Document:

EX-10.3

 Exhibit 10.3 

SEVENTH AMENDMENT TO CREDIT AGREEMENT 

This Seventh Amendment to Credit Agreement (this “Amendment”) is entered into as of December 3, 2013, by and between WELLS
FARGO BANK, NATIONAL ASSOCIATION (“Bank”), ENDOLOGIX, INC. and NELLIX, INC. (each a “Borrower” and, collectively, “Borrowers”). 

RECITALS 
 Borrowers and
Bank are parties to that certain Credit Agreement dated as of October 30, 2009, as amended from time to time, including by that certain First Amendment to Credit Agreement dated as of April 13, 2010, that certain Second Amendment to Credit
Agreement dated as of December 21, 2011, that certain Third Amendment to Credit Agreement dated as of February 21, 2012, that certain Fourth Amendment to Credit Agreement dated as of October 9, 2012, that certain Fifth Amendment to
Credit Agreement dated as of May 15, 2013 and that certain Sixth Amendment to Credit Agreement dated as of July 26, 2013 (the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

 NOW, THEREFORE, the parties agree as follows: 

1. Section 1.5 of the Agreement hereby is amended and restated in its entirety to read as follows: 

“SECTION 1.5 SUBORDINATION OF DEBT. All indebtedness and other obligations of Borrower to any other party other than any
Permitted Convertible Indebtedness (as defined below) shall be subordinated in right of repayment to all indebtedness and other obligations of Borrower to Bank, as evidenced by and subject to the terms of subordination agreements in form and
substance satisfactory to Bank” 
 2. Section 5.4 of the Agreement hereby is amended and restated in its entirety to read as
follows: 
 “SECTION 5.4 OTHER INDEBTEDNESS. Create, incur, assume or permit to exist any indebtedness or liabilities
resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except: 

(a) the liabilities of Borrower to Bank; 

(b) trade payables incurred in the ordinary course of business; 

(c) any other liabilities of Borrower existing as of, and disclosed to Bank prior to, the date hereof; 

(d) indebtedness (“Permitted Convertible Indebtedness”) of Existing Borrower pursuant to the Convertible Debt
Documents in an aggregate principal amount not to exceed One Hundred Million Dollars ($100,000,000) (including any amount issued pursuant to any option to purchase additional notes, including, without limitation, any such option granted to cover
over-allotments) that (i) is convertible into common stock of Existing Borrower and/or cash (in an amount determined by reference to the price of such common stock), (ii) matures after, and does not require any scheduled amortization or
other scheduled payments of principal prior to, the maturity date of the Line of Credit (it being understood that such indebtedness may have mandatory prepayment, repurchase or redemptions provisions satisfying the requirement of clause
(iii) hereof and may provide for cash payments upon conversion prior to the maturity date of such indebtedness provided that, for the avoidance of doubt, at the time of any such cash payment Existing Borrower shall be in compliance with the
covenants set forth in Section 4.9), (iii) has terms and conditions (other than interest rate and redemption premiums), taken as a whole, that are not materially less favorable to Existing Borrower than the terms and conditions customary
at the time for convertible debt securities issued in a broadly distributed offering and (iv) is incurred by Existing Borrower; provided, that both immediately prior and after giving effect to the incurrence

 
thereof, (x) no Event of Default shall exist or result therefrom and (y) Existing Borrower shall be in compliance with the covenants set forth in Section 4.9; provided, further,
that a certificate of the chief financial officer of Borrower delivered to Bank at least two Business Days prior to the incurrence of such indebtedness, together with a disclosure document containing the summary description of the material terms and
conditions of such indebtedness, stating that Existing Borrower has determined in good faith that such terms and conditions satisfy the requirements of this clause (d), shall be conclusive evidence that such terms and conditions satisfy the
foregoing requirement unless Bank notifies Existing Borrower within one Business Day of receipt of such certificate that it disagrees with such determination; and 

(e) any Permitted Bond Hedge Transaction and any Permitted Warrant Transaction. 

As used herein, “Business Day” means any day other than a Saturday, Sunday or other day on which commercial banks are
required or authorized to close under the laws of, or are in fact closed, in New York. 
 As used herein, “Convertible
Debt Documents” means (i) an indenture, (ii) a global note and (iii) one or more transaction confirmations, in each case relating to an offering of Permitted Convertible Indebtedness by Existing Borrower and related Permitted
Bond Hedge Transactions and Permitted Warrant Transactions entered into by Existing Borrower . 
 As used herein,
“Existing Borrower” means ENDOLOGIX, INC. 
 As used herein, “Permitted Bond Hedge Transaction” means any
call or capped call option (or substantively equivalent derivative transaction) on Existing Borrower’s common stock purchased by Existing Borrower in connection with the issuance of any Permitted Convertible Indebtedness; provided that the
purchase price for such Permitted Bond Hedge Transaction, less the proceeds received by Existing Borrower from the sale of any related Permitted Warrant Transaction, does not exceed the net proceeds received by Existing Borrower from the issuance of
such Permitted Convertible Indebtedness in connection with such Permitted Bond Hedge Transaction. 
 As used herein,
“Permitted Warrant Transaction” means any call option, warrant or right to purchase (or substantively equivalent derivative transaction) on Existing Borrower’s common stock sold by Existing Borrower substantially concurrently with any
purchase by Existing Borrower of a related Permitted Bond Hedge Transaction.” 
 3. Section 5.6 of the Agreement hereby is amended
and restated in its entirety to read as follows: 
 “SECTION 5.6 GUARANTIES. Guarantee or become liable in any way as
surety, endorser (other than as endorser of negotiable instruments for deposit or collection in the ordinary course of business), accommodation endorser or otherwise for, nor pledge or hypothecate any assets of Borrower as security for, any
liabilities or obligations of any other person or entity in excess of an aggregate amount of Five Hundred Thousand Euro (€500,000) during the term of this Agreement, except (a) any of the foregoing in favor of Bank and (b) any of
the foregoing in connection with any Permitted Convertible Indebtedness.” 
 4. Section 5.7 of the Agreement hereby is amended and
restated in its entirety to read as follows: 
 “SECTION 5.7 LOANS, ADVANCES, INVESTMENTS. Make any loans or advances to
or investments in any person or entity, except (a) any of the foregoing existing as of, and disclosed to Bank prior to, the date hereof and (b) pursuant to any Permitted Bond Hedge Transaction.” 

 5. Section 5.8 of the Agreement hereby is amended and restated in its entirety to read as
follows: 
 “SECTION 5.8 DIVIDENDS, DISTRIBUTIONS. Declare or pay any dividend or distribution either in cash, stock or
any other property on Borrower’s stock now or hereafter outstanding, nor redeem, retire, repurchase or otherwise acquire any shares of any class of Borrower’s stock now or hereafter outstanding except: 

(a) pursuant to any Permitted Bond Hedge Transaction; 

(b) Existing Borrower may make (i) regularly scheduled payments of interest in respect of any Permitted Convertible
Indebtedness and (ii) any required payments of principal in respect of any Permitted Convertible Indebtedness made in accordance with this Agreement; 

(c) Existing Borrower may make cash payments in connection with any conversions of Permitted Convertible Indebtedness; provided
that (1) both immediately prior and after giving effect to any such payment, (x) no Event of Default shall exist or result therefrom and (y) Borrower shall be in compliance with the covenants set forth in Section 4.9; and 

(d) Existing Borrower may purchase a Permitted Bond Hedge Transaction and can settle any related Permitted Warrant Transaction
by set-off against such related Permitted Bond Hedge Transaction (if such set-off is permitted under the terms thereof), by delivery of shares of its common stock and, subject to compliance with the proviso to paragraph (c) above, by payment of
the amounts due under the Permitted Warrant Transaction in cash, securities or other property.” 
 6. Section 6.1(g) of the
Agreement hereby is amended and restated in its entirety to read as follows: 
 “(g) There shall exist or occur any
event or condition that Bank in good faith believes materially impairs, or is substantially likely materially to impair, the prospect of payment or performance by Borrower, any Third Party Obligor, or the general partner of either if such entity is
a partnership, of its material obligations under any of the Loan Documents. For the avoidance of doubt, Borrower and Bank agree that Borrower’s entry into, performance of its obligations under and settlement (by early termination or otherwise)
of any Permitted Convertible Indebtedness, any Permitted Bond Hedge Transaction or any Permitted Warrant Transaction entered into in accordance with this Agreement will not materially impair such prospect of payment or performance.” 

7. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a
waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of
Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank. 

8. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall
not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. 

9. Borrower represents and warrants that the Representations and Warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing. 
 10. As a condition to the effectiveness of this Amendment,
Bank shall have received, in form and substance satisfactory to Bank: 
 (a) this Amendment, duly executed by Borrower; 

 (b) the certificate of the chief financial officer of Borrower contemplated by the proviso to
Section 5.4 of the Agreement, as amended by this Amendment; and 
 (c) all reasonable fees and expenses incurred through the date of
this Amendment, which may be debited from any of Borrower’s accounts. 
 11. Promptly (and in any event, within three Business Days)
following the closing of any offering of any Permitted Convertible Indebtedness and/or the entering into of any Permitted Bond Hedge Transaction or Permitted Warrant Transaction by Borrower, Borrower shall provide to Bank (i) executed copies of
the applicable Convertible Debt Documents and (ii) a certificate of the chief financial officer of Borrower stating that the Convertible Debt Documents are consistent in all material respects with the summary description delivered with the
certificate delivered pursuant to Section 10(b) hereof. 
 12. This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one instrument. 
 [Balance of Page
Intentionally Left Blank] 

 IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above
written. 
  

			
	ENDOLOGIX, INC.
		
	By:	 	 /s/ Shelley Thunen

	Title: Chief Financial Officer
	
	NELLIX, INC.
		
	By:	 	 /s/ Shelley Thunen

	Title: Chief Financial Officer
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/ Dennis Kim

	Title: Vice President

 [Signature Page to Seventh Amendment to Credit Agreement]EX-10.1

 Exhibit 10.1 

REIMBURSEMENT AGREEMENT 

This REIMBURSEMENT AGREEMENT (the “Agreement”) is made this 8th day of March,
2013, by and between PACIFIC MERCANTILE BANK, a California banking corporation, (hereinafter collectively referred to as “PMB”), and CGB Asset Management, Inc., a California corporation (hereinafter referred to as “CGBAM”). 

Recitals 
 WHEREAS, PMB
presently owns and operates a commercial bank and certain other non-bank subsidiary entities in California; 
 WHEREAS, CGBAM and PMB are
affiliates for purposes of the Federal Reserve System’s Regulation W, as a result of the control ownership interest in each of CGBAM and PMB held by Carpenter Fund Manager GP, LLC, a registered bank holding company; 

WHEREAS, PMB requires various services, which may include but are not limited to managerial assistance, financial analysis and reporting and
similar services; 
 WHEREAS, CGBAM is willing and able to provide such services to PMB; 

WHEREAS, it is the desire of CGBAM and PMB to confirm by written agreement PMB’s engagement of CGBAM to perform for PMB certain functions
and incur certain expenses in the specified areas and to consult with the Board of Directors and the officers of PMB and with the administrative staff in the areas designated and on the terms set forth in this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth in this Agreement, CGBAM and PMB (collectively referred to
hereinafter as “the parties”) agree as follows: 
  

	1.	Provision of Services by CGBAM 

  

	 	(a)	Description of Services 

 Upon request by PMB, CGBAM shall furnish PMB with services
including, but not necessarily limited to: 

  
 1 

	 	(i)	Managerial services provided by CGBAM representatives to PMB; 

  

	 	(ii)	Financial analysis and reporting services provided by CGBAM representatives to PMB; and 

  

	 	(iii)	Other services as may be agreed upon by the parties. 

  

	 	(b)	Acting on Behalf of PMB 

 From time to time, CGBAM may deem it advisable and CGBAM is
authorized to enter into agreements with other persons, companies, or firms in order to properly perform the duties and obligations required of CGBAM under this Agreement with respect to the services to be provided as set forth herein. With regard
to any such agreements, CGBAM shall be the exclusive agent of PMB for the purpose of negotiating the terms and conditions of said agreements provided, however, that CGBAM shall not enter into any such agreement on behalf of PMB unless the principal
terms of such agreement have been approved by the Board of Directors of PMB. 
  

	 	(c)	Delivery of Services 

 CGBAM shall furnish services to PMB under this Agreement with
personnel employed or selected by CGBAM and who are acceptable to PMB. 
 CGBAM shall give the same care to PMB’s work as it gives to
its own work. However, CGBAM does not warrant the work free of error, and shall be liable only for its own gross negligence or willful misconduct. 
  

	 	(d)	Oversight 

 All services provided to PMB pursuant hereto are subject to oversight and
review by the PMB Board of Directors, and CGBAM shall cause the provision of such services to be coordinated with appropriate PMB management personnel. 
  

	2.	Fees, Costs and Compensation 

  

	 	(a)	Written Description 

 At the outset of each engagement by PMB of CGBAM pursuant to this
Agreement, the parties shall agree in writing on the scope of the services to be delivered, the overall rate of reimbursement to be paid by PMB to CGBAM for the services, and any other arrangements specific to that engagement. 

 

	 	(b)	Payment of Fees for Services 

 PMB shall reimburse CGBAM for services performed under
this Agreement in such amounts as shall be agreed upon by the parties, which amounts shall not exceed the fair market value of the 

  
 2 

 
provided services, or, if the fair market value cannot be determined without unreasonable expense or effort, the cost of the provided services plus a commercially reasonable profit. 

 

	 	(b)	Reimbursement of Costs 

 PMB shall reimburse CGBAM for all costs incurred by CGBAM on
behalf of and for the benefit of PMB in connection with the provision of services hereunder. Costs include, but are not limited to, payments made to third parties by CGBAM for services. Costs also include CGBAM’s out-of-pocket expenses and
reasonable compensation for the services of CGBAM representatives providing services to PMB hereunder. 
  

	 	(c)	Billing and Payment 

 CGBAM shall provide PMB with a statement not later than five
business days following the end of each calendar month which sets forth (1) a summary of the services rendered and related fees incurred during that month, (2) identification of CGBAM personnel providing services stating tasks performed
and time spent recorded in increments of hours, half days or full days, and (3) a detailed listing of all costs incurred during that month, for which payment is requested. 

PMB shall pay CGBAM not later than the 15th day of each calendar month for all fees and costs incurred by CGBAM on behalf of PMB and billed
pursuant to Sections 2(a), 2(b) and 2(c) above. 
  

	3.	Consultant Status 

 CGBAM shall render services hereunder as a consultant and nothing in
this Agreement shall be construed to characterize CGBAM or its representatives as employees of PMB. 
  

	4.	Term of Agreement 

 This Agreement shall be for a term of one (1) year from the date
first set forth above, subject to earlier termination as provided in Section 5 of this Agreement. This Agreement shall automatically be renewed and extended for a one (1) year period upon the expiration of the initial one (1) year
term and upon the expiration of any succeeding one (1) year term, unless either party notifies the other in writing not less than thirty (30) days prior to such expiration of its intention not to renew or extend this Agreement. 

 

	5.	Early Termination 

 Either party may terminate this Agreement at any time upon thirty
(30) days’ prior written notice to the other party. 

  
 3 

	6.	Indemnification 

 In consideration of the services to be rendered by CGBAM and the fees
to be paid by PMB hereunder, CGBAM and PMB hereby agree to indemnify and save each other harmless from and against any and all claims, demands, actions, proceedings, judgments, losses, damages, counsel fees, payments, expenses and liabilities
whatsoever which CGBAM or PMB at any time may sustain or incur by reason of the willful misconduct or negligence of personnel assigned by CGBAM or PMB, respectively, to perform this Agreement. In this connection, CGBAM and PMB agree to notify the
other party promptly of any event which either party reasonably believes may give rise to a claim by CGBAM or PMB pursuant to the foregoing indemnity and, upon demand by CGBAM or PMB, to defend against any such claim in the place and on behalf of
CGBAM or PMB, respectively. 
  

	7.	Assignment 

 This Agreement shall not be assigned or transferred by either party without
the prior written consent of the other party. 
  

	8.	Arbitration 

 Any controversy or claim arising out of or relating to the compensation to
be paid by PMB for the services rendered by CGBAM pursuant to the terms of this Agreement shall be settled by arbitration in accordance with the rules of the American Arbitration Association, and judgment on the award rendered by the arbitrator or
arbitrators may be entered in any court having jurisdiction thereof. Either party to this Agreement may submit to arbitration any controversy or claim. 
  

	9.	Applicable Laws and Regulations 

 The services performed under this Agreement by CGBAM
will be subject to the regulations and examination of the federal or state agencies having supervisory jurisdiction over CGBAM and PMB to the same extent as if such services were being performed solely by PMB on its own premises. The provisions of
this Agreement are subject to the approval, modification, regulation or ruling of any governmental agency having jurisdiction over CGBAM, PMB or their affiliates. 

This Agreement shall be binding on and shall be to the benefit of the parties hereto and their respective heirs, executors, administrators,
successors, and assigns, and shall be governed by the laws of the State of California. This Agreement may be amended or modified only by a writing executed by the parties hereto. If any provision of this Agreement is adjudged unlawful by any court
of competent jurisdiction, the remaining provisions of this Agreement shall remain in full force and effect. Further, if any part of this Agreement is adjudged invalid by a court of competent 

  
 4 

 
jurisdiction, such determination shall have no effect whatsoever on the amount or amounts of compensation to be paid to CGBAM pursuant to the terms of this Agreement. 

 

	10.	Accounting 

 Upon termination or expiration of this Agreement, CGBAM and PMB shall do all
things necessary to effect a final and complete accounting under this Agreement, and PMB shall promptly thereafter pay to CGBAM any amount due to CGBAM under the terms of this Agreement. 

 

	11.	Confidentiality 

 CGBAM will hold in confidence all information relating to PMB’s
assets, liabilities, business or affairs, or those of any of its affiliates, which is received by CGBAM in the course of rendering the services hereunder. CGBAM will make the same effort to safeguard such information as it does to protect its own
proprietary data. CGBAM will not use any proprietary information regarding PMB for its own benefit or that of any affiliate, and all confidential information obtained during the term of this Agreement will be returned to PMB upon its termination.

  

	12.	Headings 

 The headings or titles of the several sections hereof shall be solely for
convenience of reference and shall not affect the meaning, construction or effect of this Agreement. 
  

	13.	Counterpart Signatures 

 This Agreement may be executed in counterparts, each of which
shall be an original and all of which shall constitute but one and the same agreement. 

  
 5 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the
date first above written. 
  

			
	PACIFIC MERCANTILE BANK
		
		 	 /s/ Nancy Gray

	By:	 	Nancy Gray
	Its:	 	Chief Financial Officer
	
	CGB ASSET MANAGEMENT, INC.
		
		 	 /s/ John D. Flemming

	By:	 	John D. Flemming
	Its:	 	President

  
 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00224-of-00352.parquet"}]]