Document:

cbbt_ex1031.htm

EXHIBIT 10.31
 
THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. NO SALE OR DISPOSITION MAY BE EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER SAID ACT OR AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE HOLDER SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT OR RECEIPT OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION.
 
AMENDED AND CONSOLIDATED CONVERTIBLE PROMISSORY NOTE
 
	$2,285,112
	August 1, 2016

	 
	Costa Mesa, CA

 
For value received, Cerebain Biotech Corp., a Nevada corporation (the “Company”), promises to pay to Brad Vroom,an individual, or his assigns (the “Holder”) the principal sum of Two Million Two Hundred Eighty-Five Thousand One Hundred Twelve Dollars ($2,285,112). The principal hereof and any unpaid accrued interest thereon shall be due and payable on or before 5:00 p.m., Pacific Standard Time, on August 1, 2018 (the “Maturity Date”) (unless such payment date is accelerated as provided in Section 5 hereof). Payment of all amounts due hereunder shall be made at the address of the Holder provided for in Section 6 hereof. Interest shall accrue on the outstanding principal amount beginning on August 1, 2016, at the rate of five percent (5%) per annum, compounded annually based on a 365-day year and shall continue on the outstanding principal until paid in full. 
 
1. HISTORY OF THE NOTE. This Note is an amendment and consolidation of the following (collectively, the “Original Notes”);
 
a. The Amended and Consolidated Convertible Promissory Note entered into by and between the Company and the Holder on or about April 27, 2016, for $2,135,112;
 
With the execution of this Note the Company and the Holder acknowledge and agree that the Original Note is void and unenforceable. With the execution of this Note, the Holder is loaning the Company an additional $150,000, which brings the total principal due under this Note to $2,285,112 when combined with the principal amount due under the Original Note. The Company and Holder hereby acknowledge that as of July 31, 2016, approximately Forty-Four Thousand Dollars ($44,000) interest has accrued on the Original Note and is owed to the Holder. 
 
2. PREPAYMENT. The Company may at any time, upon thirty (30) days written notice (each a “Prepayment Notice”), prepay all or any part of the principal balance of this Note, provided that concurrently with each such prepayment the Company shall pay accrued interest on the principal, if any, prepaid to the date of such prepayment. Any Prepayment Notice must contain the amount of principal and interest to be prepaid by the Company. The end of the thirty-day period following a Prepayment Notice shall be referred to as a “Prepayment Date.” In the event that the Company sends a Prepayment Notice to Holder, Holder may elect prior to the Prepayment Date to convert into common stock of the Company pursuant to Section 3 hereof, all or part of the amount of principal and interest to be repaid under the Prepayment Notice instead of receiving such prepayment.
 
3. CONVERSION. The Holder of this Note is en-titled, at its option and subject to the other terms set forth herein, at any time beginning on the date hereof, and in whole or in part, to convert the outstanding principal amount of this Note, or any portion of the principal amount hereof, --and any accrued interest, into shares of the com-mon stock of the Company. Any amounts the Holder elects to convert will be converted into common stock at a rate of $0.40 per share. Any conversion shall be effectuated by giving a written notice (“Notice of Conversion”) to the Company on the date of conversion, stating therein the amount of principal and accrued interest due to Holder under this Note being converted. 
    	 
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Notwithstanding the foregoing, the Holder may not convert any outstanding amounts due under this Note if at the time of such conversion the amount of common stock issued for the conversion, when added to other shares of Company common stock owned by the Holder or which can be acquired by Holder upon exercise or conversion of any other instrument, would cause the Holder to own more than nine and nine-tenths percent (9.9%) of the Company’s outstanding common stock. The restriction described in this paragraph may be revoked upon sixty-one (61) days prior notice from Holder to the Company. 
 
4. CONVERSION PRICE ADJUSTMENTS. In the event the Company should at any time after the date hereof do either of the following: i) fix a record date for the effectuation of a split or subdivision of the outstanding common stock of the Company, or ii) grant the holders of the Company’s common stock a dividend or other distribution payable in additional shares of common stock or other securities or rights convertible into additional shares of common stock without the payment of any consideration by such holder for the additional shares of common stock (a “Stock Adjustment”), then, as of the record date (or the date of the Stock Adjustment if no record date is fixed), the conversion price of this Note shall be appropriately adjusted so that the number of shares of common stock issuable upon conversion of this Note is adjusted in proportion to such change in the number of outstanding shares in order to insure such Stock Adjustment does not decrease the conversion value of this Note. 
 
5. PIGGYBACK REGISTRATION RIGHTS. The Company hereby represents and warrants that if the Company at any time proposes to register any of its securities under the Act, including under an S-1 Registration Statement or otherwise, it will at such time give written notice to the Purchaser of its intention so to do. Upon the written request of Purchaser given within ten (10) days after receipt of any such notice, the Company will use its best efforts to cause shares of its common stock underlying the conversion of this Note to be registered under the Act (with the securities which the Company at the time propose to register). All expenses incurred by the Company in complying with this Section, including without limitation all registration and filing fees, listing fees, printing expenses, fees and disbursements of all independent accountants, or counsel for the Company and the expense of any special audits incident to or required by any such registration and the expenses of complying with the securities or blue sky laws of any jurisdiction shall be paid by the Company.
 
6. DEFAULT. The occurrence of any one of the following events shall constitute an Event of Default:
 
(a) The non-payment, when due, of any principal or interest pursuant to this Note;
 
(b) The material breach of any representation or warranty in this Note. In the event the Holder becomes aware of a breach of this Section 5(b), then provided such breach is capable of being cured by Company, the Holder shall notify the Company in writing of such breach and the Company shall have thirty (30) business days after notice to cure such breach;
 
(c) The breach of any covenant or undertaking, not otherwise provided for in this Section 5;
 
(d) The commencement by the Company of any voluntary proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, receivership, dissolution, or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or the adjudication of the Company as insolvent or bankrupt by a decree of a court of competent jurisdiction; or the petition or application by the Company for, acquiescence in, or consent by the Company to, the appointment of any receiver or trustee for the Company or for all or a substantial part of the property of the Company; or the assignment by the Company for the benefit of creditors; or the written admission of the Company of its inability to pay its debts as they mature; or
 
(e) The commencement against the Company of any proceeding relating to the Company under any bankruptcy, reorganization, arrangement, insolvency, adjustment of debt, receivership, dissolution or liquidation law or statute of any jurisdiction, whether now or hereafter in effect, provided, however, that the commencement of such a proceeding shall not constitute an Event of Default unless the Company consents to the same or admits in writing the material allegations of same, or said proceeding shall remain undismissed for 20 days; or the issuance of any order, judgment or decree for the appointment of a receiver or trustee for the Company or for all or a substantial part of the property of the Company, which order, judgment or decree remains undismissed for 20 days; or a warrant of attachment, execution, or similar process shall be issued against any substantial part of the property of the Company.
    	 
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Upon the occurrence of any Default or Event of Default, the Holder, may, by written notice to the Company, declare all or any portion of the unpaid principal amount due to Holder, together with all accrued interest thereon, immediately due and payable, in which event it shall immediately be and become due and payable, provided that upon the occurrence of an Event of Default as set forth in paragraph (d) or paragraph (e) hereof, all or any portion of the unpaid principal amount due to Holder, together with all accrued interest thereon, shall immediately become due and payable without any such notice. In addition, in the event of default, the company shall convey and assign to the Holder U.S. Patent Application No. 13/849,014, derived from Patent Applications No. 12/361,808 and No. 13/309,468, and its foreign counterparts in Europe and Japan, as described in the Patent License Agreement entered into by the Company on June 10, 2010. 
 
7. NOTICES. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by confirmed facsimile if sent during normal business hours of the recipient, if not, then on the next business day, or (c) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent as follows:
 
	 
	If to the Company:
	Cerebain Biotech Corp.
600 Anton Blvd., Suite 1100
Costa Mesa, CA 92626
Attn: Eric Clemons, President
Facsimile No.:

	 
	 
	 

	 
	with a copy to:	Law Offices of Craig V. Butler
300 Spectrum Center Drive, Suite 300
Irvine, CA 92618
Attn: Craig V. Butler, Esq.
Facsimile No.: (949) 209-2545

	 
	 
	 

	 
	If to Holder:
	______________________________
______________________________
______________________________
 
Facsimile No.: __________

 
or at such other address as the Company or Holder may designate by ten (10) days advance written notice to the other Party hereto.
 
8. GOVERNING LAW; VENUE. The terms of this Note shall be construed in accordance with the laws of the State of California, as applied to contracts entered into by California residents within the State of California, and to be performed entirely within the State of California. The parties agree that any action brought to enforce the terms of this Note will be brought in the appropriate federal or state court having jurisdiction over Orange County, California.
 
9. ATTORNEY’S FEES. In the event the Holder hereof shall refer this Note to an attorney to enforce the terms hereof, the Company agrees to pay all the costs and expenses incurred in attempting or effecting the enforcement of the Holder’s rights, including reasonable attorney’s fees, whether or not suit is instituted.
 
10. CONFORMITY WITH LAW. It is the intention of the Company and of the Holder to conform strictly to applicable usury and similar laws. Accordingly, notwithstanding anything to the contrary in this Note, it is agreed that the aggregate of all charges which constitute interest under applicable usury and similar laws that are contracted for, chargeable or receivable under or in respect of this Note, shall under no circumstances exceed the maximum amount of interest permitted by such laws, and any excess, whether occasioned by acceleration or maturity of this Note or otherwise, shall be canceled automatically, and if theretofore paid, shall be either refunded to the Company or credited on the principal amount of this Note.
    	 
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11. MODIFICATION; WAIVER. No modification or waiver of any provision of this Note or consent to departure therefrom shall be effective unless in writing and approved by the Company and the Holder. 
 
IN WITNESS WHEREOF, Company has executed this Amended and Consolidated Convertible Promissory Noteas of the date first written above.
 
 
		
		“Company”
	
				 	 	
		
		Cerebain Biotech Corp.,
	
		
		a Nevada corporation
	
				 		
		
		By:	/s/ Eric Clemons
	
		
		Name:	Eric Clemons
	
		
		Its:	President
	
	 				
	
	Acknowledged:
				
	 					
	By:	
/s/ Brad Vroom
			
	
		Brad Vroom
				

 
 
	4EX-10.2

 EXHIBIT 10.2 

FIFTH AMENDMENT 
 TO

 LOAN AND SECURITY AGREEMENT 

This Fifth Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 8th day of November, 2016, by and
among: (a) SILICON VALLEY BANK (“Bank”) and (b) (i) SYNACOR, INC., a Delaware corporation (“Synacor”), (ii) NTV INTERNET HOLDINGS, LLC, a Delaware limited liability company
(“NTV”), and (iii) SYNC HOLDINGS, LLC, a Delaware limited liability company (“Sync”, and together with Synacor and NTV, individually and collectively, jointly and severally, the
“Borrower”). 
 RECITALS 

A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of September 27, 2013 (the “Loan
and Security Agreement”), as amended by that certain First Amendment to Loan and Security Agreement dated as of October 28, 2014, by and among Borrower and Bank, as amended by that certain Joinder to Loan and Security Agreement dated
as of April 13, 2015, by and among Borrower and Bank, as amended by that certain Joinder to Loan and Security Agreement dated as of September 25, 2015, by and among Borrower and Bank, as amended by that certain Second Amendment to Loan and
Security Agreement dated as of September 25, 2015, by and among Borrower and Bank, as further amended by that certain Third Amendment to Loan and Security Agreement dated as of October 28, 2015, by and among Borrower and Bank, and as
further amended by that certain Consent and Fourth Amendment to Loan and Security Agreement dated as of February 25, 2016, by and among Borrower and Bank (as amended, and as the same may from time to time be further amended, modified,
supplemented, restated or amended and restated, the “Loan Agreement”). 
 B. Bank has extended credit to Borrower
for the purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement to make certain
revisions thereto as set forth herein. 
 D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1.
Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

 2. Amendments to Loan Agreement. 

2.1 Section 6.7 (Financial Covenants). The Loan Agreement shall be amended by deleting Section 6.7 thereof in its entirety
and inserting in lieu thereof the following: 
 “6.7 Financial Covenants. Maintain at all times, subject to
periodic reporting as of the last day of each month, unless otherwise noted, on a consolidated basis with respect to Borrower: 

(a) Adjusted Quick Ratio. (i) Through and including the calendar quarter ending June 30, 2014, a ratio of
(A) Quick Assets to (B) outstanding Obligations, of at least 2.50 to 1.0 (to be tested as of the last day of each quarter), (ii) commencing with the month ending September 30, 2014 and continuing with each month thereafter,
through and including the month ending August 31, 2015, a ratio of (A) Quick Assets to (B) Current Liabilities minus the current portion of Deferred Revenue, of at least 1.50 to 1.0, (iii) commencing with the month ending
September 30, 2015 and continuing with each month thereafter, through and including the month ending January 31, 2016 a ratio of (A) Quick Assets to (B) Current Liabilities minus the current portion of Deferred Revenue, of at
least 1.25 to 1.0; and (iv) commencing with the month ending February 29, 2016 and continuing with each month thereafter, through and including the month ending September 30, 2016, a ratio of (A) Quick Assets to (B) Current
Liabilities minus the current portion of Deferred Revenue, of at least 1.1 to 1.0. 
 (b) EBITDA. Measured as of the
end of each fiscal quarter on a trailing twelve month basis, EBITDA of at least (i) for each fiscal quarter through and including the fiscal quarter ending June 30, 2014, $1,500,000, (ii) for the fiscal quarter ending
September 30, 2014 and for each fiscal quarter thereafter, through and including the fiscal quarter ending June 30, 2015, ($5,000,000), and (iii) for the fiscal quarter ending September 30, 2015 and for each fiscal quarter
thereafter, through and including the fiscal quarter ending September 30, 2016, $1,500,000. 
 (c) Liquidity
Coverage. At all times on and after October 31, 2016, a Liquidity Coverage Ratio of not less than: (i) for the period commencing on October 31, 2016, and continuing through and including January 31, 2017, 2.0 to 1.0,
(ii) for the period commencing on February 1, 2017 and continuing through and including April 30, 2017, 1.50 to 1.0, and (iii) on May 1, 2017, and at all times thereafter, 2.0 to 1.0. 

(d) Free Cash Flow. Measured as of the end of each fiscal quarter, commencing with the fiscal quarter ending
December 31, 2016 and continuing with each fiscal quarter thereafter, on a trailing six-month basis, Free Cash Flow of at least: (i) for the six-month period ending on December 31, 2016, ($4,750,000), (ii) for the six-month
period ending on March 31, 2017, ($4,500,000), (iii) for the six-month period ending on June 30, 2017, ($3,000,000), (iv) for the six-month period ending on September 30, 2017, ($500,000), (v) for the six-month period
ending on December 31, 2017, $500,000, and (vi) for the six-month period ending on March 31, 2018, and each subsequent six-month period thereafter ending on the last day of a fiscal quarter of Borrower, $1,000,000.” 

 2.2 Section 8.11 (2016 Post-Closing). The Loan Agreement shall be amended by
(a) deleting the word “or” appearing at the end of Section 8.9 thereof, (b) deleting the period appearing at the end of Section 8.10 thereof and inserting in lieu thereof the following text: “; or”, and
(c) inserting the following to appear as a new Section 8.11 thereof (immediately following the existing Section 8.10 thereof): 

“8.11 2016 Post-Closing. Within thirty (30) days after the Fifth Amendment Date, Borrower shall deliver to
Bank, in form and substance satisfactory to Bank: (a) a long form certificate of the Secretary of State of Delaware for each Borrower certified within the past thirty (30) days as to each Borrower’s legal existence and good standing,
(b) a certificate of Good Standing/Foreign Qualification with respect to each Borrower from each other state in which such Borrower is qualified to transact business, certified within the past thirty (30) days as to such Borrower’s
existence and good standing in such jurisdiction, and (c) evidence of insurance with respect to each Borrower in a form acceptable to Bank, including, without limitation, Acord 25s and Acord 28 certificates and endorsements to Borrower’s
insurance policies in favor of Bank.” 
 2.3 Section 13.1 (Definitions).  

(a) The Loan Agreement shall be amended by deleting the following terms and their respective definitions appearing in Section 13.1
thereof in their entirety and replacing them with the following: 
 “ “LIBOR Rate” means, for each
Interest Period in respect of LIBOR Advances comprising part of the same Advances, an interest rate per annum (rounded upward, if necessary, to the nearest 1/10,000th of one percent (0.0001%))
equal to LIBOR for such Interest Period divided by one (1) minus the Reserve Requirement for such Interest Period, provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this
Agreement.” 
 “ “LIBOR Rate Margin” is four percent (4.0%); provided, however, that at all times
during which the Liquidity Coverage Ratio is greater than 2.75 to 1.0, the LIBOR Rate Margin shall be three and one half of one percent (3.50%).” 

“ “Prime Rate” is the rate of interest per annum from time to time published in the money rates section
of The Wall Street Journal or any successor publication thereto as the “prime rate” then in effect, provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement;
and provided further that if such rate of interest, as set forth from time to time in the money rates section of The Wall Street Journal, becomes unavailable for any reason as determined by Bank, the “Prime Rate” shall mean the rate of
interest per annum announced by Bank as its prime rate in effect 

 
at its principal office in the State of California (such Bank announced Prime Rate not being intended to be the lowest rate of interest charged by Bank in connection with extensions of credit to
debtors), provided that, in the event such rate of interest is less than zero, such rate shall be deemed to be zero for purposes of this Agreement.” 

“ “Prime Rate Margin” is one and one half of one percent (1.50%), provided, however, that at all times
during which the Liquidity Coverage Ratio is greater than 2.75 to 1.0, the Prime Rate Margin shall be one percent (1.0%).” 
 (b) The
Loan Agreement shall be amended by inserting the following new terms and their respective definitions to appear alphabetically in Section 13.1 thereof: 

“ “Fifth Amendment Date” is November 8, 2016.” 

“ “Free Cash Flow” shall mean (a) EBITDA, minus (b) capital expenditures determined in
accordance with GAAP, minus (c) capitalized software expenses, determined in accordance with GAAP, and minus (d) cash taxes, determined in accordance with GAAP.” 

“ “Liquidity” is, at any time, the sum of (a) the aggregate amount of unrestricted cash and
Cash Equivalents held at such time by Borrower in Deposit Accounts or Securities Accounts in the name of Borrower maintained with Bank or subject to Control Agreements in favor of Bank, and (b) the aggregate outstanding Eligible
Accounts.” 
 “ “Liquidity Coverage Ratio” is a ratio of (a) Liquidity to
(b) the aggregate outstanding Obligations.” 
 2.4 Exhibit E (Compliance Certificate). The Compliance
Certificate is amended in its entirety and replaced with the Compliance Certificate in the form of Schedule 1 attached hereto. 

3. Limitation of Amendments. 

3.1 The amendments set forth in Section 2 above are effective for the purposes set forth herein and shall be limited precisely as
written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the
future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as part
of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows: 
 4.1 Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are
true and correct as of such date), and (b) no Event of Default has occurred and is continuing; 
 4.2 Borrower has the
power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 

4.3 The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not
been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery
by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;  

4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree
of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;  

4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly executed
and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other
similar laws of general application and equitable principles relating to or affecting creditors’ rights. 
 5. Ratification
of Intellectual Property Security Agreement. Synacor hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of September 27, 2013, between Synacor
and Bank, as amended by that certain First Amendment to Intellectual Property Security Agreement dated as of September 25, 2015, by and between Synacor and Bank, and as further amended by that certain Second Amendment to Intellectual Property
Security Agreement dated as of April 29, 2016, by and between Synacor and Bank (as amended, the “Synacor IPSA”) and acknowledges, confirms and agrees that the Synacor IPSA (a) contains an accurate and complete listing of
all Intellectual Property Collateral, as defined in the Synacor IPSA, as of the date of this  

 
Amendment, and (b) shall remain in full force and effect. NTV hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property
Security Agreement dated as of April 13, 2015, between NTV and Bank (the “NTV IPSA”) and acknowledges, confirms and agrees that the NTV IPSA (a) contains an accurate and complete listing of all Intellectual Property
Collateral, as defined in the NTV IPSA, and (b) shall remain in full force and effect. Sync hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of
September 25, 2015, between Sync and Bank (the “Sync IPSA”) and acknowledges, confirms and agrees that the Sync IPSA (a) contains an accurate and complete listing of all Intellectual Property Collateral, as defined in the
Sync IPSA, and (b) shall remain in full force and effect. 
 6. Ratification of Perfection Certificate. Synacor hereby
ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate of Synacor dated as of September 25, 2015, as delivered to Bank, and acknowledges, confirms and agrees the disclosures
and information Synacor provided to Bank in said Perfection Certificate have not changed, as of the date hereof. NTV hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate
of NTV dated as of April 13, 2015, as delivered to Bank, and acknowledges, confirms and agrees the disclosures and information NTV provided to Bank in said Perfection Certificate have not changed, as of the date hereof. Sync hereby ratifies,
confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate of Sync dated as of September 25, 2015, as delivered to Bank, and acknowledges, confirms and agrees the disclosures and
information Sync provided to Bank in said Perfection Certificate have not changed, as of the date hereof. 
 7. Integration.
This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations between the parties
about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 
 8.
Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 

9. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by
each party hereto, and (b) Borrower’s payment to Bank of (i) a fully-earned, non-refundable amendment fee in an amount equal to Thirty Thousand Dollars ($30,000.00), and (ii) Bank’s legal fees and expenses incurred in
connection with this Amendment. 
 [Signature page follows.] 

 IN WITNESS WHEREOF, the parties hereto have
caused this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	 BANK
  

SILICON VALLEY BANK
	 		 	 BORROWER
  

SYNACOR, INC.

					
	By:	 	/s/ Russell Follansbee	 		 	By:	 	/s/ William J. Stuart
	Name:	 	Russell Follansbee	 		 	Name:	 	William J. Stuart
	Title:	 	Vice President	 		 	Title:	 	Chief Financial Officer
			
		 		 	NTV INTERNET HOLDINGS, LLC
					
		 		 		 	By:	 	/s/ William J. Stuart
		 		 		 	Name:	 	William J. Stuart
		 		 		 	Title:	 	Manager
			
		 		 	SYNC HOLDINGS, LLC
					
		 		 		 	By:	 	/s/ William J. Stuart
		 		 		 	Name:	 	William J. Stuart
		 		 		 	Title:	 	Manager

 EXHIBIT E 

COMPLIANCE CERTIFICATE 
  

					
	TO:	 	SILICON VALLEY BANK	 	Date:                                   
     
	FROM:	 	SYNACOR, INC., NTV INTERNET HOLDINGS, LLC and SYNC HOLDINGS, LLC

 The undersigned authorized officer of SYNACOR, INC., NTV INTERNET HOLDINGS, LLC and SYNC HOLDINGS, LLC (“Borrower”)
certifies that under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (as amended, the “Agreement”): 

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

 

					
	 Reporting Covenants
	  	 Required
	    	 Complies

	 Monthly financial statements and Compliance Certificate
	  	Monthly within 45 days	    	Yes    No
	 Annual financial statement (CPA Audited), if not otherwise publicly available
	  	FYE within 120 days	    	Yes    No
	 Borrowing Base Certificate and A/R & A/P Agings
	  	Monthly within 45 days	    	Yes    No
	
	 The following Intellectual Property was registered (or a registration application
submitted) after the Effective Date (if no
 registrations, state “None”)

  

													
	 Financial Covenants
	  	 Required
	 	  	 Actual
	 	  	 Complies
	 
	 Maintain at all times:
	  				  				  			
	 Liquidity Coverage (tested on a monthly basis)
	  	 	*	  	  	 	        :1.0	  	  	 	Yes    No	  
	 Trailing 6 Month Free Cash Flow (tested on a quarterly basis):
	  	 	**	  	  	$	            	  	  	 	Yes    No	  

 *See Section 6.7(c) of the Agreement. 

**See Section 6.7(d) of the Agreement. 

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

 

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

  

					
	 Performance Pricing*
	  	 Applies

	 Liquidity Coverage Ratio > 2.75 to 1.0
	  	Prime + 1.0% or LIBOR plus 3.50%	  	Yes    No
	 Liquidity Coverage Ratio < 2.75 to 1.0
	  	Prime + 1.50% or LIBOR plus 4.0%	  	Yes    No

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

 
  
  

									
	SYNACOR, INC.	 		 	BANK USE ONLY
					
	By:	 	 	 		 	Received by:	 	 
	Name:	 	 	 		 		 	AUTHORIZED SIGNER
	Title:	 	 	 		 	Date:	 	 
				
		 		 	Verified:	 	 
	NTV INTERNET HOLDINGS, LLC	 		 		 	AUTHORIZED SIGNER
					
		 		 		 	Date:	 	 
	By:	 	 	 		 		 	
	Name:	 	 	 		 	Compliance Status:            Yes      No
	Title:	 	 	 		 		 	
				
	SYNC HOLDINGS, LLC	 		 		 	
	By:	 	 	 		 		 	
	Name:	 	 	 		 		 	
	Title:	 	 	 		 		 	

 Schedule 1 to Compliance Certificate 

Financial Covenants of Borrower 

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

Dated:                         

 I. Liquidity Coverage Ratio (Section 6.7(c)) (tested monthly) 

Required:    (a) for the period commencing on October 31, 2016, and continuing through and including January 31, 2017, 2:0 to
1.0, (b) for the period commencing on February 1, 2017 and continuing through and including April 30, 2017, 1.50 to 1.0, and (c) on May 31, 2017, and at all times thereafter, 2.0 to 1.0 

Actual:              to 1.0 

 

							
			
	 A.
	  	The aggregate amount of unrestricted cash and Cash Equivalents held at such time by Borrower in Deposit Accounts or Securities Accounts in the name of Borrower maintained with Bank or subject to Control Agreements in favor of
Bank	  	$	                	  
			
	 B.
	  	Aggregate outstanding Eligible Accounts (as set forth in Borrowing Base Certificate)	  	$	                	  
			
	 C.
	  	Line A plus line B	  	$	                	  
			
	 D.
	  	Aggregate value of all outstanding obligations and liabilities of Borrower to Bank	  	$	                	  
			
	 E.
	  	Liquidity Coverage Ratio (Line C divided by Line D)	  	 	        :1.0	  

 Is Line E equal to or greater than the applicable ratio above? 

☐  No, not in
compliance                    ☐  Yes, in compliance 

II. Free Cash Flow (Section 6.7(d)) (tested quarterly) 

Required:    (a) for the six-month period ending on December 31, 2016, ($4,750,000), (b) for the six-month period ending on
March 31, 2017, ($4,500,000), (c) for the six-month period ending on June 30, 2017, ($3,000,000), (d) for the six-month period ending on September 30, 2017, ($500,000), (e) for the six-month period ending on
December 31, 2017, $500,000, and (f) for the six-month period ending on March 31, 2018, and each subsequent six-month period thereafter ending on the last day of a fiscal quarter of Borrower, $1,000,000 

Actual:
            $                     

 

							
			
	 A.
	  	Net Income	  	$	                	  
			
	 B.
	  	Interest Expense	  	$	                	  
			
	 C.
	  	To the extent deducted in the calculation of Net Income, depreciation and amortization expense	  	$	                	  
			
	 D.
	  	Income tax expense	  	$	                	  
			
	 E.
	  	Stock compensation	  	$	                	  

							
			
	 F.
	  	Non-cash items and one-time expenses approved by Bank, in its sole discretion	  	$	                	  
			
	 G.
	  	EBITDA (Sum of lines A through F)	  	$	                	  
			
	 H.
	  	Capital Expenditures	  	$	                	  
			
	 I.
	  	Capitalized Software Expenses	  	$	                	  
			
	 J.
	  	Cash Taxes	  	$	                	  
			
	 K.
	  	Free Cash Flow (line G minus line H minus line I minus line J)	  	$	                	  

 Is line G equal to or greater than the applicable amount above? 

☐  No, not in
compliance                    ☐  Yes, in
compliance                    ☐  N/A [not quarter-end]

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