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  Exhibit 10.8

 

GUARANTY AGREEMENT

 

FOR VALUE RECEIVED, this 26th day of February,
2019, and to induce BANKUNITED,
N.A., a national banking association ("Lender"),
whose address is 7815 NW 148th Street, Miami
Lakes, Florida 33016, to make loans or advances or to extend credit
or other financial accommodations or benefits, with or without
security, to or for the account of LIGHTPATH TECHNOLOGIES, INC., a Delaware
corporation (the "Borrower"),
each of the undersigned guarantors (collectively "Guarantor"),
whose address is 2603 Challenger Tech Court, Suite 100, Orlando,
Florida 32826, hereby irrevocably guarantees, to Lender the full
and prompt payment when due, whether by acceleration or otherwise,
of any of the Guaranteed Obligations (as hereinafter
defined).

 

1. The term
"Indebtedness" as used herein shall mean all obligations,
indebtedness and liabilities of Borrower to Lender evidenced by (i)
that certain Guidance Line Note (the "Note") of
even date herewith executed by Borrower and payable to the order of
Lender in the principal amount of Ten Million and No/100 Dollars
($10,000,000.00), and (ii) the other Loan Documents (as defined in
the Note).

 

2. The term
“Guaranteed
Obligations” shall mean (i) the Indebtedness; (ii) all
direct and actual loss, damage, cost and expense (including
reasonable attorneys' fees) suffered by Lender as a result of
Borrower's fraud, misrepresentation or gross negligence, or failure
to maintain insurance upon the real property that is collateral for
the Indebtedness (the “Property”),
to the extent of available cash flow from operations after payment
of operating expenses of the Property, provided that Borrower pays
the insurance premiums for the Property prior to the payment of any
other operating expenses; (iii) all income, revenues, rents,
royalties, issues and profits from the Property (A) received during
the period following an uncured Event
of Default under the Loan Documents or after the maturity of
the Note (whether by acceleration or otherwise) which are applied
in contravention of the Loan Documents, and (B) not applied to the
payment of the sums due under the Loan or to the payment of the
operating expenses of the Property (excluding any management fees
or any payments to Borrower or to any affiliate of Borrower); (iv)
all insurance proceeds and condemnation awards with respect to the
Property which are not applied in accordance with the provisions of
the Loan Documents; and (v) the obligations set forth in Section 11
hereof.

 

3. This instrument is
an absolute, continuing and irrevocable guaranty of payment and
performance, and not a guaranty of collection, and, subject to the
provisions of Section 2 above, Guarantor shall remain liable on its
Guaranteed Obligations hereunder until the payment and performance
in full of the Guaranteed Obligations. No set off, counterclaim,
recoupment, reduction, or diminution of any obligation, or any
defense of any kind or nature which Borrower may have against
Lender or any other party, or which Guarantor may have against
Borrower, Lender, or any other party, shall be available to, or
shall be asserted by, Guarantor against Lender or any subsequent
beneficiary of this Guaranty Agreement or any portion of the
Guaranteed Obligations.

 

4. Upon an Event of
Default by Borrower in payment or performance of the Guaranteed
Obligations, or any part thereof, when such Guaranteed Obligations
are due to be paid or performed by Borrower, Guarantor shall
promptly pay or perform the Guaranteed Obligations then due in full
without notice or demand, and it shall not be necessary for Lender,
in order to enforce such payment by Guarantor, first to institute
suit or exhaust its remedies against Borrower or others, or to
enforce any rights against any collateral which shall ever have
been given to secure such Indebtedness. Without limiting any other
provisions of this Guaranty, Guarantor acknowledges and agrees
that, to the extent Lender realizes any proceeds under any
documents which secure the Indebtedness (including, without
limitation, voluntary payments, insurance or condemnation proceeds
or proceeds from the sale at foreclosure of any collateral securing
the Indebtedness), such proceeds shall, to the extent permitted by
law, not be applied to or credited against the Guaranteed
Obligations. FURTHER,
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS GUARANTY
AGREEMENT, GUARANTOR HEREBY IRREVOCABLY AGREES THAT, UNTIL PAYMENT
IN FULL TO LENDER OF THE INDEBTEDNESS AND THE GUARANTEED
OBLIGATIONS, GUARANTOR SHALL HAVE NO RIGHT TO RECOVER FROM BORROWER
ANY CLAIMS GUARANTOR HAS OR MIGHT HAVE AGAINST BORROWER (AS SUCH
TERM "CLAIM" IS DEFINED IN THE UNITED STATES BANKRUPTCY CODE 11
U.S.C. §101[5] AS AMENDED FROM TIME TO TIME) IN CONNECTION
WITH PAYMENTS MADE BY OR ON BEHALF OF GUARANTOR TO LENDER UNDER
THIS GUARANTY AGREEMENT INCLUDING, WITHOUT IMPLIED LIMITATION, ALL
RIGHTS GUARANTOR MAY NOW OR HEREAFTER HAVE UNDER ANY AGREEMENT OR
AT LAW OR IN EQUITY (INCLUDING, WITHOUT LIMITATION, ANY LAW
SUBROGATING GUARANTOR TO THE RIGHTS OF LENDER) TO ASSERT ANY CLAIM
AGAINST OR SEEK CONTRIBUTION, INDEMNIFICATION OR ANY OTHER FORM OF
REIMBURSEMENT FROM BORROWER OR ANY OTHER PARTY LIABLE FOR PAYMENT
OF ANY OR ALL OF THE INDEBTEDNESS.

 

5. If acceleration of
the time for payment by Borrower of all or any portion of the
Indebtedness is stayed upon the insolvency, bankruptcy, or
reorganization of Borrower, the Guaranteed Obligations shall
nonetheless be payable by Guarantor hereunder forthwith on demand
by Lender.

 

 

1

 

 

6. Guarantor hereby
agrees that its obligations under this Guaranty shall not be
released, discharged, diminished, impaired, reduced, or affected
for any reason or by the occurrence of any event other than payment
and performance of the Guaranteed Obligations (if required or
applicable hereunder) in full, including, without limitation, one
or more of the following events, whether or not with notice to or
the consent of Guarantor: (a) the taking or accepting of collateral
as security for any or all of the Indebtedness or the release,
surrender, exchange, or subordination of any collateral now or
hereafter securing any or all of the Indebtedness; (b) the full or
partial release of Borrower or any other guarantor from liability
for any or all of the Indebtedness or the Guaranteed Obligations;
(c) the dissolution, insolvency, or bankruptcy of Borrower,
Guarantor, or any other party at any time liable for the payment of
any or all of the Indebtedness; (d) any renewal, extension,
modification, waiver, amendment, or rearrangement of any or all of
the Indebtedness or any instrument, document, or agreement
evidencing, securing, or otherwise relating to any or all of the
Guaranteed Obligations; (e) any adjustment, indulgence,
forbearance, waiver, or compromise that may be granted or given by
Lender to Borrower or any other party ever liable for any or all of
the Indebtedness; (f) any neglect, delay, omission, failure, or
refusal of Lender to take or prosecute any action for the
collection of any of the Guaranteed Obligations from Borrower or
Guarantor or to foreclose or take or prosecute any action in
connection with any instrument, document, or agreement evidencing,
securing, or otherwise relating to any or all of the Indebtedness
or any or all of the Guaranteed Obligations; (g) the
unenforceability or invalidity of any or all of the Indebtedness or
the Guaranteed Obligations or any instrument, document, or
agreement evidencing, securing, or otherwise relating to any or all
of the Indebtedness or the Guaranteed Obligations; (h) any payment
by Borrower or any other party to Lender is held to constitute a
preference under applicable bankruptcy or insolvency law or if for
any other reason Lender is required to refund any payment or pay
the amount thereof to someone else; (i) the settlement or
compromise of any of the Indebtedness or the Guaranteed
Obligations; (j) the non-perfection of any security interest or
lien securing any or all of the Indebtedness; (k) any impairment of
any collateral securing any or all of the Indebtedness; (l) the
failure of Lender to sell any collateral securing any or all of the
Indebtedness in a commercially reasonable manner or as otherwise
required by law; (m) any change in the corporate existence,
structure, or ownership of Borrower; (n) the application against
the Indebtedness of the proceeds realized by Lender under any
documents which secure the Indebtedness (including, without
limitation, voluntary payments, insurance or condemnation proceeds
or proceeds from the sale at foreclosure of any collateral securing
the Indebtedness), except as provided in Section 5 of this Guaranty
Agreement.

 

7. Any and all rights
and claims of Guarantor against Borrower or any of its property,
whether through subrogation to the rights of Lender hereunder or
otherwise, shall be subordinate and subject in right of payment to
the prior payment in full of the Indebtedness. Guarantor shall not
demand or accept any payment from Borrower, shall not claim any
offset against Guarantor's obligations to Lender under this
Guaranty because of any indebtedness of Borrower to Guarantor, and
shall not take any action to obtain the benefit of any of the
collateral for the Indebtedness; provided, however, that, if Lender
so requests, Guarantor shall collect, enforce, and receive payments
on the Indebtedness to Guarantor as trustee for Lender and pay all
such payments to Lender on account of the indebtedness of Borrower
to Lender, but without reducing or affecting in any manner
Guarantor's liability under this Guaranty.

 

8. Any
acknowledgement, new promise, payment of principal or interest, or
otherwise, whether by Borrower or others (including Guarantor),
with respect to any of the Guaranteed Obligations shall, if the
statute of limitations in favor of Guarantor against Lender shall
have commenced to run, toll the running of such statute of
limitations and, if the period of such statute of limitations shall
have expired, prevent the operation of such statute of
limitations.

 

9. Lender shall not be
bound to take any steps necessary to preserve any rights in any of
the property of Guarantor against prior parties who may be liable
in connection therewith, and Guarantor hereby agrees to take any
such steps. Lender may nevertheless at any time (a) take any
action it may deem appropriate for the care or preservation of such
property or of any rights of Guarantor or Lender therein,
(b) demand, sue for, collect or receive any money or property
at any time due, payable, or receivable on account of or in
exchange for any property of Guarantor, (c) compromise and
settle with any person liable on such property, or (d) extend
the time of payment or otherwise change the terms thereof as to any
party liable thereon, all without notice to, without incurring
responsibility to, and without affecting any of the obligations of
Guarantor.

 

10. Notwithstanding
anything contained herein to the contrary, if the payment of any
amount due under this Guaranty will violate any applicable usury
statute or any other applicable law, the amount due shall be
reduced to the maximum amount permitted by law. In no event shall
Guarantor be required to pay an amount in excess of the amount
permitted under applicable law at the time the payment is
due.

 

11. Upon the
occurrence, and during the continuance, of an Event of Default
under the Loan Documents and the commencement of an enforcement
action by Lender against Borrower, in the event that Borrower or
Guarantor shall not reasonably cooperate with Lender in the
exercise of its remedies, Guarantor shall pay or reimburse Lender
for all of its direct and actual out-of-pocket costs and expenses
incurred in connection with the Loan Documents, collection, or
enforcement of, or the preservation of any rights under, this
Guaranty or any of the Guaranteed Obligations, including without
limitation, the reasonable fees and disbursements of counsel for
Lender, including attorneys' fees out of court, in trial, on
appeal, in bankruptcy proceedings, or otherwise.

 

12. Unless otherwise
expressly agreed herein, all notices, requests, and demands to or
upon the parties to this Guaranty shall be deemed to have been
given or made upon receipt or refusal of service. Delivery of
notices, requests or demands may be made by hand or by courier
service, nationally recognized overnight delivery service or U.S.
registered or certified mail, postage prepaid, return receipt
requested. All such notices, requests and demands shall be
addressed as shown in the preamble to this Guaranty or such other
address as may be hereafter designated in writing by one party to
the other.

 

 

2

 

 

13. Miscellaneous.

 

(a) This Guaranty shall
be governed by and construed and interpreted in accordance with,
the laws of Florida, excluding those laws relating to the
resolution of conflicts between laws of different
jurisdictions.

 

(b) In any litigation
in connection with or to enforce this Guaranty, Guarantor (and
Lender by its acceptance hereof) irrevocably consents to and
confers personal jurisdiction on the courts of the State of Florida
or the United States courts located within the State of Florida,
expressly waives any objections as to venue in any of such
courts.

 

(c) In the event that
any one or more of the provisions of this Guaranty is determined to
be invalid, illegal, or unenforceable in any respect as to one or
more of the parties, all remaining provisions nevertheless shall
remain effective and binding on the parties thereto and the
validity, legality, and enforceability thereof shall not be
affected or impaired thereby. If any such provision is held to be
illegal, invalid, or unenforceable, there will be deemed added in
lieu thereof a provision as similar in terms to such provision as
is possible, that is legal, valid, and enforceable. To the extent
permitted by applicable law, Guarantor hereby waives any law that
renders any such provision invalid, illegal, or unenforceable in
any respect.

 

(d) The singular shall
include the plural, the plural shall include the singular, and any
gender shall be applicable to all genders when the context permits
or implies. If more than one party constitutes Guarantor, their
obligations hereunder shall be joint and several and the term
"Guarantor" as used herein shall mean Guarantor or any one or more
of them.

 

(e) Any party executing
this Guaranty shall be bound by the terms hereof without regard to
execution by any other party and the failure of any party to
execute this Guaranty shall not release or otherwise affect the
obligations of the party or parties who do sign this
Guaranty.

 

(f) This Guaranty may
be signed in original counterparts and by facsimile or other
electronic transmission of signed counterparts, each of which shall
be deemed an original, in any number, no one of which need contain
all of the signatures of the parties. As many of such counterparts
as shall together contain all of the signatures of the parties
shall be deemed to constitute one and the same
instrument.

 

(g) No delay or
omission by Lender in exercising any right or remedy under this
Guaranty or otherwise afforded by law or equity shall operate as a
waiver of that right or remedy or of any other right or remedy and
no single or partial exercise of any right or remedy shall preclude
any other or further exercise of that or any other right or
remedy.

 

(h) All rights and
remedies of Lender hereunder and under any other loan documents are
cumulative and are not exclusive of any rights or remedies provided
by law or in equity, and may be pursued singularly, successively,
or together, and may be exercised as often as the occasion therefor
shall arise. The warranties, representations, covenants, and
agreements made herein and therein shall be cumulative

 

(i) This Guaranty may
not be modified or amended nor shall any provision of it be waived
except by a written instrument signed by the party against whom
such action is to be enforced.

 

(j) The headings
preceding the text of sections of this Guaranty have been included
solely for convenience of reference and shall neither constitute a
part of this Guaranty nor affect its meaning, interpretation, or
effect.

 

(k) This Guaranty shall
be binding upon and inure to the benefit of Lender, its successors
and assigns, and shall be binding upon Guarantor and its respective
heirs, legal representatives, successors, and assigns; provided,
however, that no rights or obligations of Guarantor hereunder shall
be assigned without the prior written consent of
Lender.

 

(l) Time is of the
essence in the performance of this Guaranty and the
Liabilities.

 

 

3

 

 

(m) WAIVER OF JURY TRIAL. LENDER AND
GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE
RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH THIS GUARANTY AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.
THIS PROVISION IS A MATERIAL INDUCEMENT FOR LENDER TO ACCEPT THIS
GUARANTY.

 

(n) The provisions of
Section 11 of the Loan Agreement are hereby fully incorporated by
reference herein to the same extent and with the same force as is
fully set forth herein. Guarantor’s liability shall be
limited to the Guaranteed Obligations and in no event shall
Guarantor be liable for the full amount of the Indebtedness, upon
the occurrence of an Event of Default and the acceleration of the
Loan by Lender, except to the extent provided in Section 2(b) of
this Guaranty, or for the payment of any deficiency judgment in
connection with an enforcement action by Lender against
Borrower.

 

IN WITNESS WHEREOF, Guarantor has
executed this Guaranty to be effective as of the date and year
first written above.

 

 

	

WITNESSES:

 

 

/s/ Carol I. McEwen

/s/ Maxine Nugent

	

GELTECH INC., a Delaware corporation

 

 

By: /s/
J. James Gaynor

J.
James Gaynor, President

 

	

WITNESSES:

 

 

/s/ Carol I. McEwen

/s/ Maxine Nugent

	

ISP OPTICS CORPORATION, a New York corporation

 

 

By: /s/
J. James Gaynor

J.
James Gaynor, President

 

	

WITNESSES:

 

 

/s/ Carol I. McEwen

/s/ Maxine Nugent

	

LIGHTPATH OPTICAL INSTRUMENTATION (SHANGHAI) CO., LTD., a
company formed under the law of the People’s Republic of
China

 

 

By: /s/
J. James Gaynor

 

 

 

4

 

 

	

WITNESSES:

 

 

/s/ Carol I. McEwen

/s/ Maxine Nugent

	

LIGHTPATH OPTICAL INSTRUMENTATION (ZHENJIANG) CO., LTD., a
company formed under the law of the People’s Republic of
China

 

 

By: /s/
J. James Gaynor

 

 

	

WITNESSES:

 

 

/s/ Carol I. McEwen

/s/ Maxine Nugent

	

ISP OPTICS LATVIA, SIA, a company formed under the law of
the Republic of Latvia

 

 

By: /s/
J. James Gaynor

 

 

 

 

 

5Exhibit

Exhibit 10.1

THIRD AMENDMENT TO  
LOAN AND SECURITY AGREEMENT
THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 27th day of February, 2019, by and between SILICON VALLEY BANK, a California corporation (“Bank”), and CALIX, INC., a Delaware corporation (“Borrower”).
RECITALS
A.Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 7, 2017 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank make certain revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.
2.    Amendment Fee.  On the date hereof, Borrower hereby agrees to pay to Bank, a fully earned, non-refundable, amendment fee of Twenty-Five Thousand Dollars ($25,000).
3.    Amendments to Loan Agreement.
3.1    Section 6.9 (Financial Covenants).  Section 6.9 of the Loan Agreement is hereby deleted in its entirety and replaced with the following:
     6.9    Financial Covenants. Maintain at all times as provided herein on a consolidated basis with respect to Borrower:
     (a)    Adjusted Quick Ratio.  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted Quick Ratio as set forth below:

	
		
	Fiscal Quarter Ending
	Adjusted Quick Ratio

	March 31, 2019
	At least 0.75:1.00

	June 30, 2019
	At least 0.80:1.00

	September 30, 2019 and each fiscal quarter thereafter
	At least 1.00:1.00

(b)    Adjusted EBITDA. Tested as of the last day of each fiscal quarter of Borrower, an Adjusted EBITDA of not less than (or with respect to losses, Adjusted EBITDA losses of not greater than) the following amounts at the following times:
	
		
	Fiscal Quarter Ending
	Adjusted EBITDA

	March 31, 2019
	($5,000,000)

	June 30, 2019 and each fiscal quarter thereafter
	$1.00

3.2    Compliance Certificate.  Exhibit B of the Loan Agreement is hereby replaced in its entirety with Exhibit B attached hereto.  From and after the date hereof, all references in the Loan Agreement to the Compliance Certificate shall be deemed to refer to Exhibit B attached hereto.
4.    Limitation of Amendment.
4.1    The amendments set forth in Section 3, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (1) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (1) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.
4.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.
4.3    In addition to those Events of Default specifically enumerated in the Loan Documents, the failure to comply with the terms of any covenant or agreement contained herein shall constitute an Event of Default and shall entitle Bank to exercise all rights and remedies provided to Bank under the terms of any of the other Loan Documents as a result of the occurrence of the same.

2

5.    Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:
5.1    Immediately after giving effect to this Amendment (1) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (1) no Event of Default has occurred and is continuing;
5.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
5.3    The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
5.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
5.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (1) any material law or regulation binding on or affecting Borrower, (1) any contractual restriction with a Person binding on Borrower in any material respects, (1) in any material respects, any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (1) the organizational documents of Borrower; 
5.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and
5.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
6.    Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

3

7.    Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
8.    Effectiveness.  This Amendment shall be deemed effective upon the due execution and delivery to Bank of this Amendment by each party hereto.
[Signature page follows.]

4

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.
BORROWER:
CALIX, INC.
By:  /s/ Cory Sindelar      
Cory Sindelar, Chief Financial Officer 

BANK:
SILICON VALLEY BANK
By:  /s/ Janice Ahn
Janice Ahn, Director

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

	 

	Reporting Covenants
	Required
	Complies

	 
	 
	 

	Monthly financial statements with  
Compliance Certificate
	Monthly within 30 days
	Yes   No

	Annual financial statements (CPA Audited)
	Earlier of 120 days of FYE, or 10-K filing date
	Yes   No

	Quarterly financial statements
	Earlier of 90 days of FQE, or 10-Q filing date
	Yes   No

	10-Q, 10-K and 8-K
	Within 5 days after filing with SEC
	Yes   No

	A/R & A/P Agings
	Monthly within 30 days
	Yes   No

	Deferred Revenue Report
	Monthly within 30 days
	Yes   No

	Detailed Debtor Listing
	Monthly within 30 days
	Yes   No

	Borrowing Base Reports
	If Streamline Period in effect, monthly within 7 days; if Streamline Period not in effect, Friday of each week
	Yes   No

	Board approved projections
	Within later of 60 days of Board approval or FYE, and as within 10 days of any amendment/update
	Yes   No

	 

	

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

	
				
	Financial Covenants
	Required
	Actual
	Complies

	 
	 
	 
	 

	Maintain as indicated:
	 
	 
	 

	Adjusted Quick Ratio (tested quarterly)
	See attached schedule
	See attached schedule
	Yes   No

	Adjusted EBITDA (tested quarterly)
	See attached schedule
	See attached schedule
	Yes   No

	
			
	Performance Pricing
	 

	 
	 
	 

	 
	Interest Rate
	Applies

	AQR > 1.50
	LIBOR + 2.00% or Prime + 0.50%
	Yes   No

	AQR > 1.25 and < 1.50 
	LIBOR + 2.50% or Prime + 1.00
	Yes   No

	AQR < 1.25
	LIBOR + 3.00% or Prime + 1.50%
	Yes   No

	
			
	 
	Unused Line Fee
	Applies

	AQR > 1.25
	0.25%
	Yes   No

	AQR < 1.25
	0.375%
	Yes   No

	
			
	Streamline Period
	Applies

	 
	 
	 

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

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

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.
The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Attached are copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries.

	
		
	CALIX, INC.

By:   
Name:   
Title:   
	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.    Adjusted Quick Ratio (Section 6.9(a))
Required:  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted Quick Ratio as set forth below:

	
		
	Fiscal Quarter Ending
	Adjusted Quick Ratio

	March 31, 2019
	At least 0.75:1.00

	June 30, 2019
	At least 0.80:1.00

	September 30, 2019 and each fiscal quarter thereafter
	At least 1.00:1.00

Actual:
	
			
	A.
	Aggregate value of the unrestricted and unencumbered cash and Cash Equivalents of Borrower at Bank and Bank’s Affiliates, or held in accounts subject to Control Agreements as permitted under the Agreement
	$   

	B.
	Aggregate value of net billed accounts receivable of Borrower
	$   

	C.
	Quick Assets (the sum of lines A and B)
	$   

	D.
	Aggregate value of liabilities of Borrower on its consolidated balance sheet including all Indebtedness and current portion of Subordinated Debt permitted by Bank to be paid by Borrower (but excluding (i) all other Subordinated Debt, (ii) Obligations to Bank, and (iii) any Indebtedness that is cash secured or is otherwise collateralized pursuant to terms acceptable to Bank in its sole discretion), that matures within one (1) year
	$   

	E.
	Aggregate value of Obligations to Bank
	$   

	F.
	The sum of lines D and E
	$   

	G.
	Aggregate value of the current portion of all amounts received or invoiced by Borrower in advance of performance under contracts and not yet recognized as revenue
	

$   

	H.
	Line F minus line G
	$______   

	I.
	Adjusted Quick Ratio (line C divided by line H)
	:1.00

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

II    Adjusted EBITDA (Section 6.9(b))

Required:  Tested as of the last day of each fiscal quarter of Borrower, an Adjusted EBITDA of not less than (or with respect to losses, Adjusted EBITDA losses of not greater than) the following amounts at the following times:

	
		
	Fiscal Quarter Ending
	Adjusted EBITDA

	March 31, 2019
	($5,000,000)

	June 30, 2019 and each fiscal quarter thereafter
	$1.00

Actual:

	
			
	A.
	Net Income of Borrower
	$_________

	B.
	To the extent included in the determination of Net Income
	 

	 
	1.   The provision for income taxes
	$_________

	 
	2.   Depreciation expense
	$_________

	 
	3.   Amortization expense
	$_________

	 
	4.   Interest Expense
	$_________

	C.
	EBITDA (line A plus lines B.1-B.4)
	$_________

	D.
	Non-cash stock compensation expense
	$_________

	E.
	Other non-cash items approved by Bank in writing on a case-by-case basis
	$_________

	F.
	One-time non-recurring restructuring expenses actually incurred by Borrower in the fiscal quarter ending March 31, 2018 not to exceed $3,000,000 in the aggregate
	$_________

	G.
	Adjusted EBITDA (line C plus lines D-F
	$_________

Is line G at least the amount required above?

  No, not in compliance                ___________ Yes, in compliance

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