Document:

Exhibit 10.20

 

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (“Agreement”) is made as of [·], 2015 by and between ConforMIS, Inc., a Delaware corporation (the “Company”), and [·] (the “Indemnitee”). This Agreement supersedes and replaces any and all previous Agreements between the Company and Indemnitee covering the subject matter of this Agreement.

 

RECITALS

 

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors, officers or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Certificate of Incorporation of the Company (as the same may be amended from time to time, the “Certificate of Incorporation”) requires indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the “DGCL”). The Certificate of Incorporation and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the Board, officers and other persons with respect to indemnification;

 

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

 

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

 

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

 

 

WHEREAS, this Agreement is a supplement to and in furtherance of the Certificate of Incorporation and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

 

WHEREAS, Indemnitee does not regard the protection available under the Certificate of Incorporation and insurance as adequate in the present circumstances, and may not be willing to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified; and

 

[WHEREAS, Indemnitee is a representative of [·] [and its affiliated investment funds] (the “Fund”), and has certain rights to indemnification and/or insurance provided by the Fund which Indemnitee and the Fund intend to be secondary to the primary obligation of the Company to indemnify Indemnitee as provided herein, with the Company’s acknowledgement and agreement to the foregoing being a material condition to Indemnitee’s willingness to serve on the Board;](1)

 

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

 

Section 1.                                           Services to the Company. Indemnitee agrees to serve as a[n] [director] [officer] of the Company. Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee. Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director or officer of the Company, by the Certificate of Incorporation, the Company’s Bylaws, and the DGCL. The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as a[n] [director] [officer] of the Company, as provided in Section 16 hereof.

 

Section 2.                                           Definitions. As used in this Agreement:

 

(a)                                 References to “agent” shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

 

(1)  Include this WHEREAS clause and the other bracketed provisions throughout if the Indemnitee is affiliated with an investment fund or other entity that provides indemnification to the Indemnitee.

 

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(b)                                 A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

 

i.                                          Acquisition of Stock by Third Party. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing thirty-five percent (35%) or more of the combined voting power of the Company’s then outstanding securities unless the change in relative Beneficial Ownership of the Company’s securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors;

 

ii.                                       Change in Board of Directors. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

 

iii.                                    Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its ultimate parent, as applicable) more than 51% of the combined voting power of the voting securities of the surviving entity or its ultimate parent, as applicable, outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity or its ultimate parent, as applicable;

 

iv.                                   Liquidation or Sale of Assets. The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and

 

v.                                      Other Events. There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement.

 

For purposes of this Section 2(b), the following terms shall have the following meanings:

 

(A)                               “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended from time to time.

 

(B)                               “Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, 

 

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that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

 

(C)                               “Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger of the Company with another entity.

 

(c)                                  “Corporate Status” describes the status of a person as a current or former director or officer of the Company or as a current or former director, manager, partner, officer, employee, agent, or trustee of any other entity or enterprise that such person is or was serving at the request of the Company.

 

(d)                                 “Disinterested Director” shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(e)                                  “Enterprise” shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, agent or fiduciary.

 

(f)                                   “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 14(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise. The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be reasonable. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

 

(g)                                  “Independent Counsel” shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years

 

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has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

 

(h)                                 The term “Proceeding” shall include any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him (or a failure to take action by him) or of any action (or failure to act) on his part while acting pursuant to his Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this paragraph.

 

(i)                                     Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in this Agreement.

 

Section 3.                                           Indemnity in Third-Party Proceedings. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in

 

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the case of a criminal Proceeding had no reasonable cause to believe that his conduct was unlawful. The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Certificate of Incorporation, the Bylaws, vote of its stockholders or disinterested directors or applicable law.

 

Section 4.                                           Indemnity in Proceedings by or in the Right of the Company. The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery (the “Delaware Court”) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the Delaware Court shall deem proper.

 

Section 5.                                           Indemnification for Expenses of a Party Who is Wholly or Partly Successful. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

Section 6.                                           Indemnification For Expenses of a Witness. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of his Corporate Status, a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

 

Section 7.                                           Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

 

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Section 8.                                           Additional Indemnification.

 

(a)                                 Notwithstanding any limitation in Sections 3, 4, or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.

 

(b)                                 For purposes of Section 8(a), the meaning of the phrase “to the fullest extent permitted by applicable law” shall include, but not be limited to:

 

i.                                          to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and

 

ii.                                       to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

 

Section 9.                                           Exclusions. Notwithstanding any provision in this Agreement [but subject to Section 15(e), however], the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any claim made against Indemnitee:

 

(a)                                 for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

 

(b)                                 for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as defined in Section 2(b) hereof) or similar provisions of state statutory law or common law, or (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

 

(c)                                  except as provided in Section 14(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

 

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Section 10.                                    Advances of Expenses. Notwithstanding any provision of this Agreement to the contrary (other than Section 14(d)), the Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee, and such advancement shall be made within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. In accordance with Section 14(d), advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. No other form of undertaking shall be required other than the execution of this Agreement. This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 9.

 

Section 11.                                    Procedure for Notification and Defense of Claim.

 

(a)                                 Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. The omission by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

 

(b)                                 The Company will be entitled to participate in the Proceeding at its own expense.

 

Section 12.                                    Procedure Upon Application for Indemnification.

 

(a)                                 Upon written request by Indemnitee for indemnification pursuant to Section 11(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the

 

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Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied.

 

(b)                                 In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be selected as provided in this Section 12(b). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit. If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 11(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 12(a) hereof. Upon the due

 

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commencement of any judicial proceeding or arbitration pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

 

Section 13.                                    Presumptions and Effect of Certain Proceedings.

 

(a)                                 In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 11(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

 

(b)                                 Subject to Section 14(e), if the person, persons or entity empowered or selected under Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 13(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 12(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 12(a) of this Agreement.

 

(c)                                  The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent,

 

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shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.

 

(d)                                 For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise. The provisions of this Section 13(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

 

(e)                                  The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

 

Section 14.                                    Remedies of Indemnitee.

 

(a)                                 Subject to Section 14(e), in the event that (i) a determination is made pursuant to Section 12 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 12(a) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5, 6 or 7 or the last sentence of Section 12(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3, 4 or 8 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

 

(b)                                 In the event that a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that

 

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adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 14, the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

(c)                                  If a determination shall have been made pursuant to Section 12(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

 

(d)                                 The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder. The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

 

(e)                                  Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

 

Section 15.                                    Non-exclusivity; Survival of Rights; Insurance; Subrogation.

 

(a)                                 The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Certificate of Incorporation and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this

 

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Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

 

(b)                                 The Company shall maintain directors’ and officers’ insurance programs (“D&O Insurance”) providing coverage to Indemnitee for Expenses during the time period Indemnitee serves the Company in a Corporate Status, and for a period of no less than six years following the conclusion of such service.  Notwithstanding any other provisions of this Agreement, the Company, subject to the approval of the Board, shall have no obligation to obtain or maintain D&O Insurance if the Company determines in good faith that: such insurance is not reasonably available; the premium costs for such insurance are disproportionate to the amount of coverage provided; the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit; the Company is to be acquired and a tail policy of reasonable terms and duration is purchased for pre-closing acts or omissions by the Indemnitee; or the Company is to be acquired and D&O Insurance will be maintained by the acquirer that covers pre-closing acts and omissions by the Indemnitee. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies.

 

(c)                                  In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee [(other than any rights of recovery of Indemnitee from a Fund Indemnitor or under any insurance provided by the Fund or its affiliates)], who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

 

(d)                                 [Except as provided for under Section 15(e) of this Agreement, the] [The] Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

 

(e)                                  [The Company hereby acknowledges that Indemnitee has certain rights to indemnification, advancement of expenses and/or insurance provided by the Fund and certain of its affiliates (collectively, the “Fund Indemnitors”). The Company hereby agrees (i) that it is the indemnitor of first resort (i.e., its obligations to Indemnitee are primary and any obligation of the Fund Indemnitors to advance expenses or to provide indemnification for the same expenses or liabilities incurred by Indemnitee are secondary), (ii) that it shall be required to advance the full amount of Expenses incurred by Indemnitee and shall be liable for the full amount of all Expenses,

 

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judgments, penalties, fines and amounts paid in settlement to the extent legally permitted and as required by the Certificate of Incorporation or Bylaws (or any agreement between the Company and Indemnitee), without regard to any rights Indemnitee may have against the Fund Indemnitors, and, (iii) that it irrevocably waives, relinquishes and releases the Fund Indemnitors from any and all claims against the Fund Indemnitors for contribution, subrogation or any other recovery of any kind in respect thereof. The Company further agrees that no advancement or payment by the Fund Indemnitors on behalf of Indemnitee with respect to any claim for which Indemnitee has sought indemnification from the Company shall affect the foregoing and the Fund Indemnitors shall have a right of contribution and/or be subrogated to the extent of such advancement or payment to all of the rights of recovery of Indemnitee against the Company. The Company and Indemnitee agree that the Fund Indemnitors are express third party beneficiaries of the terms hereof.]

 

Section 16.                                    Duration of Agreement. This Agreement shall continue during the period Indemnitee serves as a director or officer of the Company or as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee serves at the request of the Company and shall continue thereafter so long as Indemnitee may be subject to any possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 14 of this Agreement [or by a Fund Indemnitor pursuant to Section 15(e) of this Agreement ]) by reason of his Corporate Status, whether or not he is acting in any such capacity at the time any liability or expense is incurred for which indemnification can be provided under this Agreement. The indemnification and advancement of expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

 

Section 17.                                    Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

 

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Section 18.                                    Enforcement.

 

(a)                                 The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

 

(b)                                 This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

 

Section 19.                                    Modification and Waiver. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

 

Section 20.                                    Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise.

 

Section 21.                                    Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) mailed by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received:

 

(a)                                 If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.

 

(b)                                 If to the Company to:

 

ConforMIS, Inc.
 28 Crosby Drive
 Bedford, MA 01730
 Attention: General Counsel

 

or to any other address as may have been furnished to Indemnitee by the Company.

 

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Section 22.                                    Contribution. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company, on the one hand, and Indemnitee, on the other hand, as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its other directors, officers, employees and agents), on the one hand, and Indemnitee, on the other hand, in connection with such event(s) and/or transaction(s).

 

Section 23.                                    Applicable Law and Consent to Jurisdiction. This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Incorporating Services Ltd. as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

 

Section 24.                                    Identical Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

 

Section 25.                                    Miscellaneous. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

 

[The remainder of this page is intentionally left blank.]

 

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The parties executed this Agreement as of the day and year first set forth above.

 

 

	
CONFORMIS, INC.
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
Name:
    	
 
    
	
Office:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
INDEMNITEE
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
Name:
    	
 
    
	
 
    	
 
    
	
Address:Exhibit 10.21

 

LOAN AND SECURITY AGREEMENT

 

THIS LOAN AND SECURITY AGREEMENT (as the same may from time to time be amended, modified, supplemented or restated, this “Agreement”) dated as of November 7, 2014 (the “Effective Date”) among SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time including SVB in its capacity as a Lender and OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”) (each a “Lender” and collectively, the “Lenders”), CONFORMIS, INC., a Delaware corporation (“ConforMIS”) and IMATX, INC., a Delaware corporation (“ImaTx” and individually, collectively, jointly and severally with ConforMIS, “Borrower”), each, with offices located at 28 Crosby Drive, Bedford, MA 01730, provides the terms on which the Lenders shall lend to Borrower and Borrower shall repay the Lenders.  The parties agree as follows:

 

1.                                      ACCOUNTING AND OTHER TERMS

 

1.1                               Accounting terms not defined in this Agreement shall be construed in accordance with GAAP.  Calculations and determinations must be made in accordance with GAAP.  Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13.  All other terms contained in this Agreement, unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.  All references to “Dollars” or “$” are United States Dollars, unless otherwise noted.

 

2.                                      LOANS AND TERMS OF PAYMENT

 

2.1                               Promise to Pay.  Borrower hereby unconditionally promises to pay each Lender, the outstanding principal amount of all Credit Extensions advanced to Borrower by such Lender and accrued and unpaid interest thereon and any other amounts due hereunder as and when due in accordance with this Agreement.

 

2.1.1                     Advances.

 

(a)                                 Availability.  Subject to the terms and conditions of this Agreement and to deduction of Reserves, Bank shall make Advances not exceeding the Availability Amount.  Amounts borrowed hereunder may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, without penalty or premium, subject to the applicable terms and conditions precedent herein.  If, at any time, the outstanding principal amount of any Advances exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess.

 

(b)                                 Termination; Repayment.  The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable.  Borrower may terminate the Revolving Line by (i) providing written notice to Bank of Borrower’s election to terminate the Revolving Line at least three (3) Business Days prior to such termination, and (ii) paying to Bank, on the date of such termination (A) all outstanding Advances plus accrued and unpaid interest thereon, (B) the Termination Fee pursuant to Section 12.1, (C) any unpaid portion of the Revolving Loan Fee and (D) any other sums that shall have become due and payable with respect to the Advances, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.

 

2.1.2                     Term Loans.

 

(a)                                 Availability.

 

(i)                                     Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to Borrower on the Effective Date in an aggregate amount of Ten Million Dollars ($10,000,000.00) according to each Lender’s Term A Loan Commitment as set forth on Schedule 1.1 hereto (the “Term A Loan”).  After repayment, the Term A Loan may not be re-borrowed.

 

 

(ii)                                  Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Draw Period, to make an additional term loan to Borrower in an aggregate amount of Ten Million Dollars ($10,000,000.00) according to each Lender’s Term B Loan Commitment as set forth on Schedule 1.1 hereto (the “Term B Loan”; the Term A Loan and the Term B Loan are hereinafter referred to collectively as the “Term Loans”).  After repayment, the Term B Loan may not be re-borrowed.

 

(b)                                 Repayment.  Borrower shall make monthly payments of interest only in arrears commencing on the first (1st) Payment Date following the Funding Date of each Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date.  Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make consecutive equal monthly payments of principal and interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon:  (1) the amount of such Lender’s Term Loan, (2) the effective rate of interest, as determined in Section 2.2(a), and (3) a repayment schedule equal to (i) thirty-six (36) months if Borrower has not achieved the Revenue Milestone or (ii) twenty-four (24) months if Borrower has achieved the Revenue Milestone.  All unpaid principal and accrued and unpaid interest with respect to each Term Loan is due and payable in full on the Term Loan Maturity Date.  Each Term Loan may only be prepaid in accordance with Sections 2.1.2(c) and 2.1.2(d).

 

(c)                                  Mandatory Prepayments.  If the Term Loans are accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Lenders, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of:  (i) all outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (ii) the Final Payment, (iii) the Prepayment Fee, plus (iv) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.  Notwithstanding (but without duplication with) the foregoing, on the Term Loan Maturity Date, if the Final Payment had not previously been paid in full in connection with the prepayment of the Term Loans in full, Borrower shall pay to Collateral Agent, for payment to each Lender in accordance with its respective Pro Rata Share, the Final Payment in respect of the Term Loan(s).

 

(d)                                 Permitted Prepayment of Term Loans.  Borrower shall have the option to prepay all, but not less than all, of the Term Loans advanced by the Lenders under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least ten (10) days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.

 

2.2                               Payment of Interest on the Credit Extensions.

 

(a)                                 Interest Rate.

 

(i)                                     Advances.  Subject to Section 2.2(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly in arrears on the first day of each month.

 

(ii)                                  Term Loans.  Subject to Section 2.2(b), the principal amount outstanding under the Term Loans shall accrue interest at per annum rate (which rate shall be fixed for the duration of the applicable Term Loan on the Funding Date of such Term Loan) equal to four percentage points (4.00%) above the Prime Rate, which interest shall be payable monthly in arrears in accordance with Sections 2.1.2(b) and 2.2(e).  Interest shall accrue on each Term Loan commencing on, and including, the Funding Date of such Term Loan, and shall accrue on the principal amount outstanding under such Term Loan through and including the day on which such Term Loan is paid in full.

 

(b)                                 Default Rate.  Immediately upon the occurrence and during the continuance of an Event of Default, Obligations shall accrue interest at a fixed per annum rate equal to the rate that is otherwise applicable thereto plus five percentage points (5.00%) (the “Default Rate”).  Payment or acceptance of the increased interest 

 

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rate provided in this Section 2.2(b) is not a permitted alternative to timely payment and shall not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Collateral Agent.

 

(c)                                  360-Day Year.  Interest shall be computed on the basis of a three hundred sixty (360) day year consisting of twelve (12) months of thirty (30) days.

 

(d)                                 Debit of Accounts.  Collateral Agent and each Lender may debit (or ACH) any deposit accounts, maintained by Borrower or any of its Subsidiaries, including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes the Lenders under the Loan Documents when due.  Any such debits (or ACH activity) shall not constitute a set-off.

 

(e)                                  Payments.  Except as otherwise expressly provided herein, all payments by Borrower under the Loan Documents shall be made to the respective Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein.  Unless otherwise provided, interest is payable monthly on the Payment Date of each month.  Payments of principal and/or interest received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day.  When a payment is due on a day that is not a Business Day, the payment is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid.  All payments to be made by Borrower hereunder or under any other Loan Document, including payments of principal and interest, and all fees, expenses, indemnities and reimbursements, shall be made without set-off, recoupment or counterclaim, in lawful money of the United States and in immediately available funds.

 

2.3                               Secured Promissory Notes.  The Advances and the Term Loans shall be evidenced by a Secured Promissory Note or Notes in the form attached as Exhibit D hereto (each a “Secured Promissory Note”), and shall be repayable as set forth in this Agreement.  Borrower irrevocably authorizes each Lender to make or cause to be made, on or about the Funding Date of any Advance or Term Loan or at the time of receipt of any payment of principal on such Lender’s Secured Promissory Note, an appropriate notation on such Lender’s Secured Promissory Note Record reflecting the making of such Advance or Term Loan or (as the case may be) the receipt of such payment.  The outstanding amount of each Advance and each Term Loan set forth on such Lender’s Secured Promissory Note Record shall be prima facie evidence of the principal amount thereof owing and unpaid to such Lender, but the failure to record, or any error in so recording, any such amount on such Lender’s Secured Promissory Note Record shall not limit or otherwise affect the obligations of Borrower under any Secured Promissory Note or any other Loan Document to make payments of principal of or interest on any Secured Promissory Note when due.  Upon receipt of an affidavit of an officer of a Lender as to the loss, theft, destruction, or mutilation of its Secured Promissory Note (and customary indemnification by the Lender), Borrower shall issue, in lieu thereof, a replacement Secured Promissory Note in the same principal amount thereof and of like tenor.

 

2.4                               Fees.  Borrower shall pay to Collateral Agent:

 

(a)                                 Revolving Loan Fee.  A fully earned, nonrefundable loan fee of Two Hundred Fifty Thousand Dollars ($250,000.00) (solely for the account of Bank), payable in increments equal to Fifty Thousand Dollars ($50,000.00) on the Effective Date and each anniversary thereof (the “Revolving Loan Fee”), subject to prepayment in accordance with Section 2.1.1(b);

 

(b)                                 Termination Fee.  The Termination Fee (solely for the account of Bank), when due hereunder;

 

(c)                                  Final Payment.  The Final Payment, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares;

 

(d)                                 Prepayment Fee.  The Prepayment Fee, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares;

 

(e)                                  Good Faith Deposit.  Borrower has paid Lenders a good faith deposit of Fifty Thousand Dollars ($50,000.00).  The good faith deposit will be applied towards Lenders Expenses for the documentation and 

 

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negotiation of this Agreement.  Any portion of the Good Faith Deposit not utilized to pay Lenders Expenses will be applied to the Revolving Loan Fee on the Effective Date; and

 

(f)                                   Lenders’ Expenses.  All Lenders’ Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this Agreement) incurred through and after the Effective Date, when due.

 

(g)                                  Fees Fully Earned.  Unless otherwise provided in this Agreement or in a separate writing by Lenders, Borrower shall not be entitled to any credit, rebate, or repayment of any fees earned by Lenders pursuant to this Agreement notwithstanding any termination of this Agreement or the suspension or termination of Lenders’ obligation to make loans and advances hereunder.

 

2.5                               Withholding.  Payments received by the Lenders from Borrower hereunder will be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority (including any interest, additions to tax or penalties applicable thereto) (“Taxes”).  Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to the Lenders, Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, each Lender receives a net sum equal to the sum which it would have received had no withholding or deduction been required and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority; provided, however, Borrower shall not be required to pay any additional amount to any Lender with respect to Excluded Taxes.  Borrower will, upon request, furnish the Lenders with proof reasonably satisfactory to the Lenders indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower.  The agreements and obligations of Borrower contained in this Section 2.5 shall survive the termination of this Agreement.  On the date of this Agreement, each Lender shall deliver to Borrower a complete and properly executed IRS Form W-9.  If any assignee of a Lender’s rights under Section 12.2 of this Agreement is not a “United States Person” as defined in Section 7701(a)(30) of the IRC (“Non-U.S. Lender”), such Non-U.S. Lender shall, upon becoming party to this Agreement, deliver to Borrower a complete and properly executed IRS Form W-8BEN, W-8ECI or W-8IMY, as appropriate, or any successor form prescribed by the IRS, certifying that such Non-U.S. Lender is entitled to an exemption from U.S. withholding tax on interest and other amounts payable under this Agreement.  Notwithstanding the foregoing, (i) Borrower shall not be required to pay any additional amount to any Non-U.S. Lender hereunder if such Non-U.S. Lender fails or is unable to deliver the forms, certificates or other evidence described in the preceding sentence, unless such non-U.S. Lender’s failure or inability to deliver such forms is the result of any change in any applicable law, treaty or governmental rule, or any change in the interpretation thereof after such Non-U.S. Lender became a party to this Agreement and (ii) Borrower shall not be required to pay any additional amount to any Non-U.S. Lender hereunder with respect to taxes imposed under Sections 1471 through 1474 of the Internal Revenue Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof.

 

3.                                      CONDITIONS OF LOANS

 

3.1                               Conditions Precedent to Initial Credit Extension.  Each Lender’s obligation to make the initial Credit Extension is subject to the condition precedent that Collateral Agent and each Lender shall consent to or shall have received, in form and substance satisfactory to Collateral Agent and each Lender, such documents, and completion of such other matters, as Collateral Agent and each Lender may reasonably deem necessary or appropriate, including, without limitation:

 

(a)                                 original Loan Documents, each duly executed by Borrower and each Subsidiary, as applicable;

 

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(b)                                 duly executed original Control Agreements with respect to any Collateral Accounts maintained by Borrower as required under Section 6.6;

 

(c)                                  duly executed original Secured Promissory Notes in favor of each Lender according to its Term A Loan Commitment Percentage;

 

(d)                                 the certificate(s) for the Shares, together with Assignment(s) Separate from Certificate, duly executed in blank;

 

(e)                                  the Operating Documents and good standing certificates of Borrower certified by the Secretary of State (or equivalent agency) of Borrower’s jurisdiction of organization or formation and each jurisdiction in which Borrower is qualified to conduct business, each as of a date no earlier than thirty (30) days prior to the Effective Date;

 

(f)                                   a completed Perfection Certificate for Borrower and each of its Subsidiaries;

 

(g)                                  the Annual Projections, for the current calendar year;

 

(h)                                 duly executed original officer’s certificate for Borrower and each Subsidiary that is a party to the Loan Documents, relating to Operating Documents, corporate authorizations and other matters, in a form reasonably acceptable to Collateral Agent and the Lenders;

 

(i)                                     certified copies, dated as of date no earlier than thirty (30) days prior to the Effective Date, of financing statement searches, as Collateral Agent shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit Extension, will be terminated or released;

 

(j)                                    a landlord’s consent executed in favor of Collateral Agent in respect of (i) 28 Crosby Drive, Bedford, MA 01730 and (ii) 11 North Avenue, Burlington, MA 01803;

 

(k)                                 a bailee waiver executed in favor of Collateral Agent in respect of each third party bailee where Borrower maintains Collateral (other than Transitory Collateral) having a book value in excess of Two Hundred Fifty Thousand Dollars ($250,000.00);

 

(l)                                     a duly executed legal opinion of counsel to Borrower dated as of the Effective Date;

 

(m)                             a copy of any applicable Registration Rights Agreement or Investors’ Rights Agreement and any amendments thereto;

 

(n)                                 evidence satisfactory to Collateral Agent and the Lenders that the insurance policies required by Section 6.6 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable benefit of the Lenders; and

 

(o)                                 payment of the fees and Lenders’ Expenses then due as specified in Section 2.4 hereof.

 

3.2                               Conditions Precedent to all Credit Extensions.  The obligation of each Lender to make each Credit Extension, including the initial Credit Extension, is subject to the following conditions precedent:

 

(a)                                 receipt by (i) the Lenders of an executed Disbursement Letter in the form of Exhibit B-1 attached hereto; and (ii) SVB of an executed (x) Loan Payment/Advance Request Form in the form of Exhibit B-2 attached hereto; and (y) Transaction Report;

 

(b)                                 the representations and warranties in Section 5 hereof shall be true, accurate and complete in all material respects on the date of the Disbursement Letter (and the Loan Payment/Advance Request 

 

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Form) and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no Event of Default shall have occurred and be continuing or result from the Credit Extension.  Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in Section 5 hereof are true, accurate and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date;

 

(c)                                  in such Lender’s sole discretion, there has not been any Material Adverse Change or any material adverse deviation by Borrower from the Annual Projections of Borrower presented to and accepted by Collateral Agent and each Lender;

 

(d)                                 with respect to each Term Loan, to the extent not delivered at the Effective Date, duly executed original Secured Promissory Notes and Warrant, in number and amounts and in form and content acceptable to each Lender, and in favor of each Lender according to its Commitment Percentage, with respect to each Term Loan made by such Lender after the Effective Date; and

 

(e)                                  payment of the fees and Lenders’ Expenses then due as specified in Section 2.4 hereof.

 

3.3                               Covenant to Deliver.  Borrower agrees to deliver to Collateral Agent and the Lenders each item required to be delivered to Collateral Agent under this Agreement as a condition precedent to any Credit Extension.  Borrower expressly agrees that a Credit Extension made prior to the receipt by Collateral Agent or any Lender of any such item shall not constitute a waiver by Collateral Agent or any Lender of Borrower’s obligation to deliver such item, and any such Credit Extension in the absence of a required item shall be made in each Lender’s sole discretion.

 

3.4                               Procedures for Borrowing.

 

(a)                                 Advances.  Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this Agreement, to obtain an Advance, Borrower shall notify Bank by electronic mail, facsimile, or telephone by 12:00 p.m. Pacific time on the Funding Date of the Advance.  Together with such notification, Borrower must promptly deliver to Bank by electronic mail or facsimile a completed Transaction Report executed by a Responsible Officer or his or her designee.  Bank shall credit Advances to the Designated Deposit Account.  Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due.  Bank may rely on any telephone notice given by a person whom Bank reasonably believes is a Responsible Officer or designee.  Borrowers shall indemnify Bank for any loss Bank suffers due to such reliance

 

(b)                                 Term Loans.  Subject to the prior satisfaction of all other applicable conditions to the making of a Term Loan set forth in this Agreement, to obtain a Term Loan, Borrower shall notify the Lenders (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 noon Pacific time three (3) Business Days prior to the date the Term Loan is to be made.  Together with any such electronic, facsimile or telephonic notification, Borrower shall deliver to the Lenders by electronic mail or facsimile a completed Disbursement Letter (and the Loan Payment/Advance Request Form, with respect to SVB) executed by a Responsible Officer or his or her designee.  The Lenders may rely on any telephone notice given by a person whom a Lender reasonably believes is a Responsible Officer or designee.  On the Funding Date, each Lender shall credit and/or transfer (as applicable) to the Designated Deposit Account, an amount equal to its Term Loan Commitment.

 

4.                                      CREATION OF SECURITY INTEREST

 

4.1                               Grant of Security Interest.  Borrower hereby grants Collateral Agent, for the ratable benefit of the Lenders, and to each Lender to secure the payment and performance in full of all of the Obligations, a continuing 

 

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security interest in, and pledges to Collateral Agent, for the ratable benefit of the Lenders, and to each Lender, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof.  Borrower represents, warrants, and covenants that the security interest granted herein is and shall at all times continue to be a first priority perfected security interest in the Collateral, subject only to Permitted Liens that are permitted by the terms of this Agreement to have priority to Collateral Agent’s or each Lender’s Lien.  If Borrower shall acquire a commercial tort claim (as defined in the Code), Borrower, shall promptly notify Collateral Agent in a writing signed by Borrower, as the case may be, of the general details thereof (and further details as may be required by Collateral Agent) and grant to Collateral Agent, for the ratable benefit of the Lenders, and to each Lender, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory to Collateral Agent.

 

Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank.  Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that may have superior priority to Bank’s Lien in this Agreement).

 

If this Agreement is terminated, Collateral Agent’s and each Lender’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash.  Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as the Lenders’ obligation to make Credit Extensions has terminated, Collateral Agent and each Lender shall, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower.  In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral reasonably acceptable to Bank consistent with Bank’s then current practice for Bank Services, if any.  In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit.

 

4.2                               Authorization to File Financing Statements.  Borrower hereby authorizes Collateral Agent and Lenders to file financing statements or take any other action required to perfect Collateral Agent’s and each Lender’s security interests in the Collateral, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Collateral Agent’s and each Lender’s interest or rights under the Loan Documents, including a notice that any disposition of the Collateral, except to the extent permitted by the terms of this Agreement, by Borrower, or any other Person, shall be deemed to violate the rights of Collateral Agent or any Lender under the Code.

 

4.3                               Pledge of Collateral.  Borrower hereby pledges, assigns and grants to Collateral Agent, for the ratable benefit of the Lenders, and to each Lender, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations.  On the Effective Date, or, to the extent not certificated as of the Effective Date, within ten (10) Business Days of the certification of any Shares, the certificate or certificates for the Shares will be delivered to Collateral Agent and each Lender, accompanied by an instrument of assignment duly executed in blank by Borrower.  To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the pledge of the Shares.  Upon the occurrence and during the continuance of an Event of Default hereunder, Collateral Agent and Lenders may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Collateral Agent and Lenders and cause new (as applicable) certificates representing such securities to be issued in the name of Collateral Agent and Lenders or their transferees.  Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Collateral Agent and Lenders may reasonably request to perfect or continue the perfection of Collateral Agent’s and each Lender’s security interest in the Shares.  Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any voting rights 

 

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with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of any of such terms.  All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and during the continuance of an Event of Default.

 

5.                                      REPRESENTATIONS AND WARRANTIES

 

Borrower represents and warrants to Collateral Agent and the Lenders as follows at all times:

 

5.1                               Due Organization, Authorization: Power and Authority.  Borrower and each of its Subsidiaries is duly existing and in good standing as a Registered Organization in its jurisdictions of organization or formation and Borrower and each of its Subsidiaries is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its businesses or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a Material Adverse Change.  In connection with this Agreement, Borrower and each of its Subsidiaries has delivered to Collateral Agent a completed perfection certificate signed by an officer of Borrower or such Subsidiary (each a “Perfection Certificate” and collectively, the “Perfection Certificates”).  Borrower represents and warrants that (a) Borrower and each of its Subsidiaries’ exact legal name is that which is indicated on its respective Perfection Certificate and on the signature page of each Loan Document to which it is a party; (b) Borrower and each of its Subsidiaries is an organization of the type and is organized in the jurisdiction set forth on its respective Perfection Certificate; (c) each Perfection Certificate accurately sets forth each of Borrower’s and its Subsidiaries’ organizational identification number or accurately states that Borrower or such Subsidiary has none; (d) each Perfection Certificate accurately sets forth Borrower’s and each of its Subsidiaries’ place of business, or, if more than one, its chief executive office as well as Borrower’s and each of its Subsidiaries’ mailing address (if different than its chief executive office); (e) Borrower and each of its Subsidiaries (and each of its respective predecessors) have not, in the past five (5) years, changed its jurisdiction of organization, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) as of the Effective Date, all other information set forth on the Perfection Certificates pertaining to Borrower and each of its Subsidiaries, is accurate and complete (it being understood and agreed that Borrower and each of its Subsidiaries may from time to time update certain information in the Perfection Certificates (including the information set forth in clause (d) above) after the Effective Date to the extent expressly permitted by one or more specific provisions in this Agreement).  If Borrower or any of its Subsidiaries is not now a Registered Organization but later becomes one, Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such Person’s organizational identification number within five (5) Business Days of receiving such organizational identification number.

 

The execution, delivery and performance by Borrower and each of its Subsidiaries of the Loan Documents to which it is a party have been duly authorized, and do not (i) conflict with any of Borrower’s or such Subsidiaries’ organizational documents, including its respective Operating Documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law applicable thereto, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or such Subsidiary, or any of their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or are being obtained pursuant to Section 6.1(b), or (v) constitute an event of default under any material agreement by which Borrower or any of such Subsidiaries, or their respective properties, is bound.  Neither Borrower nor any of its Subsidiaries is in default under any agreement to which it is a party or by which it or any of its assets is bound in which such default could reasonably be expected to have a Material Adverse Change.

 

5.2                               Collateral.

 

(a)                                 Borrower and each its Subsidiaries have good title to, have rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted Liens, and except as permitted under Section 6.7, neither Borrower nor any of its Subsidiaries that are Guarantors or co-Borrowers have any Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts other than the Collateral Accounts or the other investment accounts, if any, 

 

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described in the Perfection Certificates delivered to Collateral Agent in connection herewith with respect of which Borrower or such Subsidiary has given Collateral Agent notice and taken such actions as are necessary to give Collateral Agent and each Lender a perfected security interest therein.  The Accounts are bona fide, existing obligations of the Account Debtors.

 

(b)                                 On the Effective Date, and except as disclosed on the Perfection Certificate (i) the Collateral (other than Transitory Collateral) is not in the possession of any third party bailee (such as a warehouse), and (ii) no such third party bailee possesses components of the Collateral in excess of Two Hundred Fifty Thousand Dollars ($250,000.00).  None of the components of the Collateral shall be maintained at locations other than as disclosed in the Perfection Certificates on the Effective Date or as permitted pursuant to Section 6.12.

 

(c)                                  All Inventory is in all material respects of good and marketable quality, free from material defects except for normal wear and tear.

 

(d)                                 Borrower and each of its Subsidiaries is the sole owner of the Intellectual Property each respectively purports to own, free and clear of all Liens other than Permitted Liens.  Except as noted on the Perfection Certificates, as of the date of this Agreement, neither Borrower nor any of its Subsidiaries is a party to, nor is bound by, any material license or other material agreement with respect to which Borrower or such Subsidiary is the licensee that (i) prohibits or otherwise restricts Borrower or its Subsidiaries from granting a security interest in Borrower’s or such Subsidiaries’ interest in such material license or material agreement or any other property, or (ii) for which a default under or termination of could reasonably be expected to interfere with Collateral Agent’s or any Lender’s right to sell any Collateral.  Borrower shall provide written notice to Collateral Agent and each Lender within ten (10) Business Days of Borrower or any of its Subsidiaries entering into or becoming bound by any material license or agreement with respect to which Borrower or any Subsidiary is the licensee of Intellectual Property (other than over-the-counter software that is commercially available to the public).

 

5.3                               Accounts Receivable; Inventory.

 

(a)                                 For each Account with respect to which Advances are requested, on the date each Advance is requested and made, such Account shall be an Eligible Account.

 

(b)                                 All statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing the Eligible Accounts are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s Books are genuine and in all respects what they purport to be.  After consultation with Borrower, Bank may notify any Account Debtor owing Borrower money of Collateral Agent and Lenders’ security interest in such funds and verify the amount of such Eligible Account.  All sales and other transactions underlying or giving rise to each Eligible Account shall comply in all material respects with all applicable laws and governmental rules and regulations.  Borrower has no knowledge of any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are Eligible Accounts in any Transaction Report.  To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms.

 

5.4                               Litigation.  Except as disclosed (i) on the Perfection Certificates, (ii) on the Compliance Certificate or (iii) in accordance with Section 6.11 hereof, there are no actions, suits, or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing, and Borrower has not received notice of any governmental investigations pending or threatened, by or against Borrower or any of its Subsidiaries, involving more than Five Hundred Thousand Dollars ($500,000.00).

 

5.5                               No Material Deterioration in Financial Condition; Financial Statements.  All consolidated financial statements for Borrower and its Subsidiaries, delivered to Collateral Agent fairly present, in conformity with GAAP, in all material respects the consolidated financial condition of Borrower and its Subsidiaries, and the consolidated results of operations of Borrower and its Subsidiaries.  There has not been any material deterioration in the consolidated financial condition of Borrower and its Subsidiaries since the date of the most recent financial statements submitted to any Lender.

 

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5.6                               Solvency.  Borrower and each of its Subsidiaries is Solvent.

 

5.7                               Regulatory Compliance.  Neither Borrower nor any of its Subsidiaries is an “investment company” or a company “controlled” by an “investment company” under the Investment Company Act of 1940, as amended.  Neither Borrower nor any of its Subsidiaries is engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).  Borrower and each of its Subsidiaries has complied in all material respects with the Federal Fair Labor Standards Act.  Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005.  Neither Borrower nor any of its Subsidiaries has violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a Material Adverse Change.  Neither Borrower’s nor any of its Subsidiaries’ properties or assets has been used by Borrower or such Subsidiary or, to Borrower’s knowledge, by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than in material compliance with applicable laws.  Borrower and each of its Subsidiaries has obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.

 

None of Borrower, any of its Subsidiaries, or any of Borrower’s or its Subsidiaries’ Affiliates or any of their respective agents acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any Anti-Terrorism Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law, or (iii) is a Blocked Person.  None of Borrower, any of its Subsidiaries, or to the knowledge of Borrower, any of their Affiliates or agents, acting or benefiting in any capacity in connection with the transactions contemplated by this Agreement, (x) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order or other Anti-Terrorism Law.

 

5.8                               Investments.  Neither Borrower nor any of its Subsidiaries owns any stock, shares, partnership interests or other equity securities except for Permitted Investments.

 

5.9                               Tax Returns and Payments; Pension Contributions.  Borrower and each of its Subsidiaries has timely filed all required tax returns and reports, and Borrower and each of its Subsidiaries, has timely paid all foreign, federal, state, and material local taxes, assessments, deposits and contributions owed by Borrower and such Subsidiaries, in all jurisdictions in which Borrower or any such Subsidiary is subject to taxes, including the United States, unless such taxes are being contested in accordance with the following sentence.  Borrower and each of its Subsidiaries, may defer payment of any contested taxes, provided that Borrower or such Subsidiary, (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien.” Neither Borrower nor any of its Subsidiaries is aware of any claims or adjustments proposed for any of Borrower’s or such Subsidiaries’, prior tax years which could reasonably be expected to result in additional taxes becoming due and payable by Borrower or its Subsidiaries.  Borrower and each of its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its Subsidiaries have, withdrawn from participation in, and have not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.

 

5.10                        Use of Proceeds.  Borrower shall use the proceeds of the Credit Extensions solely as working capital and to fund its general business requirements in accordance with the provisions of this Agreement, and not for personal, family, household or agricultural purposes.

 

5.11                        Shares.  Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement. 

 

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To Borrower’s knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares.  The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable.  To Borrower’s knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings.

 

5.12                        Full Disclosure.  No written representation, warranty or other statement of Borrower or any of its Subsidiaries in any certificate or written statement given to Collateral Agent or any Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates and written statements given to Collateral Agent or any Lender, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements not misleading (it being recognized that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).

 

5.13                        Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to Borrower’s knowledge or awareness, to the “best of Borrower’s knowledge, or with a similar qualification, knowledge or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.

 

6.                                      AFFIRMATIVE COVENANTS

 

Borrower shall, and shall cause each of its Subsidiaries to, do all of the following:

 

6.1                               Government Compliance.

 

(a)                                 Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of organization and maintain qualification in each jurisdiction in which the failure to so qualify could reasonably be expected to have a Material Adverse Change.  Comply with all laws, ordinances and regulations to which Borrower or any of its Subsidiaries is subject, the noncompliance with which could reasonably be expected to have a Material Adverse Change.

 

(b)                                 Obtain and keep in full force and effect, all of the Governmental Approvals necessary for the performance by Borrower and its Subsidiaries of their respective businesses and obligations under the Loan Documents and the grant of a security interest to Collateral Agent for the ratable benefit of the Lenders, and each Lender, in all of the Collateral.  Borrower shall promptly provide copies to Collateral Agent of any material Governmental Approvals obtained by Borrower or any of its Subsidiaries.

 

6.2                               Financial Statements, Reports, Certificates.

 

(a)                                 Deliver to each Lender:

 

(i)                                     as soon as available, but no later than (x) at all times prior to the IPO, thirty (30) days after the last day of each month and (y) at all times after the IPO, forty-five (45) days after the last day of each fiscal quarter, a company prepared consolidated and consolidating balance sheet, income statement and cash flow statement covering the consolidated operations of Borrower and its Subsidiaries for such month certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent; Notwithstanding anything in this Agreement to the contrary, the Borrower shall not be required to deliver consolidating financial information for any period prior to January 1, 2016, unless such financial information (including consolidating revenue figures by entity) is otherwise prepared by Borrower;

 

(ii)                                  as soon as available, but no later than one hundred eighty (180) days after the last day of Borrower’s fiscal year or within five (5) days of filing with the SEC, audited consolidated financial 

 

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statements prepared under GAAP, consistently applied, together with an unqualified opinion on the financial statements from Grant Thornton or another independent certified public accounting firm reasonably acceptable to Collateral Agent;

 

(iii)                               as soon as available after approval thereof by Borrower’s Board of Directors, but no later than March 31 of each year, Borrower’s annual financial projections (including an operating budget) for the entire current fiscal year as approved by Borrower’s Board of Directors, which such annual financial projections and budget shall be set forth in a month-by-month format (such annual financial projections and budget as originally delivered to Collateral Agent and the Lenders are referred to herein as the “Annual Projections”; provided that, any revisions of the Annual Projections approved by Borrower’s Board of Directors shall be delivered to Collateral Agent and the Lenders no later than ten (10) days after such approval and, unless Collateral Agent notifies Borrower to the contrary in writing within thirty (30) days after receipt thereof, the term “Annual Projections” shall include such revisions);

 

(iv)                              within thirty (30) days of approval by Borrower’s Board of Directors, any 409(a) valuations with respect to Borrower’s equity securities;

 

(v)                                 within five (5) days of delivery, copies of all material written statements, reports and notices made available generally to Borrower’s security holders or holders of Subordinated Debt;

 

(vi)                              in the event that Borrower becomes subject to the reporting requirements under the Securities Exchange Act of 1934, as amended, within five (5) days of filing, all reports on Form 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission,

 

(vii)                           prompt notice of (a) any amendments or other changes to the Operating Documents of Borrower or any of its Subsidiaries and (b) together with its monthly Compliance Certificate, notice of any material amendments of or other material changes to the capitalization table of Borrower or any of its Subsidiaries; and, at the request of Collateral Agent or any Lender, Borrower shall promptly provide to Collateral Agent and each Lender, copies of such amendments or changes with respect thereto;

 

(viii)                        prompt notice of any event that could reasonably be expected to materially and adversely affect the value of the Intellectual Property;

 

(ix)                              as soon as available, but no later than thirty (30) days after the last day of each month, copies of the month-end account statements for each Collateral Account maintained by Borrower or its Subsidiaries, which statements may be provided to Collateral Agent and each Lender by Borrower or directly from the applicable institution(s), and

 

(x)                                 other financial information as reasonably requested by Collateral Agent or any Lender.

 

Notwithstanding the foregoing, documents required to be delivered pursuant to the terms hereof (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 on which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the internet at Borrower’s website address.

 

(b)                                 Concurrently with the delivery of the financial statements specified in Section 6.2(a)(i) above but no later than (x) at all times prior to the IPO, thirty (30) days after the last day of each month and (y) at all times after the IPO, forty-five (45) days after the last day of each fiscal quarter, deliver to each Lender, a duly completed Compliance Certificate;

 

(c)                                  Deliver to Bank a Transaction Report (and any schedules related thereto), with (i) aged listings of accounts receivable and accounts payable (by invoice date), (ii) an inventory report, and (iii) a deferred revenue report (i) with each request for an Advance, (ii) no later than Friday of every other calendar week (i.e. biweekly) when a Streamline Period is not in effect, and (iii) within thirty (30) days after the end of each month when a Streamline Period is in effect;

 

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(d)                                 Concurrently with the Compliance Certificate delivered at any time on and after any change in GAAP after the Effective Date that recharacterizes the treatment of real estate leases or operating leases as capital leases, disclosure of Borrower’s total liabilities under real estate leases, operating leases and capital leases, respectively;

 

(e)                                  Keep proper books of record and account in accordance with GAAP in all material respects, in which full, true and correct entries shall be made of all dealings and transactions in relation to its business and activities.  Borrower shall, and shall cause each of its Subsidiaries to, allow, at the sole cost of Borrower, Collateral Agent or any Lender, during regular business hours upon reasonable prior notice (provided that no notice shall be required when an Event of Default has occurred and is continuing), to visit and inspect any of its properties, to examine and make abstracts or copies from any of its books and records, and to conduct a collateral audit and analysis of its operations and the Collateral.  Such audits shall be conducted no more often than once every year unless (and more frequently if) an Event of Default has occurred and is continuing.

 

6.3                               Accounts Receivable.

 

(a)                                 Schedules and Documents Relating to Accounts.  Borrower shall deliver to Bank transaction reports and schedules of collections, as provided in Section 6.2, on Bank’s standard forms; provided, however, that Borrower’s failure to execute and deliver the same shall not affect or limit the Collateral Agent or Lenders’ Liens and other rights in all of Borrower’s Accounts, nor shall Bank’s failure to advance or lend against a specific Account affect or limit Collateral Agent or Lenders’ Liens and other rights therein.  If requested by Bank, Borrower shall furnish Bank with copies (or, at Bank’s request, originals) of all contracts, orders, invoices, and other similar documents, and all shipping instructions, delivery receipts, bills of lading, and other evidence of delivery, for any goods the sale or disposition of which gave rise to such Accounts.  In addition, Borrower shall deliver to Bank, on its request, the originals of all instruments, chattel paper, security agreements, guarantees and other documents and property evidencing or securing any Accounts, in the same form as received, with all necessary endorsements, and copies of all credit memos.

 

(b)                                 Disputes.  Borrower shall promptly notify Bank of all disputes or claims relating to Accounts that are included in the then current Borrowing Base pursuant to the applicable Transaction Report.  Borrower may forgive (completely or partially), compromise, or settle any Account for less than payment in full, or agree to do any of the foregoing so long as, with respect to any Account currently included in the Borrowing Base, (i) Borrower does so in good faith, in a commercially reasonable manner, in the ordinary course of business, in arm’s-length transactions, and reports the same to Bank in the regular reports provided to Bank; (ii) no Event of Default has occurred and is continuing; and (iii) after taking into account all such discounts, settlements and forgiveness, the total outstanding Advances will not exceed the lesser of the Revolving Line or the Borrowing Base.

 

(c)                                  Collection of Accounts.  Borrower shall have the right to collect all Accounts, unless and until an Event of Default has occurred and is continuing.  Bank shall require that all proceeds of Accounts be deposited by Borrower into a lockbox account, or such other “blocked account” as specified by Bank, pursuant to a blocked account agreement in such form as Bank may specify in its good faith business judgment.  Whether or not an Event of Default has occurred and is continuing, Borrower shall immediately deliver all payments on and proceeds of Accounts to an account maintained with Bank to be applied (A) if an Event of Default has not occurred and is not continuing (i) to immediately reduce the Obligations when a Streamline Period is not effect, or (ii) to be transferred on a daily basis to Borrower’s operating account with Bank (which shall not be a “blocked account”) when a Streamline Period is in effect or (B) when an Event of Default has occurred and is continuing, pursuant to the terms of Section 9.5 hereof.

 

(d)                                 Returns.  Provided no Event of Default has occurred and is continuing, if any Account Debtor returns any Inventory to Borrower, Borrower shall promptly (i) determine the reason for such return, (ii) if an invoice has been issued with respect to such Inventory, issue a credit memorandum to the Account Debtor in the appropriate amount, and (iii) provide a copy of such credit memorandum to Bank, upon request from Bank.  In the event any attempted return occurs after the occurrence and during the continuance of any Event of Default, Borrower shall immediately notify Bank of the return of the Inventory.

 

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(e)                                  Verification.  Bank may, from time to time, after consultation with Borrower, verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts, either in the name of Borrower or Bank or such other name as Bank may choose.

 

(f)                                   No Liability.  Bank shall not be responsible or liable for any shortage or discrepancy in, damage to, or loss or destruction of, any goods, the sale or other disposition of which gives rise to an Account, or for any error, act, omission, or delay of any kind occurring in the settlement, failure to settle, collection or failure to collect any Account, or for settling any Account in good faith for less than the full amount thereof, nor shall Bank be deemed to be responsible for any of Borrower’s obligations under any contract or agreement giving rise to an Account.  Nothing herein shall, however, relieve Bank from liability for its own gross negligence or willful misconduct.

 

6.4                               Inventory; Returns.  Keep all Inventory in good and marketable condition, free from material defects.  Returns and allowances between Borrower, or any of its Subsidiaries, and their respective Account Debtors shall follow Borrower’s, or such Subsidiary’s, customary practices as they exist at the Effective Date or as otherwise approved in writing by Collateral Agent and the Lenders.  Borrower must promptly notify Collateral Agent and the Lenders of (i) all returns, recoveries, disputes and claims (collectively, “Returns”) in the ordinary course of business with respect to Inventory (excluding Returns based on defective Inventory or other manufacturing or product issues, “Defect Returns”) that involve, individually or in the aggregate, more than five and one half of one percent (5.50%) of Borrower’s year to date revenue and (ii) all Defect Returns that involve, individually or in the aggregate, more than One Hundred Fifty Thousand Dollars ($150,000.00) per calendar year.

 

6.5                               Taxes; Pensions.  Timely file and require each of its Subsidiaries to timely file, all required tax returns and reports and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state, and material local taxes, assessments, deposits and contributions owed by Borrower or its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Lenders, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with the terms of such plans.

 

6.6                               Insurance.  Keep Borrower’s and its Subsidiaries’ business and the Collateral insured for risks and in amounts standard for companies in Borrower’s and its Subsidiaries’ industry and location and as Collateral Agent may reasonably request.  Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent and Lenders.  All property policies with respect to Collateral shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral Agent, as additional insured.  The Collateral Agent shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral, and each provider of any such insurance shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent, that it will give the Collateral Agent thirty (30) days prior written notice before any such policy or policies shall be materially altered or canceled, and ten (10) days prior written notice for non-payment of premium.  At Collateral Agent’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.  Proceeds payable under any such policy on Borrower’s property shall, at Collateral Agent’s option, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations.  Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any such casualty policy up to Five Hundred Thousand Dollars ($500,000.00) with respect to any loss, but not exceeding Five Hundred Thousand Dollars ($500,000.00), in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal, like or greater value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations.  If Borrower or any of its Subsidiaries fails to obtain insurance as required under this Section 6.6 or to pay any amount or furnish any required proof of payment to third persons, Collateral Agent and/or any Lender may make, at Borrower’s expense, all or part of such payment or obtain such insurance policies required in this Section 6.6, and take any action under the policies Collateral Agent or such Lender deems prudent.

 

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6.7                               Operating Accounts.

 

(a)                                 Borrower and any Subsidiary that is a co-Borrower or Guarantor under this Agreement shall maintain all of its operating and other Deposit Accounts and Securities Accounts with Bank and Bank’s Affiliates which are subject to Control Agreements in favor of each Lender.  Notwithstanding the foregoing, Borrower may maintain the Wells Fargo Accounts for a period of up to one hundred eighty (180) days after the Effective Date provided that such Wells Fargo Accounts (other than the Wells Fargo Account designated to secure Borrower’s reimbursement obligations not to exceed Seven Hundred Fifty Thousand Dollars ($750,000.00) with respect to the letter of credit issued by Wells Fargo (the “Wells Fargo Cash Collateral Account”); provided that the Wells Fargo Cash Collateral Account shall be reduced dollar for dollar simultaneously with the reduction of such letter of credit, subject to customary reserves associated with letters of credit) are subject to Control Agreements in favor of Collateral Agent and each Lender.

 

(b)                                 Borrower shall provide Collateral Agent and each Lender five (5) days’ prior written notice before Borrower or any of its Subsidiaries establishes any Collateral Account at or with any Person other than Bank or its Affiliates.  In addition, for each Collateral Account that Borrower or any Subsidiary that is a co-Borrower or Guarantor under the Agreement, at any time maintains, Borrower or such Subsidiary shall cause the applicable bank or financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Collateral Agent’s and each Lender’s Lien in such Collateral Account in accordance with the terms hereunder prior to the establishment of such Collateral Account, which Control Agreement may not be terminated without prior written consent of Collateral Agent or each Lender, as applicable.  The provisions of the previous sentence shall not apply to the Wells Fargo Cash Collateral Account, or to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of Borrower’s, or any of its Subsidiaries’, employees and identified to Collateral Agent and each Lender by Borrower as such in the Perfection Certificates (as updated from time to time consistent with this Agreement).

 

(c)                                  Neither Borrower nor any of its Subsidiaries shall maintain any Collateral Accounts except Collateral Accounts maintained in accordance with Sections 6.7(a) and (b).

 

6.8                               Foreign Exchange Transactions.  Borrower shall contract exclusively with Bank to conduct all of Borrower’s foreign exchange transactions including, but not limited to FX Contracts and Letters of Credit.

 

6.9                               Protection of Intellectual Property Rights.  Borrower and each of its Subsidiaries shall:  (a) use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of its Intellectual Property that is material to Borrower’s business; (b) promptly advise Collateral Agent in writing of any known infringement by a third party of its Intellectual Property that could reasonably be expected to materially and adversely affect Borrower’s business; and (c) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without Collateral Agent’s prior written consent.

 

6.10                        Litigation Cooperation.  Commencing on the Effective Date and continuing through the termination of this Agreement, make available to Collateral Agent and the Lenders, without expense to Collateral Agent or the Lenders, Borrower and each of Borrower’s officers, employees and agents and Borrower’s Books, to the extent that Collateral Agent or any Lender may reasonably deem them necessary to prosecute or defend any third-party suit or proceeding instituted by or against Collateral Agent or any Lender with respect to any Collateral or relating to Borrower.

 

6.11                        Notices of Litigation and Default.  Borrower will give prompt written notice to Collateral Agent and the Lenders of any litigation or governmental proceedings pending or threatened (in writing) against Borrower or any of its Subsidiaries, which could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of Five Hundred Thousand Dollars ($500,000.00) or more or which could reasonably be expected to have a Material Adverse Change.  Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in any event within three (3) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Collateral Agent and the Lenders of such 

 

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occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default.

 

6.12                        Landlord Waivers; Bailee Waivers.  In the event that Borrower or any Subsidiary of Borrower that is a co-Borrower or Guarantor under this Agreement, after the Effective Date, intends to add any new offices or business locations, including warehouses, or otherwise store any portion of the Collateral (other than Transitory Collateral) with, or deliver any portion of the Collateral to, a bailee, in each case pursuant to Section 7.2, then Borrower or such Subsidiary will first provide written notice to Collateral Agent and in the event that the Collateral (excluding Transitory Collateral) at any new location is valued in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate, such bailee or landlord, as applicable, must execute and deliver a bailee waiver or landlord waiver, as applicable, in form and substance reasonably satisfactory to Collateral Agent prior to the addition of any such new offices or business locations, or any such storage with or delivery to any such bailee, as the case may be.

 

6.13                        Creation/Acquisition of Subsidiaries.  In the event Borrower, or any of its Subsidiaries creates or acquires any Subsidiary, Borrower shall provide prior written notice to Collateral Agent and each Lender of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Collateral Agent or any Lender to cause each such Subsidiary to become a co-Borrower hereunder or, with respect to any such Subsidiary, to guarantee the Obligations of Borrower under the Loan Documents and, in each case, grant a continuing pledge and security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and Borrower (or its Subsidiary, as applicable) shall grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, and to each Lender, a perfected security interest in the Shares of each such newly created Subsidiary.  In the event the Lenders determine in their sole discretion that ConforMIS Hong Kong has become a material Subsidiary, Borrower shall also grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, and to each Lender, a perfected security interest in the Shares of ConforMIS Hong Kong.  Notwithstanding the foregoing, solely in the circumstance in which Borrower or any Subsidiary creates or acquires a Foreign Subsidiary in an acquisition permitted by Section 7.7 hereof, or otherwise approved by the Required Lenders, and with respect to ConforMIS Hong Kong, in the event the Lenders determine in their sole discretion that ConforMIS Hong Kong has become a material Subsidiary, (i) such Foreign Subsidiary shall not be required to guarantee the Obligations of Borrower under the Loan Documents and grant a continuing pledge and security interest in and to the assets of such Foreign Subsidiary, and (ii) Borrower shall not be required to grant and pledge to Collateral Agent, for the ratable benefit of Lenders, a perfected security interest in more than sixty five percent (65%) of the Shares of such Foreign Subsidiary, if Borrower demonstrates to the reasonable satisfaction of Collateral Agent that such Foreign Subsidiary providing such guarantee or pledge and security interest or Borrower providing a perfected security interest in more than sixty five percent (65%) of the Shares could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S.  Internal Revenue Code.

 

6.14                        Access to Collateral, Books and Records.  Allow Collateral Agent, or its agents, to inspect the Collateral and audit and copy Borrower’s Books.  Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing.; provided, however, that the initial Collateral audit shall be completed within forty-five (45) days after the Effective Date.  The foregoing inspections and audits shall be at Borrower’s expense, and the charge therefor shall be Eight Hundred Fifty Dollars ($850.00) per person per day (or such higher amount as shall represent Collateral Agent’s then-current standard charge for the same), plus reasonable out-of-pocket expenses.  In the event Borrower and Collateral Agent schedule an audit more than ten (10) days in advance, and Borrower cancels or seeks to reschedule the audit with less than ten (10) days written notice to Collateral Agent, then (without limiting any of Collateral Agent’s rights or remedies), Borrower shall pay any out-of-pocket expenses incurred by Collateral Agent to compensate Collateral Agent for the anticipated costs and expenses of the cancellation or rescheduling.

 

6.15                        Further Assurances.

 

(a)                                 Execute any further instruments and take further action as Collateral Agent or any Lender reasonably requests to perfect or continue Collateral Agent’s Lien in the Collateral or to effect the purposes of this Agreement.

 

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(b)                                 Deliver to Collateral Agent and Lenders, within five (5) Business Days after the same are sent or received, copies of all material correspondence, reports, documents and other filings with any Governmental Authority that could reasonably be expected to have a material adverse effect on any of the Governmental Approvals material to Borrower’s business or otherwise could reasonably be expected to have a Material Adverse Change.

 

7.                                      NEGATIVE COVENANTS

 

Borrower shall not, and shall not permit any of its Subsidiaries to, do any of the following without the prior written consent of the Required Lenders:

 

7.1                               Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn out or obsolete Equipment; and (c) in connection with Permitted Liens, Permitted Investments and Permitted Licenses.

 

7.2                               Changes in Business, Management, Ownership, or Business Locations.  (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses engaged in by Borrower as of the Effective Date or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) any Key Person shall cease to be actively engaged in the management of Borrower unless written notice thereof is provided to Collateral Agent within ten (10) Business Days of such change, or (ii) enter into any transaction or series of related transactions (other than a merger or consolidation expressly permitted under Section 7.3) in which the stockholders of Borrower who were not stockholders immediately prior to the first such transaction (or their respective affiliates) own more than forty nine percent (49%) of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a public offering, a private placement of public equity or to venture capital investors so long as Borrower identifies to Collateral Agent such venture capital investors prior to the closing of the transaction).  Borrower shall not, without at least thirty (30) days’ prior written notice to Collateral Agent:  (A) add any new office or business location, including a warehouse, maintaining over Two Hundred Fifty Thousand Dollars ($250,000.00) in assets or property (excluding Transitory Collateral) unless it complies with Section 6.12; (B) change its jurisdiction of organization, (C) change its organizational structure or type, (D) change its legal name, or (E) change any organizational number (if any) assigned by its jurisdiction of organization.

 

7.3                               Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock, shares or property of another Person.  A Subsidiary may merge or consolidate into another Subsidiary (provided such surviving Subsidiary is a “co-Borrower” hereunder or has provided a secured Guaranty of Borrower’s Obligations hereunder) or with (or into) Borrower provided Borrower is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom.  Without limiting the foregoing, Borrower shall not, without Collateral Agent’s prior written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any break-up or similar fees, payments or damages from Borrower in excess of Five Hundred Thousand Dollars ($500,000.00), and (iii) Borrower notifies Collateral Agent in advance of entering into such an agreement.

 

7.4                               Indebtedness.  Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

 

7.5                               Encumbrance.  Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein (except for Permitted Liens that are permitted by the terms of this Agreement to have priority over Collateral Agent’s Lien), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Collateral Agent, for the ratable benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower, or any of its Subsidiaries, from assigning, mortgaging, pledging, granting a security interest in 

 

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or upon, or encumbering any of Borrower’s or such Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein.

 

7.6                               Maintenance of Collateral Accounts.  Borrower and any Subsidiary that is a co-Borrower or Guarantor, shall not maintain any Collateral Account except pursuant to the terms of Section 6.7 hereof.

 

7.7                               Distributions; Investments.  (a) Pay any dividends (other than dividends payable solely in capital stock) or make any distribution or payment in respect of or redeem, retire or purchase any capital stock (other than (i) Permitted Investments and (ii) repurchases pursuant to the terms of employee stock purchase plans, employee restricted stock agreements, stockholder rights plans, director or consultant stock option plans, or similar plans, provided such repurchases do not exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate per fiscal year) or (b) directly or indirectly make any Investment other than Permitted Investments, or permit any of its Subsidiaries to do so.

 

7.8                               Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower or any of its Subsidiaries, except for (a) transactions that are in the ordinary course of Borrower’s or such Subsidiary’s business, upon fair and reasonable terms that are no less favorable to Borrower or such Subsidiary than would be obtained in an arm’s length transaction with a non-affiliated Person, (b) Subordinated Debt or equity investments in Borrower or its Subsidiaries, (c) the Vertegen License Agreement, (d) compensation arrangements in the ordinary course of business to the extent not prohibited under this Agreement, (e) the Lang Agreement and (f) transactions existing and disclosed on the Perfection Certificate(s) as of the Effective Date.

 

7.9                               Subordinated Debt.  (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to the Lenders.

 

7.10                        Compliance.  Become an “investment company” or a company controlled by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation could reasonably be expected to have a Material Adverse Change, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected to result in any material liability of Borrower or any of its Subsidiaries, including any such liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.

 

7.11                        Compliance with Anti-Terrorism Laws.  Collateral Agent hereby notifies Borrower and each of its Subsidiaries that pursuant to the requirements of Anti-Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and record certain information and documentation that identifies Borrower and each of its Subsidiaries and their principals, which information includes the name and address of Borrower and each of its Subsidiaries and their principals and such other information that will allow Collateral Agent to identify such party in accordance with Anti-Terrorism Laws.  Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC Lists.  Borrower and each of its Subsidiaries shall immediately notify Collateral Agent if Borrower or such Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering.  Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, 

 

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or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No.  13224 or any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti-Terrorism Law.

 

7.12                        Foreign Subsidiary Assets.  Permit the aggregate value of cash and Cash Equivalents held by (i) ConforMIS Europe to exceed One Million Dollars ($1,000,000.00) (or equivalent) at any time, (ii) ConforMIS UK to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) (or equivalent) at any time and (ii) ConforMIS Hong Kong to exceed One Hundred Thousand Dollars ($100,000.00) (or equivalent) at any time.

 

8.                                      EVENTS OF DEFAULT

 

Any one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:

 

8.1                               Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day grace period shall not apply to payments due on the Revolving Maturity Date, the Term Loan Maturity Date or the date of acceleration pursuant to Section 9.1 (a) hereof).  During the cure period, the failure to cure the payment default is not an Event of Default (but no Credit Extension will be made during the cure period);

 

8.2                               Covenant Default.

 

(a)                                 Borrower or any of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.3 (Account Receivable), 6.5 (Taxes), 6.6 (Insurance), 6.7 (Operating Accounts), 6.9 (Protection of Intellectual Property Rights), 6.11 (Notice of Litigation and Default), 6.12 (Landlord Waivers; Bailee Waivers), 6.13 (Creation/Acquisition of Subsidiaries), or 6.15 (Further Assurances) or Borrower violates any covenant in Section 7; or

 

(b)                                 Borrower, or any of its Subsidiaries, fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period).  Grace periods provided under this Section shall not apply, among other things, to financial covenants or any other covenants set forth in subsection (a) above;

 

8.3                               Material Adverse Change.  A Material Adverse Change occurs;

 

8.4                               Attachment; Levy; Restraint on Business.

 

(a)                                 (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or any of its Subsidiaries or of any entity under control of Borrower or its Subsidiaries on deposit with any Lender or any Lender’s Affiliate or any bank or other institution at which Borrower or any of its Subsidiaries maintains a Collateral Account, or (ii) a notice of lien, levy, or assessment is filed against Borrower or any of its Subsidiaries or their respective assets by any government agency, and the same under subclauses (i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten (10) day cure period; and

 

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(b)                                 (i) any material portion of Borrower’s or any of its Subsidiaries’ assets is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower or any of its Subsidiaries from conducting any part of its business;

 

8.5                               Insolvency.  (a) Borrower or any of its Subsidiaries is or becomes Insolvent; (b) Borrower or any of its Subsidiaries begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower or any of its Subsidiaries and not dismissed or stayed within forty-five (45) days (but no Credit Extensions shall be made while Borrower or any Subsidiary is Insolvent and/or until any Insolvency Proceeding is dismissed);

 

8.6                               Other Agreements.  There is a default in any agreement to which Borrower or any of its Subsidiaries is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Five Hundred Thousand Dollars ($500,000.00) or that could reasonably be expected to have a Material Adverse Change;

 

8.7                               Judgments.  One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Five Hundred Thousand Dollars ($500,000.00) (not covered by independent third-party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) Business Days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order or decree);

 

8.8                               Misrepresentations.  Borrower or any of its Subsidiaries or any Person acting for Borrower or any of its Subsidiaries makes any material representation, warranty, or other statement now or later in this Agreement, any Loan Document or in any writing delivered to Collateral Agent and/or Lenders or to induce Collateral Agent and/or the Lenders to enter this Agreement or any Loan Document, and such representation, warranty, or other statement is incorrect in any material respect when made;

 

8.9                               Subordinated Debt.  A default or breach occurs under any agreement between Borrower or any of its Subsidiaries and any creditor of Borrower or any of its Subsidiaries that signed a subordination, intercreditor, or other similar agreement with Collateral Agent or the Lenders, or any creditor that has signed such an agreement with Collateral Agent or the Lenders breaches any terms of such agreement;

 

8.10                        Guaranty.  (a) Any Guaranty terminates or ceases for any reason to be in full force and effect; (b) any Guarantor does not perform any material obligation or covenant under any Guaranty; (c) any circumstance described in Sections 8.3, 8.4, 8.5, 8.7, or 8.8 occurs with respect to any Guarantor, or (d) the liquidation, winding up, or termination of existence of any Guarantor;

 

8.11                        Governmental Approvals.  Any Governmental Approval shall have been revoked, rescinded, suspended, modified in an adverse manner, or not renewed in the ordinary course for a full term and such revocation, rescission, suspension, modification or non-renewal has resulted in or could reasonably be expected to result in a Material Adverse Change; or

 

8.12                        Lien Priority.  Any Lien created hereunder or by any other Loan Document shall at any time fail to constitute a valid and perfected Lien on any of the Collateral purported to be secured thereby, subject to no prior or equal Lien, other than Permitted Liens which are permitted to have priority in accordance with the terms of this Agreement.

 

9.                                      RIGHTS AND REMEDIES

 

9.1                               Rights and Remedies.

 

(a)                                 Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, and at the written direction of Required Lenders shall, without notice or demand, do any or all of the following:  (i) deliver notice of the Event of Default to Borrower, (ii) by notice to Borrower declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations shall be 

 

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immediately due and payable without any action by Collateral Agent or the Lenders) or (iii) by notice to Borrower suspend or terminate the obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders (but if an Event of Default described in Section 8.5 occurs all obligations, if any, of the Lenders to advance money or extend credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower and Collateral Agent and/or the Lenders shall be immediately terminated without any action by Collateral Agent or the Lenders).

 

(b)                                 Without limiting the rights of Collateral Agent and the Lenders set forth in Section 9.1(a) above, upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right at the written direction of the Required Lenders, without notice or demand, to do any or all of the following:

 

(i)                                     foreclose upon and/or sell or otherwise liquidate, the Collateral;

 

(ii)                                  apply to the Obligations any (a) balances and deposits of Borrower that Collateral Agent or any Lender holds or controls, or (b) any amount held or controlled by Collateral Agent or any Lender owing to or for the credit or the account of Borrower; and/or

 

(iii)                               commence and prosecute an Insolvency Proceeding or consent to Borrower commencing any Insolvency Proceeding.

 

(c)                                  Without limiting the rights of Collateral Agent and the Lenders set forth in Sections 9.1(a) and (b) above, upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have the right, without notice or demand, to do any or all of the following:

 

(i)                                     settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Collateral Agent considers advisable, notify any Person owing Borrower money of Collateral Agent’s security interest in such funds, and verify the amount of such account;

 

(ii)                                  make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral.  Borrower shall assemble the Collateral if Collateral Agent requests and make it available in a location as Collateral Agent reasonably designates.  Collateral Agent may enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses incurred.  Borrower grants Collateral Agent a license to enter and occupy any of its premises, without charge, to exercise any of Collateral Agent’s rights or remedies;

 

(iii)                               ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, and/or advertise for sale, the Collateral.  Collateral Agent is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s and each of its Subsidiaries’ labels, patents, copyrights, mask works, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Collateral Agent’s exercise of its rights under this Section 9.1, Borrower’s and each of its Subsidiaries’ rights under all licenses and all franchise agreements inure to Collateral Agent, for the benefit of the Lenders;

 

(iv)                              place a “hold” on any account maintained with Collateral Agent or the Lenders and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;

 

(v)                                 demand and receive possession of Borrower’s Books;

 

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(vi)                              appoint a receiver to seize, manage and realize any of the Collateral, and such receiver shall have any right and authority as any competent court will grant or authorize in accordance with any applicable law, including any power or authority to manage the business of Borrower or any of its Subsidiaries;

 

(vii)                           subject to clauses 9.1(a) and (b), exercise all rights and remedies available to Collateral Agent and each Lender under the Loan Documents or at law or equity, including all remedies provided under the Code (including disposal of the Collateral pursuant to the terms thereof);

 

(viii)                        for any Letters of Credit, demand that Borrower (i) deposit cash with Bank in an amount equal to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; and

 

(ix)                              terminate any FX Contracts.

 

9.2                               Power of Attorney.  Borrower hereby irrevocably appoints Collateral Agent as its lawful attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to:  (a) endorse Borrower’s or any of its Subsidiaries’ name on any checks or other forms of payment or security; (b) sign Borrower’s or any of its Subsidiaries’ name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Collateral Agent determines reasonable; (d) make, settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; and (f) transfer the Collateral into the name of Collateral Agent or a third party as the Code or any applicable law permits.  Borrower hereby appoints Collateral Agent as its lawful attorney-in-fact to sign Borrower’s or any of its Subsidiaries’ name on any documents necessary to perfect or continue the perfection of Collateral Agent’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations (other than inchoate indemnity obligations) have been satisfied in full and Collateral Agent and the Lenders are under no further obligation to make Credit Extensions hereunder.  Collateral Agent’s foregoing appointment as Borrower’s or any of its Subsidiaries’ attorney in fact, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Obligations (other than inchoate indemnity obligations) have been fully repaid and performed and Collateral Agent’s and the Lenders’ obligation to provide Credit Extensions terminates.

 

9.3                               Accounts Verification; Collection.  If an Event of Default has occurred and is continuing, Lenders may notify any Person owing Borrower money of Lenders’ security interest in such funds and verify the amount of such account (provided that if an Event of Default has not occurred and is not continuing, Lenders may, after consultation with Borrower, notify any Person owing Borrower money of Lenders’ security interest in such funds and verify the amount of such account) .  After the occurrence of an Event of Default, any amounts received by Borrower shall be held in trust by Borrower for Lenders, and, if requested by Lenders, Borrower shall immediately deliver such receipts to Lenders in the form received from the Account Debtor, with proper endorsements for deposit.

 

9.4                               Protective Payments.  If Borrower or any of its Subsidiaries fail to obtain the insurance called for by Section 6.6 or fails to pay any premium thereon or fails to pay any other amount which Borrower or any of its Subsidiaries is obligated to pay under this Agreement or any other Loan Document, Collateral Agent may obtain such insurance or make such payment, and all amounts so paid by Collateral Agent are Lenders’ Expenses and immediately due and payable, bearing interest at the Default Rate, and secured by the Collateral.  Collateral Agent will make reasonable efforts to provide Borrower with notice of Collateral Agent obtaining such insurance or making such payment at the time it is obtained or paid or within a reasonable time thereafter.  No such payments by 

 

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Collateral Agent are deemed an agreement to make similar payments in the future or Collateral Agent’s waiver of any Event of Default.

 

9.5                               Application of Payments and Proceeds.  Notwithstanding anything to the contrary contained in this Agreement, upon the occurrence and during the continuance of an Event of Default, (a) Borrower irrevocably waives the right to direct the application of any and all payments at any time or times thereafter received by Collateral Agent from or on behalf of Borrower or any of its Subsidiaries of all or any part of the Obligations, and, as between Borrower on the one hand and Collateral Agent and Lenders on the other, Collateral Agent shall have the continuing and exclusive right to apply and to reapply any and all payments received against the Obligations in such manner as Collateral Agent may deem advisable notwithstanding any previous application by Collateral Agent, and (b) the proceeds of any sale of, or other realization upon all or any part of the Collateral shall be applied:  first, to the Lenders’ Expenses; second, to accrued and unpaid interest on the Obligations (including any interest which, but for the provisions of the United States Bankruptcy Code, would have accrued on such amounts); third, to the principal amount of the Obligations outstanding; and fourth, to any other indebtedness or obligations of Borrower owing to Collateral Agent or any Lender under the Loan Documents.  Any balance remaining shall be delivered to Borrower or to whoever may be lawfully entitled to receive such balance or as a court of competent jurisdiction may direct.  In carrying out the foregoing, (x) amounts received shall be applied in the numerical order provided until exhausted prior to the application to the next succeeding category, and (y) each of the Persons entitled to receive a payment in any particular category shall receive an amount equal to its pro rata share of amounts available to be applied pursuant thereto for such category.  Any reference in this Agreement to an allocation between or sharing by the Lenders of any right, interest or obligation “ratably,” “proportionally” or in similar terms shall refer to Pro Rata Share unless expressly provided otherwise.  Collateral Agent, or if applicable, each Lender, shall promptly remit to the other Lenders such sums as may be necessary to ensure the ratable repayment of each Lender’s portion of any Term Loan and the ratable distribution of interest, fees and reimbursements paid or made by Borrower.  Notwithstanding the foregoing, a Lender receiving a scheduled payment shall not be responsible for determining whether the other Lenders also received their scheduled payment on such date; provided, however, if it is later determined that a Lender received more than its ratable share of scheduled payments made on any date or dates, then such Lender shall remit to Collateral Agent or other Lenders such sums as may be necessary to ensure the ratable payment of such scheduled payments, as instructed by Collateral Agent.  If any payment or distribution of any kind or character, whether in cash, properties or securities, shall be received by a Lender in excess of its ratable share, then the portion of such payment or distribution in excess of such Lender’s ratable share shall be received by such Lender in trust for and shall be promptly paid over to the other Lender for application to the payments of amounts due on the other Lenders’ claims.  To the extent any payment for the account of Borrower is required to be returned as a voidable transfer or otherwise, the Lenders shall contribute to one another as is necessary to ensure that such return of payment is on a pro rata basis.  If any Lender shall obtain possession of any Collateral, it shall hold such Collateral for itself and as agent and bailee for Collateral Agent and other Lenders for purposes of perfecting Collateral Agent’s security interest therein.

 

9.6                               Liability for Collateral.  So long as Collateral Agent and the Lenders comply with reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Collateral Agent and the Lenders, Collateral Agent and the Lenders shall not be liable or responsible for:  (a) the safekeeping of the Collateral; (b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person.  Borrower bears all risk of loss, damage or destruction of the Collateral.

 

9.7                               No Waiver; Remedies Cumulative.  Failure by Collateral Agent or any Lender, at any time or times, to require strict performance by Borrower of any provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Collateral Agent or any Lender thereafter to demand strict performance and compliance herewith or therewith.  No waiver hereunder shall be effective unless signed by Collateral Agent and the Required Lenders and then is only effective for the specific instance and purpose for which it is given.  The rights and remedies of Collateral Agent and the Lenders under this Agreement and the other Loan Documents are cumulative.  Collateral Agent and the Lenders have all rights and remedies provided under the Code, any applicable law, by law, or in equity.  The exercise by Collateral Agent or any Lender of one right or remedy is not an election, and Collateral Agent’s or any Lender’s waiver of any Event of Default is not a continuing waiver.  Collateral Agent’s or any Lender’s delay in exercising any remedy is not a waiver, election, or acquiescence.

 

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9.8                               Demand Waiver.  Borrower waives, to the fullest extent permitted by law, demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Collateral Agent or any Lender on which Borrower or any Subsidiary is liable.

 

10.                               NOTICES

 

All notices, consents, requests, approvals, demands, or other communication (collectively, “Communication”) by any party to this Agreement or any other Loan Document must be in writing and shall be deemed to have been validly served, given, or delivered:  (a) upon the earlier of actual receipt and three (3) Business Days after deposit in the U.S.  mail, first class, registered or certified mail return receipt requested, with proper postage prepaid; (b) upon transmission, when sent by facsimile transmission; (c) one (1) Business Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated below.  Any of Collateral Agent, Lender or Borrower may change its mailing address or facsimile number by giving the other party written notice thereof in accordance with the terms of this Section 10.

 

	
If   to Borrower:
    	
CONFORMIS, INC.
   28 Crosby Drive
   Bedford, MA 01730
   Attn: ChiefFinancial Officer
   Fax: (781) 345-0147
    
	
 
    	
Email:   paul.weiner@conformis.com
    
	
 
    	
 
    
	
with   a copy (which shall not constitute notice) to:
    	
Wilmer   Cutler Pickering Hale and Dorr, LLP
   60 State Street
   Boston, MA 02446
   Attn: Jamie N. Class
   Fax: 617 526 5000
   Email: iamie.class@wilmerhale.com
    
	
 
    	
 
    
	
If   to Collateral Agent:
    	
SILICON   VALLEY BANK
   275 Grove Street Suite 2-200
   Newton, Massachusetts 02466
   Attn: Clark Hayes
   Tel.: (617) 630-4163
   Fax: (617) 969-5962
   Email: chayes@svb.com
    
	
 
    	
 
    
	
If   to Oxford:
    	
OXFORD   FINANCE LLC
   133 North Fairfax Street
   Alexandria, Virginia 22314
   Attention: Legal Department
   Fax: (703) 519-5225
   Email: LegalDepartment@oxfordfinance.com
    
	
 
    	
 
    
	
with   a copy (which shall not constitute notice) to:
    	
DLA   Piper LLP (US)
   4365 Executive Drive, Suite 1100
   San Diego, California 92121-2133
   Attn: Cindy Lovering
   Fax: (858) 638-5053
   cynthia.lovering@dlapiper.com
    

 

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11.                               CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

 

New York law governs the Loan Documents without regard to principles of conflicts of law.  Borrower, Lenders and Collateral Agent each submit to the exclusive jurisdiction of the State and Federal courts in the City of New York, Borough of Manhattan.  NOTWITHSTANDING THE FOREGOING, COLLATERAL AGENT AND THE LENDERS SHALL HAVE THE RIGHT TO BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION WHICH COLLATERAL AGENT AND THE LENDERS (IN ACCORDANCE WITH THE PROVISIONS OF SECTION 9.1) DEEM NECESSARY OR APPROPRIATE TO REALIZE ON THE COLLATERAL OR TO OTHERWISE ENFORCE COLLATERAL AGENT’S AND THE LENDERS’ RIGHTS AGAINST BORROWER OR ITS PROPERTY.  Borrower expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.  Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, first class, registered or certified mail return receipt requested, proper postage prepaid.

 

TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER, COLLATERAL AGENT, AND THE LENDERS EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

12.                               GENERAL PROVISIONS

 

12.1                        Termination Prior to Revolving Maturity Date.  The Revolving Line may be terminated prior to the Revolving Maturity Date by Borrower, effective three (3) Business Days after written notice of termination is given to Bank by Borrower.  Notwithstanding any such termination, Lenders’ liens and security interests in the Collateral shall continue until Borrower fully satisfies its Obligations (other than inchoate indemnity obligations).  If such termination is at Borrower’s election or at Bank’s election due to the occurrence and continuance of an Event of Default, Borrower shall pay to Bank, solely for Bank’s account, in addition to the payment of any other expenses or fees then-owing, a termination fee (the “Termination Fee”) in an amount equal to (i) One Hundred Thousand Dollars ($100,000.00) if the termination occurs on or prior to the first anniversary of the Effective Date or (ii) Fifty Thousand Dollars ($50,000.00) if the termination occurs after the first anniversary of the Effective Date but on or prior to the third anniversary of the Effective Date and provided further that no termination fee shall be charged if the Revolving Line is replaced with a new facility or an amended and restated facility from Bank.

 

12.2                        Successors and Assigns.  This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  Borrower may not transfer, pledge or assign this Agreement or any rights or obligations under it without Collateral Agent’s and each Lender’s prior written consent (which may be granted or withheld in Collateral Agent’s and each Lender’s discretion, subject to Section 12.7).  The Lenders have the right, without the consent of or notice to Borrower, to sell, transfer, assign, pledge, negotiate, or grant participation in (any such sale, transfer, assignment, negotiation, or grant of a participation, a “Lender Transfer”) all or any part of, or any interest in, the Lenders’ obligations, rights, and benefits under this Agreement and the other Loan Documents; provided, however, that any such Lender Transfer (other than a transfer, pledge, sale or assignment to an Eligible Assignee) of its obligations, rights, and benefits under this Agreement and the other Loan Documents shall require the prior written consent of the Required Lenders (such approved assignee, an “Approved Lender”).  Borrower and Collateral Agent shall be entitled to continue to deal solely and directly with such Lender in connection with the interests so assigned until Collateral Agent shall have received and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee or Approved Lender as  

 

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Collateral Agent reasonably shall require.  Notwithstanding anything to the contrary contained herein, so long as no Event of Default has occurred and is continuing, no Lender Transfer (other than a Lender Transfer (i) in respect of the Warrants or (ii) in connection with (x) assignments by a Lender due to a forced divestiture at the request of any regulatory agency; or (y) upon the occurrence of a default, event of default or similar occurrence with respect to a Lender’s own financing or securitization transactions) shall be permitted, without Borrower’s consent, to any Person which is an Affiliate or Subsidiary of Borrower, a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent.

 

12.3                        Indemnification.  Borrower agrees to indemnify, defend and hold Collateral Agent and the Lenders and their respective directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Collateral Agent or the Lenders (each, an “Indemnified Person”) harmless against:  (a) all obligations, demands, claims, and liabilities (collectively, “Claims”) asserted by any other party in connection with; related to; following; or arising from, out of or under, the transactions contemplated by the Loan Documents; and (b) all losses or Lenders’ Expenses incurred, or paid by Indemnified Person in connection with; related to; following; or arising from, out of or under, the transactions contemplated by the Loan Documents between Collateral Agent, and/or the Lenders and Borrower (including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s gross negligence or willful misconduct.  Borrower hereby further indemnifies, defends and holds each Indemnified Person harmless from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including the fees and disbursements of counsel for such Indemnified Person) in connection with any investigative, response, remedial, administrative or judicial matter or proceeding, whether or not such Indemnified Person shall be designated a party thereto and including any such proceeding initiated by or on behalf of Borrower, and the reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and any commission, fee or compensation claimed by any broker (other than any broker retained by Collateral Agent or Lenders) asserting any right to payment for the transactions contemplated hereby which may be imposed on, incurred by or asserted against such Indemnified Person as a result of or in connection with the transactions contemplated hereby and the use or intended use of the proceeds of the loan proceeds except for liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and disbursements directly caused by such Indemnified Person’s gross negligence or willful misconduct.

 

12.4                        Time of Essence.  Time is of the essence for the performance of all Obligations in this Agreement.

 

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

 

12.6                        Correction of Loan Documents.  Collateral Agent and the Lenders may correct patent errors and fill in any blanks in this Agreement and the other Loan Documents consistent with the agreement of the parties so long as Collateral Agent and the Lenders provide Borrower with written notice of such correction and allows Borrower at least ten (10) Business Days to object to such correction.  In the event of such objection, such correction shall not be made except by an amendment signed by Collateral Agent, the Lenders and Borrower.

 

12.7                        Amendments in Writing; Integration.  (a) No amendment, modification, termination or waiver of any provision of this Agreement or any other Loan Document, no approval or consent thereunder, or any consent to any departure by Borrower or any of its Subsidiaries therefrom, shall in any event be effective unless the same shall be in writing and signed by Borrower, Collateral Agent and the Required Lenders provided that:

 

(i)                                     no such amendment, waiver or other modification that would have the effect of increasing or reducing a Lender’s Term Loan Commitment or Commitment Percentage shall be effective as to such Lender without such Lender’s written consent;

 

(ii)                                  no such amendment, waiver or modification that would affect the rights and duties of Collateral Agent shall be effective without Collateral Agent’s written consent or signature;

 

(iii)                               no such amendment, waiver or other modification shall, unless signed by all the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect to any

 

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Term Loan or forgive any principal, interest (other than default interest) or fees (other than late charges) with respect to any Term Loan (B) postpone the date fixed for, or waive, any payment of principal of any Term Loan or of interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late charges or for any termination of any commitment); (C) change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D) release all or substantially all of any material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or release any Guarantor of all or any portion of the Obligations or its guaranty obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive or otherwise modify this Section 12.7 or the definitions of the terms used in this Section 12.7 insofar as the definitions affect the substance of this Section 12.7; (F) consent to the assignment, delegation or other transfer by Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan Document, except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan Commitment, Commitment Percentage or that provide for the Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in favor of Collateral Agent and Lenders securing the Obligations; or (I) amend any of the provisions of Section 12.11.  It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence;

 

(iv)                              the provisions of the foregoing clauses (i), (ii) and (iii) are subject to the provisions of any interlender or agency agreement among the Lenders and Collateral Agent pursuant to which any Lender may agree to give its consent in connection with any amendment, waiver or modification of the Loan Documents only in the event of the unanimous agreement of all Lenders.

 

(b)                                 Other than as expressly provided for in Section 12.7(a)(i)-(iii), Collateral Agent may, if requested by the Required Lenders, from time to time designate covenants in this Agreement less restrictive by notification to a representative of Borrower.

 

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

 

12.8                        Counterparts.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

12.9                        Survival.  All covenants, representations and warranties made in this Agreement continue in full force and effect until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied.  Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements.  The obligation of Borrower in Section 12.3 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 12.10 below, shall survive until the statute of limitations with respect to such claim or cause of action shall have run.

 

12.10                 Confidentiality.  In handling any confidential information of Borrower, the Lenders and Collateral Agent shall exercise the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made:  (a) subject to the terms and conditions of this Agreement, including these confidentiality provisions, (i) to the Lenders’ and Collateral Agent’s Subsidiaries or Affiliates, or (ii) in connection with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; (b) to prospective transferees (other than those identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the 

 

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Lenders and Collateral Agent shall, except upon the occurrence and during the continuance of an Event of Default, obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision or to similar confidentiality terms for the benefit of Borrower); (c) as required by law, regulation, subpoena, or other order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent reasonably considers appropriate in exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent (for the benefit of Borrower) with terms no less restrictive than those contained herein.  Confidential information does not include information that either:  (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent does not know that the third party is prohibited from disclosing the information.  Collateral Agent and the Lenders may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis.  The provisions of the immediately preceding sentence shall survive the termination of this Agreement.  The agreements provided under this Section 12.10 supersede all prior agreements, understanding, representations, warranties, and negotiations between the parties about the subject matter of this Section 12.10.

 

12.11                 Right of Set Off.  Borrower hereby grants to Collateral Agent and to each Lender, a lien, security interest and right of set off as security for all Obligations to Collateral Agent and each Lender hereunder, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Collateral Agent or the Lenders or any entity under the control of Collateral Agent or the Lenders (including a Collateral Agent affiliate) or in transit to any of them.  At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Collateral Agent or the Lenders may set off the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations.  ANY AND ALL RIGHTS TO REQUIRE COLLATERAL AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

 

12.12                 Cooperation of Borrower.  If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 12.2, (ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions (which meetings shall be conducted no more often than twice every twelve months unless an Event of Default has occurred and is continuing), and (iii) assist Collateral Agent or the Lenders in the preparation of information relating to the financial affairs of Borrower as any prospective participant or assignee of a Term Loan Commitment or Term Loan reasonably may request.  Subject to the provisions of Section 12.10, Borrower authorizes each Lender to disclose to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement.

 

12.13                 Borrower Liability.  Either Borrower may, acting singly, request Credit Extensions hereunder.  Each Borrower hereby appoints the other as agent for the other for all purposes hereunder, including with respect to requesting Credit Extensions hereunder.  Each Borrower hereunder shall be jointly and severally obligated to repay all Credit Extensions made hereunder, regardless of which Borrower actually receives said Credit Extension, as if each Borrower hereunder directly received all Credit Extensions.

 

13.                               DEFINITIONS

 

13.1                        Definitions.  As used in this Agreement, the following terms have the following meanings:

 

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“Account” is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without limitation, all accounts receivable and other sums owing to Borrower.

 

“Account Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.

 

“Advance” or “Advances” means an advance or advances under the Revolving Line.

 

“Affiliate” of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners and, for any Person that is a limited liability company, that Person’s managers and members.

 

“Agreement” is defined in the preamble hereof.

 

“Amortization Date” is December 1, 2016, provided however, if Borrower achieves the Revenue Milestone, the Amortization Date shall be extended to December 1, 2017.

 

“Annual Projections” is defined in Section 6.2(a)(iii).

 

“Anti-Terrorism Laws” are any laws relating to terrorism or money laundering, including Executive Order No.  13224 (effective September 24, 2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws administered by OFAC.

 

“Approved Fund” is any (i) investment company, fund, trust, securitization vehicle or conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person (other than a natural person) which temporarily warehouses loans for any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) a Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender.

 

“Approved Lender” is defined in Section 12.2.

 

“Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the Borrowing Base minus (b) the outstanding principal balance of any Advances.

 

“Bank” is defined in the preamble hereof.

 

“Bank Services” are any products, credit services, and/or financial accommodations previously, now, or hereafter provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services Agreement”).

 

“Blocked Person” is any Person:  (a) listed in the annex to, or is otherwise subject to the provisions of, Executive Order No.  13224, (b) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No.  13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No.  13224, or (e) a Person that is named a “specially designated national” or “blocked person” on the most current list published by OFAC or other similar list.

 

“Borrower” is defined in the preamble hereof.

 

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“Borrower’s Books” are Borrower’s or any of its Guarantor and co-Borrower Subsidiaries’ books and records including ledgers, federal, and state tax returns, records regarding Borrower’s or its Subsidiaries’ assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment containing such information.

 

“Borrowing Base” is up to eighty-five percent (85%) of Eligible Accounts as determined by Bank from Borrower’s most recent Transaction Report; provided, however, that Bank may decrease the foregoing percentage in its reasonable business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, could reasonably be expected to materially and adversely affect Collateral.

 

“Business Day” is any day that is not a Saturday, Sunday or a day on which Collateral Agent is closed.

 

“Cash Equivalents” are (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc., and (c) certificates of deposit maturing no more than one (1) year after issue provided that the account in which any such certificate of deposit is maintained is maintained with Collateral Agent or is subject to a Control Agreement in favor of Collateral Agent.  For the avoidance of doubt, the direct purchase by Borrower or any of its Subsidiaries of any Auction Rate Securities, or purchasing participations in, or entering into any type of swap or other derivative transaction, or otherwise holding or engaging in any ownership interest in any type of Auction Rate Security by Borrower or any of its Subsidiaries shall be conclusively determined by the Lenders as an ineligible Cash Equivalent, and any such transaction shall expressly violate each other provision of this Agreement governing Permitted Investments.  Notwithstanding the foregoing, Cash Equivalents does not include and Borrower, and each of its Subsidiaries, are prohibited from purchasing, purchasing participations in, entering into any type of swap or other equivalent derivative transaction, or otherwise holding or engaging in any ownership interest in any type of debt instrument, including, without limitation, any corporate or municipal bonds with a long-term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an auction rate security (each, an “Auction Rate Security”).

 

“Claims” are defined in Section 12.3.

 

“Code” is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of New York; provided, that, to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with respect to, Collateral Agent’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions relating to such provisions.

 

“Collateral” is any and all properties, rights and assets of Borrower described on Exhibit A.

 

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account, or any other bank account maintained by Borrower or any Subsidiary that is a Guarantor or co-Borrower under this Agreement at any time.

 

“Collateral Agent” is, SVB, not in its individual capacity, but solely in its capacity as agent on behalf of and for the benefit of the Lenders.

 

“Commitment Percentage” is set forth in Schedule 1.1, as amended from time to time.

 

“Commodity Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be made.

 

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“Communication” is defined in Section 10.

 

“Compliance Certificate” is that certain certificate in the form attached hereto as Exhibit C.

 

“ConforMIS Europe” is ConforMIS Europe, GmbH, an entity organized under the laws of Germany and a fully-owned Subsidiary of ConforMIS.

 

“ConforMIS Hong Kong” is ConforMIS Hong Kong Limited, an entity organized under the laws of Hong Kong and a fully-owned Subsidiary of ConforMIS.

 

“ConforMIS UK” is ConforMIS UK Limited, an entity organized under the laws of the England and Wales and a fully-owned Subsidiary of ConforMIS.

 

“Contingent Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness, lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed, endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include endorsements in the ordinary course of business.  The amount of a Contingent Obligation is the stated or determined amount of the primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.

 

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower or any of its Subsidiaries that are Guarantors or co-Borrowers under this Agreement maintains a Deposit Account or the securities intermediary or commodity intermediary at which Borrower or any of its Subsidiaries maintains a Securities Account or a Commodity Account, Borrower and such Subsidiary, and Collateral Agent or a Lender pursuant to which Collateral Agent or a Lender obtains control (within the meaning of the Code) for the benefit of the Lenders over such Deposit Account, Securities Account, or Commodity Account.

 

“Copyrights” are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

 

“Credit Extension” is any Advance, Term Loan, Letter of Credit, or any other extension of credit by any Lender for Borrower’s benefit.

 

“Current Liabilities” are all obligations and liabilities of Borrower to Lenders, plus, without duplication, the aggregate amount of Borrower’s Total Liabilities that mature within one (1) year.

 

“Default Rate” is defined in Section 2.2(b).

 

“Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet recognized as revenue.

 

“Deposit Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Designated Deposit Account” is Borrower’s deposit account, account number 3300664446, maintained with Bank.

 

“Disbursement Letter” is that certain form attached hereto as Exhibit B-1.

 

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“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and (b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the Foreign Currency for transfer to the country issuing such Foreign Currency.

 

“Dollars,” “dollars” and “$” each mean lawful money of the United States.

 

“Draw Period” is the period commencing on the Effective Date and ending on the earlier of (i) November 7, 2015 and (ii) the occurrence of an Event of Default.

 

“Effective Date” is defined in the preamble of this Agreement.

 

“Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all Borrower’s representations and warranties in Section 5.3.  Bank reserves the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment.  Unless Bank otherwise agrees in writing, Eligible Accounts shall not include:

 

(a)                                 Accounts that the Account Debtor has not paid within one hundred and twenty (120) days of invoice date regardless of invoice payment period terms;

 

(b)                                 Accounts owing from an Account Debtor, fifty percent (50%) or more of whose Accounts have not been paid within ninety (90) days of invoice date;

 

(c)                                  Accounts owing from an Account Debtor which does not have its principal place of business in the United States;

 

(d)                                 Accounts billed outside of the United States;

 

(e)                                  Accounts payable from an Account Debtor outside of the United States, except for those from Australia, Canada, France, Germany, Israel, Italy, Japan and United Kingdom (the “G7 Countries” and such other countries at SVB’s sole discretion on a case by case basis) and provided that such Accounts must be billed by Borrower in Dollars;

 

(f)                                   Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts), with the exception of customary credits, adjustments and/or discounts given to an Account Debtor by Borrower in the ordinary course of its business;

 

(g)                                  Accounts for which the Account Debtor is Borrower’s Affiliate, officer, employee, or agent;

 

(h)                                 Accounts with credit balances over one hundred twenty (120) days from invoice date (to the extent of such credit balance);

 

(i)                                     Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality thereof unless (i) the Account Debtor is a private hospital operated by the United States Department of Veteran Affairs or (ii) Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended;

 

(j)                                    Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional;

 

(k)                                 Accounts owing from an Account Debtor where goods or services have not yet been rendered to the Account Debtor (sometimes called memo billings or pre-billings);

 

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(l)                                     Accounts subject to contractual arrangements between Borrower and an Account Debtor where payments shall be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes called contracts accounts receivable, progress billings, milestone billings, or fulfillment contracts);

 

(m)                             Accounts owing from an Account Debtor the amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings);

 

(n)                                 Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust;

 

(o)                                 Accounts owing from an Account Debtor that has been invoiced for goods that have not been shipped to the Account Debtor unless Bank, Borrower, and the Account Debtor have entered into an agreement acceptable to Bank in its sole discretion wherein the Account Debtor acknowledges that (i) it has title to and has ownership of the goods wherever located, (ii) a bona fide sale of the goods has occurred, and (iii) it owes payment for such goods in accordance with invoices from Borrower (sometimes called “bill and hold” accounts);

 

(p)                                 Accounts for which the Account Debtor has not been invoiced;

 

(q)                                 Accounts that represent non-trade receivables or that are derived by means other than in the ordinary course of Borrower’s business;

 

(r)                                    Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond one hundred twenty (120) days;

 

(s)                                   Accounts to the extent of chargebacks or others payment deductions taken by an Account Debtor;

 

(t)                                    Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business;

 

(u)                                 Accounts owing from an Account Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue);

 

(v)                                 Accounts owing from an Account Debtor, whose total obligations to Borrower exceed thirty-five percent (35%) of all Accounts, for the amounts that exceed that percentage, unless Bank approves in writing; and

 

(w)                               Accounts for which Bank in its good faith business judgment determines collection to be doubtful.

 

“Eligible Assignee” is (i) a Lender, (ii) an Affiliate of a Lender, (iii) an Approved Fund and (iv) any commercial bank, savings and loan association or savings bank or any other entity which is an “accredited investor” (as defined in Regulation D under the Securities Act of 1933, as amended) and which extends credit or buys loans as one of its businesses, including insurance companies, mutual funds, lease financing companies and commercial finance companies, in each case, which either (A) has a rating of BBB or higher from Standard & Poor’s Rating Group and a rating of Baa2 or higher from Moody’s Investors Service, Inc. at the date that it becomes a Lender or (B) has total assets in excess of Five Billion Dollars ($5,000,000,000.00), and in each case of clauses (i) through (iv), which, through its applicable lending office, is capable of lending to Borrower without the imposition of any withholding or similar taxes; provided that notwithstanding the foregoing, “Eligible Assignee” shall not include, unless an Event of Default has occurred and is continuing, (i) Borrower or any of Borrower’s Affiliates or Subsidiaries or (ii) a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent.  

 

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Notwithstanding the foregoing, (x) in connection with assignments by a Lender due to a forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or party and (y) in connection with a Lender’s own financing or securitization transactions, the restrictions set forth herein shall not apply and Eligible Assignee shall mean any Person or party providing such financing or formed to undertake such securitization transaction and any transferee of such Person or party upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; provided that no such sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any such Person or party for such Lender as a party hereto until Collateral Agent shall have received and accepted an effective assignment agreement from such Person or party in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee as Collateral Agent reasonably shall require.

 

“Equipment” is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.

 

“ERISA” is the Employee Retirement Income Security Act of 1974, as amended, and its regulations.

 

“Event of Default” is defined in Section 8.

 

“Excluded Taxes” means, with respect to a Lender, any Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes imposed as a result of such Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or that are imposed as a result of a present or former connection between such Lender and the jurisdiction imposing such Tax (other than connections arising solely from such Lender becoming a party to this Agreement and performing its obligations and receiving payments under such Agreement).

 

“Final Payment” is a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) due on the earliest to occur of (a) the Term Loan Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.1.2(c) or (d), equal to the original principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their respective Pro Rata Shares.

 

“Final Payment Percentage” is seven percent (7.00%).

 

“Foreign Currency” means lawful money of a country other than the United States.

 

“Foreign Subsidiary” is a Subsidiary that is not an entity organized under the laws of the United States or any territory thereof.

 

“Funding Date” is any date on which a Credit Extension is made to or on account of Borrower which shall be a Business Day.

 

“FX Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency on a specified date.

 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession in the United States, which are applicable to the circumstances as of the date of determination.

 

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“General Intangibles” are all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship and derivative work, whether published or unpublished, any patents, trademarks, service marks and, to the extent permitted under applicable law, any applications therefor, whether registered or not, any trade secret rights, including any rights to unpatented inventions, payment intangibles, royalties, contract rights, goodwill, franchise agreements, purchase orders, customer lists, route lists, telephone numbers, domain names, claims, income and other tax refunds, security and other deposits, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.

 

“German Share Pledge Documents” is that certain Share Pledge Agreement by and among ConforMIS, Lenders and ConforMIS Europe, together with such other agreements, instruments and documents executed and or delivered in connection therewith.

 

“Governmental Approval” is 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” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Guarantor” is any Person providing a Guaranty in favor of Collateral Agent.

 

“Guaranty” is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise supplemented.

 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations (as defined under GAAP; provided that, in the event any change in GAAP after the Effective Date recharacterizes the treatment of real estate leases or operating leases as capital leases, then for the purposes of the term “Indebtedness” in this Agreement (i) in respect of real estate leases treated as capital leases, real estate leases shall not be deemed “Indebtedness” hereunder and (ii) in respect of operating leases treated as capital leases, operating leases in effect as of the date of such change in GAAP (the “Existing Operating Leases”) shall not be deemed “Indebtedness” hereunder; provided, however, operating leases entered into after the date of such change in GAAP (the “New Operating Leases”) shall be deemed “Indebtedness” and must be approved as such in writing by Collateral Agent and the Required Lenders; and (d) Contingent Obligations.  It is understood and agreed that the obligations under the Lang Agreement, the Vertegen License Agreement and Scientific Advisory Board Agreements do not constitute Indebtedness.

 

“Indemnified Person” is defined in Section 12.3.

 

“Insolvency Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings seeking reorganization, arrangement, or other relief.

 

“Insolvent” means not Solvent.

 

“Intellectual Property” means all of Borrower’s or any Subsidiary’s right, title and interest in and to the following:

 

(a)                                 its Copyrights, Trademarks and Patents;

 

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(b)                                 any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating manuals;

 

(c)                                  any and all source code;

 

(d)                                 any and all design rights which may be available to Borrower;

 

(e)                                  any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and

 

(f)                                   all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

 

“Inventory” is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of any Person’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance or capital contribution to any Person.

 

“IPO” means the initial, underwritten public offering and sale of Borrower’s common stock pursuant to an effective registration statement under the Securities Exchange Act of 1934.

 

“Key Person” is each of Borrower’s (i) President and Chief Executive Officer, who is Philipp Lang as of the Effective Date and (ii) Chief Financial Officer and Treasurer, who is Paul Weiner as of the Effective Date.

 

“Lang Agreement” means that certain Revenue Sharing Agreement dated as of January 15, 2008 by and between Dr. Lang and the Borrower, as amended from time to time.

 

“Lender” is any one of the Lenders.

 

“Lenders” are the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party to this Agreement pursuant to Section 12.2.

 

“Lenders’ Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses, as well as appraisal fees, fees incurred on account of lien searches, inspection fees, and filing fees) for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred by Collateral Agent and/or the Lenders in connection with the Loan Documents.

 

“Letter of Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an application, guarantee, indemnity, or similar agreement.

 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest, or other encumbrance of any kind, whether voluntarily incurred or arising by operation of law or otherwise against any property.

 

“Loan Documents” are, collectively, this Agreement, the Warrants, the Perfection Certificates, each Compliance Certificate, the UK Share Charge Documents, German Share Pledge Documents, each Disbursement Letter, each Loan Payment/Advance Request Form and any Transaction Report, any Bank Services Agreement, the Post Closing Letter, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other 

 

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Person, and any other present or future agreement entered into by Borrower, any Guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified.

 

“Loan Payment/Advance Request Form” is that certain form attached hereto as Exhibit B-2.

 

“Material Adverse Change” is (a) a material impairment in the perfection or priority of Collateral Agent’s or a Lender’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations or condition (financial or otherwise) of Borrower and its Subsidiaries taken as a whole; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

 

“Obligations” are all of Borrower’s obligations to pay when due any debts, principal, interest, Lenders’ Expenses, the Prepayment Fee, the Final Payment, the Revolving Loan Fee and other amounts Borrower owes the Lenders now or later, in connection with, related to, following, or arising from, out of or under, this Agreement or, the other Loan Documents (other than the Warrants), or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin (whether or not allowed) and debts, liabilities, or obligations of Borrower assigned to the Lenders and/or Collateral Agent, and the performance of Borrower’s duties under the Loan Documents (in each case, other than the Warrants).

 

“OFAC” is the U.S. Department of Treasury Office of Foreign Assets Control.

 

“OFAC Lists” are, collectively, the Specially Designated Nationals and Blocked Persons List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and regulations of OFAC or pursuant to any other applicable Executive Orders.

 

“Operating Documents” are, for any Person, such Person’s formation documents, as certified by the Secretary of State (or equivalent agency) of such Person’s jurisdiction of organization on a date that is no earlier than thirty (30) days prior to the Effective Date, and, (a) if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments or modifications thereto.

 

“Patents” means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same.

 

“Payment Date” is (i) with respect to Advances, the first calendar day of each month and (ii) with respect to the Term Loans, the first (1st) calendar day of each calendar month, commencing with the first (1st) calendar day of the first (1st) calendar month following the Effective Date.

 

“Perfection Certificate” and “Perfection Certificates” is defined in Section 5.1.

 

“Permitted Indebtedness” is:

 

(a)                                 Borrower’s Indebtedness to the Lenders and Collateral Agent under this Agreement and the other Loan Documents;

 

(b)                                 Indebtedness existing on the Effective Date (plus interest thereon) and disclosed on the Perfection Certificate(s) (including Borrower’s capital lease obligations owing to Mass Development Finance Agency (the “Mass Development Debt”));

 

(c)                                  Subordinated Debt;

 

(d)                                 unsecured Indebtedness to trade creditors incurred in the ordinary course of business;

 

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(e)                                  Indebtedness consisting of capital lease obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the aggregate outstanding principal amount of all such Indebtedness does not exceed Five Hundred Thousand Dollars ($500,000.00) at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value ofthe property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made); provided that, in the event any change in GAAP after the Effective Date recharacterizes the treatment of real estate leases or operating leases as capital leases, then for the purposes of this Agreement (i) in respect of real estate leases treated as capital leases, the limitation set forth in this clause (e) shall not apply to limit the amount of such Indebtedness related to real estate leases and (ii) in respect of operating leases treated as capital leases, the limitation set forth in this clause (e) shall not apply to limit the amount of such Indebtedness related to the Existing Operating Leases;

 

(f)                                   Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of Borrower’s business;

 

(g)                                  extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (f) above, provided that the principal amount thereof is not increased or the terms thereof are not modified to impose materially more burdensome terms upon Borrower, or its Subsidiary, as the case may be; and

 

(h)                                 Indebtedness permitted under clause (f) in the definition of Permitted Investments.

 

“Permitted Investments” are:

 

(a)                                 Investments disclosed on the Perfection Certificate(s) and existing on the Effective Date;

 

(b)                                 (i) Investments consisting of cash and Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Collateral Agent;

 

(c)                                  Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of Borrower;

 

(d)                                 Investments consisting of Collateral Accounts maintained in accordance with Section 6.7;

 

(e)                                  Investments in connection with Transfers permitted by Section 7.1;

 

(f)                                   Investments (i) by Borrower in ConforMIS Europe not to exceed One Million Dollars ($1,000,000.00) in the aggregate in any fiscal year, (ii) by Borrower in ConforMIS UK not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate in any fiscal year, (iii) by Borrower in ConforMIS Hong Kong not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate in any fiscal year and (iv)by Subsidiaries in other Subsidiaries not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate in any fiscal year or in Borrower;

 

(g)                                  (Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; not to exceed One Hundred Thousand Dollars ($100,000.00) in the aggregate for (i) and (ii) in any fiscal year;

 

(h)                                 Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

 

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(i)                                     Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business; provided that this paragraph (h) shall not apply to Investments of Borrower in any Subsidiary;

 

(j)                                    non-cash Investments in joint ventures or strategic alliances in the ordinary course of Borrower’s business consisting of the non-exclusive licensing of technology, the development of technology or the providing of technical support.

 

“Permitted Licenses” are (A) licenses of over-the-counter software that is commercially available to the public, and (B) non-exclusive licenses and exclusive licenses (but specifically excluding exclusive licenses relating to Borrower’s patient specific implants or for therapeutic uses relating to the treatment of knees and hips) for the use of the Intellectual Property of Borrower or any of its Subsidiaries (i) entered into in the ordinary course of business or (ii) in connection with settlement agreements relating to the infringement of the Intellectual Property of Borrower or any of its Subsidiaries, and pursuant to which Borrower or any of its Subsidiaries license Intellectual Property to the opposing party, provided, that, with respect to each such license described in clause (B), (i) no Event of Default has occurred or is continuing at the time of such license; (ii) with respect to non-exclusive licenses, the license constitutes an arms-length transaction, the terms of which, on their face, do not provide for a sale or assignment of any Intellectual Property and do not restrict the ability of Borrower or any of its Subsidiaries, as applicable, to pledge, grant a security interest in or lien on, or assign or otherwise Transfer any Intellectual Property; (iii) in the case of any exclusive license, (x) Borrower delivers ten (10) days’ prior written notice and a brief summary of the terms of the proposed license to Collateral Agent and the Lenders and delivers to Collateral Agent and the Lenders copies of the final executed licensing documents in connection with the exclusive license promptly upon consummation thereof, (y) any such license is made in connection with a bona fide corporate collaboration or partnership, and is approved by Borrower’s (or the applicable Subsidiary’s) board of directors, and (z) any such license could not result in a legal transfer of title of the licensed property but may be exclusive in respects other than territory and may be exclusive as to territory only as to discrete geographical areas outside of the United States; and (iv) all upfront payments, royalties, milestone payments or other proceeds arising from the licensing agreement that are payable to Borrower or any of its Subsidiaries are paid to a Deposit Account that is governed by a Control Agreement.

 

“Permitted Liens” are:

 

(a)                                 Liens existing on the Effective Date and disclosed on the Perfection Certificates or arising under this Agreement and the other Loan Documents;

 

(b)                                 Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;

 

(c)                                  liens securing Indebtedness permitted under clause (e) of the definition of “Permitted Indebtedness” and the Mass Development Debt (as defined in clause (b) of the definition of “Permitted Indebtedness”); provided that (i) such liens exist prior to the acquisition of, or attach substantially simultaneous with, or within twenty (20) days after the, acquisition, lease, repair, improvement or construction of, such property financed or leased by such Indebtedness and (ii) such liens do not extend to any property of Borrower other than the property (and proceeds thereof) acquired, leased or built, or the improvements or repairs, financed by such Indebtedness;

 

(d)                                 Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business so long as such Liens attach only to Inventory, securing liabilities in the aggregate amount not to exceed Twenty Five Thousand Dollars ($25,000.00), and which are not delinquent or remain payable without penalty or which are being contested in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto;

 

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(e)                                  Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations incurred in the ordinary course of business (other than Liens imposed by ERISA);

 

(f)                                   Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase;

 

(g)                                  leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property (other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Collateral Agent or any Lender a security interest therein;

 

(h)                                 banker’s liens, rights of setoff and Liens in favor of financial institutions incurred in the ordinary course of business arising in connection with Borrower’s and its Subsidiaries’ deposit accounts or securities accounts held at such institutions solely to secure payment of fees and similar costs and expenses and provided such accounts are maintained in compliance with Section 6.7(b) hereof;

 

(i)                                     Liens arising from judgments, decrees or attachments in circumstances not constituting an Event of Default under Section 8.4 or 8.7; and

 

(j)                                    Liens consisting of Permitted Licenses.

 

“Person” is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.

 

“Post Closing Letter” is that certain Post Closing Letter dated as of the Effective Date by and between Collateral Agent and Borrower.

 

“Prepayment Fee” is, with respect to any Term Loan subject to prepayment prior to the Term Loan Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to (i) three percent (3.00%) of the principal amount of such Term Loan prepaid if the prepayment is made on or prior to the first anniversary of the Funding Date of such Term Loan, (ii) two percent (2.00%) of the principal amount of such Term Loan prepaid if the prepayment is made after the first anniversary of the Funding Date of such Term Loan but on or prior to the second anniversary of the Funding Date of such Term Loan or (iii) one percent (1.00%) of the principal amount of such Term Loan prepaid if the prepayment is made after the second anniversary of the Funding Date of such Term Loan but on or prior to the third anniversary of the Funding Date of such Term Loan.

 

“Prime Rate” is the rate of interest per annum from time to time published in the money rates section of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect; provided that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of interest per annum announced by Bank as its prime rate in effect at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to debtors).

 

“Pro Rata Share” is, as of any date of determination, with respect to each Lender, a percentage (expressed as a decimal, rounded to the ninth decimal place) determined by dividing the outstanding principal amount of Term Loans held by such Lender by the aggregate outstanding principal amount of all Term Loans.

 

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“Quick Assets” is, on any date, Borrower’s unrestricted cash and Cash Equivalents maintained with Bank and Bank’s Affiliates plus net billed accounts receivable.

 

“Registered Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter be made

 

“Required Lenders” means (i) for so long as all of the Persons that are Lenders on the Effective Date (each an “Original Lender”) have not assigned or transferred any of their interests in their Term Loan, Lenders holding one hundred percent (100%) of the aggregate outstanding principal balance of the Term Loan, or (ii) at any time from and after any Original Lender has assigned or transferred any interest in its Term Loan, Lenders holding at least sixty six percent (66%) of the aggregate outstanding principal balance of the Term Loan and, in respect of this clause (ii), (A) each Original Lender that has not assigned or transferred any portion of its Term Loan, (B) each assignee or transferee of an Original Lender’s interest in the Term Loan, but only to the extent that such assignee or transferee is an Affiliate or Approved Fund of such Original Lender, and (C) any Person providing financing to any Person described in clauses (A) and (B) above; provided, however, that this clause (C) shall only apply upon the occurrence of a default, event of default or similar occurrence with respect to such financing.

 

“Requirement of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Reserves” means, as of any date of determination, such amounts as Bank may from time to time establish and revise in its good faith business judgment, reducing the amount of Advances and other financial accommodations which would otherwise be available to Borrower (a) to reflect events, conditions, contingencies or risks which, as determined by Bank in its good faith business judgment, do or may adversely affect (i) the Collateral or any other property which is security for the Obligations or its value (including without limitation any increase in delinquencies of Accounts), (ii) the assets, business or prospects of Borrower or any Guarantor, or (iii) the security interests and other rights of Bank in the Collateral (including the enforceability, perfection and priority thereof); or (b) to reflect Bank’s good faith belief that any collateral report or financial information furnished by or on behalf of Borrower or any Guarantor to Bank is or may have been incomplete, inaccurate or misleading in any material respect; or (c) in respect of any state of facts which Bank determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute an Event of Default.

 

“Responsible Officer” is any of the President, Chief Executive Officer, or Chief Financial Officer of Borrower acting alone.

 

“Revenue Milestone” means the achievement by Borrower of least Seventy Six Million Dollars ($76,000,000.00) in Revenue (determined in accordance with GAAP), measured on a trailing twelve (12) month basis for the twelve (12) month period ending May 31, 2016.

 

“Revolving Line” is an Advance or Advances in an amount up or equal to Five Million Dollars ($5,000,000.00).

 

“Revolving Line Maturity Date” is the date which is the earliest to occur of (a) November 7, 2019; or (b) early termination of this Agreement, whether as a result of acceleration, prepayment or otherwise.

 

“Scientific Advisory Board Agreement” is an agreement entered into from time to time in the ordinary course of business by the Borrower or any of its Subsidiaries with advisors pursuant to which the Borrower or its Subsidiaries are required to pay compensation based on a combination of stock-based compensation, revenue share and hourly cash compensation for additional services, and to pay the reasonable, ordinary and necessary travel and other expenses.

 

“Secured Promissory Note” is defined in Section 2.3.

 

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“Secured Promissory Note Record” is a record maintained by each Lender with respect to the outstanding Obligations owed by Borrower to Lender and credits made thereto.

 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be made.

 

“Shares” is one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or Borrower’s Subsidiary, in any Subsidiary; provided that (i) no more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower in each of ConforMIS Europe and ConforMIS UK shall be included as “Shares”, and (ii) in the event Borrower, demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary (including ConforMIS Hong Kong) which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S.  Internal Revenue Code, “Shares” of such Subsidiary shall mean sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary.

 

“Solvent” is, with respect to any Person:  the fair salable value of such Person’s consolidated assets (including goodwill minus disposition costs) exceeds the fair value of such Person’s liabilities; such Person is not left with unreasonably small capital after the transactions in this Agreement; and such Person is able to pay its debts (including trade debts) as they mature.

 

“Streamline Period” is any period of time, on and after the Effective Date, where Borrower has maintained a ratio of (i) Quick Assets to (ii) Current Liabilities minus the current portion of Deferred Revenue of greater than or equal to 1.00 to 1.00 at all times during the prior two (2) consecutive calendar months and provided further that upon the occurrence of an Event of Default any Streamline Period then in effect shall immediately terminate and Borrower shall be required to maintain the foregoing financial ratio for two (2) consecutive months thereafter before a new Streamline Period begins.

 

“Subordinated Debt” is indebtedness incurred by Borrower or any of its Subsidiaries subordinated to all Indebtedness of Borrower and/or its Subsidiaries to the Lenders (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Collateral Agent and the Lenders entered into between Collateral Agent, Borrower, and/or any of its Subsidiaries, and the other creditor), on terms acceptable to Collateral Agent and the Lenders.

 

“Subsidiary” is, with respect to any Person, any Person of which more than fifty percent (50%) of the voting stock or other equity interests (in the case of Persons other than corporations) is owned or controlled, directly or indirectly, by such Person or through one or more intermediaries.

 

“Term Loan” is defined in Section 2.1.2(a)(ii) hereof.

 

“Term A Loan” is defined in Section 2.1.2(a)(i) hereof.

 

“Term B Loan” is defined in Section 2.1.2(a)(ii) hereof.

 

“Term Loan Commitment” is, for any Lender, the obligation of such Lender to make a Term Loan, up to the principal amount shown on Schedule 1.1.  “Term Loan Commitments” means the aggregate amount of such commitments of all Lenders.

 

“Term Loan Maturity Date” is the date which is the earliest to occur of (a) November 1, 2019, or (b) early termination of this Agreement, whether as a result of acceleration, prepayment or otherwise.

 

“Termination Fee” is defined in Section 12.1.

 

42

 

“Total Liabilities” is on any day, obligations that should, under GAAP, be classified as liabilities on Borrower’s consolidated balance sheet, including all Indebtedness

 

“Trademarks” means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.

 

“Transitory Collateral” are trays, instruments and customized implants that are located at or in transit to hospitals, surgery centers and medical locations, in the ordinary course of business, in advance of patient procedures; Collateral held for repair or in transit; and laptops, peripherals and other equipment maintained with employees from time to time in the ordinary course of business.

 

“Transfer” is defined in Section 7.1.

 

“Treasury Note Maturity” is thirty-six (36) months.

 

“UK Charge Over Shares” means the 65% charge over shares dated on or around the date of this Agreement and made between ConforMIS and the Collateral Agent in respect of the shares that Borrower holds in the capital of ConforMIS UK.

 

“UK Share Charge Documents” is that certain UK Charge Over Shares, Stock Certificate and Stock Transfer Form, together with such other agreements, instruments and documents executed and or delivered in connection therewith, each in form and content reasonably acceptable to Lenders.

 

“Vertegen License Agreement” means that certain license agreement dated as of April 10, 2007, as amended from time to time, by and between Vertegen, Inc. and Borrower.

 

“Warrants” are those certain Warrants to Purchase Stock dated as of the Effective Date, or any date thereafter, issued by Borrower in favor of each Lender or such Lender’s Affiliates.

 

“Wells Fargo Accounts” means those certain Collateral Accounts maintained by Borrower at Wells Fargo Bank as of the Effective Date and disclosed in the Perfection Certificate; provided that (i) the aggregate balance of such accounts does not at any time exceed One Million Dollars ($1,000,000.00) and (ii) such accounts are closed within one hundred eighty (180) days after the Effective Date.

 

“Wells Fargo Cash Collateral Account” is defined in Section 6.7(a).

 

[Balance of Page Intentionally Left Blank]

 

43

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.

 

 

	
BORROWER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CONFORMS, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Philipp Lang
    	
 
    
	
Name:
    	
Philipp   Lang
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
IMATX, INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Philipp Lang
    	
 
    
	
Name:
    	
Philipp   Lang
    	
 
    
	
Title:
    	
President   and Chief Executive Officer
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
COLLATERAL   AGENT AND LENDER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
SILICON   VALLEY BANK
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Elusk Hayes
    	
 
    
	
Name:
    	
Elusk   Hayes
    	
 
    
	
Title:
    	
Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
LENDER:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
OXFORD   FINANCE LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Mark Davis
    	
 
    
	
Name:
    	
Mark   Davis
    	
 
    
	
Title:
    	
Vice   President — Finance, Secretary & Treasurer
    	
 
    
					

 

[Signature Page to Loan and Security Agreement]

 

 

SCHEDULE 1.1

 

Lenders and Commitments

 

Revolving Line

 

	
Lender
    	
 
    	
Revolving Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
SILICON VALLEY BANK
    	
 
    	
$
    	
5,000,000.00
    	
 
    	
100.00
    	
%
    
	
TOTAL
    	
 
    	
$
    	
5,000,000.00
    	
 
    	
100.00
    	
%
    

 

Term A Loans

 

	
Lender
    	
 
    	
Term Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
SILICON VALLEY BANK
    	
 
    	
$
    	
3,750,000
    	
 
    	
37.50
    	
%
    
	
OXFORD FINANCE LLC
    	
 
    	
$
    	
6,250,000
    	
 
    	
62.50
    	
%
    
	
TOTAL
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
100.00
    	
%
    

 

Term B Loans

 

	
Lender
    	
 
    	
Term Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
SILICON VALLEY BANK
    	
 
    	
$
    	
3,750,000
    	
 
    	
37.50
    	
%
    
	
OXFORD FINANCE LLC
    	
 
    	
$
    	
6,250,000
    	
 
    	
62.50
    	
%
    
	
TOTAL
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
100.00
    	
%
    

 

Aggregate (all Term Loans)

 

	
Lender
    	
 
    	
Term Loan Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
SILICON VALLEY BANK
    	
 
    	
$
    	
7,500,000
    	
 
    	
37.50
    	
%
    
	
OXFORD FINANCE LLC
    	
 
    	
$
    	
12,500,000
    	
 
    	
62.50
    	
%
    
	
TOTAL
    	
 
    	
$
    	
20,000,000.00
    	
 
    	
100.00
    	
%
    

 

 

EXHIBIT A

 

Description of Collateral

 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) equipment subject to a Lien described in clause (c) of the definition of Permitted Liens if the granting of a Lien in such equipment is prohibited by or would constitute a default under the agreement governing such equipment (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such equipment or other property shall automatically be subject to the security interest granted in favor of Collateral Agent and each Lender hereunder and become part of the Collateral without any action by Borrower, Collateral Agent or any Lender, (ii) more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower (the “Shares”) in each of ConforMIS Europe and ConforMIS UK, and, in the event Borrower demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary, (iii) any license or contract, in each case if the granting of a Lien in such license or contract is prohibited by or would constitute a default under the agreement governing such license or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such license or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral”, (iv) the Wells Fargo Cash Collateral Account and (v) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s and each Lender’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property.

 

 

EXHIBIT B-1

 

Form of Disbursement Letter

 

[see attached]

 

 

DISBURSEMENT LETTER

 

[             ], 2014

 

The undersigned, being the duly elected and acting                                  of CONFROMIS, INC., a Delaware corporation with offices located at 28 Crosby Drive, Bedford, MA 01730 (“Borrower”), does hereby certify, for itself and on behalf of all Borrowers, to SILICON VALLEY BANK (“Bank” and “Lender”), as collateral agent (the “Collateral Agent”) in connection with that certain Loan and Security Agreement dated as of [             ], 2014, by and among Borrower, Collateral Agent and the Lenders from time to time party thereto (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that:

 

1.                                      The representations and warranties made by Borrower in Section 5 of the Loan Agreement and in the other Loan Documents are true and correct in all material respects as of the date hereof.

 

2.                                      No event or condition has occurred and is continuing that would constitute an Event of Default under the Loan Agreement or any other Loan Document.

 

3.                                      Borrower is in compliance with the covenants and requirements contained in Sections 4, 6 and 7 of the Loan Agreement.

 

4.                                      All conditions referred to in Section 3 of the Loan Agreement to the making of the Loan to be made on or about the date hereof have been satisfied or waived by Collateral Agent.

 

5.                                      No Material Adverse Change has occurred.

 

6.                                      The undersigned is a Responsible Officer.

 

[Balance of Page Intentionally Left Blank]

 

 

7.                                      The proceeds of the Term A Loan shall be disbursed as follows:

 

	
Disbursement from SVB:
    	
 
    	
 
    	
 
    
	
Loan Amount
    	
 
    	
$
    	
 
    	
 
    
	
Plus:
    	
 
    	
 
    	
 
    
	
—Deposit Received
    	
 
    	
$
    	
 
    	
 
    
	
Less:
    	
 
    	
 
    	
 
    
	
—Facility Fee
    	
 
    	
$
    	
(        
    	
)
    
	
[—Interim Interest
    	
 
    	
$
    	
(        
    	
)]
    
	
—Lender’s Legal Fees
    	
 
    	
$
    	
(*      
    	
)
    
	
Net Proceeds due from SVB:
    	
 
    	
$
    	
 
    	
 
    
	
Disbursement from Oxford:
    	
 
    	
 
    	
 
    
	
Loan Amount
    	
 
    	
$
    	
 
    	
 
    
	
Plus:
    	
 
    	
 
    	
 
    
	
—Deposit Received
    	
 
    	
$
    	
 
    	
 
    
	
Less:
    	
 
    	
 
    	
 
    
	
—Facility Fee
    	
 
    	
$
    	
(        
    	
)
    
	
[—Interim Interest
    	
 
    	
$
    	
(        
    	
)]
    
	
Net Proceeds due from Oxford:
    	
 
    	
$
    	
 
    	
 
    
	
TOTAL TERM A LOAN NET PROCEEDS   FROM LENDERS
    	
 
    	
$
    	
 
    	
 
    

 

8.                                      The Term A Loan shall amortize in accordance with the Amortization Table attached hereto.

 

9.                                      The aggregate net proceeds of the Term Loans shall be transferred to the Designated Deposit Account as follows:

 

	
Account   Name:
    	
CONFORMIS, INC.
    
	
 
    	
 
    
	
Bank   Name:
    	
Silicon   Valley Bank
    
	
 
    	
 
    
	
Bank   Address:
    	
[3003   Tasman Drive
    
	
 
    	
Santa   Clara, California 95054]
    
	
 
    	
 
    
	
 
    	
 
    
	
Account   Number:
    	
 
    
	
 
    	
 
    
	
ABA   Number:
    	
 
    

 

[Balance of Page Intentionally Left Blank]

 

*  Legal fees and costs are through the Effective Date.  Post-closing legal fees and costs, payable after the Effective Date, to be invoiced and paid post-closing.

 

 

	
Dated   as of the date first set forth above.
    	
 
    
	
 
    	
 
    
	
BORROWER:
    	
 
    
	
 
    	
 
    
	
CONFORMIS, INC.   on behalf of itself and all
    	
 
    
	
Borrowers
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
COLLATERAL AGENT AND LENDER:
    	
 
    
	
 
    	
 
    
	
SILICON   VALLEY BANK
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
LENDER:
    	
 
    
	
 
    	
 
    
	
OXFORD   FINANCE LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    

 

[Signature Page to Disbursement Letter]

 

 

AMORTIZATION TABLE

 

(Term [A][B] Loan)

 

[see attached]

 

 

Oxford Finance LLC and SVB

Amortization Table

ConforMIS AA01

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
36 IO + 24 PI
    	
 
    	
 
    
	
Payment:
    	
$448,860.00 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$700,000.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
10,000,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$48,333.33 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
388,443.34
    	
 
    	
$
    	
9,611,556.66
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
9,611,556.66
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
58,069.82
    	
 
    	
$
    	
390,790.18
    	
 
    	
$
    	
9,220,766.48
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
9,220,766.48
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
55,708.80
    	
 
    	
$
    	
393,151.20
    	
 
    	
$
    	
8,827,615.28
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
8,827,615.28
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
53,333.51
    	
 
    	
$
    	
395,526.49
    	
 
    	
$
    	
8,432,088.79
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
8,432,088.79
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
50,943.87
    	
 
    	
$
    	
397,916.13
    	
 
    	
$
    	
8,034,172.66
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
8,034,172.66
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
48,539.79
    	
 
    	
$
    	
400,320.21
    	
 
    	
$
    	
7,633,852.45
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
7,633,852.45
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
46,121.19
    	
 
    	
$
    	
402,738.81
    	
 
    	
$
    	
7,231,113.64
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
7,231,113.64
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
43,687.98
    	
 
    	
$
    	
405,172.02
    	
 
    	
$
    	
6,825,941.61
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
6,825,941.61
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
41,240.06
    	
 
    	
$
    	
407,619.94
    	
 
    	
$
    	
6,418,321.68
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
6,418,321.68
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
38,777.36
    	
 
    	
$
    	
410,082.64
    	
 
    	
$
    	
6,008,239.03
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
6,008,239.03
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
36,299.78
    	
 
    	
$
    	
412,560.22
    	
 
    	
$
    	
5,595,678.81
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
5,595,678.81
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
33,807.23
    	
 
    	
$
    	
415,052.78
    	
 
    	
$
    	
5,180,626.03
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
5,180,626.03
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
31,299.62
    	
 
    	
$
    	
417,560.39
    	
 
    	
$
    	
4,763,065.65
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
4,763,065.65
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
28,776.85
    	
 
    	
$
    	
420,083.15
    	
 
    	
$
    	
4,342,982.50
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
4,342,982.50
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
26,238.85
    	
 
    	
$
    	
422,621.15
    	
 
    	
$
    	
3,920,361.35
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
3,920,361.35
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
23,685.52
    	
 
    	
$
    	
425,174.49
    	
 
    	
$
    	
3,495,186.87
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
3,495,186.87
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
21,116.75
    	
 
    	
$
    	
427,743.25
    	
 
    	
$
    	
3,067,443.62
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
3,067,443.62
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
18,532.47
    	
 
    	
$
    	
430,327.53
    	
 
    	
$
    	
2,637,116.09
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
2,637,116.09
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
15,932.58
    	
 
    	
$
    	
432,927.43
    	
 
    	
$
    	
2,204,188.66
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
2,204,188.66
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
13,316.97
    	
 
    	
$
    	
435,543.03
    	
 
    	
$
    	
1,768,645.63
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
1,768,645.63
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
10,685.57
    	
 
    	
$
    	
438,174.43
    	
 
    	
$
    	
1,330,471.20
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
1,330,471.20
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
8,038.26
    	
 
    	
$
    	
440,821.74
    	
 
    	
$
    	
889,649.46
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
889,649.46
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
5,374.97
    	
 
    	
$
    	
443,485.04
    	
 
    	
$
    	
446,164.43
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
446,164.43
    	
 
    	
$
    	
448,860.00
    	
 
    	
$
    	
2,695.58
    	
 
    	
$
    	
446,164.43
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
700,000.00
    	
 
    	
$
    	
700,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
13,587,223.38
    	
 
    	
$
    	
3,587,223.38
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
 
    	
 
    

 

 

Oxford Finance LLC

Amortization Table

ConforMIS AA01a

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
36 IO + 24 PI
    	
 
    	
 
    
	
Payment:
    	
$145,879.50 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$227,500.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,250,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$15,708.33 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
126,244.08
    	
 
    	
$
    	
3,123,755.92
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
3,123,755.92
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
18,872.69
    	
 
    	
$
    	
127,006.81
    	
 
    	
$
    	
2,996,749.11
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
2,996,749.11
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
18,105.36
    	
 
    	
$
    	
127,774.14
    	
 
    	
$
    	
2,868,974.97
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
2,868,974.97
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
17,333.39
    	
 
    	
$
    	
128,546.11
    	
 
    	
$
    	
2,740,428.86
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
2,740,428.86
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
16,556.76
    	
 
    	
$
    	
129,322.74
    	
 
    	
$
    	
2,611,106.11
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
2,611,106.11
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
15,775.43
    	
 
    	
$
    	
130,104.07
    	
 
    	
$
    	
2,481,002.05
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
2,481,002.05
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
14,989.39
    	
 
    	
$
    	
130,890.11
    	
 
    	
$
    	
2,350,111.93
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
2,350,111.93
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
14,198.59
    	
 
    	
$
    	
131,680.91
    	
 
    	
$
    	
2,218,431.02
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
2,218,431.02
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
13,403.02
    	
 
    	
$
    	
132,476.48
    	
 
    	
$
    	
2,085,954.54
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
2,085,954.54
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
12,602.64
    	
 
    	
$
    	
133,276.86
    	
 
    	
$
    	
1,952,677.69
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
1,952,677.69
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
11,797.43
    	
 
    	
$
    	
134,082.07
    	
 
    	
$
    	
1,818,595.61
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
1,818,595.61
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
10,987.35
    	
 
    	
$
    	
134,892.15
    	
 
    	
$
    	
1,683,703.46
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,683,703.46
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
10,172.38
    	
 
    	
$
    	
135,707.13
    	
 
    	
$
    	
1,547,996.34
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
1,547,996.34
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
9,352.48
    	
 
    	
$
    	
136,527.02
    	
 
    	
$
    	
1,411,469.31
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
1,411,469.31
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
8,527.63
    	
 
    	
$
    	
137,351.87
    	
 
    	
$
    	
1,274,117.44
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
1,274,117.44
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
7,697.79
    	
 
    	
$
    	
138,181.71
    	
 
    	
$
    	
1,135,935.73
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
1,135,935.73
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
6,862.95
    	
 
    	
$
    	
139,016.56
    	
 
    	
$
    	
996,919.18
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
996,919.18
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
6,023.05
    	
 
    	
$
    	
139,856.45
    	
 
    	
$
    	
857,062.73
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
857,062.73
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
5,178.09
    	
 
    	
$
    	
140,701.41
    	
 
    	
$
    	
716,361.32
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
716,361.32
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
4,328.02
    	
 
    	
$
    	
141,551.48
    	
 
    	
$
    	
574,809.83
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
574,809.83
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
3,472.81
    	
 
    	
$
    	
142,406.69
    	
 
    	
$
    	
432,403.14
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
432,403.14
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
2,612.44
    	
 
    	
$
    	
143,267.06
    	
 
    	
$
    	
289,136.07
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
289,136.07
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
1,746.86
    	
 
    	
$
    	
144,132.64
    	
 
    	
$
    	
145,003.44
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
145,003.44
    	
 
    	
$
    	
145,879.50
    	
 
    	
$
    	
876.06
    	
 
    	
$
    	
145,003.44
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
227,500.00
    	
 
    	
$
    	
227,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
4,415,847.60
    	
 
    	
$
    	
1,165,847.60
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
 
    	
 
    

 

 

Oxford Finance LLC

Amortization Table

ConforMIS AA01b

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
36 IO + 24 PI
    	
 
    	
 
    
	
Payment:
    	
$134,658.00 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$210,000.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,000,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$14,500.00 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
116,533.00
    	
 
    	
$
    	
2,883,467.00
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
2,883,467.00
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
17,420.95
    	
 
    	
$
    	
117,237.05
    	
 
    	
$
    	
2,766,229.95
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
2,766,229.95
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
16,712.64
    	
 
    	
$
    	
117,945.36
    	
 
    	
$
    	
2,648,284.58
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
2,648,284.58
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
16,000.05
    	
 
    	
$
    	
118,657.95
    	
 
    	
$
    	
2,529,626.64
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
2,529,626.64
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
15,283.16
    	
 
    	
$
    	
119,374.84
    	
 
    	
$
    	
2,410,251.80
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
2,410,251.80
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
14,561.94
    	
 
    	
$
    	
120,096.06
    	
 
    	
$
    	
2,290,155.73
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
2,290,155.73
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
13,836.36
    	
 
    	
$
    	
120,821.64
    	
 
    	
$
    	
2,169,334.09
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
2,169,334.09
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
13,106.39
    	
 
    	
$
    	
121,551.61
    	
 
    	
$
    	
2,047,782.48
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
2,047,782.48
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
12,372.02
    	
 
    	
$
    	
122,285.98
    	
 
    	
$
    	
1,925,496.50
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
1,925,496.50
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
11,633.21
    	
 
    	
$
    	
123,024.79
    	
 
    	
$
    	
1,802,471.71
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
1,802,471.71
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
10,889.93
    	
 
    	
$
    	
123,768.07
    	
 
    	
$
    	
1,678,703.64
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
1,678,703.64
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
10,142.17
    	
 
    	
$
    	
124,515.83
    	
 
    	
$
    	
1,554,187.81
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,554,187.81
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
9,389.88
    	
 
    	
$
    	
125,268.12
    	
 
    	
$
    	
1,428,919.69
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
1,428,919.69
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
8,633.06
    	
 
    	
$
    	
126,024.94
    	
 
    	
$
    	
1,302,894.75
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
1,302,894.75
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
7,871.66
    	
 
    	
$
    	
126,786.34
    	
 
    	
$
    	
1,176,108.41
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
1,176,108.41
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
7,105.65
    	
 
    	
$
    	
127,552.35
    	
 
    	
$
    	
1,048,556.06
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
1,048,556.06
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
6,335.03
    	
 
    	
$
    	
128,322.97
    	
 
    	
$
    	
920,233.09
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
920,233.09
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
5,559.74
    	
 
    	
$
    	
129,098.26
    	
 
    	
$
    	
791,134.83
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
791,134.83
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
4,779.77
    	
 
    	
$
    	
129,878.23
    	
 
    	
$
    	
661,256.60
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
661,256.60
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
3,995.09
    	
 
    	
$
    	
130,662.91
    	
 
    	
$
    	
530,593.69
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
530,593.69
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
3,205.67
    	
 
    	
$
    	
131,452.33
    	
 
    	
$
    	
399,141.36
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
399,141.36
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
2,411.48
    	
 
    	
$
    	
132,246.52
    	
 
    	
$
    	
266,894.84
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
266,894.84
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
1,612.49
    	
 
    	
$
    	
133,045.51
    	
 
    	
$
    	
133,849.33
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
133,849.33
    	
 
    	
$
    	
134,658.00
    	
 
    	
$
    	
808.67
    	
 
    	
$
    	
133,849.33
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
210,000.00
    	
 
    	
$
    	
210,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
4,076,167.01
    	
 
    	
$
    	
1,076,167.01
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
 
    	
 
    

 

 

SVB

Amortization Table

ConforMIS AA01

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
36 IO + 24 PI
    	
 
    	
 
    
	
Payment:
    	
$168,322.50 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$262,500.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,750,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$18,125.00 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
145,666.25
    	
 
    	
$
    	
3,604,333.75
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
3,604,333.75
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
21,776.18
    	
 
    	
$
    	
146,546.32
    	
 
    	
$
    	
3,457,787.43
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
3,457,787.43
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
20,890.80
    	
 
    	
$
    	
147,431.70
    	
 
    	
$
    	
3,310,355.73
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
3,310,355.73
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
20,000.07
    	
 
    	
$
    	
148,322.43
    	
 
    	
$
    	
3,162,033.30
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
3,162,033.30
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
19,103.95
    	
 
    	
$
    	
149,218.55
    	
 
    	
$
    	
3,012,814.75
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
3,012,814.75
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
18,202.42
    	
 
    	
$
    	
150,120.08
    	
 
    	
$
    	
2,862,694.67
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
2,862,694.67
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
17,295.45
    	
 
    	
$
    	
151,027.05
    	
 
    	
$
    	
2,711,667.61
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
2,711,667.61
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
16,382.99
    	
 
    	
$
    	
151,939.51
    	
 
    	
$
    	
2,559,728.10
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
2,559,728.10
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
15,465.02
    	
 
    	
$
    	
152,857.48
    	
 
    	
$
    	
2,406,870.63
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
2,406,870.63
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
14,541.51
    	
 
    	
$
    	
153,780.99
    	
 
    	
$
    	
2,253,089.64
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
2,253,089.64
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
13,612.42
    	
 
    	
$
    	
154,710.08
    	
 
    	
$
    	
2,098,379.55
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
2,098,379.55
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
12,677.71
    	
 
    	
$
    	
155,644.79
    	
 
    	
$
    	
1,942,734.76
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,942,734.76
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
11,737.36
    	
 
    	
$
    	
156,585.14
    	
 
    	
$
    	
1,786,149.62
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
1,786,149.62
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
10,791.32
    	
 
    	
$
    	
157,531.18
    	
 
    	
$
    	
1,628,618.44
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
1,628,618.44
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
9,839.57
    	
 
    	
$
    	
158,482.93
    	
 
    	
$
    	
1,470,135.51
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
1,470,135.51
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
8,882.07
    	
 
    	
$
    	
159,440.43
    	
 
    	
$
    	
1,310,695.07
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
1,310,695.07
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
7,918.78
    	
 
    	
$
    	
160,403.72
    	
 
    	
$
    	
1,150,291.36
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
1,150,291.36
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
6,949.68
    	
 
    	
$
    	
161,372.82
    	
 
    	
$
    	
988,918.53
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
988,918.53
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
5,974.72
    	
 
    	
$
    	
162,347.78
    	
 
    	
$
    	
826,570.75
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
826,570.75
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
4,993.86
    	
 
    	
$
    	
163,328.64
    	
 
    	
$
    	
663,242.11
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
663,242.11
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
4,007.09
    	
 
    	
$
    	
164,315.41
    	
 
    	
$
    	
498,926.70
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
498,926.70
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
3,014.35
    	
 
    	
$
    	
165,308.15
    	
 
    	
$
    	
333,618.55
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
333,618.55
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
2,015.61
    	
 
    	
$
    	
166,306.89
    	
 
    	
$
    	
167,311.66
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
167,311.66
    	
 
    	
$
    	
168,322.50
    	
 
    	
$
    	
1,010.84
    	
 
    	
$
    	
167,311.66
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
262,500.00
    	
 
    	
$
    	
262,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
5,095,208.77
    	
 
    	
$
    	
1,345,208.77
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
 
    	
 
    

 

 

Oxford Finance LLC and SVB

Amortization Table

ConforMIS AA01

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
24 IO + 36 PI
    	
 
    	
 
    
	
Payment:
    	
$309,915.29 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$700,000.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
10,000,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$48,333.33 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
10,000,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
60,416.67
    	
 
    	
$
    	
249,498.63
    	
 
    	
$
    	
9,750,501.37
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
9,750,501.37
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
58,909.28
    	
 
    	
$
    	
251,006.01
    	
 
    	
$
    	
9,499,495.36
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
9,499,495.36
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
57,392.78
    	
 
    	
$
    	
252,522.51
    	
 
    	
$
    	
9,246,972.85
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
9,246,972.85
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
55,867.13
    	
 
    	
$
    	
254,048.16
    	
 
    	
$
    	
8,992,924.69
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
8,992,924.69
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
54,332.25
    	
 
    	
$
    	
255,583.04
    	
 
    	
$
    	
8,737,341.65
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
8,737,341.65
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
52,788.11
    	
 
    	
$
    	
257,127.19
    	
 
    	
$
    	
8,480,214.47
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
8,480,214.47
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
51,234.63
    	
 
    	
$
    	
258,680.66
    	
 
    	
$
    	
8,221,533.80
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
8,221,533.80
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
49,671.77
    	
 
    	
$
    	
260,243.53
    	
 
    	
$
    	
7,961,290.28
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
7,961,290.28
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
48,099.46
    	
 
    	
$
    	
261,815.83
    	
 
    	
$
    	
7,699,474.45
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
7,699,474.45
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
46,517.66
    	
 
    	
$
    	
263,397.63
    	
 
    	
$
    	
7,436,076.82
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
7,436,076.82
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
44,926.30
    	
 
    	
$
    	
264,988.99
    	
 
    	
$
    	
7,171,087.82
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
7,171,087.82
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
43,325.32
    	
 
    	
$
    	
266,589.97
    	
 
    	
$
    	
6,904,497.85
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
6,904,497.85
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
41,714.67
    	
 
    	
$
    	
268,200.62
    	
 
    	
$
    	
6,636,297.23
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
6,636,297.23
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
40,094.30
    	
 
    	
$
    	
269,821.00
    	
 
    	
$
    	
6,366,476.24
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
6,366,476.24
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
38,464.13
    	
 
    	
$
    	
271,451.16
    	
 
    	
$
    	
6,095,025.07
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
6,095,025.07
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
36,824.11
    	
 
    	
$
    	
273,091.18
    	
 
    	
$
    	
5,821,933.89
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
5,821,933.89
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
35,174.18
    	
 
    	
$
    	
274,741.11
    	
 
    	
$
    	
5,547,192.78
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
5,547,192.78
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
33,514.29
    	
 
    	
$
    	
276,401.00
    	
 
    	
$
    	
5,270,791.78
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
5,270,791.78
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
31,844.37
    	
 
    	
$
    	
278,070.92
    	
 
    	
$
    	
4,992,720.86
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
4,992,720.86
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
30,164.36
    	
 
    	
$
    	
279,750.94
    	
 
    	
$
    	
4,712,969.92
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
4,712,969.92
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
28,474.19
    	
 
    	
$
    	
281,441.10
    	
 
    	
$
    	
4,431,528.82
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
4,431,528.82
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
26,773.82
    	
 
    	
$
    	
283,141.47
    	
 
    	
$
    	
4,148,387.35
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
4,148,387.35
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
25,063.17
    	
 
    	
$
    	
284,852.12
    	
 
    	
$
    	
3,863,535.23
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
3,863,535.23
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
23,342.19
    	
 
    	
$
    	
286,573.10
    	
 
    	
$
    	
3,576,962.13
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
3,576,962.13
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
21,610.81
    	
 
    	
$
    	
288,304.48
    	
 
    	
$
    	
3,288,657.65
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
3,288,657.65
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
19,868.97
    	
 
    	
$
    	
290,046.32
    	
 
    	
$
    	
2,998,611.33
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
2,998,611.33
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
18,116.61
    	
 
    	
$
    	
291,798.68
    	
 
    	
$
    	
2,706,812.65
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
2,706,812.65
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
16,353.66
    	
 
    	
$
    	
293,561.63
    	
 
    	
$
    	
2,413,251.02
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
2,413,251.02
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
14,580.06
    	
 
    	
$
    	
295,335.23
    	
 
    	
$
    	
2,117,915.79
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
2,117,915.79
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
12,795.74
    	
 
    	
$
    	
297,119.55
    	
 
    	
$
    	
1,820,796.24
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
1,820,796.24
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
11,000.64
    	
 
    	
$
    	
298,914.65
    	
 
    	
$
    	
1,521,881.59
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
1,521,881.59
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
9,194.70
    	
 
    	
$
    	
300,720.59
    	
 
    	
$
    	
1,221,161.00
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
1,221,161.00
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
7,377.85
    	
 
    	
$
    	
302,537.44
    	
 
    	
$
    	
918,623.55
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
918,623.55
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
5,550.02
    	
 
    	
$
    	
304,365.27
    	
 
    	
$
    	
614,258.28
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
614,258.28
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
3,711.14
    	
 
    	
$
    	
306,204.15
    	
 
    	
$
    	
308,054.13
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
308,054.13
    	
 
    	
$
    	
309,915.29
    	
 
    	
$
    	
1,861.16
    	
 
    	
$
    	
308,054.13
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
700,000.00
    	
 
    	
$
    	
700,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
13,246,533.84
    	
 
    	
$
    	
3,246,533.84
    	
 
    	
$
    	
10,000,000.00
    	
 
    	
 
    	
 
    

 

 

Oxford Finance LLC

Amortization Table

ConforMIS AA01a

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
24 IO + 36 PI
    	
 
    	
 
    
	
Payment:
    	
$100,722.47 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$227,500.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,250,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$15,708.33 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,250,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
19,635.42
    	
 
    	
$
    	
81,087.05
    	
 
    	
$
    	
3,168,912.95
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
3,168,912.95
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
19,145.52
    	
 
    	
$
    	
81,576.95
    	
 
    	
$
    	
3,087,335.99
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
3,087,335.99
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
18,652.65
    	
 
    	
$
    	
82,069.81
    	
 
    	
$
    	
3,005,266.18
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
3,005,266.18
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
18,156.82
    	
 
    	
$
    	
82,565.65
    	
 
    	
$
    	
2,922,700.52
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
2,922,700.52
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
17,657.98
    	
 
    	
$
    	
83,064.49
    	
 
    	
$
    	
2,839,636.04
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
2,839,636.04
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
17,156.13
    	
 
    	
$
    	
83,566.34
    	
 
    	
$
    	
2,756,069.70
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
2,756,069.70
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
16,651.25
    	
 
    	
$
    	
84,071.22
    	
 
    	
$
    	
2,671,998.49
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
2,671,998.49
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
16,143.32
    	
 
    	
$
    	
84,579.15
    	
 
    	
$
    	
2,587,419.34
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
2,587,419.34
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
15,632.33
    	
 
    	
$
    	
85,090.14
    	
 
    	
$
    	
2,502,329.20
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
2,502,329.20
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
15,118.24
    	
 
    	
$
    	
85,604.23
    	
 
    	
$
    	
2,416,724.96
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
2,416,724.96
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
14,601.05
    	
 
    	
$
    	
86,121.42
    	
 
    	
$
    	
2,330,603.54
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
2,330,603.54
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
14,080.73
    	
 
    	
$
    	
86,641.74
    	
 
    	
$
    	
2,243,961.80
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
2,243,961.80
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
13,557.27
    	
 
    	
$
    	
87,165.20
    	
 
    	
$
    	
2,156,796.60
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
2,156,796.60
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
13,030.65
    	
 
    	
$
    	
87,691.82
    	
 
    	
$
    	
2,069,104.78
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
2,069,104.78
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
12,500.84
    	
 
    	
$
    	
88,221.63
    	
 
    	
$
    	
1,980,883.15
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
1,980,883.15
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
11,967.84
    	
 
    	
$
    	
88,754.63
    	
 
    	
$
    	
1,892,128.51
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
1,892,128.51
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
11,431.61
    	
 
    	
$
    	
89,290.86
    	
 
    	
$
    	
1,802,837.65
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
1,802,837.65
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
10,892.14
    	
 
    	
$
    	
89,830.33
    	
 
    	
$
    	
1,713,007.33
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
1,713,007.33
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
10,349.42
    	
 
    	
$
    	
90,373.05
    	
 
    	
$
    	
1,622,634.28
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
1,622,634.28
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
9,803.42
    	
 
    	
$
    	
90,919.05
    	
 
    	
$
    	
1,531,715.22
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
1,531,715.22
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
9,254.11
    	
 
    	
$
    	
91,468.36
    	
 
    	
$
    	
1,440,246.87
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
1,440,246.87
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
8,701.49
    	
 
    	
$
    	
92,020.98
    	
 
    	
$
    	
1,348,225.89
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
1,348,225.89
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
8,145.53
    	
 
    	
$
    	
92,576.94
    	
 
    	
$
    	
1,255,648.95
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
1,255,648.95
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
7,586.21
    	
 
    	
$
    	
93,136.26
    	
 
    	
$
    	
1,162,512.69
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,162,512.69
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
7,023.51
    	
 
    	
$
    	
93,698.96
    	
 
    	
$
    	
1,068,813.74
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
1,068,813.74
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
6,457.42
    	
 
    	
$
    	
94,265.05
    	
 
    	
$
    	
974,548.68
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
974,548.68
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
5,887.90
    	
 
    	
$
    	
94,834.57
    	
 
    	
$
    	
879,714.11
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
879,714.11
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
5,314.94
    	
 
    	
$
    	
95,407.53
    	
 
    	
$
    	
784,306.58
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
784,306.58
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
4,738.52
    	
 
    	
$
    	
95,983.95
    	
 
    	
$
    	
688,322.63
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
688,322.63
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
4,158.62
    	
 
    	
$
    	
96,563.85
    	
 
    	
$
    	
591,758.78
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
591,758.78
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
3,575.21
    	
 
    	
$
    	
97,147.26
    	
 
    	
$
    	
494,611.52
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
494,611.52
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
2,988.28
    	
 
    	
$
    	
97,734.19
    	
 
    	
$
    	
396,877.32
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
396,877.32
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
2,397.80
    	
 
    	
$
    	
98,324.67
    	
 
    	
$
    	
298,552.66
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
298,552.66
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
1,803.76
    	
 
    	
$
    	
98,918.71
    	
 
    	
$
    	
199,633.94
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
199,633.94
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
1,206.12
    	
 
    	
$
    	
99,516.35
    	
 
    	
$
    	
100,117.59
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
100,117.59
    	
 
    	
$
    	
100,722.47
    	
 
    	
$
    	
604.88
    	
 
    	
$
    	
100,117.59
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
227,500.00
    	
 
    	
$
    	
227,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
4,305,123.50
    	
 
    	
$
    	
1,055,123.50
    	
 
    	
$
    	
3,250,000.00
    	
 
    	
 
    	
 
    

 

 

Oxford Finance LLC

Amortization Table

ConforMIS AA01b

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
24 IO + 36 PI
    	
 
    	
 
    
	
Payment:
    	
$92,974.59 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$210,000.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,000,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$14,500.00 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,000,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
18,125.00
    	
 
    	
$
    	
74,849.59
    	
 
    	
$
    	
2,925,150.41
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
2,925,150.41
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
17,672.78
    	
 
    	
$
    	
75,301.80
    	
 
    	
$
    	
2,849,848.61
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
2,849,848.61
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
17,217.84
    	
 
    	
$
    	
75,756.75
    	
 
    	
$
    	
2,774,091.86
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
2,774,091.86
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
16,760.14
    	
 
    	
$
    	
76,214.45
    	
 
    	
$
    	
2,697,877.41
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
2,697,877.41
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
16,299.68
    	
 
    	
$
    	
76,674.91
    	
 
    	
$
    	
2,621,202.50
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
2,621,202.50
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
15,836.43
    	
 
    	
$
    	
77,138.16
    	
 
    	
$
    	
2,544,064.34
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
2,544,064.34
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
15,370.39
    	
 
    	
$
    	
77,604.20
    	
 
    	
$
    	
2,466,460.14
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
2,466,460.14
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
14,901.53
    	
 
    	
$
    	
78,073.06
    	
 
    	
$
    	
2,388,387.08
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
2,388,387.08
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
14,429.84
    	
 
    	
$
    	
78,544.75
    	
 
    	
$
    	
2,309,842.33
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
2,309,842.33
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
13,955.30
    	
 
    	
$
    	
79,019.29
    	
 
    	
$
    	
2,230,823.04
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
2,230,823.04
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
13,477.89
    	
 
    	
$
    	
79,496.70
    	
 
    	
$
    	
2,151,326.35
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
2,151,326.35
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
12,997.60
    	
 
    	
$
    	
79,976.99
    	
 
    	
$
    	
2,071,349.36
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
2,071,349.36
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
12,514.40
    	
 
    	
$
    	
80,460.19
    	
 
    	
$
    	
1,990,889.17
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
1,990,889.17
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
12,028.29
    	
 
    	
$
    	
80,946.30
    	
 
    	
$
    	
1,909,942.87
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
1,909,942.87
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
11,539.24
    	
 
    	
$
    	
81,435.35
    	
 
    	
$
    	
1,828,507.52
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
1,828,507.52
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
11,047.23
    	
 
    	
$
    	
81,927.35
    	
 
    	
$
    	
1,746,580.17
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
1,746,580.17
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
10,552.26
    	
 
    	
$
    	
82,422.33
    	
 
    	
$
    	
1,664,157.84
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
1,664,157.84
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
10,054.29
    	
 
    	
$
    	
82,920.30
    	
 
    	
$
    	
1,581,237.53
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
1,581,237.53
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
9,553.31
    	
 
    	
$
    	
83,421.28
    	
 
    	
$
    	
1,497,816.26
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
1,497,816.26
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
9,049.31
    	
 
    	
$
    	
83,925.28
    	
 
    	
$
    	
1,413,890.98
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
1,413,890.98
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
8,542.26
    	
 
    	
$
    	
84,432.33
    	
 
    	
$
    	
1,329,458.65
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
1,329,458.65
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
8,032.15
    	
 
    	
$
    	
84,942.44
    	
 
    	
$
    	
1,244,516.20
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
1,244,516.20
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
7,518.95
    	
 
    	
$
    	
85,455.64
    	
 
    	
$
    	
1,159,060.57
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
1,159,060.57
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
7,002.66
    	
 
    	
$
    	
85,971.93
    	
 
    	
$
    	
1,073,088.64
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,073,088.64
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
6,483.24
    	
 
    	
$
    	
86,491.34
    	
 
    	
$
    	
986,597.30
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
986,597.30
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
5,960.69
    	
 
    	
$
    	
87,013.90
    	
 
    	
$
    	
899,583.40
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
899,583.40
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
5,434.98
    	
 
    	
$
    	
87,539.60
    	
 
    	
$
    	
812,043.80
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
812,043.80
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
4,906.10
    	
 
    	
$
    	
88,068.49
    	
 
    	
$
    	
723,975.31
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
723,975.31
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
4,374.02
    	
 
    	
$
    	
88,600.57
    	
 
    	
$
    	
635,374.74
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
635,374.74
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
3,838.72
    	
 
    	
$
    	
89,135.87
    	
 
    	
$
    	
546,238.87
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
546,238.87
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
3,300.19
    	
 
    	
$
    	
89,674.39
    	
 
    	
$
    	
456,564.48
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
456,564.48
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
2,758.41
    	
 
    	
$
    	
90,216.18
    	
 
    	
$
    	
366,348.30
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
366,348.30
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
2,213.35
    	
 
    	
$
    	
90,761.23
    	
 
    	
$
    	
275,587.07
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
275,587.07
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
1,665.01
    	
 
    	
$
    	
91,309.58
    	
 
    	
$
    	
184,277.48
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
184,277.48
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
1,113.34
    	
 
    	
$
    	
91,861.24
    	
 
    	
$
    	
92,416.24
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
92,416.24
    	
 
    	
$
    	
92,974.59
    	
 
    	
$
    	
558.35
    	
 
    	
$
    	
92,416.24
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
210,000.00
    	
 
    	
$
    	
210,000.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
3,973,960.15
    	
 
    	
$
    	
973,960.15
    	
 
    	
$
    	
3,000,000.00
    	
 
    	
 
    	
 
    

 

 

SVB

Amortization Table

ConforMIS AA01

 

	
Start Date:
    	
11/7/2014
    	
 
    	
 
    	
 
    	
Disclaimer:
    	
 
    
	
Interest Rate:
    	
7.25%
    	
 
    	
 
    	
 
    	
THIS IS A STANDARD AMORTIZATION SCHEDULE.  IT IS NOT INTENDED TO BE USED FOR PAYOFF   PURPOSES.
    	
 
    
	
Term:
    	
60
    	
 
    	
24 IO + 36 PI
    	
 
    	
 
    
	
Payment:
    	
$116,218.23 
    	
 
    	
 
    	
 
    	
 
    
	
Final Payment:
    	
$262,500.00 
    	
 
    	
7.00%
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Amount:
    	
3,750,000.00
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest Days:
    	
24
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Interim Interest:
    	
$18,125.00 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
PMT
    	
 
    	
Payment
    	
 
    	
Beginning
    	
 
    	
Monthly
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Ending
    	
 
    
	
No.
    	
 
    	
Date
    	
 
    	
Balance
    	
 
    	
Payment
    	
 
    	
Interest
    	
 
    	
Principal
    	
 
    	
Balance
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
12/1/14
    	
 
    	
Interim Interest Due
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
2
    	
 
    	
1/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
3
    	
 
    	
2/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
4
    	
 
    	
3/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
5
    	
 
    	
4/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
6
    	
 
    	
5/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
7
    	
 
    	
6/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
8
    	
 
    	
7/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
9
    	
 
    	
8/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
10
    	
 
    	
9/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
11
    	
 
    	
10/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
12
    	
 
    	
11/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
13
    	
 
    	
12/1/15
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
14
    	
 
    	
1/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
15
    	
 
    	
2/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
16
    	
 
    	
3/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
17
    	
 
    	
4/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
18
    	
 
    	
5/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
19
    	
 
    	
6/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
20
    	
 
    	
7/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
21
    	
 
    	
8/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
22
    	
 
    	
9/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
23
    	
 
    	
10/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
24
    	
 
    	
11/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
0.00
    	
 
    	
$
    	
3,750,000.00
    	
 
    
	
25
    	
 
    	
12/1/16
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
22,656.25
    	
 
    	
$
    	
93,561.98
    	
 
    	
$
    	
3,656,438.02
    	
 
    
	
26
    	
 
    	
1/1/17
    	
 
    	
$
    	
3,656,438.02
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
22,090.98
    	
 
    	
$
    	
94,127.25
    	
 
    	
$
    	
3,562,310.76
    	
 
    
	
27
    	
 
    	
2/1/17
    	
 
    	
$
    	
3,562,310.76
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
21,522.29
    	
 
    	
$
    	
94,695.94
    	
 
    	
$
    	
3,467,614.82
    	
 
    
	
28
    	
 
    	
3/1/17
    	
 
    	
$
    	
3,467,614.82
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
20,950.17
    	
 
    	
$
    	
95,268.06
    	
 
    	
$
    	
3,372,346.76
    	
 
    
	
29
    	
 
    	
4/1/17
    	
 
    	
$
    	
3,372,346.76
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
20,374.60
    	
 
    	
$
    	
95,843.64
    	
 
    	
$
    	
3,276,503.12
    	
 
    
	
30
    	
 
    	
5/1/17
    	
 
    	
$
    	
3,276,503.12
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
19,795.54
    	
 
    	
$
    	
96,422.69
    	
 
    	
$
    	
3,180,080.42
    	
 
    
	
31
    	
 
    	
6/1/17
    	
 
    	
$
    	
3,180,080.42
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
19,212.99
    	
 
    	
$
    	
97,005.25
    	
 
    	
$
    	
3,083,075.18
    	
 
    
	
32
    	
 
    	
7/1/17
    	
 
    	
$
    	
3,083,075.18
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
18,626.91
    	
 
    	
$
    	
97,591.32
    	
 
    	
$
    	
2,985,483.85
    	
 
    
	
33
    	
 
    	
8/1/17
    	
 
    	
$
    	
2,985,483.85
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
18,037.30
    	
 
    	
$
    	
98,180.94
    	
 
    	
$
    	
2,887,302.92
    	
 
    
	
34
    	
 
    	
9/1/17
    	
 
    	
$
    	
2,887,302.92
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
17,444.12
    	
 
    	
$
    	
98,774.11
    	
 
    	
$
    	
2,788,528.81
    	
 
    
	
35
    	
 
    	
10/1/17
    	
 
    	
$
    	
2,788,528.81
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
16,847.36
    	
 
    	
$
    	
99,370.87
    	
 
    	
$
    	
2,689,157.93
    	
 
    
	
36
    	
 
    	
11/1/17
    	
 
    	
$
    	
2,689,157.93
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
16,247.00
    	
 
    	
$
    	
99,971.24
    	
 
    	
$
    	
2,589,186.69
    	
 
    
	
37
    	
 
    	
12/1/17
    	
 
    	
$
    	
2,589,186.69
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
15,643.00
    	
 
    	
$
    	
100,575.23
    	
 
    	
$
    	
2,488,611.46
    	
 
    
	
38
    	
 
    	
1/1/18
    	
 
    	
$
    	
2,488,611.46
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
15,035.36
    	
 
    	
$
    	
101,182.87
    	
 
    	
$
    	
2,387,428.59
    	
 
    
	
39
    	
 
    	
2/1/18
    	
 
    	
$
    	
2,387,428.59
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
14,424.05
    	
 
    	
$
    	
101,794.19
    	
 
    	
$
    	
2,285,634.40
    	
 
    
	
40
    	
 
    	
3/1/18
    	
 
    	
$
    	
2,285,634.40
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
13,809.04
    	
 
    	
$
    	
102,409.19
    	
 
    	
$
    	
2,183,225.21
    	
 
    
	
41
    	
 
    	
4/1/18
    	
 
    	
$
    	
2,183,225.21
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
13,190.32
    	
 
    	
$
    	
103,027.92
    	
 
    	
$
    	
2,080,197.29
    	
 
    
	
42
    	
 
    	
5/1/18
    	
 
    	
$
    	
2,080,197.29
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
12,567.86
    	
 
    	
$
    	
103,650.38
    	
 
    	
$
    	
1,976,546.92
    	
 
    
	
43
    	
 
    	
6/1/18
    	
 
    	
$
    	
1,976,546.92
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
11,941.64
    	
 
    	
$
    	
104,276.60
    	
 
    	
$
    	
1,872,270.32
    	
 
    
	
44
    	
 
    	
7/1/18
    	
 
    	
$
    	
1,872,270.32
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
11,311.63
    	
 
    	
$
    	
104,906.60
    	
 
    	
$
    	
1,767,363.72
    	
 
    
	
45
    	
 
    	
8/1/18
    	
 
    	
$
    	
1,767,363.72
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
10,677.82
    	
 
    	
$
    	
105,540.41
    	
 
    	
$
    	
1,661,823.31
    	
 
    
	
46
    	
 
    	
9/1/18
    	
 
    	
$
    	
1,661,823.31
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
10,040.18
    	
 
    	
$
    	
106,178.05
    	
 
    	
$
    	
1,555,645.26
    	
 
    
	
47
    	
 
    	
10/1/18
    	
 
    	
$
    	
1,555,645.26
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
9,398.69
    	
 
    	
$
    	
106,819.54
    	
 
    	
$
    	
1,448,825.71
    	
 
    
	
48
    	
 
    	
11/1/18
    	
 
    	
$
    	
1,448,825.71
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
8,753.32
    	
 
    	
$
    	
107,464.91
    	
 
    	
$
    	
1,341,360.80
    	
 
    
	
49
    	
 
    	
12/1/18
    	
 
    	
$
    	
1,341,360.80
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
8,104.05
    	
 
    	
$
    	
108,114.18
    	
 
    	
$
    	
1,233,246.62
    	
 
    
	
50
    	
 
    	
1/1/19
    	
 
    	
$
    	
1,233,246.62
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
7,450.86
    	
 
    	
$
    	
108,767.37
    	
 
    	
$
    	
1,124,479.25
    	
 
    
	
51
    	
 
    	
2/1/19
    	
 
    	
$
    	
1,124,479.25
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
6,793.73
    	
 
    	
$
    	
109,424.51
    	
 
    	
$
    	
1,015,054.74
    	
 
    
	
52
    	
 
    	
3/1/19
    	
 
    	
$
    	
1,015,054.74
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
6,132.62
    	
 
    	
$
    	
110,085.61
    	
 
    	
$
    	
904,969.13
    	
 
    
	
53
    	
 
    	
4/1/19
    	
 
    	
$
    	
904,969.13
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
5,467.52
    	
 
    	
$
    	
110,750.71
    	
 
    	
$
    	
794,218.42
    	
 
    
	
54
    	
 
    	
5/1/19
    	
 
    	
$
    	
794,218.42
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
4,798.40
    	
 
    	
$
    	
111,419.83
    	
 
    	
$
    	
682,798.59
    	
 
    
	
55
    	
 
    	
6/1/19
    	
 
    	
$
    	
682,798.59
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
4,125.24
    	
 
    	
$
    	
112,092.99
    	
 
    	
$
    	
570,705.60
    	
 
    
	
56
    	
 
    	
7/1/19
    	
 
    	
$
    	
570,705.60
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
3,448.01
    	
 
    	
$
    	
112,770.22
    	
 
    	
$
    	
457,935.37
    	
 
    
	
57
    	
 
    	
8/1/19
    	
 
    	
$
    	
457,935.37
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
2,766.69
    	
 
    	
$
    	
113,451.54
    	
 
    	
$
    	
344,483.83
    	
 
    
	
58
    	
 
    	
9/1/19
    	
 
    	
$
    	
344,483.83
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
2,081.26
    	
 
    	
$
    	
114,136.98
    	
 
    	
$
    	
230,346.85
    	
 
    
	
59
    	
 
    	
10/1/19
    	
 
    	
$
    	
230,346.85
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
1,391.68
    	
 
    	
$
    	
114,826.56
    	
 
    	
$
    	
115,520.30
    	
 
    
	
60
    	
 
    	
11/1/19
    	
 
    	
$
    	
115,520.30
    	
 
    	
$
    	
116,218.23
    	
 
    	
$
    	
697.94
    	
 
    	
$
    	
115,520.30
    	
 
    	
$
    	
0.00
    	
 
    
	
Final
    	
 
    	
11/1/19
    	
 
    	
Final Payment
    	
 
    	
$
    	
262,500.00
    	
 
    	
$
    	
262,500.00
    	
 
    	
$
    	
0.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
Totals
    	
 
    	
$
    	
4,967,450.19
    	
 
    	
$
    	
1,217,450.19
    	
 
    	
$
    	
3,750,000.00
    	
 
    	
 
    	
 
    

 

 

EXHIBIT B-2

 

Loan Payment/Advance Request Form

 

DEADLINE FOR SAME DAY PROCESSING IS NOON PACIFIC TIME*

 

	
Fax   To:
    	
 
    	
Date:
    	
 
    

 

	
LOAN PAYMENT:
    
	
 
    
	
CONFORMIS, INC., for   itself, and on behalf of all Borrowers
    
	
 
    	
 
    
	
From   Account #
    	
To   Account #
    
	
(Deposit   Account #)
    	
(Loan   Account #)
    
	
 
    	
 
    
	
Principal   $
    	
and/or   Interest $
    
	
 
    	
 
    	
 
    	
 
    
	
Authorized   Signature:
    	
 
    	
 
    	
Phone   Number:
    
	
Print   Name/Title:
    	
 
    	
 
    	
 
    

 

	
LOAN ADVANCE:
    
	
 
    
	
Complete Outgoing   Wire Request section below if all or a portion of the funds from   this loan advance are for an outgoing wire.
    
	
 
    	
 
    
	
From   Account #
    	
To   Account #
    
	
(Loan   Account #)
    	
(Deposit   Account #)
    
	
 
    	
 
    
	
Amount   of Advance $
    	
 
    
	
 
    
	
All   Borrower’s representations and warranties in the Loan and Security Agreement   are true, correct and complete in all material respects on the date of the   request for an advance; provided, however, that such materiality qualifier   shall not be applicable to any representations and warranties that already   are qualified or modified by materiality in the text thereof; and provided,   further that those representations and warranties expressly referring to a   specific date shall be true, accurate and complete in all material respects   as of such date:
    
	
 
    	
 
    	
 
    	
 
    
	
Authorized   Signature:
    	
 
    	
 
    	
Phone   Number:
    
	
Print   Name/Title:
    	
 
    	
 
    	
 
    

 

 

	
OUTGOING WIRE REQUEST:
    
	
 
    
	
Complete only if all or a   portion of funds from the loan advance above is to be wired.
    
	
Deadline for same day processing is noon, Pacific   Time
    
	
 
    	
 
    
	
Beneficiary Name:
    	
Amount   of Wire: $
    
	
Beneficiary Bank:
    	
Account   Number:
    
	
City and State:
    	
 
    
	
 
    	
 
    
	
Beneficiary Bank Transit (ABA) #:
    
	
 
    
	
Beneficiary Bank Code (Swift, Sort,   Chip, etc.):
    
	
(For International Wire Only)
    
	
 
    	
 
    
	
Intermediary Bank:
    	
Transit   (ABA) #:
    
	
For Further Credit to:
    	
 
    
	
 
    	
 
    
	
Special Instruction:
    
	
By signing below, I (we) acknowledge and agree that   my (our) funds transfer request shall be processed in accordance with and   subject to the terms and conditions set forth in the   agreements(s) covering funds transfer service(s), which   agreements(s) were previously received and executed by me (us).
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Authorized   Signature:
    	
 
    	
 
    	
2nd Signature (if required):
    	
 
    
	
Print   Name/Title:
    	
 
    	
 
    	
Print   Name/Title:
    	
 
    
	
Telephone   #:
    	
 
    	
 
    	
Telephone   #:
    	
 
    

 

 

EXHIBIT C

 

Compliance Certificate

 

TO:                                              SILICON VALLEY BANK, as Collateral Agent and Lender

OXFORD FINANCE LLC, as Lender

 

FROM:                          CONFORMIS, INC., for itself, and on behalf of all Borrowers

 

The undersigned authorized officer (“Officer”) of CONFORMIS, INC. (“Borrower”), hereby certifies, on behalf of all Borrowers, that in accordance with the terms and conditions of the Loan and Security Agreement by and among Borrower, Collateral Agent, and the Lenders from time to time party thereto (the “Loan Agreement;” capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement),

 

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

 

(b)                                 There are no Events of Default, except as noted below;

 

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

 

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

 

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

 

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

 

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

 

	
 
    	
 
    	
Reporting Covenant
    	
 
    	
Requirement
    	
 
    	
Actual
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1)
    	
 
    	
Financial   statements
    	
 
    	
Monthly   within 30 days (after the IPO, quarterly within 45 days)
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2)
    	
 
    	
Annual   (CPA Audited) statements
    	
 
    	
Within   180 days after FYE
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3)
    	
 
    	
Annual   Financial Projections/Budget (prepared on a monthly basis)
    	
 
    	
Annually   (no later than 3/31 of each calendar year (with any material changes within   10 days of Board approval)), and when revised
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    

 

 

	
 
    	
 
    	
Reporting Covenant
    	
 
    	
Requirement
    	
 
    	
Actual
    	
 
    	
Complies
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4)
    	
 
    	
A/R &   A/P agings; deferred revenue report; Transaction Report for sales,   collections, credit memos and other collateral adjustments
    	
 
    	
With   each request for an Advance and (i) Monthly within 30 days if on   Streamline or (ii) biweekly no later than Friday if not on Streamline
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5)
    	
 
    	
8-K,   10-K and 10-Q Filings
    	
 
    	
If   applicable, within 5 days of filing
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6)
    	
 
    	
Compliance   Certificate
    	
 
    	
Monthly   within 30 days (after the IPO, quarterly within 45 days)
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
7)
    	
 
    	
N/A
    	
 
    	
N/A
    	
 
    	
 
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
8)
    	
 
    	
Total   amount of Borrower’s cash and cash equivalents at the last day of the   measurement period
    	
 
    	
 
    	
 
    	
$
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
9)
    	
 
    	
Total   amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day   of the measurement period
    	
 
    	
 
    	
 
    	
$
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
10)
    	
 
    	
Borrower’s   total liabilities under real estate leases at the last day of the measurement   period
    	
 
    	
After   any change in GAAP after the Effective Date recharacterizes the treatment of   real estate leases or operating leases as capital leases, monthly within 30   days (after the IPO, quarterly within 45 days) After any change in GAAP after   the
    	
 
    	
$
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11)
    	
 
    	
Borrower’s   total liabilities under operating leases at the last day of the measurement   period
    	
 
    	
Effective   Date recharacterizes the treatment of real estate leases or operating leases   as capital leases, monthly within 30 days (after the IPO, quarterly within 45   days) After any change in GAAP after the
    	
 
    	
$
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
12)
    	
 
    	
Borrower’s   total liabilities under capital leases at the last day of the measurement   period
    	
 
    	
Effective   Date recharacterizes the treatment of real estate leases or operating leases   as capital leases, monthly within 30 days (after the IPO, quarterly within 45   days)
    	
 
    	
$
    	
 
    	
Yes
    	
 
    	
No
    	
 
    	
N/A
    

 

Deposit and Securities Accounts

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

 

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

 

 

Streamline Period

 

	
 
    	
 
    	
Required
    	
 
    	
Acutal
    	
 
    	
Streamline Period in
   Effect
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Streamline Trigger
    	
 
    	
(i) Quick   Assets to (ii) Current Liabilities minus the current portion of Deferred   Revenue > 1.00:100 at all times during the prior 2 consecutive   calendar months*
    	
 
    	
        :1.00
    	
 
    	
Yes
    	
 
    	
No
    

 

*see Streamline Period calculation on Schedule 1hereto

 

Other Matters

 

	
1)
    	
 
    	
Have   there been any changes in a Key Person since the last Compliance Certificate?
    	
 
    	
Yes
    	
 
    	
No
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2)
    	
 
    	
Have   there been any transfers/sales/disposals/retirement of Collateral or IP   prohibited by the Loan Agreement?
    	
 
    	
Yes
    	
 
    	
No
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3)
    	
 
    	
Have   there been any new pending or, to the knowledge of the Responsible Officer’s,   threatened in writing, or has Borrower received notice of any new   governmental investigations pending or threatened, by or against Borrower or   any of its Subsidiaries, involving more than Five Hundred Thousand Dollars   ($500,000.00)?
    	
 
    	
Yes
    	
 
    	
No
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
4)
    	
 
    	
Have   there been (a) any amendments or other changes to the Operating   Documents of Borrower or any of its Subsidiaries or (b) any material   amendments of or other material changes to the capitalization table of   Borrower or any of its Subsidiaries? If yes, provide copies of any such   amendments or changes with this Compliance Certificate if requested by   Collateral Agent or any Lender.
    	
 
    	
Yes
    	
 
    	
No
    

 

Exceptions

 

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

 

	
CONFORMIS, INC. on behalf of itself and all
    	
 
    	
 
    	
 
    
	
Borrowers
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By
    	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
LENDER USE ONLY
    	
 
    
	
 
    	
 
    	
Received by:
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
Verified by:
    	
 
    	
 
    	
Date:
    	
 
    	
 
    
	
 
    	
 
    	
Compliance Status: Yes
    	
 
    	
No
    	
 
    

 

 

Schedule 1 to Compliance Certificate

 

Streamline Calculation

 

Streamline Period Requirement:  Borrower has maintained at any period of time, on and after the Effective Date, a ratio of (i) Quick Assets to (ii) Current Liabilities minus the current portion of Deferred Revenue of greater than or equal to 1.00 to 1.00 at all times during the prior two (2) consecutive calendar months and provided further that upon the occurrence of an Event of Default any Streamline Period then in effect shall immediately terminate and Borrower shall be required to maintain the foregoing financial ratio for two (2) consecutive months thereafter before a new Streamline Period begins.

 

Actual:

 

	
A.
    	
 
    	
Aggregate   value of the unrestricted cash and Cash Equivalents of Borrower maintained   with Bank and Bank’s Affiliates
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
B.
    	
 
    	
Aggregate   value of the net billed accounts receivable of Borrower
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
C.
    	
 
    	
Quick   Assets (the sum of lines A and B)
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
D.
    	
 
    	
Aggregate   value of Obligations to Lenders
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
E.
    	
 
    	
Aggregate   value of liabilities that should, under GAAP, be classified as liabilities on   Borrower’s consolidated balance sheet, including all Indebtedness, and not   otherwise reflected in line D above that matures within one (1) year
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
F.
    	
 
    	
Current   Liabilities (the sum of lines D and E)
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
G.
    	
 
    	
Deferred   Revenue (all amounts received or invoiced by Borrower in advance of   performance under contracts and not yet recognized as revenue).
    	
 
    	
$
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
H.
    	
 
    	
Line   C divided by (line F minus line G)
    	
 
    	
 
    

 

Is line H equal to or greater than 1.00:1.00, and has no Event Default occurred, during the prior two (2) consecutive calendar months?

 

	
No,   Streamline Period not in effect
    	
Yes,   Streamline Period in effect
    

 

 

EXHIBIT D

 

Form of Secured Promissory Note

 

[see attached]

 

 

SECURED PROMISSORY NOTE
  (Revolving Line)

 

	
$[                    ]
    	
Dated: November [   ],   2014
    

 

FOR VALUE RECEIVED, the undersigned, CONFORMIS, INC., a Delaware corporation (“ConforMIS”), and IMATX, INC., a Delaware corporation (“ImaTx” and individually, collectively, jointly and severally with ConforMIS, “Borrower”), each, with offices located at 28 Crosby Drive, Bedford, MA 01730, HEREBY PROMISE TO PAY to the order of SILICON VALLEY BANK (“Lender”) the principal amount of [                                ] ($[               ]) or such lesser amount as shall equal the outstanding principal balance of the Advances made to Borrower by Lender, plus interest on the aggregate unpaid principal amount of such Advances, at the rates and in accordance with the terms of the Loan and Security Agreement dated November 7, 2014 by and among Borrower, Lender, as Collateral Agent, and the other Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  If not sooner paid, the entire principal amount and all accrued and unpaid interest hereunder shall be due and payable on the Revolving Maturity Date as set forth in the Loan Agreement.  Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement.

 

Principal, interest and all other amounts due with respect to the Advances, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement and this Secured Promissory Note (this “Note”).  The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

 

The Loan Agreement, among other things, (a) provides for the making of secured Advances by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.

 

This Note may not be prepaid except as set forth in the Loan Agreement.

 

This Note and the obligation of Borrower to repay the unpaid principal amount of the Advances, interest on the Advances and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement.

 

Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived.

 

Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due.

 

This Note shall be governed by, and construed and interpreted in accordance with, the internal laws of the State of New York.

 

The ownership of an interest in this Note shall be registered on a record of ownership maintained by Lender or its agent.  Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation.  Borrower shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or entity.

 

[Balance of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
CONFORMIS, INC.
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IMATX, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

SECURED PROMISSORY NOTE 
 (Term [A][B] Loan)

 

	
$[               ]
    	
Dated: November [ ], 2014
    

 

FOR VALUE RECEIVED, the undersigned, CONFORMIS, INC., a Delaware corporation (“ConforMIS”) and IMATX, INC., a Delaware corporation (“ImaTx” and individually, collectively, jointly and severally with ConforMIS, “Borrower”), each, with offices located at 28 Crosby Drive, Bedford, MA 01730, HEREBY PROMISE TO PAY to the order of [OXFORD FINANCE LLC][SILICON VALLEY BANK] (“Lender”) the principal amount of [      ($      ][      ($      )] or such lesser amount as shall equal the outstanding principal balance of the Term [A] [B] Loan made to Borrower by Lender, plus interest on the aggregate unpaid principal amount of such Term [A][B] Loan, at the rates and in accordance with the terms of the Loan and Security Agreement dated November, 2014 by and among Borrower, Lender, Silicon Valley Bank, as Collateral Agent, and the other Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  If not sooner paid, the entire principal amount and all accrued and unpaid interest hereunder shall be due and payable on the Term Loan Maturity Date as set forth in the Loan Agreement.  Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement.

 

Principal, interest and all other amounts due with respect to the Term [A][B] Loan, are payable in lawful money of the United States of America to Lender as set forth in the Loan Agreement and this Secured Promissory Note (this “Note”).  The principal amount of this Note and the interest rate applicable thereto, and all payments made with respect thereto, shall be recorded by Lender and, prior to any transfer hereof, endorsed on the grid attached hereto which is part of this Note.

 

The Loan Agreement, among other things, (a) provides for the making of a secured Term [A] [B] Loan by Lender to Borrower, and (b) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events.

 

This Note may not be prepaid except as set forth in Section 2.1.2(c) and Section 2.1.2(d) of the Loan Agreement.

 

This Note and the obligation of Borrower to repay the unpaid principal amount of the Term [A][B] Loan, interest on the Term [A][B] Loan and all other amounts due Lender under the Loan Agreement is secured under the Loan Agreement.

 

Presentment for payment, demand, notice of protest and all other demands and notices of any kind in connection with the execution, delivery, performance and enforcement of this Note are hereby waived.

 

Borrower shall pay all reasonable fees and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred by Lender in the enforcement or attempt to enforce any of Borrower’s obligations hereunder not performed when due.

 

This Note shall be governed by, and construed and interpreted in accordance with, the internal laws of the State of New York.

 

The ownership of an interest in this Note shall be registered on a record of ownership maintained by Lender or its agent.  Notwithstanding anything else in this Note to the contrary, the right to the principal of, and stated interest on, this Note may be transferred only if the transfer is registered on such record of ownership and the transferee is identified as the owner of an interest in the obligation.  Borrower shall be entitled to treat the registered holder of this Note (as recorded on such record of ownership) as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in this Note on the part of any other person or entity.

 

[Balance of Page Intentionally Left Blank]

 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be duly executed by one of its officers thereunto duly authorized on the date hereof.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
CONFORMIS, INC.
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
IMATX, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL

 

	
Date
    	
 
    	
Principal
   Amount
    	
 
    	
Interest Rate
    	
 
    	
Scheduled
   Payment Amount
    	
 
    	
Notation By
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

 

EXHIBIT E

 

TRANSACTION REPORT

 

[EXCEL spreadsheet to be provided separately from lending officer.]

 

 

CORPORATE BORROWING CERTIFICATE

 

	
BORROWER:
    	
CONFORMIS, INC.
    	
DATE: November 7, 2014
    
	
 
    	
 
    	
 
    
	
LENDERS:
    	
SILICON   VALLEY BANK, as Collateral Agent and Lender 
   OXFORD FINANCE LLC, as Lender
    	
 
    

 

I hereby certify as follows, as of the date set forth above:

 

1.                                      I am the Secretary, Assistant Secretary or other officer of Borrower.  My title is as set forth below.

 

2.                                      Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of Delaware.

 

3.                                      Attached hereto as Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws.  Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of Incorporation and such Bylaws remain in full force and effect as of the date hereof.

 

4.                                      The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower.

 

[Balance of Page Intentionally Left Blank]

 

 

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

 

	
Name
    	
 
    	
Title
    	
 
    	
Signature
    	
 
    	
Authorized to Add
   or Remove
   Signatories
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    

 

[RESOLUTIONS TO BE PROVIDED BY BORROWER]

 

[Balance of Page Intentionally Left Blank]

 

 

5.                                      The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

 

I, the,                        of Borrower, hereby certify as to paragraphs 1 through 5 above, as on the date set forth above.
             [print title]

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Corporate Borrowing Certificate]

 

 

CORPORATE BORROWING CERTIFICATE

 

	
BORROWER:
    	
IMATX, INC.
    	
DATE: November 7, 2014
    
	
 
    	
 
    	
 
    
	
LENDERS:
    	
SILICON   VALLEY BANK, as Collateral Agent and Lender
    	
 
    
	
 
    	
OXFORD   FINANCE LLC, as Lender
    	
 
    

 

I hereby certify as follows, as of the date set forth above:

 

1.                                      I am the Secretary, Assistant Secretary or other officer of Borrower.  My title is as set forth below.

 

2.                                      Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of Delaware.

 

3.                                      Attached hereto as Exhibit A and Exhibit B, respectively, are true, correct and complete copies of (i) Borrower’s Certificate ofIncorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above; and (ii) Borrower’s Bylaws.  Neither such Certificate of Incorporation nor such Bylaws have been amended, annulled, rescinded, revoked or supplemented, and such Certificate of Incorporation and such Bylaws remain in full force and effect as of the date hereof.

 

4.                                      The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and the Lenders may rely on them until each Lender receives written notice of revocation from Borrower.

 

[Balance of Page Intentionally Left Blank]

 

 

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

 

	
Name
    	
 
    	
Title
    	
 
    	
Signature
    	
 
    	
Authorized to Add
   or Remove
   Signatories
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
o
    

 

[RESOLUTIONS TO BE PROVIDED BY BORROWER]

 

[Balance of Page Intentionally Left Blank]

 

 

5.                                      The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

 

I, the                                 of Borrower, hereby certify as to paragraphs 1 through 5 above, as
                 [print title] 
 of the date set forth above.

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Corporate Borrowing Certificate]

 

 

EXHIBIT A

 

Certificate of Incorporation (including amendments)

 

[provided separately]

 

 

EXHIBIT B

 

Bylaws

 

[provided separately]

 

 

DEBTOR:                                                                                     CONFORMIS, INC.

SECURED PARTY:                                SILICON VALLEY BANK, as Collateral Agent

 

EXHIBIT A TO UCC FINANCING STATEMENT

 

Description of Collateral

 

The Collateral consists of all of Debtor’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) equipment subject to a Lien described in clause (c) of the definition of Permitted Liens if the granting of a Lien in such equipment is prohibited by or would constitute a default under the agreement governing such equipment (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such equipment or other property shall automatically be subject to the security interest granted in favor of Collateral Agent and each Lender hereunder and become part of the Collateral without any action by Borrower, Collateral Agent or any Lender, (ii) more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower (the “Shares”) in each of ConforMIS Europe and ConforMIS UK, and, in the event Borrower demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary, (iii) any license or contract, in each case if the granting of a Lien in such license or contract is prohibited by or would constitute a default under the agreement governing such license or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such license or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral”, (iv) the Wells Fargo Cash Collateral Account and (v) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s and each Lender’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property.

 

Capitalized terms used but not defined herein have the meanings ascribed in the Uniform Commercial Code in effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Loan and Security Agreement by and between Debtor, Secured Party and the other Lenders party thereto (as modified, amended and/or restated from time to time).

 

 

DEBTOR:                                                                                     IMATX, INC.
 SECURED PARTY:                                SILICON VALLEY BANK, as Collateral Agent

 

EXHIBIT A TO UCC FINANCING STATEMENT

 

Description of Collateral

 

The Collateral consists of all of Debtor’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) equipment subject to a Lien described in clause (c) of the definition of Permitted Liens if the granting of a Lien in such equipment is prohibited by or would constitute a default under the agreement governing such equipment (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such equipment or other property shall automatically be subject to the security interest granted in favor of Collateral Agent and each Lender hereunder and become part of the Collateral without any action by Borrower, Collateral Agent or any Lender, (ii) more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower (the “Shares”) in each of ConforMIS Europe and ConforMIS UK, and, in the event Borrower demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary, (iii) any license or contract, in each case if the granting of a Lien in such license or contract is prohibited by or would constitute a default under the agreement governing such license or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such license or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral”, (iv) the Wells Fargo Cash Collateral Account and (v) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s and each Lender’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property.

 

Capitalized terms used but not defined herein have the meanings ascribed in the Uniform Commercial Code in effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Loan and Security Agreement by and between Debtor, Secured Party and the other Lenders party thereto (as modified, amended and/or restated from time to time).

 

 

DEBTOR:                                                                         CONFORMIS, INC.
 SECURED PARTY:                    OXFORD FINANCE LLC, as a Lender

 

EXHIBIT A TO UCC FINANCING STATEMENT

 

Description of Collateral

 

The Collateral consists of all of Debtor’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) equipment subject to a Lien described in clause (c) of the definition of Permitted Liens if the granting of a Lien in such equipment is prohibited by or would constitute a default under the agreement governing such equipment (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such equipment or other property shall automatically be subject to the security interest granted in favor of Collateral Agent and each Lender hereunder and become part of the Collateral without any action by Borrower, Collateral Agent or any Lender, (ii) more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower (the “Shares”) in each of ConforMIS Europe and ConforMIS UK, and, in the event Borrower demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary, (iii) any license or contract, in each case if the granting of a Lien in such license or contract is prohibited by or would constitute a default under the agreement governing such license or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such license or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral”, (iv) the Wells Fargo Cash Collateral Account and (v) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s and each Lender’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property.

 

Capitalized terms used but not defined herein have the meanings ascribed in the Uniform Commercial Code in effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Loan and Security Agreement by and between Debtor, Secured Party and the other Lenders party thereto (as modified, amended and/or restated from time to time).

 

 

DEBTOR:                                                                                          IMATX, INC.

SECURED PARTY:                                OXFORD FINANCE LLC, as a Lender

 

EXHIBIT A TO UCC FINANCING STATEMENT

 

Description of Collateral

 

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles (except as noted below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts and other Collateral Accounts, all certificates of deposit, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

Notwithstanding the foregoing, the Collateral does not include (i) equipment subject to a Lien described in clause (c) of the definition of Permitted Liens if the granting of a Lien in such equipment is prohibited by or would constitute a default under the agreement governing such equipment (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such equipment or other property shall automatically be subject to the security interest granted in favor of Collateral Agent and each Lender hereunder and become part of the Collateral without any action by Borrower, Collateral Agent or any Lender, (ii) more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by the Borrower (the “Shares”) in each of ConforMIS Europe and ConforMIS UK, and, in the event Borrower demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of any other Subsidiary which is a Foreign Subsidiary could reasonably be expected to create a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, more than sixty five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary, (iii) any license or contract, in each case if the granting of a Lien in such license or contract is prohibited by or would constitute a default under the agreement governing such license or contract (but (A) only to the extent such prohibition is enforceable under applicable law and (B) other than to the extent that any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any other Section) of Division 9 of the Code); provided that upon the termination, lapsing or expiration of any such prohibition, such license or contract, as applicable, shall automatically be subject to the security interest granted in favor of Collateral Agent hereunder and become part of the “Collateral”, (iv) the Wells Fargo Cash Collateral Account and (v) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property.  If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s and each Lender’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms of a certain negative pledge arrangement with Collateral Agent and the Lenders, Borrower has agreed not to encumber any of its Intellectual Property.

 

Capitalized terms used but not defined herein have the meanings ascribed in the Uniform Commercial Code in effect in the State of California as in effect from time to time (the “Code”) or, if not defined in the Code, then in the Loan and Security Agreement by and between Debtor, Secured Party and the other Lenders party thereto (as modified, amended and/or restated from time to time).

 

1

 

FIRST AMENDMENT
 TO
 LOAN AND SECURITY AGREEMENT

 

THIS FIRST AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this 4th day of March, 2015, among SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or otherwise a party hereto from time to time including SVB in its capacity as a Lender and OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”) (each a “Lender” and collectively, the “Lenders”), CONFORMIS, INC., a Delaware corporation (“ConforMIS”) and IMATX, INC., a Delaware corporation (“ImaTx” and individually, collectively, jointly and severally with ConforMIS, “Borrower”), each, with offices located at 28 Crosby Drive, Bedford, MA 01730.

 

RECITALS

 

A.                                    Collateral Agent, Lenders and Borrower have entered into that certain Loan and Security Agreement dated as of November 7, 2014 (as amended from time to time, the “Loan Agreement”).

 

B.                                    Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.                                    Borrower has requested that Collateral Agent and Lenders (i) increase the permitted amount of cash and Cash Equivalents held by ConforMIS Europe and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.

 

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

 

AGREEMENT

 

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

 

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

 

2.                                      Amendment to Loan Agreement.

 

2.1                               Section 7.12 (Foreign Subsidiary Assets).  Section 7.12(i) of the Loan Agreement hereby is amended and restated in its entirety to read as follows:

 

“(i) ConforMIS Europe to exceed Two Million Dollars ($2,000,000.00) (or equivalent) at any time,”

 

3.                                      Limitation of Amendment.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

6.                                      Effectiveness.  This Amendment shall be deemed effective upon the due execution and delivery to Collateral Agent and Lenders of this Amendment by each party hereto, and Borrower’s payment of all Lenders’ Expenses incurred through the date of this Amendment.

 

[Balance of Page Intentionally Left Blank]

 

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

 

 

	
COLLATERAL AGENT:   

 

SILICON VALLEY BANK  
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Andrea J. Kirk 
    	
 
    
	
Name:   
    	
Andrea   J. Kirk 
    	
 
    
	
Title:   
    	
Director
    	
 
    
	
 
    	
 
    	
 
    
	
LENDER:   

 

OXFORD FINANCE LLC  
    	
 
    
	
 
    	
 
    	
 
    
	
By:  
    	
/s/   Mark Davis 
    	
 
    
	
Name:   
    	
Mark   Davis
    	
 
    
	
Title:   
    	
Vice   President — Finance, Secretary & Treasurer
    	
 
    
	
 
    	
 
    
	
BORROWER:   

 

CONFORMIS, INC.  
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Philipp Lang 
    	
 
    
	
Name:   
    	
Philipp   Lang 
    	
 
    
	
Title:   
    	
President &   CEO
    	
 
    
	
 
    	
 
    	
 
    
	
IMATX, INC.  
    	
 
    
	
 
    	
 
    	
 
    
	
By:   
    	
/s/   Philipp Lang 
    	
 
    
	
Name:   
    	
Philipp   Lang 
    	
 
    
	
Title:   
    	
President &   CEO

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