaware limited partnership.

 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to
the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be)
an “employer” as defined in Section 3(5) of ERISA. 
 “Post-Default Rate”
has the meaning set forth in Section 3.02(b). 
 “Prepayment
Premium” has the meaning set forth in Section 3.03(a). 

“Product” means the t:slim Insulin Delivery System or its successors, in a form substantially similar to
that as approved by the U.S. Food and Drug Administration in November 2011. 
 “Property”
of any Person means any property or assets, or interest therein, of such Person. 
 “Proportionate
Share” means, with respect to any Lender, the percentage obtained by dividing (a) the sum of the Commitment (or, if the Commitments are terminated, the outstanding principal amount of the Loans) of such Lender then in effect by
(b) the sum of the Commitments (or, if the Commitments are terminated, the outstanding principal amount of the Loans) of all 

  
 16 








 
Lenders then in effect. 
 “Qualified Plan” means
an employee benefit plan (as defined in Section 3(3) of ERISA) other than a Multiemployer Plan (i) that is or was at any time maintained or sponsored by any Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA
Affiliate thereof has ever made, or was ever obligated to make, contributions, and (ii) that is intended to be tax qualified under Section 401(a) of the Code. 

“Real Property Security Documents” means the Landlord Consent and the Collateral Access Agreement, and
any mortgage or deed of trust or any other real property security document executed or required hereunder or under the Security Agreement to be executed by any Obligor and granting a security interest in real Property owned or leased (as tenant) by
any Obligor in favor of the Lenders. 
 “Recipient” means any Lender or any other
recipient of any payment to be made by or on account of any Obligation. 
 “Redemption
Date” has the meaning set forth in Section 3.03(a). 

“Redemption Price” has the meaning set forth in Section 3.03(a).

 “Register” has the meaning set forth in Section
12.05(d). 
 “Regulation T” means Regulation T of
the Board of Governors of the Federal Reserve System, as amended. 
 “Regulation U” means
Regulation U of the Board of Governors of the Federal Reserve System, as amended. 
 “Regulation
X” means Regulation X of the Board of Governors of the Federal Reserve System, as amended. 

“Regulatory Approvals” means any registrations, licenses, authorizations, permits or approvals issued by
any Governmental Authority and applications or submissions related to any of the foregoing. 

“Requirement of Law” means, as to any Person, any statute, law, treaty, rule or regulation or
determination, order, injunction or judgment of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its Properties or revenues. 

“Responsible Officer” of any Person means the President, chief executive officer, chief operations
officer/vice president of operations, or chief financial officer of such Person.  
 “Restricted
Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of the Borrower or any of its Subsidiaries, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, 

  
 17 








 
cancellation or termination of any such shares of capital stock of the Borrower or any of its Subsidiaries or any option, warrant or other right to acquire any such shares of capital stock of the
Borrower or any of its Subsidiaries. 
 “Revenue” of a Person means all revenue properly recognized
under GAAP, consistently applied, less all rebates, discounts and other price allowances. 

“SBA” means U.S. Small Business Administration. 

“SBIC” means Small Business Investment Company. 

“SBIC Act” means Small Business Investment Act of 1958, as amended. 

“Security Agreement” means the Security Agreement, dated as of the date hereof, among the Obligors and
the Lenders, granting a security interest in the Obligors’ personal Property in favor of the Lenders. 

“Security Documents” means, collectively, the Security Agreement, each Short-Form IP Security Agreement,
each Real Property Security Document, and each other security document, control agreement or financing statement required or recommended to perfect Liens in favor of the Lenders. 

“Securities Account” is defined in the Security Agreement. 

“Short-Form IP Security Agreements” means short-form copyright, patent or trademark (as the case may be)
security agreements entered into by one or more Obligors in favor of the Lenders, each in form and substance satisfactory to the Majority Lenders (and as amended, modified or replaced from time to time). 

“Solvent” means, with respect to any Person at any time, that (a) the present fair saleable value of
the Property of such Person is greater than the total amount of liabilities (including contingent liabilities) of such Person, (b) the present fair saleable value of the Property 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, (c) such Person has not incurred and does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s
ability to pay as such debts and liabilities mature and (d) such Person would not be unable to obtain a letter from its auditors that did not contain a going concern qualification. 

“Specified Financial Covenants” has the meaning set forth in Section
10.02(a). 
 “Subordinated Debt Cure Right” has the meaning set forth
in Section 10.02(a). 
 “Subsidiary” means, with respect to any
Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated
financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other
ownership interests representing more than 50% of the 

  
 18 








 
equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or
(b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent. 

“Subsidiary Guarantors” means each of the Subsidiaries of the Borrower identified under the caption
“SUBSIDIARY GUARANTORS” on the signature pages hereto and each Subsidiary of the Borrower that becomes, or is required to become, a “Subsidiary Guarantor” after the date hereof pursuant to Section 8.12(a) or
(b). 
 “Substitute Lender” has the meaning set forth in
Section 2.07(a). 
 “Taxes” means all present or
future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 “Technical Information” means all trade secrets and other proprietary or confidential
information, public information, non-proprietary know-how, any information of a scientific, technical, or business nature in any form or medium, standards and specifications, conceptions, ideas, innovations, discoveries, Invention disclosures, all
documented research, developmental, demonstration or engineering work and all other information, data, plans, specifications, reports, summaries, experimental data, manuals, models, samples, know-how, technical information, systems, methodologies,
computer programs, information technology and any other information.  
 “Title IV Plan”
means an employee benefit plan (as defined in Section 3(3) of ERISA) other than a Multiemployer Plan (i) that is or was at any time maintained or sponsored by any Obligor or any ERISA Affiliate thereof or to which any Obligor or any ERISA
Affiliate thereof has ever made, or was obligated to make, contributions, and (ii) that is or was subject to Section 412 of the Code, Section 302 of ERISA or Title IV of ERISA. 

“Trademarks” is defined in the Security Agreement. 

“Transactions” means the execution, delivery and performance by each Obligor of this Agreement and the
other Loan Documents to which such Obligor is intended to be a party and the Borrowings (and the use of the proceeds of the Loans). 

“Use of Proceeds Statement” has the meaning set forth in Section
6.01(h)(xii). 
 “U.S. Person” means a “United States Person”
within the meaning of Section 7701(a)(30) of the Code. 
 “U.S. Tax Compliance
Certificate” has the meaning set forth in Section 5.05(e)(ii)(B)(3). 

“Withdrawal Liability” means, at any time, any liability incurred (whether or not assessed) by any ERISA Affiliate and
not yet satisfied or paid in full at such time with respect to any Multiemployer Plan pursuant to Section 4201 of ERISA. 

  
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 1.02 Accounting Terms and Principles. All accounting determinations required to be made pursuant hereto
shall, unless expressly otherwise provided herein, be made in accordance with GAAP. All components of financial calculations made to determine compliance with this Agreement, including Section 10, shall be adjusted to include or exclude,
as the case may be, without duplication, such components of such calculations attributable to any Acquisition consummated after the first day of the applicable period of determination and prior to the end of such period, as determined in good faith
by the Borrower based on assumptions expressed therein and that were reasonable based on the information available to the Borrower at the time of preparation of the Compliance Certificate setting forth such calculations.  

1.03 Interpretation. For all purposes of this Agreement, except as otherwise expressly provided herein or unless the context otherwise requires,
(a) the terms defined in this Agreement include the plural as well as the singular and vice versa; (b) words importing gender include all genders; (c) any reference to a Section, Annex, Schedule or Exhibit refers to a Section of, or
Annex, Schedule or Exhibit to, this Agreement; (d) any reference to “this Agreement” refers to this Agreement, including all Annexes, Schedules and Exhibits hereto, and the words herein, hereof, hereto and hereunder and words of
similar import refer to this Agreement and its Annexes, Schedules and Exhibits as a whole and not to any particular Section, Annex, Schedule, Exhibit or any other subdivision; (e) references to days, months and years refer to calendar days,
months and years, respectively; (f) all references herein to “include” or “including” shall be deemed to be followed by the words “without limitation”; (g) the word “from” when used in connection
with a period of time means “from and including” and the word “until” means “to but not including”; and (h) accounting terms not specifically defined herein shall be construed in accordance with GAAP (except for
the term “property” , which shall be interpreted as broadly as possible, including, in any case, cash, securities, other assets, rights under contractual obligations and permits and any right or interest in any property, except where
otherwise noted). Unless otherwise expressly provided herein, references to organizational documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all permitted subsequent amendments,
restatements, extensions, supplements and other modifications thereto. 
 1.04 Changes to GAAP. If, after the date hereof, any change occurs in
GAAP or in the application thereof and such change would cause any amount required to be determined for the purposes of the covenants to be maintained or calculated pursuant to Section 8, 9 or 10 to be materially different
than the amount that would be determined prior to such change, then: 
 (a) the Borrower will provide a detailed notice
of such change (an “Accounting Change Notice”) to the Lenders (which requirement will be deemed satisfied by the description thereof in a Form 10-K, Form 10-Q or Form 8-K filed with the SEC); 

(b) either the Borrower or the Majority Lenders may indicate within 90 days following the date of the Accounting Change Notice that they wish
to revise the method of calculating such financial covenants or amend any such amount, in which case the parties will in good faith attempt to agree upon a revised method for calculating the financial covenants; 

(c) until the Borrower and the Majority Lenders have reached agreement on such revisions, (i) such financial covenants or amounts will be
determined without giving effect to 

  
 20 








 
such change and (ii) all financial statements, Compliance Certificates and similar documents provided hereunder shall be provided together with a reconciliation between the calculations and
amounts set forth therein before and after giving effect to such change in GAAP; 
 (d) if no party elects to revise the method of
calculating the financial covenants or amounts, then the financial covenants or amounts will not be revised and will be determined in accordance with GAAP without giving effect to such change; and 

(e) any Event of Default arising as a result of such change which is cured by operation of this Section 1.04 shall be deemed to be
of no effect ab initio. 
 SECTION 2 

THE COMMITMENT 
 2.01 Commitments.
Each Lender agrees severally, on and subject to the terms and conditions of this Agreement (including Section 6), to make a term loan (provided that PIK Loans shall be deemed not to constitute “term loans” for purposes of this
Section 2.01) to the Borrower, on a Business Day during the Commitment Period in Dollars in an aggregate principal amount for such Lender not to exceed such Lender’s Commitment (subject to any transfer of Commitments from PIOP to
another Lender in accordance with Section 8.16 if Borrower is not a “Small Business” within the meaning of the SBIC Act, and the regulations promulgated thereunder on the Closing Date); provided,
however, that at no time shall any Lender be obligated to make a Loan in excess of such Lender’s Proportionate Share of the amount by which the then effective Commitments exceeds the aggregate principal amount of Loans
outstanding at such time. Amounts of Loans repaid may not be reborrowed. 
 2.02 Borrowing Procedures. Subject to the terms and conditions of
this Agreement (including Section 6), the Borrowing of the term Loans described in Section 2.01 shall be made on written notice in the form of Exhibit B given by the Borrower to the Lenders not later than 11:00 a.m.
(Central time) on the Borrowing Notice Date (a “Notice of Borrowing”). 
 2.03 Fees. The Borrower shall
pay to the Lenders such fees as described in the Fee Letter. 
 2.04 Notes. If requested by any Lender, the Loans of such Lender shall be
evidenced by one or more promissory notes (each a “Note”). The Borrower shall prepare, execute and deliver to the Lenders such promissory note(s) payable to the Lenders (or, if requested by the Lenders, to the
Lenders and their registered assigns) and in the form attached hereto as Exhibit C-1. Thereafter, the Loans and interest thereon shall at all times (including after assignment pursuant to Section 12.05) be represented by one or more
promissory notes in such form payable to the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 

2.05 Use of Proceeds. The Borrower shall use the proceeds of the Loans for general working capital purposes and corporate purposes and to pay fees,
costs and expenses incurred in connection with the Transactions; provided that the Lenders shall have no responsibility as to the use of any proceeds of Loans in the amount made by PIOP. Provided that PIOP is a Lender hereunder as of the Closing
Date, no portion of any proceeds of Loans in the amount made by 

  
 21 








 
PIOP (i) will be used to acquire realty or to discharge an obligation relating to the prior acquisition of realty; (ii) will be used outside of the United States (except to pay for
services to be rendered outside the United States and to acquire from abroad inventory, material and equipment or property rights for use or sale in the United States, unless prohibited by Part 107.720 of the United States Code of Federal
Regulations); or (iii) will be used for any purpose contrary to the public interest (including but not limited to activities which are in violation of law) or inconsistent with free competitive enterprise, in each case, within the meaning of
Part 107.720 of Title 13 of the United States Code of Federal Regulations. Provided that PIOP is a Lender hereunder as of the Closing Date, Borrower will use the proceeds of the Loans in the amount made by PIOP for only those purposes specified in
the SBA Form 1031 provided to the Lenders, and Borrower shall not violate any SBA regulations which may be applicable to it. 
 2.06 Defaulting
Lenders. 
 (a) Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender
becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable law: 

(i) Waivers and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect
to this Agreement shall be restricted as set forth in Section 12.04. 
 (ii) Reallocation of Payments. Any payment of
principal, interest, fees or other amounts received by the Lenders for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Section 11 or otherwise), shall be applied at such time or times as
follows: first, as the Borrower may request (so long as no Default exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement; second, if so determined by the
Majority Lenders and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of such Defaulting Lender to fund Loans under this Agreement; third, to the payment of any amounts owing to the
Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fourth, so long as no Default
exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and fifth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (A) such payment is a payment of the principal amount of any Loans in respect of which such
Defaulting Lender has not fully funded its appropriate share and (B) such Loans were made at a time when the conditions set forth in Section 6 were satisfied or waived, such payment shall be applied solely to pay the Loans of all
non-Defaulting Lenders on a pro rata basis prior to being applied to the payment of any Loans of such Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed
by a Defaulting Lender pursuant to this Section 2.06(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto. 

  
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 (b) Defaulting Lender Cure. If the Borrower and the Majority Lenders agree in
writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, that Lender will, to the extent applicable, purchase that portion of outstanding Loans of the other Lenders or take such other actions as
necessary to cause the Loans to be held on a pro rata basis by the Lenders in accordance with their Proportionate Share, whereupon that Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect
to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting
Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender. 

2.07 Substitution of Lenders. 
 (a)
Substitution Right. In the event that any Lender (an “Affected Lender”), (i) becomes a Defaulting Lender or (ii) does not consent to any amendment, waiver or consent to any Loan Document for which the consent of
the Majority Lenders is obtained but that requires the consent of other Lenders (a “Non-Consenting Lender”), either the Borrower may pay in full such Affected Lender with respect to amounts due or such Affected Lender may be
substituted by any willing Lender or Affiliate of any Lender or Eligible Transferee (in each case, a “Substitute Lender”); provided that any substitution of a Non-Consenting Lender shall occur only with the consent of
Majority Lenders. 
 (b) Procedure. To substitute such Affected Lender or pay in full the Obligations owed to such Affected
Lender, the Borrower shall deliver a notice to such Affected Lender. The effectiveness of such payment or substitution shall be subject to the delivery by the Borrower (or, as may be applicable in the case of a substitution, by the Substitute
Lender) of (i) payment for the account of such Affected Lender, of, to the extent accrued through, and outstanding on, the effective date for such payment or substitution, all Obligations owing to such Affected Lender (which for the avoidance
of doubt, shall not include any Prepayment Premium) and (ii) in the case of a substitution, an Assignment and Acceptance whereby the Substitute Lender shall, among other things, agree to be bound by the terms of the Loan Documents. 

(c) Effectiveness. Upon satisfaction of the conditions set forth in Section 2.07(a) and Section 2.07(b)
above, the Control Agent shall record such substitution or payment in the Register, whereupon (i) in the case of any payment in full of an Affected Lender, such Affected Lender’s Commitments shall be terminated and (ii) in the case of
any substitution of an Affected Lender, (A) such Affected Lender shall sell and be relieved of, and the Substitute Lender shall purchase and assume, all rights and claims of such Affected Lender under the Loan Documents, except that the
Affected Lender shall retain such rights expressly providing that they survive the repayment of the Obligations and the termination of the Commitments, (B) such Substitute Lender shall become a “Lender” hereunder and (C) such
Affected Lender shall execute and deliver an Assignment and Acceptance to evidence such substitution; provided, however, that the failure of any Affected Lender to execute any such Assignment and Acceptance
shall not render such sale and purchase (or the corresponding assignment) invalid. 

  
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 SECTION 3 

PAYMENTS OF PRINCIPAL AND INTEREST 

3.01 Repayment. 
 (a)
Repayment. During the Interest-Only Period, no payments of principal of the Loans shall be due. Borrower agrees to repay to the Lenders the outstanding principal amount of the Loans, on each Payment Date occurring after the Interest-Only Period,
in equal installments. The amounts of such installments shall be calculated by dividing (i) the sum of the aggregate principal amount of the Loans outstanding on the first day following the end of the Interest-Only Period, by (b) the
number of Payment Dates remaining prior to the Maturity Date. 
 (b) Application. Any optional or mandatory prepayment
of the Loans shall be applied to the installments thereof under Section 3.01(a) in the inverse order of maturity. To the extent not previously paid, the principal amount of the Loans, together with all other outstanding Obligations,
shall be due and payable on the Maturity Date. 
 3.02 Interest. 

(a) Interest Generally. Subject to Section 3.02(d), Borrower agrees to pay to the Lenders interest on the unpaid
principal amount of the Loans and the amount of all other outstanding Obligations, in the case of the Loans, for the period from the applicable Borrowing Date, and in the case of any other Obligation, from the date such other Obligation is due and
payable, in each case, until paid in full, at a rate per annum equal to 11.50%. 

(b) Default Interest. Notwithstanding the foregoing, upon the occurrence and during the
continuance of any Event of Default, the interest payable pursuant to Section 3.02(a) shall increase automatically by 4.00% per annum (such aggregate increased rate, the
“Post-Default Rate”). Notwithstanding any other provision herein (including Section 3.02(d)), if interest is required to be paid at the Post-Default Rate, it shall be paid entirely in
cash. If any Obligation is not paid when due under the applicable Loan Document, the amount thereof shall accrue interest at a rate equal to 4.00% per annum (without duplication of interest payable at the
Post-Default Rate). 
 (c) Interest Payment Dates. Accrued interest on the Loans shall be payable in arrears on
the last day of each Interest Period in cash, and upon the payment or prepayment thereof (on the principal amount so paid or prepaid); provided that interest payable at the Post-Default Rate shall be payable from time to time on
demand. 
 (d) Paid In-Kind Interest. Notwithstanding Section 3.01(a), at any time during the PIK Period,
the Borrower may elect to pay the interest on the outstanding principal amount of the Loans payable pursuant to Section 3.01 as follows: (i) only 9.50% of the 11.50% per annum interest in cash and
(ii) 2.00% of the 11.50% per annum interest as compounded interest, added to the aggregate principal amount of the Loans (the amount of any such compounded interest being a “PIK
Loan”). Each PIK Loan shall be evidenced by a Note in the form of Exhibit C-2. The principal amount of each PIK Loan shall accrue interest in accordance with the provisions of this Agreement applicable to the Loans.


  
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 3.03 Prepayments. 

(a) Optional Prepayments. The Borrower shall have the right optionally to prepay the outstanding principal amount of the Loans in
whole or in part on any Payment Date (a “Redemption Date”) for an amount equal to the aggregate principal amount of the Loans being prepaid plus the Prepayment Premium plus any accrued but unpaid interest and
any fees which are due and owing (such aggregate amount, the “Redemption Price”). The applicable “Prepayment Premium” shall be an amount calculated pursuant to Section
3.03(a)(i). 
 (i) If the Redemption Date occurs: 

(A) on or prior to the fourth Payment Date, the Prepayment Premium shall be an amount equal to 3.00% of the aggregate outstanding principal
amount of the Loans being prepaid on such Redemption Date; 
 (B) after the fourth Payment Date, and on or prior to the eighth Payment Date,
the Prepayment Premium shall be an amount equal to 2.00% of the aggregate outstanding principal amount of the Loans being prepaid on such Redemption Date; 

(C) after the eighth Payment Date, and on or prior to the twelfth Payment Date, the Prepayment Premium shall be an amount equal to 1.00% of
the aggregate outstanding principal amount of the Loans being prepaid on such Redemption Date; 
 (D) after the twelfth Payment Date, the
Prepayment Premium shall be an amount equal to 0.00% of the aggregate outstanding principal amount of the Loans being prepaid on such Redemption Date. 

(ii) To determine the aggregate outstanding principal amount of the Loans, and how many Payment Dates have occurred, as of any Redemption Date
for purposes of Section 3.03(a)(i), the number of Payment Dates shall be deemed to be the number of Payment Dates that shall have occurred following the Closing Date. 

(iii) No partial prepayment shall be made under this Section 3.03(a) except in connection with any event described in
Section 3.03(b) and then only to the extent provided in Section 3.03(b). 
 (iv) On or prior to the Redemption Date, the
Lenders may notify Borrower of a reduction in the amounts due under Section 3.03(a)(i) with respect to any portion of the Loans held by any entity licensed by the SBA as an SBIC. 

(b) Mandatory Prepayments. 

(i) Asset Sales. In the event of any contemplated Asset Sale not permitted under Section 9.09, the Borrower shall provide 30
days’ prior written notice of such Asset Sale to the Lenders and, if within such notice period Majority Lenders advise the Borrower that a prepayment is required pursuant to this Section 3.03(b)(i), the Borrower shall: (x) if
the assets sold represent substantially all of the assets or revenues of the Borrower, or represent any specific line of business which either on its own or together with other lines of business sold over


  
 25 








 
the term of this Agreement account for revenue generated by such lines of business exceeding 10% of the revenue of the Borrower in the immediately preceding year, prepay the aggregate outstanding
principal amount of the Loans in an amount equal to the Redemption Price applicable on the date of such Asset Sale in accordance with Section 3.03(a), and (y) in the case of all other Asset Sales not described in the foregoing
clause (x), prepay the Loans in an amount equal to the entire amount of the Asset Sale Net Proceeds of such Asset Sale, plus any accrued but unpaid interest and any fees which are due and owing, credited in the following order: 

(A) first, in reduction of the Borrower’s obligation to pay any unpaid interest and any fees which are due and owing; 

(B) second, in reduction of the Borrower’s obligation to pay any Claims or Losses referred to in Section 12.03 which are due
and owing; 
 (C) third, in reduction of the Borrower’s obligation to pay any amounts due and owing on account of the unpaid principal
amount of the Loans; 
 (D) fourth, in reduction of any other Obligation which are due and owing; and 

(E) fifth, to the Borrower or such other Persons as may lawfully be entitled to or directed by the Borrower to receive the remainder. 

(ii) Change of Control. In the event of a Change of Control, the Borrower shall immediately provide notice of such Change of Control to
the Lenders and, if within 10 days of receipt of such notice Majority Lenders notify the Borrower in writing that a prepayment is required pursuant to this Section 3.03(b)(ii), the Borrower shall prepay the aggregate outstanding
principal amount of the Loans in an amount equal to the Redemption Price applicable on the date of such Change of Control in accordance with Section 3.03(a). 

SECTION 4 
 PAYMENTS,
ETC. 
 4.01 Payments. 

(a) Payments Generally. Each payment of principal, interest and other amounts to be made by the Obligors under this Agreement or
any other Loan Document shall be made in Dollars, in immediately available funds, without deduction, set off or counterclaim, to an account to be designated by the Majority Lenders by notice to the Borrower, not later than 4:00 p.m. (Central time)
on the date on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made on the next succeeding Business Day). 

(b) Application of Payments. Each Obligor shall, at the time of making each payment under this Agreement or any other Loan Document,
specify to the Lenders the amounts payable by such Obligor hereunder to which such payment is to be applied (and in the event that 

  
 26 








 
Obligors fail to so specify, or if an Event of Default has occurred and is continuing, the Lenders may apply such payment in the manner they determine to be appropriate). 

(c) Non-Business Days. If the due date of any payment under this Agreement (other than of principal of or interest on the Loans)
would otherwise fall on a day that is not a Business Day, such date 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.

 4.02 Computations. All computations of interest and fees hereunder shall be computed on the basis of a year of 360 days and actual days elapsed
(including the first day but excluding the last day) occurring in the period for which payable. 
 4.03 Notices. Each notice of optional
prepayment shall be effective only if received by the Lenders not later than 4:00 p.m. (Central time) on the date one Business Day prior to the date of prepayment. Each notice of optional prepayment shall specify the amount to be prepaid and the
date of prepayment. 
 4.04 Set-Off. 

(a) Set-Off Generally. Upon the occurrence and during the continuance of any Event of Default, the Lenders and each of their
Affiliates are hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness
at any time owing by the Lenders or such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations, whether or not the Lenders shall have made any demand and although such obligations may be unmatured. The
Lenders agree promptly to notify the Borrower after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of the Lenders and their Affiliates under
this Section 4.04 are in addition to other rights and remedies (including other rights of set-off) that the Lenders and their Affiliates may have. 

(b) Exercise of Rights Not Required. Nothing contained herein shall require the Lenders to exercise any such right or shall
affect the right of the Lenders to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or obligation of Borrower. 

SECTION 5 
 YIELD
PROTECTION, ETC. 
 5.01 Additional Costs.  

(a) Change in Requirements of Law Generally. If, on or after the date hereof, the adoption of any Requirement of Law, or any change in
any Requirement of Law, or any change in the interpretation or administration thereof by any court or other Governmental Authority charged with the interpretation or administration thereof, or compliance by any of the Lenders (or its lending office)
with any request or directive (whether or not having the force of law) of any such Governmental Authority, shall impose, modify or deem applicable any reserve 

  
 27 








 
(including any such requirement imposed by the Board of Governors of the Federal Reserve System), special deposit, contribution, insurance assessment or similar requirement, in each case that
becomes effective after the date hereof, against assets of, deposits with or for the account of, or credit extended by, a Lender (or its lending office) or shall impose on a Lender (or its lending office) any other condition affecting the Loans or
the Commitment, and the result of any of the foregoing is to increase the cost to such Lender of making or maintaining the Loans, or to reduce the amount of any sum received or receivable by such Lender under this Agreement or any other Loan
Document, by an amount deemed by such Lender to be material (other than with respect to Taxes), then the Borrower shall pay to such Lender on demand such additional amount or amounts as will compensate such Lender for such increased cost or
reduction. 
 (b) Change in Capital Requirements. If a Lender shall have determined that, on or after the date hereof, the
adoption of any Requirement of Law regarding capital adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Authority charged with the interpretation or administration thereof, or any
request or directive regarding capital adequacy (whether or not having the force of law) of any such Governmental Authority, in each case that becomes effective after the date hereof, has or would have the effect of reducing the rate of return on
capital of a Lender (or its parent) as a consequence of a Lender’s obligations hereunder or the Loans to a level below that which a Lender (or its parent) could have achieved but for such adoption, change, request or directive by an amount
reasonably deemed by it to be material, then the Borrower shall pay to such Lender on demand such additional amount or amounts as will compensate such Lender (or its parent) for such reduction.  

(c) Notification by Lender. The Lenders will promptly notify the Borrower of any event of which it has knowledge, occurring after
the date hereof, which will entitle a Lender to compensation pursuant to this Section 5.01. Before giving any such notice pursuant to this Section 5.01(c) such Lender shall designate a different lending office if such
designation (x) will, in the reasonable judgment of such Lender, avoid the need for, or reduce the amount of, such compensation and (y) will not, in the reasonable judgment of such Lender, be materially disadvantageous to such Lender. A
certificate of the Lender claiming compensation under this Section 5.01, setting forth the additional amount or amounts to be paid to it hereunder, shall be conclusive and binding on the Borrower in the absence of manifest error. 

 (d) 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 constitute a change in Requirements of Law for all purposes of this
Section 5, regardless of the date enacted, adopted or issued. 
 (e) Notwithstanding anything herein to the contrary, no
amounts shall be payable by the Borrower under this Section 5 if the Loan is assigned to a Lender (or is originated by a Lender) whose status as a Lender, whether as a Foreign Lender or because the structure of the Lender, is different
than that of either Capital Royalty Partners II L.P., CRPPF, PIOP or CRPC 

  
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and such amounts would not be payable on the date hereof if such Lender had been Capital Royalty Partners II L.P., CRPPF, PIOP or CRPC. 

5.02 Reserved.  
 5.03 Illegality.
Notwithstanding any other provision of this Agreement, in the event that on or after the date hereof the adoption of or any change in any Requirement of Law or in the interpretation or application thereof by any competent Governmental Authority
shall make it unlawful for a Lender or its lending office to make or maintain the Loans (and, in the opinion of such Lender, the designation of a different lending office would either not avoid such unlawfulness or would be disadvantageous to such
Lender), then such Lender shall promptly notify the Borrower thereof following which (a) the Lender’s Commitment shall be suspended until such time as such Lender may again make and maintain the Loans hereunder and (b) if such
Requirement of Law shall so mandate, the Loans shall be prepaid by the Borrower on or before such date as shall be mandated by such Requirement of Law in an amount equal to the Redemption Price applicable on the date of such prepayment in accordance
with Section 3.03(a). 
 5.04 Reserved.  

5.05 Taxes.  
 (a)
Payments Free of Taxes. Any and all payments by or on account of any Obligation shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law requires the deduction or withholding of
any Tax from any such payment by an Obligor, then such Obligor shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law
and, if such Tax is an Indemnified Tax, then the sum payable by such Obligor shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable
under this Section 5) the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. 

(b) Payment of Other Taxes by the Borrower. The Borrower shall timely pay to the relevant Governmental Authority in accordance
with applicable law, or at the option of each Lender, timely reimburse it for, Other Taxes. 
 (c) Evidence of Payments.
As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 5, the Borrower shall deliver to each Lender the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment. 
 (d) Indemnification. The Borrower shall reimburse and indemnify each Recipient, within 10
days after written demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 5) payable or paid by such Recipient or required
to be withheld or deducted from a payment to such Recipient and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by


  
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the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender shall be conclusive absent manifest error. 

(e) Status of Lenders. 

(i) Any Lender that is entitled to an exemption from, or reduction of withholding Tax with respect to payments made under any Loan Document
shall timely deliver to the Borrower such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender
shall deliver such other documentation prescribed by applicable law as reasonably requested by the Borrower as will enable the Borrower to determine whether or not such Lender is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in Section 5.05(e)(ii)(A), (B) (C) or (D)) shall not be required
if in the Lender’s reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender. 

(ii) Without limiting the generality of the foregoing, in the event that Borrower is a U.S. Person: 

(A) any Lender that is a U.S. Person shall deliver to the Borrower on or prior to the date on which such Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed originals of IRS Form W-9 (or successor form) certifying that such Lender is exempt from U.S. Federal backup withholding tax; 

(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), whichever of the following is applicable: 

(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN (or successor form) establishing an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the “interest” article of such tax treaty
and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN (or successor form) establishing an exemption from, or reduction of, U.S. Federal withholding Tax pursuant to the “business profits” or
“other income” article of such tax treaty; 
 (2) executed originals of IRS Form W-8ECI (or successor form); 

  
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 (3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio
interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit D to the effect that such Foreign Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a
“10 percent shareholder” of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax
Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or 
 (4) to the extent a Foreign Lender is
not the beneficial owner, executed originals of IRS Form W-8IMY (or successor form), accompanied by IRS Form W-8ECI (or successor form), IRS Form W-8BEN (or successor form), a U.S. Tax Compliance Certificate, IRS Form W-9 (or successor form), and/or
other certification documents from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such
Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner; 
 (C) any Foreign Lender
shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the reasonable request of the Borrower), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. Federal withholding Tax, duly completed, together with
such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made; and 

(D) any Foreign Lender shall deliver to the Borrower any forms and information necessary to establish that the Foreign Lender is not subject
to withholding tax under FATCA. 
 Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in
any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so. 

(f) Treatment of Certain Refunds. If any party determines, in its sole discretion exercised in good faith, that it has received a
refund of any Taxes as to which it has been indemnified pursuant to this Section 5 (including by the payment of additional amounts pursuant to this Section 5), it shall pay to the indemnifying party an amount equal to such
refund (but only to the extent of indemnity payments made under this Section 5 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest
(other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this
paragraph (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the
contrary in this Section 5.05(f), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this  

  
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Section 5.05(f) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the indemnification
payments or additional amounts giving rise to such refund had never been paid. This Section 5.05(f) shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes
that it deems confidential) to the indemnifying party or any other Person. 
 (g) Mitigation Obligations. If the
Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or to any Governmental Authority for the account of any Lender pursuant to Section 5.01 or this Section 5.05, then such Lender shall (at
the request of the Borrower) use commercially reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign and delegate its rights and obligations hereunder to another of its offices, branches or
Affiliates if, in the sole reasonable judgment of such Lender, such designation or assignment and delegation would (i) eliminate or reduce amounts payable pursuant to Section 5.01 or this Section 5.05, as the case may
be, in the future, (ii) not subject such Lender to any unreimbursed cost or expense and (iii) not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment and delegation. 
 SECTION 6 

CONDITIONS PRECEDENT 
 6.01 Conditions
to Initial Borrowing. The obligation of each Lender to make a Loan as part of the first Borrowing hereunder shall not become effective until the following conditions precedent shall have been satisfied or waived in writing by the Majority
Lenders: 
 (a) Borrowing Date. Such Borrowing shall be at Borrower’s option; provided that
such Borrowing shall not occur later than March 31, 2015. 
 (b) Amount of Initial Borrowing. The amount of such
Borrowing shall not exceed $30,000,000. 
 (c) No Other Secured Debt. On the Closing Date, no Obligor shall have any
secured Indebtedness outstanding or available to be drawn, other than under this Agreement, the Existing Term Loan Agreement, and any Permitted Indebtedness. 

(d) Terms of Material Agreements, Etc. Lenders shall be satisfied reasonably with the terms and conditions of all of the
Obligors’ Material Agreements set forth on Schedule 7.14 hereto. 
 (e) No Law Restraining Transactions. No
applicable law or regulation shall restrain, prevent or, in the reasonable judgment of the Lenders, impose materially adverse conditions upon the Transactions. 

(f) Payment of Fees. Lenders shall be satisfied with the arrangements to deduct the fees set forth herein from the proceeds
advanced. 

  
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 (g) Updated Lien Searches. Lenders shall be satisfied with updated Lien searches
prior to the Closing Date showing that no Liens exist on the Collateral other than Permitted Liens. 
 (h) Documentary
Deliveries. The Lenders shall have received the following documents, each of which shall be in form and substance satisfactory to the Lenders: 

(i) Agreement. This Agreement duly executed and delivered by the Borrower and each of the other parties hereto. 

(ii) Security Documents. 

(A) The Security Agreement, duly executed and delivered by each of the Obligors; 

(B) Each of the Short-Form IP Security Agreements, duly executed and delivered by the applicable Obligor; 

(C) Evidence of filing of UCC-1 financing statements against each Obligor in its jurisdiction of formation or incorporation, as the case may
be; 
 (D) Evidence of filing of each of the Short-Form IP Security Agreements in the United States Patent and Trademark Office; and 

(E) Without limitation, all other documents and instruments reasonably required to perfect the Lenders’ Lien on, and security interest
in, the Collateral required to be delivered on or prior to the Closing Date (including delivery of any capital stock certificates and undated stock powers executed in blank) shall have been duly executed and delivered and be in proper form for
filing, and shall create in favor of the Lenders, a perfected Lien on, and security interest in, the Collateral, subject to no Liens other than Permitted Liens. 

(iii) Intercreditor Agreement. The Amended and Restated Intercreditor Agreement, dated as of the date hereof, relating to the Permitted
Priority Debt, duly executed and delivered by the Existing Term Loan Lenders, the Lenders hereto, and Silicon Valley Bank. 
 (iv) Capital
Royalty Intercreditor Agreement. The Capital Royalty Intercreditor Agreement, duly executed and delivered by the Existing Term Loan Lenders and the Lenders hereto. 

(v) Notes. Any Notes requested in accordance with Section 2.04. 

(vi) Approvals. Certified copies of all material licenses, consents, authorizations and approvals of, and notices to and filings and
registrations with, any Governmental Authority (including all foreign exchange approvals), and of all third-party consents and approvals, necessary in connection with the making and performance by the Obligors of the Loan Documents and the
Transactions. 

  
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 (vii) Corporate Documents. Certified copies (as of a recent date) of the constitutive
documents of each Obligor (if publicly available in such Obligor’s jurisdiction of formation) and of resolutions of the Board of Directors (or shareholders, if applicable) of each Obligor authorizing the making and performance by it of the Loan
Documents to which it is a party. 
 (viii) Incumbency Certificate. A certificate of each Obligor as to the authority, incumbency and
specimen signatures of the persons who have executed the Loan Documents and any other documents in connection herewith on behalf of the Obligors. 

(ix) Officer’s Certificate. A certificate, dated the Closing Date and signed by the President, a Vice President or a financial
officer of Borrower, confirming compliance with the conditions set forth in Section 6.02. 
 (x) Opinions of Counsel. A
favorable opinion, dated the Closing Date, of counsel to each Obligor in form acceptable to the Lenders and their counsel. 
 (xi)
Insurance. Certificates of insurance evidencing the existence of commercial liability and property loss insurance required to be maintained by the Borrower pursuant to Section 8.05 and the designation of the Lenders as the loss
payees or additional named insured, as the case may be, thereunder. 
 (xii) SBA Forms. Provided that PIOP is a Lender hereunder as of
the Closing Date, completed SBA Forms 480, 652, and 1031 (Parts A and B), showing Borrower’s financial projections (including balance sheets and income and cash flow statements) for the period described therein and a representation to PIOP of
Borrower’s intended use of proceeds of the Loans (the “Use of Proceeds Statement”). 
 6.02 Conditions to Each Borrowing.
The obligation of each Lender to make a Loan as part of any Borrowing hereunder (including the first Borrowing) is also subject to satisfaction of the following further conditions precedent on the applicable Borrowing Date: 

(a) Commitment Period. Such Borrowing Date shall occur during the Commitment Period. 

(b) No Default; Representations and Warranties. Both immediately prior to the making of such Loan and after giving effect thereto
and to the intended use thereof: 
 (i) no Default shall have occurred and be continuing; and 

(ii) the representations and warranties made by the Borrower in Section 7 (other than (i) Section 7.20 if PIOP is
not a Lender as of the Closing Date or (ii) Sections 7.20(a) or (b), if following the Closing Date, Borrower ceases to be a “Small Business” within the meaning of the SBIC Act, and the regulations promulgated thereunder), shall
be true on and as of the Borrowing Date and immediately after giving effect to the application of the proceeds of the Borrowing with the same force and effect as if made on and as of such date, except that


  
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the representation regarding representations and warranties that refer to a specific earlier date shall be that they were true on such earlier date. 

(c) Financing Fee. Except in the case of any PIK Loan, each Lender shall have received its portion of the fees payable pursuant
to Section 2.03. 
 (d) Notice of Borrowing. Except in the case of any PIK Loan, Capital Royalty Partners II L.P.
shall have received a Notice of Borrowing as and when required pursuant to Section 2.02. 
 Each Borrowing shall
constitute a certification by the Borrower to the effect that the conditions set forth in this Section 6.02 have been fulfilled as of the applicable Borrowing Date. 

SECTION 7 

REPRESENTATIONS AND WARRANTIES 

The Borrower represents and warrants to the Lenders that: 

7.01 Power and Authority. Each of the Borrower and its Subsidiaries (a) is duly organized and validly existing under the laws of its jurisdiction
of organization, (b) has all requisite corporate or other power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its assets and carry on its business as now being or as proposed to be
conducted except to the extent that failure to have the same could not reasonably be expected to have a Material Adverse Effect, (c) is qualified to do business and is in good standing in all jurisdictions in which the nature of the business
conducted by it makes such qualification necessary and where failure so to qualify could (either individually or in the aggregate) reasonably be expected to result in a Material Adverse Effect, (d) has full power, authority and legal right to
make and perform each of the Loan Documents to which it is a party and, in the case of the Borrower, to borrow the Loans hereunder and (e) is in material compliance with all applicable Laws to which it is subject and all Material Agreements to
which it is a party. 
 7.02 Authorization; Enforceability. The Transactions are within each Obligor’s corporate powers and have
been duly authorized by all necessary corporate and, if required, by all necessary shareholder action. This Agreement has been duly executed and delivered by each Obligor and constitutes, and each of the other Loan Documents to which it is a party
when executed and delivered by such Obligor will constitute, a legal, valid and binding obligation of such Obligor, enforceable against each Obligor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy,
insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law). 
 7.03 Governmental and Other Approvals; No Conflicts. The Transactions (a) do not require any consent or
approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for (i) such as have been obtained or made and are in full force and effect, (ii) filings and recordings in respect of
the Liens created pursuant 

  
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to the Security Documents, (iii) as disclosed in Schedule 7.03, and (iv) such consents or approvals the absence of which, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect, (b) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of Borrower and its Subsidiaries or any order of any Governmental Authority, other
than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (c) will not violate or result in a default under any Material Agreement, or give rise to a right thereunder to
require any payment to be made by any such Person, and (d) except for the Liens created pursuant to the Security Documents, will not result in the creation or imposition of any Lien on any asset of Borrower and its Subsidiaries. 

7.04 Financial Statements; Material Adverse Change. 

(a) Financial Statements. The Borrower has heretofore furnished to the Lenders certain financial statements as provided for in
Section 8.01. Such financial statements present fairly, in all material respects, the financial position and results of operations and cash flows of the Borrower and its Subsidiaries as of such dates and for such periods in accordance
with GAAP, subject to year-end audit adjustments and the absence of footnotes in the case of the previously-delivered statements of the type described in Section 8.01(b). Neither the Borrower nor any of its Subsidiaries has any material
contingent liabilities or unusual forward or long-term commitments not disclosed in the aforementioned financial statements and which in any case is material in relation to the business, operations, properties, assets or condition (financial or
otherwise) of Borrower and its Subsidiaries taken as a whole. 
 (b) No Material Adverse Change. Since December 31,
2013, there has been no Material Adverse Change. 
 7.05 Properties.  

(a) Property Generally. Each Obligor has good and marketable fee simple title to, or valid leasehold interests in, all its real
and personal property material to its business, subject only to Permitted Liens and except for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their
intended purposes. 
 (b) Intellectual Property. The Obligors represent and warrant to the Lenders as of the date hereof
as follows, and the Obligors acknowledge that the Lenders are relying on such representations and warranties in entering into this Agreement: 

(i) Schedule 7.05(b) contains: 

(A) a complete and accurate list, as of March 19, 2014, of all applied for or registered Patents, including the jurisdiction and patent
number; 
 (B) a complete and accurate list, as of March 19, 2014, of all applied for or registered Trademarks, including the
jurisdiction, trademark application or registration number and the application or registration date; and 

  
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 (C) a complete and accurate list, as of March 19, 2014, of all applied for or registered
Copyrights; 
 (ii) Each Obligor is the absolute beneficial owner of all right, title and interest in and to Material Intellectual Property
listed on Schedule 7.05(c) as owned by such Obligor with good and marketable title, free and clear of any Liens of any kind whatsoever other than Permitted Liens. Without limiting the foregoing, and except as set forth in Schedule
7.05(b): 
 (A) other than with respect to the Material Agreements and licenses implied by the sale of a product to end retail users, or
as permitted by Section 9.09 below, the Obligors have not transferred ownership of Material Intellectual Property listed on Schedule 7.05(c) as owned by such Obligors, in whole or in part, to any other Person who is not an
Obligor; 
 (B) other than (i) the Material Agreements, (ii) customary restrictions in in-bound licenses of Intellectual Property
and non-disclosure agreements, or (iii) as would have been or is permitted by Section 9.09 below, there are no judgments, covenants not to sue, permits, grants, licenses, Liens (other than Permitted Liens), or other agreements or
arrangements relating to Borrower’s Material Intellectual Property, including any development, submission, services, research, license or support agreements, which bind, obligate or otherwise restrict the Obligors in any manner that would
reasonably be expected to have a Material Adverse Effect; 
 (C) the use of any of the Obligor Intellectual Property in the business of the
Borrower as currently conducted or as currently contemplated to be conducted, to the best of Borrower’s Knowledge, does not breach, violate, infringe or interfere with or constitute a misappropriation of any valid rights arising under any
Intellectual Property of any other Person; 
 (D) there are no pending or, to Borrower’s Knowledge, threatened in writing Claims
against the Obligors asserted by any other Person relating to the Obligor Intellectual Property owned by or exclusively licensed to Obligors, including any Claims of adverse ownership, invalidity, infringement, misappropriation, violation or other
opposition to or conflict with such Intellectual Property, except as could not reasonably be expected to have a Material Adverse Effect; the Obligors have not received any written notice from any Person that the Borrower’s business, the use of
the Obligor Intellectual Property in the business of the Borrower as currently conducted, or the manufacture, use or sale of any product or the performance of any service by the Borrower infringes upon, violates or constitutes a misappropriation of,
or may infringe upon, violate or constitute a misappropriation of, or otherwise interfere with, any other Intellectual Property of any other Person; 

(E) the Obligors have no Knowledge that the Obligor Intellectual Property owned by or exclusively licensed to Obligors is being infringed,
violated, misappropriated or otherwise used by any other Person without the express authorization of the Obligors. Without limiting the foregoing, the Obligors have not put any other Person on notice of actual or potential infringement, violation or
misappropriation of any of the Material Intellectual Property owned by or exclusively licensed to Obligors; the Obligors have not 

  
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initiated the enforcement of any Claim with respect to any of the Obligor Intellectual Property owned by or exclusively licensed to Obligors; 

(F) all relevant current and former employees and contractors of Borrower have executed written confidentiality and invention assignment
Contracts with Borrower that irrevocably assign to Borrower or its designee all of their rights to any Inventions relating to Borrower’s business that are conceived or reduced to practice by such employees within the scope of their employment
or by such contractors within the scope of their contractual relationship with Borrower, to the extent permitted by applicable law; 
 (G)
to the Knowledge of the Obligors, the Obligor Intellectual Property is all the Intellectual Property necessary for the operation of the Borrower’s business as it is currently conducted or as currently contemplated to be conducted, except for
such Intellectual Property the absence of which could not reasonably be expected to have a Material Adverse Effect; 
 (H) the Obligors have
taken reasonable precautions to protect the secrecy, confidentiality and value of its Material Intellectual Property consisting of trade secrets and confidential information, except as could not reasonably be expected to have a Material Adverse
Effect. 
 (I) each Obligor has delivered or otherwise made available to the Lenders accurate and complete copies of all Material Agreements
relating to the Obligor Intellectual Property; 
 (J) there are no pending or, to the Knowledge of any of the Obligors, threatened in
writing Claims against the Obligors asserted by any other Person relating to the Material Agreements, including any Claims of breach or default under such Material Agreements, except as could not reasonably be expected to have a Material Adverse
Effect; 
 (iii) With respect to the Material Intellectual Property owned by or for which prosecution is controlled by Obligors consisting of
issued Patents, except as set forth in Schedule 7.05(b), and without limiting the representations and warranties in Section 7.05(b)(ii): 

(A) each of the issued claims in such Patents, to Borrower’s Knowledge, is valid and enforceable; 

(B) the inventors listed in such Patents have executed written Contracts with the Borrower or its predecessor-in-interest that properly and
irrevocably assigns to Borrower or its predecessor-in-interest all of their rights to any of the Inventions claimed in such Patents to the extent permitted by applicable law; 

(C) none of the Patents, or the Inventions claimed in them, have been dedicated to the public except as a result of intentional decisions made
by the applicable Obligor; 

  
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 (D) to Borrower’s Knowledge, all prior art material to such Patents was adequately
disclosed to or considered by the respective patent offices during prosecution of such Patents to the extent required by applicable law or regulation; 

(E) subsequent to the issuance of such Patents, neither the Borrower nor any Subsidiary Guarantors or their predecessors in interest, have
filed any disclaimer or filed any other voluntary reduction in the scope of the Inventions claimed in such Patents; 
 (F) no subject matter
of such Patents, to Borrower’s Knowledge, is subject to any competing conception claims of subject matter of any patent applications or patents of any third party and have not been the subject of any interference, re-examination or opposition
proceedings, nor are the Obligors aware of any basis for any such interference, re-examination or opposition proceedings; 
 (G) no such
Patents, to Borrower’s Knowledge, have ever been finally adjudicated to be invalid, unpatentable or unenforceable for any reason in any administrative, arbitration, judicial or other proceeding, and, with the exception of publicly available
documents in the applicable Patent Office recorded with respect to any Patents, the Obligors have not received any written notice asserting that such Patents are invalid, unpatentable or unenforceable; if any of such Patents is terminally disclaimed
to another patent or patent application, all patents and patent applications subject to such terminal disclaimer are included in the Collateral; 

(H) the Obligors have not received an opinion which concludes that a challenge to the validity or enforceability of any of such Patents is
more likely than not to succeed; 
 (I) the Obligors have no Knowledge that they or any prior owner of such Patents or their respective
agents or representatives have engaged in any conduct, or omitted to perform any necessary act, the result of which would invalidate or render unpatentable or unenforceable any such Patents; and 

(J) all maintenance fees, annuities, and the like due or payable on the Patents have been timely paid or the failure to so pay was the result
of an intentional decision by the applicable Obligor or would not reasonably be expected to result in a Material Adverse Effect. 
 (iv) none
of the foregoing representations and statements of fact contains any untrue statement of material fact or omits to state any material fact necessary to make any such statement or representation not misleading to a prospective Lender with respect to
the Material Intellectual Property; provided that this representation and warranty in this subsection (iv) is only as to the Knowledge of the Borrower with respect to any Material Intellectual Property licensed to any of the Obligors. 

(c) Material Intellectual Property. Schedule 7.05(c) contains a complete and accurate list of the Obligor Intellectual
Property the loss of which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect upon the Borrower’s  

  
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business with an indication as to whether the applicable Obligor owns or has an exclusive or non-exclusive license to such Obligor Intellectual Property. 

7.06 No Actions or Proceedings.  

(a) Litigation. There is no litigation, investigation or proceeding pending or, to the best of the Borrower’s Knowledge,
threatened with respect to the Borrower and its Subsidiaries by or before any Governmental Authority or arbitrator (i) that either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect, except as
specified in Schedule 7.06 or (ii) that involves this Agreement or the Transactions. 
 (b) Environmental
Matters. The operations and Property of Borrower and its Subsidiaries comply with all applicable Environmental Laws, except to the extent the failure to so comply (either individually or in the aggregate) could not reasonably be expected to have
a Material Adverse Effect. 
 (c) Labor Matters. The Borrower has not engaged in unfair labor practices and there are no
material labor actions or disputes involving the employees of the Borrower. 
 7.07 Compliance with Laws and Agreements. Each of the
Obligors is in compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing. 

7.08 Taxes. Except as set forth on Schedule 7.08, each of the Obligors has timely filed or caused to be filed all tax returns and reports
required to have been filed and has paid or caused to be paid all taxes required to have been paid by it, except taxes that are being contested in good faith by appropriate proceedings and for which such Obligor has set aside on its books adequate
reserves with respect thereto in accordance with GAAP, and except where the failure to do so, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.  

7.09 Full Disclosure. The Borrower has disclosed to the Lenders all Material Agreements to which any Obligor is subject. None of the reports,
financial statements, certificates or other information furnished by or on behalf of the Obligors to the Lenders in connection with the negotiation of this Agreement and the other Loan Documents or delivered hereunder or thereunder (as modified or
supplemented by other information so furnished) contains any material misstatement of material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading; 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. 

7.10 Regulation.  

  
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 (a) Investment Company Act. Neither Borrower nor any of its Subsidiaries is an
“investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940. 
 (b)
Margin Stock. Neither Borrower nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying
Margin Stock, and no part of the proceeds of the Loans will be used to buy or carry any Margin Stock in violation of Regulation T, U or X. 
 7.11
Solvency. Borrower is and, immediately after giving effect to the Borrowing and the use of proceeds thereof will be, Solvent. 
 7.12
Subsidiaries. Schedule 7.12 is a complete and correct list of all Subsidiaries of the Borrower as of the date hereof, each such Subsidiary is duly organized and validly existing under the jurisdiction of its organization shown in said
Schedule 7.12, and the percentage ownership by Borrower of each such Subsidiary is as shown in said Schedule 7.12. 
 7.13
Indebtedness and Liens. Schedule 7.13(b)-1 is a complete and correct list of all Indebtedness of each Obligor outstanding as of the date hereof. Schedule 7.13(b)-2 is a complete and correct list of all Liens granted by the Borrower
and other Obligors with respect to their respective Property and outstanding as of the date hereof. 
 7.14 Material Agreements. Schedule
7.14 is a complete and correct list of (i) each Material Agreement existing on the date hereof and (ii) each agreement creating or evidencing any Material Indebtedness. No Obligor is in material default under any such Material
Agreement or agreement creating or evidencing any Material Indebtedness. Except as otherwise disclosed on Schedule 7.14, all Material Agreements that are material vendor purchase agreements and provider contracts of the Obligors are in full
force and effect without material modification from the form in which the same were disclosed to the Lenders. 
 7.15 Restrictive
Agreements. None of the Obligors are subject to any indenture, agreement, instrument or other arrangement of the type described in Section 9.11, except for any indenture, agreement,
instrument or other arrangement described on Schedule 7.15 or otherwise permitted under Section 9.11 (each, a “Permitted Restrictive
Agreement”). 
 7.16 Real Property.  

(a) Generally. Neither Borrower nor any of its Subsidiaries owns or leases (as tenant thereof) any real property, except as
described on Schedule 7.16. 
 (b) Borrower Lease.  

(i) Borrower has delivered a true, accurate and complete copy of each Borrower Lease to Lenders. 

(ii) Each Borrower Lease is in full force and effect and no material default has occurred under such Borrower Lease and, to the Knowledge of
Borrower, there is no existing 

  
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condition which, but for the passage of time or the giving of notice, could reasonably be expected to result in a material default under the terms of such Borrower Lease. 

(iii) Borrower is the tenant under each Borrower Lease and has not transferred, sold, assigned, conveyed, disposed of, mortgaged, pledged,
hypothecated, or encumbered any of its interest in, such Borrower Lease. 
 7.17 Pension Matters. Schedule 7.17 sets forth, as of the date
hereof, a complete and correct list of, and that separately identifies, (a) all Title IV Plans, (b) all Multiemployer Plans and (c) all material Benefit Plans. Each Benefit Plan, and each trust thereunder, intended to qualify for tax
exempt status under Section 401 or 501 of the Code or other Requirements of Law so qualifies. Except for those that could not, in the aggregate, have a Material Adverse Effect, (x) each Benefit Plan is in compliance with applicable
provisions of ERISA, the Code and other Requirements of Law, (y) there are no existing or pending (or to the Knowledge of any Obligor or Subsidiary thereof, threatened) claims (other than routine claims for benefits in the normal course),
sanctions, actions, lawsuits or other proceedings or investigation involving any Benefit Plan to which any Obligor or Subsidiary thereof incurs or otherwise has or could have an obligation or any liability or Claim and (z) no ERISA Event is
reasonably expected to occur. Borrower and each of its ERISA Affiliates has met all applicable requirements under the ERISA Funding Rules with respect to each Title IV Plan, and no waiver of the minimum funding standards under the ERISA Funding
Rules has been applied for or obtained. As of the most recent valuation date for any Title IV Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is at least 60%, and neither Borrower nor any of its
ERISA Affiliates knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage to fall below 60% as of the most recent. As of the date hereof, no ERISA Event has occurred in connection with
which obligations and liabilities (contingent or otherwise) remain outstanding. No ERISA Affiliate would have any Withdrawal Liability as a result of a complete withdrawal from any Multiemployer Plan on the date this representation is made.

 7.18 Collateral; Security Interest. Each Security Document is effective to create in favor of the Lenders a legal, valid and enforceable
security interest in the Collateral subject thereto, which security interests are first-priority, subject to Permitted Liens. 
 7.19 Regulatory
Approvals. Borrower and its Subsidiaries hold, and will continue to hold, either directly or through licensees and agents, all material Regulatory Approvals, licenses, permits and similar governmental authorizations of a Governmental
Authority necessary or required for Borrower and its Subsidiaries to conduct their operations and business in the manner currently conducted. 
 7.20
Small Business Concern. (a) Borrower, together with its “affiliates” (as that term is defined in Title 13 of the United States Code of Federal Regulations) is a “Small Business” within the meaning of the SBIC Act, and
the regulations promulgated thereunder (including part 107 and 121 of Title 13 of the United States Code of Federal Regulations). 
 (b) Borrower’s
primary business activity does not involve, directly or indirectly, providing funds to others (other than to its Subsidiaries), the purchase or discounting of debt obligations, 

  
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factoring or long term leasing of equipment with no provision for maintenance or repair, and Borrower is not classified under Major Group 65 (Real Estate) or Industry No. 1531 (Operative
Builders) of the SIC Manual. Borrower acknowledges that it has been advised that PIOP is a Small Business Investment Company and licensee under the SBIC Act. 

(c) The information regarding Borrower and its affiliates set forth in the SBA Form 480, Form 652, and Form 1031 is accurate and complete. Borrower
acknowledges that the Lenders are relying on the representations and warranties made by Borrower to the SBA in the SBA Form 480 provided to the Lenders. 

7.21 Update of Schedules. Schedules 7.05(b) (in respect of the lists of Patents, Copyrights and Trademarks under Section 7.05(b)(i)
only), 7.05(c), 7.06, and 7.16, may be updated by Borrower prior to each Borrowing Date to insure the continued accuracy of such Schedule as of such Borrowing Date, by Borrower providing to the Lenders, in writing (including via
electronic means), a revised version of such Schedule in accordance with the provisions of Section 12.02. Each such updated Schedule shall be effective immediately upon the receipt thereof by the Lenders.  

SECTION 8 
 AFFIRMATIVE
COVENANTS 
 Borrower covenants and agrees with the Lenders that, until the Commitments have expired or been terminated and all
Obligations have been paid in full indefeasibly in cash: 
 8.01 Financial Statements and Other Information. The Borrower will furnish to the
Lenders: 
 (a) as soon as available and in any event within 5 days following the date Borrower files Form 10-Q with the SEC, the
consolidated and consolidating balance sheets of the Obligors as of the end of such quarter, and the related consolidated and consolidating statements of income, shareholders’ equity and cash flows of Borrower and its Subsidiaries for such
quarter and the portion of the fiscal year through the end of such quarter, prepared in accordance with GAAP consistently applied, subject to changes resulting from normal, year-end audit adjustments and except for the absence of notes, all in
reasonable detail and setting forth in comparative form the figures for the corresponding period in the preceding fiscal year; 
 (b) as soon
as available and in any event within 5 days following the date Borrower files Form 10-K with the SEC, the consolidated and consolidating balance sheets of Borrower and its Subsidiaries as of the end of such fiscal year, and the related consolidated
and consolidating statements of income, shareholders’ equity and cash flows of Borrower and its Subsidiaries for such fiscal year, prepared in accordance with GAAP consistently applied, all in reasonable detail and setting forth in comparative
form the figures for the previous fiscal year, accompanied by a report and opinion thereon of Ernst & Young LLP or another firm of independent certified public accountants of recognized national standing reasonably acceptable to the
Lenders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any qualification or exception as to the scope of such audit; 

  
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 (c) together with the financial statements required pursuant to
Sections 8.01(a) and (b), a compliance certificate of a Responsible Officer as of the end of the applicable accounting period (which delivery may, unless a Lender requests
executed originals, be by electronic communication including fax or email and shall be deemed to be an original authentic counterpart thereof for all purposes) in the form of Exhibit E (a “Compliance
Certificate”) including details of any issues that are material that are raised by auditors;  
 (d) promptly upon
receipt thereof, copies of all letters of representation signed by an Obligor to its auditors and copies of all auditor reports delivered for each fiscal quarter; 

(e) as soon as available following the end of each fiscal year, a consolidated condensed financial forecast for Borrower and its Subsidiaries
for the following three fiscal years (inclusive of the then current fiscal year), including forecasted consolidated condensed balance sheets, statements of income, and cash flows of Borrower and its Subsidiaries; provided, that such
financial forecasts shall be provided for informational purposes only and Lenders acknowledge that Borrower makes no representations or warranties concerning the accuracy or completeness of such financial forecasts other than that Borrower has
prepared such financial forecasts in good faith; and, provided further, that such financial forecasts may include material, non-public information and that Lenders must comply with applicable securities laws in connection with the receipt of
any such information; 
 (f) promptly, and in any event within five Business Days after receipt thereof by an Obligor thereof, copies of each
notice or other correspondence received from any securities regulator or exchange to the authority of which Borrower may become subject from time to time concerning any investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of such Obligor; 
 (g) the information regarding insurance maintained by Borrower and its
Subsidiaries as required under Section 8.05; 
 (h) within 5 days of filing, provide access (via posting and/or links on
Borrower’s website) to all reports on Form 10-K and Form 10-Q filed with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange; and within 5 days of filing, provide
notice and access (via posting and/or links on Borrower’s website) to all reports on Form 8-K filed with the SEC, and copies of (or access to, via posting and/or links on Borrower’s website) all other reports, proxy statements and other
materials filed by Borrower with the SEC, any Governmental Authority succeeding to any of the functions of the SEC or with any national securities exchange; and 

(i) promptly following Lenders’ request at any time, proof of Borrower’s compliance with Section 10.03. 

Documents required to be delivered pursuant to Section 8.01(a) or (b) or referred to in Section 8.02(h) (to the
extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or
provides a link thereto on the Borrower’s website; (ii) on which such documents are posted on the Borrower’s behalf on an  

  
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Internet or intranet website, if any, to which each Lender has access (whether a commercial, third party website or whether sponsored by the Lenders); or (iii) on which the Borrower
provides notice of filing of such documents with the SEC by electronic mail message to the Lenders in accordance with Section 12.02. 
 8.02
Notices of Material Events. The Borrower will furnish to the Lenders written notice of the following promptly after a Responsible Officer first learns of the existence of: 

(a) the occurrence of any Default; 

(b) notice of the occurrence of any event with respect to its property or assets resulting in a Loss aggregating $500,000 (or the Equivalent
Amount in other currencies) or more resulting in a Material Adverse Effect; 
 (c) (A) any proposed acquisition of stock, assets or
property by any Obligor that would reasonably be expected to result in environmental liability under Environmental Laws, and (B)(1) spillage, leakage, discharge, disposal, leaching, migration or release of any Hazardous Material required to be
reported to any Governmental Authority under applicable Environmental Laws, and (2) all actions, suits, claims, notices of violation, hearings, investigations or proceedings pending, or to the best of Borrower’s Knowledge, threatened
against or affecting Borrower or any of its Subsidiaries or with respect to the ownership, use, maintenance and operation of their respective businesses, operations or properties, relating to Environmental Laws or Hazardous Material; 

(d) the assertion of any environmental matter by any Person against, or with respect to the activities of, Borrower or any of its Subsidiaries
and any alleged violation of or non-compliance with any Environmental Laws or any permits, licenses or authorizations which could reasonably be expected to (either individually or in the aggregate) result in a Material Adverse Effect; 

(e) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or affecting
Borrower or any of its Affiliates that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect, including, in any event, any filing or commencement of any action, suit or proceeding by or before any arbitrator
or Governmental Authority against or affecting Borrower or any of its Affiliates; 
 (f) (i) on or prior to any filing by any ERISA
Affiliate of any notice of intent to terminate any Title IV Plan, a copy of such notice and (ii) promptly, and in any event within ten days, after any Responsible Officer of any ERISA Affiliate knows or has reason to know that a request for a
minimum funding waiver under Section 412 of the Code has been filed with respect to any Title IV Plan or Multiemployer Plan, a notice (which may be made by telephone if promptly confirmed in writing) describing such waiver request and any
action that any ERISA Affiliate proposes to take with respect thereto, together with a copy of any notice filed with the PBGC or the IRS pertaining thereto; 

  
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 (g) (i) the termination of any Material Agreement, other than the expiration of such
agreement in accordance with its terms; (ii) the entering into of any new Material Agreement by an Obligor; or (iii) any material amendment to a Material Agreement; 

(h) the reports and notices as required by the Security Documents; 

(i) within 30 days of the date thereof, or, if earlier, on the date of delivery of any financial statements pursuant to Section 8.01,
notice of any material change in accounting policies or financial reporting practices by the Obligors (which requirement will be deemed satisfied by the description thereof in a Form 10-K, Form 10-Q or Form 8-K filed with the SEC); 

(j) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect; 

(k) concurrently with the delivery of financial statements under Section 8.01(b), the creation or other acquisition of any
Intellectual Property by Borrower or any Subsidiary after the date hereof and during such prior fiscal year which is registered or becomes registered or the subject of an application for registration with the U.S. Copyright Office or the U.S. Patent
and Trademark Office, as applicable, or with any other equivalent foreign Governmental Authority; 
 (l) any change to the Borrower’s
and each Subsidiary Guarantor’s ownership of Deposit Accounts, Securities Accounts and Commodity Accounts, by delivering to Lenders an updated Annex 7 to the Security Agreement setting forth a complete and correct list of all such accounts as
of the date of such change; 
 (m) any change or development that causes Borrower to cease to be a “Small Business” within the
meaning of the SBIC Act, and the regulations promulgated thereunder; or 
 (n) such other information respecting the operations, properties,
business or condition (financial or otherwise) of the Obligors (including with respect to the Collateral) as the Majority Lenders may from time to time reasonably request. 

Each notice delivered under this Section 8.02 shall be accompanied by a statement of a financial officer or other executive
officer of Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 

8.03 Existence; Conduct of Business. (a) Borrower will, and will cause each of its Subsidiaries to, do or cause to be done all things reasonably
necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material to the conduct of its business; provided that the foregoing shall not
prohibit any merger, amalgamation, consolidation, liquidation or dissolution permitted under Section 9.03.  
 (b)
Provided that PIOP is a Lender hereunder as of the Closing Date, (i) without obtaining the prior written approval of PIOP, Borrower will not change within one (1) year after the Closing Date, Borrower’s business activity to a business
activity to which a licensee under 

  
 46 








 
the SBIC Act is prohibited from providing funds by the SBIC Act, as more specifically set forth under Part 107.720 of Title 13 of the United States Code of Federal Regulations, and (ii) if
Borrower’s business activity changes to such a prohibited business activity or the proceeds are used for ineligible business activities, Borrower will use all commercially reasonable efforts and cooperate in good faith to assist PIOP to sell or
transfer its Proportionate Share of the Loans in a commercially reasonable manner; provided that in no way shall this be considered PIOP’s sole remedy if Borrower’s business activity changes to such a prohibited business activity. 

8.04 Payment of Obligations. Borrower will, and will cause each of its Subsidiaries to, pay and discharge its obligations, including (i) all taxes,
fees, assessments and governmental charges or levies imposed upon it or upon its properties or assets prior to the date on which penalties attach thereto, except to the extent such taxes, fees, assessments or governmental charges or levies, or such
claims are being contested in good faith by appropriate proceedings and are adequately reserved against in accordance with GAAP; (ii) all lawful claims which, if unpaid, would by law become a Lien upon its property not constituting a Permitted
Lien, except to the extent such claims are being contested in good faith by appropriate proceedings and are adequately reserved against in accordance with GAAP; and (iii) all Indebtedness other than Permitted Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any instrument or agreement evidencing such Indebtedness. 
 8.05
Insurance. Borrower will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged
in the same or similar businesses operating in the same or similar locations. Upon the request of the Majority Lenders, Borrower shall furnish the Lenders from time to time with full information as to the insurance carried by it and, if so
requested, copies of all such insurance policies. Borrower also shall furnish to the Lenders from time to time upon the request of the Majority Lenders a certificate from the Borrower’s insurance broker or other insurance specialist stating
that all premiums then due on the policies relating to insurance on the Collateral have been paid and that such policies are in full force and effect. The Borrower shall use commercially reasonable efforts to ensure, or cause others to ensure, that
all insurance policies required under this Section 8.05 shall provide that they shall not be terminated or cancelled nor shall any such policy be materially changed in a manner adverse to the Borrower without at least 30 days’ prior
written notice to the Borrower and the Lenders. Receipt of notice of termination or cancellation of any such insurance policies or reduction of coverages or amounts thereunder shall entitle the Lenders to renew any such policies, cause the coverages
and amounts thereof to be maintained at levels required pursuant to the first sentence of this Section 8.05 or otherwise to obtain similar insurance in place of such policies, in each case at the expense of the Borrower. 

8.06 Books and Records; Inspection Rights. Borrower will, and will cause each of its Subsidiaries to, keep proper books of record and account in which
full, true and correct entries are made of all financial dealings and transactions in relation to its business and activities. Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the Lender, upon
reasonable prior notice, to visit during normal business hours and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs,  

  
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finances and condition with its officers and independent accountants, all at such reasonable times (but not more often than once a year unless an Event of Default has occurred and is
continuing). 
 8.07 Compliance with Laws and Other Obligations. Borrower will, and will cause each of its Subsidiaries to, (i) comply in
all material respects with all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (including Environmental Laws) and (ii) comply in all material respects with all terms of Indebtedness and all
other Material Agreements, 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. 

8.08 Maintenance of Properties, Etc.  

(a) Borrower shall, and shall cause each of its Subsidiaries to, maintain and preserve all of its properties necessary or useful in the proper
conduct of its business in good working order and condition in accordance with the general practice of other Persons of similar character and size, ordinary wear and tear and damage from casualty or condemnation excepted. 

(b) Without limiting the generality of clause (a) above, Borrower shall comply with each of the following covenants with respect to each
Borrower Lease: 
 (i) Borrower shall diligently perform and timely observe all of the material terms or those that could result in a
termination of the lease, covenants and conditions of each Borrower Lease on the part of Borrower to be performed and observed prior to the expiration of any applicable grace period therein provided and use its reasonable best efforts to preserve
and to keep unimpaired and in full force and effect each Borrower Lease. 
 (ii) Borrower shall promptly notify Lenders of the giving of any
written notice by Borrower Landlord to Borrower of any default by Borrower thereunder, and promptly deliver to Lenders a true copy of each such notice. If Borrower shall be in default under any Borrower Lease, Lenders shall have the right (but not
the obligation), upon reasonable advance written notice to Borrower, to cause the default or defaults under such Borrower Lease to be remedied and otherwise exercise any and all rights of Borrower under such Borrower Lease, as may be necessary to
cure any default and Lenders shall have the right to enter all or any portion of the Property, at such times and in such manner as Lenders reasonably deem necessary, to cure any such default. Without limiting the foregoing, upon any such default,
Borrower shall promptly execute, acknowledge and deliver to Lenders such instruments as may reasonably be required of Borrower to permit Lenders to cure any default under such Borrower Lease or permit Lenders to take such other action required to
enable Lenders to cure or remedy the matter in default and preserve the security interest of Lenders under the Loan Documents with respect to the Borrower Facility. 

(iii) Borrower shall use commercially reasonable efforts to enforce, in a commercially reasonable manner, each material covenant or obligation
of the Borrower Landlord in each Borrower Lease in accordance with its terms. 
 (iv) Borrower, promptly upon learning that Borrower Landlord
has failed to perform the material terms and provisions under any Borrower Lease and immediately upon 

  
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learning of a rejection or disaffirmance or purported rejection or disaffirmance of the Borrower Lease pursuant to any state or federal bankruptcy law, shall notify Lenders thereof. 

(v) Borrower shall promptly, after obtaining knowledge of such filing notify Lenders orally of any filing by or against Borrower Landlord under
any Borrower Lease of a petition under the Bankruptcy Code or other applicable law. Borrower shall thereafter promptly give written notice of such filing to Lenders, setting forth any material information available to Borrower as to the date of such
filing, the court in which such petition was filed, and the relief sought in such filing. Borrower shall promptly deliver to Lenders any and all notices, summonses, pleadings, applications and other documents received by Borrower in connection with
any such petition and any proceedings relating to such petition. 
 8.09 Licenses. Borrower shall, and shall cause each of its Subsidiaries to, obtain
and maintain all licenses, authorizations, consents, filings, exemptions, registrations and other Governmental Approvals necessary in connection with the execution, delivery and performance of the Loan Documents, the consummation of the Transactions
or the operation and conduct of its business and ownership of its properties, except where failure to do so could not reasonably be expected to have a Material Adverse Effect. 

8.10 Action under Environmental Laws. Borrower shall, and shall cause each of its Subsidiaries to, upon becoming aware of the presence of any Hazardous
Materials or the existence of any environmental liability under applicable Environmental Laws with respect to their respective businesses, operations or properties, take all actions, at their cost and expense, as shall be necessary or advisable to
investigate and clean up the condition of their respective businesses, operations or properties, including all required removal, containment and remedial actions, and restore their respective businesses, operations or properties to a condition in
compliance with applicable Environmental Laws, except to the extent nonaction could not reasonably be expected to have a Material Adverse Effect; and provided, however, that neither Borrower nor any of its Subsidiaries shall be required to undertake
any such clean up, removal, containment, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstance
in accordance with GAAP. 
 8.11 Use of Proceeds. The proceeds of the Loans will be used only as provided in Section 2.05. No part
of the proceeds of the Loans will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board of Governors of the Federal Reserve System, including Regulations T, U and X. Provided that
PIOP is a Lender hereunder as of the Closing Date, neither Borrower nor any of its affiliates (as that term is defined in Section 121.103 of Title 13 of the United States Code of Federal Regulation) will engage in any activities or use directly
or indirectly the proceeds from the Loans in the amount made by PIOP for any purpose for which an SBIC is prohibited from providing funds by the SBIC Act as set forth in Section 107.720 of Title 13 of the United States Code of Federal
Regulation. 
 8.12 Certain Obligations Respecting Subsidiaries; Further Assurances. 

  
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 (a) Subsidiary Guarantors. Borrower will take such action, and will cause each of
its Subsidiaries to take such action, from time to time as shall be necessary to ensure that all Subsidiaries that are Domestic Subsidiaries of Borrower, and such Foreign Subsidiaries as are required under Section 8.12(b), are
“Subsidiary Guarantors” hereunder. Without limiting the generality of the foregoing, in the event that Borrower or any of its Subsidiaries shall form or acquire any new Subsidiary that is a Domestic Subsidiary or a Foreign Subsidiary
meeting the requirements of Section 8.12(b), Borrower and its Subsidiaries will: 
 (i) cause such new Subsidiary to
become a “Subsidiary Guarantor” hereunder, and a “Grantor” under the Security Agreement, pursuant to a Guarantee Assumption Agreement; 

(ii) take such action or cause such Subsidiary to take such action (including delivering such shares of stock together with undated transfer
powers executed in blank) as shall be necessary to create and perfect valid and enforceable first priority (subject to Permitted Liens permitted under Section 9.02(c)) Liens on substantially all of the personal property of such new
Subsidiary as collateral security for the obligations of such new Subsidiary hereunder; 
 (iii) cause the parent of such Subsidiary to
execute and deliver a pledge agreement in favor of the Lenders in respect of all outstanding issued shares of such Subsidiary; and 
 (iv)
deliver such proof of corporate action, incumbency of officers, opinions of counsel and other documents as is consistent with those delivered by each Obligor pursuant to Section 6.01 on the Closing Date or as the Majority Lenders shall
have reasonably requested. 
 (b) Foreign Subsidiaries. In the event that, at any time, Foreign Subsidiaries of Borrower have,
in the aggregate, (i) total revenues constituting 5% or more of the total revenues of Borrower and its Subsidiaries on a consolidated basis, or (ii) total assets constituting 5% or more of the total assets of Borrower and its Subsidiaries
on a consolidated basis, promptly (and, in any event, within 30 days after such time) the Borrower shall cause one or more of such Foreign Subsidiaries to become Subsidiary Guarantors in the manner set forth in Section 8.12(a), such
that, after such Subsidiaries become Subsidiary Guarantors, the non-guarantor Foreign Subsidiaries in the aggregate shall cease to have revenues or assets, as applicable, that meet the thresholds set forth in clauses (i) and
(ii) above; provided that no Foreign Subsidiary shall be required to become a Subsidiary Guarantor if doing so would result in adverse tax consequences for Borrower and its Subsidiaries, taken as a whole. However, if
a Foreign Subsidiary is precluded from becoming a Subsidiary Guarantor as a result of the adverse tax consequences described in the previous sentence, Borrower shall nonetheless pledge 65% of the total number of shares of voting stock of such
Foreign Subsidiary to the Lenders to secure the Obligations under this Agreement. 
 (c) Further Assurances. Borrower
will, and will cause each of its Subsidiaries to, take such action from time to time as shall reasonably be requested by the Majority Lenders to effectuate the purposes and objectives of this Agreement. 

Without limiting the generality of the foregoing, the Borrower will, and will cause each Person 

  
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that is required to be a Subsidiary Guarantor to, take such action from time to time (including executing and delivering such assignments, security agreements, control agreements and other
instruments) as shall be reasonably requested by the Majority Lenders to create, in favor of the Lenders, perfected security interests and Liens in substantially all of the personal property of such Obligor (subject to Permitted Liens) as collateral
security for the Obligations; provided that any such security interest or Lien shall be subject to the relevant requirements of the Security Documents. 

8.13 Termination of Non-Permitted Liens. In the event that Borrower or any of its Subsidiaries shall become aware or be notified by the Lenders of the
existence of any outstanding Lien against any Property of Borrower or any of its Subsidiaries, which Lien is not a Permitted Lien, the Borrower shall use its reasonable best efforts to promptly terminate or cause the termination of such Lien.

 8.14 Intellectual Property.  

(a) Notwithstanding any provision in this Agreement or any other Loan Documents to the contrary, the Lenders are not assuming any liability or
obligation of the Borrower, the Subsidiary Guarantors or their Subsidiaries of whatever nature, whether presently in existence or arising or asserted hereafter, except to the extent required under applicable law in connection with any Intellectual
Property license agreement of the Borrower, the Subsidiary Guarantors or their Subsidiaries in the event that the Lenders foreclose on such Collateral. All such liabilities and obligations shall be retained by and remain obligations and liabilities
of the Obligors, the Subsidiary Guarantors and/or their Subsidiaries as the case may be, except to the extent required under applicable law in connection with any Intellectual Property license agreement of the Borrower, the Subsidiary Guarantors or
their Subsidiaries in the event that the Lenders foreclose on such Collateral. Without limiting the foregoing, the Lenders are not assuming and shall not be responsible for any liabilities or Claims of the Borrower, the Subsidiary Guarantors or
their Subsidiaries, whether present or future, absolute or contingent and whether or not relating to the Obligors, the Obligor Intellectual Property, and/or the Material Agreements, and the Borrower shall indemnify and save harmless the Lenders from
and against all such liabilities, Claims and Liens, except to the extent required under applicable law in connection with any Intellectual Property license agreement of the Borrower, the Subsidiary Guarantors or their Subsidiaries in the event that
the Lenders foreclose on such Collateral. Without limiting the foregoing, this Agreement shall not constitute an agreement to assign any Contracts of, or Obligor Intellectual Property to, the Lenders, except to the extent required under applicable
law in connection with any Intellectual Property license agreement of the Borrower, the Subsidiary Guarantors or their Subsidiaries in the event that the Lenders foreclose on such Collateral. 

(b) In the event that the Obligors acquire Obligor Intellectual Property during the term of this Agreement, then the provisions of this
Agreement shall automatically apply thereto and any such Obligor Intellectual Property shall automatically constitute part of the Collateral hereunder, without further action by any party, in each case from and after the date of such acquisition
(except that any representations or warranties of any Obligor shall apply to any such Obligor Intellectual Property only from and after the date, if any, subsequent to such acquisition that such representations and warranties are brought down or
made anew as provided herein). 

  
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 8.15 Post-Closing Items.  

(a) Borrower shall use commercially reasonable efforts to execute and deliver to the Lenders such duly executed Intellectual Property
security agreements, as the Lenders may require with respect to foreign Intellectual Property, and take such other action as the Lenders may reasonably deem necessary or appropriate to duly record or otherwise perfect the security interest created
thereunder in that portion of the Collateral consisting of Intellectual Property located outside the United States in the jurisdictions listed on Schedule 8.15(a). 

(b) Borrower shall use commercially reasonable efforts to execute and deliver to the Lenders such duly executed Landlord Consents and
Collateral Access Agreements relating to the Borrower Facility. 
 8.16 Small Business Documentation. (a) Borrower shall, no later than twenty
(20) Business Days prior to the Closing Date but may be with the delivery of a Notice of Borrowing, notify the Lenders whether Borrower, together with its “affiliates” (as that term is defined in Title 13 of the United States Code of
Federal Regulations), shall be a “Small Business” within the meaning of the SBIC Act, and the regulations promulgated thereunder (including part 107 and 121 of Title 13 of the United States Code of Federal Regulations) on the Closing Date.
Upon the receipt of any such notice that Borrower is unable to make any of the representations set forth in Section 7.20 on the Closing Date, PIOP may in its sole decision withdraw as a Lender hereunder and transfer its Commitments
hereunder to any of the other Lenders if PIOP determines that it shall no longer be able to participate as a Lender hereunder in accordance with the SBIC Act, and the regulations promulgated thereunder.  

(b) To the extent that PIOP shall be a Lender hereunder as of the Closing Date, Borrower shall accurately complete, execute, and deliver to PIOP prior to the
Closing Date, SBA Forms 480, 652, and 1031 (Parts A and B). 
 SECTION 9 

NEGATIVE COVENANTS 

Borrower covenants and agrees with the Lenders that, until the Commitments have expired or been terminated and all Obligations have been paid
in full indefeasibly in cash: 
 9.01 Indebtedness. Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or permit
to exist any Indebtedness, whether directly or indirectly, except: 
 (a) the Obligations and the Existing Term Loan Obligations; 

(b) Indebtedness existing on the date hereof and set forth on Schedule 7.13(b)-1 and Permitted Refinancings thereof;
provided that, in each case, such Indebtedness (other than Permitted Priority Debt) is subordinated to the Obligations on terms satisfactory to the Majority Lenders; 

(c) Permitted Priority Debt; 
 (d)
[reserved]; 

  
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 (e) accounts payable to trade creditors for goods and services and current operating liabilities
(not the result of the borrowing of money) incurred in the ordinary course of Borrower’s or its Subsidiary’s business in accordance with customary terms and paid within the specified time, unless contested in good faith by appropriate
proceedings and reserved for in accordance with GAAP; 
 (f) Indebtedness consisting of guarantees resulting from endorsement of negotiable
instruments for collection by Borrower or any Subsidiary Guarantor in the ordinary course of business; 
 (g) Indebtedness (i) of
Borrower to any Subsidiary Guarantor and (ii) of any Subsidiary Guarantor to Borrower or any other Subsidiary Guarantor; 
 (h)
Guarantees by Borrower of Indebtedness of any Subsidiary Guarantor and by any Subsidiary Guarantor of Indebtedness of Borrower or any other Subsidiary Guarantor if such guaranteed Indebtedness is Permitted Indebtedness of such Subsidiary Guarantor
or Borrower; 
 (i) normal course of business equipment financing; provided that (i) if secured, the
collateral therefor consists solely of the assets being financed, the products and proceeds thereof and books and records related thereto, and (ii) the aggregate outstanding principal amount of such Indebtedness, when added to the aggregate
outstanding principal amount of the Indebtedness permitted in reliance on Section 9.01(k), does not exceed $500,000 (or the Equivalent Amount in other currencies) at any time;  

(j) Permitted Subordinated Debt; 

(k) Indebtedness of Borrower or any Subsidiary in respect of Capital Lease Obligations, provided that the aggregate outstanding
principal amount of such Indebtedness, when added to the aggregate outstanding principal amount of the Indebtedness permitted in reliance on Section 9.01(i), does not exceed $500,000 (or the Equivalent Amount in other
currencies) at any time; 
 (l) Indebtedness of any Person acquired in a Permitted Acquisition (so long as such Indebtedness
(A) existed prior to the acquisition of such Person by Borrower or any Subsidiary, (B) is not created in connection with such acquisition and (C) is solely the obligation of such Person and not of Borrower or any other Subsidiary),
provided that the aggregate outstanding principal amount of such Indebtedness, when added to the aggregate outstanding principal amount of the Indebtedness permitted in reliance on Section 9.01(m), does not exceed
$5,000,000 (or the Equivalent Amount in other currencies) in the aggregate; 
 (m) Indebtedness consisting of contingent
liabilities in respect of indemnification obligations or adjustment of purchase price in connection with the consummation of Permitted Acquisitions, provided that the aggregate outstanding principal amount of such Indebtedness,
when added to the aggregate outstanding principal amount of the Indebtedness permitted in reliance on Section 9.01(l), does not exceed $5,000,000 (or the Equivalent Amount in other currencies) in the aggregate; 

  
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 (n) Indebtedness incurred in a transaction specifically permitted under Section
9.10(d); 
 (o) other Indebtedness not to exceed $250,000 in aggregate at any one time outstanding; and 

(p) Indebtedness approved in advance in writing by the Majority Lenders. 

9.02 Liens. Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or permit to exist any Lien on any property
or asset now owned by it, or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except (collectively, “Permitted Liens”): 

(a) Liens securing the Obligations and the Existing Term Loan Obligations; 

(b) any Lien on any property or asset of Borrower or any of its Subsidiaries existing on the date hereof and set forth in Schedule
7.13(b)-2; provided that (i) no such Lien shall extend to any other property or asset of Borrower or any of its Subsidiaries and (ii) any such Lien shall secure only those obligations which it secures on the date
hereof and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
 (c) Liens
described in the definition of “Permitted Priority Debt”; 
 (d) Liens securing Indebtedness permitted under
Section 9.01(i) or (k); provided that such Liens are restricted solely to the collateral described in Section 9.01(i) or (k); 

(e) Liens imposed by law which were incurred in the ordinary course of business, including (but not limited to) carriers’,
warehousemen’s and mechanics’ liens and other similar liens arising in the ordinary course of business and which (x) do not in the aggregate materially detract from the value of the Property subject thereto or materially impair the
use thereof in the operations of the business of such Person or (y) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing the forfeiture or sale of the Property subject to such liens and
for which adequate reserves have been made if required in accordance with GAAP; 
 (f) pledges or deposits made in the ordinary course of
business in connection with workers’ compensation, unemployment insurance or other similar social security legislation; 
 (g) Liens
securing taxes, assessments and other governmental charges, the payment of which is not yet due or is being contested in good faith by appropriate proceedings promptly initiated and diligently conducted and for which such reserve or other
appropriate provisions, if any, as shall be required by GAAP shall have been made; 
 (h) servitudes, easements, rights of way, restrictions
and other similar encumbrances on real Property imposed by applicable Laws and encumbrances consisting of zoning or building restrictions, easements, licenses, restrictions on the use of property or minor imperfections in title thereto which, in the
aggregate, are not material, and which do not in any case materially detract 

  
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from the value of the property subject thereto or interfere with the ordinary conduct of the business of any of the Obligors; 

(i) with respect to any real Property, (A) such defects or encroachments as might be revealed by an up-to-date survey of such real
Property; (B) the reservations, limitations, provisos and conditions expressed in the original grant, deed or patent of such property by the original owner of such real Property pursuant to applicable Laws; and (C) rights of expropriation,
access or user or any similar right conferred or reserved by or in applicable Laws, which, in the aggregate for (A), (B) and (C), are not material, and which do not in any case materially detract from the value of the property subject thereto
or interfere with the ordinary conduct of the business of any of the Obligors; 
 (j) Liens on Patents, Trademarks, Copyrights or other
Intellectual Property rights to the extent (i) such Liens arise from non-exclusive licenses or sublicenses thereof entered into the ordinary course of business of Borrower or any of its Subsidiaries and (ii) such non-exclusive licenses or
sublicenses do not, in the aggregate, materially interfere with the ordinary conduct of business of Borrower and its Subsidiaries; 
 (k)
Bankers’ liens, rights of setoff and similar Liens incurred on deposits made in the ordinary course of business; and 
 (l) Liens
incurred or deposits made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, surety and appeal bond or government contracts in the ordinary course of business and not for borrowed money; 

provided that no Lien otherwise permitted under any of the foregoing Sections 9.02(b) (unless such Lien is of the type described
under Section 9.02(j)), (c), (d), (e), (f), (h) and (i) shall apply to any Material Intellectual Property. 
 9.03
Fundamental Changes and Acquisitions. Borrower will not, and will not permit any of its Subsidiaries to, (i) enter into any transaction of merger, amalgamation or consolidation (ii) liquidate, wind up or dissolve itself (or suffer any
liquidation or dissolution) (iii) make any Acquisition or otherwise acquire any business or substantially all the property from, or capital stock of, or be a party to any acquisition of, any Person. Notwithstanding the foregoing provisions of
this Section 9.03: 
 (a) Borrower and its Subsidiaries may make Investments permitted under Section 9.05; 

(b) Borrower may be merged, amalgamated or consolidated with or into another Person provided that Borrower gives the Lenders advance
notice prior to entering into any agreement in connection with such transaction of merger, amalgamation or consolidation and otherwise complies with Section 3.03(b)(ii); 

(c) any Subsidiary Guarantor may be merged, amalgamated or consolidated with or into Borrower or any other Subsidiary Guarantor; 

  
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 (d) any Subsidiary Guarantor may sell, lease, transfer or otherwise dispose of any or all of its
property (upon voluntary liquidation or otherwise) to Borrower or another Subsidiary Guarantor; and 
 (e) the capital stock of any
Subsidiary Guarantor may be sold, transferred or otherwise disposed of to Borrower or another Subsidiary Guarantor; and 
 (f) Borrower and
its Subsidiaries may make Permitted Acquisitions, not to exceed $10,000,000 in the aggregate. 
 9.04 Lines of Business. Borrower will not, and will
not permit any of its Subsidiaries to, engage to any material extent in any business other than the business engaged in on the date hereof by Borrower or any Subsidiary or a business reasonably related thereto. 

9.05 Investments. Borrower will not, and will not permit any of its Subsidiaries to, make, directly or indirectly, or permit to remain outstanding any
Investments except: 
 (a) Investments outstanding on the date hereof and identified in Schedule 9.05; 

(b) operating deposit accounts with banks; 

(c) extensions of credit in the nature of accounts receivable or notes receivable arising from the sales of goods or services in the ordinary
course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss; 

(d) Permitted Cash Equivalent Investments; 

(e) Investments by Borrower and the Subsidiary Guarantors in Borrower’s wholly-owned Subsidiary Guarantors (for greater certainty,
Borrower shall not be permitted to have any direct or indirect Subsidiaries that are not wholly-owned Subsidiaries); 
 (f) Hedging
Agreements entered into in the ordinary course of Borrower’s financial planning solely to hedge currency risks (and not for speculative purposes) and in an aggregate notional amount for all such Hedging Agreements not in excess of $1,500,000
(or the Equivalent Amount in other currencies); 
 (g) Investments consisting of security deposits with utilities and other like Persons made
in the ordinary course of business; 
 (h) Investments consisting of employee loans, travel advances and guarantees in accordance with
Borrower’s usual and customary practices with respect thereto (if permitted by applicable law) which in the aggregate shall not exceed $500,000 outstanding at any time (or the Equivalent Amount in other currencies); 

(i) Investments received in connection with any Insolvency Proceedings in respect of any customers, suppliers or clients and in settlement of
delinquent obligations of, and other disputes with, customers, suppliers or clients; 

  
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 (j) Permitted Acquisitions; 

(k) Investments permitted pursuant to Section 9.03;  

(l) Indebtedness permitted by Section 9.01; and 

(m) other Investments not exceeding $100,000 individually or $500,000 in the aggregate. 

9.06 Restricted Payments. Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or
indirectly, any Restricted Payment, except: 
 (a) Borrower and each Subsidiary may declare and pay dividends with respect to its
capital stock payable solely in additional shares of its common stock; 
 (b) Borrower and each Subsidiary may purchase, redeem, retire, or
otherwise acquire shares of its capital stock or other equity interests with the proceeds received from a substantially concurrent issue of new shares of its capital stock or other equity interests; 

(c) for the payment of dividends by any Subsidiary Guarantor to Borrower or to any other Subsidiary Guarantor; and 

(d) Borrower may make the following Restricted Payments, not to exceed $500,000 in the aggregate in any fiscal year: 

(i) Borrower may purchase, redeem, retire, or otherwise acquire shares of its capital stock or other equity interests from former employees or
consultants pursuant to stock repurchase agreements or agreements that have a similar purpose or function so long as an Event of Default does not exist at the time of such repurchase and would not exist after giving effect to such repurchase; 

(ii) Borrower may purchase shares of capital stock in connection with the exercise of stock options by way of cashless exercise or in
connection with the satisfaction of withholding obligations; and 
 (iii) Borrower may purchase fractional shares of capital stock arising
out of stock dividends, forward or reverse stock splits, combinations or business combinations. 
 9.07 Payments of Indebtedness. Borrower will not,
and will not permit any of its Subsidiaries to, make any payments in respect of any Indebtedness other than (i) the Obligations and (ii) subject to any applicable terms of subordination, other Permitted Indebtedness. 

9.08 Change in Fiscal Year. The Borrower will not, and will not permit any of its Subsidiaries to, change the last day of its fiscal year from that in
effect on the date hereof, except to change the fiscal year of a Subsidiary acquired in connection with an Acquisition to conform its fiscal year to the Borrower’s.  

  
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 9.09 Sales of Assets, Etc. Unless the Borrower simultaneously makes the prepayment required under
Section 3.03(b)(i), the Borrower will not, and will not permit any of its Subsidiaries to, sell, lease, exclusively license (in terms of geography or field of use), transfer, or otherwise dispose of any of its Property (including
accounts receivable and capital stock of Subsidiaries) to any Person in one transaction or series of transactions (any thereof, an “Asset Sale”), except for any of the following:  

(a) transfers of cash in the ordinary course of its business for equivalent value; 

(b) dispositions of Permitted Cash Equivalent Investments for equivalent value; 

(c) sales of inventory in the ordinary course of its business on ordinary business terms including to distributors; 

(d) dispositions of accounts receivable for purposes of collection in the ordinary course of business; 

(e) disposition of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of
similar replacement property or (ii) the proceeds of such disposition are reasonably promptly applied to the purchase price of such replacement property; 

(f) development and other collaborative arrangements where such arrangements provide for the licenses or disclosure of Patents, Trademarks,
Copyrights or other Intellectual Property rights in the ordinary course of business and consistent with general market practices where such license requires periodic payments based on per unit sales of a product over a period of time and provided
that such licenses must be true licenses as opposed to licenses that are sales transactions in substance; 
 (g) transfers of Property by any
Obligor to any other Obligor; 
 (h) dispositions of any Property that is obsolete or worn out or no longer used or useful in the Business;

 (i) those transactions permitted by Sections 9.02, 9.03 or 9.05; and 

(j) so long as no Default or Event of Default has occurred and is continuing, or would result therefrom, dispositions of assets not otherwise
permitted in clauses (a) through (i) hereof so long as such dispositions are made at fair market value and the aggregate amount of all such dispositions would not exceed $1,000,000 during any fiscal year, or exceed $2,000,000 in the
aggregate during the term of this Agreement. 
 Lenders acknowledge and agree that clause (e) above includes the right for Borrower to
make decisions in the ordinary course of business regarding the registration of any of its Intellectual Property, including without limitation, any decisions regarding application, prosecution, abandonment, or cancellation of any such Intellectual
Property, without the consent of any Lender. 

  
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 9.10 Transactions with Affiliates. Borrower will not, and will not permit any of its Subsidiaries to,
sell, lease, license or otherwise transfer any assets to, or purchase, lease, license or otherwise acquire any assets from, or otherwise engage in any other transactions with, any of its Affiliates, except for any of the following: 

(a) transactions between or among Obligors; 

(b) any Indebtedness permitted by Section 9.01; 

(c) any Investment permitted by Section 9.05; 

(d) any Restricted Payment permitted by Section 9.06; 

(e) any Asset Sale permitted by Section 9.09;  

(f) customary compensation and indemnification of, and other employment arrangements with, directors, officers and employees of Borrower or any
Subsidiary in the ordinary course of business, 
 (g) Borrower may issue debt or Equity Interests to Affiliates in exchange for cash,
provided that the terms thereof are no less favorable (including the amount of cash received by Borrower) to Borrower than those that would be obtained in a comparable arm’s-length transaction with a Person not an Affiliate of Borrower;
and 
 (h) the transactions set forth on Schedule 9.10. 

9.11 Restrictive Agreements. Except for Permitted Restrictive Agreements, Borrower will not, and will not permit any of its Subsidiaries to, directly or
indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of Borrower or any Subsidiary to create, incur or permit to exist any Lien upon any of
its property or assets, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or to make or repay loans or advances to Borrower or any other Subsidiary or to Guarantee
Indebtedness of Borrower or any other Subsidiary; provided that: 
 (i) the foregoing shall not apply to
(x) restrictions and conditions imposed by law or by this Agreement and (y) customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions
apply only to the Subsidiary that is to be sold and such sale is permitted hereunder; and 
 (ii) the foregoing clause (a) shall
not apply to (x) restrictions or conditions imposed by any agreement relating to secured Permitted Indebtedness if such restrictions or conditions apply only to the property or assets securing such Indebtedness and (y) customary provisions
in leases, in-bound licenses of Intellectual Property and other contracts restricting the assignment thereof; 

  
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 (iii) the foregoing shall not apply to any stockholder agreement, charter, by laws or other
organizational documents of Borrower or any Subsidiary as in effect on the date hereof and as amended as permitted hereunder; and 
 (iv) the
foregoing shall not apply to Permitted Liens. 
 9.12 Amendments to Material Agreements. Borrower will not, and will not permit any of its
Subsidiaries to, enter into any material amendment to or material modification of any Material Agreement or terminate any Material Agreement (unless replaced with another agreement that, viewed as a whole, is on better terms for Borrower or such
Subsidiary) without in each case the prior written consent of the Lender (which consent shall not be unreasonably withheld or delayed). 
 9.13
Preservation of Borrower Lease; Operating Leases.  
 (a) Notwithstanding any provision of this Agreement to the contrary,
Borrower shall not: 
 (i) Surrender, terminate, forfeit, or suffer or permit the surrender, termination or forfeiture of, or agree to a
material change, modification, or amendment to, any Borrower Lease that is materially adverse to the Lenders, nor transfer, sell, assign, convey, dispose of, mortgage, pledge, hypothecate, assign or encumber any of its interest in, any Borrower
Lease; 
 (ii) Waive, excuse, condone or in any way release or discharge Borrower Landlord of or from its material obligations, covenants
and/or conditions under any Borrower Lease to the extent such waiver, excuse, condonement, release or discharge is materially adverse to the Lenders; or 

(iii) Elect to treat any Borrower Lease as terminated or rejected under subsection 365 of the Bankruptcy Code or other applicable Law. Any such
election made without Majority Lenders’ prior written consent shall be void. If, pursuant to subsection 365 of the Bankruptcy Code or other applicable law, Borrower seeks to offset, against the rent reserved in any Borrower Lease, the amount of
any damages caused by the nonperformance by Borrower Landlord of any of its obligations thereunder after the rejection by Borrower Landlord of such Borrower Lease under the Bankruptcy Code or other applicable Law, then Borrower shall not effect any
offset of any amounts objected to by Lenders. 
 (b) Borrower will not, and will not permit any of its Subsidiaries to, make any expenditures
in respect of operating leases, except for: 
 (i) real estate operating leases; 

(ii) operating leases between Borrower and any of its wholly-owned Subsidiaries or between any of Borrower’s wholly-owned Subsidiaries;
and 
 (c) operating leases that would not cause Borrower and its Subsidiaries, on a consolidated basis, to make payments exceeding
$1,000,000 (or the Equivalent Amount in other currencies) in any fiscal year. 

  
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 9.14 Sales and Leasebacks. Except as disclosed on Schedule 9.14, Borrower will not, and will not
permit any of its Subsidiaries to, become liable, directly or indirectly, with respect to any lease, whether an operating lease or a Capital Lease Obligation, of any property (whether real, personal, or mixed), whether now owned or hereafter
acquired, (i) which Borrower or such Subsidiary has sold or transferred or is to sell or transfer to any other Person and (ii) which Borrower or such Subsidiary intends to use for substantially the same purposes as property which has been
or is to be sold or transferred. 
 9.15 Hazardous Material. Borrower will not, and will not permit any of its Subsidiaries to, use, generate,
manufacture, install, treat, release, store or dispose of any Hazardous Material, except in compliance with all applicable Environmental Laws or where the failure to comply could not reasonably be expected to result in a Material Adverse Change.

 9.16 Accounting Changes. Borrower will not, and will not permit any of its Subsidiaries to, make any significant change in accounting treatment
or reporting practices, except as required or permitted by GAAP.  
 9.17 Compliance with ERISA. No ERISA Affiliate shall cause or suffer to
exist (a) any event that could result in the imposition of a Lien with respect to any Title IV Plan or Multiemployer Plan or (b) any other ERISA Event that would, in the aggregate, have a Material Adverse Effect. No Obligor or Subsidiary
thereof shall cause or suffer to exist any event that could result in the imposition of a Lien with respect to any Benefit Plan. 

SECTION 10 
 FINANCIAL
COVENANTS 
 10.01 Minimum Revenue. 

(a) Borrower and its Subsidiaries shall have Revenue: 

(i) during the twelve month period beginning on January 1, 2014, of at least $30,000,000; 

(ii) during the twelve month period beginning on January 1, 2015, of at least $50,000,000; 

(iii) during the twelve month period beginning on January 1, 2016, of at least $65,000,000; 

(iv) during the twelve month period beginning on January 1, 2017, of at least $80,000,000; 

(v) during the twelve month period beginning on January 1, 2018, of at least $95,000,000; and 

(vi) during each twelve month period following thereafter, of at least $95,000,000. 

  
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 10.02 Cure Right.  

(a) Notwithstanding anything to the contrary contained in Section 11, in the event that the Borrower fails to comply with the
covenants contained in Section 10.01(a)(i)-(v) or Section 10.03 (such covenants for such applicable periods being the “Specified Financial Covenants”), Borrower shall have the right at any time in the
twelve (12) months prior to, or within 90 (ninety) days of, the end of the respective calendar year: 
 (i) to issue additional shares
of Equity Interests in exchange for cash (the “Equity Cure Right”), or 
 (ii) to borrow Permitted Subordinated Debt
(the “Subordinated Debt Cure Right” and, collectively with the Equity Cure Right, the “Cure Right”), 
 and
upon the receipt by Borrower of the Cure Amount pursuant to the exercise of such Cure Right, such Cure Amount shall be deemed to constitute Revenue or cash, as applicable, of Borrower for purposes of the Specified Financial Covenants and the
Specified Financial Covenants shall be recalculated. If, after giving effect to the foregoing recalculation, Borrower shall then be in compliance with the requirements of the Specified Financial Covenants, Borrower shall be deemed to have satisfied
the requirements of the Specified Financial Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach of the Specified Financial Covenants
that had occurred shall be deemed cured without any further action of Borrower or Lenders for all purposes under the Loan Documents. 

(b) Notwithstanding anything herein to the contrary, (i) the Cure Right may be exercised no more than twice, (ii) the amount
of the payment received by Borrower from investors investing in Borrower pursuant to Section 10.02(a) (the “Cure Amount”) shall be equal to twice the shortfall amount required to cause the Borrower
to be in compliance with the Specified Financial Covenants, (iii) Borrower shall deliver a compliance certificate, evidencing compliance with the Specified Financial Covenants after giving effect to receipt of the Cure Amount, and
(iv) upon receipt by Borrower of the Cure Amount, Borrower shall immediately prepay the Loans, without any Prepayment Premium, in an amount equal to the Cure Amount, credited in the order set forth on Section 3.03(b)(i)(A)-(E). 

 10.03 Minimum Cash 
 Borrower and
Subsidiaries shall maintain at all times Liquidity in an amount which shall exceed the greater of (i) $2,000,000 and (ii) to the extent Borrower has incurred Permitted Priority Debt, the minimum cash balance, if any, required of Borrower
by Borrower’s Permitted Priority Debt creditors. 
 SECTION 11 

EVENTS OF DEFAULT 
 11.01 Events of
Default. Each of the following events shall constitute an “Event of Default”: 

  
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 (a) Borrower shall fail to pay any principal of any Loan when and as the same shall become due
and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
 (b) any Obligor shall fail to pay any
Obligation (other than an amount referred to in Section 11.01(a)) when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three (3) Business Days; 

(c) any representation or warranty made or deemed made by or on behalf of Borrower or any of its Subsidiaries in or in connection with this
Agreement or any other Loan Document or any amendment or modification hereof or thereof, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or
any amendment or modification hereof or thereof, shall: (i) prove to have been incorrect when made or deemed made to the extent that such representation or warranty contains any materiality or Material Adverse Effect qualifier; or
(ii) prove to have been incorrect in any material respect when made or deemed made to the extent that such representation or warranty does not otherwise contain any materiality or Material Adverse Effect qualifier; 

(d) any Obligor shall fail to observe or perform any covenant, condition or agreement contained in Section 8.02, 8.03
(with respect to the Borrower’s existence), 8.11, 8.12, 8.14, 9 or 10; 
 (e) except as
otherwise set forth in Section 10.02, any Obligor shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in Section 11.01(a), (b) or
(d)) or any other Loan Document and such failure shall continue unremedied for a period of 20 or more days after written notice thereof from the Lenders is received by a Responsible Officer of Borrower; 

(f) Borrower or any of its Subsidiaries shall fail to make any payment (whether of principal or interest and regardless of amount) in respect
of any Material Indebtedness, when and as the same shall become due and payable after giving effect to any applicable grace or cure period as originally provided by the terms of such Indebtedness; 

(g) (i) any material breach of, or “event of default” or similar event by any Obligor under, any Material Agreement,
(ii) any material breach of, or “event of default” or similar event under, the documentation governing the Existing Term Loan Obligations or any other Material Indebtedness shall occur, or (iii) any event or condition occurs
(A) that results in the Existing Term Loan Obligations or any other Material Indebtedness becoming due prior to its scheduled maturity or (B) that enables or permits (with or without the giving of notice, the lapse of time or both) the
holder or holders of the Existing Term Loan Obligations or any other such Material Indebtedness or any trustee or agent on its or their behalf to cause the Existing Term Loan Obligations or any other such Material Indebtedness to become due, or to
require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this Section 11.01(g) shall not apply to secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing the Existing Term Loan Obligations or any other such Material Indebtedness. 

  
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 (h) any Obligor: 

(i) becomes insolvent, or generally does not or becomes unable to pay its debts or meet its liabilities as the same become due, or admits in
writing its inability to pay its debts generally, or declares any general moratorium on its indebtedness, or proposes a compromise or arrangement or deed of company arrangement between it and any class of its creditors; 

(ii) commits an act of bankruptcy or makes an assignment of its property for the general benefit of its creditors or makes a proposal (or files
a notice of its intention to do so); 
 (iii) institutes any proceeding seeking to adjudicate it an insolvent, or seeking liquidation,
dissolution, winding-up, reorganization, compromise, arrangement, adjustment, protection, moratorium, relief, stay of proceedings of creditors generally (or any class of creditors), or composition of it or its debts or any other relief, under any
federal, provincial or foreign Law now or hereafter in effect relating to bankruptcy, winding-up, insolvency, reorganization, receivership, plans of arrangement or relief or protection of debtors or at common law or in equity, or files an answer
admitting the material allegations of a petition filed against it in any such proceeding; 
 (iv) applies for the appointment of, or the
taking of possession by, a receiver, interim receiver, receiver/manager, sequestrator, conservator, custodian, administrator, trustee, liquidator, voluntary administrator, receiver and manager or other similar official for it or any substantial part
of its property; or 
 (v) takes any action, corporate or otherwise, to approve, effect, consent to or authorize any of the actions described
in this Section 11.01(h) or in Section 11.01(i), or otherwise acts in furtherance thereof or fails to act in a timely and appropriate manner in defense thereof; 

(i) any petition is filed, application made or other proceeding instituted against or in respect of Borrower or any Subsidiary: 

(i) seeking to adjudicate it an insolvent; 

(ii) seeking a receiving order against it; 

(iii) seeking liquidation, dissolution, winding-up, reorganization, compromise, arrangement, adjustment, protection, moratorium, relief, stay
of proceedings of creditors generally (or any class of creditors), deed of company arrangement or composition of it or its debts or any other relief under any federal, provincial or foreign law now or hereafter in effect relating to bankruptcy,
winding-up, insolvency, reorganization, receivership, plans of arrangement or relief or protection of debtors or at common law or in equity; or 

(iv) seeking the entry of an order for relief or the appointment of, or the taking of possession by, a receiver, interim receiver,
receiver/manager, sequestrator, conservator, custodian, administrator, trustee, liquidator, voluntary administrator, receiver and manager or 

  
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other similar official for it or any substantial part of its property, and such petition, application or proceeding continues undismissed, or unstayed and in effect, for a period of thirty
(30) days after the institution thereof; provided that if an order, decree or judgment is granted or entered (whether or not entered or subject to appeal) against Borrower or such Subsidiary thereunder in the interim, such grace period
will cease to apply; provided further that if Borrower or such Subsidiary files an answer admitting the material allegations of a petition filed against it in any such proceeding, such grace period will cease to apply; 

(j) any other event occurs which, under the laws of any applicable jurisdiction, has an effect equivalent to any of the events referred
to in either of Section 11.01(h) or (i); 
 (k) one or more judgments for the payment of money shall be rendered
against any Obligor or any combination thereof in an aggregate amount in excess of (i) $500,000 (or the Equivalent Amount in other currencies) and the same shall remain undischarged for a period of 45 consecutive days, or (ii) $5,000,000
(or the Equivalent Amount in other currencies) and the same shall remain undischarged for a period of 60 consecutive days, in either case, during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment
creditor to attach or levy upon any assets of any Obligor to enforce any such judgment; 
 (l) a Material Adverse Change shall have occurred;

 (m) (i) the Liens created by the Security Documents shall at any time not constitute a valid and perfected Lien on the collateral
intended to be covered thereby (to the extent perfection by filing, registration, recordation or possession is required herein or therein) in favor of the Lenders, free and clear of all other Liens (other than Permitted Liens), (ii) except for
expiration in accordance with its terms, any of the Security Documents or any Guarantee of any of the Obligations (including that contained in Section 13) shall for whatever reason be terminated or cease to be in full force and effect,
(ii) the enforceability of any of the Security Documents or any Guarantee of any of the Obligations (including that contained in Section 13) shall be contested by any Obligor; 

(n) any injunction, whether temporary or permanent, shall be rendered against any Obligor that prevents the Obligors from selling or
manufacturing the Product or its commercially available successors, or any of their other material and commercially available products in the United States or Europe for more than 45 consecutive calendar days. 

11.02 Remedies. Upon the occurrence of any Event of Default, then, and in every such event (other than an Event of Default described in
Section 11.01(h), (i) or (j)), and at any time thereafter during the continuance of such event, Majority Lenders may, by notice to the Borrower, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due
and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations, shall become due and payable
immediately (in the case of the Loans, at the Redemption Price therefor), without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Obligor; and 


  
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in case of any an Event of Default described in Section 11.01(h), (i) or (j), the Commitment shall automatically terminate and the principal of the Loans then
outstanding, together with accrued interest thereon and all fees and other Obligations, shall automatically become due and payable immediately (in the case of the Loans, at the Redemption Price therefor), without presentment, demand, protest or
other notice of any kind, all of which are hereby waived by each Obligor. 
 SECTION 12 

MISCELLANEOUS 
 12.01 No Waiver. No
failure on the part of the Lenders to exercise and no delay in exercising, and no course of dealing with respect to, any right, power or privilege under any Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege under any Loan Document preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The remedies provided herein are cumulative and not exclusive of any remedies provided by
law. 
 12.02 Notices. All notices, requests, instructions, directions and other communications provided for herein (including any
modifications of, or waivers, requests or consents under, this Agreement) shall be given or made in writing (including by telecopy) delivered, if to Borrower, another Obligor or the Lenders, to its address specified on the signature pages hereto or
its Guarantee Assumption Agreement, as the case may be, or at such other address as shall be designated by such party in a notice to the other parties. Except as otherwise provided in this Agreement, all such communications shall be deemed to have
been duly given upon receipt of a legible copy thereof, in each case given or addressed as aforesaid. All such communications provided for herein by telecopy shall be confirmed in writing promptly after the delivery of such communication (it being
understood that non-receipt of written confirmation of such communication shall not invalidate such communication). Notices, documents, certificates and other deliverables to the Lenders by any Obligor may be made solely to the Control Agent and the
Control Agent shall promptly deliver such notices, documents, certificates and other deliverables to the other Lenders hereunder. 
 12.03
Expenses, Indemnification, Etc. 
 (a) Expenses. Borrower agrees to pay or reimburse (i) the Lenders for
all of their reasonable out of pocket costs and expenses (including the reasonable out-of-pocket fees and expenses of Morrison & Foerster LLP, special counsel to the Lenders, and any sales, goods and services or other similar taxes
applicable thereto, and printing, reproduction, document delivery, communication and travel costs) in connection with (x) the negotiation, preparation, execution and delivery of this Agreement, the amendment and restatement of the Existing Term
Loan Agreement, and the other Loan Documents and the making of the Loans (exclusive of post-closing costs), (y) post-closing costs and (z) the negotiation or preparation of any modification, supplement or waiver of any of the terms of this
Agreement or any of the other Loan Documents (whether or not consummated) and (ii) the Lenders for all of their out of pocket costs and expenses (including the fees and expenses of legal counsel) in connection with any enforcement or collection
proceedings resulting from the occurrence of an Event of Default; provided, however, that the Borrower shall not be required to pay or reimburse any amounts pursuant to Section 12.03(a)(i)(x) in excess of the Expense
Cap (inclusive of all out of pocket costs and  

  
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expenses in connection with the negotiation, preparation, execution and delivery of the amendment and restatement of the Existing Term Loan Agreement and the making of the loans thereunder);
provided further that, so long as the Loans are consummated on the Closing Date, then such fees shall be credited from the fees paid by the Borrower pursuant to Section 2.03. Notwithstanding any other provision
herein, the Borrower will not be required to pay or reimburse the Lenders for any expenses that the Lenders may incur in connection with any amendment to this Agreement made solely because the Borrower has ceased to qualify as a “Small
Business” within the meaning of the SBIC Act, and the regulations promulgated thereunder (including part 107 and 121 of Title 13 of the United States Code of Federal Regulations), including any expenses associated with the transfer of
PIOP’s commitment to a new Lender. 
 (b) Indemnification. Borrower hereby
indemnifies the Lenders, their Affiliates, and their respective directors, officers, employees, attorneys, agents, advisors and controlling parties (each, an “Indemnified Party”) from and against, and agrees to hold them
harmless against, any and all Claims or Losses of any kind (including reasonable fees and disbursements of counsel), joint or several, that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or relating to any investigation, litigation or proceeding or the preparation of any defense with respect thereto arising out of or in connection with or relating to this Agreement or any of the other Loan Documents or the
transactions contemplated hereby or thereby or any use made or proposed to be made with the proceeds of the Loans, whether or not such investigation, litigation or proceeding is brought by Borrower, any of its shareholders or creditors, an
Indemnified Party or any other Person, or an Indemnified Party is otherwise a party thereto, and whether or not any of the conditions precedent set forth in Section 6 are satisfied or the other transactions
contemplated by this Agreement are consummated, except to the extent such Claim or Loss is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful
misconduct. No Obligor shall assert any claim against any Indemnified Party, on any theory of liability, for consequential, indirect, special or punitive damages arising out of or otherwise relating to this Agreement or any of the other Loan
Documents or any of the transactions contemplated hereby or thereby or the actual or proposed use of the proceeds of the Loans. Borrower, its Subsidiaries and Affiliates and their respective directors, officers, employees, attorneys, agents,
advisors and controlling parties are each sometimes referred to in this Agreement as a “Borrower Party.” No Lender shall assert any claim against any Borrower Party, on any theory of liability, for consequential, indirect,
special or punitive damages arising out of or otherwise relating to this Agreement or any of the other Loan Documents or any of the transactions contemplated hereby or thereby or the actual or proposed use of the proceeds of the Loans.

 12.04 Amendments, Etc. Except as otherwise expressly provided in this Agreement, any provision of this Agreement may be modified or
supplemented only by an instrument in writing signed by the Borrower and the Lenders. Any consent, approval, (including without limitation any approval of or authorization for any amendment to any of the Loan Documents), instruction or other
expression of the Lenders under any of the Loan Documents may be obtained by an instrument in writing signed in one or more counterparts by Majority Lenders; provided however, that the consent of all of the Lenders shall be required to: 

  
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 (i) amend, modify, discharge, terminate or waive any of the terms of this Agreement if such
amendment, modification, discharge, termination or waiver would increase the amount of the Loans, reduce the fees payable hereunder, reduce interest rates or other amounts payable with respect to the Loans, extend any date fixed for payment of
principal, interest or other amounts payable relating to the Loans or extend the repayment dates of the Loans; 
 (ii) amend the provisions
of Section 6; 
 (iii) amend, modify, discharge, terminate or waive any Security Document if the effect is to release a
material part of the Collateral subject thereto otherwise than pursuant to the terms hereof or thereof; or 
 (iv) amend this Section
12.04. 
 Notwithstanding anything to the contrary herein, a Defaulting Lender shall not have any right to approve or disapprove any amendment,
waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that
(x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms
affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender. 
 12.05 Successors and
Assigns.  
 (a) General. The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lenders. Any of the Lenders
may assign or otherwise transfer any of their rights or obligations hereunder to an assignee in accordance with the provisions of Section 12.05(b), (ii) by way of participation in accordance with the provisions of
Section 12.05(e) subject to the limitations of Section 12.05(f) or (iii) by way of pledge or assignment of a security interest subject to the restrictions of Section 12.05(g). Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in Section 12.05(e) and, to the extent
expressly contemplated hereby, the Indemnified Parties) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

(b) Assignments by Lenders. Any of the Lenders may at any time assign to one or more Eligible Transferees all or a
portion of their rights and obligations under this Agreement (including all or a portion of the Commitment and the Loans at the time owing to it); provided, however, that no such assignment shall be made to Borrower, an Affiliate of Borrower,
or any employees or directors of Borrower at any time. Subject to the recording thereof by the Lenders pursuant to Sections 12.05(c) and 12.05(d), from and after the effective date specified in each
Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and  

  
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obligations of the Lenders under this Agreement, and correspondingly the assigning Lender shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of a Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the
benefits of Section 5 and Section 12.03. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 12.05(b) shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with Section 12.05(e). 

(c) Amendments to Loan Documents. Each of the Lenders and the Obligors agrees to enter into such amendments to the Loan
Documents, and such additional Security Documents and other instruments and agreements, in each case in form and substance reasonably acceptable to the Lenders and the Obligors, as shall reasonably be necessary to implement and give effect to any
assignment made under this Section 12.05.  
 (d) Register. The Lenders, acting solely for this purpose as
an agent of Borrower, shall maintain at one of its offices, which shall be the office of the Control Agent, a register for the recordation of the name and address of any assignee of the Lenders and the Commitment and outstanding principal amount of
the Loans owing thereto (the “Register”). The entries in the Register shall be conclusive, absent manifest error, and Borrower may treat each Person whose name is recorded in the Register pursuant to the terms
hereof as the “Lender” hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by Borrower, at any reasonable time and from time to time upon reasonable prior
notice. 
 (e) Participations. Any of the Lenders may at any time, without the consent of, or notice to, Borrower, sell
participations to any Person (other than a natural person or Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or
obligations under this Agreement (including all or a portion of the Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Borrower shall continue to deal solely and directly with the Lenders in connection therewith. 

Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant,
agree to any amendment, modification or waiver that would (i) increase or extend the term of such Lender’s Commitment, (ii) extend the date fixed for the payment of principal of or interest on the Loans or any portion of any fee
hereunder payable to the Participant, (iii) reduce the amount of any such payment of principal, or (iv) reduce the rate at which interest is payable thereon to a level below the rate at which the Participant is entitled to receive such
interest. Subject to Section 12.05(f), Borrower agrees that each Participant shall be entitled to the benefits of Section 5 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
Section 12.05(b). To the extent permitted by law, each Participant also shall be  

  
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entitled to the benefits of Section 4.04(a) as though it were the Lender. 

(f) Limitations on Rights of Participants. A Participant shall not be entitled to receive any greater payment under
Section 5.01 or 5.05 than a Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior
written consent. 
 (g) Certain Pledges. The Lenders may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement and any other Loan Document to secure obligations of the Lenders, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release the Lenders from any of their obligations hereunder or substitute any such pledgee or assignee for the Lenders as a party hereto. 

12.06 Survival. The obligations of Borrower under Sections 5.01, 5.03, 5.05, 12.03, 12.05, 12.09,
12.10, 12.11, 12.12, 12.13, 12.14 and Section 13 (solely to the extent guaranteeing any of the obligations under the foregoing Sections) shall survive the repayment of the Loans and the termination of
the Commitment and, in the case of the Lenders’ assignment of any interest in the Commitment or the Loans hereunder, shall survive, in the case of any event or circumstance that occurred prior to the effective date of such assignment, the
making of such assignment, notwithstanding that the Lenders may cease to be “Lenders” hereunder. In addition, each representation and warranty made, or deemed to be made by a notice of the Loans, herein or pursuant hereto shall survive the
making of such representation and warranty. 
 12.07 Captions. The table of contents and captions and section headings appearing herein are
included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Agreement. 
 12.08
Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.

 12.09 Governing Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance
with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall
apply. 
 12.10 Jurisdiction, Service of Process and Venue. 

(a) Submission to Jurisdiction. Each Obligor agrees that any suit, action or proceeding with respect to this Agreement or any
other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to
the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment. This Section 12.10(a) is for the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking
proceedings in any other courts with  

  
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jurisdiction. To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions. 

(b) Alternative Process. Nothing herein shall in any way be deemed to limit the ability of the Lenders to serve any such process
or summonses in any other manner permitted by applicable law. 
 (c) Waiver of Venue, Etc. Each Obligor irrevocably
waives to the fullest extent permitted by law any objection that it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document and hereby further
irrevocably waives to the fullest extent permitted by law any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. A final judgment (in respect of which time for all appeals has elapsed)
in any such suit, action or proceeding shall be conclusive and may be enforced in any court to the jurisdiction of which such Obligor is or may be subject, by suit upon judgment. 

12.11 Waiver of Jury Trial. EACH OBLIGOR AND EACH LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 

12.12 Waiver of Immunity. To the extent that any Obligor may be or become entitled to claim for itself or its Property or revenues any immunity on the
ground of sovereignty or the like from suit, court jurisdiction, attachment prior to judgment, attachment in aid of execution of a judgment or execution of a judgment, and to the extent that in any such jurisdiction there may be attributed such an
immunity (whether or not claimed), such Obligor hereby irrevocably agrees not to claim and hereby irrevocably waives such immunity with respect to its obligations under this Agreement and the other Loan Documents. 

12.13 Entire Agreement. This Agreement and the other Loan Documents constitute the entire agreement among the parties with respect to the subject matter
hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. EACH OBLIGOR ACKNOWLEDGES, REPRESENTS AND WARRANTS THAT IN DECIDING TO ENTER INTO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS OR IN TAKING OR NOT TAKING ANY ACTION HEREUNDER OR THEREUNDER, IT HAS NOT RELIED, AND WILL NOT RELY, ON ANY STATEMENT, REPRESENTATION, WARRANTY, COVENANT, AGREEMENT OR UNDERSTANDING, WHETHER WRITTEN OR ORAL, OF OR WITH THE
LENDERS OTHER THAN THOSE EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
 12.14 Severability. If any provision hereof is
found by a court to be invalid or unenforceable, to the fullest extent permitted by applicable law the parties agree that such invalidity or unenforceability shall not impair the validity or enforceability of any other provision hereof. 

  
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 12.15 No Fiduciary Relationship. Borrower acknowledges that the Lenders have no fiduciary relationship
with, or fiduciary duty to, Borrower arising out of or in connection with this Agreement or the other Loan Documents, and the relationship between the Lenders and the Borrower are solely that of creditor and debtor. This Agreement and the other Loan
Documents do not create a joint venture among the parties. 
 12.16 Confidentiality. The Lenders agree to maintain the confidentiality of the
Confidential Information (as defined in the Non-Disclosure Agreement (defined below)) in accordance with the terms of that certain non-disclosure agreement dated October 31, 2012 among Borrower and Capital Royalty, L.P (the
“Non-Disclosure Agreement”). 
 Any new Lender that becomes party to this Agreement hereby
agrees to be bound by the terms of the Non-Disclosure Agreement. The parties to this Agreement shall prepare a mutually agreeable press release announcing the completion of this transaction on the Closing Date. 

12.17 USA PATRIOT Act. The Lenders hereby notify the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)) (the “Act”), they are required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other
information that will allow such Lender to identify Borrower in accordance with the Act. 
 12.18 Maximum Rate of Interest. Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (in each case, the
“Maximum Rate”). If the Lenders shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans, and not to the payment of interest, or, if
the excessive interest exceeds such unpaid principal, the amount exceeding the unpaid balance shall be refunded to the applicable Obligor. In determining whether the interest contracted for, charged, or received by the Lenders exceeds the Maximum
Rate, the Lenders may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof,
(c) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of the Indebtedness and other obligations of any Obligor hereunder, or (d) allocate interest between
portions of such Indebtedness and other obligations under the Loan Documents to the end that no such portion shall bear interest at a rate greater than that permitted by applicable Law. 

12.19 Real Property Security Waivers.  

(A) Borrower acknowledges that all or any portion of the Obligations may now or hereafter be secured by a Lien or Liens upon real property
evidenced by certain documents including, without limitation, deeds of trust and assignments of rents. Lenders may, pursuant to the terms of said real property security documents and applicable law, foreclose under all or any portion of one or more
of said Liens by means of judicial or nonjudicial sale or sales. Borrower agrees that Lenders may exercise whatever rights and remedies they may have with respect to said real property security, all without affecting the liability of Borrower
hereunder, except to the extent Lenders realize payment by such action or proceeding. Except as 

  
 72 








 
provided under applicable law, no election to proceed in one form of action or against any party, or on any obligation shall constitute a waiver of Lenders’ rights to proceed in any other
form of action or against Borrower or any other Person, or diminish the liability of Borrower, or affect the right of Lenders to proceed against Borrower for any deficiency, except to the extent Lenders realize payment by such action,
notwithstanding the effect of such action upon Borrower’s rights of subrogation, reimbursement or indemnity, if any, against Borrower or any other Person. 

(B) To the extent permitted under applicable law, Borrower hereby waives any rights and defenses that are or may become available to Borrower
by reason of Sections 2787 to 2855, inclusive, of the California Civil Code. 
 (C) To the extent permitted under applicable law, Borrower
hereby waives all rights and defenses that Borrower may have because the Obligations are or may be secured by real property. This means, among other things: 

(1) Lenders may collect from Borrower without first foreclosing on any real or personal property collateral pledged by any other Obligor; 

(2) If Lenders foreclose on any real property collateral pledged by Borrower: 

i. The amount of the Loan may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral
is worth more than the sale price; and 
 ii. Lenders may collect from Borrower even if Lender, by foreclosing on the real property
collateral, has destroyed any right Borrower may have to collect from any other Obligor. 
 To the extent permitted under applicable law, this is an
unconditional and irrevocable waiver of any rights and defenses Borrower may have because the Obligations hereunder are or may be secured by real property. These rights and defenses include, but are not limited to, any rights or defenses based upon
Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure. 
 (D) To the extent permitted under applicable law,
Borrower waives all rights and defenses arising out of an election of remedies by Lenders, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed obligation, has destroyed Borrower’s
rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise. 

(E) Waiver of Marshaling. Without limiting the foregoing in any way, each Obligor hereby irrevocably waives and releases, to the extent
permitted by Law, any and all rights it may have at any time (whether arising directly or indirectly, by operation of law, contract or otherwise) to require the marshaling of any assets of any Obligor, which right of marshaling might otherwise arise
from any payments made or obligations performed. 

  
 73 








 SECTION 13 

GUARANTEE 
 13.01 The Guarantee. The
Subsidiary Guarantors hereby jointly and severally guarantee to the Lenders and their successors and assigns the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of the principal of and interest on the Loans
and all fees and other amounts from time to time owing to the Lenders by Borrower under this Agreement or under any other Loan Document and by any other Obligor under any of the Loan Documents, in each case strictly in accordance with the terms
thereof (such obligations being herein collectively called the “Guaranteed Obligations”). The Subsidiary Guarantors hereby further jointly and severally agree that if Borrower shall fail to pay in full when due
(whether at stated maturity, by acceleration or otherwise) any of the Guaranteed Obligations, the Subsidiary Guarantors will promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or
renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due (whether at extended maturity, by acceleration or otherwise) in accordance with the terms of such extension or renewal. 

13.02 Obligations Unconditional. The obligations of the Subsidiary Guarantors under Section 13.01 are absolute and unconditional, joint and
several, irrespective of the value, genuineness, validity, regularity or enforceability of the obligations of Borrower under this Agreement or any other agreement or instrument referred to herein, or any substitution, release or exchange of any
other guarantee of or security for any of the Guaranteed Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge or defense
of a surety or guarantor, it being the intent of this Section 13.02 that the obligations of the Subsidiary Guarantors hereunder shall be absolute and unconditional, joint and several, under any and all circumstances. Without limiting the
generality of the foregoing, it is agreed that the occurrence of any one or more of the following shall not alter or impair the liability of the Subsidiary Guarantors hereunder, which shall remain absolute and unconditional as described above:

 (a) at any time or from time to time, without notice to the Subsidiary Guarantors, the time for any performance of or compliance with
any of the Guaranteed Obligations shall be extended, or such performance or compliance shall be waived; 
 (b) any of the acts mentioned in
any of the provisions of this Agreement or any other agreement or instrument referred to herein shall be done or omitted; 
 (c) the maturity
of any of the Guaranteed Obligations shall be accelerated, or any of the Guaranteed Obligations shall be modified, supplemented or amended in any respect, or any right under this Agreement or any other agreement or instrument referred to herein
shall be waived or any other guarantee of any of the Guaranteed Obligations or any security therefor shall be released or exchanged in whole or in part or otherwise dealt with; or 

(d) any lien or security interest granted to, or in favor of, the Lenders as security for any of the Guaranteed Obligations shall fail to be
perfected. 

  
 74 








 The Subsidiary Guarantors hereby expressly waive diligence, presentment, demand of payment,
protest and all notices whatsoever, and any requirement that the Lenders exhaust any right, power or remedy or proceed against Borrower under this Agreement or any other agreement or instrument referred to herein, or against any other Person under
any other guarantee of, or security for, any of the Guaranteed Obligations. 
 13.03 Reinstatement. The obligations of the Subsidiary Guarantors under
this Section 13 shall be automatically reinstated if and to the extent that for any reason any payment by or on behalf of Borrower in respect of the Guaranteed Obligations is rescinded or must be otherwise restored by any holder of any
of the Guaranteed Obligations, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, and the Subsidiary Guarantors jointly and severally agree that they will indemnify the Lenders on demand for all reasonable costs and
expenses (including fees of counsel) incurred by the Lenders in connection with such rescission or restoration, including any such costs and expenses incurred in defending against any claim alleging that such payment constituted a preference,
fraudulent transfer or similar payment under any bankruptcy, insolvency or similar law. 
 13.04 Subrogation. The Subsidiary Guarantors hereby
jointly and severally agree that until the payment and satisfaction in full of all Guaranteed Obligations and the expiration and termination of the Commitment of the Lenders under this Agreement they shall not exercise any right or remedy arising by
reason of any performance by them of their guarantee in Section 13.01, whether by subrogation or otherwise, against Borrower or any other guarantor of any of the Guaranteed Obligations or any security for any of the Guaranteed
Obligations. 
 13.05 Remedies. The Subsidiary Guarantors jointly and severally agree that, as between the Subsidiary Guarantors and the
Lenders, the obligations of Borrower under this Agreement and under the other Loan Documents may be declared to be forthwith due and payable as provided in Section 11 (and shall be deemed to have become automatically due and payable in
the circumstances provided in Section 11) for purposes of Section 13.01 notwithstanding any stay, injunction or other prohibition preventing such declaration (or such obligations from becoming automatically due and payable)
as against Borrower and that, in the event of such declaration (or such obligations being deemed to have become automatically due and payable), such obligations (whether or not due and payable by Borrower) shall forthwith become due and payable by
the Subsidiary Guarantors for purposes of Section 13.01. 
 13.06 Instrument for the Payment of Money. Each Subsidiary Guarantor hereby
acknowledges that the guarantee in this Section 13 constitutes an instrument for the payment of money, and consents and agrees that the Lender, at its sole option, in the event of a dispute by such Subsidiary Guarantor in the payment of
any moneys due hereunder, shall have the right to proceed by motion for summary judgment in lieu of complaint pursuant to N.Y. Civ. Prac. L&R § 3213. 

13.07 Continuing Guarantee. The guarantee in this Section 13 is a continuing guarantee, and shall apply to all Guaranteed Obligations
whenever arising. 
 13.08 Rights of Contribution. The Subsidiary Guarantors hereby agree, as between themselves, that if any Subsidiary
Guarantor shall become an Excess Funding Guarantor (as  

  
 75 








 
defined below) by reason of the payment by such Subsidiary Guarantor of any Guaranteed Obligations, each other Subsidiary Guarantor shall, on demand of such Excess Funding Guarantor (but
subject to the next sentence), pay to such Excess Funding Guarantor an amount equal to such Subsidiary Guarantor’s Pro Rata Share (as defined below and determined, for this purpose, without reference to the properties, debts and liabilities of
such Excess Funding Guarantor) of the Excess Payment (as defined below) in respect of such Guaranteed Obligations. The payment obligation of a Subsidiary Guarantor to any Excess Funding Guarantor under this Section 13.08 shall be
subordinate and subject in right of payment to the prior payment in full of the obligations of such Subsidiary Guarantor under the other provisions of this Section 13 and such Excess Funding Guarantor shall not exercise any right or
remedy with respect to such excess until payment and satisfaction in full of all of such obligations. 
 For purposes of this
Section 13.08, (i) “Excess Funding Guarantor” means, in respect of any Guaranteed Obligations, a Subsidiary Guarantor that has paid an amount in excess of its Pro Rata Share of such Guaranteed Obligations,
(ii) “Excess Payment” means, in respect of any Guaranteed Obligations, the amount paid by an Excess Funding Guarantor in excess of its Pro Rata Share of such Guaranteed Obligations and (iii) “Pro Rata
Share” means, for any Subsidiary Guarantor, the ratio (expressed as a percentage) of (x) the amount by which the aggregate present fair saleable value of all properties of such Subsidiary Guarantor (excluding any shares of stock of
any other Subsidiary Guarantor) exceeds the amount of all the debts and liabilities of such Subsidiary Guarantor (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of such Subsidiary Guarantor
hereunder and any obligations of any other Subsidiary Guarantor that have been Guaranteed by such Subsidiary Guarantor) to (y) the amount by which the aggregate fair saleable value of all properties of all of the Subsidiary Guarantors exceeds
the amount of all the debts and liabilities (including contingent, subordinated, unmatured and unliquidated liabilities, but excluding the obligations of the Borrower and the Subsidiary Guarantors hereunder and under the other Loan Documents) of all
of the Subsidiary Guarantors, determined (A) with respect to any Subsidiary Guarantor that is a party hereto on the Closing Date, as of the Closing Date, and (B) with respect to any other Subsidiary Guarantor, as of the date such
Subsidiary Guarantor becomes a Subsidiary Guarantor hereunder. 
 13.09 General Limitation on Guarantee Obligations. In any action or
proceeding involving any provincial, territorial or state corporate law, or any state or federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Subsidiary Guarantor under
Section 13.01 would otherwise, taking into account the provisions of Section 13.08, be held or determined to be void, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of
its liability under Section 13.01, then, notwithstanding any other provision hereof to the contrary, the amount of such liability shall, without any further action by such Subsidiary Guarantor, the Lenders or any other Person, be
automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding. 

  
 76 








 13.10 Additional Waivers.  

(a) To the extent permitted under applicable law, each Subsidiary Guarantor hereby waives any rights and defenses that are or may become
available to Subsidiary Guarantor by reason of Sections 2787 to 2855, inclusive, of the California Civil Code. 
 (b) To the extent permitted
under applicable law, each Subsidiary Guarantor hereby waives all rights and defenses that Subsidiary Guarantor may have because the Obligations are or may be secured by real property. This means, among other things: 

(i) Lenders may collect from any Subsidiary Guarantor without first foreclosing on any real or personal property collateral pledged by
Borrower; 
 (ii) If Lenders foreclose on any real property collateral pledged by Borrower: 

(A) The amount of the Loan may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral
is worth more than the sale price; and 
 (B) Lenders may collect from each Subsidiary Guarantor even if Lenders, by foreclosing on the real
property collateral, has destroyed any right such Subsidiary Guarantor may have to collect from Borrower. 
 To the extent permitted under applicable law,
this is an unconditional and irrevocable waiver of any rights and defenses each Subsidiary Guarantor may have because the Obligations are or may be secured by real property. These rights and defenses include, but are not limited to, any rights or
defenses based upon Section 580a, 580b, 580d or 726 of the California Code of Civil Procedure. 
 (c) To the extent permitted under
applicable law, each Subsidiary Guarantor waives all rights and defenses arising out of an election of remedies by Lenders, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for a guaranteed
obligation, has destroyed such Subsidiary Guarantor’s rights of subrogation and reimbursement against the principal by the operation of Section 580d of the California Code of Civil Procedure or otherwise. 

(d) To the extent permitted under applicable law, each Subsidiary Guarantor hereby waives any right or defense it may have at law or equity,
including California Code of Civil Procedure Section 580a, to a fair market value hearing or action to determine a deficiency judgment after a foreclosure. 

[Signature Pages Follow] 

  
 77 








 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered as of the day and year first above written. 
  

			
	BORROWER:
	
	TANDEM DIABETES CARE, INC.
		
	By	 	 /S/ Kim Blickenstaff

		 	Name: Kim Blickenstaff
		 	Title: President and Chief Executive Officer
	
	Address for Notices:
	
	11045 Roselle Street
	San Diego, CA 92121
	
	Attn: Chief Executive Officer
	Tel.: 858-366-6876
	Fax: 858-202-6707
	Email: kblickenstaff@tandemdiabetes.com



  
 [Signature Page to Term
Loan Agreement] 









							
	LENDERS:
	
	CAPITAL ROYALTY PARTNERS II L.P.
		
		 	By CAPITAL ROYALTY PARTNERS II GP L.P., its General Partner
			
		 		 	By CAPITAL ROYALTY PARTNERS II GP LLC, its General Partner
				
		 		 	By	 	 /S/ Charles Tate

		 		 		 	Name: Charles Tate
		 		 		 	Title: Sole Member
	
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 		 	General Counsel
	Tel.:	 		 	713.209.7350
	Fax:	 		 	713.209.7351
	Email:	 		 	adorenbaum@capitalroyalty.com
	
	CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” L.P.
		
		 	By CAPITAL ROYALTY PARTNERS II—PARALLEL FUND “A” GP L.P., its General Partner
			
		 		 	By CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” GP LLC, its General Partner
				
	_	 		 	By	 	 /S/ Charles Tate

		 		 		 	Name: Charles Tate
		 		 		 	Title: Sole Member
	
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 		 	General Counsel
	Tel.:	 		 	713.209.7350
	Fax:	 		 	713.209.7351
	Email:	 		 	adorenbaum@capitalroyalty.com


  
 [Signature Page to Term
Loan Agreement] 









							
	
	PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II L.P.
		
		 	By PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II GP L.P., its General Partner
			
		 		 	By PARALLEL INVESTMENT OPPORTUNITIES PARTNERS II GP LLC, its General Partner
				
		 		 	By	 	 /S/ Charles Tate

		 		 		 	Name: Charles Tate
		 		 		 	Title: Sole Member
	
	Address for Notices:
	
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 		 	General Counsel
	Tel.:	 		 	713.209.7350
	Fax:	 		 	713.209.7351
	Email:	 		 	adorenbaum@capitalroyalty.com
	
	CAPITAL ROYALTY PARTNERS II (CAYMAN) L.P.
		 	By CAPITAL ROYALTY PARTNERS II (CAYMAN) GP L.P., its General Partner
		 		 	By CAPITAL ROYALTY PARTNERS II (CAYMAN) GP LLC, its General Partner
				
		 		 	By	 	 /S/ Charles Tate

		 		 	Name: Charles Tate
		 		 	Title: Sole Member
			
		 		 	WITNESS:
		 		 	Name:
	
	Address for Notices:
	1000 Main Street, Suite 2500
	Houston, TX 77002
	Attn:	 		 	General Counsel
	Tel.:	 		 	713.209.7350
	Fax:	 		 	713.209.7351
	Email:	 		 	adorenbaum@capitalroyalty.com


  
 [Signature Page to Term
Loan Agreement] 








 Schedule 1 

to Term Loan Agreement 

COMMITMENTS 
  

									
	 Lender
	  	Commitment	 	  	Proportionate
Share	 
	 Capital Royalty Partners II L.P.
	  	$	7,100,179.10	  	  	 	23.67	% 
	 Capital Royalty Partners II – Parallel Fund “A” L.P.
	  	$	10,390,678.71	  	  	 	34.64	% 
	 Parallel Investment Opportunities Partners II L.P.
	  	$	10,000,000.00	  	  	 	33.33	% 
	 Capital Royalty Partners II

(Cayman) L.P.
	  	$	2,509,142.19	  	  	 	8.36	% 
	 TOTAL
	  	$	30,000,000	  	  	 	100	% 








 Schedule 7.03 

to Term Loan Agreement 

GOVERNMENTAL AND OTHER APPROVALS; NO CONFLICTS 

1. Amended and Restated Loan and Security Agreement, dated January 14, 2013, by and between Borrower and Silicon Valley Bank, as may be amended from time
to time. 







 Schedule 7.05(b) 

to Term Loan Agreement 

CERTAIN INTELLECTUAL PROPERTY 
 Schedule
7.05(b)(i)(A) 
 See attached docket reports 
 Schedule
7.05(b)(i)(B) 
 See attached docket reports 
 Schedule
7.05(b)(i)(C) 
 See attached docket reports 
 Schedule
7.05(b)(ii)(E) 
 Borrower believes that certain of the Obligor Intellectual Property to which Borrower obtained title pursuant to the “Confidential
Intellectual Property Agreement” by and between Borrower and Smiths Medical ASD, Inc. dated July 10, 2012 may be infringed, violated, misappropriated or otherwise used by one or more Persons that compete with Borrower. Borrower is
analyzing such Obligor Intellectual Property. 
 Schedule 7.05(b)(iii)(A) 

Borrower believes that all or most of the Patents to which Borrower obtained title pursuant to the “Confidential Intellectual Property Agreement” by
and between Borrower and Smiths Medical ASD, Inc. dated July 10, 2012 are valid and enforceable; however, Borrower is analyzing certain of these Patents. 







 Schedule 7.05(c) 

to Term Loan Agreement 

MATERIAL INTELLECTUAL PROPERTY 
  

					
	 Docket Number
	  	 Title
	  	 Series No. /

Filing Date
  

Patent No. /
Issue Date

	 4574.03US01
 United States of America
	  	Infusion System with Disposable Cartridge Having Pressure Venting and Pressure Feedback	  	 10/086,641

02/28/2002
  

US 6,852,104

02/8/2005

			
	[***]	  	[***]	  	[***]
			
	 4574.16US02
 United States of America
	  	Methods and Devices for Determination of Flow Reservoir Volume	  	 12/714,299

02/26/2010
  

US 8,573,027

11/05/2013

			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	 4574.25US05
 United States of America
	  	Infusion Pump System With Disposable Cartridge Having Pressure Venting and Pressure Feedback	  	 12/846,733

07/29/2010
  

US 8,641,671

02/04/2014

			
	[***]	  	[***]	  	[***]
			
	 4574.25US07
 United States of America
	  	Infusion Pump System With Disposable Cartridge Having Pressure Venting and Pressure Feedback	  	 13/270,160

10/10/2011
  

US 8,287,495

10/16/2012


 [***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION. 








					
			
	 4574.25US08
 United States of America
	  	Infusion Pump System With Disposable Cartridge Having Pressure Venting and Pressure Feedback	  	 13/271,156

10/11/2011
  

US 8,298,184

10/30/2012

			
	 4574.25EP
 Europe
	  	Infusion Pump System With Disposable Cartridge Having Pressure Venting and Pressure Feedback	  	 10805076.6

07/29/2010
  

EP 2459251
 03/12/2014

(DE, FR, GB)

			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]
			
	 4576.23US01
 United States of America

 
 (in-licensed)
	  	Insulin Pump Having Missed Meal Bolus Alarm	  	 10/087,460

02/28/2002
  

US 6,744,350

06/01/2004


 [***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION. 








					
			
	 4576.25US02
 United States of America

 
 (in-licensed)
	  	Insulin Pump Having Missed Meal Bolus Alarm	  	 13/481,050

05/25/2012
  

US 8,690,856

04/08/2014

			
	[***]	  	[***]	  	[***]
			
	[***]	  	[***]	  	[***]

 [***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION. 







 Schedule 7.06 

to Term Loan Agreement 

CERTAIN LITIGATION 
 [***] 

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION. 







 Schedule 7.08 

to Term Loan Agreement 

TAXES 
 None 







 Schedule 7.12 

to Term Loan Agreement 

INFORMATION REGARDING SUBSIDIARIES 
 None 







 Schedule 7.13(b)-1 

to Term Loan Agreement 

EXISTING INDEBTEDNESS OF BORROWER AND ITS SUBSIDIARIES 

1. The Borrower is currently a party to the Amended and Restated Loan and Security Agreement, dated January 14, 2013, by and between Borrower and Silicon
Valley Bank, as may be amended from time to time. No amounts are current outstanding under this loan. 







 Schedule 7.13(b)-2 

to Term Loan Agreement 

LIENS GRANTED BY THE OBLIGORS 
 1. The Borrower
has granted certain Liens to Silicon Valley Bank pursuant to the Amended and Restated Loan and Security Agreement, dated January 14, 2013, by and between Borrower and Silicon Valley Bank, as may be amended from time to time. 

2. State of Mississippi State Tax Lien – $2,026. 
 3. State
of South Carolina State Tax Lien – $1,225. 







 Schedule 7.14 

to Term Loan Agreement 

MATERIAL AGREEMENTS OF EACH OBLIGOR 
 1. Lease
Agreement, dated March 7, 2012, as amended through November 7, 2013, by and between Borrower and ARE-11025/11075 Roselle Street, LLC. 
 2. Lease
Agreement, dated November 5, 2013, by and between Borrower and ARE-11025/11075 Roselle Street, LLC. 
 3. Confidential Intellectual Property Agreement,
dated July 10, 2012, by and between Borrower and Smiths Medical ASD, Inc. 
 4. Amended and Restated Development and Commercialization Agreement, dated
January 4, 2013, by and between Borrower and DexCom, Inc. 
 5. Research, Development and Commercialization Agreement, dated January 2, 2013, by
and between Borrower and JDRF. 







 Schedule 7.15 

to Term Loan Agreement 

PERMITTED RESTRICTIVE AGREEMENTS 
 1. Amended and
Restated Loan and Security Agreement, dated January 14, 2013, by and between Borrower and Silicon Valley Bank, as may be amended from time to time. 







 Schedule 7.16 

to Term Loan Agreement 
 REAL
PROPERTY OWNED OR LEASED BY BORROWER AND SUBSIDIARIES 
 1. Lease Agreement, dated March 7, 2012, as amended through November 7, 2013, by and
between Borrower and ARE-11025/11075 Roselle Street, LLC. 
 2. Lease Agreement, dated November 5, 2013, by and between Borrower and ARE-11025/11075
Roselle Street, LLC. 







 Schedule 7.17 

to Term Loan Agreement 

PENSION MATTERS 
 1. Tandem Diabetes Care, Inc.
401(k) Plan 
 2. Tandem Diabetes Care, Inc. Employee Handbook 

3. Tandem Diabetes Care, Inc. Travel and Expense Policies 
 4.
Tandem Diabetes Care, Inc. 2014 Cash Bonus Plan 







 Schedule 8.15(a) 

to Term Loan Agreement 

JURISDICTIONS FOR FOREIGN INTELLECTUAL PROPERTY FILINGS 

1. Australia 
 2. Canada 

3. China 
 4. Europe: rights in various European countries through
the European Patent Organisation (for Patents) and the European Union (via the Community Trade Mark system for Trademarks). 
 5. India 

6. Japan 
 7. Korea 

8. Member states of the World Intellectual Property Organisation per international applications for Patents filed via the Patent Cooperation treaty (PCT). 








 Schedule 9.05 

to Term Loan Agreement 

EXISTING INVESTMENTS 
 1. Silicon Valley Bank
Asset Management Account, where current total investment as of March 21, 2014 is $46,040,312.95. Funds are currently invested in Permitted Cash Equivalent Investments. 

2. Capital Advisors Group Asset Management Account, where current total investment as of March 21, 2014 is $48,012,133.10. Funds are currently invested in
Permitted Cash Equivalent Investments. 







 Schedule 9.10 

to Term Loan Agreement 

TRANSACTIONS WITH AFFILIATES 
 1. Third Amended
and Restated Investors’ Rights Agreement dated August 30, 2012, by and among the Borrower and certain stockholders of Borrower named there. 







 Schedule 9.14 

to Term Loan Agreement 

PERMITTED SALES AND LEASEBACKS 
 None 







 Exhibit A 

to Term Loan Agreement 
 FORM
OF GUARANTEE ASSUMPTION AGREEMENT 
 GUARANTEE ASSUMPTION AGREEMENT dated as of [DATE] by [NAME OF ADDITIONAL SUBSIDIARY
GUARANTOR], a             [corporation][limited liability company] (the “Additional Subsidiary Guarantor”), in favor of Capital Royalty Partners II L.P., Capital
Royalty Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities Partners II L.P., Capital Royalty Partners II (Cayman) L.P. and other parties from time to time party thereto as lenders (the
“Lenders”) under that certain Term Loan Agreement, dated as of April 4, 2014 (as amended, restated, supplemented or otherwise modified, renewed, refinanced or replaced, the “Loan Agreement”),
among Tandem Diabetes Care, Inc., a Delaware corporation (“Borrower”), the lenders party thereto and the Subsidiary Guarantors party thereto. 

Pursuant to Section 8.12(a) of the Loan Agreement, the Additional Subsidiary Guarantor hereby agrees to become a
“Subsidiary Guarantor” for all purposes of the Loan Agreement, and a “Grantor” for all purposes of the Security Agreement. Without limiting the foregoing, the Additional Subsidiary Guarantor hereby, jointly and severally with the
other Subsidiary Guarantors, guarantees to the Lenders and their successors and assigns the prompt payment in full when due (whether at stated maturity, by acceleration or otherwise) of all Guaranteed Obligations (as defined in
Section 13.01 of the Loan Agreement) in the same manner and to the same extent as is provided in Section 13 of the Loan Agreement. In addition, as of the date hereof, the Additional Subsidiary Guarantor hereby makes the
representations and warranties set forth in Sections 7.01, 7.02, 7.03, 7.05(a), 7.06(a), 7.06(b), 7.07, 7.08 and 7.18 of the Loan Agreement, and in Section 2 of the Security
Agreement, with respect to itself and its obligations under this Agreement and the other Loan Documents, as if each reference in such Sections to the Loan Documents included reference to this Agreement, such representations and warranties to be made
as of the date hereof. 
 The Additional Subsidiary Guarantor hereby instructs its counsel to deliver the opinions referred to
in Section 8.12(a) of the Loan Agreement to the Lenders. 
 IN WITNESS WHEREOF, the Additional Subsidiary Guarantor has
caused this Guarantee Assumption Agreement to be duly executed and delivered as of the day and year first above written. 
  

			
	[ADDITIONAL SUBSIDIARY GUARANTOR]
		
	By	 	  

		 	Name:
		 	Title:



  
 Exhibit A-1 








 Exhibit B 

to Term Loan Agreement 
 FORM
OF NOTICE OF BORROWING 
  

	Date :  	[            ] 

  

	To:	Capital Royalty Partners II L.P. and the other Lenders 


	    	1000 Main Street, Suite 2500 


	    	Houston, TX 77002 


	    	Attn: General Counsel 

 Re: Borrowing under Term Loan Agreement 

Ladies and Gentlemen: 

The undersigned, Tandem Diabetes Care, Inc., a Delaware corporation (“Borrower”), refers to the Term Loan
Agreement, dated as of April 4, 2014 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), among Borrower, Capital Royalty Partners II L.P., Capital Royalty
Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities Partners II L.P., Capital Royalty Partners II (Cayman) L.P. and other parties from time to time party thereto as lenders (“Lenders”), and
the subsidiary guarantors from time to time party thereto. The terms defined in the Loan Agreement are herein used as therein defined. 

Borrower hereby gives you notice irrevocably, pursuant to Section 2.02 of the Loan Agreement, of the borrowing of the Loan
specified herein: 
  

	 	1.	The proposed Borrowing Date is [            ]. 

  

	 	2.	The amount of the proposed Borrowing is $[            ]. 

  

	 	3.	The payment instructions with respect to the funds to be made available to the Borrower are as follows: 


Bank name: [            ] 

Bank Address: [            ] 

Routing Number: [            ] 

Account Number: [            ] 

Swift Code: [            ] 

The Borrower hereby certifies that the following statements are true on the date hereof, and will be true on the date of the proposed
borrowing of the Loan, before and after giving effect thereto and to the application of the proceeds therefrom: 

  
 Exhibit B-1 








 a) the representations and warranties made by the Borrower in Section 7 [(other than
Section 7.20)]1 of the Loan Agreement shall be true on and as of the Borrowing Date and immediately after giving effect to the application of the proceeds of the Borrowing with the
same force and effect as if made on and as of such date except that the representation regarding representations and warranties that refer to a specific earlier date shall be that they were true on such earlier date; 

b) on and as of the Borrowing Date, there shall have occurred no Material Adverse Change since
[            ]; and 
 c) no Default exists or would result from such proposed
borrowing. 
  

	1 	Insert parenthesis if Borrower is no longer a “Small Business” at the timing of the Borrowing of the term loan. 


  
 Exhibit B-2 








 IN WITNESS WHEREOF, the Borrower has caused this Notice of Borrowing to be duly executed and
delivered as of the day and year first above written. 
  

			
	BORROWER:
	
	TANDEM DIABETES CARE, INC.
		
	By	 	  

		 	Name:
		 	Title:


  
 Exhibit B-3 








 Exhibit C-1 

to Term Loan Agreement 
 FORM
OF TERM LOAN NOTE 
 U.S. $[            ]
                                         
                                         
                                         
                                         
                        [DATE] 

FOR VALUE RECEIVED, the undersigned, Tandem Diabetes Care, Inc., a Delaware corporation (“Borrower”),
hereby promises to pay to [Capital Royalty Partners II L.P./Capital Royalty Partners II – Parallel Fund “A” L.P./Parallel Investment Opportunities Partners II L.P./Capital Royalty Partners II (Cayman) L.P.] or its assigns (the
“Lender”) at the Lender’s principal office in 1000 Main Street Suite 2500, Houston, TX 77002, in immediately available funds, the aggregate principal sum set forth above, or, if less, the aggregate unpaid principal
amount of all Loans made by the Lender pursuant to Section 2.01 of the Term Loan Agreement, dated as of April 4, 2014 (as amended, restated, supplemented or otherwise modified, renewed, refinanced or
replaced, the “Loan Agreement”), among the Borrower, the Lender, the other lenders party thereto and the Subsidiary Guarantors party thereto, on the date or dates specified in the Loan Agreement, together with interest on the
principal amount of such Loans from time to time outstanding thereunder at the rates, and payable in the manner and on the dates, specified in the Loan Agreement.  

This Note is a Note issued pursuant to the terms of Section 2.04 of the Loan Agreement, and this Note and the holder hereof
are entitled to all the benefits and security provided for thereby or referred to therein, to which Loan Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein, shall
have the same meaning as in the Loan Agreement.  
 THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION; PROVIDED THAT SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY. 
 THIS NOTE IS SUBJECT TO THE TERMS OF THE INTERCREDITOR AGREEMENT, DATED AS OF
JANUARY 14, 2013, AMONG CAPITAL ROYALTY PARTNERS II L.P., CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” L.P., AND SILICON VALLEY BANK, AS AMENDED, RESTATED OR MODIFIED FROM TIME TO TIME. 

The Borrower hereby waives demand, presentment, protest or notice of any kind hereunder, other than notices provided for in the Loan
Documents. The non-exercise by the holder hereof of any of its rights hereunder in any particular instance shall not constitute a waiver thereof in such particular or any subsequent instance. 

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

  
 Exhibit C-1 








 
			
	TANDEM DIABETES CARE, INC.
		
	By	 	 
		 	Name:
		 	Title:



  
 Exhibit C-1 








 Exhibit C-2 

to Term Loan Agreement 
 FORM
OF PIK LOAN NOTE 
 U.S. $[            ]
                                         
                                         
                                         
                                         
                    [DATE] 
 FOR VALUE
RECEIVED, the undersigned, Tandem Diabetes Care, Inc. (“Borrower”), hereby promises to pay to [Capital Royalty Partners II L.P./Capital Royalty Partners II – Parallel Fund “A” L.P./Parallel Investment
Opportunities Partners II L.P./Capital Royalty Partners II (Cayman) L.P.] or its assigns (the “Lender”) at the Lender’s principal office in1000 Main Street Suite 2500, Houston, TX 77002, in immediately available funds,
the aggregate principal sum set forth above, or, if less, the aggregate unpaid principal amount of all PIK Loans made by the Lender pursuant to Section 3.02(d) of the Term Loan Agreement, dated as of April 4, 2014 (as amended,
restated, supplemented or otherwise modified, renewed, refinanced or replaced, the “Loan Agreement”), among the Borrower, the Lender, the other lenders party thereto and the Subsidiary Guarantors party thereto, on the date or
dates specified in the Loan Agreement, together with interest on the principal amount of such PIK Loans from time to time outstanding thereunder at the rates, and payable in the manner and on the dates, specified in the Loan Agreement. 

This Note is a Note issued pursuant to the terms of Section 3.02(d) of the Loan Agreement, and this Note and the holder
hereof are entitled to all the benefits and security provided for thereby or referred to therein, to which Loan Agreement reference is hereby made for a statement thereof. All defined terms used in this Note, except terms otherwise defined herein,
shall have the same meaning as in the Loan Agreement.  
 The Lender may supplement this Note by attaching to this Note
a schedule (the “Note Schedule”) to evidence additional PIK Loans made by the Lender to Borrower following the date first above written. The Lender may endorse thereon the date such additional PIK Loan is made and the
principal amount of such additional PIK Loan when made. Such Note Schedule shall form part of this Note and all references to this Note shall mean this Note, as supplemented by such Note Schedule. 

THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION; PROVIDED THAT SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW SHALL APPLY. 

THIS NOTE IS SUBJECT TO THE TERMS OF THE INTERCREDITOR AGREEMENT, DATED AS OF JANUARY 14, 2013, AMONG CAPITAL ROYALTY PARTNERS II L.P.,
CAPITAL ROYALTY PARTNERS II – PARALLEL FUND “A” L.P., AND SILICON VALLEY BANK, AS AMENDED, RESTATED OR MODIFIED FROM TIME TO TIME. 

  
 Exhibit C-2 








 FOR PURPOSES OF SECTIONS 1272, 1273 AND 1275 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED,
AND THE RULES AND REGULATIONS THEREUNDER, THIS NOTE IS BEING ISSUED WITH ORIGINAL ISSUE DISCOUNT; PLEASE CONTACT [NAME OF CFO OR TAX DIRECTOR OF ISSUER], [TITLE], [ADDRESS], TELEPHONE: [TEL #] TO OBTAIN INFORMATION REGARDING THE ISSUE PRICE, THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT AND THE YIELD TO MATURITY. 
 The Borrower hereby waives demand, presentment, protest or notice of any
kind hereunder, other than notices provided for in the Loan Documents. The non-exercise by the holder hereof of any of its rights hereunder in any particular instance shall not constitute a waiver thereof in such particular or any subsequent
instance. 
 THIS NOTE MAY NOT BE TRANSFERRED EXCEPT IN COMPLIANCE WITH THE TERMS OF THE LOAN AGREEMENT. 

 

			
	TANDEM DIABETES CARE, INC.
		
	By	 	  

		 	Name:
		 	Title:



  
 Exhibit C-2 








 PIK NOTE SCHEDULE 

This Note Schedule supplements that certain Note issued by Borrower to [Capital Royalty Partners II L.P./Capital Royalty Partners II – Parallel Fund
“A” L.P./Parallel Investment Opportunities Partners II L.P./Capital Royalty Partners II (Cayman) L.P.]2 or its assigns on [DATE]. 

 

					
	 Date of additional PIK Loan
	  	 Amount of additional PIK Loan made
	  	 Notation made
by3

		  		  	
		  		  	
		  		  	
		  		  	

  

	2 	Delete as appropriate for each Note. 


	3 	Insert name of party making notation (e.g. Borrower or Lender). 


  
 Exhibit C-2 








 Exhibit D 

to Term Loan Agreement 
 FORM
OF U.S. TAX COMPLIANCE CERTIFICATE 
 Reference is made to the Term Loan Agreement, dated as of April 4, 2014 (as the same may
be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), among Tandem Diabetes Care, Inc., a Delaware corporation (“Borrower”),
Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities Partners II L.P., Capital Royalty Partners II (Cayman) L.P. and other parties from time to time party thereto as
lenders (“Lenders”), and the subsidiary guarantors from time to time party thereto. [            ] (the “Foreign
Lender”) is providing this certificate pursuant to Section 5.05(e)(ii)(B) of the Loan Agreement. The Foreign Lender hereby represents and warrants that: 

1. The Foreign Lender is the sole record owner of the Loans as well as any obligations evidenced by any Note(s) in respect of which it is
providing this certificate; 
 2. The Foreign Lender’s direct or indirect partners/members are the sole beneficial owners of the Loans
as well as any obligations evidenced by any Note(s) in respect of which it is providing this certificate; 
 3. Neither the
Foreign Lender nor its direct or indirect partners/members is a “bank” for purposes of Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended (the “Code”). In this regard, the Foreign Lender
further represents and warrants that: 
 (a) neither the Foreign Lender nor its direct or indirect partners/members is subject
to regulatory or other legal requirements as a bank in any jurisdiction; and 
 (b) neither the Foreign Lender nor its direct or indirect
partners/members has been treated as a bank for purposes of any tax, securities law or other filing or submission made to any Governmental Authority, any application made to a rating agency or qualification for any exemption from tax, securities law
or other legal requirements; 
 3. Neither the Foreign Lender nor its direct or indirect partners/members is a 10-percent shareholder of
Borrower within the meaning of Section 881(c)(3)(B) of the Code; and 
 4. Neither the Foreign Lender nor its direct or indirect
partners/members is a controlled foreign corporation receiving interest from a related person within the meaning of Section 881(c)(3)(C) of the Code. 

[Signature follows] 

  
 Exhibit D-1 








 IN WITNESS WHEREOF, the undersigned has caused this certificate to be duly executed and delivered
as of the date indicated below. 
  

			
	[NAME OF NON-U.S. LENDER]
		
	By	 	  

		 	Name:
		 	Title:
		
	Date:	 	  



  
 Exhibit D-2 








 Exhibit E 

to Term Loan Agreement 
 FORM
OF COMPLIANCE CERTIFICATE 
 [DATE] 

This certificate is delivered pursuant to Section 8.01(c) of, and in connection with the consummation of the transactions
contemplated in, the Term Loan Agreement, dated as of April 4, 2014 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), among Tandem Diabetes
Care, Inc., a Delaware corporation (“Borrower”), Capital Royalty Partners II L.P., Capital Royalty Partners II – Parallel Fund “A” L.P., Parallel Investment Opportunities Partners II L.P., Capital
Royalty Partners II (Cayman) L.P. and other parties from time to time party thereto as lenders (“Lenders”), and the subsidiary guarantors from time to time party thereto. Capitalized terms used herein and not
otherwise defined herein are used herein as defined in the Loan Agreement. 
 The undersigned, a duly authorized Responsible
Officer of Borrower having the name and title set forth below under his signature, hereby certifies, on behalf of the Borrower for the benefit of the Lenders and pursuant to Section 8.01(c) of the Loan Agreement that such Responsible
Officer of the Borrower is familiar with the Loan Agreement and that, in accordance with each of the following sections of the Loan Agreement, each of the following is true on the date hereof, both before and after giving effect to any Loan to be
made on or before the date hereof: 
 In accordance with Section 8.01[(a)/(b)] of the Loan Agreement, attached
hereto as Annex A are the financial statements for the [fiscal quarter/fiscal year] ended [            ] required to be delivered pursuant to Section 8.01[(a)/(b)]
of the Loan Agreement. Such financial statements fairly present in all material respects the consolidated financial position, results of operations and cash flow of the Borrower and its Subsidiaries as at the dates indicated therein and for the
periods indicated therein in accordance with GAAP [(subject to the absence of footnote disclosure and normal year-end audit adjustments)]4 [without qualification as to the scope of the audit.]5 
 Attached hereto as Annex B are the calculations used to determine
compliance with each financial covenant contained in Section 10 of the Loan Agreement.  
 No Default is
continuing as of the date hereof[, except as provided for on Annex C attached hereto, with respect to each of which Borrower proposes to take the actions set forth on Annex C]. 

IN WITNESS WHEREOF, the undersigned has executed this certificate on the date first written above. 

 

	4 	Insert language in brackets only for quarterly certifications. 


	5 	Insert language in brackets only for annual certifications. 


  
 Exhibit E-1 








 
			
	TANDEM DIABETES CARE, INC.
		
	By	 	  

		 	Name:
		 	Title:



  
 Exhibit E-2 








 Annex A to Compliance Certificate 

FINANCIAL STATEMENTS 
 [see
attached] 

  
 Exhibit E-3 








 Annex B to Compliance Certificate 

CALCULATIONS OF FINANCIAL COVENANT COMPLIANCE 
  

					
	I.	  	Section 10.01(a)(i)-(vi): Minimum Revenue	  	
	A.	  	Revenue received during the twelve month period beginning on January 1, 2014:	  	$__________
		  	Test Period: January 1, 2014 to December 31, 2014	  	
		  	Is line I.A equal to or greater than $30,000,000?	  	Yes: In compliance; No: Not in compliance
	B.	  	Revenue received during the twelve month period beginning on January 1, 2015:	  	$__________
		  	Test Period: January 1, 2015 to December 31, 2015	  	
		  	Is line I.B equal to or greater than $50,000,000?	  	Yes: In compliance; No: Not in compliance
	C.	  	Revenue received during the twelve month period beginning on January 1, 2016:	  	$__________
		  	Test Period: January 1, 2016 to December 31, 2016	  	
		  	Is line I.C equal to or greater than $65,000,000?	  	Yes: In compliance; No: Not in compliance
	D.	  	Revenue received during the twelve month period beginning on January 1, 2017:	  	$__________
		  	Test Period: January 1, 2017 to December 31, 2017	  	
		  	Is line I.D equal to or greater than $80,000,000?	  	Yes: In compliance; No: Not in compliance
	E.	  	Revenue received during the twelve month period beginning on January 1, 2018:	  	$__________
		  	Test Period: January 1, 2018 to December 31, 2018	  	
		  	Is line I.D equal to or greater than $95,000,000?	  	Yes: In compliance; No: Not in compliance
	F.	  	Revenue received during the twelve month period beginning on January 1, 201    	  	$__________
		  	Test Period: January 1, 201     to December 31, 201    	  	
		  	Is line I.E equal to or greater than $95,000,000?	  	Yes: In compliance; No: Not in compliance

  

					
	II	  	Section 10.03: Minimum Cash	  	
	A.	  	Amount of unencumbered cash and Permitted Cash Equivalent Investments (which for greater certainty shall not include any undrawn credit lines), in each case, to the extent held in an account over which the Lenders have a first
priority perfected security interest:	  	$__________
	B.	  	The greater of:	  	$__________
		  	 (1)    $2,000,000 and
	  	
		  	 (2)    to the extent Borrower has incurred Permitted Priority
	  	


  
 Exhibit E-4 









					
		  	 Debt, the minimum cash balance required of Borrower by Borrower’s Permitted Priority Debt creditors
	  	
		  	Is Line IIA equal to or greater than Line IIB?:	  	Yes: In compliance; No: Not in compliance


  
 Exhibit E-5