Document:

sens_Ex10_1

		
			Exhibit 10.1
		

			
					
						 

					
					
						 

				
	
					
						DISTRIBUTION AGREEMENT

				
	
					
						 

					
					
						 

				
	
					
						between

					
					
						 

				
	
					
						 

					
					
						Senseonics Incorporated

					
						20451 Seneca Meadows Parkway

					
						Germantown, MD 20876-7005

					
						USA

					
						 

					
						“SENSEONICS”

				
	
					
						and

					
					
						 

				
	
					
						 

					
					
						Roche Diagnostics International AG

					
						Basel Branch Diabetes Care

					
						Peter Merian-Weg 4

					
						4052 Basel

					
						Switzerland

				
	
					
						 

					
					
						and

				
	
					
						 

					
					
						 

					
						 

					
						Roche Diabetes Care GmbH

					
						Sandhofer Strasse 116

					
						68305 Mannheim

					
						Germany

					
						 

					
						 

					
						collectively “ROCHE”

				

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

RECITALS
		

		
			WHEREAS, SENSEONICS develops, manufactures and intends to market products related to continuous glucose monitoring.
		

		
			WHEREAS, ROCHE is a company with global business activities in the Diabetes Care market.
		

		
			WHEREAS, SENSEONICS and ROCHE (the “Parties”, or individually a “Party”) desire to have SENSEONICS manufacture and supply to ROCHE a continuous glucose monitoring product and to have ROCHE exclusively distribute and sell the continuous glucose monitoring product in the Territory under the terms and conditions stated herein.
		

		
			WHEREAS, the Parties intend to start the initial distribution in the Territory, stating that further countries may be added to the distribution set-up. 
		

		
			NOW, THEREFORE, for and in consideration of the promises and the covenants contained herein, the Parties hereto do hereby agree as follows:
		

		
			1.               DEFINITIONS
		

		
			In addition to the terms defined elsewhere in this Agreement, the following words and phrases, whenever capitalized in this Agreement, shall have the following meanings:
		

		
			1.1“Affiliate” shall mean
		

		
			(a) an organization which directly or indirectly controls a Party to this Agreement;
		

		
			(b) an organization which is directly or indirectly controlled by a Party to this Agreement; or
		

		
			(c) an organization which is controlled, directly or indirectly, by the ultimate parent company of a Party.
		

		
			Control as per a) to c) is defined as owning fifty percent or more of the voting stock of a company or having otherwise the power to govern the financial and the operating policies or to appoint the management of an organization.
		

		
			With respect to ROCHE the term “Affiliate” shall not include [***], unless ROCHE opts for such inclusion of [***] by giving written notice to SENSEONICS.
		

		
			1.2“Anti-Corruption Laws” shall mean all applicable laws, regulations, orders, judicial decisions, conventions and international financial institution rules regarding corruption, 
		

		
			 
		

		
			
		

		
			

		 

		

			2

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

bribery, ethical business conduct, money laundering, political contributions, gifts and gratuities, or lawful expenses to public officials and private persons, agency relationships, commissions, lobbying, books and records, and financial controls.
		

		
			1.3“Applicable Laws” shall mean any and all laws, rules, regulations, directives, and guidance of any governmental authority in the Territory pertaining to the development, manufacture, extrusion, packaging, labeling, storage, marketing, sale, distribution or intended use of a Product, as amended from time-to-time.
		

		
			1.4“Customer” or “HCP” shall mean a Third Party healthcare provider that maintains its principal place of business in the Territory and that acquires a Product for use by a patient in the Territory in the Field and not for further redistribution, remarketing or leasing to any other person or entity.
		

		
			1.6“Effective Date” shall mean the date of the last Party to execute this Agreement.
		

		
			1.7“EULA”  shall mean that certain end user agreement or agreements between SENSEONICS and Customers or their patients or caregivers with respect to an App or any cloud-based service that SENSEONICS offers directly to Customers, patients, caregivers or other Third Parties.  
		

		
			1.8“European Union” means the economic, scientific and political organization of the European Union member states as it may be constituted from time to time, which as of the Effective Date consists of Austria, Belgium, Bulgaria, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, The Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom of Great Britain and Northern Ireland and that certain portion of Cyprus included in such organization.
		

		
			1.9“Excess Quantity” shall mean a quantity equal to [***] of the then current binding forecast of the Products for the applicable time period.
		

		
			1.10“Field” shall mean an implantable sensor for continuously monitoring glucose in humans with diabetes.
		

		
			1.11“Price” shall mean the price to be paid to SENSEONICS listed in Exhibit 4, denominated in EUR.
		

		
			1.12“Product” shall mean each of the tangible products listed on Exhibit 1 of this Agreement, manufactured by or on behalf of SENSEONICS pursuant to this Agreement for supply to ROCHE. Exhibit 1 may be amended from time to time in accordance with the terms hereof. 
		

		
			 
		

		
			
		

		
			

		 

		

			3

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

1.13“Product App” or “App” shall mean the software application(s) listed on Exhibit 1 of this Agreement, developed by or on behalf of SENSEONICS, and related support and other cloud-based services, if any, offered by SENSEONICS in connection therewith.
		

		
			1.14“ROFN Territory” shall mean all countries and territories of the European Union, but expressly excluding the countries in the Territory, Sweden, Norway, Denmark, Switzerland, the UK, France and Finland.
		

		
			1.15“Specifications” shall mean those products, labeling and performance specifications for each of the Products that are to be purchased and supplied under this Agreement, as set forth in Exhibit 2 attached hereto and made a part hereof, and as such Exhibit 2 may be amended from time to time in accordance with the terms hereof.
		

		
			1.16“Territory” shall mean the countries agreed upon in Exhibit 3.
		

		
			1.17“Third Party” shall mean a party other than ROCHE, SENSEONICS or their Affiliates.
		

		
			1.18“User Documentation” shall mean the user documentation furnished to ROCHE by SENSEONICS for distribution along with the Products to Customers.
		

		
			2.                 PURCHASE, SALE AND SUPPORT
		

		
			2.1               Purchase and Sale.
		

		
			(a) During the term of this Agreement and subject to the terms contained herein, ROCHE shall have the exclusive right, but not the obligation (except for the Minimum Requirements and the binding portion of any forecast submitted as set out in Section 3.2 (a)), to purchase all of ROCHE’s requirements of the Products in the Territory from SENSEONICS and SENSEONICS shall manufacture (or have manufactured) and supply to ROCHE at the agreed Price such quantities of the Products as ordered by ROCHE hereunder. The Products available to ROCHE for purchase from SENSEONICS are listed in Exhibit 1 of this Agreement, which may be amended by written agreement of the Parties from time to time during the term of this Agreement.  Notwithstanding anything to the contrary, any software embedded in a Product is licensed to Roche and its Affiliates and its Customers, not sold, to the extent permitted by Applicable Law. The Products shall reference or utilize Apps that can be licensed by SENSEONICS to Customers under the EULA in connection with the Products.
		

		
			(b) Subject to the terms of this Agreement, including the Minimum Requirements, SENSEONICS acknowledges and agrees that ROCHE shall have the exclusive right to market, offer to sell and sell the Products solely to any Customer in the Territory and solely for use by such Customer in the Territory in the Field, and ROCHE hereby accepts such
		

		
			
		

		
			

		 

		

			4

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

appointment and agrees to promote and sell the Products on the terms and conditions set forth herein. For the avoidance of doubt, Customer’s use of Product outside the Field shall not lead to any responsibility or liability of ROCHE. Except as provided otherwise in this Agreement, SENSEONICS shall not, as far as such limitation is consistent with Applicable Law, directly or indirectly market, offer to sell or sell, or assist any Third Party in marketing, offering to sell or selling the Product to any Third Party in the Territory for use in the Field.  Nothing herein shall limit SENSEONICS or any Third Party app store from marketing, offering, licensing, or selling the Apps in the Territory or Field for products that are same as or similar to the Products that were procured outside of the Territory or intended to be sold outside the Territory.  ROCHE shall not, as far as such limitation is consistent with applicable law, actively market, and offer to sell or sell the Product outside the Territory and/or for use outside of the Field.  If ROCHE receives any unauthorized order from a prospective purchaser outside the European Economic Area (EEA), ROCHE shall promptly refer that order to SENSEONICS and shall not accept any such orders.
		

		
			(c) The Parties agree, that SENSEONICS shall offer ROCHE a one-time right of first negotiation (“ROFN”) to exclusively negotiate a distribution arrangement for the ROFN Territory as provided in this Section 2.1(c). SENSEONICS shall provide ROCHE with written notice prior to negotiating any distribution agreement with a Third Party for any country(ies) within the ROFN Territory. ROCHE shall have a period of thirty (30) days to provide SENSEONICS with written notice that it desires to exercise its ROFN with respect to such country. If ROCHE exercises its ROFN within such thirty (30) day period, then the Parties shall, for a period of up to one hundred twenty (120) days, negotiate exclusively in good faith on the terms and conditions of a distribution agreement for the Product in such country(ies) within the ROFN Territory. If ROCHE either does not exercise its ROFN within the thirty (30) day period or the Parties do not execute a distribution agreement within the one hundred twenty (120) day negotiation period (for whatever reason), then ROCHE shall no longer have exclusive negotiation rights with respect to such country(ies). The parties agree and acknowledge that (i) the ROFN shall not apply to any sale transaction of SENSEONICS (whether by merger, stock sale, asset transaction or otherwise) and (ii) the entry of a definitive agreement for the ROFN territory shall be at the sole and absolute discretion of the Parties and no obligation other than the negotiation right is expressed or shall be implied.  
		

		
			(d) ROCHE shall be solely responsible for all costs incurred by marketing, offering to sell or selling the Products in the Territory as specified in Section 2.2.
		

		
			(e) Subject to the terms and conditions of this Agreement, SENSEONICS grants to ROCHE a nonexclusive, non-transferable, revocable (in accordance with any termination/expiration of this Agreement), payment-bearing license (which is covered by the Price) to: (i) distribute Products containing software embedded therein (in executable code only), in each case solely (a) as embedded with the Product, (b) in the form and with the branding and attribution
		

		
			 
		

		
			
		

		
			

		 

		

			5

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

provided by SENSEONICS, and (c) to one or more Customers in the Territory; (ii) make available the Apps or provide a link thereto through a Third Party app store to Customers, subject to a EULA, (iii) distribute one copy of the User Documentation (in its original form) with each Product distributed as permitted herein; and (iv) use a reasonable number of copies of the embedded software within the Product and the App (in each case, in executable code only) and the User Documentation solely on an internal basis and solely for the purposes of (a) conducting Product and App demonstrations for potential Customers in the Territory and (b) providing support services to those Customers that receive the Product from ROCHE.
		

		
			(f) ROCHE shall not sublicense the rights set out in subsection (e)(i) and (ii) above or otherwise appoint one or more Third Party subdistributors without SENSEONICS’s prior written consent, such consent not to be unreasonably withheld or delayed.
		

		
			(g) ROCHE acknowledges that the Products, Apps, and their structure, organization, and source code constitute valuable trade secrets of SENSEONICS and its suppliers.   Accordingly, ROCHE shall not, and shall not permit or authorize any third party, to  (i) modify, adapt, alter, translate, or create derivative works from any Products or Apps; (ii) merge any Products or Apps with other software; (iii) distribute, sublicense, lease, rent, loan, or otherwise transfer any Products or Apps to any Third Party (other than the sale to Customer in accordance with this Agreement); or (iv) reverse engineer (except to the extent permitted by Applicable Law), decompile, disassemble, or otherwise attempt to derive the source code for any Products or Apps; or (v) use any software or firmware embedded in a Product in connection with any other product, unless in each case, such restriction is not permitted under Applicable Law.  ROCHE shall not remove, alter, or obscure in any way any proprietary rights notices (including copyright notices) of SENSEONICS or its suppliers on or within any copies of the Products, Apps or the User Documentation.   The Products to be offered for sale and/or sold by SENSEONICS to ROCHE under this Agreement are subject in each and every case to the condition that such sale does not convey any license, expressly or by implication, to manufacture, duplicate or otherwise copy or reproduce any of the Products or any software or Apps relating thereto.  Except as otherwise may be expressly permitted in this Agreement with respect to translations of labeling and country-specific packaging for the Product, ROCHE shall not make any changes, alterations, modifications or additions to the Products or Apps without prior written approval of SENSEONICS, which approval SENSEONICS, in its sole discretion, can withhold.  ROCHE shall take reasonable  steps to include in its marketing materials, or otherwise inform purchasers of, the restrictions contained in this paragraph.
		

		
			(h) ROCHE acknowledges and agrees that nothing in this Agreement shall give it the right to conduct, directly or indirectly, any research or development activity (including any clinical development) using the Products or Apps, including the evaluation of the Products or any Apps for use in additional fields or applications, and it shall not sell or make available the Products or any Apps for any such purpose, without the prior written approval of SENSEONICS.  In the event that ROCHE becomes aware that a Third Party desires to purchase or use Products or Apps for such purpose, ROCHE shall promptly notify SENSEONICS of such potential activities.
		

		
			 
		

		
			
		

		
			

		 

		

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			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

2.2Support.
		

		
			(a) ROCHE shall be responsible for first level customer contact and technical support of the Products and Apps in the Territory.  The ROCHE support of SENSEONICS Products and Apps is limited to Product issues and related troubleshooting steps, as described in the most recent troubleshooting guides (TSG), provided by SENSEONICS for each SENSEONICS Product and App.  Customer complaints will be handled by ROCHE and SENSEONICS as described in Section 5.6 and in accordance with all Applicable Laws.
		

		
			ROCHE shall provide such support in a timely manner and in accordance with ROCHE’S existing standard technical support response and resolution timing requirements.
		

		
			(b) SENSEONICS shall reasonably cooperate with ROCHE on the promotion and marketing of the Product in the Territory as and to the extent provided in this Agreement or any mutually agreed marketing plan. SENSEONICS shall provide ROCHE at regular intervals (as mutually agreed by the Parties) with a copy of SENSEONICS’ then current available printed and online marketing material in English that are applicable to the Products and Apps to further the goals of this Agreement. These marketing materials are to be provided for free. Duplication, adaptation and translation costs for use in the Territory will be borne by ROCHE.  ROCHE shall distribute Products with all packaging, warranties, disclaimers, patient consent forms, User Documentation and product information as designated by SENSEONICS, ROCHE may translate any such materials into the local country language(s) of the Territory; provided, that all final copies of any such translated materials shall be provided to SENSEONICS in advance of any use by ROCHE for review and written approval. This approval shall be given to ROCHE within ten (10) days. In no event shall SENSEONICS assume any liability for materials created or modified by ROCHE.
		

		
			(c) During the term, ROCHE shall have the limited right and royalty-free license to include the SENSEONICS trademarks and a description or image of the Products or Apps on its websites solely for the purpose of distributing the Product as provided herein. Use of the SENSEONICS’ trademarks as permitted under this Agreement shall be subject at all times to all usage guidelines provided to ROCHE by SENSEONICS and all goodwill associated therewith shall inure to the benefit of SENSEONICS.  ROCHE may reference, wherever suitable, to SENSEONICS’ website including, without limitation, through a website linking. References or links can be made to a specific web-page if SENSEONICS indicates a specific URL. ROCHE shall not be liable for any content on web-pages that can be accessed via such links. 
		

		
			(d) SENSEONICS shall use commercially reasonable efforts to support ROCHE in distributing the Product to HCPs deemed necessary by the Parties. ROCHE may promote the Products and Apps through its direct sales force or otherwise as it may determine from time to time, in its sole discretion, but at all times in accordance with this Agreement. 
		

		
			(e) SENSEONICS shall provide Clinical Science Managers resources at its own cost to ROCHE for training physicians on the implantation of the Senseonics sensor to allow ROCHE to market, offer to sell or sell the Product.  The Clinical Science Managers shall be 
		

		
			 
		

		
			
		

		
			

		 

		

			7

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

able to communicate in English or German. The training provided under this Section 2.2(e) to physicians will be conducted in the applicable local language and may be done through the use of translators.
		

		
			(f) SENSEONICS shall be responsible for offering and making available the App in applicable Third Party app stores on a mutually agreed date that will be scheduled to occur on the earlier of (i) the day before the communicated start date of the trainings for HCPs, or (ii) the first scheduled day for a commercial sale of Product by ROCHE, as made known to SENSEONICS. SENSEONICS shall be responsible to offer necessary updates in the respective app stores. SENSEONICS shall be responsible for the App’s compliance with data privacy laws in the Territory. SENSEONICS represents and warrants that the App was designed to store sensitive patient data locally on the patient’s device (e.g., smartphones), and was not designed to transfer sensitive patient data to SENSEONICS or its designee, unless specifically initiated or approved by the patient.  SENSEONICS assumes no liability, and makes no representation or warranty, regarding any use or transfer of all or certain data initiated by the Customer or their patients.
		

		
			3.              PRICE, ORDERS, PRODUCT SUPPLY
		

		
			3.1Price.
		

		
			(a) SENSEONICS shall charge ROCHE, and ROCHE shall purchase from SENSEONICS the quantities of Products ordered pursuant to this Agreement at the Price for each of the Products as set forth in Exhibit 4.  The Prices do not include sales, use, excise, value added, transfer or any other taxes or duties levied or assessed by any governmental authority within the Territory, all of which shall be paid by ROCHE.  All import and export licenses, consents and approvals for Roche’s distribution of the Product shall be obtained by ROCHE at its own expense.  When SENSEONICS has the legal obligation to collect such taxes, the appropriate amount shall be invoiced to ROCHE and paid by ROCHE (in addition to the Price) within forty-five (45) days unless ROCHE provides SENSEONICS with a valid tax exemption certificate authorized by the appropriate taxing authority. 
		

		
			(b) The Price and the volumes for each Product shall be re-negotiated in good faith between the Parties upon written request of either Party in the event that reimbursement for the Product is denied, changed or cancelled, taking also into account the changes in production costs and the changes in the end user prices. Until such time as the Parties agree on any such re-negotiated Price for each such Product, the current Price shall remain in effect.  The Parties shall review market price/reimbursement in each country one year after the Effective Date and review whether these allow the targeted margins for ROCHE. If this is not the case, the Parties shall negotiate price adjustments in good faith. If market price/reimbursement is deemed too low by ROCHE and SENSEONICS is not in a position to lower product prices to allow for the desired margins, ROCHE may terminate this Agreement in line with Section 10.2.
		

		
			
		

		
			

		 

		

			8

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

3.2Forecast and Orders.
		

		
			(a)ROCHE shall furnish to SENSEONICS a rolling forecast in four month increments (by May 1st, September 1st and January 1st) for the quantities of the Products that ROCHE intends to order during the twelve (12) month period referenced therein. The forecast period shall commence with the first day of the succeeding period. The first four (4) months of each such forecast shall constitute a binding commitment upon ROCHE to purchase each of the Products in the quantities indicated in the forecast for such first four (4) months, pursuant to the purchase orders submitted by ROCHE to SENSEONICS in accordance with Section 3.2(c). The remaining eight (8) months of such forecast shall merely represent reasonable estimates for planning purposes only and shall not obligate ROCHE to purchase the Products or quantities therein. 
		

		
			(b) Each calendar year during the term, ROCHE shall purchase no less than the minimum quantities of each Product per country in the Territory (“Minimum Requirement”) as set forth on Exhibit 4 for such calendar year.  Minimum quantities which exceed the annual Minimum Requirement per country in the Territory shall be deducted from the Minimum Requirement for such applicable country in the Territory for the remaining years. 
		

		
			(c)The quantity of Products in the initial purchase order shall be agreed upon by the Parties in writing until the described rolling forecasting process begins. 
		

		
			(d)ROCHE shall place each purchase order with SENSEONICS for the Products to be delivered hereunder in writing. Each such purchase order shall constitute a binding obligation upon ROCHE and shall be confirmed by SENSEONICS within [***] from receipt of the purchase order, such confirmation to include information on the expected delivery date. SENSEONICS hereby guarantees an [***] delivery of the Products (for quantities ordered that are equal to or less than the then current forecast quantity plus the Excess Quantity) from the receipt of each purchase order. SENSEONICS may use the Safety Stock of the Products maintained in Section 3.4 to meet Excess Quantity orders. For orders of the Products that exceed the then current rolling forecast plus the Excess Quantity, SENSEONICS shall use its reasonable efforts to meet the [***] delivery date for such orders and shall reasonably adapt its production capacity accordingly to the extent reasonably practicable, but failure to deliver any such quantities of Products by such delivery date shall not constitute a breach of this Agreement by SENSEONICS. SENSEONICS shall deliver those Products that are designated by SENSEONICS as sensors (“Sensor Products”) to ROCHE with at least [***] of shelf life. Sensor Products delivered with less than [***] of remaining shelf life at the time of delivery will be exchanged for free by SENSEONICS. The foregoing shall be ROCHE’s sole remedy and SENSEONICS’ sole obligation and liability with respect to Sensor Products not containing the minimum shelf-life at the time of delivery to ROCHE. 
		

		
			(e)All purchase orders shall be subject to the terms and conditions contained herein, and nothing in any purchase order or any other document submitted by ROCHE to SENSEONICS shall in any way modify, add or delete any terms or conditions to those contained in this Agreement. 
		

		
			 
		

		
			
		

		
			

		 

		

			9

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

3.3Delivery and Invoicing.
		

		
			(a)SENSEONICS shall ship the Products which are ordered by ROCHE pursuant to a purchase order from SENSEONICS’s facility on a DAP basis (Incoterms 2010) to ROCHE’s Germany/Raunheim facility [***] in accordance with the quantities and delivery dates specified in ROCHE’s purchase orders
		

		
			All deliveries shall comply with ROCHE’s shipping and pallet guidelines as set forth in Exhibit 5.
		

		
			(b)SENSEONICS shall invoice ROCHE for the Prices of the Products supplied under ROCHE’s purchase order. ROCHE shall pay such invoice within sixty (60) days from the end of the calendar month in which such Product was delivered to ROCHE.
		

		
			All payments to SENSEONICS shall be made via wire transfer pursuant to the following information: 
		

			
					
						 

					
					
						 

				
	
					
						Account Name:

					
					
						XXXXXXXXX

				
	
					
						Name of Bank:

					
					
						XXXXXXXXX

				
	
					
						Account No.:

					
					
						XXXXXXXXX

				
	
					
						Bank Code:

					
					
						XXXXXXXXX

				

		
			(c)Unless the Parties expressly agree in writing to use a different currency, all invoices under this Agreement shall be invoiced and paid in EUR. The Parties shall agree on an exchange rate(s) from United States Dollars into Euro. The agreed exchange rate will be set once per calendar quarter based on the exchange rate(s) documented in the Wall Street Journal on the 15th of the month (or the business day before in the event the 15th is a Saturday, Sunday or public holiday) previous to each calendar quarter. If the actual exchange rate deviates for more than one point five per cent (1.5%) from the agreed exchange rate in a calendar quarter, the agreed exchange rate shall be adapted accordingly becoming effective for the next calendar quarter.
		

		
			(d)Within thirty (30) days after the end of each calendar quarter during the Term, ROCHE shall provide to SENSEONICS true and correct written reports of all sales of Products in the Territory by ROCHE. Each such written report shall be in a form and format reasonably acceptable to SENSEONICS with information specifically identifying the Products sold (by Product and Customer type) during such period, except to the extent expressly prohibited by Applicable Law.
		

		
			3.4Safety Stock. Commencing six (6) months following the Effective Date and throughout the term of this Agreement, SENSEONICS shall maintain a Safety Stock of the primary sensor component (without the applied chemistry) necessary to manufacture the Products, equivalent in quantity to the average of the last two binding [***] periods of forecasts of Products (the “Safety Stock”); provided, that SENSEONICS shall have a reasonable period of time to satisfy the Safety Stock requirement associated with any material increase in ROCHE’s forecasted amount of Product. Deliveries by SENSEONICS to ROCHE 
		

		
			 
		

		
			
		

		
			

		 

		

			10

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

may utilize sensors for Products taken from SENSEONICS’s inventory identified as Safety Stock; provided, however, that SENSEONICS shall replenish the Safety Stock, if necessary, as soon as reasonably practicable in order to maintain the level of Safety Stock in accordance with the preceding sentence. SENSEONICS’s Safety Stock shall be rotated with its regular inventory of sensors for the Products. 
		

		
			3.5Failure to Supply. In the event that SENSEONICS is unable, or notifies ROCHE that it is unable, for any reason (except for events of Force Majeure) to supply quantities of the Products in accordance with Sections 3.2 and 3.3 for a period of [***], ROCHE may, at its discretion and upon notice to SENSEONICS solely to the extent to cover such failure to supply, (a) require SENSEONICS to supply the undelivered Products at a future date agreed upon by the Parties in written form; or (b) require SENSEONICS to provide access (by providing company names, individual contacts and phone numbers) to SENSEONICS’s supplier(s) of the Products, such that ROCHE may discuss with such supplier(s) the supply of the Products that SENSEONICS is unable to supply; or (c) purchase such undelivered Products, or reasonably similar products, from a Third Party supplier (in which case the terms of this Agreement shall not apply to such Products). In the event ROCHE elects either option (b) or (c), above, ROCHE shall be relived of any obligation set forth in Section 3.2 to purchase such undelivered Products and all corresponding purchase orders shall be deemed null and void.
		

		
			4.              MANUFACTURE, QUALITY ASSURANCE, WARRANTY, LIABILITY AND STUDY DATA
		

		
			4.1Legal Manufacturer. As between the Parties, SENSEONICS shall be the responsible legal manufacturer for all of the Products supplied by SENSEONICS to ROCHE hereunder whether or not the Products are manufactured by SENSEONICS or a Third Party on behalf of SENSEONICS. SENSEONICS represents and warrants to the best of its ability that the manufacture of the Products and the manufacturing facilities and processes used in the manufacture of the Products will, at the time of manufacture of the Product, comply with all Applicable Laws.
		

		
			4.2Product Warranty. SENSEONICS represents and warrants that with respect to Products supplied by it to ROCHE under this Agreement:  (i) Sensor Products that meet the minimum shelf-life pursuant to Section 3.2(c), shall, until expiry of the corresponding expiration date for such Sensor Product, conform in all material respects to the Specifications in effect at the applicable time of manufacture of such Sensor Products and at the time of delivery to ROCHE be free from defects in materials and workmanship; and (ii) Products that are designated by SENSEONICS as transmitters (“Transmitter Products”), shall, for a period of [***] from the date of delivery to ROCHE (“Warranty Period”), conform in all material respects to the Specifications in effect at the applicable time of manufacture for such Products 
		

		
			 
		

		
			
		

		
			

		 

		

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and at the time of delivery to ROCHE be free from defects in materials and workmanship (collectively, the “Product Warranty”).   Notwithstanding anything to the contrary, SENSEONICS shall not be liable with respect to any Product labeling or package inserts to be provided or used by ROCHE or for any noncompliance with the foregoing due to the acts or omissions of ROCHE or failure to comply with any SENSEONICS’s written instructions regarding the Product. This Product Warranty is expressly made contingent upon proper use of Products in the application for which they were intended in accordance with any instructions for use or labeling included with the Products. 
		

		
			4.3Testing. SENSEONICS shall test or cause to be tested each lot of the Products manufactured by SENSEONICS for ROCHE hereunder before delivery to ROCHE. Each lot shall be accompanied by a Certificate of Analysis (the “CoA”) which shall provide part traceability for the Products. The CoA shall show a summary of the testing results and have SENSEONICS’s quality representative’s signature and date of approval.
		

		
			4.4Labeling. SENSEONICS shall be responsible for all labeling of the Products in accordance with SENSEONICS’ standard company practices and for the control of such labels and label modification processes and documentation, provided that ROCHE shall be responsible for providing SENSEONICS all Territory -specific labeling specifications for the Product necessary for sale of the Product in the Territory.  Such responsibilities of the Parties shall be carried out in full compliance with Applicable Laws; provided, that, if Roche performs any labeling in connection with any Roche product or app related to the Product or App, then in no event shall SENSEONICS assume any liability for such labeling performed solely by Roche.
		

		
			4.5Changes to the Products. SENSEONICS shall notify ROCHE in writing of any proposed material changes to the Products which materially affect the fit, form, or function of the Products as established by the Specifications for each such Product. 
		

		
			4.6Rejected Goods/Shortages.
		

		
			SENSEONICS shall not accept any returns of defective Products except under the following conditions:
		

		
			(a)ROCHE shall notify SENSEONICS if any of the Products shipped by SENSEONICS pursuant to this Agreement do not conform to the Product Warranty under Section 4.2(i) (regarding Sensor Products) or Section 4.2(ii) (regarding Transmitter Products) or if there is any shortage in the quantity of any shipment of the Products within five (5) calendar days of receipt of such shipment. 
		

		
			(b)Hidden defects (to the extent existing at the time of delivery of such Products by SENSEONICS to the common carrier) that result in the Sensor Product or Transmitter 
		

		
			 
		

		
			
		

		
			

		 

		

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Product not conforming to the Product Warranty under Section 4.2(i) or Section 4.2(ii), respectively, must be notified by ROCHE to SENSEONICS within ten (10) calendar days after discovery and in any event, no later than ten (10) calendar days following the expiration of the applicable time period set forth in Section 4.2(i) or Section 4.2(ii) accordingly. 
		

		
			(c)In the event any non-conformance or defect is reported in accordance with subsections (a) and (b) above, ROCHE shall send the applicable Product(s) to SENSEONICS for its inspection. In the event that SENSEONICS confirms such non-conformance, defect or shortage reported in accordance with subsections (a) and (b) above, SENSEONICS shall, at its option, replace the applicable Products or make up the shortage without undue delay after receiving such notice, at no additional cost to ROCHE, or refund the purchase price for the non-conforming Products and shall make arrangements with ROCHE for the return or destruction of any rejected Products, such return shipping charges or costs of destruction to be paid by SENSEONICS. Title to all returned Products shall belong to SENSEONICS.
		

		
			4.7Returned Products.
		

		
			If any customer of ROCHE rejects or returns Products to ROCHE as a result of performance problems or other deficiencies arising from a manufacturing defect within the Warranty Period, ROCHE shall send the applicable Products to SENSEONICS for its inspection. In the event SENSEONICS confirms such performance problem or deficiency, then such Products shall be replaced by SENSEONICS at its expense provided that ROCHE can demonstrate that the Products have been transported, handled and stored according to the written instructions of SENSEONICS. SENSEONICS shall in such circumstances also pay against invoice for the transportation of such rejected or returned Products from customer sites to SENSEONICS. 
		

		
			4.8Product Problems. SENSEONICS shall promptly notify ROCHE of lot failure, manufacturing problems or similar problems that SENSEONICS reasonably determines would, in any material way, negatively impact ROCHE’s ability to sell and distribute the finished Products to its Customers.
		

		
			4.9Sub-contracting manufacture.  In the event that SENSEONICS intends to sub-contract the manufacture of the Products or significant components of the Products to a Third Party (a “Subcontractor”) it shall notify ROCHE in writing. The same applies in the event that SENSEONICS intends to exchange existing subcontractors. The Parties agree that as of the Effective Date, SENSEONICS has provided ROCHE with notice of its existing Subcontractors in a separate writing and the notice requirement under this Section 4.9 is deemed satisfied with respect to such Subcontractors.
		

		
			4.10Study data.      SENSEONICS will provide ROCHE access to certain data of the clinical study associated with the Conformity Assessment of the Product for the purpose of 
		

		
			 
		

		
			
		

		
			

		 

		

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obtaining CE Mark upon receipt of the final study report from such study. This includes the right for ROCHE to contact the study centers participating in such study directly with respect to such data. SENSEONICS will facilitate the contact between ROCHE and such study centers. With respect to such data, ROCHE shall only have access to anonymized or pseudonymous patient data and shall have no access to patient identifiers. All data to which ROCHE has access hereunder shall constitute Confidential Information of SENSEONICS.
		

		
			4.11Apps.  SENSEONICS’ representations and warranties with respect to the Apps shall be as set forth in the EULA by and between SENSEONICS and the applicable Third Party.  In no event will ROCHE provide to a Third Party any representation or warranty with respect to any Apps.
		

		
			4.12Representations and Warranties of Each Party.  Each Party hereby represents and warrants to the other Party as of the Effective Date that:
		

		
			(a)              such Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;
		

		
			(b)              such Party has taken all necessary action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder;
		

		
			(c)              this Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding obligation, enforceable against it in accordance with the terms hereof; and
		

		
			(d)              the execution, delivery and performance of this Agreement by such Party does not conflict with any agreement or any provision thereof, or any instrument or understanding, oral or written, to which it is a party or by which it is bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having jurisdiction over such Party.
		

		
			4.13 Warranty Disclaimer.  EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NO WARRANTIES, EXPRESS OR IMPLIED, ARE GIVEN IN RESPECT OF PRODUCTS OR THE APPS, AND ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PURPOSE OUTSIDE OF THIS AGREEMENT IS HEREBY EXPRESSLY DISCLAIMED. ANY ACTION FOR AN ALLEGED BREACH OF ANY CONTRACT OF SALE OR OF THE ABOVE-STATED WARRANTY IN RESPECT OF PRODUCTS SOLD BY SENSEONICS TO ROCHE OR WITH RESPECT TO ANY APP MUST BE COMMENCED WITHIN ONE (1) YEAR AFTER THE CAUSE OF ACTION ACCRUE.
		

		
			 
		

		
			
		

		
			

		 

		

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5.              REGULATORY MATTERS, PRODUCT QUALITY, INSURANCE 
		

		
			5.1Registration; Export. 
		

		
			(a)SENSEONICS shall be responsible to obtain the CE mark for the Products and Apps.
		

		
			(b)SENSEONICS shall reasonably support ROCHE with any permits needed for the importation, distribution and sale of the Products in the Territory, and safety related requests that may be required by Applicable Law in the Territory.
		

		
			(c)The Parties agree that all Products delivered under this Agreement may be subject to foreign trade controls. The Parties shall strictly comply with all applicable national and U. S. laws and regulations for the control of import, export/ re-export, transfer, brokering and transit. 
		

		
			(d)In any case, SENSEONICS shall inform ROCHE about the respective number of the Products according to the EU Dual-Use Regulation, the Commerce Control List (CCL) of the U. S. Department of Commerce and/ or the U. S. Munitions List (USML) of the U. S. Department of State. Additionally, upon ROCHE’s request, SENSEONICS shall provide technical specifications of the Products to enable ROCHE to classify the Products according to the relevant foreign trade control and customs regulations.
		

		
			(e)SENSEONICS shall be obliged to declare the origin of goods under customs law pursuant to the export and customs regulations applicable in each case, e.g. on the invoice, by means of a certificate of origin or a long-term declaration. SENSEONICS shall promptly notify ROCHE unrequested in writing of any change of origin. Where the Products fall within the scope of a convention for the granting of tariff preferences, SENSEONICS shall be obliged to issue a written declaration pursuant to the relevant free trade agreement, e.g. a long-term supplier declaration or, in individual cases, a declaration of origin on the invoice.
		

		
			(f)In the event that for the import or export of goods additional official documents are required for the designated use of the Products, SENSEONICS shall be obliged to promptly procure or, respectively, to provide these documents to ROCHE. ROCHE shall inform SENSEONICS of the applicable requirements.
		

		
			(g)Any costs incurred from the obligations of a Party in this Section 5.1 shall be borne by such Party.
		

		
			5.2Regulatory Inquiries. Each Party shall keep the other Party informed of any formal or informal inquiry relating to any of the Products sold hereunder by a regulatory agency or national government or supranational authority in the Territory. 
		

		
			 
		

		
			
		

		
			

		 

		

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5.3Inspection by ROCHE. Upon reasonable prior notice, SENSEONICS shall, from time to time during the term of this Agreement, use commercially reasonable efforts to allow or obtain allowance from any Subcontractor for representatives of ROCHE to audit and inspect during regular business hours all facilities utilized by SENSEONICS or Subcontractor in manufacturing, finishing, testing, packaging, storing and shipping the Products sold to ROCHE under this Agreement, provide reasonable access to all manufacturing quality control documentation, and cooperate with such representatives in a reasonable manner. In addition, SENSEONICS shall procure ROCHE letter(s) relating to Products to assist in regulatory filings as is reasonably requested by ROCHE.
		

		
			5.4Compliance with Laws. In performing this Agreement, each Party shall comply with all Applicable Laws, including European Data Protection Directive (Directive 95/46/EC), the German Federal Data Protection Act 1990, as amended, social data protection according sec. 35 Social Code Book I, sec. 67-77 Social Code Book X (the latter three only for the Territory of Germany) and all other applicable data protection and privacy laws, and shall not be required to perform or omit to perform any act required or permitted under this Agreement if such performance or omission would violate the provisions of any such Applicable Law. Without limiting the generality of the foregoing, each Party shall comply with all Applicable Laws pertaining to the use, import, export, transport, handling, storage, distribution, sales, and marketing, of the Products, including all Anti-Corruption Laws as far as applicable. To the extent either Party reasonably determines that Applicable Laws relating to the use, operation or sale of a Product requires the cooperation of the other Party or the provision of certain information or data from the other Party, then such Party shall notify the other Party and the Parties shall discuss in good faith and implement a reasonable process to comply with such Applicable Law.
		

		
			5.5Government Inspection. SENSEONICS shall allow and ensure that any Subcontractor shall allow authorized representatives of any regulatory authority with jurisdiction over the manufacture and/or ROCHE’s marketing and distribution of the Products to tour and inspect facilities utilized in the manufacture, finishing, testing, packaging, storage, and shipment of the Products sold to ROCHE under this Agreement, and will cooperate with such representatives in every reasonable manner. ROCHE shall regard such items as “Confidential Information” under the provisions of Article 8 herein. ROCHE shall allow authorized representatives of SENSEONICS and any regulatory authority with jurisdiction over the Products and/or the marketing, storage and/or distribution of the Products to tour and inspect facilities directly involved in storage and/or sale of Products by ROCHE under this Agreement, and will cooperate with such representatives in every reasonable manner. SENSEONICS shall regard such items as “Confidential Information” under the provisions of Article 8 herein. To the extent SENSEONICS is required by any Regulatory Authority to provide information relating to its distributors of Product in the Territory or access to its 
		

		
			 
		

		
			
		

		
			

		 

		

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distributors in the Territory, ROCHE will comply with such requirements and will make itself available consistent with the provisions of this Section 5.5.
		

		
			5.6Customer Complaints.
		

		
			 
		

		
			The ROCHE local organization documents complaints upon receipt regarding the Product or Apps according to the standard ROCHE Complaint Handling procedures.  All complaints are handled by the ROCHE local organization according to the current TSG in place. The ROCHE local organization notifies SENSEONICS within two (2) business days of all complaints, and transfers the documentation associated with the complaint, along with the information related to the handling per TSG.  SENSEONICS will evaluate the complaints per the Standard Operating Procedure (SOP) governed by their Quality Management System (QMS).
		

		
			 
		

		
			Problems and issues not described in the product related TSG or any medical complaints are to be directed to the SENSEONICS designated technical support representative. For that purpose, the ROCHE local organization forwards the customer’s contact information including a short problem description via agreed communication channels to SENSEONICS (under consideration of local laws for personal data protection). Thereafter the SENSEONICS designated technical support representative is fully responsible to contact the customer, and if required, to decide which of the complaint material should be sent for investigation purposes.  SENSEONICS is responsible to submit a Manufacturer’s incident report (in accordance with Section 5.7), when appropriate, to the National Competent Authority for all medical complaints. The product investigation process (and investigation result documentation) including required Competent Authority communication is under full responsibility of SENSEONICS. However, SENSEONICS shall keep ROCHE reasonably informed about any such investigation process. 
		

		
			5.7Vigilance and Post-Market Surveillance. SENSEONICS is responsible for reporting of medical incidents and recalls relating to the Products to the competent authorities in accordance with all Applicable Laws. SENSEONICS is also responsible for post-market surveillance and shall promptly notify ROCHE of any relevant corrective actions or non-conformances relating to the Products or Apps.
		

		
			The ROCHE local organization ensures, that SENSEONICS is informed within two (2) business days about possible reportable incidents as described in Section 5.6.
		

		
			5.8Communication. SENSEONICS shall inform ROCHE of any product quality related communication. ROCHE shall follow the actions reasonably requested by SENSEONICS and provide such information immediately to its customers or customer service organizations. 
		

		
			 
		

		
			
		

		
			

		 

		

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5.9Product recalls. In the event of a recall by SENSEONICS of one or more of the Products, SENSEONICS shall notify ROCHE in writing in a timely manner prior to making such recall. Each Party shall endeavor to reach an agreement with the other regarding the manner, content and timing of any publicity to be given to any recall in time to comply with any applicable regulatory requirements, but such agreement shall not be a precondition to any action that a Party deems required to protect users of the Products or to comply with any applicable government orders. In the event SENSEONICS requests ROCHE to recall one or more of the Products, ROCHE shall take all appropriate actions to recall such Products. SENSEONICS shall bear the expenses, including, without limitation, all reasonable out-of-pocket costs and expenses, associated with any recall required by SENSEONICS or required by Applicable Law to the extent arising out of, based on, or caused by failure of the Products to meet the applicable Product Warranty or Specification.
		

		
			5.10Insurance. ROCHE will obtain and maintain at its own cost and expense appropriate insurance to cover its activities with respect to this Agreement, including, without limitation, as applicable, product liability and commercial general liability insurance, provided, that such insurance may be fulfilled through  a program of self-insurance.  SENSEONICS shall name ROCHE as an additional insured under its current product liability insurance policy or enter into such agreement with an insurance company.  As soon as practicable after the Effective Date, SENSEONICS shall provide ROCHE with a certificate of insurance or equivalent, evidencing that (i) ROCHE has been added as an additional insured under such policy for the sale of the Products; or (ii) SENSEONICS entered into an agreement with an insurance company. Minimum coverage shall be [***]. In the event of cancellation of such policy, SENSEONICS shall endeavor to provide ROCHE with written notice of cancellation at least thirty (30) days prior to the effective cancellation date, in which case ROCHE may terminate this Agreement immediately unless comparable substitute insurance coverage is obtained by SENSEONICS. 
		

		
			5.11Training.  SENSEONICS shall provide reasonable training of ROCHE’s sales force, customer support and technical service personnel in preparation for and within a reasonable period after the first commercial sale of Products by ROCHE in amounts and scope as to be mutually agreed by the Parties in writing. ROCHE and SENSEONICS will mutually decide upon the extent and type of training (such as an in-person visit or electronic web-conference) before Products are provided to HCP’s or patients. Unless otherwise mutually agreed by the Parties in writing, the cost of any such training shall be borne by each Party as incurred and such training shall be repeated as mutually agreed by the Parties for any significant Product update and new Product release.  ROCHE shall ensure that all of its employees who are engaged in the promotion and sales of the Product under this Agreement are adequately trained with respect to the sales and support of the Products. ROCHE shall, at its own expense, establish and maintain a sales, marketing and distribution organization, and support 
		

		
			 
		

		
			
		

		
			

		 

		

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personnel of sufficient size to adequately and effectively market, sell and support the Products in the Field in the Territory.
		

		
			6.              INTELLECTUAL PROPERTY
		

		
			6.1Use. SENSEONICS hereby covenants that during the term of the Agreement it shall not sue nor otherwise attempt to enforce against ROCHE in the Territory any patent rights which SENSEONICS now holds, or which SENSEONICS may acquire hereafter under any patent that claims any of the Products or Apps sold by SENSEONICS to ROCHE under this Agreement. ROCHE will have access under the terms and conditions of this Agreement to all generally released products that are developments or improvements to the Products and Apps that perform in substantially the same manner as the Products and Apps; provided, that, any such development or improvement that includes a sensor with an extended life shall be subject to the terms and conditions of this Agreement only if the Parties can agree on reasonable terms for such development and/or improvement.
		

		
			6.2Ownership. The Parties acknowledge and agree that, as between the Parties, except for ROCHE’s right to distribute the Products under the trademarks and trade names of SENSEONICS as granted herein, all right, title and interest in and to any intellectual property rights existing on or before the Effective Date shall continue to reside solely in the ownership of the respective Party (or its licensor) owning the right on or before the Effective Date. Any inventions made, developed, conceived, or reduced to practice by SENSEONICS after the Effective Date that directly relates to the Products or Apps, and any intellectual property relating thereto, shall be owned solely by SENSEONICS. Such intellectual property shall not affect ROCHE’s right to distribute the Products or Apps.  
		

		
			Any inventions made, developed, conceived, or reduced to practice by ROCHE after the Effective Date that directly relates to the Products or Apps, and any intellectual property relating thereto, shall be owned solely by ROCHE. ROCHE hereby grants to SENSEONICS a nonexclusive, royalty-free, nontransferable, non-sublicenseable license to such intellectual property owned by ROCHE to the extent the intellectual property covers the first version of the Products and/or Apps supplied to ROCHE by SENSEONICS for uses in the Products and/or Apps, during the term of this Agreement. 
		

		
			ROCHE hereby grants to SENSEONICS an option to negotiate a nonexclusive, nontransferable, non-sublicenseable license to intellectual property owned by ROCHE which covers improvements of the above first version of Products and/or Apps supplied to ROCHE by SENSEONICS for uses in improved Products and/or Apps, during the term of this Agreement.
		

		
			6.3Third Party Infringement.  ROCHE shall promptly notify SENSEONICS in writing of any patent or copyright infringement or unauthorized use or misappropriation of 
		

		
			 
		

		
			
		

		
			

		 

		

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SENSEONICS trade secrets or trademarks in the Territory of which ROCHE becomes aware.  SENSEONICS shall have the exclusive right in its sole discretion to institute (and to settle) any proceedings against any Third Party relating to any such infringement or misappropriation. ROCHE shall cooperate fully with SENSEONICS in any legal action taken by SENSEONICS against such Third Parties in the Territory. Upon SENSEONICS’s request and at SENSEONICS’s expense, ROCHE shall have the right, but not the obligation, to be joined as a party plaintiff and shall cooperate in the pursuit thereof, as is reasonably necessary. SENSEONICS shall have the sole right to control prosecution of such action, but SENSEONICS shall keep ROCHE informed on a regular basis as to the status of such proceeding. Any monetary damage that will be adjudicated in favor of SENSEONICS as a result of such infringement or misappropriation shall, after deduction of reasonable attorney’s cost which remain uncompensated by the infringer, be shared equally between SENSEONICS and ROCHE if the Parties have previously agreed to share the attorneys’ fees. Otherwise all costs for such enforcement actions shall be borne by SENSEONICS and all recoveries shall be retained by SENSEONICS.
		

		
			6.4Intellectual Property Warranty and Indemnity.
		

		
			(a)As of the Effective Date, SENSEONICS represents and warrants to ROCHE that (i) to its actual knowledge based on due care, the manufacture, distribution, sale, offer for sale, marketing, import, possession or use of any of the Products or Apps does not constitute an infringement of any valid patent of any Third Party in the Territory, (ii) to its actual knowledge, with no duty of inquiry, the manufacture, distribution, sale, offer for sale, marketing, import, possession or use of any of the Products or Apps does not constitute an infringement of any valid design patent,  (iii) to its actual knowledge based on due care, the manufacture, distribution, sale, offer for sale, marketing, import, possession or use of any Product or App related marketing materials provided by SENSEONICS to ROCHE pursuant to this Agreement does not constitute an infringement of any valid copyright of any Third Party in the Territory, (iv) to its actual knowledge based on due care, the manufacture, distribution, sale, offer for sale,  marketing, import, possession or use of any of the Products or Apps under the trademarks of SENSEONICS does not constitute an infringement of any valid trademark of any Third Party in the Territory, and in each case of (i), (ii), (iii) and (iv), that no court proceeding or any other procedure for infringement of such rights is pending against SENSEONICS with respect to the Products or Apps. 
		

		
			(b)(1) In the event that the manufacture, distribution, sale, offer for sale, marketing, import, possession or use, as applicable, of the Products or Apps, is alleged to infringe Third Party intellectual property rights in the Territory or in the view of a Party there is a reasonable risk of infringement or an injunction in the Territory, the Party shall provide written notice to the other Party of such potential infringement or injunction risk without delay (“Infringement Notice”). 
		

		
			 
		

		
			
		

		
			

		 

		

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(2) Upon receipt of a preliminary injunction furnished by a court, a request for a preliminary injunction furnished by a Third Party or a court, a complaint in a litigation proceeding furnished by a Third Party or court and the aforementioned alleges or rules that the manufacture, distribution, sale, offer for sale, marketing, import, possession or use, as applicable, of the Products or Apps, by a Party infringes Third Party intellectual property rights in the Territory (all “Infringement Action”) the other Party shall be notified of the Infringement Action without delay and shall have the right to assess the risk for thirty (30) days. The Parties shall then discuss and agree on how to resolve the infringement risk or agree on its mitigation. Each Party shall have the right to suspend marketing and distributing the Products or Apps in the Territory under the following conditions: x) immediately after receipt of an Infringement Action once the other Party is informed, xx) when the Parties mutually agree on the suspension, or xxx) after expiry of the hundred and eighty (180) days from the receipt of the Infringement Notice or the Infringement Action by the other Party in the event the Parties do not agree on how to resolve the infringement risk or agree on its mitigation. In the event that either Party  exercised its above right to suspend marketing and distributing the Products or Apps in the Territory, ROCHE shall have the right to terminate the Agreement with immediate effect in which event SENSEONICS will refund the amounts paid by ROCHE to SENSEONICS for Products in ROCHE’s inventory that are returned to SENSEONICS.
		

		
			(3) Notwithstanding the thirty (30) day assessment period described above, if any action is required in response to an Infringement Action to protect a Party’s rights prior to the end of such thirty (30) day period, then such Party shall be permitted to take any such required action, provided that such Party reasonably consults with the other Party.
		

		
			(4) In the event of an Infringement Notice or Infringement Action, SENSEONICS may, in its sole discretion and at its sole expense, elect to either (i) use best efforts to promptly procure for ROCHE and its Customers the necessary rights with respect to such Products and the Apps in the Territory in accordance with this Agreement and the EULA, as applicable, (ii) use best efforts to promptly replace or modify the Products and/or Apps as quickly as possible, as applicable, so as to make the Products and Apps non-infringing, or (iii) terminate ROCHE’s and/or such Customers’ rights relating thereto by written notice effective upon receipt under the conditions x) to xxx) set forth in Section 6.4(b)(2) above.  SENSEONICS may, in its sole discretion, enter into a settlement with the Third Party, including but not limited to obtaining the rights described in (i) above.  After receipt of the Infringement Notice or Infringement Action, (A) ROCHE shall suspend marketing and distributing the Product in the Territory on its own motion under the conditions x) to xxx) set forth in Section 6.4(b)(2) above or as directed by SENSEONICS under the conditions x) to xxx) laid out in Section 6.4(b)(2) above until SENSEONICS completes either (i), (ii) or (iii) above, (B) the Minimum Requirement shall be automatically suspended for any period of time under which ROCHE is suspended from marketing and distributing the Product in the Territory and (C) ROCHE shall 
		

		
			 
		

		
			
		

		
			

		 

		

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have the option but not obligation to extend the term of the Agreement to account for any period of time under which ROCHE was suspended from marketing and distributing the Product in the Territory. If SENSEONICS terminates pursuant to (iii) above, ROCHE shall remove all Product from the market and shall cease distributing the Product in the Territory as directed by SENSEONICS.  
		

		
			(5) In the event that SENSEONICS is enjoined from making, supplying, selling, licensing, or otherwise distribution the Products or Apps in the Territory (or in the view of SENSEONICS there is a reasonable risk of infringement or an injunction in the Territory), and/or ROCHE is enjoined from selling Products or the Apps as a result of charges of infringement or misappropriation of intellectual property rights in the Territory (or in the view of ROCHE there is a reasonable risk of infringement or an injunction in the Territory), such injunction or reasonable view shall not constitute a breach of this Agreement.  
		

		
			(6) In the event the Product(s) or App(s) are enjoined in the Territory or if a Party sent an Infringement Notice to the other Party or informs the other Party about an Infringement Action, SENSEONICS shall have the right to remove such Product(s) or App(s) from Exhibit 1 and terminate ROCHE’s rights with respect thereto by written notice effective upon receipt under the conditions x) to xxx) laid out in Section 6.4(b)(2) above; in which event SENSEONICS will refund the amounts paid by ROCHE to SENSEONICS for Products in ROCHE’s inventory that are returned to SENSEONICS. 
		

		
			(7) In the event the Product(s) or App(s) are enjoined in the Territory, or if a Party received an Infringement Action, ROCHE shall have the right to terminate the Agreement with immediate effect, in which event SENSEONICS will refund the amounts paid by ROCHE to SENSEONICS for Products in ROCHE’s inventory that are returned to SENSEONICS. If SENSEONICS sent an Infringement Notice to ROCHE or if ROCHE sent an Infringement Notice to SENSEONICS, ROCHE shall have the right to terminate the Agreement i) when the Parties mutually agree on the termination, or ii) after expiry of the hundred and eighty (180) days from the receipt of an Infringement Notice or Infringement Action by the other Party in the event the Parties do not agree on how to resolve the infringement risk or agree on its mitigation, in which event SENSEONICS will refund the amounts paid by ROCHE to SENSEONICS for Products in ROCHE’s inventory that are returned to SENSEONICS.
		

		
			(c)Subject to the terms of Section 9.3, SENSEONICS shall defend, indemnify and hold harmless ROCHE against any and all claims, actions, suits, proceedings, losses, damages, liabilities, costs and expenses (including reasonable attorney’s fees) related to or resulting from a claim that the manufacture, distribution, sale, offer for sale, marketing, import, possession  or use of the Products prior to receipt of the Infringement Notice or Apps infringes any issued patent, copyright, trademark, trade secret or any other intellectual property right of any Third Party in the Territory. SENSEONICS’ maximum aggregate liability under this Section 6.4(c) shall not exceed [***]. The foregoing expresses ROCHE’s 
		

		
			 
		

		
			
		

		
			

		 

		

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sole remedy, and SENSEONICS’s sole liability, for any claim of infringement or misappropriation.
		

		
			(d)SENSEONICS shall have no liability for any infringement or misappropriation claim resulting from the use or combination of the Products or Apps with goods, materials, or services not supplied by SENSEONICS unless the Products or Apps are used or combined within the scope of the use or combination specified by the Product or the Apps. SENSEONICS shall have no liability for any infringement or misappropriation claim resulting from any modification or alteration of the Products or Apps, where such infringement or misappropriation claim results from the use, combination, modification or alteration (each an “IP Exception”).  
		

		
			6.5Trademarks. 
		

		
			The Parties recognize that any existing trade names, trademarks and copyrighted materials of either Party are the exclusive property of such Party. Any unauthorized use of such trade names, trademarks and copyrighted materials by either Party is expressly prohibited.  Notwithstanding the foregoing, during the term of this Agreement, ROCHE may use, on a royalty-free basis, the trademarks, trade names and copyrighted materials (other than software) of SENSEONICS with respect to the Products and Apps solely to carry out the distribution of Products or Apps under this Agreement and subject to the other provisions of this Agreement and any applicable SENSEONICS guidelines with respect to such intellectual property.
		

		
			6.6Protection of Rights.
		

		
			ROCHE shall not omit or alter any patent numbers, trade names, trademarks, CE marks, numbers, serial numbers or other SENSEONICS markings affixed on the Products or Apps obtained from SENSEONICS, or alter Product labeling, except with the prior written consent of SENSEONICS. SENSEONICS shall be responsible to ensure that the marking of Products or Apps complies with the law in the Territory and shall indemnify ROCHE against any claim by a Third Party which is based on false marking of the Products or Apps.
		

		
			7.              PACKAGE INSERTS AND TRADE DRESS
		

		
			7.1Package Inserts. For each of the Products, SENSEONICS will develop package inserts consistent with the forms customarily used by SENSEONICS. 
		

		
			7.2Trade Dress. ROCHE acknowledges that the Products and Apps will be marketed under SENSEONIC’s name and trade dress. ROCHE will not private label the Products or Apps without SENSEONICS’ prior written consent. However, either Party shall have the right to request good faith negotiations on a potential co-branding scenario. SENSEONICS will provide Product packaging suited for the Territory at its own cost.
		

		
			 
		

		
			
		

		
			

		 

		

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8.              CONFIDENTIALITY
		

		
			8.1Confidential Information.   “Confidential Information” of a Party shall mean all disclosures of proprietary and confidential information hereunder (i) which are in writing and clearly identified as being “Confidential”; or (ii) if disclosed orally, which are reduced to writing within thirty (30) days of oral disclosure and clearly identified as being “Confidential”. Confidential Information of SENSEONICS also includes all software, whether or not identified as “Confidential”.  Except to the extent expressly authorized by this Agreement or otherwise agreed to by the Parties in writing, during the term of this Agreement and for a period of five (5) years following the termination of this Agreement (or in perpetuity with respect to trade secrets and software source code), the receiving Party shall take such reasonable measures to maintain such Confidential Information as confidential as it takes to protect its own proprietary and Confidential Information, and shall not publish or otherwise disclose such Confidential Information or use such Confidential Information for any other purpose than for the performance of this Agreement. The following information shall not be considered Confidential Information: 
		

		
			(a)information which was already known to the receiving Party, other than under an obligation of confidentiality, at the time of disclosure by the other Party; or 
		

		
			(b)information which was generally available to the public or otherwise part of the public domain at the time of its disclosure to the receiving Party; or
		

		
			(c)information which becomes generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the receiving Party in breach of this Agreement; or
		

		
			(d)information which was disclosed to the receiving Party, other than under an obligation of confidentiality, by a Third Party who had no obligation  not to disclose such information; or
		

		
			(e)information which was developed independently without reference to or knowledge of Confidential Information received from the other Party hereunder, as evidenced by the receiving Party’s own written records.
		

		
			8.2Authorized Disclosure. Except as expressly provided otherwise in this Agreement, a receiving Party may use and disclose Confidential Information of the disclosing Party as follows: (a) to the receiving Party’s Affiliates, employees, officers, directors, agents, and/or consultants under appropriate confidentiality provisions no less stringent than those in this Agreement, in connection with the performance of its obligations or exercise of its rights under this Agreement; or (b) to the extent such disclosure is reasonably necessary in defending litigation, complying with applicable governmental regulations or otherwise 
		

		
			 
		

		
			
		

		
			

		 

		

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required by Applicable Law; provided, however, that if a receiving Party is required by Applicable Law to make any such disclosure of a disclosing Party’s Confidential Information it will, except where impracticable for necessary disclosures, for example in the event of medical emergency, give reasonable advance notice to the disclosing Party of such disclosure requirement and will use its reasonable efforts to secure confidential treatment of such Confidential Information required to be disclosed; or (c) to potential or actual acquirers, merger candidates or investors or venture capital firms, investment bankers or other financial institutions or investors, provided that in connection with such disclosure, such receiving Party shall inform each disclosee of the confidential nature of such Confidential Information and cause each disclosee to treat such Confidential Information as confidential; or (d) to the extent mutually agreed to in writing by the Parties; provided, however, that, in each of the above situations, the receiving Party shall remain responsible for any failure by any person who receives the Confidential Information pursuant to this Section 8.2 to treat such Confidential Information as required under this Article 8. No Confidential Information concerning any ROCHE Products or Apps shall be disclosed to Third Parties by SENSEONICS.
		

		
			8.3Disclosure of Agreement.   Each Party shall be permitted to disclose the terms of this Agreement, in each case under appropriate confidentiality provisions substantially equivalent to those of this Agreement, to any actual or potential investors, acquirers, merger partners, or purchasers of assets of such Party and to the professional advisors thereof.  Each Party shall give the other Party a reasonable opportunity to review all filings with any applicable securities exchange, including the United States Securities and Exchange Commission, describing the terms of this Agreement prior to submission of such filings, and shall give due consideration to any reasonable comments by the non-filing Party relating to such filing, including without limitation the provisions of this Agreement for which confidential treatment should be sought. SENSEONICS shall not be permitted to share the terms of this Agreement with other distribution partners.
		

		
			9.              INDEMNIFICATION
		

		
			9.1Indemnification by SENSEONICS. SENSEONICS shall defend, indemnify and hold ROCHE harmless against any costs, expenses, liabilities, damages, losses and harm  (including reasonable attorney’s fees) (“Losses”), arising out of or resulting from any Third Party suits, claims, actions, or demands (“Third Party Claims”), to the extent related to or resulting from: (i) SENSEONICS’s breach of any representation, warranty or guarantee set forth in this Agreement; (ii) SENSEONICS’s breach of its obligations under this Agreement and failure or inability to cure such breach in accordance with Section 10.2; or (iii) SENSEONICS’s negligence or willful misconduct with regard to SENSEONICS’s manufacture of any of the Products. 
		

		
			 
		

		
			
		

		
			

		 

		

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9.2Indemnification by ROCHE. ROCHE shall defend, indemnify and hold SENSEONICS harmless against any Losses arising out of or resulting from any Third Party Claims, to the extent related to or resulting from: (i) ROCHE’s breach of any representation, warranty or guarantee set forth in this Agreement; (ii) ROCHE’s breach of its obligations under this Agreement and failure or inability to cure such breach in accordance with Section 10.2; or (iii) ROCHE’s negligence or willful misconduct with regard to ROCHE’s using Products outside the Specifications.
		

		
			9.3Condition to Indemnification.  If either Party expects to seek indemnification under this Agreement, it shall promptly give notice to the indemnifying Party of the basis for such claim of indemnification.  If indemnification is sought as a result of any Third Party claim or suit, such notice to the indemnifying Party shall be given within fifteen (15) days after receipt by the other Party of such claim or suit; provided, however, that the failure to give notice within such time period shall not relieve the indemnifying Party of its obligation to indemnify unless it shall be materially prejudiced by the failure. Each Party shall fully cooperate with the other Party in the defense of all such claims or suits, and each Party shall be obligated to use commercially reasonable efforts to mitigate any damages for which it seeks indemnification hereunder. No offer of settlement, settlement or compromise shall be binding on a Party hereto without its prior written consent (which consent shall not be unreasonably withheld) unless such settlement fully releases such Party without any liability, loss, cost or obligation to such Party.
		

		
			9.4No Consequential Damages. EXCEPT FOR EITHER PARTY’S INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 9 OR DAMAGES AVAILABLE FOR BREACHES OF ARTICLE 8, TO THE MAXIMUM EXTENT PERMITTED UNDER APPLICABLE LAW, NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL OR CONSEQUENTIAL DAMAGES (INCLUDING LOSS OF REVENUE, PROFITS, OR DATA) ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT.
		

		
			
		

		
			

		 

		

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10.              TERM AND TERMINATION
		

		
			10.1Term and Expiration. The term of this Agreement shall commence on the Effective Date.  Unless terminated earlier in accordance with the terms hereof, this Agreement shall expire on May 31, 2018, if the Minimum Requirements defined for 2017 in Exhibit 4 are not met. In case the Minimum Requirements for 2017 are met, the Agreement shall be automatically prolonged until December 31, 2018 at which date it will then expire.  This Agreement may be terminated at any time upon mutual written agreement of the Parties. Each Party shall have the right to terminate this Agreement for cause as set out in Section 10.2.
		

		
			10.2Termination for Cause. Upon any material breach of this Agreement by either Party, the non-breaching Party may terminate this Agreement upon sixty (60) days (or thirty (30) days in the event of a payment breach) written notice to the breaching Party. The termination notice shall become effective at the end of such sixty (60) day period (or thirty (30) day period in the event of a payment breach) unless the breaching Party shall cure such breach within such period. The Parties acknowledge that any failure by ROCHE to meet the Minimum Requirement for any country(ies) within the Territory in any calendar year shall be deemed a material breach of this Agreement with respect to such country(ies) and SENSEONICS shall have the right to terminate this Agreement with respect such country(ies) unless ROCHE cures such breach within six (6) months after the end of the applicable calendar year.  Notwithstanding the foregoing, upon any breach of Section 5.4 for failure to comply with any Anti-Corruption Laws, such breach shall be deemed a material breach and the non-breaching Party may terminate this Agreement upon fifteen (15) days notice to the breaching Party.
		

		
			10.3Acquisition of SENSEONICS. If a Third Party acquires in one transaction or as a result of a series of transactions at least fifty percent (50%) of the outstanding voting common stock or equity of SENSEONICS and/or all or substantially all of the business of SENSEONICS to which this Agreement relates, whether in a merger, sale of stock, sale of assets, acquisition or other transaction (an “Acquisition Event”), SENSEONICS shall promptly notify ROCHE of such Acquisition Event (the “Notification Date”). Within seven (7) days following the Notification Date, ROCHE shall provide written notification to SENSEONICS of ROCHE’s election of either one of the following two options: (i) that ROCHE shall permit such Third Party to assume the terms of this Agreement in the place of SENSEONICS; or (ii) that ROCHE has elected to terminate this Agreement with a transition period of the shorter of (a) eighteen (18) months from the date of ROCHE’s written notice to the other Party or (b) the expiration of the term of this Agreement pursuant to Section 10.1. During the notice period, all rights and obligations of the Parties under this Agreement remain unaffected.
		

		
			
		

		
			

		 

		

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10.4Termination for Insolvency. Either Party may terminate the Agreement upon written notice to the other in the event that (a) the other Party files an insolvency petition in bankruptcy or makes a voluntary assignment in bankruptcy or petitions, applies for or acquiesces to the appointment of any receiver of all of its properties, provided that such proceeding or receiver is not discharged within sixty (60) days; (b) the adjudication of the other Party as bankrupt; (c) the admission by the other Party in writing of its inability to pay its debts as they become due; (d) the execution by the other Party of an assignment, arrangement or reorganization of its assets for the benefit of its creditors; (e) the filing by the other Party of a petition to be adjudged bankrupt, or a petition or answer admitting the material allegations of a petition filed against the other Party in any bankruptcy proceeding, or the acts of the other Party to any other judicial proceeding intended to effect a discharge of the debts of the other Party, in whole or in part; or (f) the other Party for any reason ceases to do business.
		

		
			10.5Consequences of Expiration or early Termination. Upon the expiration or early termination of this Agreement: 
		

		
			(a) Each of ROCHE and SENSEONICS’s rights and obligations under this Agreement with respect to the Territory (or, in the event of a partial termination on a country-by-country basis, the terminated country(ies) within the Territory) shall terminate.
		

		
			(b) All trademarks, marks, trade names, patents, copyrights, designs, drawings, formulas or other data, photographs, samples, literature, and sales and promotional aids of every kind relating to the Products or Apps that are SENSEONICS’ exclusive property shall remain the sole and exclusive property of SENSEONICS (or its licensors).
		

		
			(c)ROCHE shall not be released from paying any amount which may then be owed to SENSEONICS or from any obligation to pay for any Products under any accepted order from ROCHE which was not delivered prior to such termination. In the event of any termination of this Agreement, all obligations owed by ROCHE to SENSEONICS and to its Affiliates shall become due and payable within thirty (30) days of the effective date of termination.
		

		
			(d)Each Party shall return or destroy, and certify to such destruction of, all Confidential Information of the other Party, except that each Party may maintain one (1) copy for archival purposes solely to confirm compliance with the provisions of Article 8.
		

		
			(e)In the event SENSEONICS terminates this Agreement upon a material breach by ROCHE and SENSEONICS was entitled to do so, ROCHE shall not be entitled to any termination compensation, consequential damages, indemnity or other payment for goodwill, lost profits, costs related to any employee or former employee, costs of re-establishment or replacement of the business or any other expenses, or rights relating to the business established by ROCHE.  ROCHE expressly acknowledges any rights to such indemnity, 
		

		
			 
		

		
			
		

		
			

		 

		

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restitution, lost profits or compensation afforded to ROCHE by Applicable Law or custom, and to the extent permissible under Applicable Law, expressly and completely waives its rights to such benefits.
		

		
			(f)ROCHE may, but is not obligated to, purchase the Safety Stock inventory held by SENSEONICS upon expiration or any early termination of this Agreement by SENSEONICS for any reason.
		

		
			10.6Inclusive Remedy. Except as otherwise provided in this Agreement, each Party shall have the rights and remedies set forth herein in addition to any other remedies which it may have under applicable law. Each Party shall have the sole discretion to determine which of its rights and remedies, if any, it shall pursue and such Party shall not be required to exhaust any of its other rights or remedies before pursuing any one of the rights and remedies set forth in this Agreement.
		

		
			10.7Survival. Expiration or early termination of this Agreement shall not relieve either Party of its obligations incurred prior to expiration or early termination. The obligations under Sections 4.13, 5.6, 6.2 (first paragraph), 6.4(c), 6.4(d), 10.5, 10.6 and 11.7,  and Articles 7, 8, 9 and 11 of this Agreement, shall survive expiration or early termination of this Agreement or of any extensions thereof for a period of five (5) years. 
		

		
			10.8Failure to obtain CE mark. If SENSEONICS does not obtain the CE mark for the Product by September 30, 2016 this Agreement will automatically terminate thirty (30) days thereafter.
		

		
			11.              MISCELLANEOUS
		

		
			11.1Notices. All notices, requests or other communications required or permitted to be served under this Agreement to any Party shall be in writing and shall be deemed to have been sufficiently given when delivered by personal service, recognized courier providing evidence of delivery or sent by registered mail, or facsimile, to the recipient addressed as follows:
		

		
			(a)               If to ROCHE:
		

		
			Roche Diabetes Care GmbH
Sandhofer Strasse 116
68305 Mannheim
Germany
Attention: Philipp Hoffmann, Legal Counsel
		

		
			
		

		
			

		 

		

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(b)               If to SENSEONICS:
		

		
			Senseonics Incorporated
		

		
			20451 Seneca Meadows Parkway
		

		
			Germantown, MD 20876-7005
		

		
			USA
		

		
			Attention: Don Elsey, Chief Financial Officer
		

		
			All such communications shall be deemed to be effective on the day on which personally served or delivered by such courier, or, if sent by registered mail, on the fourth day following the date presented to the postal authorities for delivery to the other Party (the cancellation date stamped on the envelope being evidence of the date of such delivery), or if by facsimile, on the facsimile date. Either Party may give to the other written notice of change of address, in which event any communication shall thereafter be given to such Party as above provided at such changed address.
		

		
			11.2Assignment; Affiliates. This Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns. Notwithstanding the foregoing, no Party hereto shall have the right to assign, transfer or delegate any of its rights or obligations under this Agreement without the prior written consent of the other Party; provided, however, each Party may assign, transfer or delegate its rights and obligations, in whole or in part, under this Agreement without the consent of the other Party to any of its Affiliates or to its Third Party successor/acquiror as a result of an Acquisition Event of such Party, provided, that the foregoing does not limit Roche’s rights under Section 10.3. In the event this Agreement is assigned by a Party to its Affiliate, such Party hereby guarantees the performance by its Affiliates obligations under this Agreement, and shall cause its Affiliates to comply with the provisions of this Agreement in connection with such performance and  any breach by such Party’s Affiliate of any of its obligations under this Agreement shall be deemed a breach by such Party, and the other Party may proceed directly against such Party without any obligation to first proceed against such Party’s Affiliate.
		

		
			11.3Waivers. Any waiver by either of the Parties hereto of any rights arising from a breach of any covenants or conditions of this Agreement shall not be construed as a continuing waiver of other breaches of the same nature or other covenants or conditions of this Agreement.
		

		
			11.4No Agency, Etc. This Agreement is not intended to create, nor should it be construed as creating, an agency, joint venture, partnership or employer-employee relationship between ROCHE and SENSEONICS. Each Party shall act solely as an independent contractor and shall have no right, express or implied, to act for or to sign in the name of or bind the other Party in any way or to make quotations or to write letters under the name of the other Party or to represent that the Party is in any way responsible for any acts or omissions of such Party.
		

		
			
		

		
			

		 

		

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11.5Force Majeure. ROCHE and SENSEONICS shall not be liable for loss, damage, detention or delay resulting from any cause whatsoever beyond its reasonable control or resulting from and, including, without limitation, acts of terrorism, fire, flood, strike, lock out, civil or military authority, insurrection, war, embargo, prohibition by applicable government authority of the export/import of each of the Products and not resulting from any action or omission by SENSEONICS, container or transportation shortage or delay of SENSEONICS’s due to such causes, and delivery dates shall be extended to the extent of any delays resulting from the foregoing or similar causes. The Party so affected shall give prompt notice to the other Party of such cause, and shall take whatever reasonable steps are necessary to relieve the effort of such cause as rapidly as reasonably possible. The Party giving such notice shall thereupon be excused from such of its obligations hereunder as it is thereby disabled from performing for so long as it is so disabled; provided, however, that such affected Party shall commence and continue to take reasonable and diligent actions to cure such cause. 
		

		
			11.6Governing Law. This Agreement shall be governed by and construed in accordance with the laws of Germany absent its conflict of laws provisions. The Parties agree that the United Nations Convention on Contracts for the International Sale of Goods (1980) is specifically excluded from application to this Agreement. 
		

		
			11.7Public Announcements. The Parties agree to consult with each other regarding content and timing before issuing any press release or making any public statement with respect to this Agreement or any other transaction contemplated herein and, except as may be required by Applicable Law, shall not issue any such press release or make any such public statement prior to obtaining the written consent of the other Party.  
		

		
			11.8Disputes and Jurisdiction. All disputes which may arise between the Parties hereto in respect of this Agreement shall tried to be settled amicably through mutual consultation within thirty (30) days of a written settlement request of either Party. In the event that efforts to settle a dispute arising under this Agreement are not successful, the Parties agree to the exclusive jurisdiction of the competent courts in Hamburg, Germany, with the exclusion of any other jurisdiction or arbitration.
		

		
			11.9Exhibits. The Parties hereby agree to be bound by and fully perform the terms, conditions, representations, warranties and obligations contained in the Exhibits, attached hereto and made part hereof, as if the same were fully set forth in this Agreement. 
		

		
			11.10Severability. If any provision of this Agreement is finally held to be invalid, illegal or unenforceable by a court or agency of competent jurisdiction, that provision shall be severed or shall be modified by the Parties so as to be legally enforceable (and, to the extent modified, it shall be modified so as to reflect, to the extent possible, the intent of the Parties) 
		

		
			
		

		
			

		 

		

			31

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

and the validity, legality and enforceability of the remaining provisions shall not be affected or impaired in any way. 
		

		
			11.11Amendments. Except as otherwise expressly provided herein neither this Agreement nor any provision hereof may be amended or waived except by a written instrument signed by the Party against whom enforcement of the amendment or waiver is sought. 
		

		
			11.12Singular and Plural. Where the context hereto requires, the singular number shall be deemed to include the plural and vice-versa. 
		

		
			11.13Headings. The headings of the articles, paragraphs and subparagraphs of this Agreement have been added for the convenience of the Parties and shall not be deemed a part hereof 
		

		
			11.14Calendar Days. All references to “days” in this Agreement shall be interpreted as calendar days unless expressly stated otherwise.
		

		
			11.15Counterparts. This Agreement may be executed in any number of counterparts, all of which together shall constitute a single Agreement. 
		

		
			11.16Final Agreement. This Agreement, as of the Effective Date, is the sole understanding and agreement of the Parties hereto with respect to the subject matter hereof and supersedes all other such prior agreements and understandings.
		

		
			
		

		
			

		 

		

			32

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

IN WITNESS WHEREOF, each of the Parties has caused this Agreement to be executed by its duly authorized representative as of the Effective Date. 
		

			
					
						Senseonics Incorporated

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Tim Goodnow, Ph.D.

					
					
						 

				
	
					
						Name:

					
					
						Tim Goodnow, Ph.D.

					
					
						 

				
	
					
						Title:

					
					
						President & CEO

					
					
						 

				
	
					
						Date:

					
					
						May 24, 2016

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Roche Diagnostic International AG

					
					
						 

				
	
					
						Basel Branch Diabetes Care

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Dr. Edwin Sonnenschein

					
					
						By:

					
					
						/s/ Antonietta Pedrazzetti

				
	
					
						Name:

					
					
						Dr. Edwin Sonnenschein

					
					
						Name:

					
					
						Antonietta Pedrazzetti

				
	
					
						Title:

					
					
						Global Head Legal Diabetes Care

					
					
						Title:

					
					
						Global Head Business Development,

				
	
					
						 

					
					
						 

					
					
						Strategy and Licensing

				
	
					
						Date:

					
					
						May 23, 2016

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Roche Diabetes Care GmbH

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						ppa. /s/ Dr. Edwin Sonnenschein

					
					
						By:

					
					
						i.V. /s/ Philipp Hoffmann

				
	
					
						Name:

					
					
						Dr. Edwin Sonnenschein

					
					
						Name:

					
					
						Philipp Hoffmann

				
	
					
						Title:

					
					
						Global Head Legal Diabetes Care

					
					
						Title:

					
					
						Legal Counsel Diabetes Care

				
	
					
						Date:

					
					
						May 23, 2016

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			33

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

Exhibit List
		

		
			Exhibit 1 - Products and Apps
		

		
			Exhibit 2 – Product Specifications
		

		
			Exhibit 3 – Territory
		

		
			Exhibit 4 – Price and Minimum Requirement
		

		
			Exhibit 5 – Shipping and Pallet Guidelines
		

		
			 
		

		
			
		

		
			

		 

		

			34

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

EXHIBIT 1
		

		
			Products and Apps
		

		
			Products
		

		
			a.Eversense® Sensor – 90 day – A biosensor [***] implanted subcutaneously under the skin with a duration of up to 90 days.  
		

		
			b.Eversense® Insertion Kit—A disposable kit containing a Blunt Dissector and Insertion Tool used for the implantation of the sensor subcutaneously.  
		

		
			c.Eversense® Smart Transmitter – A reusable transmitter that wirelessly powers the sensor, calculates glucose values and sends data to the mobile app via Bluetooth Low Energy 
		

		
			d.Eversense® Adhesive Pack (30)—A 30-day supply of adhesive patch for use in securing the smart transmitter on to the skin.
		

		
			e.Eversense® Transmitter Armband – A biocompatible armband for use with securing the smart transmitter on to the skin.
		

		
			App
		

		
			a.Eversense® Mobile App – An IOS and Android-platform application used to display glucose data from the Eversense® Smart Transmitter. 
		

		
			
		

		
			

		 

		

			35

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

EXHIBIT 2
		

		
			Product Specifications
		

		
			(10 pages to follow)
		

		
			
		

		

		 

		

			36

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Sensor

					
					
						Document #:

					
					
						REQ-HRS-402

				
	
					
						Revision:

					
					
						07

				
	
					
						Effective Date:

					
					
						11/8/2015

				
	
					
						Pages:

					
					
						1 of 4

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			37

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Sensor

					
					
						Document #:

					
					
						REQ-HRS-402

				
	
					
						Revision:

					
					
						07

				
	
					
						Effective Date:

					
					
						11/8/2015

				
	
					
						Pages:

					
					
						2 of 4

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			38

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Sensor

					
					
						Document #:

					
					
						REQ-HRS-402

				
	
					
						Revision:

					
					
						07

				
	
					
						Effective Date:

					
					
						11/8/2015

				
	
					
						Pages:

					
					
						3 of 4

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			39

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Sensor

					
					
						Document #:

					
					
						REQ-HRS-402

				
	
					
						Revision:

					
					
						07

				
	
					
						Effective Date:

					
					
						11/8/2015

				
	
					
						Pages:

					
					
						4 of 4

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			40

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						1 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			41

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						2 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			
		

		

		 

		

			42

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						3 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			
		

		

		 

		

			43

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						4 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			
		

		

		 

		

			44

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						5 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			 
		

		
			
		

		

		 

		

			45

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

	
					
						Title:  Hardware Requirements Specification - Transmitter

					
					
						Document #:

					
					
						REQ-HRS-401

				
	
					
						Revision:

					
					
						08

				
	
					
						Effective Date:

					
					
						7/7/2015

				
	
					
						Pages:

					
					
						6 of 6

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			[***]
		

		
			
		

		
			

		 

		

			46

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

EXHIBIT 3
		

		
			Territory
		

		
			 
		

			
	
			
				 ·
			

			
	
			
			Germany

			
	
			
				 ·
			

			
	
			
			Italy

			
	
			
				 ·
			

			
	
			
			Netherlands

		
			 
		

		
			
		

		
			

		 

		

			47

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

EXHIBIT 4
		

		
			Price:
		

			
					
						 

					
					
						 

					
						Sensor Insertion Kit -- Includes Blunt Dissector, Insertion Tool, Insertion Template, Adhesive Patch 30-Pack (3). Insertion and Removal Instruction Guide

					
						Sensor Kit – Includes Sensor Pouch

					
						 

					
					
						 

					
						Smart Transmitter

					
						Power Supply

					
						User Guide

					
						Quick Reference Guide

					
						 

				
	
					
						 

					
					
						Eversense®

					
						Sensor Pack

					
						Contains the following:

					
						1Sensor Insertion Kit -- Includes Blunt
Dissector, Insertion Tool, Insertion 
Template, Adhesive Patch 30-Pack 
(3). Insertion and Removal Instruction 
Guide

					
						1Sensor Kit – Includes Sensor Pouch

					
					
						Eversense®

					
						Smart Transmitter

					
						Pack

					
						Contains the following:

					
						1  Smart Transmitter

					
						1Power Supply

					
						1User Guide

					
						1Quick Reference Guide

				
	
					
						Price*

					
					
						[***]

					
					
						[***]

				

		
			The prices are calculated on consistent economics: in case Sensor and/or Transmitter life is changed, the Minimum requirements for the Sensors and/or Transmitters will be adjusted accordingly.
		

		
			Minimum Requirement:
		

			
					
						 

					
					
						Eversense®

					
						Sensor Pack

					
					
						Eversense®

					
						Smart Transmitter Pack

				
	
					
						2017

					
					
						[***]

					
					
						[***]

				
	
					
						2018

					
					
						[***]

					
					
						[***]

				

		
			The Minimum Requirements defined for 2018 are to be understood on a “pro rata” basis in case the Agreement terminates on May 31, 2018.
		

		
			 
		

		
			*Conversion rate as per May 2, 2016 (1 USD = 0,8702 EUR)
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			48

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY FILED HEREWITH

		

		

			OMITS THE INFORMATION SUBJECT TO A REQUEST FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED 

		

		

			BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND 

		

		

			EXCHANGE COMMISSION.

		

 

EXHIBIT 5
		

		
			Shipping and pallet guidelines
		

		
			(10 pages to follow)
		

		
			 
		

		
			[***]
		

		
			 
		

		 

		

			49

		

		

			CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT, WHICH INCLUDE THIS AND TEN

		

		

			ADDITIONAL PAGES OF OMISSIONS. THE COPY FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A REQUEST 

		

		

			FOR CONFIDENTIAL TREATMENT. OMISSIONS ARE DESIGNATED BY [* * *]. A COMPLETE VERSION OF THIS EXHIBIT

		

		

			HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.sens_Ex10_4

		
			Exhibit 10.4
		

		
			 
		

		
			AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
		

		
			 
		

		
			THIS AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (as the same may from time to time be amended, modified, supplemented or restated, this “Agreement”) dated as of June 30, 2016 (the “Effective Date”) among OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 hereof or otherwise a party hereto from time to time including Oxford in its capacity as a Lender and SILICON VALLEY BANK, a California corporation with an office located at 3003 Tasman Drive, Santa Clara, CA 95054 (“Bank” or “SVB”) (each a “Lender” and collectively, the “Lenders”), and SENSEONICS, INCORPORATED with an office located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876 and SENSEONICS HOLDINGS, INC., a Delaware corporation (formerly ASN TECHNOLOGIES, INC., a Nevada corporation) with offices located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876 (individually and collectively, jointly and severally, “Borrower”), amends and restates in its entirety that certain Loan and Security Agreement dated as of July 31, 2014, as amended from time to time, by and among Collateral Agent, Oxford, in its capacity as a Lender, and other lenders party thereto from time to time and Borrower (the “Original Agreement”) provides the terms on which the Lenders shall lend to Borrower and Borrower shall repay the Lenders.  The parties agree as follows:
		

		
			 
		

		
			1.          ACCOUNTING AND OTHER TERMS
		

		
			 
		

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

		
			 
		

		
			2.          LOANS AND TERMS OF PAYMENT
		

		
			 
		

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

		
			 
		

		
			2.2          Term Loans.
		

		
			 
		

		
			(a)          Availability.  
		

		
			 
		

		
			(i)          Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, to make term loans to Borrower on the Effective Date in an aggregate amount of Fifteen Million Dollars ($15,000,000) according to each Lender’s Term A Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term A Loan”, and collectively as the “Term A Loans”).  After repayment, no Term A Loan may be re‐borrowed.
		

		
			 
		

		
			(ii)          Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Second Draw Period, to make term loans to Borrower in an aggregate amount up to Five Million Dollars ($5,000,000) according to each Lender’s Term B Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term B Loan”, and collectively as the “Term B Loans”).  After repayment, no Term B Loan may be re‐borrowed.
		

		
			 
		

		
			(iii)          Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Third Draw Period, to make term loans to Borrower in an aggregate amount of Five Million Dollars ($5,000,000) according to each Lender’s Term C Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term C Loan”, and collectively as the “Term C Loans”).  After repayment, no Term C Loan may be re‐borrowed.
		

		
			
		

		
			

		 

		

			1

		

 

(iv)          Subject to the terms and conditions of this Agreement, the Lenders agree, severally and not jointly, during the Fourth Draw Period, to make term loans to Borrower in an aggregate amount up to Five Million Dollars ($5,000,000) according to each Lender’s Term D Loan Commitment as set forth on Schedule 1.1 hereto (such term loans are hereinafter referred to singly as a “Term D Loan”, and collectively as the “Term D Loans”; each Term A Loan, Term B Loan, Term C Loan or Term D Loan is hereinafter referred to singly as a “Term Loan” and the Term A Loans, Term B Loans, Term C Loans and the Term D Loans are hereinafter referred to collectively as the “Term Loans”).  After repayment, no Term D Loan may be re‐borrowed.
		

		
			 
		

		
			(b)          Repayment.  Borrower shall make monthly payments of interest only commencing on the first (1st) Payment Date following the Funding Date of each Term Loan, and continuing on the Payment Date of each successive month thereafter through and including the Payment Date immediately preceding the Amortization Date.  Borrower agrees to pay, on the Funding Date of each Term Loan, any initial partial monthly interest payment otherwise due for the period between the Funding Date of such Term Loan and the first Payment Date thereof.  Commencing on the Amortization Date, and continuing on the Payment Date of each month thereafter, Borrower shall make equal monthly payments of principal, together with applicable interest, in arrears, to each Lender, as calculated by Collateral Agent (which calculations shall be deemed correct absent manifest error) based upon: (1) the amount of such Lender’s Term Loan then outstanding, (2) the effective rate of interest, as determined in Section 2.3(a), and (3) a repayment schedule with respect to the Term Loans equal to (A) thirty-six (36) months if the Term C Loans have not been made, and  (B) thirty (30) months if the Term C Loans have been made in accordance with the terms hereof.  All unpaid principal and accrued and unpaid interest with respect to each Term Loan is due and payable in full on the Maturity Date.  Each Term Loan may only be prepaid in accordance with Sections 2.2(c) and 2.2(d).
		

		
			 
		

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

		
			 
		

		
			(d)          Permitted Prepayment of Term Loans.  Borrower shall have the option to prepay all, but not less than all, of the Term Loans advanced by the Lenders under this Agreement, provided Borrower (i) provides written notice to Collateral Agent of its election to prepay the Term Loans at least ten (10) days prior to such prepayment, and (ii) pays to the Lenders on the date of such prepayment, payable to each Lender in accordance with its respective Pro Rata Share, an amount equal to the sum of (A) all outstanding principal of the Term Loans plus accrued and unpaid interest thereon through the prepayment date, (B) the Final Payment, (C) the Prepayment Fee, plus (D) all other Obligations that are due and payable, including Lenders’ Expenses and interest at the Default Rate with respect to any past due amounts.  For the avoidance of doubt, no Prepayment Fee shall be due under the Original Agreement.
		

		
			 
		

		
			2.3          Payment of Interest on the Credit Extensions.
		

		
			 
		

		
			(a)          Interest Rate.  Subject to Section 2.3(b), the principal amount outstanding under the Term Loans shall accrue interest at a floating per annum rate equal to the Basic Rate, determined by Collateral Agent on the Funding Date of each Term Loan and then monthly thereafter in accordance with the rate structures set forth in this Agreement, which interest shall be payable monthly in arrears in accordance with Sections 2.2(b) and 2.3(e). Interest shall accrue on each Term Loan commencing on, and including, the Funding Date of such Term Loan, and shall accrue on the principal amount outstanding under such Term Loan through and including the day on which such Term Loan is paid in full.
		

		
			 
		

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

		
			
		

		
			

		 

		

			2

		

 

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 Collateral Agent.
		

		
			 
		

		
			(c)          360‐Day Year.  Interest shall be computed on the basis of a three hundred sixty (360) day year, and the actual number of days elapsed.
		

		
			 
		

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

		
			 
		

		
			(e)          Payments.  Except as otherwise expressly provided herein, all payments by Borrower under the Loan Documents shall be made to the respective Lender to which such payments are owed, at such Lender’s office in immediately available funds on the date specified herein. Unless otherwise provided, interest is payable monthly on the Payment Date of each month.  Payments of principal and/or interest received after 3:00 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 is due the next Business Day and additional fees or interest, as applicable, shall continue to accrue until paid. All payments to be made by Borrower hereunder or under any other Loan Document, including payments of principal and interest, and all fees, expenses, indemnities and reimbursements, shall be made without set‐off, recoupment or counterclaim, in lawful money of the United States and in immediately available funds.
		

		
			 
		

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

		
			 
		

		
			2.5          Fees.  Borrower shall pay to Collateral Agent:
		

		
			 
		

		
			(a)          Good Faith Deposit.  An amount of Thirty Thousand Dollars ($30,000.00), which amount has been received by Collateral Agent as a good faith deposit from Borrower on or about May 19, 2016 and shall be applied towards Lenders’ Expenses incurred through the Effective Date payable pursuant to Section 2.5(f) hereof, and the balance left over, if any, shall be applied towards the Final Payment (as defined in the Original Agreement) due pursuant to Section 2.5(c) hereof.  For the purposes of clarity, Borrower shall be responsible for all Lender’s Expenses payable pursuant to Section 2.5(f) hereof and the Final Payment (as defined in the Original Agreement) due pursuant to Section 2.5(c) hereof;
		

		
			 
		

		
			(b)          Facility Fee.  The facility fee has been waived;
		

		
			 
		

		
			(c)          Original Agreement Final Payment.  On the Effective Date, the Final Payment (as defined in the Original Agreement) due to Oxford under the Original Agreement in the amount of One Million Dollars ($1,000,000.00).  For the sake of clarity, the Original Agreement Final Payment shall not reduce the Final Payment otherwise due in connection with Section 2.5(d) hereof;
		

		
			
		

		
			

		 

		

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

		
			 
		

		
			(e)          Prepayment Fee.  The Prepayment Fee, when due hereunder, to be shared between the Lenders in accordance with their respective Pro Rata Shares.  For the avoidance of doubt, no Prepayment Fee shall be due under the Original Agreement;
		

		
			 
		

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

		
			 
		

		
			(g)          Non-Utilization Fee.  A non-utilization fee, to be shared between the Lenders in accordance with their respective Pro Rata Shares, payable and due as follows: (i) if the Third Draw Period commences and Borrower fails to draw the Term C Loans hereunder, then promptly upon the termination of the Third Draw Period, an amount equal to One Hundred Thousand Dollars ($100,000.00) and (ii) if the Fourth Draw Period commences and Borrower fails to draw the Term D Loans hereunder, then at the termination of the Fourth Draw Period, an amount equal to One Hundred Thousand Dollars ($100,000.00).
		

		
			 
		

		
			2.6          Withholding.  Payments received by the Lenders from Borrower hereunder will be made free and clear of and without deduction for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed by any governmental authority (including any interest, additions to tax or penalties applicable thereto).  Specifically, however, if at any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding or deduction from any such payment or other sum payable hereunder to the Lenders, Borrower hereby covenants and agrees that the amount due from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after the making of such required withholding or deduction, each Lender receives a net sum equal to the sum which it would have received had no withholding or deduction been required and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority.  Borrower will, upon request, furnish the Lenders with proof reasonably satisfactory to the Lenders indicating that Borrower has made such withholding payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower.  The agreements and obligations of Borrower contained in this Section 2.6 shall survive the termination of this Agreement.
		

		
			 
		

		
			3.          CONDITIONS OF LOANS
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(b)          duly executed original Control Agreements with respect to any Collateral Accounts maintained by Borrower or any of its Subsidiaries;
		

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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

		
			 
		

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

		
			 
		

		
			(g)          duly executed original officer’s certificate for Borrower and each Subsidiary that is a party to the Loan Documents, in a form acceptable to Collateral Agent and the Lenders;
		

		
			 
		

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

		
			 
		

		
			(i)          a landlord’s consent executed in favor of Collateral Agent in respect of all of Borrower’s and each Subsidiaries’ leased locations;
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(l)          evidence satisfactory to Collateral Agent and the Lenders that the insurance policies required by Section 6.5 hereof are in full force and effect, together with appropriate evidence showing loss payable and/or additional insured clauses or endorsements in favor of Collateral Agent, for the ratable benefit of the Lenders; 
		

		
			 
		

		
			(m)          payment of the fees and appropriately itemized Lenders’ Expenses then due as specified in Section 2.5 hereof; and
		

		
			 
		

		
			(n)          evidence of the occurrence of the CE Mark Approval Event and the Roche Event, each of which evidence must be in such form and substance as is reasonably acceptable to Collateral Agent and each Lender.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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

		
			 
		

		
			(e)          payment of the fees and appropriately itemized Lenders’ Expenses then due as specified in Section 2.5 hereof.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			4.          CREATION OF SECURITY INTEREST
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			If this Agreement is terminated, Collateral Agent’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are repaid in full in cash.  Upon payment in full in cash of the Obligations (other than inchoate indemnity obligations) and at such time as the Lenders’ obligation to make Credit Extensions has terminated, Collateral Agent shall, at the sole cost and expense of Borrower, release its Liens in the Collateral and all rights therein shall revert to Borrower.  In the event (x) all Obligations (other than inchoate indemnity obligations), except for Bank Services, are satisfied in full, and (y) this Agreement is terminated, Bank shall terminate the security interest granted herein upon Borrower providing cash collateral acceptable to Bank in its good faith business judgment consistent with Bank’s then current practice for Bank Services, if any.  In the event such Bank Services consist of outstanding Letters of Credit, Borrower shall provide to Bank cash collateral in an 
		

		
			
		

		
			

		 

		

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amount equal to (x) if such Letters of Credit are denominated in Dollars, then one hundred five percent (105%); and (y) if such Letters of Credit are denominated in a Foreign Currency, then one hundred ten percent (110%), of the Dollar Equivalent of the face amount of all such Letters of Credit plus all interest, fees, and costs due or to become due in connection therewith (as estimated by Bank in its good faith business judgment), to secure all of the Obligations relating  to such  Letters of Credit.
		

		
			 
		

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

		
			 
		

		
			4.3          Pledge of Collateral.  Borrower hereby pledges, assigns and grants to Collateral Agent, for the ratable benefit of the Lenders, a security interest in all the Shares, together with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security for the performance of the Obligations.  On the Effective Date, or, to the extent not certificated as of the Effective Date, within ten (10) days of the certification of any Shares, the certificate or certificates for the Shares will be delivered to Collateral Agent, accompanied by an instrument of assignment duly executed in blank by Borrower.  To the extent required by the terms and conditions governing the Shares, Borrower shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect the pledge of the Shares.  Upon the occurrence and during the continuance of an Event of Default hereunder, Collateral Agent may effect the transfer of any securities included in the Collateral (including but not limited to the Shares) into the name of Collateral Agent and cause new (as applicable) certificates representing such securities to be issued in the name of Collateral Agent or its transferee.  Borrower will execute and deliver such documents, and take or cause to be taken such actions, as Collateral Agent may reasonably request to perfect or continue the perfection of Collateral Agent’s security interest in the Shares.  Unless an Event of Default shall have occurred and be continuing, Borrower shall be entitled to exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the terms of this Agreement or which would constitute or create any violation of any of such terms.  All such rights to vote and give consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default.
		

		
			 
		

		
			5.          REPRESENTATIONS AND WARRANTIES
		

		
			 
		

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

		
			 
		

		
			5.1          Due Organization, Authorization: Power and Authority.  Borrower and each of its Subsidiaries is duly existing and in good standing as a Registered Organization in its jurisdictions of organization or formation and Borrower and each of its Subsidiaries is qualified and licensed to do business and is in good standing in any jurisdiction in which the conduct of its businesses or its ownership of property requires that it be qualified except where the failure to do so could not reasonably be expected to have a Material Adverse Change In connection with the Agreement, Borrower and each of its Subsidiaries has delivered to Collateral Agent a completed perfection certificate signed by an officer of Borrower or such Subsidiary (each a “Perfection Certificate” and collectively, the “Perfection Certificates.  Borrower represents and warrants that (a) Borrower and each of its Subsidiaries’ exact legal name is that which is indicated on its respective Perfection Certificate and on the signature page of each Loan Document to which it is a party; (b) Borrower and each of its Subsidiaries is an organization of the type and is organized in the jurisdiction set forth on its respective Perfection Certificate; (c) each Perfection Certificate accurately sets forth each of Borrower’s and its Subsidiaries’ organizational identification number or accurately states that Borrower or such Subsidiary has none; (d) each Perfection Certificate accurately sets forth Borrower’s and each of its Subsidiaries’ place of business, or, if more than one, its chief executive office as well as Borrower’s and each of its Subsidiaries’ mailing address (if different than its chief executive office); (e) Borrower and each of its Subsidiaries (and each of its respective predecessors) have not, in the past five (5) years, changed its jurisdiction of organization, organizational structure or type, or any organizational number assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificates pertaining to Borrower and each of its Subsidiaries, is 
		

		
			
		

		
			

		 

		

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accurate and complete in all material respects (it being understood and agreed that Borrower and each of its Subsidiaries may from time to time update certain information in the Perfection Certificates (including the information set forth in clause (d) above) after the Effective Date to the extent permitted by one or more specific provisions in this Agreement); such updated Perfection Certificates subject to the review and approval of Collateral Agent.  If Borrower or any of its Subsidiaries is not now a Registered Organization but later becomes one, Borrower shall notify Collateral Agent of such occurrence and provide Collateral Agent with such Person’s organizational identification number within five (5) Business Days of receiving such organizational identification number.
		

		
			 
		

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

		
			 
		

		
			5.2          Collateral.
		

		
			 
		

		
			(a)          Borrower and each its Subsidiaries have good title to, have rights in, and the power to transfer each item of the Collateral upon which it purports to grant a Lien under the Loan Documents, free and clear of any and all Liens except Permitted Liens, and neither Borrower nor any of its Subsidiaries have any Deposit Accounts, Securities Accounts, Commodity Accounts or other investment accounts other than the Collateral Accounts or the other investment accounts, if any, described in the Perfection Certificates delivered to Collateral Agent in connection herewith (as the same may be updated from time to time, provided that any such updates shall be in form and substance acceptable to Collateral Agent in its sole discretion and each Lender in its sole discretion) with respect of which Borrower or such Subsidiary has given Collateral Agent notice and taken such actions as are necessary to give Collateral Agent a perfected security interest therein.  The Accounts are bona fide, existing obligations of the Account Debtors.
		

		
			 
		

		
			(b)          On the Effective Date, and except as disclosed on the Perfection Certificate (as the same may be updated from time to time, provided that any such updates shall be in form and substance acceptable to Collateral Agent in its sole discretion and each Lender in its sole discretion); (i) the Collateral is not in the possession of any third party bailee (such as a warehouse), and (ii)  no such third party bailee possesses components of the Collateral in excess of Two Hundred Fifty Thousand Dollars ($250,000.00).  None of the components of the Collateral shall be maintained at locations other than as disclosed in the Perfection Certificates on the Effective Date or as permitted pursuant to Section 6.11.
		

		
			 
		

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

		
			 
		

		
			(d)          Borrower and each of its Subsidiaries is the sole owner of the Intellectual Property each respectively purports to own, free and clear of all Liens other than Permitted Liens.  Except as noted on the Perfection Certificates, neither Borrower nor any of its Subsidiaries is a party to, nor is bound by, any material license or other material agreement with respect to which Borrower or such Subsidiary is the licensee that (i) prohibits or otherwise restricts Borrower or its Subsidiaries from granting a security interest in Borrower’s or such Subsidiaries’ interest in such material license or material agreement or any other property; or (ii) for which a default under or termination of could interfere with Collateral Agent’s or any Lender’s right to sell any Collateral.  Borrower shall provide written notice to Collateral Agent and each Lender within twenty (20) days of Borrower or any of its Subsidiaries entering into or becoming bound by any license or agreement with respect to which Borrower or any Subsidiary is the licensee (other than over‐the‐counter software that is commercially available to the public).  
		

		
			
		

		
			

		 

		

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5.3          Litigation.    Except as disclosed (i) on the Perfection Certificates, or (ii) in accordance with Section 6.9 hereof, there are no actions, suits, investigations, 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 Two Hundred Fifty Thousand Dollars ($250,000.00).
		

		
			 
		

		
			5.4          No Material Deterioration in Financial Condition; Financial Statements.  All consolidated financial statements for Borrower and its Subsidiaries, delivered to Collateral Agent fairly present, in conformity with GAAP, in all material respects the consolidated financial condition of Borrower and its Subsidiaries, and the consolidated results of operations of Borrower and its Subsidiaries as of the dates and for the periods presented.  Lender understands that interim financial statements may not be audited and may be subject to ordinary course year-end adjustments, such as for the sake of example only, changes in the fair market value of warrants.  Lender therefore understands and agrees that such financial statements are therefore considered to be in draft form and subject to adjustment.  There has not been any material deterioration in the consolidated financial condition of Borrower and its Subsidiaries since the date of the most recent financial statements submitted to any Lender.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			5.8          Tax Returns and Payments; Pension Contributions.  Borrower and each of its Subsidiaries has timely filed or filed extensions for all required tax returns and reports, and Borrower and each of its Subsidiaries, has timely paid or filed extensions for all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower and such Subsidiaries, in all jurisdictions in which Borrower or any such Subsidiary is subject to taxes, including the United States, unless such taxes are being contested in accordance with the following sentence.  Borrower and each of its Subsidiaries, may defer payment of any contested taxes, provided that Borrower or such Subsidiary, (a) in good faith contests its obligation to pay the taxes by appropriate proceedings promptly and diligently instituted and conducted, (b) notifies Collateral Agent in writing of the commencement of, and any material development in, the proceedings, and (c) posts bonds or takes any other steps required to prevent the Governmental Authority levying such contested taxes from obtaining a Lien upon any of the Collateral that is other
		

		
			
		

		
			

		 

		

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than a “Permitted Lien.”  Neither Borrower nor any of its Subsidiaries is aware of any claims or adjustments proposed in writing for any of Borrower’s or such Subsidiaries’, prior tax years which could result in additional taxes becoming due and payable by Borrower or its Subsidiaries.  Borrower and each of its Subsidiaries have paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and neither Borrower nor any of its Subsidiaries have, withdrawn from participation in, and have not permitted partial or complete termination of, or permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower or its Subsidiaries, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other Governmental Authority.
		

		
			 
		

		
			5.9          Shares.  Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation exists that would prohibit Borrower from pledging the Shares pursuant to this Agreement.  To Borrower’s knowledge, there are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable with respect to the Shares.  The Shares have been and will be duly authorized and validly issued, and are fully paid and non‐assessable.  To Borrower’s knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			5.12          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.
		

		
			 
		

		
			6.          AFFIRMATIVE COVENANTS
		

		
			 
		

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

		
			 
		

		
			6.1          Government Compliance.
		

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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6.2          Financial Statements, Reports, Certificates.
		

		
			 
		

		
			(a)          Deliver to each Lender: 
		

		
			 
		

		
			(i)          as soon as available, but no later than thirty (30) days after the last day of each month, a company prepared consolidated and consolidating balance sheet, income statement and cash flow statement covering the consolidated operations of Borrower and its Subsidiaries for such month certified by a Responsible Officer and in a form reasonably acceptable to Collateral Agent; provided, however, that all such monthly financial statements that are for either of the first two months of any fiscal quarter of Borrower shall be subject to normal quarter-end adjustments for expense accruals and warrant or derivative liabilities; 
		

		
			 
		

		
			(ii)          as soon as available, but no later than one hundred twenty (120) days after the last day of Borrower’s fiscal year or within five (5) days of filing with the SEC, 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 Collateral Agent in its reasonable discretion; 
		

		
			 
		

		
			(iii)          as soon as available after approval thereof by Borrower’s Board of Directors, but no later than forty-five (45) days after the last day of each of Borrower’s fiscal years, Borrower’s annual financial projections for the entire current fiscal year as approved by Borrower’s Board of Directors, which such annual financial projections shall be set forth in a quarterly format (such annual financial projections as originally delivered to Collateral Agent and the Lenders are referred to herein as the “Annual Projections”; provided that, any revisions of the Annual Projections approved by Borrower’s Board of Directors shall be delivered to Collateral Agent and the Lenders no later than thirty (30)  Business Days after such approval); 
		

		
			 
		

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

		
			 
		

		
			(v)          within five (5) days of filing, all reports on Form 10‐K, 10‐Q and 8‐K filed with the Securities and Exchange Commission;
		

		
			 
		

		
			(vi)          prompt notice of any amendments to the Operating Documents of Borrower or any of its Subsidiaries, or of any material changes to the capitalization table, together with any copies reflecting such amendments or changes with respect thereto; 
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(b)          Concurrently with the delivery of the financial statements specified in Section 6.2(a)(i) above but no later than thirty (30) days after the last day of each month, deliver to each Lender, a duly completed Compliance Certificate signed by a Responsible Officer.
		

		
			
		

		
			

		 

		

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

		
			 
		

		
			6.3          Inventory; Returns.  Keep all Inventory in good and marketable condition, free from material defects.  Returns and allowances between Borrower, or any of its Subsidiaries, and their respective Account Debtors shall follow Borrower’s, or such Subsidiary’s, customary practices as they exist at the Effective Date.  Borrower must promptly notify Collateral Agent and the Lenders of all returns, recoveries, disputes and claims that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00) individually or in the aggregate in any calendar year.
		

		
			 
		

		
			6.4          Taxes; Pensions.  Timely file and require each of its Subsidiaries to timely file, all required tax returns and reports or extensions therefor (which are timely filed and accepted and approved by the applicable Governmental Authority) and timely pay, and require each of its Subsidiaries to timely file, all foreign, federal, state, and local taxes, assessments, deposits and contributions owed by Borrower or its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8 hereof, and shall deliver to Lenders, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance with the terms of such plans.
		

		
			 
		

		
			6.5          Insurance.  Keep Borrower’s and its Subsidiaries’ business and the Collateral insured for risks and in amounts standard for companies in Borrower’s and its Subsidiaries’ industry and location and as Collateral Agent may reasonably request.  Insurance policies shall be in a form, with companies, and in amounts that are reasonably satisfactory to Collateral Agent and Lenders.  All property policies shall have a lender’s loss payable endorsement showing Collateral Agent as lender loss payee and waive subrogation against Collateral Agent, and all liability policies shall show, or have endorsements showing, Collateral Agent, as additional insured.  The Collateral Agent shall be named as lender loss payee and/or additional insured with respect to any such insurance providing coverage in respect of any Collateral, and each provider of any such insurance shall agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to the Collateral Agent, that it will give the Collateral Agent twenty (20) days prior written notice before any such policy or policies shall be materially altered or canceled, and ten (10) days prior written notice due cancellation for non-payment of premium.  At Collateral Agent’s request, Borrower shall deliver certified copies of policies and evidence of all premium payments.  Proceeds payable under any policy shall, at Collateral Agent’s option, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations.  Notwithstanding the foregoing, (a) so long as no Event of Default has occurred and is continuing, Borrower shall have the option of applying the proceeds of any casualty policy up to Five Hundred Thousand Dollars ($500,000.00) with respect to any loss, but not exceeding Five Hundred Thousand Dollars ($500,000.00), in the aggregate for all losses under all casualty policies in any one year, toward the replacement or repair of destroyed or damaged property; provided that any such replaced or repaired property (i) shall be of equal or like value as the replaced or repaired Collateral and (ii) shall be deemed Collateral in which Collateral Agent has been granted a first priority security interest, and (b) after the occurrence and during the continuance of an Event of Default, all proceeds payable under such casualty policy shall, at the option of Collateral Agent, be payable to Collateral Agent, for the ratable benefit of the Lenders, on account of the Obligations.  If Borrower or any of its Subsidiaries fails to obtain insurance as required under this Section 6.5 or to pay any amount or furnish any required proof of payment to third persons, Collateral Agent and/or any Lender may make, at Borrower’s expense, all or part of such payment or obtain such insurance policies required in this Section 6.5, and take any action under the policies Collateral Agent or such Lender deems prudent.
		

		
			 
		

		
			6.6          Operating Accounts.
		

		
			 
		

		
			(a)          Maintain all of Borrower’s and its Subsidiaries’ Collateral Accounts, excess cash, letters of credit, cash management services, foreign exchange services and merchant services with Bank or its Affiliates in accounts which are subject to a Control Agreement in favor of Collateral Agent (except as provided in subsections (b) or (d) below).
		

		
			
		

		
			

		 

		

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(b)          Borrower shall provide Collateral Agent five (5) days’ prior written notice before Borrower or any of its Subsidiaries establishes any Collateral Account at or with any Person other Bank or its Affiliates.  In addition, for each Collateral Account that Borrower or any of its Subsidiaries, at any time maintains, Borrower or such Subsidiary shall cause the applicable bank or financial institution at or with which such Collateral Account is maintained to execute and deliver a Control Agreement or other appropriate instrument with respect to such Collateral Account to perfect Collateral Agent’s Lien in such Collateral Account in accordance with the terms hereunder prior to the establishment of such Collateral Account, which Control Agreement may not be terminated without prior written consent of Collateral Agent.  The provisions of this Section 6.6 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, or any of its Subsidiaries’, employees and identified to Collateral Agent by Borrower as such in the Perfection Certificates.  Collateral Agent agrees not to place a “hold” or deliver a notice of exclusive control, entitlement order, or other similar directions or instructions under any Control Agreement or similar agreements providing control of any Collateral unless an Event of Default has occurred.
		

		
			 
		

		
			(c)          Neither Borrower nor any of its Subsidiaries shall maintain any Collateral Accounts except Collateral Accounts maintained in accordance with Sections 6.6(a), (b) and (d).
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			6.9          Notices of Litigation and Default.  Borrower will give prompt written notice to Collateral Agent and the Lenders of any litigation or governmental proceedings pending or threatened (in writing) against Borrower or any of its Subsidiaries, which could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of Two Hundred Fifty Thousand Dollars ($250,000.00) or more or which could reasonably be expected to have a Material Adverse Change.  Without limiting or contradicting any other more specific provision of this Agreement, promptly (and in any event within five (5) Business Days) upon Borrower becoming aware of the existence of any Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default, Borrower shall give written notice to Collateral Agent and the Lenders of such occurrence, which such notice shall include a reasonably detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default.
		

		
			 
		

		
			6.10          Intentionally Omitted.
		

		
			 
		

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

		
			 
		

		
			6.12          Creation/Acquisition of Subsidiaries.  In the event Borrower, or any of its Subsidiaries creates or acquires any Subsidiary, Borrower shall provide prior written notice to Collateral Agent and each Lender of the creation or acquisition of such new Subsidiary and take all such action as may be reasonably required by Collateral 
		

		
			
		

		
			

		 

		

			13

		

 

Agent or any Lender to cause each such Subsidiary to become a co‐Borrower hereunder or to guarantee the Obligations of Borrower under the Loan Documents and, in each case, grant a continuing pledge and security interest in and to the assets of such Subsidiary (substantially as described on Exhibit A hereto); and Borrower (or its Subsidiary, as applicable) shall grant and pledge to Collateral Agent, for the ratable benefit of the Lenders, a perfected security interest in the Shares of such newly created Subsidiary.
		

		
			 
		

		
			6.13          Further Assurances.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			7.          NEGATIVE COVENANTS
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			7.2          Changes in Business, Management, Ownership, or Business Locations.  (a) Engage in or permit any of its Subsidiaries to engage in any business other than the businesses engaged in by Borrower as of the Effective Date or reasonably related thereto; (b) liquidate or dissolve; or (c) (i) any Key Person shall cease to be employed by Borrower unless written notice thereof is provided to Collateral Agent within five (5) Business Days of such change, or (ii) suffer or permit a Change in Control.  Borrower shall not, without at least twenty (20) days’ prior written notice to Collateral Agent: (A) add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than Two Hundred Fifty Thousand Dollars ($250,000.00) in assets or property of Borrower or any of its Subsidiaries); (B) change its jurisdiction of organization, (C) change its organizational structure or type, (D) change its legal name, or (E) change any organizational number (if any) assigned by its jurisdiction of organization.
		

		
			 
		

		
			7.3          Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock, shares or property of another Person other than pursuant to a Permitted Acquisition.  A Subsidiary may merge or consolidate into another Subsidiary (provided such surviving Subsidiary is a “co‐Borrower” hereunder or has provided a secured guaranty of Borrower’s Obligations hereunder) or with (or into) Borrower provided Borrower is the surviving legal entity, and as long as no Event of Default is occurring prior thereto or arises as a result therefrom.  Without limiting the foregoing, Borrower shall not, without Collateral Agent’s prior written consent, enter into any binding contractual arrangement with any Person to attempt to facilitate a merger or acquisition of Borrower, unless (i) no Event of Default exists when such agreement is entered into by Borrower, (ii) such agreement does not give such Person the right to claim any fees, payments or damages from Borrower in excess of Two Hundred Fifty Thousand Dollars ($250,000), and (iii) Borrower notifies Collateral Agent in advance of entering into such an agreement.
		

		
			 
		

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

		
			
		

		
			

		 

		

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7.5          Encumbrance.  Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to be subject to the first priority security interest granted herein (except for Permitted Liens that are permitted by the terms of this Agreement to have priority over Collateral Agent’s Lien), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Collateral Agent, for the ratable benefit of the Lenders) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower, or any of its Subsidiaries, from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s or such Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein.
		

		
			 
		

		
			7.6          Maintenance of Collateral Accounts.  Maintain any Collateral Account except pursuant to the terms of Section 6.6 hereof.
		

		
			 
		

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

		
			 
		

		
			7.8          Transactions with Affiliates.  Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower or any of its Subsidiaries, except for (a) transactions that are in the ordinary course of Borrower’s or such Subsidiary’s business, upon fair and reasonable terms that are no less favorable to Borrower or such Subsidiary than would be obtained in an arm’s length transaction with a non‐affiliated Person, (b) Subordinated Debt or equity investments by Borrower’s investors in Borrower or its Subsidiaries, (c) any transaction contemplated in Section 7.1, (d) compensation and indemnification of, and other employment arrangements with, directors, officers and employees of Borrower or any Subsidiary entered into in the ordinary course of business in accordance with Borrower’s Annual Projections and corporate governance practices, and (e) loans and advances otherwise explicitly permitted hereunder to be made to the applicable Affiliate.
		

		
			 
		

		
			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 maximum amount thereof, or adversely affect the subordination thereof to Obligations owed to the Lenders.
		

		
			 
		

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

		
			 
		

		
			7.11          Compliance with Anti‐Terrorism Laws.  Collateral Agent hereby notifies Borrower and each of its Subsidiaries that pursuant to the requirements of Anti‐Terrorism Laws, and Collateral Agent’s policies and practices, Collateral Agent is required to obtain, verify and record certain information and documentation that identifies Borrower and each of its Subsidiaries and their principals, which information includes the name and address of Borrower and each of its Subsidiaries and their principals and such other information that will allow Collateral Agent to identify such party in accordance with Anti‐Terrorism Laws.  Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter into any documents, instruments, agreements or contracts with any Person listed on the OFAC 
		

		
			
		

		
			

		 

		

			15

		

 

Lists.  Borrower and each of its Subsidiaries shall immediately notify Collateral Agent if Borrower or such Subsidiary has knowledge that Borrower, or any Subsidiary or Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or predicate crimes to money laundering.  Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any Blocked Person, including, without limitation, the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224 or any similar executive order or other Anti‐Terrorism Law, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other Anti‐Terrorism Law.
		

		
			 
		

		
			8.          EVENTS OF DEFAULT
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			8.2          Covenant Default.
		

		
			 
		

		
			(a)          Borrower or any of its Subsidiaries fails or neglects to perform any obligation in Sections 6.2 (Financial Statements, Reports, Certificates), 6.4 (Taxes), 6.5 (Insurance), 6.6 (Operating Accounts), 6.7 (Protection of Intellectual Property Rights), 6.9 (Notice of Litigation and Default), 6.11 (Landlord Waivers; Bailee Waivers) or 6.12 (Creation/Acquisition of Subsidiaries) or Borrower violates any covenant in Section 7; or
		

		
			 
		

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

		
			 
		

		
			8.3          Material Adverse Change.  A Material Adverse Change occurs;
		

		
			 
		

		
			8.4          Attachment; Levy; Restraint on Business.
		

		
			 
		

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

		
			
		

		
			

		 

		

			16

		

 

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

		
			 
		

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

		
			 
		

		
			8.6          Other Agreements.  There is a default in any agreement to which Borrower or any of its Subsidiaries is a party with a third party or parties resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount in excess of Two Hundred Fifty Thousand Dollars ($250,000.00) or that could reasonably be expected to have a Material Adverse Change;
		

		
			 
		

		
			8.7          Judgments.  One or more judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at least Two Hundred Fifty Thousand Dollars ($250,000.00) (not covered by independent third‐party insurance as to which liability has been accepted by such insurance carrier) shall be rendered against Borrower or any of its Subsidiaries and shall remain unsatisfied, unvacated, or unstayed for a period of ten (10) days after the entry thereof (provided that no Credit Extensions will be made prior to the satisfaction, vacation, or stay of such judgment, order or decree);
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			8.10          [Reserved.]
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			8.13          Delisting. The shares of common stock of Borrower are delisted from NYSE-MKT because of failure to comply with continued listing standards thereof or due to a voluntary delisting which results in such shares not being listed on any other nationally recognized stock exchange in the United States having listing standards at least as restrictive as the NYSE-MKT.
		

		
			 
		

		
			9.          RIGHTS AND REMEDIES
		

		
			 
		

		
			9.1          Rights and Remedies.
		

		
			 
		

		
			(a)          Upon the occurrence and during the continuance of an Event of Default, Collateral Agent may, and at the written direction of Required Lenders shall, without notice or demand, do any or all of the 
		

		
			
		

		
			

		 

		

			17

		

 

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

			18

		

 

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(ix)          terminate any FX Contracts.
		

		
			 
		

		
			Notwithstanding any provision of this Section 9.1 to the contrary, upon the occurrence of any Event of Default, Collateral Agent shall have the right to exercise any and all remedies referenced in this Section 9.1 without the written consent of Required Lenders following the occurrence of an Exigent Circumstance.  As used in the immediately preceding sentence, “Exigent Circumstance” means any event or circumstance that, in the reasonable judgment of Collateral Agent, imminently threatens the ability of Collateral Agent to realize upon all or any material portion of the Collateral, such as, without limitation, fraudulent removal, concealment, or abscondment thereof, destruction or material waste thereof, or failure of Borrower or any of its Subsidiaries after reasonable demand to maintain or reinstate adequate casualty insurance coverage, or which, in the judgment of Collateral Agent, could reasonably be expected to result in a material diminution in value of the Collateral.
		

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

			19

		

 

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

			20

		

 

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

		
			 
		

		
			10.          NOTICES
		

		
			 
		

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

		
			 
		

			
					
						If to Borrower:

					
					
						SENSEONICS HOLDINGS, INC.

					
						SENSEONICS, INCORPORATED

					
						20451 Seneca Meadows Parkway

					
						Germantown, Maryland 20876

					
						Attn: Tim Goodnow, President and Chief Executive Officer

					
						Fax:  (301) 515-0988

					
						Email: tim.goodnow@senseonics.com

				
	
					
						 

					
					
						 

				
	
					
						with a copy (which shall not constitute notice) to:

					
					
						COOLEY LLP

					
						One Freedom Square

					
						Reston Town Center

					
						11951 Freedom Drive

					
						Reston, Virginia 20190-5656

					
						Attn: Christian Plaza

					
						Fax:  (703) 456-8100

					
						Email: cplaza@cooley.com

				
	
					
						 

					
					
						 

				
	
					
						If to Collateral Agent:

					
					
						OXFORD FINANCE LLC

					
						133 North Fairfax Street

					
						Alexandria, Virginia 22314

					
						Attention: Legal Department

					
						Fax: (703) 519‐5225

					
						Email: LegalDepartment@oxfordfinance.com

				
	
					
						 

					
					
						 

				
	
					
						with a copy (which shall not constitute notice) to:

					
					
						Greenberg Traurig, LLP

					
						One International Place

					
						Boston, MA 02110

					
						Attn: Jonathan Bell, Esq.

					
						Fax: (617) 310‐6001

					
						Email: bellj@gtlaw.com

				
	
					
						 

					
					
						 

				
	
					
						If to SVB:

					
					
						SILICON VALLEY BANK

					
						3475 Piedmont Road, NE, Suite 560

					
						Atlanta, GA 30305

					
						Attn: Scott McCarty

					
						Fax:  (404) 467-4467

				

		 

		

			21

		

 

	
					
						 

					
					
						Email: smccarty@svb.com

				
	
					
						 

					
					
						 

				
	
					
						with a copy (which shall not constitute notice) to:

					
					
						DLA Piper LLP (US)

					
						4365 Executive Drive, Suite 1100

					
						San Diego, California 92121‐2133

					
						Attn: Troy Zander

					
						Fax: (858) 638‐5086

					
						Email: troy.zander@dlapiper.com

				

		
			 
		

		
			11.          CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			12.          GENERAL PROVISIONS
		

		
			 
		

		
			12.1          Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party.  Borrower may not transfer, pledge or assign this Agreement or any rights or obligations under it without Collateral Agent’s and each Lender’s prior written consent (which may be granted or withheld in Collateral Agent’s and each Lender’s discretion, subject to Section 12.6).  The Lenders have the right, without the consent of or notice to Borrower, to sell, transfer, assign, pledge, negotiate, or grant participation in (any such sale, transfer, assignment, negotiation, or grant of a participation, a “Lender Transfer”) all or any part of, or any interest in, the Lenders’ obligations, rights, and benefits under this Agreement and the other Loan Documents; provided,  however, that any such Lender Transfer (other than a transfer, pledge, sale or assignment to an Eligible Assignee) of its obligations, rights, and benefits under this Agreement and the other Loan Documents shall require the prior written consent of the Required Lenders (such approved assignee, an “Approved Lender”).  Borrower and Collateral Agent shall be entitled to continue to deal solely and directly with such Lender in connection with the interests so assigned until Collateral Agent shall have received and accepted an effective assignment agreement in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee or Approved Lender as Collateral Agent reasonably shall require.  Notwithstanding anything to the contrary contained herein, so long as no Event of Default has occurred and is continuing, no Lender Transfer (other than a Lender Transfer (i) in respect of the 
		

		
			
		

		
			

		 

		

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Warrants or (ii) in connection with (x) assignments by a Lender due to a forced divestiture at the request of any regulatory agency; or (y) upon the occurrence of a default, event of default or similar occurrence with respect to a Lender’s own financing or securitization transactions) shall be permitted, without Borrower’s consent, to any Person which is an Affiliate or Subsidiary of Borrower, a direct competitor of Borrower or a vulture hedge fund, each as determined by Collateral Agent in its reasonable good faith business discretion.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(iii)          no such amendment, waiver or other modification shall, unless signed by all the Lenders directly affected thereby, (A) reduce the principal of, rate of interest on or any fees with respect to any Term Loan or forgive any principal, interest (other than default interest) or fees (other than late charges) with respect to any Term Loan (B) postpone the date fixed for, or waive, any payment of principal of any Term Loan or of 
		

		
			
		

		
			

		 

		

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interest on any Term Loan (other than default interest) or any fees provided for hereunder (other than late charges or for any termination of any commitment); (C) change the definition of the term “Required Lenders” or the percentage of Lenders which shall be required for the Lenders to take any action hereunder; (D) release all or substantially all of any material portion of the Collateral, authorize Borrower to sell or otherwise dispose of all or substantially all or any material portion of the Collateral or release any guarantor of all or any portion of the Obligations or its guaranty obligations with respect thereto, except, in each case with respect to this clause (D), as otherwise may be expressly permitted under this Agreement or the other Loan Documents (including in connection with any disposition permitted hereunder); (E) amend, waive or otherwise modify this Section 12.6 or the definitions of the terms used in this Section 12.6 insofar as the definitions affect the substance of this Section 12.6; (F) consent to the assignment, delegation or other transfer by Borrower of any of its rights and obligations under any Loan Document or release Borrower of its payment obligations under any Loan Document, except, in each case with respect to this clause (F), pursuant to a merger or consolidation permitted pursuant to this Agreement; (G) amend any of the provisions of Section 9.4 or amend any of the definitions of Pro Rata Share, Term Loan Commitment, Commitment Percentage or that provide for the Lenders to receive their Pro Rata Shares of any fees, payments, setoffs or proceeds of Collateral hereunder; (H) subordinate the Liens granted in favor of Collateral Agent securing the Obligations; or (I) amend any of the provisions of Section 12.10.  It is hereby understood and agreed that all Lenders shall be deemed directly affected by an amendment, waiver or other modification of the type described in the preceding clauses (C), (D), (E), (F), (G) and (H) of the preceding sentence;
		

		
			 
		

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

		
			 
		

		
			(b)          Other than as expressly provided for in Section 12.6(a)(i)‐(iii), Collateral Agent may, if requested by the Required Lenders, from time to time designate covenants in this Agreement less restrictive by notification to a representative of Borrower.
		

		
			 
		

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

		
			 
		

		
			12.7          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          Termination Prior to Maturity Date; Survival.    So long as the Collateral Agent and Lenders agree that Borrower has indefeasibly satisfied the Obligations, in full, in cash (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement, and any Obligations under Bank Services Agreements that are cash collateralized in accordance with Section 4.1 of this Agreement), this Agreement may be terminated prior to the Maturity Date by Borrower, effective five (5) Business Days after written notice of termination is given to Collateral Agent and the Lenders.    All covenants, representations and warranties made in this Agreement continue in full force and effect until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms, are to survive the termination of this Agreement) have been satisfied.  Without limiting the foregoing, except as otherwise provided in Section 4.1, the grant of security interest by Borrower in Section 4.1 shall survive until the termination of all Bank Services Agreements.  The obligation of Borrower in Section 12.2 to indemnify each Lender and Collateral Agent, as well as the confidentiality provisions in Section 12.9 below, shall survive until the statute of limitations with respect to such claim or cause of action shall have run.
		

		
			 
		

		
			12.9          Confidentiality.  In handling any confidential information of Borrower, the Lenders and Collateral Agent shall exercise the same degree of care that it exercises for their own proprietary information, but disclosure of information may be made: (a) subject to the terms and conditions of this Agreement, to the Lenders’ and Collateral Agent’s Subsidiaries or Affiliates, or in connection with a Lender’s own financing or securitization transactions and upon the occurrence of a default, event of default or similar occurrence with respect to such 
		

		
			
		

		
			

		 

		

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financing or securitization transaction; (b) to prospective transferees (other than those identified in (a) above) or purchasers of any interest in the Credit Extensions (provided, however, the Lenders and Collateral Agent shall, except upon the occurrence and during the continuance of an Event of Default, obtain such prospective transferee’s or purchaser’s agreement to the terms of this provision or to similar confidentiality terms); (c) as required by law, regulation, subpoena, or other order; (d) to Lenders’ or Collateral Agent’s regulators or as otherwise required in connection with an examination or audit; (e) as Collateral Agent reasonably considers appropriate in exercising remedies under the Loan Documents; and (f) to third party service providers of the Lenders and/or Collateral Agent so long as such service providers have executed a confidentiality agreement with the Lenders and Collateral Agent with terms no less restrictive than those contained herein. Confidential information does not include information that either: (i) is in the public domain or in the Lenders’ and/or Collateral Agent’s possession when disclosed to the Lenders and/or Collateral Agent, or becomes part of the public domain after disclosure to the Lenders and/or Collateral Agent; or (ii) is disclosed to the Lenders and/or Collateral Agent by a third party, if the Lenders and/or Collateral Agent does not know that the third party is prohibited from disclosing the information.  Collateral Agent and the Lenders may use confidential information for any purpose, including, without limitation, for the development of client databases, reporting purposes, and market analysis, so long as Collateral Agent and Lenders do not disclose Borrower’s identity or the identity of any person associated with Borrower unless otherwise expressly permitted by this Agreement.  The agreements provided under this Section 12.9 supersede all prior agreements, understanding, representations, warranties, and negotiations between the parties about the subject matter of this Section 12.9.
		

		
			 
		

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

		
			 
		

		
			12.11          Silicon Valley Bank as Agent.  Collateral Agent hereby appoints SVB as its agent (and SVB hereby accepts such appointment) for the purpose of perfecting Collateral Agent’s Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected by possession or control, including without limitation, all Deposit Accounts maintained at SVB.
		

		
			 
		

		
			12.12          Cooperation of Borrower.  If necessary, Borrower agrees to (i) execute any documents (including new Secured Promissory Notes) reasonably required to effectuate and acknowledge each assignment of a Term Loan Commitment or Loan to an assignee in accordance with Section 12.1, (ii) make Borrower’s management available to meet with Collateral Agent and prospective participants and assignees of Term Loan Commitments or Credit Extensions (which meetings shall be conducted no more often than once  every twelve months unless an Event of Default has occurred and is continuing), and (iii) provide Collateral Agent or the Lenders such information regarding the financial affairs of Borrower as any prospective participant or assignee of a Term Loan Commitment or Term Loan reasonably may request, in each case provided such assignment is in accordance with Section 12.1. Subject to the provisions of Section 12.9, Borrower authorizes each Lender to disclose to any prospective participant or assignee of a Term Loan Commitment, any and all information in such Lender’s possession concerning Borrower and its financial affairs which has been delivered to such Lender by or on behalf of Borrower pursuant to this Agreement, or which has been delivered to such Lender by or on behalf of Borrower in connection with such Lender’s credit evaluation of Borrower prior to entering into this Agreement.
		

		
			 
		

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

		
			
		

		
			

		 

		

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each Borrower hereunder directly received all Credit Extensions.  Each Borrower waives (a) any suretyship defenses available to it under the Code or any other applicable law, and (b) any right to require Collateral Agent or any Lender to: (i) proceed against any Borrower or any other person; (ii) proceed against or exhaust any security; or (iii) pursue any other remedy.  Collateral Agent and or any Lender may exercise or not exercise any right or remedy it has against any Borrower or any security it holds (including the right to foreclose by judicial or non‐judicial sale) without affecting any Borrower’s liability.  Notwithstanding any other provision of this Agreement or other related document, each Borrower irrevocably waives all rights that it may have at law or in equity (including, without limitation, any law subrogating Borrower to the rights of Collateral Agent and the Lenders under this Agreement) to seek contribution, indemnification or any other form of reimbursement from any other Borrower, or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise and all rights that it might have to benefit from, or to participate in, any security for the Obligations as a result of any payment made by Borrower with respect to the Obligations in connection with this Agreement or otherwise.  Any agreement providing for indemnification, reimbursement or any other arrangement prohibited under this Section shall be null and void.  If any payment is made to a Borrower in contravention of this Section, such Borrower shall hold such payment in trust for Collateral Agent and the Lenders and such payment shall be promptly delivered to Collateral Agent for application to the Obligations, whether matured or unmatured.
		

		
			 
		

		
			12.14          Effect of Amendment and Restatement.  Except as otherwise set forth herein, this Agreement is intended to and does completely amend and restate, without novation, the Original Agreement.  All security interests granted under the Original Agreement are hereby confirmed and ratified and shall continue to secure all Obligations under this Agreement.  All promissory notes issued pursuant to Advances made under the Original Agreement shall terminate and no longer be in force or effect upon the issuance of Secured Promissory Notes for Term A Loans to Oxford hereunder and the receipt by Oxford of the funds set forth on the Disbursement Letter for the Term A Loans, and Collateral Agent shall return such original notes to Borrower marked “cancelled”.
		

		
			 
		

		
			13.          DEFINITIONS
		

		
			 
		

		
			13.1          Definitions.  As used in this Agreement, the following 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.
		

		
			 
		

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

		
			 
		

		
			“Agreement” is defined in the preamble hereof.
		

		
			 
		

		
			“Amortization Date” is, July 1, 2017, if the Term C Loans are not made, and January 1, 2018, if the Term C Loans are made hereunder.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Approved Fund” is any (i) investment company, fund, trust, securitization vehicle or conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business or (ii) any Person (other than a natural person) which temporarily 
		

		
			
		

		
			

		 

		

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warehouses loans for any Lender or any entity described in the preceding clause (i) and that, with respect to each of the preceding clauses (i) and (ii), is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) a Person (other than a natural person) or an Affiliate of a Person (other than a natural person) that administers or manages a Lender.
		

		
			 
		

		
			“Approved Lender” is defined in Section 12.1.
		

		
			 
		

		
			“Bank” is defined in the preamble hereof.
		

		
			 
		

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

		
			 
		

		
			“Basic Rate” is with respect to the Term Loans, the per annum rate of interest (based on a year of three hundred sixty (360) days) equal to the sum of (a) the greater of (i) the ninety (90) day U.S. DOLLAR LIBOR rate reported in The Wall Street Journal on the last Business Day of the month that immediately precedes the month in which the interest will accrue and (ii) sixty-four hundredths percent (0.64%) plus (b) Six and thirty-one hundredths percent (6.31%).  Notwithstanding the foregoing, the Basic Rate for the Term Loan for the period from the Effective Date through and including June 30, 2016 shall be [___] percent ([___]%).
		

		
			 
		

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

		
			 
		

		
			“Borrower” is defined in the preamble hereof.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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municipal bonds with a long‐term nominal maturity for which the interest rate is reset through a dutch auction and more commonly referred to as an auction rate security (each, an “Auction Rate Security”).
		

		
			 
		

		
			“CE Mark Approval Event” means the receipt by Borrower of approval for CE Mark, on or before Effective Date (provided that no Event of Default shall have occurred and be continuing when Borrower received such approval) and the receipt by Collateral Agent and each Lender of evidence thereof that is reasonably acceptable to Collateral Agent and each Lender on or before such date.
		

		
			 
		

		
			“Change in Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of securities of Borrower, representing fifty percent (50%) or more of the combined voting power of Borrower’s then outstanding securities; or (b) during any period of twelve consecutive calendar months, individuals who at the beginning of such period constituted the Board of Directors of Borrower (together with any new directors whose election by the Board of Directors of Borrower was approved by a vote of not less than a majority of the directors then still in office who either were directors at the beginning of such period  or whose election or nomination for election was previously so approved) cease for any reason other than death or disability to constitute a majority of the directors then in office.
		

		
			 
		

		
			“Claims” are defined in Section 12.2.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Collateral Account” is any Deposit Account, Securities Account, or Commodity Account, or any other bank account maintained by Borrower or any Subsidiary at any time.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Communication” is defined in Section 10.
		

		
			 
		

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

		
			 
		

		
			“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 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 
		

		
			
		

		
			

		 

		

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primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Credit Extension” is any Term Loan or any other extension of credit by Collateral Agent or Lenders for Borrower’s benefit.
		

		
			 
		

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

		
			 
		

		
			“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 3300887858, maintained with Silicon Valley Bank.
		

		
			 
		

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

		
			 
		

		
			“Dollars,” “dollars” and “$” each mean 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.
		

		
			 
		

		
			“Domestic Subsidiary” is any Subsidiary of Borrower (and its subsidiaries) that is not a Foreign Subsidiary.
		

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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Person or party providing such financing or formed to undertake such securitization transaction and any transferee of such Person or party upon the occurrence of a default, event of default or similar occurrence with respect to such financing or securitization transaction; provided that no such sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its obligations hereunder or substitute any such Person or party for such Lender as a party hereto until Collateral Agent shall have received and accepted an effective assignment agreement from such Person or party in form satisfactory to Collateral Agent executed, delivered and fully completed by the applicable parties thereto, and shall have received such other information regarding such Eligible Assignee as Collateral Agent reasonably shall require.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Event of Default” is defined in Section 8.
		

		
			 
		

		
			“FDA” is United States Food and Drug Administration.
		

		
			 
		

		
			“Final Payment”  is a payment (in addition to and not a substitution for the regular monthly payments of principal plus accrued interest) due on the earliest to occur of (a) the Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d), equal to the original principal amount of such Term Loan multiplied by the Final Payment Percentage, payable to Lenders in accordance with their respective Pro Rata Shares.
		

		
			 
		

		
			“Final Payment Percentage” is Nine percent (9.00%).
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Fourth Draw Period” is the period commencing on the later of (i) the occurrence of the Revenue Event (ii) the Funding Date of the Term C Loans and (iii) the PMA Approval Event, and ending on the earlier of (i) the date that is thirty (30) days immediately after the date of the commencement of the Fourth Draw Period,  (ii) December 31, 2017, and (iii) the occurrence of an Event of Default unless such Event of Default is waived by, or cured to the satisfaction of, each Lender in such Lender’s sole discretion;; provided, however, that the Fourth Draw Period shall not commence if on the date of the occurrence of the Revenue Event or the date of the occurrence of the PMA Approval Event, an Event of Default has occurred and is continuing; provided, further, that the Fourth Draw Period shall not commence if Term C Loans have not made hereunder, the Revenue Event has not occurred or the PMA Approval Event has not occurred.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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

		
			 
		

		
			“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.
		

		
			 
		

		
			“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.
		

		
			 
		

		
			“Insolvent” means not Solvent.
		

		
			 
		

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

		
			 
		

		
			(a)          its Copyrights, Trademarks and Patents, and applications therefor and reissues, extensions, or renewals thereof, together with rights to sue for past, present and future infringement of Intellectual Property;
		

		
			 
		

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

		
			 
		

		
			(b)          any and all source code;
		

		
			 
		

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

		
			 
		

		
			(d)          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
		

		
			 
		

		
			(e)          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,
		

		
			
		

		
			

		 

		

			31

		

 

packing and shipping materials, work in process and finished products, including without limitation such inventory as is temporarily out of any Person’s custody or possession or in transit and including any returned goods and any documents of title representing any of the above.
		

		
			 
		

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

		
			 
		

		
			“Key Person” is each of Borrower’s (i) Chief Executive Officer, who is Tim Goodnow as of the Effective Date, (ii) Chief Financial Officer, who is R. Don Elsey as of the Effective Date, and (iii) Chief Medical Officer, who is Dr. E. Lynne Kelley as of the Effective Date.
		

		
			 
		

		
			“Lender” is any one of the Lenders.
		

		
			 
		

		
			“Lenders” are the Persons identified on Schedule 1.1 hereto and each assignee that becomes a party to this Agreement pursuant to Section 12.1.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Loan Documents” are, collectively, this Agreement, the Warrants, the Perfection Certificates, each Compliance Certificate, each Disbursement Letter, each Loan Payment/Advance Request Form and any Bank Services Agreement, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other Person, and any other present or future agreement entered into by Borrower, any guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified.
		

		
			 
		

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

		
			 
		

		
			“Material Adverse Change” is (a) a material impairment in the perfection or priority of Collateral Agent’s 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 any Subsidiary; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.
		

		
			 
		

		
			“Maturity Date” is, for each Term Loan, June 1, 2020.
		

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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

		
			 
		

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

		
			 
		

		
			“Original Agreement” is defined in the preamble hereof.
		

		
			 
		

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

		
			 
		

		
			“Payment Date” is the first (1st) calendar day of each calendar month, commencing on August 1, 2016.
		

		
			 
		

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

		
			 
		

		
			“Permitted Acquisition” means an acquisition by Borrower of all or substantially all of the assets of, all of the ownership interests in, or a business line or unit or division of another Person and shall include any foreign corporations in the acceptable jurisdictions listed below in this definition; provided that (a) no Event of Default or event that with the passage of time would result in an Event of Default shall exist immediately before or immediately after the consummation of such acquisition, (b) such acquired Person or assets shall be in the same line of business as is conducted by Borrower as of the Effective Date (or a line of business reasonably related thereto), (c) such acquisition shall not cause the focus or locations of Borrower’s and its Subsidiaries’ operations (when taken as a whole) to be located outside of the United States, (d) such acquisition shall not constitute a hostile acquisition, (e) any Person acquired as a result of such acquisition shall, if requested by Collateral Agent become a secured guarantor, (f) in connection with such acquisition, neither Borrower nor any of its Subsidiaries (including for this purpose, the target of the acquisition) shall acquire or be subject to any Indebtedness or Liens that are not otherwise permitted hereunder, (g) all of the consideration paid in connection with such acquisition shall be in the form of stock of Borrower, except that Borrower shall be permitted to pay reasonable closing costs in cash, (h) Borrower has notified the Lenders at least ten (10) Business Days in advance of entering into such transaction, which notice shall include a reasonably detailed description of such transaction, (i) such transaction shall only involve assets and entities located in the United States, Canada, the United Kingdom and Germany, (j) Collateral Agent and the Lenders have received evidence, in form and substance reasonably satisfactory to them that Borrower has sufficient cash on hand to pay its projected expenses and all debt service when due for a period of twelve (12) months after the consummation of such transaction, (k) all transactions related to such acquisition shall be consummated in all material respects in accordance with applicable law; and (l) Borrower shall provide to the Lenders as soon as available but in any event not later than five (5) Business Days after the execution thereof, a copy of the executed purchase agreement or similar agreement with respect to any such acquisition.
		

		
			 
		

		
			“Permitted Indebtedness” is:
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(c)          Subordinated Debt;
		

		
			 
		

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

		
			
		

		
			

		 

		

			33

		

 

(e)          Indebtedness consisting of capitalized lease obligations and purchase money Indebtedness, in each case incurred by Borrower or any of its Subsidiaries to finance the acquisition, repair, improvement or construction of fixed or capital assets of such person, provided that (i) the aggregate outstanding principal amount of all such Indebtedness does not exceed Five Hundred Thousand Dollars ($500,000.00) at any time and (ii) the principal amount of such Indebtedness does not exceed the lower of the cost or fair market value of the property so acquired or built or of such repairs or improvements financed with such Indebtedness (each measured at the time of such acquisition, repair, improvement or construction is made);
		

		
			 
		

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

		
			 
		

		
			(g)          business credit card Indebtedness for credit cards issued by Silicon Valley Bank, in an aggregate principal amount not in excess of $250,000 at any time outstanding; 
		

		
			 
		

		
			(h)          Indebtedness arising in connection with the financing of insurance premiums not to exceed $250,000 in the aggregate;
		

		
			 
		

		
			(i)          Other unsecured Indebtedness not to exceed $250,000 at any time outstanding; and
		

		
			 
		

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

		
			 
		

		
			“Permitted Investments” are:
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			(d)          Investments consisting of Deposit Accounts in which Collateral Agent has a perfected security interest (except as otherwise permitted under Section 6.6(d);
		

		
			 
		

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

		
			 
		

		
			(f)          Investments consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of Borrower or its Subsidiaries pursuant to employee stock purchase plans or agreements approved by Borrower’s Board of Directors; not to exceed Two Hundred Fifty Thousand Dollars ($250,000) in the aggregate for (i) and (ii) in any fiscal year;
		

		
			 
		

		
			(g)          Investments in Borrower’s Subsidiaries that are not co-borrower or secured guarantors, not to exceed $100,000 in any year, and Investments in Borrower’s Subsidiaries that are co-borrowers or secured guarantors and not Foreign Subsidiaries;
		

		
			 
		

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

		
			
		

		
			

		 

		

			34

		

 

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

		
			 
		

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

		
			 
		

		
			(k)          other Investments not otherwise permitted herein provided that the aggregate amount of all such Investments in any year shall not exceed $150,000; and
		

		
			 
		

		
			(l)          Permitted Acquisitions, including any investments that are held by acquired Persons acquired pursuant to Permitted Acquisitions, to the extent permitted in accordance with the definition of such term “Permitted Acquisition”.
		

		
			 
		

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

		
			 
		

		
			“Permitted Liens” are:
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			
		

		
			

		 

		

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

		
			 
		

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

		
			 
		

		
			(g)          banker’s liens, rights of setoff and Liens in favor of financial institutions incurred in the ordinary course of business arising in connection with Borrower’s deposit accounts or securities accounts held at such institutions solely to secure payment of fees and similar costs and expenses and provided such accounts are maintained in compliance with Section 6.6 hereof;
		

		
			 
		

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

		
			 
		

		
			(i)          easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business, and other minor title imperfections with respect to real property that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of Borrower or any Subsidiary;
		

		
			 
		

		
			(j)          Liens consisting of Permitted Licenses; and
		

		
			 
		

		
			(k)          Liens incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (e), 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.
		

		
			 
		

		
			“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.
		

		
			 
		

		
			“PMA Filing Event” is the filing by Borrower of the PMA Application for Borrower’s Eversense continuous glucose monitoring system with the FDA and receipt of evidence of such filing by Collateral Agent and the Lenders, which evidence must be reasonably acceptable to Collateral Agent and each Lender.
		

		
			 
		

		
			“PMA Approval Event” is the final approval by the FDA of Borrower’s Eversense continuous glucose monitoring system for commercialization and receipt of evidence of such final approval by Collateral Agent and the Lenders, which evidence must be reasonably acceptable to Collateral Agent and each Lender.
		

		
			 
		

		
			“Positive Data Event” is the confirmation by Collateral Agent and Lenders that in Borrower’s pivotal trial in the United States of its Eversense continuous glucose monitoring system implant, the Eversense produced a MARD (mean absolute relative difference) score of 12.0% or less compared to lab testing in readings where glucose was greater than or equal to 75 mg/dL and the Eversense did not produce any safety issues that would prevent Company from filing for full PMA approval in the US, based on such evidence as is acceptable to Collateral Agent and each Lender in its sole and reasonable discretion.
		

		
			 
		

		
			“Prepayment Fee” is, with respect to any Term Loan subject to prepayment prior to the Maturity Date, whether by mandatory or voluntary prepayment, acceleration or otherwise, an additional fee payable to the Lenders in amount equal to:
		

		
			
		

		
			

		 

		

			36

		

 

(i)          for a prepayment made on or after the Funding Date of such Term Loan through and including the first anniversary of the Funding Date of such Term Loan, three percent (3.00%) of the principal amount of such Term Loan prepaid;
		

		
			 
		

		
			(ii)          for a prepayment made after the date which is after the first anniversary of the Funding Date of such Term Loan through and including the second anniversary of the Funding Date of such Term Loan, two percent (2.00%) of the principal amount of the Term Loans prepaid; and
		

		
			 
		

		
			(iii)          for a prepayment made after the date which is after the second anniversary of the Funding Date of such Term Loan and prior to the Maturity Date, one percent (1.00%) of the principal amount of the Term Loans prepaid.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Revenue Event” is the achievement by Borrower after the Funding Date of Term C Loans of consolidated trailing six-month revenues of at least Four Million Dollars ($4,000,000.00), determined by Collateral Agent at the end of any fiscal month of Borrower based upon written evidence reasonably satisfactory to Collateral Agent and each Lender.
		

		
			 
		

		
			“Roche Event” is the entry by Borrower, on or before the Effective Date, into a distribution agreement with F. Hoffmann-La Roche AG, or one or more of its affiliates (“Roche”), pursuant to which Roche will get the right to market, sell and distribute Borrower’s Eversense continuous glucose monitoring system in Germany, Italy and the Netherlands, which distribution agreement must be in such form and substance as is reasonably acceptable to Collateral Agent and each Lender.
		

		
			 
		

		
			“Sale Event” is the first commercial sale in the European Union of Borrower’s second generation transmitter and the receipt of evidence thereof by Collateral Agent and each Lender, which evidence must be reasonably acceptable to Collateral Agent and each Lender.
		

		
			 
		

		
			“Second Draw Period” is the period commencing on the later of (i) the date of occurrence of the Positive Data Event and (ii) the PMA Filing Event, and ending on the earlier of (i) the date that is 30 days immediately after
		

		
			
		

		
			

		 

		

			37

		

 

the date of the commencement of the Second Draw Period,  (ii) December 31, 2016 and (iii) the occurrence of an Event of Default unless such Event of Default is waived by, or cured to the satisfaction of, each Lender in such Lender’s sole discretion; provided, however, that the Second Draw Period shall not commence if on the date of the occurrence of the PMA Filing Event or the date of the occurrence of the Positive Data Event, an Event an Event of Default has occurred and is continuing; provided, further, that for the commencement of the Second Draw Period, the Positive Data Event and the PMA Filing Event must both have occurred.
		

		
			 
		

		
			“Secured Promissory Note” is defined in Section 2.4.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Shares” is one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or Borrower’s Subsidiary, in any Subsidiary; provided that, in the event Borrower, demonstrates to Collateral Agent’s reasonable satisfaction, that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary which is a Foreign Subsidiary, creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code, “Shares” shall mean sixty‐five percent (65%) of the issued and outstanding capital stock, membership units or other securities owned or held of record by Borrower or its Subsidiary in such Foreign Subsidiary.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			“Term Loan” is defined in Section 2.2(a)(iv) hereof.
		

		
			 
		

		
			“Term A Loan” is defined in Section 2.2(a)(i) hereof.
		

		
			 
		

		
			“Term B Loan” is defined in Section 2.2(a)(ii) hereof.
		

		
			 
		

		
			“Term C Loan” is defined in Section 2.2(a)(iii) hereof.
		

		
			 
		

		
			“Term D Loan” is defined in Section 2.2(a)(iv) hereof.
		

		
			 
		

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

		
			 
		

		
			“Third Draw Period” is the period commencing on the later of (i) the Funding Date of the Term B Loans and (ii) the Sale Event, and ending on the earlier of (i) the date that is thirty (30) days immediately after the date of the commencement of the Third Draw Period, (ii) April 30, 2017 and (iii) the occurrence of an Event of Default
		

		
			
		

		
			

		 

		

			38

		

 

unless such Event of Default is waived by, or cured to the satisfaction of, each Lender in such Lender’s sole discretion; provided, however, that the Third Draw Period shall not commence if on the date of the occurrence of the Sale Event an Event of Default has occurred and is continuing; provided, further, that the Third Draw Period shall not commence if: the Term B Loans have not been made hereunder or if the Sale Event has not occurred.
		

		
			 
		

		
			“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.
		

		
			 
		

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

		
			 
		

		
			 
		

		
			 
		

		
			[Balance of Page Intentionally Left Blank]
		

		
			 
		

		
			

		 

		

			39

		

 

 
		

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

		
			 
		

			
					
						BORROWER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SENSEONICS, INCORPORATED

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: /s/ R. Don Elsey

					
					
						 

				
	
					
						Name: R. Don Elsey

					
					
						 

				
	
					
						Title: CFO and Secretary

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SENSEONICS HOLDINGS, INC.

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: /s/ R. Don Elsey

					
					
						 

				
	
					
						Name: R. Don Elsey

					
					
						 

				
	
					
						Title: CFO and Secretary

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						COLLATERAL AGENT AND LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						OXFORD FINANCE LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: /s/ Mark Davis

					
					
						 

				
	
					
						Name: Mark Davis

					
					
						 

				
	
					
						Title: Vice President – Finance, Secretary and Treasurer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						SILICON VALLEY BANK

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By: /s/ Scott McCarty

					
					
						 

				
	
					
						Name: Scott McCarty

					
					
						 

				
	
					
						Title: Director

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Loan and Security Agreement]

		

 

SCHEDULE 1.1
		

		
			 
		

		
			Lenders and Commitments
		

		
			 
		

			
					
						*

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Term A Loans

					
					
						 

				
	
					
						Lender

					
					
						Term Loan Commitment

					
					
						Commitment Percentage

				
	
					
						OXFORD FINANCE LLC

					
					
						$9,000,000*

					
					
						60.00%

				
	
					
						SILICON VALLEY BANK

					
					
						$6,000,000

					
					
						40.00%

				
	
					
						TOTAL

					
					
						$15,000,00

					
					
						100.00%

				

		
			 
		

			
					
						 

					
					
						Term B Loans

					
					
						 

				
	
					
						Lender

					
					
						Term Loan Commitment

					
					
						Commitment Percentage

				
	
					
						OXFORD FINANCE LLC

					
					
						$3,000,000

					
					
						60.00%

				
	
					
						SILICON VALLEY BANK

					
					
						$2,000,000

					
					
						40.00%

				
	
					
						TOTAL

					
					
						$5,000,000

					
					
						100.00%

				

		
			 
		

			
					
						 

					
					
						Term C Loans

					
					
						 

				
	
					
						Lender

					
					
						Term Loan Commitment

					
					
						Commitment Percentage

				
	
					
						OXFORD FINANCE LLC

					
					
						$3,000,000

					
					
						60.00%

				
	
					
						SILICON VALLEY BANK

					
					
						$2,000,000

					
					
						40.00%

				
	
					
						TOTAL

					
					
						$5,000,000

					
					
						100.00%

				

		
			 
		

			
					
						 

					
					
						Term D Loans

					
					
						 

				
	
					
						Lender

					
					
						Term Loan Commitment

					
					
						Commitment Percentage

				
	
					
						OXFORD FINANCE LLC

					
					
						$3,000,000

					
					
						60.00%

				
	
					
						SILICON VALLEY BANK

					
					
						$2,000,000

					
					
						40.00%

				
	
					
						TOTAL

					
					
						$5,000,000

					
					
						100.00%

				

		
			 
		

		
			 
		

			
					
						 

					
					
						Aggregate (all Term Loans)

					
					
						 

				
	
					
						Lender

					
					
						Term Loan Commitment

					
					
						Commitment Percentage

				
	
					
						OXFORD FINANCE LLC

					
					
						$18,000,000

					
					
						60.00%

				
	
					
						SILICON VALLEY BANK

					
					
						$12,000,000

					
					
						40.00%

				
	
					
						TOTAL

					
					
						$30,000,000

					
					
						100.00%

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		
			*  Oxford provided terms loans earlier to Borrower, an aggregated principal amount of $10,000,000 of which is outstanding immediately prior to the Effective Date.  An aggregate amount of $9,000,000 of such aggregate principal amount shall convert to Term A Loans hereunder and the balance shall be paid to Oxford as set forth in the Disbursement Letter.
		

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

EXHIBIT A
		

		
			 
		

		
			Description of Collateral
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property; provided that, if a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property; or (ii) more than 65% of the total combined voting power of all classes of stock entitled to vote the shares of capital stock (the “Shares”) of any Foreign Subsidiary, if Borrower demonstrates to Collateral Agent’s reasonable satisfaction that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code.
		

		
			 
		

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

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

EXHIBIT B-1
		

		
			 
		

		
			Form of Disbursement Letter
		

		
			 
		

		
			DISBURSEMENT LETTER
		

		
			 
		

		
			[DATE]
		

		
			 
		

		
			The undersigned, being the duly elected and acting                                          of SENSEONICS HOLDINGS, INC., a Delaware corporation with offices located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876, does hereby certify for and on behalf of each Borrower under the Loan Agreement (as defined below) ( individually and collectively, jointly and severally, “Borrower”) to OXFORD FINANCE LLC (“Oxford” and “Lender”), as collateral agent (the “Collateral Agent”) in connection with that certain Loan and Security Agreement dated as of June [_], 2016, by and among Borrower, Collateral Agent and the Lenders from time to time party thereto (the “Loan Agreement”; with other capitalized terms used below having the meanings ascribed thereto in the Loan Agreement) that:
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			5.          No Material Adverse Change has occurred.
		

		
			 
		

		
			6.          The undersigned is a Responsible Officer.
		

		
			 
		

		
			 
		

		
			[Balance of Page Intentionally Left Blank]
		

		
			
		

		
			

		 

		

			 

		

 

7.          The proceeds of the Term [A][B][C][D] Loan shall be disbursed as follows:
		

		
			 
		

		
			The proceeds of the Term [A][B] Loan shall be disbursed as follows:
		

		
			 
		

			
					
						Disbursement from Oxford:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Loan Amount

					
					
						$

					
9,000,000 
					
					
						 

				
	
					
						Plus:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						‐‐Deposit Received

					
					
						$

					
					
						 

					
					
						 

				
	
					
						‐‐Payment to be received from SVB hereunder

					
					
						$

					
1,000,000 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Less:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						[‐‐Interim Interest

					
					
						$

					
					
						(                                 )

					
					
						]

				
	
					
						‐‐Lender’s Legal Fees

					
					
						$

					
					
						(                                 )

					
					
						*

				
	
					
						--Aggregate outstanding principal amount of term loans previously provided by Oxford to Borrower

					
					
						$

					
10,000,000)
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Net Proceeds due from Oxford:

					
					
						$

					
					
						(                                 ) 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Disbursement from SVB:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Loan Amount

					
					
						$

					
					
						 

					
					
						 

				
	
					
						Plus:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						‐‐Deposit Received

					
					
						$

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Less:

					
					
						 

					
					
						 

					
					
						 

				
	
					
						[‐‐Interim Interest

					
					
						$

					
					
						(                                 )

					
					
						]

				
	
					
						Payment to Oxford

					
					
						$

					
1,000,000 
					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Net Proceeds due from SVB:

					
					
						$

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						TOTAL TERM [A][B][C][D] LOAN NET PROCEEDS FROM LENDERS

					
					
						$

					
					
						 

					
					
						 

				

		
			 
		

		
			8.          The [initial][Term Loan][Term A Loan][Term B Loan][Term C Loan][Term D Loan] shall amortize in accordance with the Amortization Table attached hereto.
		

		
			 
		

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

		
			 
		

			
					
						Account Name:

					
					
						SENSEONICS HOLDINGS, INC.

				
	
					
						 

					
					
						 

				
	
					
						Bank Name:

					
					
						[                               ]

				
	
					
						 

					
					
						 

				
	
					
						Bank Address:

					
					
						[                               ]

				
	
					
						 

					
					
						 

				
	
					
						Account Number:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						ABA Number:

					
					
						[                                ]

				

		
			 
		

		
			 
		

		
			 
		

		
			[Balance of Page Intentionally Left Blank]
		

		
			 
		

		
			 
		

		

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

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

		
			Dated as of the date first set forth above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						BORROWER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						SENSEONICS HOLDINGS, INC, on behalf of all Borrowers

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						COLLATERAL AGENT AND LENDER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						OXFORD FINANCE LLC

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

				
	
					
						SILICON VALLEY BANK

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Disbursement Letter]

		

 

 
		

		
			AMORTIZATION TABLE
		

		
			(Term [A][B][C][D]Loan)
		

		
			 
		

		
			[see attached]
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

		
			EXHIBIT B‐2  
		

		
			 
		

		
			Loan Payment/Advance Request Form
		

		
			 
		

		
			DEADLINE FOR SAME DAY PROCESSING IS NOON PACIFIC TIME*
		

		
			 
		

			
					
						Fax To:  

					
					
						Date: 

					
					
						 

				

		
			 
		

			
					
						LOAN PAYMENT:

				
	
					
						SENSEONICS HOLDINGS, INC., SENSEONICS INCORPORATED

				
	
					
						 

				
	
					
						From Account #__________________________________________            To Account #________________________________________________

				
	
					
						(Deposit Account #)                                                                                             (Loan Account #)

				
	
					
						Principal $____________________________________________              and/or Interest $_______________________________________________

				
	
					
						 

				
	
					
						Authorized Signature:________________________________________             Phone Number:____________________________________________

				
	
					
						Print Name/Title:____________________________________________

				
	
					
						 

				

		
			 
		

			
					
						LOAN ADVANCE:

				
	
					
						 

				
	
					
						Complete Outgoing Wire Request section below if all or a portion of the funds from this loan advance are for an outgoing wire

				
	
					
						 

				
	
					
						From Account #__________________________________            To Account #______________________________________

				
	
					
						(Loan Account #)                                                                                                 (Deposit Account #)

				
	
					
						 

					
					
						 

				
	
					
						Amount of Advance $_____________________________

				
	
					
						 

				
	
					
						All Borrower’s representations and warranties in the Loan and Security Agreement are true, correct and complete in all material respects on the date of the request for an advance; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date:

				
	
					
						 

				
	
					
						Authorized Signature:______________________________             Phone Number:____________________________________

				
	
					
						Print Name/Title:___________________________________________

				
	
					
						 

				

		
			 
		

			
					
						OUTGOING WIRE REQUEST:

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

				
	
					
						Deadline for same day processing is noon, Pacific Time

				
	
					
						 

				
	
					
						Beneficiary Name: __________________________________            Amount of Wire: $______________________________________

				
	
					
						Beneficiary Bank: ___________________________________           Account Number: _______________________________________

				
	
					
						City and State: ____________________________________

				
	
					
						 

				
	
					
						Beneficiary Bank Transit (ABA) #:_________________________         Beneficiary Bank Code (Swift, Sort, Chip, etc.): __________________________

				
	
					
						                    (For International Wire Only)

				
	
					
						Intermediary Bank:__________________________________________              Transit (ABA) #: ___________________________________________

				
	
					
						For Further Credit to: _________________________________________________________________________________________________________

				
	
					
						 

				
	
					
						Special Instruction: ___________________________________________________________________________________________________________

				
	
					
						 

				
	
					
						By signing below, I (we) acknowledge and agree that my (our) funds transfer request shall be processed in accordance with and subject to the terms and conditions set forth in the agreements(s) covering funds transfer service(s), which agreements(s) were previously received and executed by me (us).

				
	
					
						 

				
	
					
						Authorized Signature:______________________________             2nd Signature (if required):____________________________________

				
	
					
						Print Name/Title: _________________________________             Print Name/Title: ___________________________________________

				
	
					
						Telephone #:_______________________________                         Telephone #: __________________________________]

				
	
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

EXHIBIT C
		

		
			 
		

		
			Compliance Certificate
		

		
			 
		

			
					
						TO:

					
					
						OXFORD FINANCE LLC, as Collateral Agent and Lender

					
						 

					
						SILICON VALLEY BANK, as Lender

				
	
					
						 

					
					
						 

				
	
					
						FROM:

					
					
						SENSEONICS HOLDINGS, INC. for itself and on behalf of all Borrowers

				

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Reporting Covenant

					
					
						Requirement

					
					
						Actual

					
					
						Complies

				
	
					
						1)

					
					
						Financial statements

					
					
						Monthly within 30 days

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						2)

					
					
						Annual (CPA Audited) statements

					
					
						Within 120 days after FYE

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				

		 

		

			 

		

 

	
					
						3)

					
					
						Annual Financial Projections/Budget (prepared on a quarterly basis)

					
					
						Annually (within 45 days of FYE), and when revised

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						4)

					
					
						A/R & A/P agings

					
					
						If applicable

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						5)

					
					
						8‐K, 10‐K and 10‐Q Filings

					
					
						If applicable, within 5 days of filing

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						6)

					
					
						Compliance Certificate

					
					
						Monthly within 30 days

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						7)

					
					
						IP Report

					
					
						When required

					
					
						 

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						8)

					
					
						Total amount of Borrower’s cash and cash equivalents at the last day of the measurement period

					
					
						 

					
					
						$________

					
					
						Yes

					
					
						No

					
					
						N/A

				
	
					
						9)

					
					
						Total amount of Borrower’s Subsidiaries’ cash and cash equivalents at the last day of the measurement period

					
					
						 

					
					
						$________

					
					
						Yes

					
					
						No

					
					
						N/A

				

		
			 
		

		
			Deposit and Securities Accounts
		

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

		
			 
		

			
					
						 

					
					
						Institution Name

					
					
						Account Number

					
					
						New Account?

					
					
						Account Control Agreement in place?

				
	
					
						1)

					
					
						 

					
					
						 

					
					
						Yes

					
					
						No

					
					
						Yes

					
					
						No

				
	
					
						2)

					
					
						 

					
					
						 

					
					
						Yes

					
					
						No

					
					
						Yes

					
					
						No

				
	
					
						3)

					
					
						 

					
					
						 

					
					
						Yes

					
					
						No

					
					
						Yes

					
					
						No

				
	
					
						4)

					
					
						 

					
					
						 

					
					
						Yes

					
					
						No

					
					
						Yes

					
					
						No

				

		
			 
		

		
			Other Matters
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						1)

					
					
						Have there been any changes in any Key Person since the last Compliance Certificate?

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						2)

					
					
						Have there been any transfers/sales/disposals/retirement of Collateral or IP prohibited by the Loan Agreement?

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						3)

					
					
						Have there been any new or pending claims or causes of action against Borrower that involve more than Two Hundred Fifty Thousand Dollars ($250,000.00)?

					
					
						Yes

					
					
						No

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						4)

					
					
						Have there been any material changes to the capitalization table of Borrower or any amendments of or other changes 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

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

Exceptions
		

		
			 
		

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

		
			 
		

		
			 
		

		
			 
		

		
			SENSEONICS HOLDINGS, INC. for itself and on behalf of all Borrowers
		

		
			 
		

			
					
						By:

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		
			Date:
		

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						LENDER USE ONLY

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Received by:

					
					
						 

					
					
						 

					
					
						Date:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Verified by:

					
					
						 

					
					
						 

					
					
						Date:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Compliance Status:                Yes                   No

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

EXHIBIT D
		

		
			 
		

		
			Form of Secured Promissory Note
		

		
			 
		

		
			[see attached]
		

		
			
		

		
			

		 

		

			 

		

 

SECURED PROMISSORY NOTE
		

		
			(Term [A][B][c][D] Loan)
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						$                                       

					
					
						Dated:  [DATE]

				

		
			 
		

		
			FOR VALUE RECEIVED, the undersigned, SENSEONICS, INCORPORATED, a Delaware corporation with offices located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876 and SENSEONICS HOLDINGS, INC. a Delaware corporation (formerly ASN TECHNOLOGIES, INC. a Nevada corporation), with offices located at 20451 Seneca Meadows Parkway, Germantown, Maryland 20876 (individually, collectively, jointly and severally “Borrower”)  (“Borrower”) HEREBY PROMISES TO PAY to the order of [OXFORD FINANCE LLC][SILICON VALLEY BANK] (“Lender”) the principal amount of [___________] MILLION DOLLARS ($______________) or such lesser amount as shall equal the outstanding principal balance of the Term [A][B][C][D] Loan made to Borrower by Lender, plus interest on the aggregate unpaid principal amount of such Term [A][B][C][D] Loan, at the rates and in accordance with the terms of the Loan and Security Agreement dated June [_], 2016 by and among Borrower, Lender, Oxford Finance LLC, as Collateral Agent, and the other Lenders from time to time party thereto (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”).  If not sooner paid, the entire principal amount and all accrued and unpaid interest hereunder shall be due and payable on the Maturity Date as set forth in the Loan Agreement.  Any capitalized term not otherwise defined herein shall have the meaning attributed to such term in the Loan Agreement.
		

		
			 
		

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

		
			 
		

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

		
			 
		

		
			This Note may not be prepaid except as set forth in Section 2.2 (c) and Section 2.2(d) of the Loan Agreement.
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			[Balance of Page Intentionally Left Blank]
		

		
			
		

		
			

		 

		

			 

		

 

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

		
			 
		

			
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SENSEONICS, INCORPORATED

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						SENSEONICS HOLDINGS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

LOAN INTEREST RATE AND PAYMENTS OF PRINCIPAL
		

		
			 
		

			
					
						Date

					
					
						 

					
					
						Principal

					
						Amount

					
					
						 

					
					
						Interest Rate

					
					
						 

					
					
						Scheduled

					
						Payment Amount

					
					
						 

					
					
						Notation By

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

CORPORATE BORROWING CERTIFICATE
		

		
			 
		

			
					
						Borrower:

					
					
						[_______]

					
					
						Date: [DATE]

				
	
					
						Lenders:

					
					
						OXFORD FINANCE LLC, as Collateral Agent and Lender

					
						SILICON VALLEY BANK, as Lender

					
					
						 

				

		
			 
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			
		

		
			

		 

		

			 

		

 

[Balance of Page Intentionally Left Blank]
		

		
			
		

		
			

		 

		

			 

		

 

 
		

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

		
			 
		

			
					
						Name

					
					
						 

					
					
						Title

					
					
						 

					
					
						Signature

					
					
						 

					
					
						Authorized to Add or Remove Signatories

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						□

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						□

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						□

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						□

				

		
			 
		

		
			 
		

		
			RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.
		

		
			 
		

		
			RESOLVED FURTHER,  that such individuals may, on behalf of Borrower:
		

		
			 
		

		
			Borrow Money.  Borrow money from the Lenders.
		

		
			Execute Loan Documents.  Execute any loan documents any Lender requires. 
		

		
			Grant Security.  Grant Collateral Agent a security interest in any of Borrower’s assets.
		

		
			Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.
		

		
			Issue Warrants.  Issue warrants for Borrower’s capital stock.
		

		
			Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions.
		

		
			 
		

		
			RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified.
		

		
			 
		

		
			[Balance of Page Intentionally Left Blank]
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

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

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

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

		
			 
		

		
			I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above.
		

		
			 
		

		
			                              [print title]
		

		
			 
		

		
			 
		

			
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name:

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

				

		
			 
		

		
			 
		

		
			

		 

		

			[Signature Page to Corporate Borrowing Certificate]

		

 

 
		

		
			EXHIBIT A
		

		
			 
		

		
			Articles/Certificate of Incorporation (including amendments)
		

		
			 
		

		
			[see attached]
		

		
			 
		

		
			

		 

		

			 

		

 

 
		

		
			EXHIBIT B
		

		
			 
		

		
			Bylaws
		

		
			 
		

		
			[see attached]
		

		
			
		

		

		 

		

			 

		

 

	
					
						 

					
					
						 

				
	
					
						DEBTOR:

					
					
						SENSEONICS, INCORPORATED

				
	
					
						SECURED PARTY:

					
					
						OXFORD FINANCE LLC, 

					
						as Collateral Agent

				

		
			 
		

		
			 
		

		
			EXHIBIT A TO UCC FINANCING STATEMENT
		

		
			 
		

		
			Description of Collateral
		

		
			 
		

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

		
			 
		

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

		
			 
		

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

		
			 
		

		
			Notwithstanding the foregoing, the Collateral does not include (i) any Intellectual Property; provided, however, the Collateral shall include all Accounts and all proceeds of Intellectual Property; provided that, if a judicial authority (including a U.S. Bankruptcy Court) would hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Collateral Agent’s security interest in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property; or (ii) more than 65% of the total combined voting power of all classes of stock entitled to vote the shares of capital stock (the “Shares”) of any Foreign Subsidiary, if Borrower demonstrates to Collateral Agent’s reasonable satisfaction that a pledge of more than sixty five percent (65%) of the Shares of such Subsidiary creates a present and existing adverse tax consequence to Borrower under the U.S. Internal Revenue Code.
		

		
			 
		

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

		
			 
		

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

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