Document:

Exhibit

    

FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS FIRST AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Agreement”) is made and entered into this 9th day of November, 2015, by and among WHITE EAGLE ASSET PORTFOLIO, LP, a Delaware limited partnership (the “Borrower”), IMPERIAL FINANCE AND TRADING, LLC, a Florida limited liability company (“Imperial”), LAMINGTON ROAD BERMUDA LTD., a Bermuda company (“the Portfolio Manager”), CLMG CORP., a Texas corporation (the “Agent”), as Administrative Agent, and LNV CORPORATION., a Nevada corporation (the “Lender”).
WITNESSETH:
A.    The Borrower, Imperial, the Portfolio Manager, the Agent and the Lender are parties to that certain Amended and Restated Loan and Security Agreement, dated as of May 16, 2014 (the “Loan Agreement”). Capitalized words and terms used herein, but not defined herein, have the meanings set forth in the Loan Agreement.
B.    The Borrower, Imperial and the Portfolio Manager have requested that the Agent and the Lender agree to amend certain provisions of the Loan Agreement as set forth herein.
NOW, THEREFORE, for and in consideration of the premises, the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of all of which are hereby acknowledged and confessed by each of the parties hereto, the parties hereto hereby agree as follows:
		
	1.
	Section 2.8(a)(ii)(B) of the Loan Agreement is replaced in its entirety to read as follows: “(B) prior to November 9, 2015 only, to pay Debt Service;”

		
	2.
	Section 2.8(c) of the Loan Agreement is replaced in its entirety to read as follows: “For the avoidance of doubt, (i) prior to November 9, 2015, no proceeds of any Advance were used for, and no Lender was obligated to make any Advance for, the purposes of paying any accrued interest due on any prior Advances that equals the Rate Floor, (ii) on and after November 9, 2015, no proceeds of any Advance shall be used for, and no Lender shall be obligated to make any Advance for, the purposes of paying any accrued interest due on any prior Advances, regardless of whether such interest equals the Rate Floor and (iii) no proceeds of any Advance were used for or shall be used for, and no Lender shall be obligated to make any Advance for, the purposes of paying any amounts owing by the Borrower or any Affiliate thereof to Sea Port Group Securities, LLC or any of its Affiliates.”

		
	3.
	Clause “Ninth” of Section 5.2(b) of the Loan Agreement is modified to replace the reference to "the remaining Available Amount;" with the following language: "the remaining Available Amount after giving effect to all distributions on such 

	
			
	 
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Distribution Date pursuant to clauses “First” through “Eighth” of this Section 5.2(b);"
		
	4.
	Sub-clause (i) of clause “Eleventh” of Section 5.2(b) of the Loan Agreement is modified to replace the reference to "the remaining Available Amount" with the following language: "the remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Tenth” of this Section 5.2(b)"

		
	5.
	Clause “Thirteenth” of Section 5.2(b) of the Loan Agreement is modified to replace the reference to "any remaining Available Amount" with the following language: "any remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Twelfth” of this Section 5.2(b)"

		
	6.
	Clause “Thirteenth” of Section 5.2(c) of the Loan Agreement is modified to replace the reference to "the remaining Available Amount;" with the following language: "the remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Twelfth” of this Section 5.2(c);"

		
	7.
	Sub-clause (i) of clause “Fifteenth” of Section 5.2(c) of the Loan Agreement is modified to replace the reference to "the remaining Available Amount," with the following language: "the remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Fourteenth” of this Section 5.2(c),"

		
	8.
	Clause “Seventeenth” of Section 5.2(c) of the Loan Agreement is modified to replace the reference to "any remaining Available Amount" with the following language: "any remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Sixteenth” of this Section 5.2(c);"

		
	9.
	Clause “Twelfth” of Section 5.2(e) of the Loan Agreement is modified to replace the reference to "any remaining Available Amount." with the following language: "any remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Eleventh” of this Section 5.2(e)."

		
	10.
	Article V of the Loan Agreement is amended by inserting the following provision immediately after Section 5.4: “Section 5.5 Lender Valuation. With respect to each Distribution Date, the Administrative Agent shall, within three (3) Business Days prior to the related Calculation Date, provide the Borrower with the Lender Valuation of the Pledged Policies as of such Calculation Date.”

	
			
	 
	2
	 

		
	11.
	The definition of Applicable Margin set forth in Annex I to the Loan Agreement is replaced in its entirety to read as follows: ““Applicable Margin” means four and one-half percent (4.50%).”

		
	12.
	Clause (iii) of the definition of Borrowing Base set forth in Annex I to the Loan Agreement is replaced in its entirety to read as follows: “(iii) prior to November 9, 2015 only, one hundred percent (100%) of the Debt Service, plus”

		
	13.
	The definition of Cash Flow Sweep Percentage set forth in Annex I to the Loan Agreement is replaced in its entirety to read as follows: ““Cash Flow Sweep Percentage” means, with respect to any Distribution Date, (i) if the Net Total Investment Percentage as of the related Calculation Date is less than or equal to fifteen percent (15%) and the aggregate outstanding principal amount of all Advances as of such Calculation Date is greater than $20,000,000, one-hundred percent 100% and (ii) otherwise, (A) if on the related Calculation Date, the Collateral consists of more than seventy-five (75) Pledged Policies insuring the lives of more than seventy-five (75) distinct Insureds and (x) the LTV is equal to or greater than fifty percent (50%), one-hundred percent (100%), (y) the LTV is less than fifty percent (50%) but greater than or equal to twenty-five percent (25%), sixty-five percent (65%) or (z) the LTV is less than twenty-five percent (25%), thirty-five percent (35%) or (B) the Collateral consists of seventy-five (75) or fewer Pledged Policies insuring the lives of seventy-five (75) or fewer distinct Insureds, one-hundred percent (100%).”

		
	14.
	The definition of Debt Service set forth in Annex I to the Loan Agreement is replaced in its entirety to read as follows: ““Debt Service” means, on any date of determination, the sum of the accrued interest due on all outstanding Advances that does not equal the Rate Floor.”

		
	15.
	Clause (ii) of the definition of Default Rate set forth in Annex I to the Loan Agreement is replaced in its entirety to read as follows: “(ii) six and one-half percent (6.50%).”

		
	16.
	The definition of Facility Limit set forth in Annex I to the Loan Agreement is modified to replace the reference to “$300,000,000” therein with a reference to “$250,000,000” and the reference to “April 29, 2018” therein with a reference to “April 29, 2019.”

		
	17.
	Annex I to the Loan Agreement is amended by inserting the following definition immediately after the definition of Net Proceeds: ““Net Total Investment Percentage” means, as of any Calculation Date, the fraction, expressed as a percentage, the numerator of which is the positive difference between (x) the Total Investment and (y) the aggregate of the amounts that have been distributed on all prior Distribution Dates pursuant to clauses “Ninth” and “Thirteenth” of Section 5.2(b) of the Loan Agreement and clauses “Thirteenth” and “Seventeenth” of Section 5.2(c) of the Loan Agreement, and the denominator of which is the aggregate outstanding principal amount of all Advances as of such Calculation Date.”

	
			
	 
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	18.
	Clause (ii) of the definition of Required Amortization set forth in Annex I to the Loan Agreement is replaced in its entirely to read as follows: “(ii) the remaining Available Amount after giving effect to all distributions on such Distribution Date pursuant to clauses “First” through “Fifth” of Section 5.2(b) of the Loan Agreement (if no Lender Default is continuing) or clause “First” through sub-clause (b)(iii) of clause “Sixth” of Section 5.2(b) of the Loan Agreement (if a Lender Default has occurred and is continuing), as applicable.”

		
	19.
	Schedule 2.1(a) to the Loan Agreement is replaced in its entirety by Schedule 2.1(a) to this Agreement.

		
	20.
	Exhibit B to the Loan Agreement is replaced in its entirety by Exhibit B to this Agreement.

		
	21.
	Exhibit D to the Loan Agreement is replaced in its entirety by Exhibit D to this Agreement.

		
	22.
	AS A MATERIAL INDUCEMENT TO THE LENDER AND THE AGENT TO ENTER INTO THIS AGREEMENT, THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER, EACH ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, LEGAL REPRESENTATIVES AND CONSTITUENTS (WHETHER OR NOT A PARTY HERETO) (BORROWER, IMPERIAL, THE PORTFOLIO MANAGER AND SUCH SUCCESSORS, ASSIGNS, LEGAL REPRESENTATIVES AND CONSTITUENTS BEING REFERRED TO HEREIN COLLECTIVELY AND INDIVIDUALLY, AS “OBLIGORS, ET AL.”), HEREBY FULLY, FINALLY AND COMPLETELY RELEASE AND FOREVER DISCHARGE THE LENDER, THE AGENT AND THEIR RESPECTIVE OWNERS, SUCCESSORS, ASSIGNS, AFFILIATES, SUBSIDIARIES, PARENTS, OFFICERS, SHAREHOLDERS, DIRECTORS, EMPLOYEES, ATTORNEYS AND AGENTS, PAST, PRESENT AND FUTURE, AND THEIR RESPECTIVE HEIRS, PREDECESSORS, SUCCESSORS AND ASSIGNS (COLLECTIVELY AND INDIVIDUALLY, “LENDER, ET AL.”) OF AND FROM ANY AND ALL CLAIMS, CONTROVERSIES, DISPUTES, LIABILITIES, OBLIGATIONS, DEMANDS, DAMAGES, EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES), DEBTS, LIENS, ACTIONS AND CAUSES OF ACTION OF ANY AND EVERY NATURE WHATSOEVER, INCLUDING, WITHOUT LIMITATION, ANY THEREOF RELATING TO THE LOAN, AND WAIVE AND RELEASE ANY DEFENSE, RIGHT OF COUNTERCLAIM, RIGHT OF SET-OFF OR DEDUCTION TO THE PAYMENT OF THE INDEBTEDNESS EVIDENCED BY THE LENDER NOTE AND/OR ANY OTHER TRANSACTION DOCUMENT WHICH OBLIGORS, ET AL. NOW HAVE OR MAY CLAIM TO HAVE AGAINST LENDER, ET AL., OR ANY THEREOF, ARISING OUT OF, CONNECTED WITH OR RELATING TO ANY AND ALL ACTS, OMISSIONS OR EVENTS OCCURRING PRIOR TO THE EXECUTION OF THIS AGREEMENT.

	
			
	 
	4
	 

THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER  HEREBY ACKNOWLEDGE, REPRESENT AND WARRANT TO THE LENDER AND THE AGENT THAT THEY AGREE TO ASSUME THE RISK OF ANY AND ALL UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES AND CLAIMS WHICH ARE RELEASED BY THE PROVISIONS HEREOF IN FAVOR OF LENDER, ET AL., AND WAIVE AND RELEASE ALL RIGHTS AND BENEFITS WHICH THEY MIGHT OTHERWISE HAVE UNDER ANY FEDERAL, STATE OR LOCAL LAW OR STATUTE WITH REGARD TO THE RELEASE OF SUCH UNKNOWN, UNANTICIPATED OR MISUNDERSTOOD DEFENSES OR CLAIMS.
THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND EACH OF THE PROVISIONS OF THIS RELEASE. THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER FULLY UNDERSTAND THAT THIS RELEASE CONSTITUTES A GENERAL RELEASE, AND THAT IT HAS IMPORTANT LEGAL CONSEQUENCES. THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER UNDERSTAND AND CONFIRM THAT THEY ARE HEREBY RELEASING ANY AND ALL RELEASED CLAIMS THAT ANY MAY INDIVIDUALLY HAVE AS OF THE DATE HEREOF. THE BORROWER, IMPERIAL AND THE PORTFOLIO MANAGER HEREBY ACKNOWLEDGE THAT THEY HAVE HAD A FULL AND FAIR OPPORTUNITY TO OBTAIN A LAWYER’S ADVICE CONCERNING THE LEGAL CONSEQUENCES OF THIS RELEASE AND WAIVER.
		
	23.
	As an additional material inducement to the Lender and the Agent to enter into this Agreement and to amend certain provisions of the Loan Agreement as provided herein, the Borrower, Imperial and the Portfolio Manager hereby represent and warrant to, and agree with, the Lender and the Agent that, as of the date hereof:

		
	(a)
	the Transaction Documents, as amended hereby, are in full force and effect and none of Borrower, Imperial or the Portfolio Manager has any defense, counterclaim or offset to the payment or performance of any of such party’s obligations in regard to the Loan or any of the Transaction Documents, as amended hereby, and the Liens created and granted by the Transaction Documents continue unimpaired and of first priority and secure all existing and future obligations owed to the Lender and/or the Agent in regard to the Loan;

		
	(b)
	the representations and warranties of the Borrower, Imperial and the Portfolio Manager set forth in the Transaction Documents are true and correct in all material respects as of the date hereof and are hereby reaffirmed as if such representations and warranties had been made on the date hereof and shall continue in full force and effect; and

	
			
	 
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	(c)
	this Agreement constitutes the legal, valid and binding obligation of the Borrower, Imperial and the Portfolio Manager, enforceable against the Borrower, Imperial and the Portfolio Manager in accordance with the terms hereof.

The representations and warranties of the Borrower, Imperial and the Portfolio Manager contained in this Agreement and in the Transaction Documents shall survive the consummation of the transactions contemplated by this Agreement.
		
	24.
	In addition to the documents, instruments and acts described in this Agreement and which are to be executed and/or delivered and/or taken pursuant to this Agreement, the Borrower, Imperial and the Portfolio Manager shall execute and deliver, and/or cause to be executed and delivered, from time to time upon request by the Agent such other documents and instruments, and take such other action, as the Agent may reasonably request or require to more fully and completely evidence and carry out the transactions contemplated by this Agreement.

		
	25.
	The Borrower, Imperial and the Portfolio Manager hereby affirm, confirm, ratify, renew and extend the debts, duties, obligations, liabilities, rights, titles, security interests, Liens, powers and privileges created or arising by virtue of the Transaction Documents, as amended hereby, until all of the Loan and all other Obligations have been paid and performed in full. The Borrower confirms that it is fully, unconditionally liable for the payment and performance of the Loan as provided in the Transaction Documents and that neither the Agent nor the Lender has released, forgiven, discharged, impaired, waived or relinquished, and the Agent and the Lender do not hereby release, forgive, discharge, impair, waive or relinquish any rights, titles, interests, Liens, security interests, Collateral, parties, remedies or any other matter with respect to the Loan or any of the Transaction Documents, but rather the Agent and the Lender are expressly retaining and reserving the same to their fullest extent.

		
	26.
	Except as expressly amended hereby, all the terms, provisions, debts, duties, Obligations, liabilities, representations, warranties, rights, titles, security interests, Liens, powers and privileges existing by virtue of the Transaction Documents shall be and continue in full force and effect and are hereby acknowledged by the Borrower, Imperial and the Portfolio Manager to be legal, valid, binding and enforceable in accordance with their terms.

		
	27.
	This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York and the laws of the United States applicable to transactions within New York, exclusive of any laws relating to conflicts of law.

		
	28.
	This Agreement shall constitute a Transaction Document and shall be binding upon the parties hereto and their respective successors and assigns. Nothing contained herein shall act to amend or modify any of the provisions of the Transaction Documents which restrict or prohibit assignment or transfer.

	
			
	 
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	29.
	Neither this Agreement nor any provision of any of the other Transaction Documents may be waived, modified or amended, except by an instrument in writing signed by the party against which the enforcement of such waiver, modification or amendment is sought, and then only to the extent set forth in such instrument.

		
	30.
	This Agreement constitutes the entire agreement between the parties in regard to the amendment of the Loan and the Loan Agreement effected hereby, and supercedes all prior agreements and understandings, if any, between the parties relating to the amendment of the Loan and the Loan Agreement.

		
	31.
	This Agreement may be signed in multiple counterparts and each shall be deemed to be an original, and the facsimile transmission of executed counterpart agreements shall be deemed to be an originally executed agreement; provided that executed original documents are provided to the parties promptly following such facsimile transmission.

		
	32.
	The Borrower agrees to pay and/or reimburse the Agent and the Lender for all costs and expenses incurred by the Agent and/or the Lender in regard to the amendment of the Transaction Documents effected hereby.

EXECUTED as of the day and year first above written.

	
			
	 
	7
	 

	
	
	WHITE EAGLE ASSET PORTFOLIO, LP, as Borrower

	By: White Eagle General Partner, LLC, its General Partner

	By: /s/ Richard S. O'Connell, Jr.______________ 
Name:  Richard S. O'Connell, Jr. 
Title:   President

	 

	IMPERIAL FINANCE & TRADING, LLC,  
as Initial Servicer, Initial Portfolio Manager and Guarantor

	 

	By: /s/ Richard S. O'Connell, Jr.______________ 
Name:  Richard S. O'Connell, Jr. 
Title:   Chief Financial Officer

	

	LAMINGTON ROAD BERMUDA LTD.,  
as Portfolio Manager

	 

	By: /s/ Richard S. O'Connell, Jr.______________ 
Name:  Richard S. O'Connell, Jr. 
Title:   President

	 

	LENDER:

	LNV CORPORATION

	 

	By: /s/ Jacob Cherner_______________________ 
Name:  Jacob Cherner 
Title:   Executive Vice President

	 

	ADMINISTRATIVE AGENT:

	CLMG CORP.

	 

	By: /s/ James Erwin________________________ 
Name:  James Erwin
Title:   President

	
			
	 
	8
	 

•    Schedule 2.1(a)

	
		
	Lenders’ Commitments

	Lender
	Commitment

	LNV Corporation
	$250,000,000

    

•EXHIBIT B
FORM OF LENDER NOTE
[New York, New York] 
Up to $[250,000,000]     [__], 20[___]
FOR VALUE RECEIVED, the undersigned, White Eagle Asset Portfolio, LP, a Delaware limited partnership (the “Borrower”) promises to pay to the order of [___], a [___] (together with its successors and permitted assigns, the “Lender”), in its capacity as a Lender, the aggregate unpaid principal amount of all Advances made by the Lender to, or for the benefit of, the Borrower, as recorded either on the grid attached to this Note or in the records of the Lender (and such recordation shall constitute prima facie evidence of the information so recorded; provided, however, that the failure to make any such recordation shall not in any way affect the Borrower’s obligation to repay this Note). The principal amount of each Advance evidenced hereby shall be payable on or prior to the Maturity Date as provided in the Loan Agreement.  Borrower also promises to pay to the Lender all other Obligations (which, for the avoidance of doubt, may exceed $[250,000,000]).
The Borrower further promises to pay interest on the unpaid principal amount of this Note from time to time outstanding, payable as provided in the Loan Agreement, at the rates per annum provided in the Loan Agreement; provided, however, that such interest rate shall not at any time exceed the maximum rate permitted by Applicable Law. All payments of principal of and interest on this Note shall be payable in lawful currency of the United States of America at the office of the Lender as provided in the Loan Agreement, in immediately available funds.
This Note is one of the Lender Notes referred to in that certain Amended and Restated Loan and Security Agreement, dated as of May 16, 2014 (as amended, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among the Borrower, the financial institutions party thereto, as Lenders, [CLMG Corp.], as Administrative Agent, Imperial Finance & Trading, LLC, as Initial Servicer, Initial Portfolio Manager and Guarantor, and Lamington Road Bermuda Ltd., as Portfolio Manager. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in Annex I to the Loan Agreement.  In the event of any conflict between any term or provision of this Note and the Loan Agreement, the terms and provisions of the Loan Agreement shall govern and control.  This Note is secured pursuant to the security interests granted in the Loan Agreement and the other Transaction Documents and reference is hereby made to the Loan Agreement and the other Transaction Documents for a statement of the terms and provisions of such security interests.
All parties now or hereafter liable with respect to this Note, whether as makers, endorsers, or otherwise, severally waive presentment for payment, demand, protest, and notice of dishonor and notice of the existence or nonpayment of all or any of the Advances.

2

Upon the occurrence of any Event of Default, all amounts then remaining unpaid on this Note shall become, or may be declared to be, immediately due and payable, all as provided in the Loan Agreement.
This Note shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed in such State, excluding choice of law principles of the laws of such State that would require the application of the laws of a jurisdiction other than such State.
IN WITNESS WHEREOF, the undersigned has caused this Note to be executed by its duly authorized officer as of the day and year first above written.
WHITE EAGLE ASSET PORTFOLIO, LP
By: White Eagle General Partner, LLC, a Delaware limited liability company, its General Partner
By:__________________________________ 
Name: 
Title:

3

    

	
						
	GRID ATTACHED TO NOTE
DATED [_____], 20[___]
WHITE EAGLE ASSET PORTFOLIO, LLC, AS BORROWER
PAYABLE TO THE ORDER OF
[____]

	Date
	Amount of
Advance
	Outstanding
Principal
Balance
	Interest Rate
	Interest Period
	Notation Made By

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

•EXHIBIT D
FORM OF CALCULATION DATE REPORT
Calculation Date Report
Dated as of __________
For the Distribution Date occurring on    ________
		
	I.
	Account Balances as of the dated of this Calculation Date Report are as follows:

	
			
	 
	Collection Account
	$_______________

	 
	Payment Account
	$_______________

	 
	Borrower Account
	$_______________

	 
	Escrow Account
	$_______________

		
	II.
	Prior to the Partial Repayment Date, so long as an Unmatured Event of Default or an Event of Default has not occurred and is not continuing, funds on deposit in the Collection Account shall be distributed as provided in the following stages of the Priority of Payment pursuant to Section 5.2(b) of the Amended and Restated Loan and Security Agreement:

	
		
	First:
	$_______________

	Second:
	$_______________

	Third:
	$_______________

	Fourth:
	$_______________

	Fifth:
	$_______________

	Sixth:
	$_______________

	Seventh:
	$_______________

	Eighth:
	$_______________

	Ninth:
	$_______________

	Tenth:
	$_______________

	Eleventh:
	$_______________

	Twelfth:
	$_______________

	Thirteenth:
	$_______________

		
	III.
	Prior to the Partial Repayment Date, if an Unmatured Event of Default or Event of Default has occurred and is continuing and is not waived in writing by the Required Lenders, funds on deposit in the Collection Account shall be distributed as provided in the following stages of the Priority of Payments pursuant to Section 5.2(c) of the Amended and Restated Loan and Security Agreement:

5

	
		
	First:
	$_______________

	Second:
	$_______________

	Third:
	$_______________

	Fourth:
	$_______________

	Fifth:
	$_______________

	Sixth:
	$_______________

	Seventh:
	$_______________

	Eighth:
	$_______________

	Ninth:
	$_______________

	Tenth:
	$_______________

	Eleventh:
	$_______________

	Twelfth:
	$_______________

	Thirteenth:
	$_______________

	Fourteenth:
	$_______________

	Fifteenth:
	$_______________

	Sixteenth:
	$_______________

	Seventeenth:
	$_______________

		
	IV.
	Following the Partial Repayment Date, funds on deposit in the Collection Account shall be distributed in the following stages of the Priority of Payments pursuant to Section 5.2(e)  of the Amended and Restated Loan and Security Agreement:

	
		
	First:
	$_______________

	Second:
	$_______________

	Third:
	$_______________

	Fourth:
	$_______________

	Fifth:
	$_______________

	Sixth:
	$_______________

	Seventh:
	$_______________

	Eighth:
	$_______________

	Ninth:
	$_______________

	Tenth:
	$_______________

	Eleventh:
	$_______________

	Twelfth:
	$_______________

Net Total Investment Percentage as of the related Calculation Date: [___]

The undersigned hereby certifies that the information set forth in this Calculation Date Report is true and correct.
White Eagle Asset Portfolio, LP, as Borrower

By:__________________________________
Name:
Title:

6Exhibit 4.2

 

SURGIQUEST, INC.

 

FOURTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

March 10, 2015

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    	
 
    
	
A.
    	
Amendments of Prior Rights   Agreement; Waiver of Right of First Offer
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
1.
    	
Registration Rights
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
1.1
    	
Definitions
    	
2
    
	
 
    	
1.2
    	
Request for   Registration
    	
3
    
	
 
    	
1.3
    	
Company Registration
    	
5
    
	
 
    	
1.4
    	
Form S-3   Registration
    	
5
    
	
 
    	
1.5
    	
Obligations of the   Company
    	
6
    
	
 
    	
1.6
    	
Information From   Holders
    	
8
    
	
 
    	
1.7
    	
Expenses of   Registration
    	
8
    
	
 
    	
1.8
    	
Underwriting   Requirements
    	
8
    
	
 
    	
1.9
    	
Delay of Registration
    	
9
    
	
 
    	
1.10
    	
Indemnification
    	
9
    
	
 
    	
1.11
    	
Reports Under the   Exchange Act
    	
11
    
	
 
    	
1.12
    	
Assignment of   Registration Rights
    	
11
    
	
 
    	
1.13
    	
Limitations on   Subsequent Registration Rights
    	
12
    
	
 
    	
1.14
    	
Lock-Up Agreement
    	
12
    
	
 
    	
1.15
    	
Termination of   Registration Rights
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
2.
    	
Covenants of the   Company
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
2.1
    	
Delivery of Financial   Statements
    	
13
    
	
 
    	
2.2
    	
Inspection
    	
14
    
	
 
    	
2.3
    	
Right of First Offer
    	
14
    
	
 
    	
2.4
    	
Qualified Small Business   Stock Status
    	
16
    
	
 
    	
2.6
    	
Expenses of Board   Members
    	
16
    
	
 
    	
2.7
    	
Equity Compensation
    	
16
    
	
 
    	
2.7
    	
Insurance
    	
16
    
	
 
    	
2.5
    	
Termination of   Covenants
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
3.
    	
Miscellaneous
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
3.1
    	
Termination
    	
17
    
	
 
    	
3.2
    	
Entire Agreement
    	
17
    
	
 
    	
3.3
    	
Successors and Assigns
    	
17
    
	
 
    	
3.4
    	
Amendments and Waivers
    	
17
    
	
 
    	
3.5
    	
Notices
    	
18
    
	
 
    	
3.6
    	
Severability
    	
18
    
	
 
    	
3.7
    	
Governing Law
    	
18
    
	
 
    	
3.8
    	
Counterparts
    	
18
    
	
 
    	
3.9
    	
Titles and Subtitles
    	
18
    
	
 
    	
3.10
    	
Aggregation of Stock
    	
18
    

 

i

 

SURGIQUEST, INC.

 

FOURTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

This Fourth Amended and Restated Investors’ Rights Agreement (this “Agreement”) is made as of the 10th day of March, 2015, by and among SurgiQuest, Inc., a Delaware corporation (the “Company”), the holders of the Company’s Series A Preferred Stock set forth on Exhibit A hereto (the “Series A Holders”), the holders of the Company’s Series B Preferred Stock set forth on Exhibit B hereto (the “Series B Holders”), the holders of the Company’s Series C Preferred Stock set forth on Exhibit C hereto (the “Series C Holders”), the holders of the Company’s Series D Preferred Stock set forth on Exhibit D hereto (the “Series D Holders”) and the purchasers of the Company’s Series E Preferred Stock set forth on Exhibit E hereto (the “Series E Purchasers” and together with the Series A Holders, the Series B Holders, the Series C Holders and the Series D Holders, the “Investors”).

 

RECITALS

 

A.                                    The Company, the Series D Holders, the Series C Holders, the Series B Holders and the Series A Holders have previously entered into a Third Amended and Restated Investors’ Rights Agreement dated as of September 27, 2012 (the “Prior Rights Agreement”), pursuant to which the Company granted the Series A Holders, the Series B Holders, the Series C Holders and the Series D Holders certain rights.

 

B.                                    The Company and the Series E Purchasers entered into a Series E Preferred Stock Purchase Agreement dated as of the date hereof (the “Purchase Agreement”) pursuant to which the Company agreed to sell to the Series E Purchasers and the Series E Purchasers agreed to purchase from the Company shares of the Company’s Series E Preferred Stock on the terms and conditions set forth therein. A condition to the Series E Purchasers’ obligations under the Purchase Agreement is that the undersigned enter into this Agreement in order to provide the Series E Purchasers with (i) certain rights to register shares of the Company’s Common Stock issuable upon conversion of the Series E Preferred Stock held by the Series E Purchasers, (ii) certain rights to receive or inspect information pertaining to the Company, and (iii) a right of first offer with respect to certain issuances by the Company of its securities. The Company desires to induce the Series E Purchasers to purchase shares of Series E Preferred Stock pursuant to the Purchase Agreement by agreeing to the terms and conditions set forth herein.

 

C.                                    The Company the Series D Holders, the Series C Holders, the Series B Holders and the Series A Holders each desire to amend and restate the Prior Rights Agreement to add the Series E Purchasers as parties to this Agreement and make certain other changes.

 

AGREEMENT

 

The parties hereby agree as follows:

 

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A.                                    Amendment of Prior Rights Agreement; Waiver of Right of First Offer. Effective and contingent upon execution of this Agreement by the Company, the holders of at least three-fourths of the shares of Series C Preferred Stock and shares of Series D Preferred Stock, acting together as a separate class on an as-converted basis and the holders of at least two-thirds of the Registrable Securities, as that term is defined in the Prior Rights Agreement, and upon the execution of the Purchase Agreement, the Prior Rights Agreement is hereby amended and restated in its entirety to read as set forth in this Agreement, and the Company, the Series A Holders, the Series B Holders, the Series C Holders and the Series D Holders hereby agree to be bound by the provisions hereof as the sole agreement of the Company, the Series A Holders, the Series B Holders the Series C Holders and the Series D Holders with respect to registration rights of the Company’s securities and certain other rights, as set forth herein. The Series A Holders, the Series B Holders, the Series C Holders and the Series D Holders each hereby waive the right of first offer, including the notice requirements, set forth in Section 2.3 of the Prior Rights Agreement with respect to the issuance of Series E Preferred Stock issuable pursuant to the Purchase Agreement and the shares of Common Stock issuable upon conversion of such Series E Preferred Stock.

 

1.                                      Registration Rights. The Company and the Investors covenant and agree as follows:

 

1.1                               Definitions. For purposes of this Section 1:

 

(a)                                 “Affiliated Fund” means, with respect to a Holder that is a limited liability company or a limited liability partnership, a fund or entity managed by the same manager or managing member or general partner or management company or by an entity controlling, controlled by, or under common control with such manager or managing member or general partner or management company;

 

(b)                                 “Exchange Act” means the Securities Exchange Act of 1934, as amended (and any successor thereto) and the rules and regulations promulgated thereunder;

 

(c)                                  “Excluded Registration” means a registration statement relating solely to the sale of securities of participants in a Company stock plan, a registration relating to a corporate reorganization or transaction under Rule 145 of the Securities Act;

 

(d)                                 “Form S-3” means such form under the Securities Act as in effect on the date hereof or any successor form under the Securities Act that permits significant incorporation by reference of the Company’s subsequent public filings under the Exchange Act;

 

(e)                                  “Holder” means any Investor owning or having the right to acquire Registrable Securities or any assignee thereof in accordance with Section 1.12 of this Agreement;

 

(f)                                   “Major Investor” means any Investor that holds at least 350,000 shares of the Registrable Securities of the Company (subject to adjustment for stock splits, stock dividends, combinations, reclassifications or the like). When determining whether an Investor is

 

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a Major Investor, Registrable Securities held by any general partners, managing members and affiliates of such Investor, including Affiliated Funds, shall be aggregated;

 

(g)                                  “Preferred Stock” means the Company’s Series A Preferred Stock (the “Series A Preferred Stock”), the Company’s Series B Preferred Stock (the “Series B Preferred Stock”), the Company’s Series C Preferred Stock (the “Series C Preferred Stock”) the Company’s Series D Preferred Stock (the “Series D Preferred Stock”) and the Company’s Series E Preferred Stock (the “Series E Preferred Stock”).

 

(h)                                 “Qualified IPO” means a firm commitment underwritten public offering by the Company of shares of its Common Stock prior to or in connection with which all the then-outstanding shares of Preferred Stock are automatically converted into shares of Common Stock pursuant to the Restated Certificate;

 

(i)                                     “Register.” “registered,” and “registration” refer to a registration effected by preparing and filing a registration statement or similar document in compliance with the Securities Act, and the declaration or ordering of effectiveness of such registration statement or document;

 

(j)                                    “Registrable Securities” means (i) the shares of Common Stock issuable or issued upon conversion of the Preferred Stock held by the Holders, and (ii) any other shares of Common Stock of the Company issued as (or issuable upon the conversion or exercise of any warrant, right or other security which is issued as) a dividend or other distribution with respect to, or in exchange for or in replacement of, the shares listed in (i); excluding, however, in all cases any Registrable Securities sold in a transaction in which the rights under this Agreement are not assigned, or any shares for which registration rights have terminated pursuant to Section 1.15 of this Agreement;

 

(k)                                 The number of shares of “Registrable Securities then outstanding” shall be determined by the number of shares of Common Stock outstanding which are, and the number of shares of Common Stock issuable pursuant to then exercisable or convertible securities which are, Registrable Securities;

 

(1)                                 “Restated Certificate” means the Company’s Sixth Amended and Restated Certificate of Incorporation, as may be amended from time to time.

 

(m)                             “SEC” means the Securities and Exchange Commission; and

 

(n)                                 “Securities Act” means the Securities Act of 1933, as amended (and any successor thereto) and the rules and regulations promulgated thereunder.

 

1.2                               Request for Registration.

 

(a)                                 If, at any time after the earlier of (i) the four-year anniversary of the date hereof, or (ii) six months after the effective date of the Company’s initial public offering, the Company receives a written request from the Holders of a majority of the Registrable Securities then outstanding and from the Holders of three-fourths of the then outstanding shares of Series C

 

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Preferred Stock, shares of Series D Preferred Stock and shares of Series E Preferred Stock, acting together as a separate class on an as-converted basis, (collectively, the “Initiating Holders”), that the Company file a registration statement under the Securities Act covering the registration of Registrable Securities with an anticipated aggregate offering price to the public of at least $15,000,000, then the Company shall, within 20 days after receiving such request, give written notice of such request to all Holders and shall, subject to the limitations of subsection 1.2(b), use all commercially reasonable efforts to cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered by written notice delivered to the Company within 20 days after the mailing of the aforementioned notice by the Company.

 

(b)                                 If the Initiating Holders intend to distribute the Registrable Securities covered by their request by means of an underwriting, they shall so advise the Company as a part of their request and the Company shall include such information in the written notice referred to in subsection 1.2(a). The underwriter will be selected by the Company, which underwriter shall be reasonably acceptable to the holders of a majority of the outstanding shares of the Registrable Securities that are to be included in the underwriting. In such event, the right of any Holder to include his Registrable Securities in such registration shall be conditioned upon such Holder’s participation in such underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless otherwise mutually agreed by a majority of the outstanding shares held by the Initiating Holders and such Holder) to the extent provided herein. The Company and all Holders proposing to distribute their securities through such underwriting shall enter into an underwriting agreement in customary form with the underwriter or underwriters selected for such underwriting. Notwithstanding any other provision of this Section 1.2, if the underwriter advises the Company in good faith that marketing factors require a limitation of the number of shares to be underwritten, then the Company shall so advise all Holders of Registrable Securities which would otherwise be underwritten pursuant hereto, and the number of shares of Registrable Securities that may be included in the underwriting shall be allocated among all participating Holders thereof, including the Initiating Holders, in proportion (as nearly as practicable) to the amount of Registrable Securities of the Company owned by each participating Holder. In no event shall any Registrable Securities be excluded from such underwriting unless all other securities are first excluded from such offering. Any Registrable Securities excluded from or withdrawn from such underwriting shall be withdrawn from registration.

 

(c)                                  Notwithstanding the foregoing, if the Company shall furnish to the Initiating Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed, the Company shall have the right to defer such filing for a period of not more than 45 days after receipt of the request of the Initiating Holders; provided, however, that the Company may not utilize this right or the similar right set forth in Section 1.4(b)(iii) more than twice in any 12-month period, and provided, further, that the Company shall not register any securities for the account of itself or any other stockholder during such 45-day period (other than in a Qualified IPO or an Excluded Registration).

 

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(d)                                 In addition, the Company shall not be obligated to effect, or to take any action to effect, any registration pursuant to this Section 1.2:

 

(i)                                     If within 30 days of receiving a request pursuant to Section 1.2(a), the Company provides the Initiating Holders notice of the Company’s intent to file a registration statement within 90 days of the date of such request, for a period commencing on the date of such notice and, provided such registration statement is filed within such 90-day period, and ending on the date 180 days after the effective date of such registration statement unless such offering is not the initial public offering of the Company’s securities, in which case, ending on a date 90 days after the effective date of such registration statement; provided that the Company is actively employing in good faith all commercially reasonable efforts to cause such registration statement to become effective; or

 

(ii)                                  If the Initiating Holders propose to dispose of shares of Registrable Securities that may be immediately registered on Form S-3 pursuant to a request made pursuant to Section 1.4 below.

 

1.3                               Company Registration.

 

(a)                                 If (but without any obligation to do so) the Company proposes to register (including for this purpose a registration effected by the Company for stockholders other than the Holders) any of its stock under the Securities Act in connection with the public offering of such securities solely for cash (other than an Excluded Registration), the Company shall, at such time, promptly give each Holder written notice of such registration. Upon the written request of each Holder given within 20 days after mailing of such notice by the Company in accordance with Section 3.5, the Company shall, subject to the provisions of Section 1.8, use all commercially reasonable efforts to cause to be registered under the Securities Act all of the Registrable Securities that each such Holder has requested to be registered if any stock of the Company is registered.

 

(b)                                 The Company shall have the right to terminate or withdraw any registration initiated by it under this Section 1.3 prior to the effectiveness of such registration whether or not any Holder has elected to include securities in such registration. The expenses of such registration shall be borne by the Company, in accordance with Section 1.7 hereof.

 

1.4                               Form S-3 Registration. In case the Company shall receive from any Holder or Holders of the Registrable Securities then outstanding a written request or requests that the Company effect a registration on Form S-3 and any related qualification or compliance with respect to all or a part of the Registrable Securities owned by such Holder or Holders, the Company will:

 

(a)                                 promptly give written notice of the proposed registration, and any related qualification or compliance, to all other Holders; and

 

(b)                                 use all commercially reasonable efforts to effect, as soon as practicable, such registration and all such qualifications and compliances as may be so requested

 

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and as would permit or facilitate the sale and distribution of all or such portion of such Holder’s or Holders’ Registrable Securities as are specified in such request, together with all or such portion of the Registrable Securities of any other Holder or Holders joining in such request as are specified in a written request given within 15 days after receipt of such written notice from the Company; provided, however, that the Company shall not be obligated to effect any such registration, qualification or compliance, pursuant to this Section 1.4: (i) if Form S-3 is not available for such offering by the Holders; (ii) if the Holders, together with the holders of any other securities of the Company entitled to inclusion in such registration, propose to sell Registrable Securities and such other securities (if any) at an aggregate price to the public of less than $1,000,000; (iii)if the Company shall furnish to the Holders a certificate signed by the President of the Company stating that in the good faith judgment of the Board of Directors of the Company, it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed, the Company shall have the right to defer such filing for a period of not more than 45 days after receipt of the request of the Holder or Holders under this Section 1.4; provided, however, that the Company shall not utilize this right or the similar right set forth in Section 1.2(c) more than twice in any 12-month period; (iv)if the Company has, within the 12-month period preceding the date of such request, already effected two registrations on Form S-3 for the Holders pursuant to this Section 1.4; (v) in any jurisdiction in which the Company would be required to qualify to do business or to execute a general consent to service of process in effecting such registration, qualification or compliance unless the Company is already qualified to do business or subject to service of process in that jurisdiction; or (vi) during the period ending 180 days after the effective date of a registration statement subject to Section 1.3.

 

(c)                                  Subject to the foregoing, the Company shall file a registration statement covering the Registrable Securities and other securities so requested to be registered as soon as practicable after receipt of the request or requests of the Holders. Registrations effected pursuant to this Section 1.4 shall not be counted as demands for registration or registrations effected pursuant to Sections 1.2 or 1.3, respectively.

 

1.5                               Obligations of the Company. Whenever required under this Section 1 to effect the registration of any Registrable Securities, the Company shall, as expeditiously as reasonably possible:

 

(a)                                 Prepare and file with the SEC a registration statement with respect to such Registrable Securities and use all commercially reasonable efforts to cause such registration statement to become effective, and, upon the request of the Holders of a majority of the Registrable Securities registered thereunder, keep such registration statement effective for up to 120 days, or until the distribution described in such registration statement is completed, if earlier.

 

(b)                                 Prepare and file with the SEC such amendments and supplements to such registration statement and the prospectus used in connection with such registration statement as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement for up to 120 days, or until the distribution described in such registration statement is completed, if earlier.

 

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(c)                                  Promptly notify the Holders of the effectiveness of such registration statement, and furnish to the Holders such numbers of copies of a prospectus, including any supplement to the prospectus, in conformity with the requirements of the Securities Act, and such other documents as they may reasonably request in order to facilitate the disposition of Registrable Securities owned by them.

 

(d)                                 Following the effective date of such registration statement, notify the Holders of any request by the SEC that the Company amend or supplement such registration statement, or the associated prospectus.

 

(e)                                  Use all commercially reasonable efforts to register and qualify the securities covered by such registration statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holders, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business or to file a general consent to service of process in any such states or jurisdictions unless the Company is already qualified to do business or subject to service of process in that jurisdiction.

 

(f)                                   In the event of any underwritten public offering, enter into and perform its obligations under an underwriting agreement, in usual and customary form, with the managing underwriter of such offering. Each Holder and other security holder participating in such underwriting shall also enter into and perform its obligations under such an agreement.

 

(g)                                  Notify each Holder of Registrable Securities covered by such registration statement at any time when a prospectus relating thereto is required to be delivered under the Securities Act of the happening of any event as a result of which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing, such obligation to continue for 120 days or until the distribution described in such registration statement is completed, if earlier.

 

(h)                                 Cause all such Registrable Securities registered pursuant to this Section 1 to be listed on each national securities exchange or trading system on which similar securities issued by the Company are then listed.

 

(i)                                     Provide a transfer agent and registrar for all Registrable Securities registered pursuant hereunder and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such registration.

 

(j)                                    Make generally available to its security holders, and to deliver to each Holder participating in the registration statement, an earnings statement of the Company that will satisfy the provisions of Section 11(a) of the Securities Act covering a period of 12 months beginning after the effective date of such registration statement as soon as reasonably practicable after the termination of such 12-month period.

 

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1.6                               Information From Holders. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Section 1 with respect to the Registrable Securities of any selling Holder that such Holder shall furnish to the Company such information regarding such Holder, the Registrable Securities held by it, and the intended method of disposition of such securities as shall be required to effect the registration of such Holder’s Registrable Securities. The Company shall have no obligation with respect to any registration requested pursuant to Section 1.2 or Section 1.4 of this Agreement if, as a result of the application of the preceding sentence, the anticipated aggregate offering price of the Registrable Securities to be included in the registration does not equal or exceed the anticipated aggregate offering price required to originally trigger the Company’s obligation to initiate such registration as specified in subsection 1.2(a) or subsection 1.4(b)(ii), whichever is applicable.

 

1.7                               Expenses of Registration. All expenses other than underwriting discounts and commissions incurred in connection with registrations, filings or qualifications pursuant to Sections 1.2, 1.3 and 1.4 including (without limitation) all registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements of counsel for the Company, and the reasonable fees and disbursements of one counsel for the selling Holders selected by them with the approval of the Company, which approval shall not be unreasonably withheld, shall be borne by the Company.

 

1.8                               Underwriting Requirements. In connection with any offering involving an underwriting of shares of the Company’s capital stock, the Company shall not be required under Section 1.3 to include any of the Holders’ securities in such underwriting unless they accept the terms of the underwriting as agreed upon between the Company and the underwriters selected by the Company (or by other persons entitled to select the underwriters), and then only in such quantity as the underwriters determine in their sole discretion will not jeopardize the success of the offering by the Company. If the total amount of securities, including Registrable Securities, requested by stockholders to be included in such offering exceeds the amount of securities sold other than by the Company that the underwriters determine in their sole discretion is compatible with the success of the offering, then the Company shall be required to include in the offering only that number of such securities, including Registrable Securities, which the underwriters determine in their sole discretion will not jeopardize the success of the offering (the securities so included to be apportioned pro rata among the selling stockholders according to the total amount of securities entitled to be included therein owned by each selling stockholder or in such other proportions as shall mutually be agreed to by such selling stockholders) but in no event shall the amount of securities of the selling Holders included in the offering be reduced below 30% of the total amount of securities included in such offering, unless such offering is the initial public offering of the Company’s securities, in which case, the selling stockholders may be excluded if the underwriters make the determination described above and no other stockholder’s securities are included. For purposes of the preceding parenthetical concerning apportionment, for any selling stockholder which is a holder of Registrable Securities and which is a venture capital fund, or a partnership or corporation, the Affiliated Funds, partners, retired partners and stockholders of such holder, or the estates and family members of any such partners and retired partners and any trusts for the benefit of any of the foregoing persons shall be deemed to be a single “selling stockholder,” and any pro-rata reduction with respect to such “selling stockholder” shall be based upon the aggregate amount of shares carrying registration rights

 

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owned by all entities and individuals included in such “selling stockholder,” as defined in this sentence.

 

1.9                               Delay of Registration. No Holder shall have any right to obtain or seek an injunction restraining or otherwise delaying any such registration as the result of any controversy that might arise with respect to the interpretation or implementation of this Section 1.

 

1.10                        Indemnification. In the event any Registrable Securities are included in a registration statement under this Section 1:

 

(a)                                 To the extent permitted by law, the Company will indemnify and hold harmless each Holder, any underwriter (as defined in the Securities Act) for such Holder and each person, if any, who controls such Holder or underwriter within the meaning of the Securities Act or the Exchange Act, against any losses, claims, damages, or liabilities (joint or several) to which they may become subject under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively a “Violation”): (i) any untrue statement or alleged untrue statement of a material fact contained in such registration statement, including any preliminary prospectus or final prospectus contained therein or any amendments or supplements thereto, (ii) the omission or alleged omission to state in such registration statement a material fact required to be stated therein, or necessary to make the statements therein not misleading, or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange Act, any state securities law or any rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Company will pay to each such Holder, underwriter or controlling person, as incurred, any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability, or action if such settlement is effected without the consent of the Company (which consent shall not be unreasonably withheld), nor shall the Company be liable to any Holder, underwriter or controlling person for any such loss, claim, damage, liability, or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished expressly for use in connection with such registration by any such Holder, underwriter or controlling person.

 

(b)                                 To the extent permitted by law, each selling Holder will indemnify and hold harmless the Company, each of its directors, each of its officers who has signed the registration statement, each person, if any, who controls the Company within the meaning of the Securities Act, any underwriter, any other Holder selling securities in such registration statement and any controlling person of any such underwriter or other Holder, against any losses, claims, damages, or liabilities (joint or several) to which any of the foregoing persons may become subject, under the Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims, damages, or liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent (and only to the extent) that such Violation occurs in reliance upon and in conformity with written information furnished by such Holder expressly for use in connection with such registration; and each such Holder will pay, as incurred, any legal or

 

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other expenses reasonably incurred by any person intended to be indemnified pursuant to this subsection 1.10(b), in connection with investigating or defending any such loss, claim, damage, liability, or action; provided, however, that the indemnity agreement contained in this subsection 1.10(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Holder, which consent shall not be unreasonably withheld; provided, that in no event shall any indemnity under this subsection 1.10(b) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder.

 

(c)                                  Promptly after receipt by an indemnified party under this Section 1.10 of notice of the commencement of any action (including any governmental action), such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 1.10, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an indemnified party (together with all other indemnified parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the reasonable fees and expenses to be paid by the indemnifying party, if representation of such indemnified party by the counsel retained by the indemnifying party would be inappropriate due to actual or potential differing interests between such indemnified party and any other party represented by such counsel in such proceeding. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action, if prejudicial to its ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 1.10, but the omission so to deliver written notice to the indemnifying party will not relieve it of any liability that it may have to any indemnified party otherwise than under this Section 1.10.

 

(d)                                 If the indemnification provided for in this Section 1.10 is held by a court of competent jurisdiction to be unavailable to an indemnified party with respect to any loss, liability, claim, damage or expense referred to therein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute to the amount paid or payable by such indemnified party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the indemnifying party on the one hand and of the indemnified party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage or expense as well as any other relevant equitable considerations; provided, that in no event shall any contribution by a Holder under this Subsection 1.10(d) exceed the net proceeds from the offering received by such Holder, except in the case of willful fraud by such Holder. The relative fault of the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission.

 

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(e)                                  Notwithstanding the foregoing, to the extent that the provisions on indemnification and contribution contained in the underwriting agreement entered into in connection with the underwritten public offering are in conflict with the foregoing provisions, the provisions in the underwriting agreement shall control.

 

(f)                                   The obligations of the Company and Holders under this Section 1.10 shall survive the completion of any offering of Registrable Securities in a registration statement under this Section 1, and otherwise.

 

1.11                        Reports Under the Exchange Act. With a view to making available to the Holders the benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the SEC that may at any time permit a Holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3, the Company agrees to:

 

(a)                                 make and keep public information available, as those terms are understood and defined in SEC Rule 144, at all times after 90 days after the effective date of the Qualified IPO so long as the Company remains subject to the periodic reporting requirements under Sections 13 or 15(d) of the Exchange Act;

 

(b)                                 take such action, including the voluntary registration of its Common Stock under Section 12 of the Exchange Act, as is necessary to enable the Holders to utilize Form S-3 for the sale of their Registrable Securities, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering of its securities to the general public is declared effective;

 

(c)                                  file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act; and

 

(d)                                 furnish to any Holder upon request, so long as the Holder owns any Registrable Securities, (i) a written statement by the Company that it has complied with the reporting requirements of SEC Rule 144 (at any time after 90 days after the effective date of the Qualified IPO), the Securities Act and the Exchange Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in availing any Holder of any rule or regulation of the SEC which permits the selling of any such securities without registration or pursuant to such form.

 

1.12                        Assignment of Registration Rights. The rights to cause the Company to register Registrable Securities pursuant to this Section 1 may be assigned (but only with all related obligations) to a transferee or assignee (i) that is a partner, retired partner, member, or retired member of any Holder which is a partnership or limited liability company, (ii) that is a family member or trust for the benefit of any individual Holder; (iii) who acquires shares representing at least 10% of the shares of Registrable Securities then outstanding, or (iv) that is an Affiliated Fund, provided that in each case the transferee or assignee holds at least 5% of the

 

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Registrable Securities then outstanding; and provided further that the Company is, promptly after such transfer, furnished with written notice of the name and address of such transferee or assignee and the securities with respect to which such registration rights are being assigned; and provided, further, that such assignment shall be effective only if the transferee agrees in writing to be bound by this Agreement and immediately following such transfer the further disposition of such securities by the transferee or assignee is restricted under the Securities Act. For the purposes of determining the number of shares of Registrable Securities held by a transferee or assignee, the holdings of transferees and assignees of (x) a partnership who are partners or retired partners of such partnership or (y) a limited liability company who are members or retired members of such limited liability company (including family members of such partners or members who acquire Registrable Securities by gift, will or intestate succession) shall be aggregated together and with the partnership or limited liability company.

 

1.13                        Limitations on Subsequent Registration Rights. From and after the date of this Agreement, the Company shall not, without the prior written consent of the Holders of at least two-thirds of the outstanding Registrable Securities, enter into any agreement with any holder or prospective holder of any securities of the Company which would allow such holder or prospective holder (a) to include any of such securities in any registration filed under Section 1.2 hereof, unless under the terms of such agreement, such holder or prospective holder may include such securities in any such registration only to the extent that the inclusion of his securities will not reduce the amount of the Registrable Securities of the Holders which is included or (b) to make a demand registration which could result in such registration statement being declared effective prior to the earlier of either of the dates set forth in subsection 1.2(a) or within 120 days of the effective date of any registration effected pursuant to Section 1.2.

 

1.14                        Lock-Up Agreement.

 

(a)                                 Lock-Up Period; Agreement. In connection with the initial public offering of the Company’s securities and upon request of the Company or the underwriters managing such offering of the Company’s securities, each Holder agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company, however or whenever acquired (other than those included in the registration) without the prior written consent of the Company or such underwriters, as the case may be, for such period of time (not to exceed 180 days but subject to such extension or extensions as may be required by the underwriters in order to publish research reports while complying with the Rule 2711 of the National Association of Securities Dealers, Inc.) from the effective date of such registration statement as may be requested by the Company or such managing underwriters and to execute an agreement reflecting the foregoing as may be requested by the underwriters at the time of the Company’s initial public offering.

 

(b)                                 Limitations. The obligations described in Section 1.14(a) shall apply only if all officers and directors of the Company and all greater than 1% stockholders enter into similar agreements, and shall not apply to an Excluded Registration.

 

(c)                                  Stop-Transfer Instructions. In order to enforce the foregoing covenants, the Company may impose stop-transfer instructions with respect to the securities of

 

12

 

each Holder (and the securities of every other person subject to the restrictions in Section 1.14(a)).

 

(d)                                 Transferees Bound. Each Holder agrees that it will not transfer securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 1.14, provided that this Section 1.14(d) shall not apply to transfers pursuant to a registration statement or transfers after the 12-month anniversary of the effective date of the Company’s initial public offering subject to this Section 1.14.

 

(e)                                  Legends. Each Holder agrees that a legend reading substantially as follows shall be placed on all certificates representing all Registrable Securities of each Holder (and the shares or securities of every other person subject to the restriction contained in this Section 1.14):

 

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A LOCK-UP PERIOD AS SET FORTH IN AN AGREEMENT BETWEEN THE COMPANY AND THE ORIGINAL HOLDER OF THESE SECURITIES, A COPY OF WHICH MAY BE OBTAINED AT THE ISSUER’S PRINCIPAL OFFICE. SUCH LOCKUP PERIOD IS BINDING ON TRANSFEREES OF THESE SHARES.

 

1.15                        Termination of Registration Rights. No Holder shall be entitled to exercise any right provided for in this Section 1 after the earlier of (i) with respect to any Holder, at such time after the Qualified IPO as Rule 144 or another similar exemption under the Securities Act is available for the sale of all of such Holder’s shares during a three-month period without registration, or (ii) upon termination of this Agreement, as provided in Section 3.1.

 

2.                                      Covenants of the Company.

 

2.1                               Delivery of Financial Statements. The Company shall deliver to each Major Investor:

 

(a)                                 as soon as practicable, but in any event within 120 days after the end of each fiscal year of the Company (or such longer period of time as may be required by the Company’s independent public accountants), an income statement for such fiscal year, a balance sheet of the Company and statement of stockholder’s equity as of the end of such year, and a statement of cash flows for such year, such year-end financial reports to be in reasonable detail, prepared in accordance with generally accepted accounting principles (“GAAP”), and audited and certified by an independent public accounting firm of nationally recognized standing recommended by management and approved by the Board of Directors;

 

(b)                                 as soon as practicable, but in any event within 45 days after the end of each of the first three quarters of each fiscal year of the Company, an unaudited profit or loss statement, a statement of cash flows for such fiscal quarter and an unaudited balance sheet as of the end of such fiscal quarter;

 

13

 

(c)                                  within 30 days of the end of each month, an unaudited income statement and a statement of cash flows and balance sheet for and as of the end of such month, in reasonable detail; and

 

(d)                                 as soon as practicable, but in any event prior to 30 days before the end of each fiscal year, a budget and business plan for the next fiscal year, prepared on a monthly basis, and, as soon as prepared, any other updated or revised budgets for such fiscal year prepared by the Company.

 

2.2                               Inspection. The Company shall permit each Major Investor at such Major Investor’s expense, to visit and inspect the Company’s properties, to examine its books of account and records and to discuss the Company’s affairs, finances and accounts with its officers, all upon reasonable advance notice and at such reasonable times as may be requested by such Major Investor.

 

2.3                               Right of First Offer. Subject to the terms and conditions specified in this Section 2.3, the Company hereby grants to each Major Investor a right of first offer with respect to future sales by the Company of its Shares (as hereinafter defined). For purposes of this Section 2.3, Major Investor includes any general partners, managing members and affiliates of such Major Investor, including Affiliated Funds. A Major Investor who chooses to exercise the right of first offer may designate as purchasers under such right itself or its partners or affiliates, including Affiliated Funds, in such proportions as it deems appropriate.

 

Each time the Company proposes to offer any shares of, or securities, rights to purchase securities or debt convertible into or exercisable for any shares of, any class of its capital stock (“Shares”), the Company shall first make an offering of such Shares to each Major Investor in accordance with the following provisions:

 

(a)                                 The Company shall deliver a notice (the “RFO Notice”) to the Investors stating (i) its bona fide intention to offer such Shares, (ii) the number of such Shares to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such Shares.

 

(b)                                 Within 15 days after delivery of the RFO Notice, each Major Investor may elect to purchase or obtain, at the price and on the terms specified in the RFO Notice, up to that portion of such Shares which equals the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Major Investor bears to the sum of (i) the total number of shares of Common Stock then outstanding (assuming full conversion and exercise of all convertible or exercisable securities) and (ii) the total number of shares of Common Stock issuable to employees, consultants or directors pursuant to a stock option plan, restricted stock plan, or other stock plan approved by the Board of Directors. Such purchase shall be completed at the same closing as that of any third party purchasers or at an additional closing. The Company shall promptly, in writing, inform each Major Investor that purchases all the shares available to it (each, a “Fully-Exercising Investor”) of any other Major Investor’s failure to do likewise. During the 10-day period commencing after receipt of such information, each Fully-Exercising Investor shall be entitled to obtain that portion of the Shares for which Major Investors were entitled to

 

14

 

subscribe but which were not subscribed for by the Major Investors that is equal to the proportion that the number of shares of Common Stock issued and held, or issuable upon conversion and exercise of all convertible or exercisable securities then held, by such Fully-Exercising Investor bears to the total number of shares of Common Stock held by all Fully-Exercising Investors (assuming full conversion and exercise of all convertible or exercisable securities).

 

(c)                                  The Company may, during the 45-day period following the expiration of the period provided in subsection 2.3(b) hereof, offer the remaining unsubscribed portion of the Shares to any person or persons at a price not less than, and upon terms no more favorable to the offeree than those specified in the RFO Notice. If the Company does not enter into an agreement for the sale of the Shares within such period, or if such agreement is not consummated within 60 days after the execution thereof, the right provided hereunder shall be deemed to be revived and such Shares shall not be offered unless first reoffered to the Major Investors in accordance herewith.

 

(d)                                 The right of first offer in this Section 2.3 shall not be applicable to:

 

(i)                                     Common Stock issued pursuant to stock dividends, stock splits or similar transactions, as described in Section 4(d)(ii) of the Restated Certificate;

 

(ii)                                  up to 1,356,246 shares of Common Stock (plus any additional shares reserved under the Company’s Amended and Restated 2006 Stock Plan (the “Stock Plan”) pursuant to Section 2.7 hereof or such greater number as may be approved by the Board of Directors, including the approval of both Preferred Directors (as defined in Section 5(b) of Article IV(B) of the Restated Certificate)) issued or issuable to employees, officers, consultants or directors of the Company or other persons performing services for the Company pursuant to the Stock Plan;

 

(iii)                               capital stock, or options or warrants to purchase capital stock, issued to financial institutions or lessors in connection with commercial credit arrangements, equipment financings, commercial property lease transactions or similar transactions the terms of which are approved by the Board of Directors;

 

(iv)                              Common Stock or Preferred Stock issuable upon exercise of warrants, notes, or other convertible securities outstanding as of the date of the Restated Certificate;

 

(v)                                 Common Stock issued upon conversion of the Preferred Stock;

 

(vi)                              capital stock issued or issuable to an entity as a component of any business relationship with such entity for the purpose of (A) joint venture, technology licensing or development activities, (B) distribution, supply or manufacture of the Company’s products or services, or (C) any other arrangements involving corporate partners that are primarily for purposes other than raising capital, provided that the terms of such business

 

15

 

relationship with such entity are approved by the Board of Directors, including the approval of at least two Preferred Directors; or

 

(vii)                           Shares of Series E Preferred Stock issued in accordance with the terms of that certain Series E Preferred Stock Purchase Agreement made on or about the date hereof by and among the Company and the purchasers listed on Exhibit A attached thereto, as the same may be amended, restated, supplemented or otherwise modified from time to time.

 

2.4                               Qualified Small Business Stock Status. In the event that the Company proposes to take an action or engage in a transaction that would reasonably be expected to result in the Shares no longer being “qualified small business stock” within the meaning of Section 1202(c) of the Internal Revenue Code of 1986, as amended (the “Code”), the Company shall notify the Major Investors and consult in good faith to devise a mutually agreeable and reasonable alternative course of action or transaction structure that would preserve such status. In addition, the Company shall submit to the Major Investors and to the Internal Revenue Service any reports that may be required under Section 1202(d)(1)(C) of the Code and any related Treasury Regulations. In addition, within ten (10) days after any Major Investor has delivered to the Company a written request therefor, the Company shall deliver to such Major Investor a written statement informing the Major Investor whether, in the Company’s good-faith judgment after a reasonable investigation, such Major Investor’s interest in the Company constitutes “qualified small business stock” as defined in Section 1202(c) of the Code, or would constitute “qualified small business stock,” if determination of whether stock constitutes “qualified small business stock” were made by taking into account the modifications set forth in Section 1045(b)(4) of the Code. The Company’s obligation to furnish a written statement pursuant to this Section 2.4 shall continue notwithstanding the fact that a class of the Company’s stock may be traded on an established securities market.

 

2.5                               Expenses of Board Members. The Company shall pay the reasonable and documented expenses incurred by each Preferred Director in connection with their attendance or participation at a meeting of the Company’s Board of Directors.

 

2.6                               Equity Compensation. Any award of stock options, shares of restricted stock or other awards made by the Company to its employees, directors, officers, consultants, independent contractors or otherwise shall made at the fair market value of the Common Stock on the date of grant as determined in good faith by the Company’s Board of Directors; provided, however, that in the case of stock options meeting the requirements of Section 422 of the Internal Revenue Code of 1986, as amended or replaced from time to time, granted to an owner of stock possessing more than 10% of the total combined voting power of all classes of stock of the Company, the exercise price shall not be less than 110% of the fair market value of the Common Stock.

 

2.7                               Insurance. The Company shall maintain, from financially sound and reputable insurers Directors and Officers liability insurance in an amount and on terms and conditions satisfactory to the Board of Directors and, upon a Liquidation Transaction, obtain “tail coverage” in respect of such policy in an amount and on terms and conditions satisfactory to the Board of Directors.

 

16

 

2.8                               Termination of Covenants.

 

(a)                                 The covenants set forth in Sections 2.1 through Section 2.7 shall terminate as to each Holder and be of no further force or effect (i) immediately prior to the consummation of a Qualified IPO, or (ii) upon termination of this Agreement, as provided in Section 3.1.

 

(b)                                 The covenants set forth in Sections 2.1 and 2.2 shall terminate as to each Holder and be of no further force or effect when the Company first becomes subject to the periodic reporting requirements of Sections 13 or 15(d) of the Exchange Act, if this occurs earlier than the events described in Section 2.8(a) above.

 

3.                                      Miscellaneous.

 

3.1                               Termination. This Agreement shall terminate, and have no further force and effect, when the Company shall consummate a transaction or series of related transactions deemed to be a liquidation, dissolution or winding up of the Company pursuant to the Restated Certificate (including without limitation a Liquidation Transaction, as such term is defined in the Restated Certificate).

 

3.2                               Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.

 

3.3                               Successors and Assigns. Except as otherwise provided in this Agreement, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties (including transferees of any of the Preferred Stock or any Common Stock issued upon conversion thereof). Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

3.4                               Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of (a) the Company, (b) the Holders of at least three-fourths of the shares of Series C Preferred Stock, shares of Series D Preferred Stock and shares of Series E Preferred Stock acting together as a separate class on an as-converted basis, and (c) the holders of at least two-thirds of the Registrable Securities then outstanding; provided, however, that if such amendment or waiver would adversely affect the rights of a specific series of Preferred Stock in a manner different from the other series of Preferred Stock, then such amendment or waiver shall require the consent of the Investors holding a majority of outstanding shares of such series of Preferred Stock; and any amendment or waiver of the rights granted to the Major Investors in Section 2 above shall require the consent of the Holders of a majority of outstanding shares of the Registrable Securities held by the Major Investors. Notwithstanding the foregoing, this Agreement may be amended with only the written consent of the Company for the sole purpose of including additional holders of Preferred Stock as “Investors” and “Holders.” Any amendment or waiver effected in accordance with this paragraph shall be binding upon each

 

17

 

party to this Agreement, whether or not such party has signed such amendment or waiver, each future holder of all such Registrable Securities, and the Company.

 

3.5                               Notices. Unless otherwise provided, any notice required or permitted by this Agreement shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by facsimile, or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, and addressed to the party to be notified at such party’s address or facsimile number as set forth on Exhibit A to the Purchase Agreement (or if such Party is not a party to the Purchase Agreement, at such Party’s address or facsimile number as set forth on the Exhibits hereto), or as subsequently modified by written notice.

 

3.6                               Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement, and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

 

3.7                               Governing Law. This Agreement and all acts and transactions pursuant hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of laws.

 

3.8                               Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Facsimile, .pdf or other execution and delivery of this Agreement is legal, valid and binding for all purposes.

 

3.9                               Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

3.10                        Aggregation of Stock. All shares of the Preferred Stock held or acquired by affiliated entities or persons shall be aggregated together for the purpose of determining the availability of any rights under this Agreement.

 

[Signature Pages Follow]

 

18

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
SURGIQUEST, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Kourosh Azarbarzin
    
	
 
    	
Name:
    	
Kourosh   Azarbarzin
    
	
 
    	
Title:
    	
President and   Chief Executive Officer
    

 

 

	
 
    	
Company   Address: 
    	
333 Quarry Road
    
	
 
    	
 
    	
Milford, CT 0646
    
	
 
    	
 
    	
 
    
	
 
    	
Fax Number:   (203) 799-2401
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
Aphelion   Medical Fund, L.P.
    
	
 
    	
By: Aphelion Capital, LLC, its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ned Scheetz
    
	
 
    	
Name: Ned   Scheetz
    
	
 
    	
Title: Managing   Director
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

	
 
    	
Presidio   Partnership 2014, L.P.
    
	
 
    	
By: Presidio Partners 2014 GP, LLC its General   Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ David J.   Collier, MD
    
	
 
    	
Name: David J.   Collier, MD
    
	
 
    	
Title: Manager
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
/s/ Charles   Crocker
    
	
 
    	
Charles Crocker
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Crocker   2004 Charitable Remainder Unitrust
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles   Crocker, Trustee
    
	
 
    	
Name: Charles   Crocker
    
	
 
    	
Title: Trustee
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Trust   Fund B F/B/O Charles Crocker
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Charles   Crocker, Trustee
    
	
 
    	
Name: Charles   Crocker
    
	
 
    	
Title: Trustee
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
CALIFORNIA   TECHNOLOGY PARTNERS II, LP
    
	
 
    	
 
    	
 
    
	
 
    	
By:  California Technology Ventures II, LLC
    
	
 
    	
Its:  General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ William A.   Hanna
    
	
 
    	
Name:
    	
William A. Hanna
    
	
 
    	
Title:
    	
Managing   Director
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
/s/ Peter Wies
    
	
 
    	
Peter Wies
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
River   Cities Capital Fund IV, L.P.
    
	
 
    	
By:   River Cities Management IV, LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ J. Carter   McNabb
    
	
 
    	
By: J. Carter   McNabb
    
	
 
    	
Its: Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
River   Cities Capital Fund IV (NQP), L.P.
    
	
 
    	
By:   River Cities Management IV, LLC
    
	
 
    	
Its:   General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ J. Carter   McNabb
    
	
 
    	
By: J. Carter   McNabb
    
	
 
    	
Its: Manager
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
Fletcher   Spaght Ventures II, L.P.
    
	
 
    	
By:Fletcher   Spaght Associates II, L.P.,
    
	
 
    	
its   General Partner
    
	
 
    	
By:FSA   II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Linda Tufts
    
	
 
    	
By: Linda Tufts
    
	
 
    	
Its: Managing   Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FSV   II, L.P.
    
	
 
    	
By:Fletcher   Spaght Associates II, L.P.,
    
	
 
    	
its   General Partner
    
	
 
    	
By:FSA   II, LLC, its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Linda Tufts
    
	
 
    	
By: Linda Tufts
    
	
 
    	
Its: Managing   Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FSV   II-B, L.P.
    
	
 
    	
By:Fletcher   Spaght Associates II-B, LLC,
    
	
 
    	
its   General Partner
    
	
 
    	
By:FSA   II, LLC, its Manager
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Linda Tufts
    
	
 
    	
By: Linda Tufts
    
	
 
    	
Its: Managing   Member
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
/s/ Joseph DeVivo
    
	
 
    	
Joseph   DeVivo
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
MOSAIX   VENTURES, LP
    
	
 
    	
By:
    	
MOSAIX VENTURES   MANAGEMENT, LLC
    
	
 
    	
Its:
    	
General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ranjan Lal
    
	
 
    	
 
    	
Ranjan Lal,   Managing Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MOSAIX   VENTURES LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ranjan Lal
    
	
 
    	
 
    	
Ranjan Lal, Member
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

The parties have executed this Fourth Amended and Restated Investors’ Rights Agreement as of the date first above written.

 

 

	
 
    	
MERRY   MEDICAL LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ George Abi-Chahine
    
	
 
    	
Name:
    	
George   Abi-Chahine
    
	
 
    	
Title:
    	
Chairman &   CEO
    

 

SIGNATURE PAGE TO FOURTH AMENDED AND RESTATED

INVESTORS’ RIGHTS AGREEMENT

 

 

EXHIBIT A

 

SERIES A HOLDERS

 

Name

 

Aphelion Medical Fund

 

Presidio Partners 2014, L.P.

 

Mosaix Ventures LP

 

Charles Crocker

 

Crocker 2004 Charitable Remainder Unitrust

1 Post Street, Room 2515

San Francisco, CA 94104

Attn: Charles Crocker

Email: ccrocker@ccapital.us

 

California Technology Partners II, LP

 

Peter Wiest

 

 

EXHIBIT B

 

SERIES B HOLDERS

 

Name

 

Aphelion Medical Fund

 

Presidio Partners 2014, L.P.

 

Mosaix Ventures LP

 

Charles Crocker

 

Crocker 2004 Charitable Remainder Unitrust

 

Trust Fund B F/B/O Charles Crocker

 

California Technology Partners II, LP

 

Joseph DeVivo

 

Peter Wiest

 

 

EXHIBIT C

 

SERIES C HOLDERS

 

Name

 

Aphelion Medical Fund

 

Presidio Partners 2014, L.P.

 

Mosaix Ventures LP

 

Charles Crocker

 

Crocker 2004 Charitable Remainder Unitrust

 

Trust Fund B F/B/O Charles Crocker

 

California Technology Partners II, LP

 

Joseph DeVivo

 

Peter Wiest

 

River Cities Capital Fund IV, L.P.

 

River Cities Capital Fund IV (NQP), L.P.

 

Fletcher Spaght Ventures II, L.P.

 

FSV II, L.P.

 

FSV II-B, L.P.

 

 

EXHIBIT D

 

SERIES D HOLDERS

 

Name

 

Aphelion Medical Fund

 

Presidio Partners 2014, L.P.

 

Mosaix Ventures LLC

 

Mosaix Ventures LP

 

Charles Crocker

 

California Technology Partners II, LP

 

Joseph DeVivo

 

Peter Wiest

 

River Cities Capital Fund IV, L.P.

 

River Cities Capital Fund IV (NQP), L.P.

 

Fletcher Spaght Ventures II, L.P.

 

FSV II, L.P.

 

FSV II-B, L.P.

 

 

EXHIBIT E

 

SERIES E PURCHASERS

 

Aphelion Medical Fund

 

Presidio Partners 2014, L.P.

 

Merry Medical LLC

 

Mosaix Ventures LP

 

Mosaix Ventures LLC

 

Charles Crocker

 

California Technology Partners II, LP

 

Joseph DeVivo

 

Peter Wiest

 

River Cities Capital Fund IV, L.P.

 

River Cities Capital Fund IV (NQP), L.P.

 

Fletcher Spaght Ventures II, L.P.

 

FSV II, L.P.

 

FSV II-B, L.P.

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