Document:

EX-10.15

 Exhibit 10.15 

LOAN AND SECURITY AGREEMENT 

THIS LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of June 9, 2011 (the “Effective
Date”) between SILICON VALLEY BANK, a California corporation with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”), and ACACIA COMMUNICATIONS, INC., a
Delaware corporation (“Borrower”), provides the terms on which Bank shall lend to Borrower and Borrower shall repay Bank. The parties agree as follows: 

 

	 	1	ACCOUNTING AND OTHER TERMS 

 Accounting terms not defined in this Agreement shall
be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement,
unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein. 
  

	 	2	LOAN AND TERMS OF PAYMENT 

 2.1 Promise to Pay. Borrower hereby
unconditionally promises to pay Bank the outstanding principal amount of all Credit Extensions and accrued and unpaid interest thereon as and when due in accordance with this Agreement. 

2.1.1 Revolving Advances. 

(a) Availability. Subject to the terms and conditions of this Agreement, Bank shall make Advances not exceeding the Availability
Amount. Amounts borrowed under the Revolving Line may be repaid and, prior to the Revolving Line Maturity Date, reborrowed, subject to the applicable terms and conditions precedent herein. 

(b) Termination; Repayment. The Revolving Line terminates on the Revolving Line Maturity Date, when the principal amount of all
Advances, the unpaid interest thereon, and all other Obligations relating to the Revolving Line shall be immediately due and payable. 

2.1.2 Letters of Credit Sublimit.  

(a) As part of the Revolving Line, Bank shall issue or have issued Letters of Credit denominated in Dollars or a Foreign Currency for
Borrower’s account. The aggregate Dollar Equivalent amount utilized for the issuance of Letters of Credit shall at all times reduce the amount otherwise available for Advances under the Revolving Line. The aggregate Dollar Equivalent of the
face amount of outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve) may not exceed the lesser of (A) One Hundred Thousand Dollars ($100,000.00), minus (i) the sum of all
amounts used for Cash Management Services, and minus (ii) the FX Reduction Amount, or (B) the lesser of the Revolving Line or the Borrowing Base, minus (i) the sum of all outstanding principal amounts of any Advances (including any
amounts used for Cash Management Services), and minus (ii) the FX Reduction Amount. 

 (b) If, on the Revolving Line Maturity Date (or the effective date of any termination of this
Agreement), there are any outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to 105% (if the Letter of Credit is denominated in Dollars) or 110% (if the Letter of Credit is denominated
in a Foreign Currency) of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure
all of the Obligations relating to such Letters of Credit. All Letters of Credit shall be in form and substance acceptable to Bank in its sole discretion and shall be subject to the terms and conditions of Bank’s standard Application and Letter
of Credit Agreement (the “Letter of Credit Application”). Borrower agrees to execute any further documentation in connection with the Letters of Credit as Bank may reasonably request. Borrower further agrees to be bound by the
regulations and interpretations of the issuer of any Letters of Credit guaranteed by Bank and opened for Borrower’s account or by Bank’s interpretations of any Letter of Credit issued by Bank for Borrower’s account, and Borrower
understands and agrees that Bank shall not be liable for any error, negligence, or mistake, whether of omission or commission, in following Borrower’s instructions or those contained in the Letters of Credit or any modifications, amendments, or
supplements thereto. 
 (c) The obligation of Borrower to immediately reimburse Bank for drawings made under Letters of Credit shall be
absolute, unconditional, and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement, such Letters of Credit, and the Letter of Credit Application. 

(d) Borrower may request that Bank issue a Letter of Credit payable in a Foreign Currency. If a demand for payment is made under any such
Letter of Credit, Bank shall treat such demand as an Advance to Borrower of the Dollar Equivalent of the amount thereof (plus fees and charges in connection therewith such as wire, cable, SWIFT or similar charges). 

(e) To guard against fluctuations in currency exchange rates, upon the issuance of any Letter of Credit payable in a Foreign Currency, Bank
shall create a reserve (the “Letter of Credit Reserve”) under the Revolving Line in an amount equal to ten percent (10%) of the face amount of such Letter of Credit. The amount of the Letter of Credit Reserve may be adjusted by
Bank from time to time to account for fluctuations in the exchange rate. The availability of funds under the Revolving Line shall be reduced by the amount of such Letter of Credit Reserve for as long as such Letter of Credit remains outstanding.

 2.1.3 Foreign Exchange Sublimit. As part of the Revolving Line, Borrower may enter into foreign exchange contracts with Bank under
which Borrower commits to purchase from or sell to Bank a specific amount of Foreign Currency (each, a “FX Forward Contract”) on a specified date (the “Settlement Date”). FX Forward Contracts shall have a Settlement
Date of at least one (1) FX Business Day after the contract date and shall be subject to a reserve of ten percent (10%) of each outstanding FX Forward Contract (the “FX Reserve”). The aggregate amount of FX Forward
Contracts at any one time may not exceed ten (10) times the lesser of (A) One Hundred Thousand Dollars ($100,000.00), minus (i) the sum of all amounts used for Cash Management Services, and minus (ii) the Dollar Equivalent of the
face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), or (B) the lesser of Revolving Line or the Borrowing Base, minus (i) the sum

  
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of all outstanding principal amounts of any Advances (including any amounts used for Cash Management Services), and minus (ii) the Dollar Equivalent of the face amount of any outstanding
Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve). The amount otherwise available for Credit Extensions under the Revolving Line shall be reduced by an amount equal to ten percent (10%) of
each outstanding FX Forward Contract (the “FX Reduction Amount”). Any amounts needed to fully reimburse Bank for any amounts not paid by Borrower in connection with FX Forward Contracts will be treated as Advances under the
Revolving Line and will accrue interest at the interest rate applicable to Advances. 
 2.1.4 Cash Management Services Sublimit.
Borrower may use the Revolving Line for Bank’s cash management services, which may include merchant services, direct deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management services
agreements (collectively, the “Cash Management Services”), in an aggregate amount not to exceed the lesser of (A) One Hundred Thousand Dollars ($100,000.00), minus (i) the Dollar Equivalent of the face amount of any
outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), and minus (ii) the FX Reduction Amount, or (B) the lesser of Revolving Line or the Borrowing Base, minus (i) the sum
of all outstanding principal amounts of any Advances, minus (ii) the Dollar Equivalent of the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), and minus
(iii) the FX Reduction Amount. Any amounts Bank pays on behalf of Borrower for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable to Advances. 

2.1.5 Growth Capital Advances. 

(a) Availability. Subject to the terms and conditions of this Agreement, during the Draw Period, Bank agrees to make up to three
(3) advances (each a “Growth Capital Advance” and collectively the “Growth Capital Advances”) available to Borrower in an amount not to exceed the Growth Capital Advance Amount. Each Growth Capital Advance must
be in an amount equal to at least One Million Dollars ($1,000,000.00). After repayment, no Growth Capital Advance may be reborrowed. Borrower may prepay any Growth Capital Advance at any time without premium or penalty. 

(b) Interest Period. Commencing on the first Payment Date of the month following the month in which the Funding Date for the applicable
Growth Capital Advance occurs, and continuing on the Payment Date of each month thereafter, Borrower shall make monthly payments of interest, in arrears, on the principal amount of each Growth Capital Advance at the rate set forth in
Section 2.3(a)(ii). 
 (c) Repayment. Commencing on April 2, 2012 and continuing on each Payment Date thereafter, Borrower
shall repay each Growth Capital Advance in (i) thirty-six (36) equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.3(a)(ii). All outstanding principal and
accrued and unpaid interest under the Growth Capital Advances and all other outstanding Obligations with respect to the Growth Capital Advances, are due and payable in full on the Growth Capital Maturity Date. 

  
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 2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of
any Advances (including any amounts used for Cash Management Services), plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX
Reduction Amount exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess. 

2.3 Payment of Interest on the Credit Extensions. 

(a) Interest Rate. 
 (i)
Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to one and one half of one percentage point (1.50%) above the Prime Rate, which
interest shall be payable monthly in accordance with Section 2.3(f) below. 
 (ii) Growth Capital Advances. Subject to
Section 2.3(b), the principal amount outstanding for each Growth Capital Advance shall accrue interest at a floating per annum rate equal to three percentage points (3.0%) above the Prime Rate, which interest shall be payable monthly in
accordance with Section 2.3(f) below. 
 (b) Default Rate. Immediately upon the occurrence and during the continuance of an
Event of Default, Obligations shall bear interest at a rate per annum which is five percentage points (5.00%) above the rate that is otherwise applicable thereto (the “Default Rate”) unless Bank otherwise elects from time to
time in its sole discretion to impose a smaller increase. Fees and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Bank Expenses) but which are not paid when due shall bear interest
until paid at a rate equal to the highest rate applicable to the Obligations. Payment or acceptance of the increased interest rate provided in this Section 2.3(b) is not a permitted alternative to timely payment and shall not constitute a
waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Bank. 
 (c) Adjustment to Interest Rate.
Changes to the interest rate of any Credit Extension based on changes to the Prime Rate shall be effective on the effective date of any change to the Prime Rate and to the extent of any such change. 

(d) Computation; 360-Day Year. In computing interest, the date of the making of any Credit Extension shall be included and the date of
payment shall be excluded; provided, however, that if any Credit Extension is repaid on the same day on which it is made, such day shall be included in computing interest on such Credit Extension. Interest shall be computed on the basis of a
360-day year for the actual number of days elapsed. 
 (e) Debit of Accounts. Bank may debit any of Borrower’s deposit accounts,
including the Designated Deposit Account, for principal and interest payments or any other amounts Borrower owes Bank when due. These debits shall not constitute a set-off. 

(f) Interest Payment Date. Unless otherwise provided, interest is payable monthly on the Payment Date. 

  
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 2.4 Fees. Borrower shall pay to Bank: 

(a) Revolving Line Commitment Fee. A fully earned, non-refundable commitment fee of Twelve Thousand Five Hundred Dollars ($12,500.00)
on the Effective Date (the “Revolving Line Commitment Fee”); 
 (b) Growth Capital Line Commitment Fee. A fully
earned, non-refundable commitment fee of Seven Thousand Five Hundred Dollars ($7,500.00) on the Effective Date (the “Growth Capital Line Commitment Fee”); 

(c) Good Faith Deposit. Borrower has paid to Bank a deposit of Ten Thousand Dollars ($10,000.00) (the “Good Faith
Deposit”) to initiate Bank’s due diligence review process. Any portion of the Good Faith Deposit not utilized to pay Bank Expenses will be applied towards the Revolving Line Commitment Fee and/or the Growth Capital Line Commitment Fee;

 (d) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, upon the
issuance of such Letter of Credit, each anniversary of the issuance during the term of such Letter of Credit, and upon the renewal of such Letter of Credit by Bank; and 

(e) Bank Expenses. All Bank Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation of this
Agreement) incurred through and after the Effective Date, when due. 
 2.5 Payments. All payments (including prepayments) to be made
by Borrower under any Loan Document shall be made in immediately available funds in U.S. Dollars, without setoff or counterclaim, before 12:00 p.m. Eastern time on the date when due. Payments of principal and/or interest received after 12:00 p.m.
Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business Day, and additional fees or interest, as applicable,
shall continue to accrue until paid. 
  

	 	3	CONDITIONS OF LOANS 

 3.1 Conditions Precedent to Initial Credit Extension.
Bank’s obligation to make the initial Credit Extension is subject to the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, such documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate, including, without limitation: 
 (a) duly executed original signatures to the Loan Documents; 

(b) duly executed original signatures to the Control Agreements; 

(c) Borrower’s Operating Documents and a long-form good standing certificate of Borrower certified by the Secretary of State of the State
of Delaware as of a date no earlier than thirty (30) days prior to the Effective Date; 

  
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 (d) Secretary’s Corporate Borrowing Certificate; 

(e) Certificates of Foreign Qualification of Borrower (as applicable), certified by the applicable secretary of state as of a date no earlier
than thirty (30) days prior to the Effective Date; 
 (f) certified copies, dated as of a recent date, of financing statement searches,
as Bank shall request, accompanied by written evidence (including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens or have been or, in connection with the initial Credit
Extension, will be terminated or released; 
 (g) the Perfection Certificate of Borrower, together with the duly executed original signature
thereto; 
 (h) a landlord’s consent in favor of Bank for 3 Clock Tower Place, Suite 210, Maynard, Massachusetts 01754, by the
respective landlord thereof, together with the duly executed original signatures thereto; 
 (i) a legal opinion of Borrower’s counsel
dated as of the Effective Date together with the duly executed original signature thereto; 
 (j) evidence satisfactory to Bank that the
insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Bank; and 

(k) payment of the fees and Bank Expenses then due as specified in Section 2.4 hereof. 

3.2 Conditions Precedent to all Credit Extensions. Bank’s obligations to make each Credit Extension, including the initial Credit
Extension, is subject to the following conditions precedent: 
 (a) except as otherwise provided in Section 3.4, timely receipt
of an executed Payment/Advance Form; 
 (b) the representations and warranties in this Agreement shall be true, accurate, and complete in
all material respects on the date of the Payment/Advance Form and on the Funding Date of each Credit Extension; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date, and no
Event of Default shall have occurred and be continuing or result from the Credit Extension. Each Credit Extension is Borrower’s representation and warranty on that date that the representations and warranties in this Agreement remain true,
accurate, and complete in all material respects; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and
provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; and 

(c) in Bank’s reasonable discretion, there has not been any material impairment in the general affairs, management, results of operation,
financial condition or the prospect of repayment of the Obligations, or any material adverse deviation by Borrower from the most recent business plan of Borrower presented to and accepted by Bank. 

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

3.4 Procedures for Borrowing. 

(a) Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this
Agreement, to obtain an Advance (other than Advances under Sections 2.1.2 or 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Eastern time on the Funding Date of the
Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any
telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or
his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due. 
 (b) Growth
Capital Advances. Subject to the prior satisfaction of all other applicable conditions to the making of a Growth Capital Advance set forth in this Agreement, to obtain a Growth Capital Advance, Borrower must notify Bank (which notice shall be
irrevocable) by electronic mail or facsimile no later than 12:00 p.m. Eastern time three (3) Business Days before the proposed Funding Date. The notice shall be a Payment/Advance Form, must be signed by a Responsible Officer or designee. If
Borrower satisfies the conditions of each Growth Capital Advance, Bank shall disburse such Growth Capital Advance by transfer to the Designated Deposit Account. 
  

	 	4	CREATION OF SECURITY INTEREST 

 4.1 Grant of Security Interest. Borrower
hereby grants Bank, to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Bank, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all
proceeds and products thereof. 
 4.2 Priority of Security Interest. Borrower represents, warrants, and covenants that the
security interest granted herein is and shall at all times continue to be a first priority perfected 

  
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security interest in the Collateral (subject only to Permitted Liens that may have superior priority to Bank’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim,
Borrower shall promptly notify Bank in a writing signed by Borrower of the general details thereof and grant to Bank in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to
be in form and substance reasonably satisfactory to Bank. 
 If this Agreement is terminated, Bank’s Lien in the Collateral shall
continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Bank’s obligation to make Credit Extensions has terminated, Bank shall,
at Borrower’s sole cost and expense, release its Liens in the Collateral and all rights therein shall revert to Borrower. 
 4.3
Authorization to File Financing Statements. Borrower hereby authorizes Bank to file financing statements, without notice to Borrower, with all appropriate jurisdictions to perfect or protect Bank’s interest or rights hereunder, including a
notice that any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Bank under the Code. Such financing statements may indicate the Collateral as “all assets of the Debtor” or
words of similar effect, or as being of an equal or lesser scope, or with greater detail, all in Bank’s discretion. 
  

	 	5	REPRESENTATIONS AND WARRANTIES 

 Borrower represents and warrants as follows: 

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

  
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 The execution, delivery and performance by Borrower of the Loan Documents to which it is a party
have been duly authorized, and do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate any material Requirement of Law, (iii) contravene, conflict
or violate any applicable order, writ, judgment, injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or affected, (iv) require any
action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and are in full force and effect) or (v) constitute an event
of default under any material agreement by which Borrower is bound. Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have a material adverse effect on
Borrower’s business. 
 5.2 Collateral. Borrower has good title to, has rights in, and the power to transfer each item of the
Collateral upon which it purports to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the deposit accounts with Bank, the deposit accounts, if any, described in the
Perfection Certificate delivered to Bank in connection herewith, or of which Borrower has given Bank notice and taken such actions as are necessary to give Bank a perfected security interest therein. The Accounts are bona fide, existing obligations
of the Account Debtors. 
 The Collateral is not in the possession of any third party bailee (such as a warehouse) except as
otherwise provided in the Perfection Certificate. None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as permitted pursuant to Section 7.2. 

All Inventory is in all material respects of good and marketable quality, free from material defects. 

Borrower is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to
its customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) material Intellectual Property licensed to Borrower and noted on the Perfection Certificate. Each Patent
which it owns or purports to own and which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns or purports to own and which is material to Borrower’s business has been
judged invalid or unenforceable, in whole or in part. To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any third party except to the extent such claim would not
reasonably be expected to have a material adverse effect on Borrower’s business. 
 Except as noted on the Perfection Certificate,
Borrower is not a party to, nor is it bound by, any Restricted License. 

  
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 5.3 Accounts Receivable. For any Eligible Account in any Borrowing Base Certificate, all
statements made and all unpaid balances appearing in all invoices, instruments and other documents evidencing such Eligible Accounts are and shall be true and correct and all such invoices, instruments and other documents, and all of Borrower’s
Books are genuine and in all respects what they purport to be. Whether or not an Event of Default has occurred and is continuing, Bank may notify any Account Debtor owing Borrower money of Bank’s security interest in such funds and verify the
amount of such Eligible Account. All sales and other transactions underlying or giving rise to each Eligible Account shall comply in all material respects with all applicable laws and governmental rules and regulations. Borrower has no knowledge of
any actual or imminent Insolvency Proceeding of any Account Debtor whose accounts are Eligible Accounts in any Borrowing Base Certificate. To the best of Borrower’s knowledge, all signatures and endorsements on all documents, instruments, and
agreements relating to all Eligible Accounts are genuine, and all such documents, instruments and agreements are legally enforceable in accordance with their terms. 

5.4 Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by
or against Borrower or any of its Subsidiaries involving more than, individually or in the aggregate, Fifty Thousand Dollars ($50,000.00). 

5.5 Financial Statements; Financial Condition. All consolidated financial statements for Borrower and any of its Subsidiaries delivered
to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations as of the date or for the period indicated therein, subject to customary year end adjustments.
There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to Bank. 

5.6 Solvency. The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of
its liabilities; Borrower is not left with unreasonably small capital after the transactions in this Agreement; and Borrower is able to pay its debts (including trade debts) as they mature. 

5.7 Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower
has complied in all material respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or an “affiliate” of a “holding company” or a “subsidiary
company” of a “holding company” as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any laws, ordinances or rules, the violation of which could reasonably be expected to have a
material adverse effect on its business. None of Borrower’s or any of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge, by previous Persons, in disposing,
producing, storing, treating, or transporting any hazardous substance other than legally. Borrower and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and given all notices
to, all Government Authorities that are necessary to continue their respective businesses as currently conducted, except as would not be reasonably expected to have a material adverse effect on Borrower’s business. 

  
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 5.8 Subsidiaries; Investments. Borrower does not own any stock, partnership interest or
other equity securities except for Permitted Investments. 
 5.9 Tax Returns and Payments; Pension Contributions. Borrower has
timely filed all required tax returns and reports, and Borrower has timely paid when due and payable or duly filed all valid extensions in connection therewith all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower. Borrower may defer payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies
Bank in writing of the commencement of, and any material development in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes from obtaining a Lien upon any of the
Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower
has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination
of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any
other governmental agency. 
 5.10 Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions as working
capital and to fund its general business requirements and not for personal, family, household or agricultural purposes. 
 5.11
Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given to Bank pursuant to this Agreement, as of the date such representation, warranty, or other statement was made,
taken together with all such written certificates and written statements given to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the certificates or statements,
in light of the circumstances in which they were made, not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual
results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results). 

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

  
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	 	6	AFFIRMATIVE COVENANTS 

 Borrower shall do all of the following: 

6.1 Government Compliance. Maintain its and all its Subsidiaries’ legal existence and good standing in their respective
jurisdictions of formation and maintain qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse effect on Borrower’s business or operations. Borrower shall comply, and have
each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business. 

6.2 Financial Statements, Reports, Certificates. Deliver to Bank: 

(a) Borrowing Base Reports. Within thirty (30) days after the last day of each month, aged listings of accounts receivable and
accounts payable (by invoice date) (the “Borrowing Base Reports”); 
 (b) Borrowing Base Certificate. Within thirty
(30) days after the last day of each month and together with the Borrowing Base Reports, a duly completed Borrowing Base Certificate signed by a Responsible Officer; 

(c) Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month, a
company prepared consolidated balance sheet and income statement covering Borrower’s consolidated operations for such month certified by a Responsible Officer and in a form acceptable to Bank (the “Monthly Financial
Statements”); 
 (d) Monthly Compliance Certificate. Within thirty (30) days after the last day of each month and
together with the Monthly Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this
Agreement, and such other information as Bank may reasonably request; 
 (e) Annual Audited Financial Statements. As soon as
available, but no later than one hundred eighty (180) days after the last day of Borrower’s fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified opinion on the
financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion (the “Audited Financial Statements”); provided however that Bank will waive the requirements of this
Section 6.2(e) if the Board determines, in its reasonable discretion, not to pursue an audit during any given fiscal year, and Bank will accept in place of the Audited Financial Statements unaudited financial statements as prepared by Borrower;

 (f) Other Statements. Within ten (10) days of delivery, copies of all material statements, reports and notices made available
to Borrower’s security holders or to any holders of Subordinated Debt; 
 (g) SEC Filings. In the event that Borrower becomes
subject to the reporting requirements under the Exchange Act within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Borrower with the SEC, any Governmental Authority succeeding to
any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be. Documents 

  
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required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so
delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the Internet at Borrower’s website address; 

(h) Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its
Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, Fifty Thousand Dollars ($50,000) or more; 

(i) Board-Approved Projections. As soon as available, but no later than the first Business Day of the calendar month following the
calendar month in which the Board approval occurred, but at least annually, and contemporaneously with any updates or changes thereto, Board-approved financial projections as to the following fiscal year, in a form of presentation reasonably
acceptable to Bank; and 
 (j) Other Financial Information. Other financial information reasonably requested by Bank. 

6.3 Inventory; Returns. Keep all Inventory in good and marketable condition, free from material defects. Returns and allowances between
Borrower and its Account Debtors shall follow Borrower’s customary practices as they exist at the Effective Date. Borrower must promptly notify Bank of all returns, recoveries, disputes and claims that involve more than Three Hundred Thousand
Dollars ($300,000). 
 6.4 Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax
returns and reports and timely pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower and each of its Subsidiaries, except for deferred payment
of any taxes contested pursuant to the terms of Section 5.9 hereof, and shall deliver to Bank, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and
deferred compensation plans in accordance with their terms. 
 6.5 Insurance. Keep its business and the Collateral insured for
risks and in amounts standard for companies in Borrower’s industry, stage of development and location and as Bank may reasonably request. Insurance policies shall be in a form, with companies, and in customary amounts that are reasonably
satisfactory to Bank. All property policies shall have a lender’s loss payable endorsement showing Bank as lender loss payee and waive subrogation against Bank and shall provide that the insurer must give Bank at least twenty (20) days
notice before canceling, amending, or declining to renew its policy. All liability policies shall show, or have endorsements showing, Bank as an additional insured, and all such policies (or the loss payable and additional insured endorsements)
shall provide that the insurer shall give Bank at least twenty (20) days notice before canceling, amending, or declining to renew its policy. At Bank’s request, Borrower shall deliver certified copies of policies and evidence of all
premium payments. Proceeds payable under any policy shall, at Bank’s option, be payable to Bank on account of the Obligations. If Borrower fails to obtain insurance as required under this Section 6.5

  
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or to pay any amount or furnish any required proof of payment to third persons and Bank, Bank may make all or part of such payment or obtain such insurance policies required in this
Section 6.5, and take any action under the policies Bank deems prudent. 
 6.6 Operating Accounts. 

(a) Maintain all of its and all of its Subsidiaries’ operating, depository, and securities accounts with Bank and Bank’s Affiliates.

 (b) Provide Bank five (5) days prior written notice before establishing any Collateral Account at or with any bank or financial
institution other than Bank or Bank’s Affiliates. For each Collateral Account that Borrower at any time maintains, Borrower shall cause the applicable bank or financial institution (other than Bank) at or with which any Collateral Account is
maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Bank’s Lien in such Collateral Account in accordance with the terms hereunder which Control Agreement may
not be terminated without the prior written consent of Bank. The provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit
of Borrower’s employees and identified to Bank by Borrower as such. 
 6.7 Protection of Intellectual Property Rights. 

(a) (i) Protect, defend and maintain the validity and enforceability of its Intellectual Property in a manner consistent with prudent business
practices; (ii) promptly advise Bank in writing of material infringements of its Intellectual Property of which Borrower becomes aware; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned,
forfeited or dedicated to the public without Bank’s written consent, which consent shall not be unreasonably withheld. 
 (b) Provide
written notice to Bank within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public). Borrower shall take such steps as Bank reasonably requests
to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Bank to have a security interest in it that might otherwise be restricted or
prohibited by law or by the terms of any such Restricted License, whether now existing or entered into in the future, and (ii) Bank to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance
with Bank’s rights and remedies under this Agreement and the other Loan Documents. 
 6.8 Litigation Cooperation. From the date
hereof and continuing through the termination of this Agreement, make available to Bank, without expense to Bank, Borrower and its officers, employees and agents and Borrower’s books and records, to the extent that Bank may deem them reasonably
necessary to prosecute or defend any third-party suit or proceeding instituted by or against Bank with respect to any Collateral or relating to Borrower. 

  
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 6.9 Further Assurances. Execute any further instruments and take further action as Bank
may reasonably request to perfect or continue Bank’s Lien in the Collateral or to effect the purposes of this Agreement. 
  

	 	7	NEGATIVE COVENANTS 

 Borrower shall not do any of the following without
Bank’s prior written consent: 
 7.1 Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively,
“Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn-out or obsolete Equipment;
(c) in connection with Permitted Liens and Permitted Investments; and (d) of non-exclusive licenses, joint ventures, strategic alliances, collaborative transactions, partnerships or similar transactions for the use of the property of
Borrower or its Subsidiaries in the ordinary course of business. 
 7.2 Changes in Business, Management, Ownership, or Business
Locations. (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related thereto; (b) liquidate or
dissolve; or (c) (i) have a change in senior management; or (ii) enter into any transaction or series of related transactions in which the stockholders of Borrower who were not stockholders immediately prior to the first such
transaction own more than forty-nine percent (49%) of the voting stock of Borrower immediately after giving effect to such transaction or related series of such transactions (other than by the sale of Borrower’s equity securities in a
public offering or to venture capital investors so long as Borrower identifies to Bank the venture capital investors prior to the closing of the transaction and provides to Bank a description of the material terms of the transaction). 

Borrower shall not, without at least thirty (30) days prior written notice to Bank: (1) add any new offices or business locations,
including warehouses (unless such new offices or business locations contain less than Ten Thousand Dollars ($10,000) in Borrower’s assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess
of Twenty-Five Thousand Dollars ($25,000.00) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate, (2) change its jurisdiction of organization, (3) change its organizational
structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by its jurisdiction of organization. If Borrower intends to deliver any portion of the Collateral valued, individually or in the
aggregate, in excess of Twenty-Five Thousand Dollars ($25,000.00) to a bailee, and Bank and such bailee are not already parties to a bailee agreement governing both the Collateral and the location to which Borrower intends to deliver the Collateral,
then Borrower will first receive the written consent of Bank, and such bailee shall execute and deliver a bailee agreement in form and substance satisfactory to Bank in its sole discretion. 

7.3 Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or
acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person. A Subsidiary may merge or consolidate into another Subsidiary or into Borrower. 

  
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 7.4 Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any
Subsidiary to do so, other than Permitted Indebtedness. 
 7.5 Encumbrance. Create, incur, allow, or suffer any Lien on any of
its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject to the first priority security
interest granted herein, or enter into any agreement, document, instrument or other arrangement (except with or in favor of Bank) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from
assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of
“Permitted Liens” herein. 
 7.6 Maintenance of Collateral Accounts. Maintain any Collateral Account except pursuant
to the terms of Section 6.6(b) hereof. 
 7.7 Distributions; Investments. (a) Pay any dividends or make any
distribution or payment or redeem, retire or purchase any capital stock provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible securities or otherwise in exchange
thereof, (ii) Borrower may pay dividends solely in common stock, and (iii) Borrower may repurchase the stock of former employees or consultants pursuant to stock repurchase agreements so long as an Event of Default does not exist at the
time of such repurchase and would not exist after giving effect to such repurchase, provided such repurchase does not exceed in the aggregate of Two Hundred Thousand Dollars ($200,000) per fiscal year; or (b) directly or indirectly make any
Investment other than Permitted Investments, or permit any of its Subsidiaries to do so. 
 7.8 Transactions with Affiliates.
Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no less
favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person. 
 7.9 Subordinated
Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor, or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any
document relating to the Subordinated Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Bank. 

7.10 Compliance. Become an “investment company” or a company controlled by an “investment company”, under the
Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds
of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate
any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from

  
 - 16 - 

 
participation in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension, profit sharing and deferred compensation plan which
could reasonably be expected to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency. 

 

	 	8	EVENTS OF DEFAULT 

 Any one of the following shall constitute an event of default
(an “Event of Default”) under this Agreement: 
 8.1 Payment Default. Borrower fails to (a) make any payment of
principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to
payments due on the Maturity Date). During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period);

 8.2 Covenant Default. 

(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, or 6.7(b) or violates any covenant in Section 7;
or 
 (b) Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement contained in
this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within ten
(10) days after the occurrence thereof; provided, however, that if the default cannot by its nature be cured within the ten (10) day period or cannot after diligent attempts by Borrower be cured within such ten (10) day period, and
such default is likely to be cured within a reasonable time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure
to cure the default shall not be deemed an Event of Default (but no Credit Extensions shall be made during such cure period). Cure periods provided under this section shall not apply, among other things, to financial covenants or any other covenants
set forth in clause (a) above; 
 8.3 Material Adverse Change. A Material Adverse Change occurs; 

8.4 Attachment; Levy; Restraint on Business. 

(a) (i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control of
Borrower (including a Subsidiary) on deposit or otherwise maintained with Bank or any Bank Affiliate, or (ii) a notice of lien or levy is filed against any of Borrower’s assets by any government agency, and the same under subclauses
(i) and (ii) hereof are not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); provided, however, no Credit Extensions shall be made during any ten
(10) day cure period; or 
 (b) (i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into
possession of a trustee or receiver, or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business; 

  
 - 17 - 

 8.5 Insolvency. (a) Borrower is unable to pay its debts (including trade debts) as
they become due or otherwise becomes insolvent; (b) Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within thirty (30) days (but no Credit Extensions
shall be made while of any of the conditions described in clause (a) exist and/or until any Insolvency Proceeding is dismissed); 

8.6 Other Agreements. There is, under any agreement to which Borrower is a party with a third party or parties, (a) any default
resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount individually or in the aggregate in excess of Fifty Thousand Dollars ($50,000); or (b) any default by
Borrower, the result of which could have a material adverse effect on Borrower’s business; 
 8.7 Judgments. One or more
final judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Fifty Thousand Dollars ($50,000) (not covered by independent third-party insurance as to which liability has been accepted by
such insurance carrier) shall be rendered against Borrower and the same are not, within ten (10) days after the entry thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the
expiration of any such stay (provided that no Credit Extensions will be made prior to the discharge, stay, or bonding of such judgment, order, or decree); 

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

 8.9 Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked
or invalidated or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability thereof or deny that it has any further liability or obligation thereunder, or the
Obligations shall for any reason be subordinated or shall not have the priority contemplated by this Agreement. 
  

	 	9	BANK’S RIGHTS AND REMEDIES 

 9.1 Rights and Remedies. While an Event
of Default occurs and continues Bank may, without notice or demand, do any or all of the following: 
 (a) declare all Obligations
immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately due and payable without any action by Bank); 

  
 - 18 - 

 (b) stop advancing money or extending credit for Borrower’s benefit under this Agreement or
under any other agreement between Borrower and Bank; 
 (c) demand that Borrower (i) deposit cash with Bank in an amount equal to 105%
(if the Letter of Credit is denominated in Dollars) or 110% (if the Letter of Credit is denominated in a Foreign Currency) of the aggregate face amount of all Letters of Credit remaining undrawn (plus all interest, fees, and costs due or to become
due in connection therewith (as estimated by Bank in its good faith business judgment)), to secure all of the Obligations relating to such Letters of Credit, as collateral security for the repayment of any future drawings under such Letters of
Credit, and Borrower shall forthwith deposit and pay such amounts, and (ii) pay in advance all letter of credit fees scheduled to be paid or payable over the remaining term of any Letters of Credit; 

(d) terminate any FX Forward Contracts; 

(e) settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Bank considers advisable,
notify any Person owing Borrower money of Bank’s security interest in such funds, and verify the amount of such account; 
 (f) make
any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the Collateral. Borrower shall assemble the Collateral if Bank requests and make it available as Bank designates. Bank may
enter premises where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise any Lien which appears to be prior or superior to its security interest and pay all expenses
incurred. Borrower grants Bank a license to enter and occupy any of its premises, without charge, to exercise any of Bank’s rights or remedies; 

(g) apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Bank owing to or for the
credit or the account of Borrower; 
 (h) ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and
sell the Collateral. Bank is hereby granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask works, rights of use of any name, trade secrets, trade names, Trademarks, and
advertising matter, or any similar property as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under this Section,
Borrower’s rights under all licenses and all franchise agreements inure to Bank’s benefit; 
 (i) place a “hold” on any
account maintained with Bank and/or deliver a notice of exclusive control, any entitlement order, or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral; 

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

(k) exercise all rights and remedies available to Bank under the Loan Documents or at law or equity, including all remedies provided under the
Code (including disposal of the Collateral pursuant to the terms thereof). 

  
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 9.2 Power of Attorney. Borrower hereby irrevocably appoints Bank as its lawful
attorney-in-fact, exercisable upon the occurrence and during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security; (b) sign Borrower’s name on any invoice or
bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Bank determines reasonable; (d) make, settle, and adjust
all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to
terminate or discharge the same; and (f) transfer the Collateral into the name of Bank or a third party as the Code permits. Borrower hereby appoints Bank as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to
perfect or continue the perfection of Bank’s security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied in full and Bank is under no further obligation to make Credit
Extensions hereunder. Bank’s foregoing appointment as Borrower’s attorney in fact, and all of Bank’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been fully repaid and performed and
Bank’s obligation to provide Credit Extensions terminates. 
 9.3 Protective Payments. If Borrower fails to obtain the
insurance called for by Section 6.5 or fails to pay any premium thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Bank may obtain such insurance or make such payment,
and all amounts so paid by Bank are Bank Expenses and immediately due and payable, bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Bank will make reasonable efforts to provide Borrower with
notice of Bank obtaining such insurance at the time it is obtained or within a reasonable time thereafter. No payments by Bank are deemed an agreement to make similar payments in the future or Bank’s waiver of any Event of Default. 

9.4 Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is continuing, Bank may apply any funds
in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or other disposition of the Collateral, or otherwise, to the Obligations in such order as Bank shall determine in its
sole discretion. Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Bank for any deficiency. If Bank, in its good faith business judgment, directly or indirectly enters into a deferred
payment or other credit transaction with any purchaser at any sale of Collateral, Bank shall have the option, exercisable at any time, of either reducing the Obligations by the principal amount of the purchase price or deferring the reduction of the
Obligations until the actual receipt by Bank of cash therefor. 
 9.5 Bank’s Liability for Collateral. So long as Bank
complies with applicable law and reasonable banking practices regarding the safekeeping of the Collateral in the possession or under the control of Bank, Bank shall not be liable or responsible for: (a) the safekeeping of the

  
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Collateral; (b) any loss or damage to the Collateral (except for any loss or damage caused by Bank’s gross negligence or willful misconduct); (c) any diminution in the value of the
Collateral; or (d) any act or default of any carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral. 

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

9.7 Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default,
nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees held by Bank on which Borrower is liable. 

 

	 	10	NOTICES 

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

 

			
	If to Borrower:	  	 Acacia Communications, Inc.
 3 Clock Tower
Place, Suite 210
 Maynard, Massachusetts 01754
 Attn: Raj
Shanmugaraj
 Fax:
                                        

 Email: Raj.Shanmugaraj @acacia-inc.com

		
	If to Bank:	  	 Silicon Valley Bank
 275 Grove Street, Suite
2-200
 Newton, Massachusetts 02466

Attn:    Mr. Dan Allred

Fax:     (617) 969-439

Email:  DAllred@svb.com

  
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	with a copy to:	  	 Riemer & Braunstein LLP
 Three Center
Plaza
 Boston, Massachusetts 02108

Attn:    David A. Ephraim, Esquire

Fax:     (617) 880-3456

Email:  DEphraim@riemerlaw.com

  

	 	11	CHOICE OF LAW, VENUE, AND JURY TRIAL WAIVER 

 Massachusetts law governs the Loan
Documents without regard to principles of conflicts of law. Borrower and Bank each submit to the exclusive jurisdiction of the State and Federal courts in Boston, Massachusetts; provided, however, that nothing in this Agreement shall be deemed to
operate to preclude Bank from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or to enforce a judgment or other court order in favor of Bank. Borrower
expressly submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or forum non
conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process issued in such action or suit and agrees
that service of such summons, complaints, and other process may be made by registered or certified mail addressed to Borrower at the address set forth in Section 10 of this Agreement and that service so made shall be deemed completed upon the
earlier to occur of Borrower’s actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid. 

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

	 	12	GENERAL PROVISIONS 

 12.1 Successors and Assigns. This Agreement binds and
is for the benefit of the successors and permitted assigns of each party. Borrower may not assign this Agreement or any rights or obligations under it without Bank’s prior written consent (which may be granted or withheld in Bank’s
discretion). Bank has the right, without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or any part of, or any interest in, Bank’s obligations, rights, and benefits under this Agreement
and the other Loan Documents (other than the Warrant, as to which assignment, transfer and other such actions are governed by the terms of the Warrant). 

  
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 12.2 Indemnification. Borrower agrees to indemnify, defend and hold Bank and its
directors, officers, employees, agents, attorneys, or any other Person affiliated with or representing Bank (each, an “Indemnified Person”) harmless against: (a) all obligations, demands, claims, and liabilities (collectively,
“Claims”) claimed or asserted by any other party in connection with the transactions contemplated by the Loan Documents; and (b) all losses or expenses (including Bank Expenses) in any way suffered, incurred, or paid by such
Indemnified Person as a result of, following from, consequential to, or arising from transactions between Bank and Borrower contemplated by the Loan Documents (including reasonable attorneys’ fees and expenses), except for Claims and/or losses
directly caused by such Indemnified Person’s gross negligence or willful misconduct. 
 12.3 Time of Essence. Time is of
the essence for the performance of all Obligations in this Agreement. 
 12.4 Severability of Provisions. Each provision of this
Agreement is severable from every other provision in determining the enforceability of any provision. 
 12.5 Correction of Loan
Documents. Bank may correct patent errors and fill in any blanks in the Loan Documents consistent with the agreement of the parties. 

12.6 Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or
termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the
generality of the foregoing, no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan
Document. Any waiver granted shall be limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or dissimilar, or give rise to, or evidence, any obligation or
commitment to grant any further waiver. The Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of the Loan Documents merge into the Loan Documents. 
 12.7 Counterparts. This
Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement. 

12.8 Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has
terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been paid in full and satisfied. The obligation
of Borrower in Section 12.2 to indemnify Bank shall survive until the statute of limitations with respect to such claim or cause of action shall have run. 

  
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 12.9 Confidentiality. In handling any confidential information, Bank shall exercise the
same degree of care that it exercises for its own proprietary information, but disclosure of information may be made: (a) to Bank’s Subsidiaries or Affiliates (such Subsidiaries and Affiliates, together with Bank, collectively, “Bank
Entities”), provided that such Bank Entities agree to be bound by the terms of this Section 12.9; (b) to prospective transferees or purchasers of any interest in the Credit Extensions (provided, however, Bank shall use its best
efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order; (d) to Bank’s regulators or as otherwise required in
connection with Bank’s examination or audit; (e) as Bank considers appropriate in exercising remedies under the Loan Documents; and (f) to third-party service providers of Bank so long as such service providers have executed a
confidentiality agreement with Bank with terms no less restrictive than those contained herein. Confidential information does not include information that is either: (i) in the public domain or in Bank’s possession when disclosed to Bank,
or becomes part of the public domain after disclosure to Bank through no fault of Bank; or (ii) disclosed to Bank by a third party if Bank does not know that the third party is prohibited from disclosing the information. 

Bank Entities may use the confidential information for reporting purposes and the development and distribution of databases and market
analyses so long as such confidential information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the immediately preceding sentence shall survive the termination of this
Agreement. 
 12.10 Right of Set Off. Borrower hereby grants to Bank, a lien, security interest and right of set off as security for
all Obligations to Bank pursuant to this Agreement, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter in the possession, custody, safekeeping or control of Bank or any entity
under the control of Bank (including a Bank subsidiary) or in transit to any of them. At any time after the occurrence and during the continuance of an Event of Default, without demand or notice, Bank may set off the same or any part thereof and
apply the same to any liability or obligation of Borrower even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO
ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

12.11 Electronic Execution of Documents. The words “execution,” “signed,” “signature” and words of like
import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a
paper-based recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions Act. 

12.12 Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this
Agreement. 

  
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 12.13 Construction of Agreement. The parties mutually acknowledge that they and their
attorneys have participated in the preparation and negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the uncertainty to exist. 

12.14 Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement. The
parties do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different from those of parties to an arm’s-length contract. 

12.15 Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or
remedies under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and assigns; (b) relieve or discharge the obligation or liability of any person not an express party to
this Agreement; or (c) give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement. 
  

	 	13	DEFINITIONS 

 13.1 Definitions. As used in the Loan Documents, the word
“shall” is mandatory, the word “may” is permissive, the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural, and numbers denoting
amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms have the following meanings: 

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

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

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

“Audited Financial Statements” is defined in Section 6.2(e) hereof. 

“Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under
the Borrowing Base minus (b) the Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserve, minus (c) the FX Reduction Amount,
minus (d) any amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Advances. 

  
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 “Bank” is defined in the preamble hereof. 

“Bank Entities” is defined in Section 12.9. 

“Bank Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses)
for preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower. 

“Board” is Borrower’s board of directors. 

“Borrower” is defined in the preamble hereof. 

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

“Borrowing Base” is (a) eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s most
recent Borrowing Base Certificate plus (b) the lesser of (i) One Million Dollars ($1,000,000) and (ii) fifty percent (50%) of Eligible Purchase Orders, provided, however, that Bank may decrease the foregoing percentages in its
good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral. 

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

“Borrowing Base Report” is defined in Section 6.2(a). 

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

“Cash Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or
any agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more than one (1) year after its creation and having the highest rating from either
Standard & Poor’s Ratings Group or Moody’s Investors Service, Inc.; and (c) Bank’s certificates of deposit issued maturing no more than one (1) year after issue. 

“Cash Management Services” is defined in Section 2.1.4. 

“Claims” is defined in Section 12.2. 

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

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

“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account. 

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

“Control Agreement” is any control agreement entered into among the depository institution at which Borrower maintains
a Deposit Account or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower, and Bank pursuant to which Bank obtains control (within the meaning of the Code) over such
Deposit Account, Securities Account, or Commodity Account. 
 “Copyrights” are any and all copyright rights,
copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret. 

  
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 “Credit Extension” is any Advance, Growth Capital Advance, Letter of
Credit, FX Forward Contract, amount utilized for Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit. 

“Danish Subsidiary” means Acacia Communications Europe APS. 

“Default Rate” is defined in Section 2.3(b). 

“Deferred Revenue” is all amounts received or invoiced in advance of performance under contracts and not yet
recognized as revenue. 
 “Deposit Account” is any “deposit account” as defined in the Code with
such additions to such term as may hereafter be made. 
 “Designated Deposit Account” is Borrower’s deposit
account, account number                     , maintained with Bank. 

“Dollars,” “dollars” or use of the sign “$” means only lawful money of the United
States and not any other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful money of the United States. 

“Dollar Equivalent” is, at any time, (a) with respect to any amount denominated in Dollars, such amount, and
(b) with respect to any amount denominated in a Foreign Currency, the equivalent amount therefor in Dollars as determined by Bank at such time on the basis of the then-prevailing rate of exchange in San Francisco, California, for sales of the
Foreign Currency for transfer to the country issuing such Foreign Currency. 
 “Draw Period” is the period of
time from the Effective Date through the earlier to occur of (a) March 31, 2012 or (b) an Event of Default. 

“Effective Date” is defined in the preamble hereof. 

“Eligible Accounts” means Accounts which arise in the ordinary course of Borrower’s business that meet all
Borrower’s representations and warranties in Section 5.3. Bank reserves the right at any time after the Effective Date to adjust any of the criteria set forth below and to establish new criteria in its good faith business judgment. Unless
Bank otherwise agrees in writing, Eligible Accounts shall not include: 
 (a) Accounts for which the Account Debtor is
Borrower’s Affiliate, officer, employee, or agent; 
 (b) Accounts that the Account Debtor has not paid within ninety (90) days of
invoice date regardless of invoice payment period terms; 
 (c) Accounts with credit balances over ninety (90) days from invoice date;

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

  
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 (e) Accounts owing from an Account Debtor which does not have its principal place of business in
the United States (except for Eligible Foreign Accounts); 
 (f) Accounts billed and/or payable outside of the United States; 

(g) Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as
creditor, lessor, supplier or otherwise - sometimes called “contra” accounts, accounts payable, customer deposits or credit accounts); 

(h) Accounts owing from an Account Debtor which is a United States government entity or any department, agency, or instrumentality thereof
unless (i) Borrower has assigned its payment rights to Bank and the assignment has been acknowledged under the Federal Assignment of Claims Act of 1940, as amended, and (ii) Bank approves in writing, on a case by case basis in its sole and
absolute discretion; 
 (i) Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale
guaranteed”, “sale or return”, “sale on approval”, or other terms if Account Debtor’s payment may be conditional; 

(j) Accounts owing from an Account Debtor where goods or services have not yet been rendered to the Account Debtor (sometimes called memo
billings or pre-billings); 
 (k) Accounts subject to contractual arrangements between Borrower and an Account Debtor where payments shall
be scheduled or due according to completion or fulfillment requirements where the Account Debtor has a right of offset for damages suffered as a result of Borrower’s failure to perform in accordance with the contract (sometimes called contracts
accounts receivable, progress billings, milestone billings, or fulfillment contracts); 
 (l) Accounts owing from an Account Debtor the
amount of which may be subject to withholding based on the Account Debtor’s satisfaction of Borrower’s complete performance (but only to the extent of the amount withheld; sometimes called retainage billings); 

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

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

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

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

  
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 (q) Accounts for which Borrower has permitted Account Debtor’s payment to extend beyond 90
days; 
 (r) Accounts arising from chargebacks, debit memos, or other payment deductions taken by an Account Debtor; 

(s) Accounts arising from product returns and/or exchanges (sometimes called “warranty” or “RMA” accounts); 

(t) Accounts in which the Account Debtor disputes liability or makes any claim (but only up to the disputed or claimed amount), or if the
Account Debtor is subject to an Insolvency Proceeding, or becomes insolvent, or goes out of business; 
 (u) Accounts owing from an Account
Debtor with respect to which Borrower has received Deferred Revenue (but only to the extent of such Deferred Revenue); 
 (v) Accounts owing
from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five percent (25%) of all Accounts, for the amounts that exceed that percentage (except for Specified Accounts), unless Bank approves in writing on
a case by case basis in its sole and absolute discretion; and 
 (w) Accounts for which Bank in its good faith business judgment determines
collection to be doubtful, including, without limitation, accounts represented by “refreshed” or “recycled” invoices. 

“Eligible Foreign Accounts” are Accounts which are otherwise Eligible Accounts but for the fact that the Account Debtor does
not have its principal place of business in the United States and that Bank approves in writing on a case by case basis in its sole and absolute discretion. As used herein, Eligible Foreign Accounts shall include the Specified Accounts 

“Eligible Purchase Orders” are binding, non-contingent and non-cancelable purchase orders issued within the previous ninety
(90) days, for the delivery of goods by Borrower or the provision of services by Borrower, and which, but for the fact that an invoice has not been sent, are otherwise “Eligible Accounts.” Upon the issuance of an invoice in respect of
such a purchase order, such applicable purchase order shall not be deemed to be an “Eligible Purchase Order”. 

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

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

“Event of Default” is defined in Section 8. 

“Exchange Act” is the Securities Exchange Act of 1934, as amended. 

  
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 “First Milestone Event” is receipt by Bank of evidence, satisfactory to Bank in
its sole and absolute discretion, that Borrower has entered into a binding contract with Xtera to fulfill an order for one hundred (100) units, pursuant to which Borrower has received commitment fees in an amount of at least Eight Hundred
Thousand Dollars ($800,000). 
 “Foreign Currency” means lawful money of a country other than the United States. 

“Funding Date” is any date on which a Credit Extension is made to or for the account of Borrower which shall be a Business
Day. 
 “FX Business Day” is any day when (a) Bank’s Foreign Exchange Department is conducting its normal
business and (b) the Foreign Currency being purchased or sold by Borrower is available to Bank from the entity from which Bank shall buy or sell such Foreign Currency. 

“FX Forward Contract” is defined in Section 2.1.3. 

“FX Reduction Amount” is defined in Section 2.1.3. 

“FX Reserve” is defined in Section 2.1.3. 

“GAAP” is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other Person as may be approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the date of determination. 
 “General Intangibles”
is all “general intangibles” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds,
security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including
without limitation key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind. 

“Good Faith Deposit” is defined in Section 2.4(c). 

“Governmental Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate,
accreditation, registration, filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority. 

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

  
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 “Growth Capital Advance” or “Growth Capital Advances” is
defined in Section 2.15(a) hereof. 
 “Growth Capital Advance Amount” is an amount not to exceed Three
Million Dollars ($3,000,000) in the aggregate, available as follows: 
 (i) from the Effective Date through the Draw Period, One
Million Dollars ($1,000,000), in the aggregate; 
 (ii) upon the occurrence of the First Milestone Event through the Draw Period, Two
Million Dollars ($2,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower); and 

(iii) upon the occurrence of the Second Milestone Event (but regardless of whether the First Milestone Event has occurred) through the Draw
Period, Three Million Dollars ($3,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower). 

“Growth Capital Line Commitment Fee” is defined in Section 2.4(b). 

“Growth Capital Maturity Date” is March 1, 2015. 

“Indebtedness” is (a) indebtedness for borrowed money or the deferred price of property or services, such as
reimbursement and other obligations for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations, and (d) Contingent Obligations. 

“Indemnified Person” is defined in Section 12.2. 

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

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

(a) its Copyrights, Trademarks and Patents; 

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

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

  
 - 32 - 

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

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

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

“Investment” is any beneficial ownership interest in any Person (including stock, partnership interest or other
securities), and any loan, advance or capital contribution to any Person. 
 “Letter of Credit” means a
standby letter of credit issued by Bank or another institution based upon an application, guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2. 

“Letter of Credit Application” is defined in Section 2.1.2(b). 

“Letter of Credit Reserve” has the meaning set forth in Section 2.1.2(e). 

“Lien” is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind,
whether voluntarily incurred or arising by operation of law or otherwise against any property. 
 “Loan
Documents” are, collectively, this Agreement, the Warrant, the Perfection Certificate, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in
connection with this Agreement, all as amended, restated, or otherwise modified. 
 “MassDev Note” is defined
in the definition of “Permitted Indebtedness” hereof. 
 “MassDev Security Agreement” is defined in
the definition of “Permitted Indebtedness” hereof. 
 “Material Adverse Change” is (a) a material
impairment in the perfection or priority of Bank’s Lien in the Collateral or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise) of Borrower; or (c) a
material impairment of the prospect of repayment of any portion of the Obligations. In determining whether a “Material Adverse Change” has occurred under clause (b) or (c) above, Bank’s primary, though not sole,
consideration will be whether Borrower has or will have sufficient cash resources to repay the Obligations as and when due. Bank recognizes that, as a pre-profit company, Borrower’s cash resources will decline over time, and Borrower will
periodically 

  
 - 33 - 

 
require additional infusions of equity capital. The clear intention of Borrower’s investors to continue to fund Borrower in the amounts and timeframe necessary, in Bank’s good faith
judgment, to enable Borrower to satisfy the Obligations as they become due and payable is the most significant criterion Bank shall consider in making any such determination. 

“Maturity Date” means either the Revolving Line Maturity Date or the Growth Capital Maturity Date, as applicable.

 “Monthly Financial Statements” is defined in Section 6.2(c). 

“Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without limitation, all obligations relating to letters of credit (including reimbursement obligations for
drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to
perform Borrower’s duties under the Loan Documents (other than the Warrant). 
 “Operating Documents”
are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a
corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar
agreement), each of the foregoing with all current amendments or modifications thereto. 
 “Patents” means
all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues, extensions and continuations-in-part of the same. 

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

“Payment Date” is the first Business Day of each month. 

“Perfection Certificate” is defined in Section 5.1. 

“Permitted Indebtedness” is: 

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

(b) Indebtedness existing on the Effective Date and shown on the Perfection Certificate; 

(c) Subordinated Debt; 

  
 - 34 - 

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

(e) Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business; 

(f) Indebtedness secured by Liens permitted under clauses (a) and (c) of the definition of “Permitted Liens” hereunder;

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

(h) Indebtedness in favor of Massachusetts Development Finance Agency pursuant to that certain Security Agreement between Borrower and
Massachusetts Development Finance Agency dated as of February 25, 2011 (the “MassDev Security Agreement”) and that certain Promissory Note between Borrower and Massachusetts Development Finance Agency dated as of
February 25, 2011 (the “MassDev Note”), up to the maximum principal amount of Three Million Dollars ($3,000,000.00). 

“Permitted Investments” are: 

(a) Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the Perfection Certificate; 

(b) (i) Investments consisting of Cash Equivalents, and (ii) any Investments permitted by Borrower’s investment policy, as amended
from time to time, provided that such investment policy (and any such amendment thereto) has been approved in writing by Bank; 
 (c)
Investments by Borrower in its Danish Subsidiary not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00) in the aggregate in any fiscal year; 

(d) (i) marketable direct obligations issued or unconditionally guaranteed by the United States or America or any agency or any State thereof
maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one (1) year from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either Standard
and Poor’s Corporation or Moody’s Investors Service, (iii) certificates of deposit maturing no more than one (1) year from the date of the investment therein, and (iv) money market accounts; 

(e) Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary
course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of
Directors; 

  
 - 35 - 

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

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

(h) Investments consisting of deposit accounts in which Bank has a perfected security interest. 

“Permitted Liens” are: 

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

 (b) Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being
contested in good faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted
thereunder; 
 (c) purchase money Liens or capital leases (i) on Equipment acquired or held by Borrower incurred for financing the
acquisition of the Equipment securing no more than Fifty Thousand Dollars ($50,000) in the aggregate amount outstanding, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of
the Equipment; 
 (d) Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in
(a) through (c), but any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount of the indebtedness may not increase; 

(e) non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business.; and 

(f) Liens in favor of Massachusetts Development Finance Agency pursuant to the MassDev Security Agreement and the MassDev Note. 

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

“Prime Rate” is Bank’s most recently announced “prime rate,” even if it is not Bank’s lowest
rate. 

  
 - 36 - 

 “Registered Organization” is any “registered organization” as
defined in the Code with such additions to such term as may hereafter be made. 
 “Requirement of Law” is as
to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or
binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Responsible Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of
Borrower. 
 “Restricted License” is any material license or other agreement with respect to which Borrower
is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property, or (b) for which a default under or termination of could
interfere with the Bank’s right to sell any Collateral. 
 “Revolving Line” is an Advance or Advances in
an amount equal to Five Million Dollars ($5,000,000.00). 
 “Revolving Line Commitment Fee” is defined in
Section 2.4(a). 
 “Revolving Line Maturity Date” is June 8, 2012. 

“SEC” shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental
Authority. 
 “Second Milestone Event” means confirmation by Bank that Borrower has shipped pre-production
units which shall be production quality and have passed a formal release process to include one thousand (1,000) hours of product testing. 

“Securities Account” is any “securities account” as defined in the Code with such additions to such term as
may hereafter be made. 
 “Settlement Date” is defined in Section 2.1.3. 

“Specified Accounts” are Accounts for which the Account Debtor is Tellabs, ZTE, Xtera, Juniper, and Adva. 

“Subordinated Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter
indebtedness to Bank (pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Bank entered into between Bank and the other creditor), on terms acceptable to Bank. 

“Subsidiary” is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of
stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers
of 

  
 - 37 - 

 
such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by
such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower. 

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

“Transfer” is defined in Section 7.1. 

“Warrant” is that certain Warrant to Purchase Stock dated as of the Effective Date executed by Borrower in favor of
Bank. 
 [Signature page follows.] 

  
 - 38 - 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as a
sealed instrument under the laws of the Commonwealth of Massachusetts as of the Effective Date. 
  

			
	BORROWER:
	
	ACACIA COMMUNICATIONS, INC.
		
	By	 	 /s/ Raj Shanmugaraj

	Name:	 	Raj Shanmugaraj
	Title:	 	President and Chief Executive Officer
	
	BANK:
	
	SILICON VALLEY BANK
		
	By	 	 /s/ Bradley Holt

	Name:	 	 Bradley Holt

	Title:	 	 Relationship Manager

  
 1 

 EXHIBIT A - COLLATERAL DESCRIPTION 

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

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles (except as provided below), commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and 
 all other investment property,
supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions
for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing. 

Notwithstanding the foregoing, the Collateral does not include any Intellectual Property; provided, however, the Collateral shall include all
Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and
such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security
interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property. 
 Pursuant to
Section 7.5 of the Agreement, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s prior written consent. 

  
 1 

 EXHIBIT B - LOAN PAYMENT/ADVANCE REQUEST FORM 

DEADLINE FOR SAME DAY PROCESSING IS
NOON EASTERN TIME 
  

			
	Fax To:	  	Date:                     

  

			
	LOAN PAYMENT:	  	
		
		  	ACACIA COMMUNICATIONS, INC.
		
	From Account
#                                         
                                   	  	    To Account
#                                         
                               
	                                      
        (Deposit Account #)	  	                                      
            (Loan Account #)
		
	Principal
$                                         
                                         
   	  	    and/or Interest
$                                         
                           
		
	Authorized
Signature:                                       
                            	  	    Phone
Number:                                        
                             
	Print
Name/Title:                                       
                                   	  	

  

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

	Authorized
Signature:                                       
                         	  	    Phone
Number:                                        
                            
	 Print
Name/Title:                                       
                                

 
	  	

  

			
	OUTGOING WIRE REQUEST:
	
	 Complete only if all or a portion of funds from the loan advance above is to be wired.

 
 Deadline for same day processing is noon, Eastern Time

		
	Beneficiary
Name:                                        
                            	  	    Amount of Wire:
$                                         
                       
	Beneficiary
Name:                                        
                            	  	    Account
Number:                                        
                          
	City and
State:                                        
                                   	  	
		
	Beneficiary Bank Transit (ABA)
#:                                        
  	  	    Beneficiary Bank Code (Swift, Sort, Chip, etc.):                 
		  	 (For International Wire Only)

		
	Intermediary
Bank:                                        
                            	  	    Transit (ABA)
#:                                        
                           
	For Further Credit to:                             
                                         
                                         
                                         
                             
	
	Special Instructions:                              
                                         
                                         
                                         
                              
	  
 By signing below, I (we) acknowledge and agree that my
(our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreement(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me
(us).
  

	Authorized
Signature:                                       
                         	  	    2nd Signature (if
required):                                       
           
	Print
Name/Title:                                       
                                	  	    Print
Name/Title:                                       
                           
	Telephone
#:                                        
                                      	  	    Telephone
#:                                        
                                 

  
 1 

 EXHIBIT C - BORROWING BASE CERTIFICATE 

Borrower: Acacia Communications, Inc. 
 Lender: Silicon Valley
Bank 
 Commitment Amount: $5,000,000.00 
  

							
	 ACCOUNTS RECEIVABLE
	   

	 1.
	  	Accounts Receivable (invoiced) Book Value as of                     	  	$	            	  
	 2.
	  	Additions (please explain on next page)	  	$	 	  
	 3.
	  	Less: Intercompany / Employee / Non-Trade Accounts	  	$	 	  
	 4.
	  	NET TRADE ACCOUNTS RECEIVABLE	  	$	 	  
		
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  			
	 5.
	  	90 Days Past Invoice Date	  	$	 	  
	 6.
	  	Credit Balances over 90 Days	  	$	 	  
	 7.
	  	Balance of 50% over 90 Day Accounts (cross-age or current affected)	  	$	 	  
	 8.
	  	Foreign Account Debtor Accounts (except for Eligible Foreign Accounts)	  	$	 	  
	 9.
	  	Foreign Invoiced and/or Collected Accounts	  	$	 	  
	 10.
	  	Contra/Customer Deposit Accounts	  	$	 	  
	 11.
	  	U.S. Government Accounts	  	$	 	  
	 12.
	  	Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts	  	$	 	  
	 13.
	  	Accounts with Memo or Pre-Billings	  	$	 	  
	 14.
	  	Contract Accounts; Accounts with Progress/Milestone Billings	  	$	 	  
	 15.
	  	Accounts for Retainage Billings	  	$	 	  
	 16.
	  	Trust / Bonded Accounts	  	$	 	  
	 17.
	  	Bill and Hold Accounts	  	$	 	  
	 18.
	  	Unbilled Accounts	  	$	 	  
	 19.
	  	Non-Trade Accounts (if not already deducted above)	  	$	 	  
	 20.
	  	Accounts with Extended Term Invoices (Net 90+)	  	$	 	  
	 21.
	  	Chargebacks Accounts / Debit Memos	  	$	 	  
	 22.
	  	Product Returns/Exchanges	  	$	 	  
	 23.
	  	Disputed Accounts; Insolvent Account Debtor Accounts	  	$	 	  
	 24.
	  	Deferred Revenue, if applicable/Other (please explain on next page)	  	$	 	  
	 25.
	  	Concentration Limits 25% (except for Specified Accounts)	  	$	 	  
	 26.
	  	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	  	$	 	  
	 27.
	  	Eligible Accounts (#4 minus #26)	  	$	 	  
	 28.
	  	ELIGIBLE AMOUNT OF ACCOUNTS (80% of #27)	  	$	 	  
	 ELIGIBLE PURCHASE ORDERS
	  			
	 29.
	  	Eligible Purchase Orders	  	$	 	  
	 30.
	  	ELIGIBLE AMOUNT OF PURCHASE ORDERS (the lesser of (i) $1,000,000 and (ii) 50% of #29)	  	$	 	  
	 BALANCES
	  			
	 31.
	  	Maximum Loan Amount	  	$	 	  
	 32.
	  	Total Funds Available (Lesser of #31 or (#28 plus #30))	  	$	 	  
	 33.
	  	Present balance owing on Line of Credit	  	$	 	  
	 34.
	  	Outstanding under Sublimits	  	$	 	  
	 35.
	  	RESERVE POSITION (#32 minus #33 and #34)	  	$	 	  

 [Continued on following page.] 

  
 1 

 Explanatory comments from previous page: 

 

	
	  

	
	  

	
	  

	
	  

 The undersigned represents and warrants that this is true, complete and correct, and that the information in this Borrowing
Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 

 

			
	COMMENTS:
		
	By:	 	  

		 	Authorized Signer
		
	Date:	 	  

					
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
	
	
	Date	 	  

	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

	Compliance Status:	 	Yes                No    

 
 

  
 2 

 EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	ACACIA COMMUNICATIONS, INC.	  	

 The undersigned authorized officer of Acacia Communications, Inc. (“Borrower”) certifies that under
the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in
complete compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events of
Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits
of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents supporting the
certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may
be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No    
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes    No    
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No    
	Borrowing Base Certificate A/R & A/P Agings	  	Monthly within 30 days	  	Yes    No    
	Board-approved Projections	  	First Business Day of month following Board approval; at least annually	  	Yes    No    

  
 1 

 The following are the exceptions with respect to the certification above. (If no exceptions
exist, state “No exceptions to note.”) 
  

	
	  

	
	  

	
	  

 

			
	Acacia Communications, Inc.
		
	By:	 	  

	Name:	 	  

	Date:	 	  

 

					
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
		
	Date	 	  

		
	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

		
	Compliance Status:	 	Yes            No    

 
 

  
 2 

 FIRST LOAN MODIFICATION AGREEMENT 

This First Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of March 13, 2012, by and
between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts
02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation (“Borrower”). 
 1. DESCRIPTION OF EXISTING
INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a
certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any
other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan
Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the text appearing in each of (i) Section 2.1.2 (entitled “Letters of Credit Sublimit”), (ii) Section 2.1.3 (entitled “Foreign Exchange
Sublimit”), and (iii) Section 2.1.4 (entitled “Cash Management Services Sublimit”) in their entirety and inserting in lieu of each of the foregoing “Intentionally Omitted”. 

 

	 	2	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.1.5(a) (Growth Capital Advances) thereof: 

“Subject to the terms and conditions of this Agreement, during the Draw Period, Bank agrees to make up to three (3) advances (each a
“Growth Capital Advance” and collectively the “Growth Capital Advances”) available to Borrower in an amount not to exceed the Growth Capital Advance Amount.” 

and inserting in lieu thereof the following: 

“Subject to the terms and conditions of this Agreement, during the Draw Period, Bank agrees to make up to two (2) advances (each a
“Growth Capital Advance” and collectively the “Growth Capital Advances”) available to Borrower in an amount not to exceed the Growth Capital Advance Amount.” 

	 	3	The Loan Agreement shall be amended by deleting the text appearing in Section 2.1.5(c) (Repayment) thereof: 

“Commencing on April 2, 2012 and continuing on each Payment Date thereafter, Borrower shall repay each Growth Capital Advance in
(i) thirty-six (36) equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.3(a)(ii).” 

and inserting in lieu thereof the following: 

“Commencing on July 2, 2012 and continuing on each Payment Date thereafter, Borrower shall repay each Growth Capital Advance in
(i) thirty-six (36) equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.3(a)(ii).” 

 

	 	4	The Loan Agreement shall be amended by deleting the following provision appearing as Section 2.2 (Overadvances) thereof: 

“2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal amount of any Advances (including any amounts
used for Cash Management Services), plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit and any Letter of Credit Reserve), plus (c) the FX Reduction Amount exceeds the lesser of
either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess.” 
 and inserting in lieu
thereof the following: 
 “2.2 Overadvances. If, at any time, the outstanding principal amount of any Advances exceeds the
lesser of either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such excess.” 
  

	 	5	The Loan Agreement shall be amended by deleting the following appearing as Section 2.3(a)(i) (Interest Rate) thereof: 

“(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at
a floating per annum rate equal to one and one half of one percentage point (1.50%) above the Prime Rate, which interest shall be payable monthly in accordance with Section 2.3(f) below.” 

 and inserting in lieu thereof the following: 

“(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at
a floating per annum rate equal to (a) prior to the 2012 Effective Date, one and one half of one percentage point (1.50%) above the Prime Rate, and (b) on and after the 2012 Effective Date, two percentage points (2.0%) above the
Prime Rate, which interest, in each case, shall be payable monthly in accordance with Section 2.3(f) below.” 
  

	 	6	The Loan Agreement shall be amended by deleting the following provision appearing as Section 2.4(d) (Letter of Credit Fee) thereof: 

“(d) Letter of Credit Fee. Bank’s customary fees and expenses for the issuance or renewal of Letters of Credit, upon the
issuance of such Letter of Credit, each anniversary of the issuance during the term of such Letter of Credit, and upon the renewal of such Letter of Credit by Bank; and” 

and inserting in lieu thereof the following: 

“(d) Intentionally Omitted.; and” 
  

	 	7	The Loan Agreement shall be amended by deleting the following provision appearing as Section 3.4(a) (Procedures for Borrowing) thereof: 

“(a) Advances. Subject to the prior satisfaction of all other applicable conditions to the making of an Advance set forth in this
Agreement, to obtain an Advance (other than Advances under Sections 2.1.2 or 2.1.4), Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or telephone by 12:00 p.m. Eastern time on the Funding Date of the
Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any
telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or
his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due.” 
 and inserting
in lieu thereof the following: 
 “(a) Advances. Subject to the prior satisfaction of all other applicable conditions to the
making of an Advance set forth in this Agreement, to obtain an Advance, Borrower shall notify Bank (which notice shall be irrevocable) by electronic mail, facsimile, or 

 
telephone by 12:00 p.m. Eastern time on the Funding Date of the Advance. Together with any such electronic or facsimile notification, Borrower shall deliver to Bank by electronic mail or
facsimile a completed Payment/Advance Form executed by a Responsible Officer or his or her designee. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Bank shall credit Advances to the
Designated Deposit Account. Bank may make Advances under this Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Advances are necessary to meet Obligations which have become due.”

  

	 	8	The Loan Agreement shall be amended by inserting the following text to appear at the end of Section 4.1 (Grant of Security Interest) thereof: 

“Borrower acknowledges that it previously has entered, and/or may in the future enter, into Bank Services Agreements with Bank.
Regardless of the terms of any Bank Services Agreement, Borrower agrees that any amounts Borrower owes Bank thereunder shall be deemed to be Obligations hereunder and that it is the intent of Borrower and Bank to have all such Obligations secured by
the first priority perfected security interest in the Collateral granted herein (subject only to Permitted Liens that expressly have superior priority to Bank’s Lien in this Agreement). In the event (a) all Obligations (other than inchoate
indemnity obligations), except for Bank Services, are satisfied in full, and (b) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good
faith business judgment for Bank Services, if any. In the event such Bank Services consist of outstanding Letters of Credit, then on such date Borrower shall provide to Bank cash collateral in an amount equal to (i) one hundred five percent
(105.0%) of the face amount of all such Letters of Credit denominated in Dollars and (ii) one hundred ten percent (110.0%) of the Dollar Equivalent of the face amount of all such Letters of Credit denominated in a Foreign Currency
plus, in each case, all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating to such Letters of Credit.” 

 

	 	9	The Loan Agreement shall be amended by inserting the following provision to appear as Section 6.10 (Access to Collateral; Books and Records) thereof: 

“6.10 Access to Collateral; Books and Records. Allow Bank, or its agents, to inspect the Collateral and audit and copy

 
Borrower’s Books. Such inspections or audits shall be conducted no more often than once every twelve (12) months unless an Event of Default has occurred and is continuing. The foregoing
inspections and audits shall be at Borrower’s expense. Borrower acknowledges, confirms, and agrees that the Initial Audit shall occur within ninety (90) days of the 2012 Effective Date.” 

 

	 	10	The Loan Agreement shall be amended by inserting the following text at the end of Section 12.8 (Survival) thereof: 

“Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in
Section 4.1 shall survive until the termination of all Bank Services Agreements.” 
  

	 	11	The Loan Agreement shall be amended by deleting the following definitions appearing in 13.1 thereof: 

““Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the
Borrowing Base minus (b) the Dollar Equivalent amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) plus an amount equal to the Letter of Credit Reserve, minus (c) the FX Reduction Amount, minus
(d) any amounts used for Cash Management Services, and minus (e) the outstanding principal balance of any Advances.” 

““Borrowing Base” is (a) eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s
most recent Borrowing Base Certificate plus (b) the lesser of (i) One Million Dollars ($1,000,000) and (ii) fifty percent (50%) of Eligible Purchase Orders, provided, however, that Bank may decrease the foregoing percentages in
its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral.” 

““Credit Extension” is any Advance, Growth Capital Advance, Letter of Credit, FX Forward Contract, amount utilized for
Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit.” 
 ““Draw
Period” is the period of time from the Effective Date through the earlier to occur of (a) March 31, 2012 or (b) an Event of Default.” 

““FX Forward Contract” is defined in Section 2.1.3.” 

 ““Growth Capital Advance Amount” is an amount not to exceed Three Million
Dollars ($3,000,000) in the aggregate, available as follows: 
 (i) from the Effective Date through the Draw Period, One Million Dollars
($1,000,000), in the aggregate; 
 (ii) upon the occurrence of the First Milestone Event through the Draw Period, Two Million Dollars
($2,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower); and 

(iii) upon the occurrence of the Second Milestone Event (but regardless of whether the First Milestone Event has occurred) through the Draw
Period, Three Million Dollars ($3,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower).” 

“Growth Capital Maturity Date” is March 1, 2015.”” 

““Letter of Credit” means a standby letter of credit issued by Bank or another institution based upon an application,
guarantee, indemnity or similar agreement on the part of Bank as set forth in Section 2.1.2.” 
 ““Loan
Documents” are, collectively, this Agreement, the Warrant, the Perfection Certificate, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank in
connection with this Agreement, all as amended, restated, or otherwise modified.” 
 ““Obligations” are
Borrower’s obligations to pay when due any debts, principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without
limitation, all obligations relating to letters of credit (including reimbursement obligations for drawn and undrawn letters of credit), cash management services, and foreign exchange contracts, if any, and including interest accruing after
Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant).” 

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

 and inserting in lieu thereof the following: 

““Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the
Borrowing Base minus (b) the outstanding principal balance of any Advances.” 
 ““Borrowing Base” is
(a) eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s most recent Borrowing Base Certificate plus (b) the lesser of (i) Two Million Dollars ($2,000,000) and (ii) fifty percent
(50.0%) of Eligible Purchase Orders and fifty percent (50.0%) of Eligible Inventory, provided, however, that Bank may decrease the foregoing amounts in its good faith business judgment based on events, conditions, contingencies, or risks
which, as determined by Bank, may adversely affect Collateral.” 
 ““Credit Extension” is any Advance, Growth
Capital Advance, or any other extension of credit by Bank for Borrower’s benefit.” 
 ““Draw Period” is the
period of time from the Effective Date through the earlier to occur of (a) June 30, 2012 or (b) an Event of Default.” 

““FX Forward Contract” is any foreign exchange contract by and between Borrower and Bank under which Borrower commits to
purchase from or sell to Bank a specific amount of Foreign Currency on a specified date.” 
 ““Growth Capital Advance
Amount” is an amount not to exceed Two Million Dollars ($2,000,000) in the aggregate, available as follows: 
 (i) from the
Effective Date throughout the Draw Period, One Million Dollars ($1,000,000), in the aggregate; and 
 (ii) upon the occurrence of the Second
Milestone Event throughout the Draw Period, Two Million Dollars ($2,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower).” 

““Growth Capital Maturity Date” is June 1, 2015.” 

““Letter of Credit” is a standby or commercial letter of credit issued by Bank upon request of Borrower based upon an
application, guarantee, indemnity or similar agreement.” 
 ““Loan Documents” are, collectively, this Agreement,
the Warrant, the Perfection Certificate, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed by Borrower, and any other present or future agreement between Borrower and/or for the benefit of Bank, all
as amended, restated, or otherwise modified.” 

 ““Obligations” are Borrower’s obligations to pay when due any debts,
principal, interest, Bank Expenses and other amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without limitation, any interest accruing after Insolvency
Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant).” 

““Revolving Line” is an Advance or Advances in an amount equal to Six Million Dollars ($6,000,000.00).” 

 

	 	12	The Loan Agreement shall be amended by inserting the following new definitions to appear alphabetically in Section 13.1 thereof: 

““2012 Effective Date” is March 13, 2012.” 

““Bank Services” are any products, credit services, and/or financial accommodations previously, now, or hereafter
provided to Borrower or any of its Subsidiaries by Bank or any Bank Affiliate, including, without limitation, any letters of credit, cash management services (including, without limitation, merchant services, direct deposit of payroll, business
credit cards, and check cashing services), interest rate swap arrangements, and foreign exchange services as any such products or services may be identified in Bank’s various agreements related thereto (each, a “Bank Services
Agreement”).” 
 ““Bank Services Agreement” is defined in the definition entitled “Bank
Services” appearing alphabetically in this Section 13.1.” 
 ““Eligible Inventory” means, at any time, the
aggregate of Borrower’s Inventory that (a) consists of finished goods and raw materials located in the United States in good, new, and salable condition, which are not comprised of slow moving, obsolete, work in progress or demo inventory;
(b) meets all applicable governmental standards; (c) has been manufactured in compliance with the Fair Labor Standards Act; (d) is not subject to any Liens, except the first priority Liens granted or in favor of Bank under this
Agreement or any of the other Loan Documents; (e) is located at Borrower’s principal place of business (or any location permitted under Section 5.2 and subject to a landlord’s consent or bailee waiver, as applicable, in form and
substance acceptable to Bank, in its sole discretion); (f) is destined for locations in the United States of purchasers organized in the United States; and (g) is otherwise acceptable to Bank in all respects.” 

 ““Initial Audit” is Bank’s inspection of Borrower’s Accounts,
the Collateral, and Borrower’s Books with results satisfactory to Bank in its sole and absolute discretion.” 
  

	 	13	The Borrowing Base Certificate appearing as Exhibit D to the Loan Agreement is hereby replaced with the Borrowing Base Certificate attached as Schedule 1 hereto. 

4. FEES. Borrower shall pay to Bank a modification fee equal to Three Thousand Dollars ($3,000), which fee shall be due on the date hereof and shall be
deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of June 9, 2011 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate has not changed, as of the
date hereof. 
 6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral
granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 8. NO DEFENSES OF BORROWER.
Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 

 10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been
executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank] 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmugaraj
	 		 	By:	 	 /s/ Dan Allred

					
	Name:	 	 Raj Shanmugaraj
	 		 	Name:	 	 Dan Allred

					
	Title:	 	 President and CEO
	 		 	Title:	 	 Sr. Relationship Manager

 Schedule 1 

EXHIBIT C - BORROWING BASE CERTIFICATE 

Borrower: Acacia Communications, Inc. 
 Lender: Silicon Valley
Bank 
 Commitment Amount: $6,000,000.00 
  

							
	ACCOUNTS RECEIVABLE	  
	1.	  	Accounts Receivable (invoiced) Book Value as of                     	  	$	            	  
	2.	  	Additions (please explain on next page)	  	$	 	  
	3.	  	Less: Intercompany / Employee / Non-Trade Accounts	  	$	 	  
	4.	  	NET TRADE ACCOUNTS RECEIVABLE	  	$	 	  
		
	ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)	  			
	5.	  	90 Days Past Invoice Date	  	$	 	  
	6.	  	Credit Balances over 90 Days	  	$	 	  
	7.	  	Balance of 50% over 90 Day Accounts (cross-age or current affected)	  	$	 	  
	8.	  	Foreign Account Debtor Accounts (except for Eligible Foreign Accounts)	  	$	 	  
	9.	  	Foreign Invoiced and/or Collected Accounts	  	$	 	  
	10.	  	Contra/Customer Deposit Accounts	  	$	 	  
	11.	  	U.S. Government Accounts	  	$	 	  
	12.	  	Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts	  	$	 	  
	13.	  	Accounts with Memo or Pre-Billings	  	$	 	  
	14.	  	Contract Accounts; Accounts with Progress/Milestone Billings	  	$	 	  
	15.	  	Accounts for Retainage Billings	  	$	 	  
	16.	  	Trust / Bonded Accounts	  	$	 	  
	17.	  	Bill and Hold Accounts	  	$	 	  
	18.	  	Unbilled Accounts	  	$	 	  
	19.	  	Non-Trade Accounts (if not already deducted above)	  	$	 	  
	20.	  	Accounts with Extended Term Invoices (Net 90+)	  	$	 	  
	21.	  	Chargebacks Accounts / Debit Memos	  	$	 	  
	22.	  	Product Returns/Exchanges	  	$	 	  
	23.	  	Disputed Accounts; Insolvent Account Debtor Accounts	  	$	 	  
	24.	  	Deferred Revenue, if applicable/Other (please explain on next page)	  	$	 	  
	25.	  	Concentration Limits 25% (except for Specified Accounts)	  	$	 	  
	26.	  	TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS	  	$	 	  
	27.	  	Eligible Accounts (#4 minus #26)	  	$	 	  
	28.	  	ELIGIBLE AMOUNT OF ACCOUNTS (80% of #27)	  	$	 	  
	29.	  	ELIGIBLE PURCHASE ORDERS	  	$	 	  
	30.	  	ELIGIBLE INVENTORY	  	$	 	  
	31.	  	 ELIGIBLE AMOUNT OF PURCHASE ORDERS AND INVENTORY (50% OF #29 AND #30, NOT TO EXCEED $2,000,000)
	  	$	 	  
	BALANCES	  			
	32.	  	Maximum Loan Amount	  	$	 	  
	33.	  	Total Funds Available (Lesser of #32 or (#28 plus #31))	  	$	 	  
	34.	  	Present balance owing on Line of Credit	  	$	 	  
	35.	  	RESERVE POSITION (#32 minus #33 and #34)	  	$	 	  

 [Continued on following page.] 

 Explanatory comments from previous page: 

 

	
	  

	
	  

	
	  

	
	  

 The undersigned represents and warrants that this is true, complete and correct, and that the information in this Borrowing
Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 

 

			
	COMMENTS:
		
	By:	 	  

		 	Authorized Signer
	Date:	 	  

 

					
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
		
	Date	 	  

	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

	Compliance Status:	 	Yes            No     

 
 

 SECOND LOAN MODIFICATION AGREEMENT 

This Second Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of June 8, 2012, by and between
SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466
(“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation (“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND
OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and
Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that certain First Loan Modification Agreement dated as of March 13, 2012, between Borrower and Bank (as amended, the “Loan Agreement”).
Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL.
Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all
other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN
TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following definitions appearing in 13.1 thereof: 

““Revolving Line Maturity Date” is June 8, 2012.” 

and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is July 8, 2012.” 

4. FEES. Borrower shall pay to Bank a modification fee equal to One Thousand Dollars ($1,000), which fee shall be due on the date hereof and shall be
deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of June 9, 2011 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate has not changed, as of the
date hereof; provided, however, that the Perfection Certificate shall be deemed updated to reflect Borrower’s lease of real property 

 
located at 1715 Route 35 N, Suite 207 Middletown, NJ 07748, including the maintenance of books, records, equipment and inventory at such location and the transaction of business and qualification
to transact business in the State of New Jersey. 
 6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to
reflect the changes described above. 
 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions
of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank] 

  
 - 2 - 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmugaraj
	 		 	By:	 	 /s/ Glen R. Mello

					
	Name:	 	 Raj Shanmugaraj
	 		 	Name:	 	 Glen R. Mello

					
	Title:	 	 President and CEO
	 		 	Title:	 	 DTL

  
 - 3 - 

 THIRD LOAN MODIFICATION AGREEMENT 

This Third Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of July 10, 2012, but is
effective as of July 8, 2012, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove
Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation (“Borrower”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that certain First Loan
Modification Agreement dated as of March 13, 2012, between Borrower and Bank, and as further amended by that certain Second Loan Modification Agreement dated as of June 8, 2012, between Borrower and Bank (as amended, the “Loan
Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF
COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3.
DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following definition appearing in 13.1 thereof: 

““Revolving Line Maturity Date” is July 8, 2012.” 

and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is August 7, 2012.” 

4. FEES. Borrower shall reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a
certain Perfection Certificate dated as of June 9, 2011 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate has not changed, as of the
date hereof. 

 6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the
changes described above. 
 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all
security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 8.
NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any
offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have
been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank] 

  
 - 2 - 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmugaraj
	 		 	By:	 	 /s/ Dan Allred

					
	Name:	 	 Raj Shanmugaraj
	 		 	Name:	 	 Dan Allred

					
	Title:	 	 President and CEO
	 		 	Title:	 	 Senior Relationship Manager

  
 - 3 - 

 FOURTH LOAN MODIFICATION AGREEMENT 

This Fourth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of September 20, 2012, but is
effective as of August 7, 2012, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove
Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation (“Borrower”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that certain First Loan
Modification Agreement dated as of March 13, 2012, between Borrower and Bank, as amended by that certain Second Loan Modification Agreement dated as of June 8, 2012, between Borrower and Bank, and as further amended by that certain Third
Loan Modification Agreement dated as of July 10, 2012, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.

 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1.	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.1.5(a) (Availability) thereof: 

“Borrower may prepay any Growth Capital Advance at any time without premium or penalty.” 

 

	 	2.	The Loan Agreement shall be amended by deleting the following text appearing in Section 2.1.5(c) (Repayment) thereof: 

“Commencing on July 2, 2012 and continuing on each Payment Date thereafter, Borrower shall repay each Growth Capital Advance in
(i) thirty-six (36) equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.3(a)(ii).” 

 and inserting in lieu thereof the following: 

“Commencing on April 1, 2013 and continuing on each Payment Date thereafter, Borrower shall repay each Growth Capital Advance in
(i) thirty-six (36) equal monthly installments of principal, plus (ii) monthly payments of accrued interest at the rate set forth in Section 2.3(a)(ii).” 

 

	 	3.	The Loan Agreement shall be amended by deleting the following provision appearing as Section 6.2(d) (Monthly Compliance Certificate) thereof: 

“(d) Monthly Compliance Certificate. Within thirty (30) days after the last day of each month and together with the Monthly
Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and such other
information as Bank may reasonably request;” 
 and inserting in lieu thereof the following: 

“(d) Monthly Compliance Certificate. Within thirty (30) days after the last day of each month and together with the Monthly
Financial Statements, a duly completed Compliance Certificate signed by a Responsible Officer, certifying that as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth
calculations showing compliance with the financial covenant set forth in this Agreement and such other information as Bank may reasonably request;” 
  

	 	4.	The Loan Agreement shall be amended by deleting the following text appearing in Section 6.10 (Access to Collateral; Books and Records) thereof: 

“Borrower acknowledges, confirms, and agrees that the Initial Audit shall occur within ninety (90) days of the 2012 Effective
Date.” 
 and inserting in lieu thereof the following: 

“Borrower acknowledges, confirms, and agrees that the Initial Audit shall occur within ninety (90) days of the Fourth Amendment
Effective Date.” 
  

	 	5.	The Loan Agreement shall be amended by inserting the following new provision, appearing as Section 6.11 (Financial Covenant) thereof: 

“6.11 Financial Covenant. Maintain at all times, once a Growth Capital Advance is requested, to be tested as of the last day of
each month, calculated on a consolidated basis with respect to Borrower and its Subsidiaries, a Tangible Net Worth of at least Seven Million Five Hundred Thousand Dollars ($7,500,000.00).” 

  
 2 

	 	6.	The Loan Agreement shall be amended by deleting the following provision appearing as Section 8.2(a) (Covenant Default) thereof: 

“(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, or 6.7(b) or violates any covenant in
Section 7; or” 
 and inserting in lieu thereof the following: 

“(a) Borrower fails or neglects to perform any obligation in Sections 6.2, 6.4, 6.5, 6.6, 6.7(b), or 6.11, or violates any covenant in
Section 7; or” 
  

	 	7.	The Loan Agreement shall be amended by inserting the following text to appear as subsection (d) of the definition entitled “Material Adverse Change” appearing in Section 13.1 thereof:

 “or (d) Bank determines, based upon information available to it and in its reasonable judgment, that there is a
reasonable likelihood that Borrower shall fail to comply with one or more of the financial covenants in Section 6 during the next succeeding financial reporting period.” 

 

	 	8.	The Loan Agreement shall be amended by deleting the following provision appearing as subsection (v) of the definition entitled “Eligible Accounts” appearing in Section 13.1 thereof:

 “(v) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed
twenty-five percent (25%) of all Accounts, for the amounts that exceed that percentage (except for Specified Accounts), unless Bank approves in writing on a case by case basis in its sole and absolute discretion; and” 

and inserting in lieu thereof the following: 

“(v) Accounts owing from an Account Debtor, including Affiliates, whose total obligations to Borrower exceed twenty-five percent
(25%) of all Accounts, for the amounts that exceed that percentage (except for Specified Accounts, for which such percentage is fifty percent (50%)), unless Bank approves in writing on a case by case basis in its sole and absolute discretion;
and” 

  
 3 

	 	9.	The Loan Agreement shall be amended by deleting the following definitions appearing in 13.1 thereof: 

““Borrowing Base” is (a) eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s
most recent Borrowing Base Certificate plus (b) the lesser of (i) Two Million Dollars ($2,000,000) and (ii) fifty percent (50.0%) of Eligible Purchase Orders and fifty percent (50.0%) of Eligible Inventory, provided,
however, that Bank may decrease the foregoing amounts in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral.” 

““Draw Period” is the period of time from the Effective Date through the earlier to occur of (a) June 30, 2012
or (b) an Event of Default.” 
 ““Growth Capital Advance Amount” is an amount not to exceed Two Million
Dollars ($2,000,000) in the aggregate, available as follows: 
 (i) from the Effective Date throughout the Draw Period, One Million Dollars
($1,000,000), in the aggregate; and 
 (ii) upon the occurrence of the Second Milestone Event throughout the Draw Period, Two Million
Dollars ($2,000,000) in the aggregate (inclusive of the original principal amount of any Growth Capital Advances made by Bank to Borrower).” 

““Growth Capital Maturity Date” is June 1, 2015.” 

““Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, Bank Expenses and other
amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant).” 

““Revolving Line” is an Advance or Advances in an amount equal to Six Million Dollars ($6,000,000.00).” 

““Revolving Line Maturity Date” is August 7, 2012.” 

““Warrant” is that certain Warrant to Purchase Stock dated as of the Effective Date executed by Borrower in favor of
Bank.” 

  
 4 

 and inserting in lieu thereof the following: 

““Borrowing Base” is (a) eighty percent (80%) of Eligible Accounts, as determined by Bank from Borrower’s
most recent Borrowing Base Certificate plus (b) the lesser of (i) Two Million Dollars ($2,000,000.00) and (ii) fifty percent (50.0%) of Eligible Purchase Orders and fifty percent (50.0%) of Eligible Inventory, in each case
as determined by Bank from Borrower’s most recent Borrowing Base Certificate plus (c) only for times that Borrower has achieved the AQR Threshold, the lesser of (i) One Million Dollars ($1,000,000.00) and (ii) fifty percent
(50.0%) of Eligible Purchase Orders and fifty percent (50.0%) of Eligible Inventory, in each case as determined by Bank from Borrower’s most recent Borrowing Base Certificate, provided, however, that Bank may decrease the foregoing
amounts in its good faith business judgment based on events, conditions, contingencies, or risks which, as determined by Bank, may adversely affect Collateral.” 

““Draw Period” is the period of time from the Effective Date through the earlier to occur of (a) March 31,
2013 or (b) an Event of Default.” 
 ““Growth Capital Advance Amount” is an amount not to exceed Two Million
Dollars ($2,000,000.00) in the aggregate.” 
 ““Growth Capital Maturity Date” is March 1, 2016.” 

““Obligations” are Borrower’s obligations to pay when due any debts, principal, interest, Bank Expenses, and other
amounts Borrower owes Bank now or later, whether under this Agreement, the Loan Documents (other than the Warrant), or otherwise, including, without limitation, any interest accruing after Insolvency Proceedings begin and debts, liabilities, or
obligations of Borrower assigned to Bank, and to perform Borrower’s duties under the Loan Documents (other than the Warrant).” 

““Revolving Line” is an Advance or Advances in an amount equal to Eight Million Dollars ($8,000,000.00).” 

““Revolving Line Maturity Date” is August 6, 2013.” 

““Warrant” is that (a) certain Warrant to Purchase Stock dated as of the Effective Date executed by Borrower in
favor of Bank, and (b) certain Warrant to Purchase Stock dated as of the Fourth Amendment Effective Date executed by Borrower in favor of Bank.” 

  
 5 

	 	10.	The Loan Agreement shall be amended by inserting the following new definitions to appear alphabetically in Section 13.1 thereof: 

““Adjusted Quick Ratio” is the ratio of (a) Quick Assets to (b) Current Liabilities minus the current portion
of Deferred Revenue.” 
 ““AQR Threshold” means that Borrower has achieved as of the last day of the immediately
preceding month, calculated on a consolidated basis with respect to Borrower and its Subsidiaries, an Adjusted Quick Ratio of at least 1.25 to 1.00.” 

““Current Liabilities” are all obligations and liabilities of Borrower to Bank, plus, without duplication, the aggregate
amount of Borrower’s Total Liabilities that mature within one (1) year.” 
 ““Fourth Amendment Effective
Date” is September 20, 2012.” 
 ““Quick Assets” is, on any date, Borrower’s consolidated,
unrestricted cash maintained with Bank plus net billed accounts receivable, determined according to GAAP.” 
 ““Tangible
Net Worth” is, on any date, stockholder equity of Borrower, minus intangible assets, plus (c) Subordinated Debt.” 
  

	 	11.	The Borrowing Base Certificate appearing as Exhibit C to the Loan Agreement is hereby replaced with the Borrowing Base Certificate attached as Schedule 1 hereto. 

 

	 	12.	The Compliance Certificate appearing as Exhibit D to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Schedule 2 hereto. 

4. FEES. Borrower shall pay to Bank (a) a Revolving Line commitment fee equal to Twenty Thousand Dollars ($20,000.00), and (b) a Growth
Capital Advance commitment fee equal to Five Thousand Dollars ($5,000.00), which fees shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred
in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms
and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of June 9, 2011 between Borrower and Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower
provided to Bank in the Perfection Certificate has not changed, as of the date hereof. 
 6. CONSISTENT CHANGES. The Existing Loan Documents are
hereby amended wherever necessary to reflect the changes described above. 

  
 6 

 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank] 

  
 7 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmogaraj
	 		 	By:	 	 /s/ Glen R. Mello

					
	Name:	 	 Raj Shanmogaraj
	 		 	Name:	 	 Glen R. Mello

					
	Title:	 	 President & CEO
	 		 	Title:	 	 DTL

 Schedule 1 

EXHIBIT C - BORROWING BASE CERTIFICATE 

Borrower: Acacia Communications, Inc. 
 Lender: Silicon Valley
Bank 
 Commitment Amount: $8,000,000.00 
  

							
	 ACCOUNTS RECEIVABLE
	   

	 1.
	  	 Accounts Receivable (invoiced) Book Value as of
                    
	  	$	            	  
	 2.
	  	 Additions (please explain on next page)
	  	$	 	  
	 3.
	  	 Less: Intercompany / Employee / Non-Trade Accounts
	  	$	 	  
	 4.
	  	 NET TRADE ACCOUNTS RECEIVABLE
	  	$	 	  
		
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  			
	 5.
	  	 90 Days Past Invoice Date
	  	$	 	  
	 6.
	  	 Credit Balances over 90 Days
	  	$	 	  
	 7.
	  	 Balance of 50% over 90 Day Accounts (cross-age or current affected)
	  	$	 	  
	 8.
	  	 Foreign Account Debtor Accounts (except for Eligible Foreign Accounts and the Specified Accounts)
	  	$	 	  
	 9.
	  	 Foreign Invoiced and/or Collected Accounts
	  	$	 	  
	 10.
	  	 Contra/Customer Deposit Accounts
	  	$	 	  
	 11.
	  	 U.S. Government Accounts
	  	$	 	  
	 12.
	  	 Promotion or Demo Accounts; Guaranteed Sale or Consignment Sale Accounts
	  	$	 	  
	 13.
	  	 Accounts with Memo or Pre-Billings
	  	$	 	  
	 14.
	  	 Contract Accounts; Accounts with Progress/Milestone Billings
	  	$	 	  
	 15.
	  	 Accounts for Retainage Billings
	  	$	 	  
	 16.
	  	 Trust / Bonded Accounts
	  	$	 	  
	 17.
	  	 Bill and Hold Accounts
	  	$	 	  
	 18.
	  	 Unbilled Accounts
	  	$	 	  
	 19.
	  	 Non-Trade Accounts (if not already deducted above)
	  	$	 	  
	 20.
	  	 Accounts with Extended Term Invoices (Net 90+)
	  	$	 	  
	 21.
	  	 Chargebacks Accounts / Debit Memos
	  	$	 	  
	 22.
	  	 Product Returns/Exchanges
	  	$	 	  
	 23.
	  	 Disputed Accounts; Insolvent Account Debtor Accounts
	  	$	 	  
	 24.
	  	 Deferred Revenue, if applicable/Other (please explain on next page)
	  	$	 	  
	 25.
	  	 Concentration Limits 25% (except for Specified Accounts)
	  	$	 	  
	 26.
	  	 TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  	$	 	  
	 27.
	  	 Eligible Accounts (#4 minus #26)
	  	$	 	  
	 28.
	  	 ELIGIBLE AMOUNT OF ACCOUNTS (80% of #27)
	  	$	 	  
	 29.
	  	 ELIGIBLE PURCHASE ORDERS
	  	$	 	  
	 30.
	  	 ELIGIBLE INVENTORY
	  			
	 31.
	  	 ELIGIBLE AMOUNT OF PURCHASE ORDERS (50% of #29 and #30, not to exceed $2,000,000)
	  	$	 	  
	 32.
	  	 ELIGIBLE AMOUNT OF PURCHASE ORDERS (50% of #29 and #30, not to exceed $1,000,000) (subject to the AQR Threshold)
	  	$	 	  
	 BALANCES
	  			
	 33.
	  	 Maximum Loan Amount
	  	$	 	  
	 34.
	  	 Total Funds Available (Lesser of #33 or (#28 plus #31 plus #32))
	  	$	 	  
	 35.
	  	 Present balance owing on Line of Credit
	  	$	 	  
	 36.
	  	 RESERVE POSITION (#34 minus #35)
	  	$	 	  

 [Continued on following page.] 

 Explanatory comments from previous page: 

 
  
  

 
  

 
  

 
 The undersigned represents and warrants that
this is true, complete and correct, and that the information in this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the undersigned and Silicon Valley Bank. 

 

			
	COMMENTS:
		
	By:	 	  

		 	Authorized Signer
		
	Date:	 	  

					
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
	
	
	Date:	 	  

	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

	Compliance Status:	 	Yes                No    

 
 

 Schedule 2 

EXHIBIT D 

COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	ACACIA COMMUNICATIONS, INC.	  	

 The undersigned authorized officer of Acacia Communications, Inc. (“Borrower”) certifies that under the terms and
conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in complete compliance for the
period ending                     with all required covenants except as noted below; (2) there are no Events of Default; (3) all
representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such
date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Bank. 
 Attached are the required documents supporting the certification. The undersigned certifies
that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the
meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under “Complies” column. 

 

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No    
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes    No    
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No    
	Borrowing Base Certificate A/R & A/P Agings	  	Monthly within 30 days	  	Yes    No    
	Board-approved Projections	  	First Business Day of month following Board approval; at least annually	  	Yes    No    

											
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies
				
	 Maintain at all times (tested monthly)
	  				  				  	
	 Tangible Net Worth
	  	$	7,500,000.00	  	  	$	            	  	  	Yes    No    

 The following are the exceptions with respect to the certification above. (If no exceptions exist, state
“No exceptions to note.”) 

  
  

 
  
  

 

 

			
	Acacia Communications, Inc.
		
	By:	 	  

	Name:	 	  

	Date:	 	  

 

					
	BANK USE ONLY
		
	Received by:	 	  

		 	AUTHORIZED SIGNER
		
	Date	 	  

		
	Verified:	 	  

		 	AUTHORIZED SIGNER
		
	Date:	 	  

		
	Compliance Status:	 	Yes            No    

 
 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:                      

 

	I.	Tangible Net Worth (Section 6.11) 

 Required: $7,500,000.00 

 

							
	 A.
	  	 Stockholder equity of Borrower
	  	$	            	  
	 B.
	  	 Aggregate value of intangible assets
	  	$	            	  
	 C.
	  	 Subordinated Debt
	  	$	            	  
	 H.
	  	 Tangible Net Worth (line A minus line B minus, plus Line C)
	  	$	            	  

 Is line H equal to or greater than $7,500,000.00? 
  

			
	         No, not in compliance	 	         Yes, in compliance

 FIFTH LOAN MODIFICATION AGREEMENT 

This Fifth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of September 12, 2013, but is
effective as of August 6, 2013, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove
Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation (“Borrower”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that certain First Loan
Modification Agreement dated as of March 13, 2012, between Borrower and Bank, as amended by that certain Second Loan Modification Agreement dated as of June 8, 2012, between Borrower and Bank, as further amended by that certain Third Loan
Modification Agreement dated as of July 10, 2012, between Borrower and Bank, and as further amended by that certain Fourth Loan Modification Agreement dated as of September 20, 2012, between Borrower and Bank (as amended, the “Loan
Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF
COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents,
together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3.
DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting Section 2.2 (Overadvances) thereof and inserting in lieu thereof the following: 

“2.2 Intentionally Omitted.” 
  

	 	2	The Loan Agreement shall be amended by deleting the following appearing as Section 2.3(a)(i) (Interest Rate; Advances) thereof: 

“(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at
a floating per annum rate equal to (a) prior to the 2012 Effective Date, one and one half of one percentage point (1.50%) above the Prime Rate, and (b) on and after the 2012 Effective Date, two percentage points (2.0%) above the
Prime Rate, which interest, in each case, shall be payable monthly in accordance with Section 2.3(f) below.” 

 and inserting in lieu thereof the following: 

“(i) Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at
a floating per annum rate equal to (a) prior to the 2012 Effective Date, one and one half of one percentage point (1.50%) above the Prime Rate, (b) on and after the 2012 Effective Date through and including the Payment Date
immediately prior to the 2013 Effective Date, two percentage points (2.0%) above the Prime Rate, and (c) on the first Payment Date following the 2013 Effective Date and at all times thereafter, one half of one percentage point (0.5%) above
the Prime Rate, which interest, in each case, shall be payable monthly in accordance with Section 2.3(f) below.” 
  

	 	3	The Loan Agreement shall be amended by deleting Section 5.3 (Accounts Receivable) thereof and inserting in lieu thereof the following: 

“5.3 Intentionally Omitted.” 
  

	 	4	The Loan Agreement shall be amended by deleting Section 6.2(a) (Borrowing Base Reports) and Section 6.2(b) (Borrowing Base Certificate) thereof and inserting in lieu thereof the following: 

“(a) Intentionally Omitted.” 

“(b) Intentionally Omitted.” 
  

	 	5	The Loan Agreement shall be amended by deleting the following appearing as Section 6.6(a) (Operating Accounts) thereof: 

“(a) Maintain all of its and all of its Subsidiaries’ operating, depository, and securities accounts with Bank and Bank’s
Affiliates.” 
 and inserting in lieu thereof the following: 

“(a) Maintain its primary and its Subsidiaries’ primary operating, depository, and securities accounts with Bank and Bank’s
Affiliates, which accounts shall be in the name of Borrower and shall represent at least seventy-five percent (75.0%) of the dollar value of Borrower’s and such Subsidiaries accounts at all financial institutions.” 

  
 - 2 - 

	 	6	The Loan Agreement shall be amended by deleting the following appearing as Section 6.11 (Financial Covenant) thereof: 

“6.11 Financial Covenant. Maintain at all times, once a Growth Capital Advance is requested, to be tested as of the last day of
each month, calculated on a consolidated basis with respect to Borrower and its Subsidiaries, a Tangible Net Worth of at least Seven Million Five Hundred Thousand Dollars ($7,500,000.00).” 

and inserting in lieu thereof the following: 

“6.11 Financial Covenants. Maintain at all times, subject to periodic reporting as of the last day of each month, unless otherwise
noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Minimum EBITDA. Commencing with
the month ending July 31, 2013, and as of the last day of each month thereafter, through and including the month ending February 28, 2014, minimum EBITDA, measured monthly on a trailing three (3) month basis, of at least One Million
Dollars ($1,000,000.00); and 
 (b) Minimum Net Income. Commencing with the month ending March 31, 2014, and as
of the last day of each month thereafter, minimum Net Income, measured monthly on a trailing three (3) month basis, of at least Two Million Dollars ($2,000,000.00).” 
  

	 	7	The Loan Agreement shall be amended by deleting the following definitions appearing in 13.1 thereof: 

““Availability Amount” is (a) the lesser of (i) the Revolving Line or (ii) the amount available under the
Borrowing Base minus (b) the outstanding principal balance of any Advances.” 
 ““Revolving Line Maturity
Date” is August 6, 2013.” 
 and inserting in lieu thereof the following: 

““Availability Amount” is the Revolving Line minus the outstanding principal balance of any Advances.” 

““Revolving Line Maturity Date” is August 5, 2015.” 

 

	 	8	The Loan Agreement shall be amended by inserting the following new terms and their respective definitions to appear alphabetically in Section 13.1 thereof: 

““2013 Effective Date” is August 6, 2013.” 

  
 - 3 - 

 ““EBITDA” shall mean (a) Net Income, plus (b) Interest Expense,
plus (c) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense.” 

““Interest Expense” means for any fiscal period, interest expense (whether cash or non-cash) determined in accordance
with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all
commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest
portion of any deferred payment obligation (including leases of all types).” 
 ““Net Income” means, as
calculated on a consolidated basis for Borrower and its Subsidiaries for any period as at any date of determination, the net profit (or loss), after provision for taxes, of Borrower and its Subsidiaries for such period taken as a single accounting
period.” 
  

	 	9	The Compliance Certificate appearing as Exhibit D to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Exhibit 1 hereto. 

4. FEES. Borrower shall pay to Bank a fully-earned non-refundable commitment fee equal to Forty Thousand Dollars ($40,000.00), which fee shall be due
on the date hereof and payable as follows: (a) Twenty Thousand Dollars ($20,000.00) is payable on the 2013 Effective Date, and (b) Twenty Thousand Dollars ($20,000.00) is payable on the earliest to occur of (i) the first anniversary
of the 2013 Effective Date, (ii) an Event of Default, or (iii) the early termination of the Revolving Line. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan
Documents. 
 5. UPDATED PERFECTION CERTIFICATE. Borrower has delivered an updated Perfection Certificate in connection with this Loan Modification
Agreement dated as of September 12, 2013 (the “Updated Perfection Certificate”), which Updated Perfection Certificate shall supersede in all respects that certain Perfection Certificate dated as of June 9, 2011. Borrower
agrees that all references in the Loan Agreement to “Perfection Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate. 

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

  
 - 4 - 

 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank.] 

  
 - 5 - 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmugaraj
	 		 	By:	 	 /s/ Brendan P. Quinn

					
	Name:	 	 Raj Shanmugaraj
	 		 	Name:	 	 Brendan P. Quinn

					
	Title:	 	 President and CEO
	 		 	Title:	 	 Vice President

  
 - 6 - 

 Exhibit 1 

EXHIBIT D - COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	ACACIA COMMUNICATIONS, INC.	  	

 The undersigned authorized officer of Acacia Communications, Inc. (“Borrower”) certifies that under
the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in
complete compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events of
Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits
of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents supporting the
certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may
be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No    
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes    No    
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No    
	Board-approved Projections	  	First Business Day of month following Board approval, but at least annually	  	Yes    No    

  

					
	August 2013	 	- 7 -	 	

													
	 Financial Covenant
	  	Required	 	 	Actual	 	  	Complies	 
				
	 Maintain at all times (tested monthly on a consolidated basis):
	  				 				  			
	 Minimum EBITDA
	  	 	  	* 	 	$	            	  	  	 	Yes    No    	  
	 Minimum Net Income
	  	 	  	** 	 	$	            	  	  	 	Yes    No    	  

  

	*	As set forth in Section 6.11(a) of the Agreement. 

	**	As set forth in Section 6.11(b) of the Agreement. 

 The following financial covenant
analysis and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate. 
 Other
Matters 
  

			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	Yes    No    

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 
  
  

 
  
  

 
  

									
	ACACIA COMMUNICATIONS, INC.	 		 	BANK USE ONLY
					
	By:	 	  
	 		 	Received by:	 	  

	 Name:
	 	  
	 		 		 	AUTHORIZED SIGNER
	 Title: 
	 	  
	 		 		 	
		 		 		 	Date:	 	  

					
		 		 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	  

				
		 		 		 	Compliance Status:                        Yes        
No

  

					
	August 2013	 	- 8 -	 	

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:                      

 

	I.	Minimum EBITDA (Section 6.11(a)) 

  

			
	Required:	  	Commencing with the month ending July 31, 2013, and as of the last day of each month thereafter, through and including the month ending February 28, 2014, minimum EBITDA, measured monthly on a trailing three (3) month
basis, of at least One Million Dollars ($1,000,000.00)
		
	Actual:	  	

  

									
	 A.
	  	 Net Income (as defined in the Loan Agreement)
	  	$	            	  
	 B.
	  	 Interest Expense (as defined in the Loan Agreement)
	  	$	            	  
	 C.
	  	 To the extent deducted in the calculation of Net Income:
	  	$	            	  
		  	 1.    Depreciation expense
	  	$	            	  
		  	 2.    Amortization expense
	  	$	            	  
	 D.
	  	 Income tax expense
	  	$	            	  
	 E.
	  	 EBITDA (sum of lines A, B, C.l, C.2, and D)
	  	$	            	  

  

			
	         No, not in compliance	  	         Yes, in compliance

  

	II.	Minimum Net Income (Section 6.11 (b)) 

  

			
	Required:	  	Commencing with the month ending March 31, 2014, and as of the last day of each month thereafter, minimum Net Income, measured monthly on a trailing three (3) month basis, of at least Two Million Dollars
($2,000,000.00)
		
	Actual:	  	$             

  

			
	         No, not in compliance	  	         Yes, in compliance

  

					
	August 2013	 	- 9 -	 	

 SIXTH LOAN MODIFICATION AGREEMENT 

This Sixth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of September 18,
2014, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation with its chief executive office located at 3 Clock Tower Place, Suite 130, Maynard, Massachusetts 01754 (“Borrower”).

 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank,
Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that
certain First Loan Modification Agreement dated as of March 13, 2012, between Borrower and Bank, as amended by that certain Second Loan Modification Agreement dated as of June 8, 2012, between Borrower and Bank, as further amended by that
certain Third Loan Modification Agreement dated as of July 10, 2012, between Borrower and Bank, as further amended by that certain Fourth Loan Modification Agreement dated as of September 20, 2012, between Borrower and Bank, and as further
amended by that certain Fifth Loan Modification Agreement dated as of September 12, 2013, but effective as of August 6, 2013, between Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not
otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is
secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing
or securing the Obligations shall be referred to as the “Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 

 

	 	A.	Modifications to Loan Agreement. 

  

	 	1	Notwithstanding Section 6.2(e) of the Loan Agreement, Borrower shall be required to deliver to Bank audited consolidated Financial statements prepared under GAAP, consistently applied, together with an unqualified
opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion for Borrower’s fiscal year ending December 31, 2013, on or before July 31 2014.

	 	2	The Loan Agreement shall be amended by deleting the following appearing as Section 6.11 (Financial Covenant) thereof: 

“6.11 Financial Covenants. Maintain at all times, subject to periodic reporting as of the last day of each month, unless otherwise
noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Minimum EBITDA. Commencing with
the month ending July 31, 2013, and as of the last day of each month thereafter, through and including the month ending February 28, 2014, minimum EBITDA, measured monthly on a trailing three (3) month basis, of at least One Million
Dollars ($1,000,000.00); and 
 (b) Minimum Net Income. Commencing with the month ending March 31, 2014, and as
of the last day of each month thereafter, minimum Net Income, measured monthly on a trailing three (3) month basis, of at least Two Million Dollars ($2,000,000.00).” 

and inserting in lieu thereof the following: 

“6.11 Financial Covenants. Maintain at all times, subject to periodic reporting as of the last day of each month, unless
otherwise noted, on a consolidated basis with respect to Borrower and its Subsidiaries: 
 (a) Minimum EBITDA.
Minimum EBITDA, measured monthly on a trailing three (3) month basis as of the last day of each month of at least the following: 
  

					
	 Month ending
	  	Minimum
EBITDA	 
	 July 31, 2013 through February 28, 2014
	  	$	1,000,000.00	  
	 April 30, 2014 through June 30, 2014
	  	$	1,000,000.00	  
	 July 31, 2014
	  	($	500,000.00	) 
	 August 31, 2014
	  	$	500,000.00	  
	 September 30, 2014 and as of the last day of each month thereafter
	  	$	1,000,000.00	  

 (b) Minimum Net Income. For the month ending March 31, 2014, minimum Net Income,
measured monthly on a trailing three (3) month basis, of at least Two Million Dollars ($2,000,000.00); and 
 (c)
Adjusted Quick Ratio. Commencing with the month ending June 30, 2014, and as of the last day of each month thereafter, an Adjusted Quick Ratio of at least 1.25 to 1.00.” 

  
 - 2 - 

	 	3	The Loan Agreement shall be amended by deleting the following definition appearing in 13.1 thereof: 

““Revolving Line” is an Advance or Advances in an amount equal to Eight Million Dollars ($8,000,000.00).” 

and inserting in lieu thereof the following: 

““Revolving Line” is an Advance or Advances in an amount equal to Fifteen Million Dollars ($15,000,000.00).” 

 

	 	4	The Loan Agreement shall be amended by inserting the following new term and its definition to appear alphabetically in Section 13.1 thereof: 

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

	 	5	The Compliance Certificate appearing as Exhibit D to the Loan Agreement is hereby replaced with the Compliance Certificate attached as Exhibit 1 hereto. 

 

	 	B.	Waivers. 

  

	 	1	Bank hereby waives Borrower’s existing defaults under the Loan Agreement by virtue of Borrower’s failure to comply with (a) Section 6.2(c) (Monthly Financial Statements) and Section 6.2(d)
(Monthly Compliance Certificate) thereof for the months ending October 31, 2013, November 30, 2013, December 31, 2013, January 31, 2014 and February 28, 2014, (b) the Minimum EBITDA financial covenant set
forth in Section 6.11(a) thereof as of the month ending December 31, 2013, and (c) the Minimum Net Income financial covenant set forth in Section 6.11(b) thereof as of the month ending March 31, 2014 (the “Existing
Defaults”). Bank’s waiver of the Existing Defaults shall apply only to the foregoing specific periods. Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in this Section or anywhere in this
Loan Modification Agreement shall be deemed or otherwise construed as a waiver by Bank of any of its rights and remedies pursuant to the Loan Documents, applicable law or otherwise. 

4. FEES. Borrower shall pay to Bank a fully-earned non-refundable amendment fee equal to Ten Thousand Dollars ($10,000.00) on the date hereof,
which, for the avoidance of doubt, is due and payable to Bank in addition to the fee of Twenty Thousand Dollars ($20,000.00) which  

  
 - 3 - 

 
is due and payable on the earliest to occur of (a) August 6, 2014, (b) an Event of Default, or (c) the early termination of the Revolving Line. Borrower shall also reimburse
Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 
 5. RATIFICATION OF PERFECTION
CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in that certain Perfection Certificate dated as of September 12, 2013 delivered by Borrower to Bank (the
“Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in the Perfection Certificate have not changed, as of the date hereof. 

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral
granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 8. NO DEFENSES OF BORROWER.
Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or
counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have
been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank.] 

  
 - 4 - 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ John Gavin
	 		 	By:	 	 /s/ Nick Currie

					
	Name:	 	 John Gavin
	 		 	Name:	 	 Nick Currie

					
	Title:	 	 CFO
	 		 	Title:	 	 Vice President

  
 - 5 - 

 Exhibit 1 

EXHIBIT D - COMPLIANCE CERTIFICATE 
  

					
	TO:	  	SILICON VALLEY BANK	  	Date:                     
	FROM:	  	ACACIA COMMUNICATIONS, INC.	  	

 The undersigned authorized officer of Acacia Communications, Inc. (“Borrower”) certifies that under
the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): 
 (1) Borrower is in
complete compliance for the period ending                      with all required covenants except as noted below; (2) there are no Events of
Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed
by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits
of which Borrower has not previously provided written notification to Bank. 
 Attached are the required documents supporting the
certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may
be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not
otherwise defined herein shall have the meanings given them in the Agreement. 
 Please indicate compliance status by circling Yes/No under
“Complies” column. 
  

					
	 Reporting Covenant
	  	 Required
	  	 Complies

			
	Monthly financial statements with Compliance Certificate	  	Monthly within 30 days	  	Yes    No    
	Annual financial statement (CPA Audited)	  	FYE within 180 days	  	Yes    No    
	10-Q, 10-K and 8-K	  	Within 5 days after filing with SEC	  	Yes    No    
	Board-approved Projections	  	First Business Day of month following Board approval, but at least annually	  	Yes    No    

  

					
	September 2014	 	- 6 -	 	

											
	 Financial Covenant
	  	Required	 	  	Actual	 	  	Complies
				
	 Maintain at all times (tested monthly on a consolidated basis):
	  				  				  	
	 Minimum EBITDA
	  	 	    	* 	  	$	            	  	  	Yes    No    
	 Minimum AQR
	  	 	1.25:1.0	  	  	$	    :1.0	  	  	Yes    No    

  

	*	As set forth in Section 6.11(a) of the Agreement. 

 The following financial covenant
analysis and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate. 
 Other
Matters 
  

			
	Have there been any amendments of or other changes to the capitalization table of Borrower and to the Operating Documents of Borrower or any of its Subsidiaries? If yes, provide copies of any such amendments or changes with this
Compliance Certificate.	  	Yes    No    

 The following are the exceptions with respect to the certification above: (If no exceptions exist, state
“No exceptions to note.”) 

	
	  

	  

	  

  

									
	ACACIA COMMUNICATIONS, INC.	 		 	BANK USE ONLY
					
	By:	 	  
	 		 	Received by:	 	  

	 Name:
	 	  
	 		 		 	AUTHORIZED SIGNER
	 Title:
	 	  
	 		 		 	
		 		 		 	Date:	 	  

					
		 		 		 	Verified:	 	  

		 		 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	  

				
		 		 		 	Compliance Status:                        Yes        
No

  
 - 7 - 

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern. 

Dated:                      

 

	I.	Minimum EBITDA (Section 6.11(a)) 

  

	Required:	Minimum EBITDA, measured monthly on a trailing three (3) month basis as of the last day of each month of at least the following: 

 

					
	 Month ending
	  	Minimum EBITDA	 
	 July 31, 2013 through February 28, 2014
	  	$	1,000,000.00	  
	 April 30, 2014 through June 30, 2014
	  	$	1,000,000.00	  
	 July 31, 2014
	  	($	500,000.00	) 
	 August 31, 2014
	  	$	500,000.00	  
	 September 30, 2014 and as of the last day of each month thereafter
	  	$	1,000,000.00	  

 Actual: 
  

							
	 A.
	  	 Net Income (as defined in the Loan Agreement)
	  	$	            	  
	 B.
	  	 Interest Expense (as defined in the Loan Agreement)
	  	$	            	  
	 C.
	  	 To the extent deducted in the calculation of Net Income:
	  	$	 	  
		  	 1.    Depreciation expense
	  	$	 	  
		  	 2.    Amortization expense
	  	$	 	  
	 D.
	  	 Income tax expense
	  	$	 	  
	 E.
	  	 EBITDA (sum of lines A, B, C.l, C.2, and D)
	  	$	 	  

 Is line E equal to or greater than the required level for the specific period? 

 

			
	         No, not in compliance	  	         Yes, in compliance

  
 - 8 - 

	II.	Adjusted Quick Ratio (Section 6.11(c)) 

  

	Required:	Commencing with the month ending June 30, 2014, and as of the last day of each month thereafter, an Adjusted Quick ratio of at least 1.25 to 1.00. 

Actual: 
  

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

 Is line I equal to or greater than 1.25:1.00? 
  

			
	         No, not in compliance	  	         Yes, in compliance

  
 - 9 - 

 SEVENTH LOAN MODIFICATION AGREEMENT 

This Seventh Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of August 5,
2015, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation with its chief executive office located at 3 Clock Tower Place, Suite 130, Maynard, Massachusetts 01754 (“Borrower”).

 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank,
Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, a certain Loan and Security Agreement dated as of June 9, 2011, between Borrower and Bank, as amended by that
certain First Loan Modification Agreement dated as of March 13, 2012, between Borrower and Bank, as amended by that certain Second Loan Modification Agreement dated as of June 8, 2012, between Borrower and Bank, as further amended by that
certain Third Loan Modification Agreement dated as of July 10, 2012, between Borrower and Bank, as further amended by that certain Fourth Loan Modification Agreement dated as of September 20, 2012, between Borrower and Bank, and as further
amended by that certain Fifth Loan Modification Agreement dated as of September 12, 2013, but effective as of August 6, 2013, as further amended by that certain Sixth Loan Modification Agreement dated as of September 18, 2014, between
Borrower and Bank (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan
Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following definition appearing in 13.1 thereof: 

““Revolving Line Maturity Date” is August 5, 2015” 

and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is November 5, 2015” 

4. FEES. Borrower shall pay to Bank a fully-earned non-refundable modification fee equal to Three Thousand Six Hundred Ninety Eight Dollars and Sixty
Three Cents ($3,698.63) which fee shall be due and payable as of the Seventh Loan Modification date. 

 5. RATIFICATION OF’ PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and
singular, the terms and disclosures contained in that certain Perfection Certificate dated as of September 12, 2013 delivered by Borrower to Batik (the “Perfection Certificate”), and acknowledges, confirms and agrees the
disclosures and information above Borrower provided to Bank in the Perfection Certificate have not changed, as of the date hereof. 
 6. CONSISTENT
CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 7. RATIFICATION OF LOAN
DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank.] 

  
 - 2 - 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ John Gavin
	 		 	By:	 	 /s/ Nick Currie

					
	Name:	 	 John Gavin
	 		 	Name:	 	 Nick Currie

					
	Title:	 	 CFO
	 		 	Title:	 	 Vice President

  
 - 3 - 

 PRO FORMA INVOICE FOR LOAN CHARGES 

BORROWER: ACACIA COMMUNICATIONS, INC. 
  

					
	A.	 	LOAN OFFICER:	  	Nick Currie
			
	B.	 	DATE:	  	August 11, 2015
			
	C.	 	Modification Fee:	  	$3,698.63
		
	TOTAL FEES DUE	  	$3,698.63
		
	{    }	  	A check for the total amount is attached.
		
	{X}	  	Debit DDA # 3300676311 for the total amount.

  

			
	BORROWER:
		
	/s/ John Gavin	 	8/11/2015
	  

	Authorized Signer	 	(Date)
	
	SILICON VALLEY BANK:
		
	/s/ Nick Currie	 	
	  

	Loan Officer Signature	 	(Date)

  
 - 4 - 

 Exhibit K 

EIGHTH LOAN MODIFICATION AGREEMENT 

This Eighth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of November 4, 2015, by
and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation with its chief executive office located at 3 Clock Tower Place, Suite 130, Maynard, Massachusetts 01754 (“Borrower”). 

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, that certain Loan and Security Agreement between Borrower and Bank dated as of June 9, 2011, as amended by that certain First
Loan Modification Agreement between Borrower and Bank dated as of March 13, 2012, as amended by that certain Second Loan Modification Agreement between Borrower and Bank dated as of June 8, 2012, as amended by that certain Third Loan
Modification Agreement between Borrower and Bank dated as of July 10, 2012, as amended by that certain Fourth Loan Modification Agreement between Borrower and Bank dated as of September 20, 2012, as amended by that certain Fifth Loan
Modification Agreement between Borrower and Bank dated as of September 12, 2013, as amended by that certain Sixth Loan Modification Agreement between Borrower and Bank dated as of September 18, 2014, and as further amended by that certain
Seventh Loan Modification Agreement between Borrower and Bank dated as of August 5, 2015 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan
Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together
with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the
“Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 

 

	 	A.	Modifications to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following definition appearing in 13.1 thereof: 

“             “Revolving Line Maturity Date”
is November 5, 2015.” 
 and inserting in lieu thereof the following: 

“             “Revolving Line Maturity Date”
is January 4, 2016.” 
 4. FEES. Borrower shall pay to Bank a fully-earned non-refundable modification fee equal to Two Thousand Four
Hundred Sixty Five Dollars and Seventy Five Cents ($2,465.75) which fee shall be due and payable as of the date hereof. 
 5. RATIFICATION OF PERFECTION
CERTIFICATE. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in that certain Perfection Certificate dated as of September 12, 2013 delivered by Borrower to Bank (the
“Perfection Certificate”), and acknowledges, confirms and agrees the disclosures and information Borrower provided to Bank in the Perfection Certificate have not changed, as of the date hereof. 

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank.] 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
	BORROWER:	 		 	BANK:
			
	ACACIA COMMUNICATIONS, INC.	 		 	SILICON VALLEY BANK
					
	By:	 	 /s/ Raj Shanmugaraj
	 		 	By:	 	 /s/ Nick Currie

					
	Name:	 	 Raj Shanmugaraj
	 		 	Name:	 	 Nick Currie

					
	Title:	 	 Chief Executive Officer
	 		 	Title:	 	 Vice President

 NINTH LOAN MODIFICATION AGREEMENT 

This Ninth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of January 13, 2016, but
effective as of January 4, 2016, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove
Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation with its chief executive office located at 3 Clock Tower Place, Suite 130, Maynard, Massachusetts 01754
(“Borrower”). 
 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by
Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, that certain Loan and Security Agreement between Borrower and Bank dated as of June 9, 2011, as
amended by that certain First Loan Modification Agreement between Borrower and Bank dated as of March 13, 2012, as amended by that certain Second Loan Modification Agreement between Borrower and Bank dated as of June 8, 2012, as amended by
that certain Third Loan Modification Agreement between Borrower and Bank dated as of July 10, 2012, as amended by that certain Fourth Loan Modification Agreement between Borrower and Bank dated as of September 20, 2012, as amended by that
certain Fifth Loan Modification Agreement between Borrower and Bank dated as of September 12, 2013, as amended by that certain Sixth Loan Modification Agreement between Borrower and Bank dated as of September 18, 2014, as amended by that
certain Seventh Loan Modification Agreement between Borrower and Bank dated as of August 5, 2015, and as further amended by that certain Eighth Loan Modification Agreement between Borrower and Bank dated as of November 4, 2015 (as amended,
the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement. 
 2.
DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement (together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the
Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”. 

3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	Modifications to Loan Agreement. 

 1 The Loan Agreement shall be amended by deleting the
following definition appearing in 13.1 thereof: 
 ““Revolving Line Maturity Date” is January 4, 2016.” 

and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is March 4, 2016.” 

4. FEES. Borrower shall pay to Bank a fully-earned non-refundable modification fee equal to Two Thousand Four Hundred Sixty-Five Dollars and
Seventy-Five Cents ($2,465.75) which fee shall be due and payable as of the date hereof. 
 5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower
hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in that certain Perfection Certificate dated as of September 12, 2013 delivered by Borrower to Bank (the “Perfection Certificate”),
and acknowledges, confirms and agrees the disclosures and information Borrower provided to Bank in the Perfection Certificate have not changed, as of the date hereof. 

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 

 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and
conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 

8. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder. 
 9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing
Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly
released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification
Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
 [The remainder of this page is
intentionally left blank.] 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
			
	 BORROWER:
	 		 	BANK:
			
	 ACACIA COMMUNICATIONS, INC.
	 		 	SILICON VALLEY BANK
					
	By:	 	/s/ Murugesan Shanmugaraj	 		 	By:	 	/s/ Nick Currie
					
	Name:	 	Murugesan Shanmugaraj	 		 	Name:	 	Nick Currie
					
	Title:	 	President and CEO	 		 	Title:	 	Vice President

 TENTH LOAN MODIFICATION AGREEMENT 

This Tenth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of January 27, 2016, by and
between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton,
Massachusetts 02466 (“Bank”) and ACACIA COMMUNICATIONS, INC., a Delaware corporation with its chief executive office located at 3 Clock Tower Place, Suite 130, Maynard, Massachusetts 01754 (“Borrower”).

 1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank,
Borrower is indebted to Bank pursuant to a loan arrangement dated as of June 9, 2011, evidenced by, among other documents, that certain Loan and Security Agreement between Borrower and Bank dated as of June 9, 2011, as amended by that
certain First Loan Modification Agreement between Borrower and Bank dated as of March 13, 2012, as amended by that certain Second Loan Modification Agreement between Borrower and Bank dated as of June 8, 2012, as amended by that certain
Third Loan Modification Agreement between Borrower and Bank dated as of July 10, 2012, but effective as of July 8, 2012, as amended by that certain Fourth Loan Modification Agreement between Borrower and Bank dated as of September 20,
2012, but effective as of August 7, 2012, as amended by that certain Fifth Loan Modification Agreement between Borrower and Bank dated as of September 12, 2013, but effective as of August 6, 2013, as amended by that certain Sixth Loan
Modification Agreement between Borrower and Bank dated as of September 18, 2014, as amended by that certain Seventh Loan Modification Agreement between Borrower and Bank dated as of August 5, 2015, as amended by that certain Eighth Loan
Modification Agreement between Borrower and Bank dated as of November 4, 2015, and as further amended by that certain Ninth Loan Modification Agreement between Borrower and Bank dated as of January 13, 2016, but effective as of
January 4, 2016 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the
Loan Agreement. 
 2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement
(together with any other collateral security granted to Bank, the “Security Documents”). Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the
“Existing Loan Documents”. 
 3. DESCRIPTION OF CHANGE IN TERMS. 

 

	 	A.	Modification to Loan Agreement. 

  

	 	1	The Loan Agreement shall be amended by deleting the following definition appearing in 13.1 thereof: 

““Revolving Line Maturity Date” is March 4, 2016.” 

and inserting in lieu thereof the following: 

““Revolving Line Maturity Date” is June 2, 2016.” 

4. FEES. Borrower shall pay to Bank a fully-earned non-refundable modification fee equal to Three Thousand Six Hundred Ninety-Eight Dollars and
Sixty-Two Cents ($3,698.62) which fee shall be due and payable as of the date hereof. 
 5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby
ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in that certain Perfection Certificate dated as of September 12, 2013 delivered by Borrower to Bank (the “Perfection Certificate”), and
acknowledges, confirms and agrees the disclosures and information Borrower provided to Bank in the Perfection Certificate have not changed, as of the date hereof. 

 6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the
changes described above. 
 7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all
security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations. 
 8.
NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any
offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s
representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and
effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement. 
 10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have
been executed by Borrower and Bank. 
 [The remainder of this page is intentionally left blank.] 

  
 108 

 This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above. 
  

									
			
	 BORROWER:
	 		 	BANK:
			
	 ACACIA COMMUNICATIONS, INC.
	 		 	SILICON VALLEY BANK
					
	By:	 	/s/ John Gavin	 		 	By:	 	/s/ Nick Currie
					
	Name:	 	John Gavin	 		 	Name:	 	Nick Currie
					
	Title:	 	CFO	 		 	Title:	 	Vice PresidentHYDROCARB ENERGY CORPORATION 8-K/A

 

Exhibit 10.2

 

 

 

NEITHER THE ISSUANCE NOR
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE CONVERTIBLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED
FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY
ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR
FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

 

	Principal Amount: $200,000	Issue Date: November 12, 2015
	Purchase Price: $200,000	 

 

 

 

8% SHORT TERM CASH REDEEMABLE NOTE

 

FOR VALUE
RECEIVED, HYDROCARB ENERGY CORPORATION, a Nevada corporation (hereinafter called the “Borrower”), hereby
promises to pay to the order of DARLING CAPITAL, LLC a New York limited liability company, or registered assigns (the “Holder”)
the sum of Two Hundred Thousand ($200,000.00) as set forth herein, on September 12, 2016 (the “Maturity Date”), and
to pay interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per
annum from November 12, 2015 until the Note plus any and all accrued interest is paid in full. The Holder will have the option
to extend the Maturity Date an additional nine (9) months. The Holder must inform the Borrower, in writing, within thirty (30)
days from the original Maturity Date of its intent to extend the Maturity Date. Interest shall commence accruing on the date that
the Note is fully paid and shall be computed on the basis of a 360-day year and the actual number of days elapsed. Any amount of
principal or interest on this Note which is not paid when due shall bear interest at the rate of twenty two percent (22%) per annum
or the maximum rate permitted under applicable law from the due date thereof until the same is paid (“Default Interest”).
All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”)
in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made
at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of
this Note. Whenever any amount expressed to be due by the terms of this Note is due on any day which is not a business day, the
same shall instead be due on the next succeeding day which is a business day and, in the case of any interest payment date which
is not the date on which this Note is paid in full, the extension of the due date thereof shall not be taken into account for purposes
of determining the amount of interest due on such date. As used in this Note, the term “business day” shall mean any
day other than a Saturday, Sunday or a day on which commercial banks in the city of New York, New York are authorized or required
by law or executive order to remain closed.

 

This Note is free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other
similar rights of shareholders of the

 

Borrower and will not impose personal
liability upon the holder thereof.

 

The following terms shall apply to this Note:

    	 		 

    	 

    

   

ARTICLE I. CONVERSION RIGHTS

 1.1.             
Conversion Right. The Holder shall have the right upon the occurrence of a Pre-Payment Default, to convert all or
any part of the outstanding and unpaid principal amount of this Note into fully paid and non- assessable shares of Common Stock,
as such Common Stock exists on the Issue Date, or any shares of capital stock or other securities of the Borrower into which such
Common Stock shall hereafter be changed or reclassified at the Conversion Price determined as provided herein (a “Conversion”);
provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of
that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the
Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the
unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a
limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock
issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made,
would result in beneficial ownership by the Holder and its affiliates of more than 9.99% of the outstanding shares of Common Stock.
For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with
Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder,
except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations
on conversion may be waived by the Holder upon, at the election of the Holder, not less than 61 days’ prior written notice
to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date,
as determined by the Holder, as may be specified in such notice of waiver). The number of shares of Common Stock to be issued
upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion
Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice
of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice
of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice)
to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”). The term
“Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this
Note to be converted in such conversion plus (2) at the Holder’s option, accrued and unpaid interest, if any, on
such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s
option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4)
at the Holder’s option, any amounts owed to the Holder pursuant to Section 1.4(g) hereof.

1.2.             
Conversion Price.

a)                 Calculation of Conversion Price. The conversion price (the “Conversion Price”) shall equal the
Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights
offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations,
recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price”
shall mean the greater of 60% multiplied by the Market Price (as defined herein) and $.001 per share. “Market Price”
means the lowest closing bid Price (as defined below) for the Common Stock during the Fifteen (15) Trading Day period immediately
preceding the Conversion Date (the “Look Back Period”). “Trading Price” means, for any security as of any
date, the closing stock price on the OTCQB Market, or applicable trading market (the “OTCPink”) as reported by a reliable
reporting service (“Reporting Service”) designated by the Holder (i.e. Bloomberg); provided that if the closing bid
price for the common stock on the Clearing date (defined below) is lower than the closing bid price, then the purchase
price shall be adjusted such that the discount shall be taken from the closing bid price on the Clearing Date, and
the Borrower shall issue additional shares to Holder to reflect such adjusted Conversion Price. For purposes of this
Agreement, the Clearing Date shall be the latest date on which (i) the conversion shares are transferred to and deposited
into the Holder’s brokerage account by the Borrower’s representatives or transfer agent and (ii) Holder’s
broker has confirmed with Holder that the Holder may execute trades of the conversion shares. If such events occur after
5:30 PM Eastern Standard Time, the events shall be deemed to have occurred on the next trading day. There shall be an initial floor
at $0.30 per share. If the Borrower’s stock price closes below $0.30 per share, the Holder may not submit a notice of conversion
for 10 trading days after the drop. However, if the stock price closes back above the floor price, then the Holder may submit a
conversion notice and does not need to wait the balance of the 10 days. This process shall be repeated with lower floors of $0.15
per share and $0.075 per share. If the stock price closes below a lower priced floor during the 10 day period the Holder does not
need to wait an additional 10 days to submit the notice of conversion Finally, after the 10 days blackout period, the Holder shall
have a 3 day grace period to submit a conversion notice even if the price of the Borrower’s stock was to close below the
next lower floor level. Upon the exercise of any conversion, the Holder shall duly notify the Borrower whether principal or interest
is being converted. If the Borrower’s Common stock is chilled for deposit at DTC, becomes chilled at any point while this
Agreement remains outstanding or deposit otherwise additional fees due to a Yield Sign, Stop Sign or other trading restrictions,
an additional 10% discount will be attributed to the Conversion Price defined hereof. For purposes of this agreement, “Trading
Day” shall mean any day on which the Common Stock is tradable for any period on the OTCPink, or on the principal securities
exchange or other securities market on which the Common Stock is then being traded. The Borrower shall bear any and all miscellaneous
expenses that may arise as a result of conversion of the note and the delivery of shares of common stock thereunder including but
not limited to transfer agent fees, rule 144 legal opinion fees and deposit fees. All accrued conversion expenses paid by the holder
shall be added to the amount being converted under the note. No fractional shares or scrip representing fractions of shares will
be issued on conversion, but the number of shares issuable shall be rounded up or down, as the case may be, to the nearest whole
share.

    	 		 

    	 

    

b)                 The
Borrower acknowledges that it will take all reasonable steps necessary or appropriate to issue and deliver the Common Stock upon
conversion, including providing a board of directors’ resolution authorizing the issuance of Common Stock. Without in any
way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties
agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (as defined
below), due to the willful acts of the Borrower designed to hinder the delivery of the Common Stock to the Holder, the Borrower
shall pay to the Holder $2,000.00 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common
Stock. 

Such cash
amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of
the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall
be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this
Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The
Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to
frustrate, interfere with such conversion right are difficult if not impossible to qualify. Accordingly the parties acknowledge
that the liquidated damages provision contained in this Section are justified. 

c)                  Conversion
Price During Major Announcements. Notwithstanding anything contained in Section 1.2(a) to the contrary, in the event the Borrower
(i) makes a public announcement that it intends to consolidate or merge with any other corporation (other than a merger in which
the Borrower is the surviving or continuing corporation and its capital stock is unchanged) or sell or transfer all or substantially
all of the assets of the Borrower or (ii) any person, group or entity (including the Borrower) publicly announces a tender offer
to purchase 50% or more of the Borrower’s Common Stock (or any other takeover scheme) (the date of the announcement referred
to in clause (i) or (ii) is hereinafter referred to as the “Announcement Date”), then the Conversion Price shall,
effective upon the Announcement Date and continuing through the Adjusted Conversion Price Termination Date (as defined below),
be equal to the lower of (x) the Conversion Price which would have been applicable for a Conversion occurring on the Announcement
Date and (y) the Conversion Price that would otherwise be in effect. From and after the Adjusted Conversion Price Termination
Date, the Conversion Price shall be determined as set forth in Section 1.2(a). For purposes hereof, “Adjusted Conversion
Price Termination Date” shall mean, with respect to any proposed transaction or tender offer (or takeover scheme) for which
a public announcement as contemplated by this Section 1.2(c) has been made, the date upon which the Borrower (in the case of clause
(i) above) or the person, group or entity (in the case of clause (ii) above) consummates or publicly announces the termination
or abandonment of the proposed transaction or tender offer (or takeover scheme) which caused this Section 1.2(c) to become operative. 

1.3.             
Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve
from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance
of Common Stock upon the full conversion of this Note issued. The Borrower is required at all times to have authorized and reserved
one and one half times the number of shares that is actually issuable upon full conversion of the Note (based on the Conversion
Price of the Notes in effect from time to time)(the “Reserved Amount”). The Reserved Amount shall be increased from
time to time in accordance with the Borrower’s obligations. Initially, the Borrower shall reserve One Million Two Hundred
Thousand (1,200,000) shares of common stock in the name of the Holder. The Borrower represents that upon issuance, such shares
will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make
any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible
at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall
be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding
Notes. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common
Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to
its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates
for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain
the Reserved Amount it will be considered an Event of Default under Section 3.15 of the Note, provided that the Borrower shall
have 10 Business Days to begin to cure the default (during which time, if an authorized share increase is required, the Borrower
will at the minimum file the necessary paperwork with the SEC to start the process to increase its authorized shares, and which
if timely completed, will not constitute an Event of Default).

    	 		 

    	 

    

 

Method of Conversion.

a)                 Mechanics
of Conversion. Subject to Section 1.1, this Note may be converted by the Holder in whole or in part at any time from time
to time after the occurrence of a Pre-Payment Default, by (A) submitting to the Borrower a Notice of Conversion (by facsimile,
e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time)
and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower. 

b)                 Surrender
of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid
principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount
so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower,
so as not to require physical surrender of this Note upon each such conversion. In the event of any dispute or discrepancy, such
records of the Borrower shall, prima facie, be controlling and determinative in the absence of manifest error. Notwithstanding
the foregoing, if any portion of this Note is converted as aforesaid, the Holder may not transfer this Note unless the Holder
first physically surrenders this Note to the Borrower, whereupon the Borrower will forthwith issue and deliver upon the order
of the Holder a new Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes)
may request, representing in the aggregate the remaining unpaid principal amount of this Note. The Holder and any assignee, by
acceptance of this Note, acknowledge and agree that, by reason of the provisions of this paragraph, following conversion of a
portion of this Note, the unpaid and unconverted principal amount of this Note represented by this Note may be less than the amount
stated on the face hereof.

c)                 Payment
of Taxes. The Borrower shall not be required to pay any tax which may be payable in respect of any transfer involved in the
issue and delivery of shares of Common Stock or other securities or property on conversion of this Note in a name other than that
of the Holder (or in street name), and the Borrower shall not be required to issue or deliver any such shares or other securities
or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are
to be held for the Holder’s account) requesting the issuance thereof shall have paid to the Borrower the amount of any such
tax or shall have established to the satisfaction of the Borrower that such tax has been paid. 

d)                 Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission
or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided
in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder
certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”)
(and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with
the terms hereof.

    	 		 

    	 

    

e)                 Obligation of Borrower to Deliver Common Stock. Upon receipt by the Borrower of a duly and properly executed
Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion,
the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion,
and, unless the Borrower defaults on its obligations under this Article I, all rights with respect to the portion of this Note
being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets,
as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s
obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence
of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any
judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation
of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged
breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit
such obligation of the Borrower to the Holder in connection with such conversion. The Conversion Date specified in the Notice of
Conversion shall be the Conversion Date so long as the Notice of Conversion is received by the Borrower before 6:00 p.m., New York,
New York time, on such date.

f)                  Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing
the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”)
Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions
contained in Section 1.1 and in this Section 1.4, the Borrower shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC
through its Deposit Withdrawal Agent Commission (“DWAC”) system.

g)                 Failure
to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including
actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion
of this Note is not delivered by the Deadline the Borrower shall pay to the Holder $2,000.00 per day in cash, for each
day beyond the Deadline that the Borrower fails to deliver such Common Stock through willful acts designed to hinder the delivery
of Common Stock to the Holder. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which
it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the
month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon
in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance
with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting
from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly
the parties acknowledge that the liquidated damages provision contained in this Section 1.4(g) are justified. 

1.4.             
Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred
unless (i) such shares are sold pursuant to an effective registration statement under the Act or (ii) the Borrower or its transfer
agent shall have been furnished with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions
of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant
to an exemption from such registration or (iii) such shares are sold or transferred pursuant to Rule 144 under the Act (or a successor
rule) (“Rule 144”) or (iv) such shares are transferred to an “affiliate” (as defined in Rule 144) of the
Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited
Investor. (and subject to the removal provisions set forth below), until such time as the shares of Common Stock issuable upon
conversion of this Note have been registered under the Act or otherwise may be sold pursuant to Rule 144 without any restriction
as to the number of securities as of a particular date that can then be immediately sold, each certificate for shares of Common
Stock issuable upon conversion of this Note that has not been so included in an effective registration statement or that has not
been sold pursuant to an effective registration statement or an exemption that permits removal of the legend, shall bear a legend
substantially in the following form, as appropriate:

    	 		 

    	 

    

 

“NEITHER
THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE
HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT
BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN
A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE
144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT
OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

legend set forth above shall
be removed and the Borrower shall issue to the Holder a new certificate therefore free of any transfer legend if (i) the Borrower
or its transfer agent shall have received an opinion of counsel form, substance and scope customary for opinions of counsel in
comparable transactions, to the effect that a public sale or transfer of such Common Stock may be made without registration under
the Act, which opinion shall be accepted by the Borrower so that the sale or transfer is or (ii) in the case of the Common Stock
issuable upon conversion of this Note, such security is registered for sale by the Holder under an effective registration statement
filed under the Act or otherwise may be sold pursuant to Rule 144 without any restriction as to the number of securities as of
a particular date that can then be immediately sold. In the event that the Borrower does not reasonably accept the opinion of
counsel provided by the Holder with respect to the transfer of Securities pursuant to an exemption from registration, such as
Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of this Note. 

1.5.             
Effect of Certain Events.

a)                 Effect
of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all
of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more
than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the
Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall either: (i) be
deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder
upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III)
or (ii) be treated pursuant to Section 1.6(b) hereof. “Person” shall mean any individual, corporation, limited liability
company, partnership, association, trust or other entity or organization. 

b)                 Adjustment
Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all
of the Notes, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar
event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares
of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of
all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower,
then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon
the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion,
such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted
in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such
case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that
the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares
issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities
or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section
1.6(b) unless (a) it first gives, to the extent practicable, thirty (30) days prior written notice (but in any event at least
fifteen (15) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no
such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other
similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor
or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Section 1.6(b). The above provisions
shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges.

    	 		 

    	 

    

 

c)                 Adjustment
Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets)
to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or
distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary
(i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this
Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets
which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such
Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such
Distribution. 

d)                 Purchase
Rights. If, at any time when any Notes are issued and outstanding, the Borrower issues any convertible securities or rights
to purchase stock, warrants, securities or other property (the “Purchase Rights”) pro rata to the record holders of
any class of Common Stock, then the Holder of this Note will be entitled to acquire, upon the terms applicable to such Purchase
Rights, the aggregate Purchase Rights which such Holder could have acquired if such Holder had held the number of shares of Common
Stock acquirable upon complete conversion of this Note (without regard to any limitations on conversion contained herein) immediately
before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights or, if no such record is taken,
the date as of which the record holders of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights. 

e)                 Notice
of Adjustments. Upon the occurrence of each adjustment or readjustment of the Conversion Price as a result of the events described
in this Section 1.6, the Borrower, at its expense, shall promptly compute such adjustment or readjustment and prepare and furnish
to the Holder a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment
or readjustment is based. The Borrower shall, upon the written request at any time of the Holder, furnish to such Holder a like
certificate setting forth (i) such adjustment or readjustment, (ii) the Conversion Price at the time in effect and (iii) the number
of shares of Common Stock and the amount, if any, of other securities or property which at the time would be received upon conversion
of the Note. 

1.6.             
Intentionally left blank. 

1.7.             
Status as Shareholder. Upon submission of a Notice of Conversion by a Holder, (i) the shares covered thereby (other
than the shares, if any, which cannot be issued because their issuance would exceed such Holder’s allocated portion of the
Reserved Amount or Maximum Share Amount) shall be deemed converted into shares of Common Stock and (ii) the Holder’s rights
as a Holder of such converted portion of this Note shall cease and terminate, excepting only the right to receive certificates
for such shares of Common Stock and to any remedies provided herein or otherwise available at law or in equity to such Holder because
of a failure by the Borrower to comply with the terms of this Note. Notwithstanding the foregoing, if a Holder has not received
certificates for all shares of Common Stock prior to the tenth (10th) business day after the expiration of the Deadline with respect
to a conversion of any portion of this Note for any reason, then (unless the Holder otherwise elects to retain its status as a
holder of Common Stock by so notifying the Borrower) the Holder shall regain the rights of a Holder of this Note with respect to
such unconverted portions of this Note and the Borrower shall, as soon as practicable, return such unconverted Note to the Holder
or, if the Note has not been surrendered, adjust its records to reflect that such portion of this Note has not been converted.
In all cases, the Holder shall retain all of its rights and remedies for the Borrower’s failure to convert this Note.

 

    	 		 

    	 

    

1.8.             
Prepayment. The Company shall pay this Note in full, together will any and all accrued and unpaid interest, subject
to the terms of this Section 1.8, on the date which occurs 180 days after the issuance date hereof (the “Prepayment
Date”). In the event the Note is not prepaid in full on or before the Prepayment Date, as such may be extended by
any side letters or other agreements relating there-to, it shall be deemed a “Pre-Payment Default” hereunder.
Notwithstanding anything to the contrary contained in this Note, at any time during the period beginning on the Issue Date,
the Borrower shall have the right, exercisable on not less than three (3) Trading Days prior written notice to the Holder of the
Note to prepay the outstanding Note (principal and accrued interest), in full, in accordance with this Section Any notice of prepayment
hereunder (an “Optional Prepayment Notice”) shall be delivered to the Holder of the Note at its registered addresses
and shall state: (1) that the Borrower is exercising its right to prepay the Note, and (2) the date of prepayment which shall
be not more than three (3) Trading Days from the date of the Optional Prepayment Notice. On the date fixed for prepayment (the
“Optional Prepayment Date”), the Borrower shall make payment of the Optional Prepayment Amount (as defined below)
to or upon the order of the Holder as specified by the Holder in writing to the Borrower at least one (1) business day prior to
the Optional Prepayment Date. If the Borrower exercises its right to prepay the Note, the Borrower shall make payment to the Holder
an amount as follows: (i) if the redemption is within the first 60 days this note is in effect of either an amount in cash (the
“Optional Prepayment Amount”) equal to 115%, multiplied by the sum of: (w) the then outstanding principal amount of
this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date
plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to
the Holder pursuant to Section 1.4(g) hereof, or the current total value of the shares had this note been completely converted
with all the discounts and terms included herein and the shares sold on the market, whichever is greater. (ii) if the redemption
is after the 61st day this note is in effect, but less than the 120th day this note is in effect, then either an amount in cash
(the “Optional Prepayment Amount”) equal to 135%, multiplied by the sum of: (w) the then outstanding principal amount
of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment
Date plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed
to the Holder pursuant to Section 1.4(g) hereof, or the current total value of the shares had this note been completely converted
with all the discounts and terms included herein and the shares sold on the market, whichever is greater. (iii) if the redemption
is after the 121st day this note is in effect, but before the Prepayment Date, then either an amount in cash (the “Optional
Prepayment Amount”) equal to 145%, multiplied by the sum of: (w) the then outstanding principal amount of this Note plus
(x) accrued and unpaid interest on the unpaid principal amount of this Note to the Optional Prepayment Date plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and (x) plus (z) any amounts owed to the Holder pursuant
to Section 1.4(g) hereof, or the current total value of the shares had this note been completely converted with all the discounts
and terms included herein and the shares sold on the market, whichever is greater. If the Borrower delivers an Optional Prepayment
Notice and fails to pay the Optional Prepayment Amount due to the Holder of the Note within two (2) business days following the
Optional Prepayment Date, the Borrower shall forever forfeit its right to prepay the Note pursuant to this Section 1.8

After the Prepayment
Date, the Borrower shall have no right of prepayment, except as otherwise agreed.

ARTICLE II. CERTAIN COVENANTS

2.1.             
Distributions on Capital Stock. So long as the Borrower shall have any obligation under this Note, the Borrower
shall not without the Holder’s written consent (a) pay, declare or set apart for such payment, any dividend or other distribution
(whether in cash, property or other securities) on shares of capital stock other than dividends on shares of Common Stock solely
in the form of additional shares of Common Stock or (b) directly or indirectly or through any subsidiary make any other payment
or distribution in respect of its capital stock except for distributions pursuant to any shareholders’ rights plan which
is approved by a majority of the Borrower’s disinterested directors.

2.2.             
Restriction on Stock Repurchases. So long as the Borrower shall have any obligation under this Note, the Borrower
shall not without the Holder’s written consent redeem, repurchase or otherwise acquire (whether for cash or in exchange for
property or other securities or otherwise) in any one transaction or series of related transactions any shares of capital stock
of the Borrower or any warrants, rights or options to purchase or acquire any such shares.

 

    	 		 

    	 

    

2.3.             
Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary
course of business. Any consent to the disposition of any assets may be conditioned on a specified use of the proceeds of disposition. 

2.4.             
Advances and Loans. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, without
the Holder’s written consent, lend money, give credit or make advances to any person, firm, joint venture or corporation,
including, without limitation, officers, directors, employees, subsidiaries and affiliates of the Borrower, except loans, credits
or advances (a) in existence or committed on the date hereof and which the Borrower has informed Holder in writing prior to the
date hereof, (b) made in the ordinary course of business or (c) not in excess of $25,000.

2.5.             
Timely reporting obligation So long as the Borrower shall have any obligation under this Note the borrower shall
remain current in its fillings with the SEC, as required under the Exchange Act.

ARTICLE III. EVENTS OF DEFAULT

If any of the following events of default
(each, an “Event of Default”) shall occur: 

3.1.             
Failure to Pay Principal or Interest. The Borrower fails to pay the principal hereof or interest thereon when due
on this Note, whether at maturity, upon acceleration or otherwise. 

3.2.             
Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens
in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder
in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or
in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant
to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or
hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of
Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note,
or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing)
any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of
Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or
makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph)
and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall
not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an
obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this
Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent.
If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion,
such advanced funds shall be paid by the Borrower to the Holder within forty eight (48) hours of a demand from the Holder.

3.3.             
Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in
this Note and any collateral documents and such breach continues for a period of ten (10) days after written notice thereof to
the Borrower from the Holder.

3.4.             
Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement,
statement or certificate given in writing pursuant hereto or in connection herewith, shall be false or misleading in any material
respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of
the Holder with respect to this Note.

3.5.             
Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of
creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property
or business, or such a receiver or trustee shall otherwise be appointed.

3.6.             
Judgments. Any money judgment, writ or similar process shall be entered or filed against the Borrower or any subsidiary
of the Borrower or any of its property or other assets for more than $250,000, and shall remain unvacated, unbonded or unstayed
for a period of twenty (20) days unless otherwise consented to by the Holder, which consent will not be unreasonably withheld.

    	 		 

    	 

    

 

3.7.             
Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or
involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower
or any subsidiary of the Borrower

3.8.             
Delisting of Common Stock. The Borrower shall either fail to maintain the listing of the Common Stock on at least
one of the OTCPink or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, or the New York
Stock Exchange, or if the OTC or equivalent market shall display any type of caution indicator on the listing, such as a “Yield
sign”, “Stop sign”, “Skull and bones” or other.

3.9.             
Failure to Comply with the Exchange Act. The Borrower shall fail to comply in any material respect with the periodic
reporting requirements or obligations of the Exchange Act; and/or the Borrower shall cease to be subject to the reporting requirements
or obligations of the Exchange Act.

3.10.           
Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.

3.11.           
Cessation of Operations. Any cessation of operations by Borrower or Borrower admits it is otherwise generally unable
to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as
a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.

3.12.           
Maintenance of Assets. The failure by Borrower to maintain any material intellectual property rights, personal, real
property or other assets which are necessary to conduct its business (whether now or in the future).

3.13.          
 Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with the SEC for
any date or period from two years prior to the Issue Date of this Note and until this Note is no longer outstanding, if the result
of such restatement would, by comparison to the unrestated financial statement, have constituted a material adverse effect on the
rights of the Holder with respect to this Note.

3.14.          
 Reverse Splits. The Borrower effectuates a reverse split of its Common Stock without twenty (20) days prior written
notice to the Holder.

3.15.           
Reserve Increase and Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer
agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent
Instructions (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount)
signed by the successor transfer agent to Borrower and the Borrower. Additionally, In the event that the Reserved Amount has been
depleted and Borrower Fails to cause the increase of the number of shares within 3 business days of written request of the reserve
being depleted.

3.16.          
Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion
documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements,
after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default
under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights
and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement
or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the
Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory
notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this
Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future
debt of Borrower to the Holder.

 

    	 		 

    	 

    

 

Upon
the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to
pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default
Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2
and 3.17, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION
OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO : (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon
the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure
to pay the principal hereof or interest thereon when due on this Note upon a Trading Market Prepayment Event pursuant to
Section 1.7 or upon acceleration), 3.3, 3.4, 3.6, 3.8, 3.9, 3.11, 3.12, 3.13, 3.14, and/or 3. 15 exercisable through the
delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event
of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest
thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable
and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the greater
of (i) 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest
on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y)
Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant
to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the
amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Sum”) or the “parity
value” of the Default Sum to be prepaid, where parity value means (a) the highest number of shares of Common Stock issuable
upon conversion of or otherwise pursuant to such Default Sum in accordance with Article I, treating the Trading Day immediately
preceding the Mandatory Prepayment Date as the “Conversion Date” for purposes of determining the lowest applicable
Conversion Price, unless the Default Event arises as a result of a breach in respect of a specific Conversion Date in which case
such Conversion Date shall be the Conversion Date), multiplied by (b) the highest Closing Price for the Common Stock during
the period beginning on the date of first occurrence of the Event of Default and ending one day prior to the Mandatory Prepayment
Date (the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without
demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation,
legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at
law or in equity If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount
is due and payable, then the default amount shall be added to the principal balance of the note and the Holder shall have the right
at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares),
to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common
Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. Upon an Event of Default, interest
shall be accrue at a default interest rate of 24% per annum or, if such rate is usurious or not permitted by current law, then
at the highest rate of interest permitted by law.

3.17             Conversion
Price If the value of the Common Stock is below $0.001 per share upon exercise by the Holder of the conversion rights of the
Holder in accordance with the terms of this Note,

    	 		 

    	 

    

 

ARTICLE IV. REPRESENTATIONS OF HOLDER

4.1               Representations
of Holder. Holder hereby represents and warrants to the Company that: 

 

a.                   Holder
is an “accredited investor,” as such term is defined in Regulation D of the Securities Act of 1933, as amended (the
“1933 Act”), and will acquire this Note and the shares of Common Stock issuable upon conversion hereof (collectively,
the “Securities”) for its own account and not with a view to a sale or distribution thereof as that term is used in
Section 2(a)(11) of the 1933 Act, in a manner which would require registration under the 1933 Act or any state securities laws.
Holder has such knowledge and experience in financial and business matters that such Holder is capable of evaluating the merits
and risks of the Securities. Holder can bear the economic risk of the Securities, has knowledge and experience in financial business
matters and is capable of bearing and managing the risk of investment in the Securities. Holder recognizes that the Securities
have not been registered under the 1933 Act, nor under the securities laws of any state and, therefore, cannot be resold unless
the resale of the Securities is registered under the 1933 Act or unless an exemption from registration is available. Holder has
carefully considered and has, to the extent Holder believes such discussion necessary, discussed with its professional, legal,
tax and financial advisors, the suitability of an investment in the Securities for its particular tax and financial situation
and its advisers, if such advisors were deemed necessary, and has determined that the Securities are a suitable investment for
it. Holder has not been offered the Securities by any form of general solicitation or advertising, including, but not limited
to, advertisements, articles, notices or other communications published in any newspaper, magazine, or other similar media or
television or radio broadcast or any seminar or meeting where, to Holders’ knowledge, those individuals that have attended
have been invited by any such or similar means of general solicitation or advertising. Holder has had an opportunity to ask questions
of and receive satisfactory answers from the Company, or any person or persons acting on behalf of the Company, concerning the
terms and conditions of the Securities and the Company, and all such questions have been answered to the full satisfaction of
Holder. The Company has not supplied Holder any information regarding the Securities or an investment in the Securities other
than as contained in this Note, and Holder is relying on its own investigation and evaluation of the Company and the Securities
and not on any other information.

 

b.                  
The Holder is a corporation duly organized, validly existing and in good standing under the laws of the state of its
incorporation and has all requisite corporate power and authority to carry on its business as now conducted. The Holder is
duly qualified to transact business and is in good standing in each jurisdiction in which the failure to so qualify would
have a material adverse effect on its business or properties.

c.                   All
corporate action has been taken on the part of the Holder, its officers, directors and stockholders necessary for the
authorization, execution and delivery of this Note. The Holder has taken all corporate action required to make all of
the obligations of the Holder reflected in the provisions of this Agreement, valid and enforceable obligations.

d.                   Each certificate or instrument representing Securities will be endorsed with the following legend (or a substantially
similar legend), unless or until registered under the 1933 Act:

THE SECURITIES EVIDENCED BY
THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED
OR HYPOTHECATED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE TRANSFER IS MADE
IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER SUCH ACT OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF THESE SECURITIES
WHICH IS REASONABLY SATISFACTORY TO THE COMPANY, STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

e.                   Holder, its successors and assigns, agree that so long as the Note remains outstanding, the Holder shall not enter
into or effect “short sales” of the Common Stock or hedging transaction which establishes a short position with respect
to the Common Stock of the Company. The Company acknowledges and agrees that upon delivery of a Conversion Notice by the Holder,
the Holder immediately owns the shares of Common Stock described in the Conversion Notice and any sale of those shares issuable
under such Conversion Notice would not be considered short sales.

    	 		 

    	 

    

 

ARTICLE V. MISCELLANEOUS

5.1.           
  Failure or Indulgence Not Waiver. No failure or delay on the part of the
Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges.
All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

5.2              Notices.
All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing
and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return
receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or transmitted by hand
delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most
recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective
(a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at
the address or number designated below (if delivered on a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other than on a business day during normal business
hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier
service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications shall be: If to the Borrower, to: HYDROCARB ENERGY CORPORATION, 800 Gessner Suite 375
Houston, TX 77024 Email: If to the Holder:  Darling Capital, LLC, 767 3rd Avenue, Suite 25-1A, New York, NY 10017. Email:
 Yehuda@darlingcapital.net

 

5.3.             
Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower
and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument
as originally executed, or if later amended or supplemented, then as so amended or supplemented.

5.4.             
Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be
the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor”
(as defined in Rule 501(a) of the 1933 Act). Notwithstanding anything in this Note to the contrary, this Note may be pledged as
collateral in connection with a bona fide margin account or other lending arrangement.

5.5.             
Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs
of collection, including reasonable attorneys’ fees.

5.6.             
Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of New York
without regard to conflicts of laws principles that would result in the application of the substantive laws of another jurisdiction.
Any action brought by either party against the other concerning the transactions contemplated by this Agreement must be brought
only in the civil or state courts of New York or in the federal courts located in the State and county of New York. Both parties
and the individual signing this Agreement on behalf of the Borrower agree to submit to the jurisdiction of such courts. The prevailing
party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision
of this Note is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative
to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other
provision of this Note. Nothing contained herein shall be deemed or operate to preclude the Holder from bringing suit or taking
other legal action against the Borrower in any other jurisdiction to collect on the Borrower’s obligations to Holder, to
realize on any collateral or any other security for such obligations, or to enforce a judgment or other decision in favor of the
Holder. This Note shall be deemed an unconditional obligation of Borrower for the payment of money and, without limitation to
any other remedies of Holder, may be enforced against Borrower by summary proceeding pursuant to New York Civil Procedure Law and
Rules Section 3213 or any similar rule or statute in the jurisdiction where enforcement is sought. For purposes of such rule or
statute, any other document or agreement to which Holder and Borrower are parties or which Borrower delivered to Holder, which
may be convenient or necessary to determine Holder’s rights hereunder or Borrower’s obligations to Holder are deemed
a part of this Note, whether or not such other document or agreement was delivered together herewith or was executed apart from
this Note.

 

    	 		 

    	 

    

 

5.7.             
Certain Amounts. Whenever pursuant to this Note the Borrower is required to pay an amount in excess of the outstanding
principal amount (or the portion thereof required to be paid at that time) plus accrued and unpaid interest plus Default Interest
on such interest, the Borrower and the Holder agree that the actual damages to the Holder from the receipt of cash payment on this
Note may be difficult to determine and the amount to be so paid by the Borrower represents stipulated damages and not a penalty
and is intended to compensate the Holder in part for loss of the opportunity to convert this Note and to earn a return from the
sale of shares of Common Stock acquired upon conversion of this Note at a price in excess of the price paid for such shares pursuant
to this Note. The Borrower and the Holder hereby agree that such amount of stipulated damages is not plainly disproportionate to
the possible loss to the Holder from the receipt of a cash payment without the opportunity to convert this Note into shares of
Common Stock.

5.8.             
Disclosure. Upon receipt or delivery by the Borrower of any notice in accordance with the terms of this Note, unless
the Borrower has in good faith determined that the matters relating to such notice do not constitute material, non-public information
relating to the Borrower or any of its Subsidiaries, the Borrower shall within one (1) Trading Day after any such receipt or delivery,
publicly disclose such material, non-public information on a Current Report on Form 8-K or otherwise. In the event that the Borrower
believes that a notice contains material, non- public information relating to the Borrower or any of its Subsidiaries, the Borrower
so shall indicate to such Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the
Holder shall be allowed to presume that all matters relating to such notice do not constitute material, non-public information
relating to the Borrower or its Subsidiaries.

5.9.             
Notice of Corporate Events. Except as otherwise provided below, the Holder of this Note shall have no rights as a
Holder of Common Stock unless and only to the extent that it converts this Note into Common Stock. The Borrower shall provide the
Holder with prior notification of any meeting of the Borrower’s shareholders (and copies of proxy materials and other information
sent to shareholders). In the event of any taking by the Borrower of a record of its shareholders for the purpose of determining
shareholders who are entitled to receive payment of any dividend or other distribution, any right to subscribe for, purchase or
otherwise acquire (including by way of merger, consolidation, reclassification or recapitalization) any share of any class or any
other securities or property, or to receive any other right, or for the purpose of determining shareholders who are entitled to
vote in connection with any proposed sale, lease or conveyance of all or substantially all of the assets of the Borrower or any
proposed liquidation, dissolution or winding up of the Borrower, the Borrower shall mail a notice to the Holder, at least twenty
(20) days prior to the record date specified therein (or thirty (30) days prior to the consummation of the transaction or event,
whichever is earlier), of the date on which any such record is to be taken for the purpose of such dividend, distribution, right
or other event, and a brief statement regarding the amount and character of such dividend, distribution, right or other event to
the extent known at such time. The Borrower shall make a public announcement of any event requiring notification to the Holder
hereunder substantially simultaneously with the notification to the Holder in accordance with the terms of this Section 5.9.

5.10.          
 Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm
to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges
that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach
or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other
available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining,
preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity
of showing economic loss and without any bond or other security being required.

5.11.          
 Other Noteholders. The note herein is pursuant to the agreement in which JMJ Financial shall have their convertible
note(s) from Hydrocarb Energy Corporation paid off in full in a cash payment and retired, and shall be unable to convert any portion
of their note(s). In the event that these terms are not met, this note shall bear interest of twenty two percent (22%) per annum
beginning on the date of commencement of this note.

 

    	 		 

    	 

    

IN WITNESS WHEREOF, Borrower
has caused this Note to be signed in its name by its duly authorized officer this day of November 12, 2015. 

	 	HYDROCARB ENERGY CORPORATION,
	 	 
	 	By: 	/s/ Kent Patrick Watts
	 	Name:

        Title:
	Kent Patrick Watts
CEO.

 

 

 

    	 		 

    	 

    

EXHIBIT A

 

NOTICE OF CONVERSION

 

 

TO:  HYDROCARB ENERGY CORPORATION,

 

VIA EMAIL Attn: CFO or President

 

The undersigned
hereby irrevocably elects to exercise the right, represented by the PROMISSORY NOTE dated as of November 12, 2015 issued by HYDROCARB
ENERGY CORPORATION, (the “Note”) to convert $105 principal plus accrued interest equal to $ into ______________ shares
(“Conversion Shares”) of the Common Stock, $0.001 par lue (“Common Stock”).

 

 

 

Dated:

Holder’s Signature:

 

_______________________

By: Yehuda Marrus, Director

 

 

Holder’s Address:

Darling Capital, LLC

767 3rd Avenue, 25th Floor

New York, NY 10017 

Please send shares to:

TBD

    	 		 

    	 

    

 

DISBURSEMENT
AUTHORIZATION

(MEMORANDUM)

 

 

TO: DARLING CAPITAL, LLC

FROM: HYDROCARB ENERGY CORP. DATE:
November 12, 2015

RE: Disbursement of Funds

 

 

In
connection with the funding of an aggregate of $200,000.00 pursuant to that certain 8% SHORT TERM CASH REDEEMABLE NOTE dated as
of November 12, 2015 (the “Agreement”), you are hereby directed to disburse such funds as follows:

	 	1.	$14,000.00 to Anubis Capital Partners for 3rd  party due diligence fees in accordance with the wire transfer instructions attached as Schedule A, hereto; and

	 	2.	$186,000.00 to Hydrocarb Energy Corp. in accordance with the wire transfer instructions attached as Schedule B, hereto;

 

  

	 	 	 
	 	 	Name: Kent Patrick Watts
	 	 	Title: CEO

    	 		 

    	 

    

 

 

EXHIBIT A

ANUBIS CAPITAL
PARTNERS WIRING INFO

 

 

Independent Bank

654 North Denton Tap Rd.

Coppell, TX 75019

 

 

	Routing No:	#########
	Acct No.:	##########
	 	 
	Beneficiary:	Anubis Capital Partners

2550 Midway Road Suite 198

	 	Carrolton, TX 75006

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